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10 December 2018
Federal Grand Jury Indicts Doctor for Allegedly Approving Medically Unnecessary Tests Billed to MedicareRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a physician on fraud charges for allegedly approving medically unnecessary diagnostic tests that were billed to Medicare.
While working for Chicago-based Grand Medical Clinic Inc., DR. OMAR GARCIA prescribed and authorized ultrasounds, percutaneous allergen tests and nerve transmission tests for numerous Medicare beneficiaries, knowing that the in-home tests were not medically necessary. In some instances, Dr. Garcia approved the tests after they had already been completed, the indictment states. Dr. Garcia and others submitted or caused to be submitted fraudulent claims to Medicare for payment of the unnecessary tests, the indictment states.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges Dr. Garcia, 51, of Ocala, Fla., and formerly of Illinois, with six counts of health care fraud. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; and Martin J. Dickman, Inspector General of the U.S. Railroad Retirement Board. The U.S. Office of Personnel Management and the U.S. Food and Drug Administration provided valuable assistance. The government is represented by Assistant U.S. Attorney Stephen Chahn Lee.
The indictment alleges that Dr. Garcia’s fraud scheme began in 2011 and continued until 2015. Dr. Garcia and others submitted the fraudulent bills from multiple medical entities in an attempt to reduce the volume of billing by any single company and minimize scrutiny from Medicare, the indictment states. After the entities received payments from Medicare, Dr. Garcia was paid via checks reflecting his percentage of the payments, the indictment alleges.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by a maximum sentence of ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced today the results of the December 2018 Federal Grand Jury.
The Grand Jury returned seven unsealed indictments, including charges against three men in three separate cases who tried to injure or kill deputies or federal agents, said U.S. Attorney Trent Shores.
James Kent Patrick Hill, 57, of Claremore, and Brian Kirk Marshall, 49, of Pattonsburg, Missouri, both are charged, in part, with obstruction of justice by attempting to kill deputies or federal agents. Additionally, Gary Dewayne Miller, 44, of Vinita, is charged, in part, with tampering with a law enforcement officer by physical force or threat.
“Close collaborative relationships among prosecutors and local, state, and federal law enforcement are key to fighting crime and making communities safer for the people of Oklahoma and throughout our nation. Criminals attempting to injure or kill a member of law enforcement will be prosecuted and brought to justice,” said U.S. Attorney Trent Shores. “The men and women of law enforcement face threats, both expected and unexpected, at a moment’s notice and still choose to wear the uniform. I am thankful for their service. The U.S. Attorney’s Office in the Northern District of Oklahoma supports their work and will do our part to hold those criminals accountable who harm our vital law enforcement partners.”
The defendants’ charges are listed below followed by the other December indictments. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
James Kent Patrick Hill. Possession of Methamphetamine with Intent to Distribute; Possession of Marijuana with Intent to Distribute; Possession of Alprazolam and Diazepam with Intent to Distribute; Possession of Firearms in Furtherance of Drug Trafficking Crimes; Obstruction of Justice by Attempting to Kill a Witness; Possession of a Firearm in Furtherance of a Crime of Violence; Felon in Possession of Firearms and Ammunition. Hill faces multiple charges for possession with intent to distribute drugs, including methamphetamine, marijuana, alprazolam, and diazepam. He is further charged with possessing firearms to further his crimes and with being a felon in possession of 10 firearms, including shotguns, rifles and pistols and more than 1,000 rounds of associated ammunition. Finally, Hill is charged possession of a firearm in furtherance of a crime of violence and with attempting to kill a Rogers County Sheriff’s deputy, while trying to escape from law enforcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Verdigris Police Department and Rogers County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Mark R. Morgan is prosecuting the case.
Brian Kirk Marshall. Assaulting Federal Officers; Obstruction of Justice by Attempting to Kill Witnesses; Carrying, Using, and Discharging a Firearm During and in Relation to a Crime of Violence; Possession of a Firearm and Ammunition After a Conviction for a Misdemeanor Crime of Domestic Violence. Marshall is charged with forcibly assaulting FBI agents while they were executing a search warrant of a Kansas, Oklahoma, residence; carrying, using, and discharging a firearm during a crime of violence; and possessing a firearm and ammunition after being convicted of third degree domestic assault in Missouri in 2008. An additional charge of obstruction of justice by attempting to kill FBI agents was added to the original charges that were filed in November.
The FBI is the investigative agency. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
Gary Dewayne Miller. Felon in Possession of a Firearm and Ammunition; Tampering With a Witness by Physical Force or Threat; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Miller is charged with being a felon in possession of a Ruger, Model P89DAO, 9mm semi-automatic pistol and associated ammunition, brandishing a firearm during a crime of violence, and tampering with a witness by threat of force. Sheriff’s deputies were called to Miller’s residence after shots were fired during a domestic dispute. Miller previously left the residence but returned while deputies were there. When the deputies tried to make an arrest, Miller allegedly fled in his SUV. Miller allegedly brandished a firearm at the deputies, rammed their police cruiser with his own vehicle, and then escaped on foot. He ran back to his home where he barricaded himself with others inside the residence. He was eventually arrested.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Delaware County Sheriff’s Office and Oklahoma Highway Patrol SWAT Team are the investigative agencies. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case.
December Indictments Continued:
Marcos Gomez-Garcia. Alien Unlawfully in the United States in Possession of a Firearm and Ammunition; Reentry of Removed Alien. Marcos Gomez-Garcia, 37, of Bartlesville, is charged with being an alien knowingly possessing a Smith & Wesson, Model M&P 15-22, .22 semi-automatic rifle. He is also charged with reentry of a removed alien, having returned to the United States unlawfully after being deported on June 20, 2009, at Nogales, Arizona. The weapon was discovered during a traffic stop, where Gomez-Garcia allegedly said he planned to use the weapon to harm someone who had assaulted him earlier that day. The Dewey Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies.
Gary Robert Lee, Christopher R. Parks, and Jerry May Keepers. Conspiracy to Offer or Pay Health Care Kickbacks; Soliciting or Receiving Health Care Kickback; Conspiring to Commit Health Care Fraud. Dr. Gary Robert Lee, 58, and Christopher R. Parks, 57, both of the Tulsa area, are charged with conspiring to pay health care kickbacks to physicians. The two men allegedly bribed physicians to write unnecessary prescriptions for expensive compounded drugs to be submitted to pharmacies the two were affiliated with, including OK Compounding LLC in Skiatook; One Stop RX LLC in Tulsa; and NBJ Pharmacy LLC and Airport McKay Pharmacy, both in Houston. The two then allegedly submitted large claims for payment to federal health care programs and private insurers and divided the profits. Dr. Jerry May Keepers, 65, of Kingwood, Texas, licensed in Oklahoma and Texas, is also named in the indictment. Keepers is charged with receiving kickbacks in exchange for writing prescriptions for compounded drugs, often receiving up to $25,000 per month, and submitting them to pharmacies affiliated with Lee and Parks. All three men are all charged with conspiracy to defraud government health care insurance programs, including Medicare, TRICARE, and the Federal Employees’ Compensation Act. The Defense Criminal Investigative Service, Department of Labor-Office of Inspector General, Internal Revenue Service, U.S. Postal Service-Office of Inspector General, FBI and U.S. Department of Health and Human Services-Office of Inspector General are the investigative agencies.
Timmy Edward Pinkley. Felon in Possession of a Firearm and Ammunition. Timmy Edward Pinkley, 43, of Grove is charged with being a felon in possession of a Hi-Point, Model CF380, .380 Auto caliber pistol and associated ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Delaware County Sheriff’s Office are the investigative agencies.
Gregorio Sanchez-Hernandez. Reentry of Removed Alien. Gregario Sanchez-Hernandez, 43, is charged with reentry of a removed alien, having returned to the United States unlawfully after being deported Jan. 29, 2014, at Del Rio, Texas. Immigration and Customs Enforcement’s Homeland Security Investigations is the investigative agency.
Father and Son Members of Nineties Crew Gang in Brooklyn Convicted of Racketeering and Drug DistributionRead the Press Release
Following eight days of trial, a federal jury in Brooklyn today returned guilty verdicts against Tammeco Cargill and his father, Winston Cargill, convicting them of racketeering and racketeering conspiracy, including predicate acts of distribution and possession of marijuana and passport fraud. When sentenced by United States District Judge Raymond J. Dearie, Tammeco Cargill and Winston Cargill each face up to 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray P. Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the verdicts.
“Nineties Crew members Tammeco Cargill and his father Winston Cargill have been held to account for the drug crimes inflicted on their neighborhood,” stated United States Attorney Donoghue. “I commend our prosecutors, the DEA Special Agents and the NYPD detectives for their outstanding work in this case.”
“This trial demonstrated the scope of the Cargills’ drug operation and this conviction is a testament to the diligent work by U.S. Attorney’s Office EDNY and the DEA’s New York Division, Group D-22,” stated DEA Special Agent-in-Charge Donovan.
Winston Cargill and Tammeco Cargill were long-standing members of the Nineties Crew, a Brooklyn-based street gang that between January 2003 and December 2014 operated as a criminal enterprise in the Flatbush and Canarsie neighborhoods of Brooklyn. The gang engaged in marijuana trafficking, earning hundreds of thousands of dollars, operating numerous stash houses and using firearms. Winston Cargill and Tammeco Cargill also fraudulently procured United States passports in order to travel back and forth from Jamaica as part of their criminal scheme.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Hiral Mehta and Ryan Harris are in charge of the prosecution.
The Defendants:
TAMMECO CARGILL
Age: 36
Brooklyn, New YorkWINSTON CARGILL (also known as “Pops”)
Age: 56
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-330 (RJD)
Elkins woman admits to drug distributionRead the Press Release
ELKINS, WEST VIRGINIA – Sydney Marie Calain, of Elkins, West Virginia, has admitted to methamphetamine distribution, United States Attorney Bill Powell announced.
Calain, age 20, pled guilty to one count of “Distribution of Methamphetamine.” Calain admitted to distributing methamphetamine in June 2017 in Randolph County.
Calain faces up to 20 years and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.Elkhart Man Sentenced to 70 Months in PrisonRead the Press Release
SOUTH BEND – Julio Sanchez, 48 years old, of Elkhart, Indiana, was sentenced by U.S. District Court Senior Judge Robert L. Miller, Jr. after pleading guilty to possession with intent to distribute methamphetamine and heroin and being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Sanchez was sentenced to 70 months in prison followed by 3 years of supervised release.
According to documents in the case, Mr. Sanchez was being investigated by the Indiana State Police (ISP) for methamphetamine dealing. When the ISP determined that Mr. Sanchez was staying at a South Bend hotel, they conducted surveillance on the hotel. They had a warrant for his arrest on other charges. When he arrived on January 3, 2018, ISP arrested Sanchez and later obtained search warrants for his car and hotel room. Officers found approximately 1.1 grams of heroin and approximately 15 grams of a mixture of methamphetamine. Along with this heroin and methamphetamine, Sanchez also had over $1000 in cash, some pills, and smoking pipes and a loaded 9mm handgun in his car. Sanchez had previously been convicted of at least one prior felony, including criminal mischief in 2006 in the St. Joseph County Superior Court in Indiana.
This case was investigated by the ATF with assistance from the Indiana State Police and prosecuted by Assistant United States Attorney Luke N. Reilander.
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Detroit Man Sentenced to 60 Months for Trafficking in FentanylRead the Press Release
LEXINGTON, Ky. — Trenton A. Shell, 24, of Detroit, was sentenced Friday, to 60 months in federal prison, by United States District Judge Danny C. Reeves, for possession with intent to distribute fentanyl.
In April 2018, detectives with the Lexington Police Department executed a search warrant at Shell’s Lexington residence, locating 49 grams of a fentanyl. Detectives also located ten grams of fentanyl concealed in Shell’s clothing. On August 31, 2018, Shell entered a guilty plea to possession with intent to distribute the fentanyl.
Under federal law, Shell must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for four years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; D. Christopher Evans, Special Agent in Charge of the DEA Louisville Field Division; and Lawrence Weathers, Chief of the Lexington Police Department, jointly made the announcement.
The DEA and the Lexington Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
Crips Gang Member Charged with Attempted Murder of an On-Duty FBI AgentRead the Press Release
A criminal complaint was filed today in federal court in Brooklyn charging Ronell Watson with attempting to murder a Federal Bureau of Investigation (FBI) Special Agent and with using, carrying and discharging a firearm during and in relation to a crime of violence. A separate criminal complaint was also filed today charging Molissa Gangapersad with making false statements to the FBI. At their initial appearances this afternoon before United States Magistrate Judge Steven L. Tiscione, Watson was ordered detained and Gangapersad was released on a $500,000 bond.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, New York Field Office (FBI), announced the charges.
“Watson showed an utter disregard for human life when he fired multiple shots without provocation at an on-duty FBI Special Agent,” stated United States Attorney Donoghue. “Despite sustaining a serious gunshot wound, the agent courageously returned fire, hitting Watson, which ultimately led to the defendant’s capture when he sought medical treatment. Gangapersad will be prosecuted for lying to federal agents after she witnessed her boyfriend’s cold-blooded attack. The shooting on Saturday should serve as a reminder to all about the danger members of law enforcement face in the course of performing their duties and the debt of gratitude they are owed for putting their lives on the line to protect the community from violent criminals.” Mr. Donoghue expressed his grateful appreciation to the FBI and the New York City Police Department for its assistance during the investigation and thanked the skilled medical professionals who treated the agent.
“The unprovoked assault of a law enforcement officer is a grievous crime that threatens the safety and security of our communities. As alleged, Watson demonstrated callous disregard for life when he targeted and then deliberately opened fire on a fellow citizen. In this instance, that citizen was an FBI Special Agent who fought back. Today’s charges demonstrate that the FBI and our partners will identify and apprehend anyone and everyone who participated in this violent attack – whether you are the person who pulled the trigger or helped cover up after the fact. We will pursue every possible investigative lead and legal charge to ensure justice is served,” stated FBI Assistant Director-in-Charge Sweeney. “I also wanted to personally thank our fellow citizens who called 911 in order to get aid dispatched for our agent, and we are very appreciative of the talented medical team who worked on him. The FBI New York office is tremendously grateful for the superb NYPD response out in Brooklyn, where our agent was treated like one of their own, and for the swift and decisive action by EDNY to bring charges in this case. Thank you for your professionalism and partnership.”
As alleged in the complaints and other court documents, on December 8, 2018, an FBI Special Agent was on-duty and parked in an unmarked car on Canarsie Road, a one way street, in Brooklyn. Watson, a member of the Crips street gang, drove his vehicle the wrong way on Canarsie Road and partially blocked the agent’s car. Watson approached the driver side door of the agent’s car with one hand inside the front pocket of his hooded sweatshirt. As the agent maneuvered his car around Watson’s vehicle, Watson pulled out a gun and began firing at the agent as he drove away. The agent was hit in the torso by one bullet. The agent then exited his car, drew his firearm and fired at Watson striking him in the hand. Watson fled the scene in his car and drove to a nearby auto body shop where he left the vehicle. Watson then sought treatment for his wounds at Kingsbrook Jewish Medical Center where he falsely claimed that he had been a bystander victim of a gunfight between other individuals. Law enforcement officers at the hospital then overheard the defendant telephone a female, believed to be Gangapersad, and tell her to go to the house and “get the jewelry and get rid of it.”
Law enforcement officers responded to Watson’s and Gangapersad’s shared residence. Gangapersad agreed to a voluntary interview and falsely told FBI agents that she had not seen the shooting. After being confronted with surveillance video showing that she was on her front porch during the shooting and in a position to observe it, Gangapersad admitted that she had witnessed the incident. Members of law enforcement searched the residence and found approximately 1.5 pounds of marijuana, $15,000 in cash and a large amount of jewelry in the defendants’ bedroom. Both defendants were arrested that evening.
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted of using and carrying a firearm during and in relation to a crime of violence, Watson faces a mandatory minimum of 10 years’ imprisonment and a maximum of life imprisonment. If convicted of lying to the FBI, Gangapersad faces up to five years’ imprisonment.
Assistant United States Attorney Francisco J. Navarro is in charge of the prosecution.
The Defendants:
Ronell Watson
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 18-MJ-1191
Molissa Gangapersad
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 18-MJ-1192
Council Bluffs Man Sentenced for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced that on December 6, 2018, 36 year old Beau Croghan was sentenced by U.S. District Court Judge Stephanie M. Rose to 110 months of imprisonment, to be followed by 10 years of supervised release. A jury found the Croghan guilty of Receipt of Child Pornography on August 22, 2018.
Operation Pacifier was an investigation conducted by the FBI into Playpen, a website on The Onion Router (TOR) hosted as hidden service. Playpen operated as a message-board type website where registered users would distribute and share images and videos of child pornography. Croghan registered with Playpen on September 27, 2014, and Croghan was actively logged into Playpen for over 13 hours between September 27, 2014, and March 4, 2015.
This matter was investigated by Federal Bureau of Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Council Bluffs Man Sentenced for Prohibited Person in Possession of a FirearmRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced that on December 6, 2018, 39 year-old Brian Reed was sentenced by U.S. District Court Judge Stephanie M. Rose to 105 months of imprisonment, to be followed by three years of supervised release.
On January 27, 2017, law enforcement officers were called to a residence in Council Bluffs, Iowa, for a complaint about a man threatening people with a gun. A search of the residence revealed a loaded 9mm handgun in the kitchen. 9mm ammunition was later recovered during the execution of a search warrant at the same residence on August 28, 2017. Reed was a convicted felon and drug user at the time he possessed the ammunition. Reed pled guilty to being a prohibited person in possession of ammunition on May 24, 2018.
This matter was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Council Bluffs, Iowa, Police Department, the Fourth Judicial District Department of Correctional Services, and the Pottawattamie County Sheriff’s Office. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Cleveland man sentenced to more than 12 years for drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Anthony Walter Rogers, of Cleveland, Ohio, was sentenced today to 151 months incarceration for cocaine distribution, United States Attorney Bill Powell announced.
Rogers, age 27, pled guilty to three counts of “Distribution of Cocaine Base” and one count of “Possession with Intent to Distribute Cocaine Base” in September 2018. Rogers admitted to selling cocaine in Marshall County in August 2017 and April 2018.
Assistant U.S. Attorney Robert H. McWilliams, Jr., prosecuted the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
California Drug Trafficker Pleads Guilty to Distributing 120 Grams of Fentanyl in Northeast WashingtonRead the Press Release
WASHINGTON – Jose Macrino Emanuel Delatorre, 38, of Chico, Calif., pled guilty today to distributing 120 grams of fentanyl in Northeast Washington announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Delatorre pled guilty before the Honorable Randolph D. Moss in the U.S. District Court for the District of Columbia to an indictment charging unlawful distribution of 40 grams or more of fentanyl. Judge Moss then sentenced him to a mandatory five years in prison, to be followed by four years of supervised release. Delatorre may face additional charges in California.
As part of his plea agreement, Delatorre took responsibility for the sale of 120 grams of fentanyl for $6,700 in February 2018 on Market Street NE. Unbeknownst to Delatorre, he was the subject of an undercover investigation. The substance that he sold was subsequently analyzed by the U.S. Drug Enforcement Administration (DEA) and confirmed to be fentanyl.
Delatorre was not immediately arrested because he was expected to return to the District of Columbia approximately six days later, with multiple additional kilograms of narcotics. On June 5, 2018, agents of the FBI and local law enforcement officers arrested Delatorre in California, and executed a search warrant at his residence. During the execution of the search warrant, the FBI agents recovered approximately 500 grams of black-tar heroin.
In announcing the plea, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who investigated the case from the FBI’s Washington Field Office. They expressed appreciation for the assistance provided by the DEA. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Candace Battle and Legal Assistant Latoya Wade, as well as Assistant U.S. Attorneys William Schurmann and Anthony Scarpelli, who prosecuted the case.
Buffalo Man Pleads Guilty to Selling FentanylRead 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 Donald Hennings, 32, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute, and distribution of, butyryl fentanyl and furanyl fentanyl. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on three separate occasions in September and October 2016, the Hamburg Police Department conducted three separate controlled purchases of butyryl fentanyl from the defendant. In addition, in October and November 2016, Hamburg Police conducted six controlled purchases of furanyl fentanyl from Hennings.
On December 7, 2016, a search warrant was executed at the defendant’s residence on Southside Parkway in Buffalo. Officers recovered quantities of furanyl fentanyl and crack cocaine, multiple grinders, a digital scale, and blue envelopes and rubber bands commonly used to package controlled substances. Hennings was arrested inside a 2012 Chevy Traverse vehicle, which he used during several of the controlled purchases. In the door panel on the driver’s side, where the defendant was sitting, officers found an additional quantity of furanyl fentanyl.
The plea is the result of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for March, 25, 2019, at 12:30 p.m. before Judge Arcara.
Brewer Woman Pleads Guilty to Heroin and Crack Trafficking and Gun ChargesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Lynda Johnson, 30, of Brewer, Maine, pled guilty in U.S. District Court to possession with the intent to distribute 28 grams or more of cocaine base, commonly known as “crack,” and heroin and being a felon in possession of firearms and ammunition.
According to court records, on April 18, 2018, the defendant was found in possession of crack and heroin, a .380 caliber pistol and about $6,300 in cash following a car stop by police. An ensuing search of her Brewer residence let to the seizure of a .22 caliber derringer, ammunition, and drug paraphernalia. A second search of her vehicle led to the seizure of crack and heroin that had not been discovered during the initial search of the vehicle. The defendant was prohibited from possessing firearms and ammunition as the result of felony drug and aggravated assault convictions in Maine.
On the drug charge, the defendant faces between 10 years and life, an $8,000,000 fine, and between eight years and life on supervised release. On the gun charge, the defendant faces up to 10 years in prison, a $250,000 fine, and up to a three years of 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 Brewer Police Department, with assistance provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Drug Enforcement Administration. The Penobscot County District Attorney’s Office assisted with the prosecution. This case was prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Bradford County Man Admits Possessing Child PornographyRead the Press Release
A resident of Towanda, Pennsylvania pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
John David Martin, 61, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Martin possessed computer images depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for April 8, 2019. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Martin on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Erie County Detectives Bureau conducted the investigation that led to the prosecution of Martin.
Bank Teller in Leavenworth Pleads Guilty to EmbezzlementRead the Press Release
KANSAS CITY, KAN. – A former bank teller pleaded guilty Monday to embezzling from a savings and loan where she worked, U.S. Attorney Stephen McAllister said.
Theresa Williams, 49, Leavenworth, Kan., pleaded guilty to one count of theft by a bank employee. In her plea, she admitted she embezzled $13,000 from Mutual Savings Association in Leavenworth. To cover up the crime, she made false entries in bank reports.
Sentencing is set for Feb. 25. She faces a sentence of up to 30 years in federal prison and a fine up to $1 million.
McAllister commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Baltimore County Man who Enticed Children to Send him Sexually Explicit Videos of Themselves Sentenced to 27 Years in Federal Prison for Producing Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Keith Edward Taylor, age 33, of Kingsville, Maryland, today to 27 years in prison, followed by lifetime supervised release, for production of child pornography. There is no parole in the federal system. Upon his release from prison, Taylor will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Terrence B. Sheridan of the Baltimore County Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to Taylor’s plea agreement, in 2017, Taylor used an instant-messaging software application to communicate with minors throughout the United States and internationally. Specifically, Taylor admitted that he engaged in sexually explicit conversations with at least five minor male victims, ranging from 12 to 15 years old, and residing in various states, including Texas, Massachusetts, Iowa, Michigan, and Colorado. During the course of his conversations with the boys, Taylor typically portrayed himself as a woman. Taylor repeatedly requested that the boys send sexually explicit photos and videos of themselves engaging in sexually explicit conduct. Taylor sent some of the boys sexually explicit photos of women, falsely claiming that they were photos of himself.
Taylor also used the messaging app to distribute and trade child pornography with adults. For example, during December 2017, Taylor traded child pornography with a user who sent Taylor a pornographic photo of a child that the user claimed was his own nine-year-old stepchild. Taylor repeatedly requested sexually explicit video of the child and discussed the other user engaging in sex acts with the child. Taylor also maintained digital collections of child pornography in multiple cloud storage accounts and electronic devices.
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 Attorney’s 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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Robert K. Hur commended HSI-Baltimore, the Baltimore County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the federal case.
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9 December 2018
Dunbar Man Receives a Mandatory 10 Year Sentence for Methamphetamine DistributionRead the Press Release
CHARLESTON, W.Va. – A Dunbar man received a mandatory 10 year prison sentence for methamphetamine distribution, announced United States Attorney Mike Stuart. Schauwne Martin, 36, previously pled guilty to possession of more than 50 grams of methamphetamine with the intent to distribute. Martin further agreed to the destruction of the firearms that were associated with his criminal activity. Stuart commended the Drug Enforcement Administration (DEA) Task Force for their investigation.
“Big time meth dealer,” said United States Attorney Mike Stuart. “Gets a big time sentence.”
Martin admitted that on February 28, 2017, law enforcement found a loaded .380 caliber, semiautomatic handgun, approximately 94 grams of methamphetamine, and digital scales in his kitchen in Dunbar, West Virginia. Martin also admitted to DEA agents that he possessed another handgun, and that he had sold methamphetamine to informants on seven other occasions. Martin admitted that he kept the firearms for protection of his drug trafficking business. DEA lab testing confirmed the purity of the methamphetamine as well as the weight of 94 grams, exceeding the 50 gram weight that triggers the mandatory ten year statutory penalty.
Assistant United States Attorney Erik S. Goes and former Assistant United States Attorney Eric Bacaj were responsible for the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence on December 6, 2018.
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7 December 2018
Woman Pleads Guilty to 30 Counts of Wire FraudRead the Press Release
SAN JUAN, Puerto Rico– Defendant Madeline Miró-Aponte pleaded guilty before United States Magistrate Judge Camille Vélez-Rivé to 30 counts of wire fraud involving in excess of one million dollars ($1,000,000), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Miró-Aponte was charged today via an Information.
From approximately June 2011 through March 2017, Miró-Aponte provided accounting services to a company organized in Puerto Rico that was engaged in the manufacture, purchase, sale, and distribution of alcoholic products (“Company A”). Miró-Aponte devised a scheme to defraud the company by means of materially false and fraudulent pretenses and representations that affected financial institutions.
As a part of the scheme, Miró-Aponte utilized credit from financial institutions, including Citi, Chase, Discover, Comenity, and Synchrony, to make purchases from merchants operating in Puerto Rico and the mainland United States. The merchants included Marriott, Southwest, American Eagle Outfitters, Sears, TJ-Max, Loft, Old Navy, Walmart, Sam’s Club, Macy’s, Nordstrom, Amazon, JCPenney, Victoria’s Secret, Brooks Brothers, Best Buy, and Costco.
Miró-Aponte knowingly used Company A’s bank account information to process payments for her personal purchases, without the authorization or knowledge of Company A. These payments were transmitted by means of wire communication in interstate commerce. Miró-Aponte then falsified the accounts and records of Company A and other documents to avoid detection of the scheme.
From approximately June 2011 through March 2017, Miró-Aponte illegally processed payments totaling approximately one million thirty-five thousand dollars ($1,035,000) for her personal benefit using funds from Company A’s bank deposits.
As a part of the guilty plea, Miró-Aponte agreed to forfeit all property derived from the offense and to restitution in the amount of no less than $1,035,114 (minus any repayments already made to Company A).
“Today’s conviction should serve as a reminder of our commitment to hold individuals accountable for their involvement in fraud schemes,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “The US Attorney’s Office will continue to work with our law enforcement partners in bringing those commit financial crimes for personal gain to justice.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Seth Erbe. The defendant is facing a maximum statutory penalty of up to thirty (30) years of imprisonment.
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Woman Charged with Transportation of Individuals in Interstate Commerce for ProstitutionRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that ANH DUONG, age 72, was charged Friday, November 30, 2018 in a one-count Bill of Information with transportation of individuals in interstate commerce for prostitution, in violation of Title 18, United States Code, Section 2421(a).
According to court documents, on or before January 2018, DUONG knowingly transported and caused to be transported individuals in interstate commerce from Texas and Mississippi to the Eastern District of Louisiana to engage in prostitution in violation of the laws of Louisiana.
If convicted, DUONG faces a maximum term of imprisonment of 10 years, a fine of $250,000, 3 years of supervised release, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and Homeland Security Investigations in investigating this matter. Assistant United States Attorneys Julia K. Evans and Brian M. Klebba are in charge of the prosecution.
Woman Admits Defrauding Medicaid a Second Time, This Time from PrisonRead the Press Release
In 2015, Alexis C. Norman pleaded guilty to healthcare fraud. But while awaiting sentencing, she concocted another healthcare fraud scheme.
Yesterday afternoon, Ms. Norman, 47, pleaded guilty once again, this time admitting one count of conspiracy to commit healthcare fraud and four counts of healthcare fraud – three committed before she was sentenced in the prior case and one committed while she was behind bars, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
According to court documents, Ms. Norman approached co-conspirator Karen Jones in February 2015 with a business idea she hoped could help pay legal fees from her previous case. Ms. Jones agreed to help Ms. Norman by listing herself as the administrator of Janus Children Services, Inc., opening a bank account in Janus’ name, and leasing office space for Janus in Tyler, Texas.
The company never occupied the office space, never hired any employees, and never provided any services.
Together, Ms. Norman and Ms. Jones used stolen identities of licensed counselors and Medicaid recipients to submit more than $810,000 in fraudulent claims to Medicaid, and were paid more than $427,000.
After Medicaid paid Janus for the false claims, Ms. Norman directed Jones to withdraw cash from the Janus bank account, always in amounts less than $9,500. Roughly once a month from April 2015 to February 2016, the pair would meet at a restaurant. When they finished their meal, Ms. Jones – who carried the cash in a gift bag – would leave the package on a chair for Ms. Norman.
Following Ms. Norman’s incarceration in April 2016, Ms. Jones agreed to help Ms. Norman submit additional fraudulent claims through a second company, Therapeutic Outreach Services Inc.
Ms. Jones helped Ms. Norman lease office space for Therapeutic in Waco, Texas, and visited Ms. Norman in prison on multiple occasions to gather billing instructions and identifying information of counselors and Medicaid clients. Ms. Norman concealed the information on a piece of paper hidden in her shoe, which she retrieved during Ms. Jones’ visits.
Like Janus, Therapeutic never operated out of the Waco location, had no employees, and provided no services.
Ms. Norman faces a maximum statutory penalty of 80 years in federal prison, mandatory restitution, and a $250,000 fine for each of the five counts. She is scheduled to be sentenced by U.S. District Judge Jane Boyle on March 29.
Ms. Jones, who has also pleaded guilty, faces a maximum statutory penalty of five years in federal prison, mandatory restitution, and a $250,000 fine. She is scheduled to be sentenced on January 14, 2019, by U.S. District Court Judge David C. Godbey.
The U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorney Douglas Brasher and DOJ Trial Attorney Christina Liu are prosecuting the case.
Willmar Man Sentenced for Illegal Cache of Machine Guns, Pipe Bombs, SilencersRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of CHAD LEE MONSON, 46, for illegally possessing machine guns, pipe bombs, and silencers. MONSON, who pleaded guilty on August 16, 2018, was sentenced today in U.S. District Court in Minneapolis, Minnesota, by Judge Joan N. Ericksen to 36 months in prison.
According to the defendant’s guilty plea and documents filed in court, on January 30, 2018, law enforcement officers executed a search warrant at MONSON’S residence in Willmar, Minnesota. Inside the residence, officers found personal use amounts of illegal narcotic drugs, as well as sixteen firearms, and a large quantity of ammunition. On February 21, 2018, law enforcement officers executed two additional search warrants at a commercial utility building near MONSON’S residence. There, officers found ten machine guns, two of them with obliterated serial numbers, three pipe bombs, and three unregistered silencers. As part of his guilty plea, MONSON was required to forfeit to the United States 12 firearms, three pipe bombs, and three silencers.
United States Attorney Erica MacDonald thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, the CEE-VI Gang and Drug Task Force, and the Kandiyohi County Attorney’s Office who investigated this case, and Assistant United States Attorney John Docherty who prosecuted the case.
Defendant Information:
CHAD LEE MONSON, 46
Willmar, Minn.
Convicted:
- Possession of a machine gun, 1 count
- Possession of an unregistered destructive device (pipe bomb), 1 count
- Possession of an unregistered silencer, 1 count
Sentenced:
- 36 months
- 3 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Wife of Former U.S. Customs and Border Protection Officer in El Paso Sentenced to Federal PrisonRead the Press Release
In El Paso, a former U.S. Customs and Border Protection officer’s wife, who fled the country prior to sentencing on federal drug trafficking and bribery charges in 2010, was sentenced to 132 months in federal prison, announced U.S. Attorney John F. Bash; Special Agent in Charge Emmerson Buie, Jr., of the Federal Bureau of Investigation (FBI), El Paso Division; Special Agent in Charge Kyle Williamson of the Drug Enforcement Administration (DEA), El Paso Division; and, Special Agent in Charge Javy Pedroza of the Department of Homeland Security Office of Inspector General (DHS OIG) in El Paso.
During sentencing yesterday, Senior U.S. District Judge David Briones also ordered 41-year-old Ana Marie Hernandez to pay a $100,000 money judgment.
On June 21, 2010, the legal permanent resident in the U.S. pleaded guilty to one count of conspiracy to import a controlled substance and one count of aiding and abetting the bribery of a public official. By pleading guilty, Hernandez admitted that between June 2005 and October 2005, she conspired with others, including her husband, former DHS Customs and Border Protection officer Daniel Ledezma, to allow hundreds of kilograms of cocaine into the U.S. without inspection through the Paso de Norte Port of Entry. For their actions, Hernandez and Ledezma received more than $100,000 in U.S. Currency.
An arrest warrant was issued for Hernandez when she failed to appear for sentencing on January 24, 2011.
On October 3, 2018, Hernandez was extradited from Mexico to El Paso. She has since remained in federal custody.
“This sentencing is a result of the ongoing partnership and collaboration between the FBI, DEA and our international partners to bring to justice an individual who corrupted U.S. law enforcement officials in order to import drugs into the U.S. The FBI and its partners will relentlessly pursue and prosecute individuals that poison the communities of El Paso,” stated FBI Special Agent in Charge Buie.
“The sentencing of Ms. Hernandez concludes years of federal authorities’ efforts to bring her to justice. This case serves as an example of the corrupting influence of drug trafficking organizations and the diligence of DEA and its law enforcement partners to investigate, pursue and prosecute those who seek to profit through bribery and drug smuggling,” said DEA Special Agent in Charge Williamson.
On January 20, 2011, Ledezma was sentenced to 110 months in federal prison followed by three years of supervised release after pleading guilty to the same charges in June 2010.
The DEA, FBI, and DHS OIG investigated this case. The Justice Department’s Office of International Affairs and the U.S. Marshals Service provided significant assistance in the extradition. The case was prosecuted by Assistant U.S. Attorneys of the Western District of Texas.
VA Nurse Admits to Fraudulently Obtaining and Tampering with Opioid PrescriptionsRead the Press Release
PROVIDENCE – A Providence VA Medical Center nurse pled guilty in federal court today to charges that he fraudulently obtained and tampered with morphine and other opioid prescriptions at the VA Medical Center.
Appearing before U.S. District Court Chief Judge William E. Smith, Jared Scott, 35, of West Warwick, admitted that on several occasions in October and November 2017, he accessed vials of liquid opioids designated for patient use. Scott admitted to removing the vials from a locked storage cart for his own personal use, and leaving behind vials filled with saline.
Scott pled guilty as charged in an indictment returned on June 28, 2018, with tampering with a consumer product and acquiring a controlled substance by deception and subterfuge.
Scott’s guilty plea is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General Sean J. Smith, and Jeffrey J. Ebersole, Resident Agent in Charge of the United States Food and Drug Administration Office of Criminal Investigations.
Scott is scheduled to be sentenced on April 5, 2019. Tampering with a consumer product is punishable by statutory penalties of up to 10 years in federal prison, 3 years supervised release, and a fine of $250,000. Obtaining a controlled substance by misrepresentation, fraud, deception and subterfuge is punishable by statutory penalties of up to 4 years in federal prison, 1 year supervised release, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the Department of Veterans Affairs Office of Inspector General and the United States Food and Drug Administration Office of Criminal Investigations.
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University of New Hampshire Employee Pleads Guilty to Interstate Transportation of Stolen MoneyRead the Press Release
CONCORD, N.H. - Hailong Zhang, 46, of Nottingham pleaded guilty to interstate transportation of stolen money, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, Zhang was a Research Project Manager at the University of New Hampshire’s College of Life Sciences. Zhang was authorized to use a credit card provided by UNH to pay for expenses covered by grants that were provided to the College of Life Sciences by the U.S. Department of Health and Human Services, National Institutes of Health (“NIH”). On 31 separate occasions from December 2013 to January 2018, Zhang used the credit card to purchase gift cards totaling more than $82,000 from Amazon.com, which he kept or used to buy merchandise for his personal benefit, including clothing, video games, and a snow blower. To conceal each such use of the credit card, Zhang submitted a fictitious receipt and a fraudulent written justification for the expense to UNH. The bogus documents caused the University System of New Hampshire to make payments on the credit card and obtain reimbursement for the unauthorized expenses from the NIH.
“Mr. Zhang’s conduct is particularly disturbing because the money he stole should have been used to advance important scientific research projects,” said U.S. Attorney Murray. “Government research funds are not intended to be used to supplement personal income. Anyone who engages in this type of selfish criminal behavior will be prosecuted.”
“I am grateful for the daily due diligence of the University of New Hampshire and University System employees who alerted the police to this criminal activity.” said UNH Police Chief Paul H. Dean. “The complex joint investigation was a success due to the strong collaboration of federal and campus law enforcement and I believe it sends a clear message to anyone contemplating similar criminal activity in the research community.”
“Mr. Zhang has now accepted responsibility for misusing taxpayer money that was entrusted to him to pay for expenses covered by federal research grants. Not only did he mishandle those funds for his own personal gain, but he betrayed the trust of his colleagues at the University,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “The FBI will continue to work with our law enforcement partners to identify others like Mr. Zhang who fraudulently misuse government money for their own self-enrichment.”
“Taxpayer funds at NIH support critical research that can ultimately save lives,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General at the U.S. Department of Health and Human Services. “Zhang siphoned off these life-giving dollars and will now pay the price.”
Zhang will be sentenced on March 29, 2019 .
The case was investigated by the UNH Police Department, the Federal Bureau of Investigation, and the U.S. Department of Health and Human Service, Office of Inspector General, with assistance from Nottingham Police Department. The case is being prosecuted by Assistant United States Attorney Robert M. Kinsella.
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Two More Health Care Executives Plead Guilty in Connection with Medicaid Behavioral Health FraudRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, LISA CAROL RAYMOND, 55, of Greenville, North Carolina, and ROBERT PAUL MAGLICIC, JR., 36, of Miami, Florida, pleaded guilty before Chief United States District Judge Terrence W. Boyle, to the charge of Conspiracy to Commit Health Care fraud, in violation of Title 18, United States Code, Section 1349.
Based upon the Criminal Information and facts offered at the plea hearing today, MAGLICIC and RAYMOND participated in a scheme to defraud the South Carolina Medicaid program through a provider known as Southern Support Services. Southern Support Services was owned by Shepard Lee Spruill, who was previously prosecuted for health care fraud for defrauding the North Carolina Medicaid Program and sentenced in July of 2018 to serve 96 months in federal prison. Although the scheme in the present case concerned a fraud upon the South Carolina Medicaid program, the participants committed portions of the scheme from Greenville, North Carolina, using the stolen names and identifiers of North Carolinian employees.
United States Attorney Higdon stated, “ False billings to the Medicaid program steal money from the most vulnerable in our society – squandering precious taxpayer dollars for personal gain. The Department of Justice remains committed to holding health care executives accountable when they abuse the trust of the Medicare and Medicaid program.”
During times material to the case, MAGLICIC was Spruill’s Regional Director of Operations at, among other providers, Carolina Support Services and Southern Support Services. RAYMOND was the Corporate Office Manager for Carolina Support Services and Southern Support Services.
The evidence showed that between October of 2013 and November of 2014, Southern Support Services had fraudulently billed the South Carolina Medicaid program for more than $595,000 in fictitious behavioral health services. When approached by a Medicaid auditor in 2014 concerning the billings, MAGLICIC and RAYMOND helped fabricate records to support the prior billings. Thereafter, between December of 2014 and April of 2015, the Medicaid program paid Southern Support Services an additional $1.4 Million for behavioral health services that did not, in fact, occur.
In March of 2015, the South Carolina Medicaid program conducted another audit of Southern Support Services, this time requesting records to support billings for 160 different patients. Instead of admitting that the services were fraudulent, MAGLICIC oversaw the fabrication of all of the records requested. To carry out the scheme, MAGLICIC and RAYMOND used employee names and identifiers from Spruill’s North Carolina provider, Carolina Support Services, to create fake employee profiles for Southern Support Services. Medical records were then fabricated to justify all of the prior billings to Medicaid, making it appear that various individuals were in South Carolina assisting patients when, in fact, the individuals never worked at Southern Support Services. RAYMOND fraudulently affixed the fictitious employee signatures onto the fake records, and MAGLICIC delivered them to the MEDICAID auditors.
In total, the scheme resulted in losses to the Medicaid program totaling more than $2 Million during the period of time when MAGLICIC and RAYMOND were involved.
At sentencing, MAGLICIC and RAYMOND will face up to 10 years in prison for their participation in the health care fraud at Southern Support Services. Both defendant’s also face fines, supervised release, and mandatory restitution.
The investigation of this case was conducted by the United States Department of Health and Human Services Office of the Inspector General, the North Carolina Attorney General’s Office Medicaid Investigations Division, and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney William M. Gilmore, of the United States Attorney’s Office, represented the United States. Special Assistant United State Attorney, Daniel Spillman, of the North Carolina Attorney General’s Office Medicaid Investigations Division, also represented the United States.
Two Illegal Aliens Plead Guilty to Unlawful Reentry After RemovalRead the Press Release
Hattiesburg, Miss. – Juan Gaspar-Adan, age 24, a citizen of Mexico, and Bartolo Lopez-Garcia, age 25, a citizen of Guatemala, pled guilty yesterday before U.S. District Judge Keith Starrett, to the crime of unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst and Mr. Trey Lund, Acting Field Office Director of Immigration and Customs Enforcement, Enforcement and Removal Operations in New Orleans.
Gaspar-Adan and Lopez-Garcia are both scheduled to be sentenced by Judge Starrett on January 11, 2019 in Hattiesburg. They each face a maximum penalty of two years in prison followed by one year of supervised release and a maximum $250,000 fine. They also face being removed from the United States following the completion of any prison sentence.
Lopez-Garcia, who had previously been removed from the United States in 2012, was arrested by Hattiesburg Police on September 25, 2018, for driving under the influence (DUI), and was convicted of DUI in the Hattiesburg Municipal Court. On September 8, 2018, Gaspar-Adan, who had also previously been removed from the United States in 2014, was arrested by the University of Southern Mississippi Police Department, also for DUI.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Immigration & Customs Enforcement, Enforcement & Removal Operations; the University of Southern Mississippi Police Department; the City of Hattiesburg Police Department and the Forrest County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for both cases.
Two Former Police Officers Admit to Federal Corruption ChargesRead the Press Release
St. Louis, MO – Mark Taylor, 49, and Marlon Caldwell, 51, admitted to accepting bribes in exchange for un-redacted accident reports while police officers with the City of St. Louis, bringing to an end an investigation that led to charges against four former police officers, a local chiropractor and his wife.
According to court documents, between 2007 and 2016, Dr. Mitchell Davis owned and operated Davis Chiropractic Clinic, now known as City Health and Chiropractic. Located on Lindell Blvd in St. Louis, the clinic primarily provided services to accident victims. Galina Davis assisted Dr. Davis in identifying, soliciting, and scheduling potential accident victims.
According to SLMPD policy, the SLMPD will provide un-redacted accident reports only to persons involved in the accidents, the companies insuring them, or the lawyers representing them. Un-redacted accident reports contain detailed information, including addresses, telephone numbers, birthdates, and insurance information of the occupants of the vehicles. Dr. Davis and Galina Davis knew that the SLMPD would not disclose un-redacted police reports to them. To get around this policy, Galina Davis and Dr. Davis recruited, solicited, and paid individual SLMPD police officers to obtain un-redacted accident reports for them.
Using the information from the un-redacted reports, Galina Davis contacted accident victims, identified herself as Gail, Allison, Kelly, Laura, or Shannon, and offered the accident victims free services at Davis Chiropractic. Dr. Davis and Galina Davis focused on identifying accident victims from neighborhoods where there was a large concentration of low-income victims. They believed that low-income individuals would be more receptive to their solicitations and offers of free services.
Taylor and Caldwell both admitted to facilitating this exchange of cash for reports. Caldwell admitted to identifying other officers to continue the arrangement after his retirement. Caldwell pleaded guilty to conspiracy to accept bribes. Taylor admitted to a substantive count of bribery. They appeared before Judge Stephen N. Limbaugh, Jr. who accepted their pleas and set sentencing for March 6, 2019.
Caldwell faces up to five years imprisonment while Taylor faces up to ten years imprisonment. Both defendants also face fines or up to $250,000. The parties will recommended sentencing guidelines and terms of imprisonment well below those statutory maxima.
This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General. Assistant United States Attorneys Dorothy McMurtry and Reginald Harris are handling the case for the U.S. Attorney’s Office.
Three Pittsburgh Residents Plead Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
PITTSBURGH, Pa. – Three residents of Pittsburgh, Pennsylvania, pleaded guilty in federal court this week to conspiracy to defraud the Pennsylvania Medicaid program, United States Attorney Scott W. Brady announced today.
Travis Moriarty, 37, Tiffhany Covington, 41, and Brenda Lowry Horton, 48, all of Pittsburgh, Pennsylvania, pleaded guilty to one count in separate hearings before United States District Judge Cathy Bissoon.
During their plea hearings, each defendant admitted that they were employees of one or more of four related entities operating in the home health care industry—Moriarty Consultants, Inc. (MCI), Activity Daily Living Services, Inc. (ADL), Coordination Care, Inc. (CCI), and Everyday People Staffing, Inc. (EPS). MCI, ADL, and CCI were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients ("consumers"), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. Between in and around January 2011 and in and around April 2017, MCI, ADL, and CCI, collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for these services, with PAS payments accounting for more than $80,000,000 of the total amount.
During that time, the defendants admitted that they participated in a wide-ranging conspiracy to defraud the Pennsylvania Medicaid program for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims or for which there was insufficient or fabricated documentation to support the claims. The Court was further advised that the defendants conspired with, among others, Arlinda Moriarty, the owner of MCI, ADL, and EPS; Daynelle Dickens, the owner of CCI and Arlinda Moriarty’s sister; various office workers at the companies, including Julie Wilson, Tamika Adams, Tony Brown, Terra Dean, Larita Walls, Keith Scoggins, and Tia Collins; attendants at MCI, including Tionne Street, Autumn Brown, and Luis Columbie-Abrew; and Terry Adams, a consumer.
As part of the conspiracy, the defendants admitted that co-conspirators fabricated timesheets to reflect the provision of in-home PAS care they provided to consumers but that, in fact, never occurred. In addition, at Arlinda Moriarty’s direction, certain co-conspirators stopped using their own names as the attendant on timesheets and instead used the names of "ghost" attendants, some of whom permitted their names to be used in exchange for a kickback of resulting fraudulent salary payments. The defendants also admitted that certain co-conspirators submitted false timesheets for PAS care they never provided during times when they were actually working at other jobs or living out of the area. In some cases, as the defendants acknowledged, Medicaid claims were submitted for PAS care that purportedly occurred while consumers were hospitalized, incarcerated, or deceased, and in other instances, co-conspirators paid kickbacks to consumers in exchange for the consumers’ agreement to participate in the submission of fraudulent timesheets in support of Medicaid claims.
The defendants also admitted that Arlinda Moriarty directed co-conspirators to bill the maximum allowable PAS and service coordination hours for consumers to maximize profits and to ensure that the state did not require MCI, ADL, and CCI to forfeit underutilized consumer hours. Many consumers had no knowledge that their personally identifiable information was being used to bill Medicaid for benefits that the consumers had not exhausted. Moreover, the Court was further advised during the plea hearings that, as part of the conspiracy, Arlinda Moriarty directed employees to fabricate documentation during the course of state audits.
The defendants each face a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Autumn Brown was charged by Criminal Information on October 18, 2018, and a plea hearing is scheduled for December 14, 2018.
On November 26, 2018, a federal grand jury indicted Arlinda Moriarty, Dickens, Wilson, Tamika Adams, Tony Brown, Terry Adams, Collins, Dean, Walls, Scoggins, Street, and Columbie- Abrew for their roles in the conspiracy. An indictment is an accusation. The defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorneys Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.
Tennessee Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Joe Kelly announced that Michael Wayne Parsons, age 57, formerly of Arlington, Tennessee, was sentenced today to 84 months in prison followed by three years of supervised release following his conviction by a United States District Court jury of being a felon in possession of a firearm. Mr. Parsons is a sovereign citizen who does not believe he is subject to the laws of the United States. He claims citizenship only in the country of “Chilcotin” which he and his like-minded associates believe was established in British Columbia, Canada, in 2015.
In January of 2017, Mr. Parsons was awaiting trial in state court in Tennessee. His charges there were also for being a felon in possession of a firearm. He failed to appear for his trial and a warrant was issued for his arrest. Mr. Parsons piloted a single-engine airplane he owned flying north headed to Montana and, ultimately, to the country of “Chilcotin” in Canada. He landed for the night in Arapahoe, Nebraska. Agents located him by pinging his phone. He was arrested and a later search of his airplane located an LAR 15 assault rifle and several hundred rounds of ammunition. Parsons was sentenced by the Honorable John Gerrard, Chief United States District Court Judge, who ordered Mr. Parsons’s federal sentence to run consecutive to a three-year state prison term for failing to appear for trial in the State of Tennessee.
This case was investigated by the Federal Bureau of Investigation and the Furnas County Sheriff’s Office.
Tangipahoa Parish Men Plead Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JERRY PEA, age 42 of Ponchatoula, and JAMES JACKSON, age 35 of Hammond, pleaded guilty yesterday to narcotics trafficking and firearms offenses in Hammond, Louisiana.
PEA pleaded guilty to conspiring to distribute and to possess with intent to distribute over 28 grams of crack cocaine and quantities of heroin between March and May 2018, in violation of 21 U.S.C. § 841(a)(1), (b)(1)(B), (b)(1)(C), and 846. JACKSON pled guilty to distributing quantities of crack cocaine and heroin on March 26, 2018, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). Each defendant also pled guilty to possessing a firearm during a narcotics transaction, in violation of 18 U.S.C. § 924(c)(1)(A).
For the respective narcotics offenses, PEA faces a term of imprisonment of 5-40 years, a fine of up to $5 million, and at least four years of supervised release following any term of imprisonment, whereas JACKSON faces a term of imprisonment of up to 20 years, a fine of up to $1 million, and at least three years of supervised release. For the respective gun charges, PEA and JACKSON face terms of imprisonment of five years to life running consecutive to any other sentence, fines of up to $250,000, and up to five years of supervised release.
Sentencing is set before Judge Africk on March 14, 2019, at 9:00 a.m.
United States Attorney Strasser praised the work of the United States Drug Enforcement Administration, Tangipahoa Parish Sheriff's Office and the Hammond Police Department. Assistant U.S. Attorney Jeffrey Sandman is in charge of the prosecution.
St. Rose Man Sentenced After Trial for Narcotics Conspiracy and Firearms ViolationsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that COREY SESSION, age 44, of St. Rose, Louisiana, was sentenced yesterday after having been convicted after a five-day trial that was held in August 2018 before U.S. District Judge Mary Ann Vial Lemmon. SESSION was the last defendant to be sentenced in this case.
SESSION was convicted at trial of conspiracy to distribute one kilogram or more of heroin and five hundred grams or more of cocaine, along with firearms charges. Judge Lemmon sentenced SESSION to a term of life imprisonment plus five years. The additional five-year sentence was mandatory for his having been convicted of possession of a firearm in furtherance of drug trafficking.
According to evidence presented at trial, agents with the Drug Enforcement Administration conducted an investigation from January 2015 through February 2016, concerning distribution of cocaine and heroin in St. Charles and St. John the Baptist Parishes. The federal investigation, which was conducted in coordination with state and local law enforcement, resulted in the seizure of nearly one kilogram of heroin along with scales, money counters, firearms, and over $480,000.00 in cash.
SESSION was the last defendant to be sentenced of the four that were convicted after trial in August 2018. ANDRE STAGGERS, a/k/a “Dre,” of LaPlace, who was also convicted of heroin and cocaine distribution conspiracy and firearms violations, was sentenced to life imprisonment plus five years. GREGORY LONDON, a/k/a “Lil Gregg,” of LaPlace, was sentenced to ten years in prison for cocaine distribution conspiracy. LEONARD MORRISON, a/k/a “Leonard London,” of St. Rose, was sentenced to fifteen years in prison for possession of a firearm as an armed career criminal.
U.S. Attorney Strasser praised the conviction as the result of a coordinated effort of federal and state law enforcement authorities within the Drug Enforcement Administration’s Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Program. The DEA’s HIDTA Group #11, operating out of the New Orleans Field Division, includes members from DEA, U.S. Border Patrol, Louisiana State Police, St. Charles Parish Sheriff’s Office, St. John the Baptist Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, Gretna Police Department, Kenner Police Department, and St. Bernard Parish Sheriff’s Office. U.S. Attorney Strasser extended his thanks to the Oklahoma Highway Patrol for their assistance in this investigation. Assistant United States Attorneys Matthew R. Payne, Brittany L. Reed, and David Howard Sinkman handled the prosecution and trial. Also assisting in the prosecution was Special Assistant United States Attorney Andre Gaudin, who is assigned from the Orleans Parish District Attorney’s Office to the DEA HIDTA Group.
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South Florida Securities Lawyer Convicted by Jury of Conspiracy, Securities Fraud, Wire Fraud, and Money Laundering in Connection with Shell Factory Stock SwindleRead the Press Release
A Boca Raton attorney was convicted by a federal jury this afternoon of 33 counts of conspiracy, securities fraud, wire fraud, and money laundering offenses in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commission (SEC), issue a class of free-trading shares in the companies that were secretly controlled, and sell these shares as part of pump-and-dump stock swindles.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
James M. Schneider, 77, a securities lawyer from Boca Raton, Florida, was convicted by a federal jury after a two-week trial before U.S. District Judge Federico A. Moreno in Miami (Case No. 17-20712-CR-FAM(s)). Schneider was convicted of conspiracy to commit securities and wire fraud, in violation of Title 18, United States Code, Section 1349; securities fraud, in violation of Title 18, United States Code, Section 1348; wire fraud, in violation of Title 18, United States Code, Section 1343; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and, money laundering, in violation of Title 18, United States Code, Section 1957. Schneider faces a maximum statutory sentence of twenty-five years for the securities fraud conspiracy count, twenty-five years each for the securities and wire fraud counts, and ten years each for the conspiracy to commit money laundering and money laundering counts, as well as a fine up to $250,000 or double the proceeds as to each. Schneider is scheduled to be sentenced by Judge Moreno on February 14, 2019.
According to evidence introduced at trial, from approximately March 2008 through at least May 2015, Schneider participated in a scheme to operate a fraudulent shell factory in which the conspirators created approximately 20 shell companies and filed numerous false documents with the SEC. The filings falsely stated that the companies were controlled by a nominee chief executive officer (CEO). The straw CEO would be listed as the owner of the control block of shares but in reality the companies were controlled by the undisclosed principals. The control block of shares listed in the name of the sole officer were deemed restricted and could not be sold to the public. The principals would also list in SEC filings the names of various shareholders for each company to make it appear that these shares were owned by persons unaffiliated with the company. These shares would later become “free trading” and secretly sold to shell buyers. Using false and fraudulent documentation describing the companies’ business purpose and share ownership, the principals would then obtain approval to sell the companies’ shares publicly in the open market. Thereafter, the principals would sell the companies to shell buyers who would secretly obtain both the control shares and the purported “free trading” shares without disclosure to the SEC or the investing public. These buyers would then use the shares to conduct pump-and-dump stock swindles and other securities manipulation schemes. Evidence at trial showed that the shares of the fake companies were then sold to investors for millions of dollars.
Schneider was an attorney licensed to practice in Florida who authored false and fraudulent legal opinion letters indicating that shares of the 20 companies were owned by persons who were not “affiliates,” when in truth and in fact the shares were owned and controlled by the conspirators. Schneider also created false billing records to make it appear that he was performing work for, and taking direction from, the straw CEOs. In reality, he took his direction from his co-conspirators, who would keep their names off of documents. Schneider also performed so-called escrow services for the sale of the shell entities, including the illegal sale of the purported free trading shares, and wired more than $5.6 million in proceeds to bank accounts controlled by the conspirators. Schneider did this, according to evidence introduced at trial, even though he had no authorization from the named shareholders or verification that the persons whose names were listed on escrow agreements authorized or approved these transfers.
Eleven other defendants have been convicted in the Southern District of Florida in connection with the Shell Factory Fraud investigation: John Ahearn and Andrew Wilson, Case No. 17-20883-CR-KMW; Yelena Furman, Case No. 17-20713-CR-CMA; David Lubin, Case No. 17-20508-CR-MGC; Sheldon Rose and Ian Kass, Case No. 16-20706-CR-JEM; Steven Sanders and Alvin S. Mirman, Case No. 16-20572-CR-CMA; Daniel McKelvey and Jeffrey Lamson, Case No. 16-20546-CR-RNS; and, Delaney Equity Group LLC, Case No. 18-20336-CR-CMA. Defendant Myron Gushlak has also been charged but his case was transferred to fugitive status in Case No. 17-20713-CR-CMA. These convicted defendants included two attorneys who practice securities law (Lubin and Wilson), a registered securities representative (Kass), a stock transfer agent (Ahearn), a securities broker-dealer (Delaney Equity Group LLC), an accountant (Lamson), and four stock promoters (Sanders, McKelvey, Mirman, Rose, and Furman).
Previously, the SEC filed parallel civil enforcement actions against Schneider and the other criminal defendants charged in the Shell Factory Fraud investigation.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office, and also thanked the SEC’s Miami Regional Office for their assistance with the ongoing Shell Factory Fraud investigation. The United States was represented at trial by Assistant U.S. Attorneys Jerrob Duffy and Christopher B. Browne, and Special Assistant U.S. Attorney Jeffrey T. Cook.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
South Florida Pharmacy Owner Sentenced to Almost Four Years in Prison for Role in $2.5 Million Medicare Fraud SchemeRead the Press Release
An owner of a now-defunct Miami pharmacy was sentenced today to 46 months in prison for his participation in a scheme that caused Medicare to pay $2.5 million in false and fraudulent claims for prescription drugs that were never purchased.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Gregory Sanchez, 44, of Miami Lakes, Florida, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida. Judge Ungaro also ordered Sanchez to pay $2,507,942 in restitution, jointly and severally with his co-conspirators, and to forfeit the same amount. Sanchez pleaded guilty in September 2018 to one count of conspiracy to commit health care fraud.
According to admissions made as part of his plea agreement, Sanchez was an undisclosed co-owner of Med Health Equipment, LLC (Med Health), which purported to operate as a pharmacy. Sanchez admitted that he and his co-conspirators used Med Health to fraudulently bill Medicare by submitting claims for prescription drugs that Med Health never purchased and never dispensed. To carry out the fraudulent scheme, Sanchez and his co-conspirators paid and caused the payment of kickbacks to patient recruiters in exchange for the referral of Medicare beneficiaries to Med Health. As a result of fraudulent claims submitted in connection with the scheme, Medicare paid Med Health approximately $2.5 million, Sanchez admitted.
Five co-conspirators were charged separately in this case. Lazaro Perez, 55, of Miramar, Florida, and Maria Estrada, 40, of Doral, Florida, both additional co-owners of Med Health, each pleaded guilty to conspiracy to commit health care fraud and were sentenced in April 2018 and August 2018 to serve 63 and 57 months in prison, respectively. Yulieth Dominguez Gonzalez, 40, of Miami, pleaded guilty to conspiracy to receive kickbacks and was sentenced in June 2018 to serve 21 months in prison. Rosa Menendez, 65, of Homestead, Florida, pleaded guilty to conspiracy to commit money laundering and was sentenced in October 2018 to serve 18 months in prison. Pablo Garcia Menendez, another co-owner of Med Health, was charged by indictment in February 2018 and remains a fugitive.
All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorney David Snider of the Fraud Section is prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Social Services Worker Indicted on Charges of Defrauding A Client Out of A Car and Lying to the FBIRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Rhonda Henderson, 47, of Cheektowaga, NY, with mail fraud and making false statements. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that according to the indictment, between September 2013 and January 3, 2014, the defendant devised a scheme to defraud Victim A of a 1999 Honda Accord, which belonged to the victim’s deceased mother. Henderson worked as a social services manager for a local social services agency. The defendant met Victim A, who suffered from a variety of mental health issues and only completed formal education through seventh grade, through her employment at the agency where Victim A received services.
As part of the scheme, Henderson reminded Victim A of the things that Henderson did for Victim A and Victim A's mother prior to her death, and advised Victim A that Victim A should do the defendant a favor as a result. Henderson asked Victim A to allow her son, D.H., to drive the 1999 Honda Accord for a temporary period of time because Henderson was having financial trouble and could not get her son a car. Victim A gave the defendant and her son physical possession of the vehicle.
Henderson deceived Victim A into signing Department of Motor Vehicle (DMV) documents that would allow the defendant to obtain a duplicate title for the 1999 Honda Accord. Henderson took Victim A to the DMV branch on Sheridan Drive in Amherst, NY, at which time Victim A filled out and signed an application for a duplicate title. The application was then processed by L.Y., an associate of Henderson. A duplicate title was issued in the name of Victim A's deceased mother, but with Henderson's home address in Cheektowaga listed on the title. Victim A did not fill out the address portion of the form and did not know that it included Henderson’s address.
Subsequently, the defendant forged Victim’s A’s signature on the duplicate title, listing Victim A as the “seller,” and listing herself as the “buyer.” Henderson then registered the 1999 Honda Accord in her name. The defendant’s actions resulted in the DMV mailing the defendant title to the vehicle and defrauding Victim A of the 1999 Honda Accord.
The indictment further alleges that in June 2014, the defendant made several false statements to the FBI when she was questioned pertaining to her actions related to the 1999 Honda Accord.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the New York State Department of Motor Vehicles, Division of Field Investigation, under the direction of Owen McShane, Director of Investigations.
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.
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Sentences Handed Down for Illegal Pill Mills Operating in Valdosta and ColumbusRead the Press Release
Macon – Seven defendants involved in two clinics which operated “pill mills”, where tens of thousands of prescriptions for highly addictive opioids were dispensed, were sentenced this week in federal court, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. On Wednesday, December 5, 2018, The Honorable Hugh Lawson sentenced Dr. William Bacon, 83, of St. Johns, FL to 72 months in prison and the forfeiture of over $95,000 and Dr. Donatus O. Mbanefo, 65, of Columbus, GA to 96 months in prison. A jury found both Dr. Bacon and Dr. Mbanefo guilty of conspiracy to dispense controlled substances outside the usual course of medical practice and a legitimate medical purpose at clinics in Valdosta, Georgia and Columbus, Georgia. Dr. Mbanefo was also convicted of two additional counts of unlawful dispensation of controlled substances during the jury trial from May 29 to June 13, 2018 in Valdosta federal court.
Five co-conspirators previously entered guilty pleas for their involvement in or knowledge and concealment of the conspiracy, and were sentenced in federal court Thursday, December 6, 2018.
On charges of Conspiracy:
1. Carol Neema Biggs a/k/a Carol Johnson, 33, of Hollywood, FL: 60 months imprisonment, plus 36 months consecutive in prison for a total of 96 months imprisonment
2. Junior Alexander Biggs, 40, of Hollywood, FL: 50 months imprisonment, plus 36 months consecutive in prison for a total of 86 months imprisonment
3. Nilaja C. Biggs, 36 of Hialeah, FL: 36 months imprisonment
On charges of Knowledge and Concealment of the Conspiracy:
4. Shavonta Devon Bright, 35 of Miami, FL: 3 years probation
5. Ionie Whorms, 55 of Goose Creek, SC: 3 years probation
Dr. Vinod Shah, 69 of Salisbury, NC previously entered a guilty plea to involvement in the pill mill conspiracy and will be sentenced at a later date. Dr. Shah saw patients at the Relief Institute of Columbus in 2012-2013 and issued prescriptions for more than 398,000 Oxycodone pills and more than 100,000 Xanax and Soma pills.
Evidence presented during the trial showed that co-conspirators Carol Biggs, Nilija Biggs and Junior Biggs formed the Wellness Center of Valdosta (WCV) in June 2011, located at 2016 E. Adair Street, to operate as a pain clinic. Dr. Bacon began working there in September 2011 and saw patients until the clinic closed. The clinic saw unrealistically large numbers of patients daily, including people from out of state, accepting no forms of insurance or government benefits but taking cash payments only. No diagnostic testing was offered, and no alternative treatments outside prescribing large quantities of a “cocktail” of pain medications and other controlled substances were offered to patients. The “cocktail” generally included such highly addictive controlled substances as Oxycodone and Xanax, but also included Hydromorphone, Hydrocodone, Soma, Valium and Ambien. During the approximately 27 months during which Dr. Bacon worked at the Wellness Center of Valdosta, he wrote more than 29,000 prescriptions for controlled substances.
In June 2012, Carol and Junior Biggs opened another pain clinic in Columbus known as the Relief Institute of Columbus. The Relief Institute of Columbus operated in the same fashion as the Wellness Center of Valdosta by unlawfully dispensing controlled substances. Dr. Mbanefo saw patients at the Relief Institute between mid-March 2013 and mid-June 2013. During that three month period of time, Dr. Mbanefo wrote more than 2,900 prescriptions for controlled substances, including prescribing large quantities of Oxycodone and Xanax to an undercover agent, who had no legitimate medical issues.
The doctors at both clinics were paid $1200 to $1400 per day to see patients, with a bonus for Dr. Bacon when he saw more than 40 in a single day. During the operation of the two clinics, patients made cash payments of more than $2 million to see the doctors for prescriptions.
“Opioid addiction is destroying lives in our communities at an ever-increasing rate,” said Charles “Charlie” Peeler, the United States Attorney for the Middle District. “Doctors and medical professionals who profit from these illegal pill mills are doing serious harm to our society, and we will continue to work with our law enforcement partners to stop these lethal operations.”
The case was investigated by the Drug Enforcement Administration, the Georgia Bureau of Investigation and Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Robert D. McCullers and K. Alan Dasher prosecuted the case for the United States.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Seattle Man Sentenced to Prison for Cyberstalking Campaign Against a Former Friend and a Co-WorkerRead the Press Release
A former Seattle, Washington information technology professional was sentenced today in U.S. District Court in Seattle to 30 months in prison and three years of supervised release for conducting cyberstalking and threat campaigns against multiple victims, announced U.S. Attorney Annette L. Hayes. JOEL KURZYNSKI, 39, was also ordered to pay $37,682 in restitution to the victims. At the sentencing hearing U.S. District Judge Robert S. Lasnik noted that some strike terror with a gun or a bomb, but in this case KURZYNSKI “terrorized with a smart phone and a computer…. Cyberstalking and terrorizing people like this is a violent crime and there will be prison sentences.”
“This defendant tormented his victims through death threats, the creation of fake dating profiles, and waves of ceaseless harassment,” said U.S. Attorney Hayes. “He cruelly exploited his computer skills and his knowledge of these victims to make them fear for their lives and the lives of their loved ones. Such conduct cannot be tolerated and will be aggressively prosecuted by the Department of Justice.”
In September 2018, KURZYNSKI pleaded guilty to two counts of cyberstalking. According to records filed in the case, KURZYNSKI engaged in an extensive and rapidly escalating cyberstalking campaign that targeted two individuals known to him. The online campaign involved -- among other things -- death threats, body shaming, and hate speech. Beginning in March 2017, KURZYNSKI orchestrated numerous spam phone calls to Victim 1. The conduct soon escalated to fake dating profiles wherein KURZYNSKI portrayed Victim 1 as seeking sadomasochistic or underage relationships. These profiles contained photographs of Victim 1 and his contact information, resulting in solicitations and harassing messages directed toward Victim 1 from multiple strangers. KURZYNSKI then sent several anonymous death threats to Victim 1, including the threat, “faggot. Time to die.” At one point, KURZYNSKI impersonated a journalist and contacted Victim 1, claiming that an upcoming article would levy sexual misconduct allegations against Victim 1 related to Victim 1’s work with a non-profit youth organization.
KURZYSNKI also admitted that in November 2017, he began registering Victim 2 for numerous weight loss and suicide prevention programs, resulting in a wave of calls and emails from entities such as Overeaters Anonymous, Weight Watchers, Yellow Ribbon Suicide Prevention, and others. Within weeks, KURZYNSKI started sending anonymous death threats to Victim 2, many of which referenced Victim 2’s work address. One threat claimed that he was waiting for her in the lobby, and another that said, “Looking forward to seeing you today and how much you bleed. Don’t go to the bathroom alone.”
Speaking to the court today, the victims talked about how the harassment impacted them – forcing one to change jobs and move from the city. “Over a year I lived in extreme fear for my life and my character,” the victim said. The second victim told the court how her work performance suffered, because she knew her stalker was someone at her place of employment. She told the court that on her birthday she arrived at work to an email that read “Are you ready to die today?” The defendant targeted her simply because she had asked for help with her scanner and went to KURZYNSKI’s supervisor when he refused to assist her.
KURZYNSKI spoke to his victims saying, “for what I have put you through I cannot apologize enough. I have no excuse. There is no justification.”
Victims of cyberstalking campaigns such as this often may be hesitant to come forward. The Justice Department encourages individuals who may be the victims of similar schemes to contact their local law enforcement agencies to report this conduct.
The U.S. Secret Service’s Seattle Field Office investigated the case with substantial assistance from the Seattle Police Department and King County Prosecutor’s Office. Trial Attorney Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Francis Franze-Nakamura of the Western District of Washington are prosecuting the case.
Seattle Man Sentenced to over Two Years in Prison for Cyberstalking CampaignRead the Press Release
A former Information Technology professional was sentenced to 30 months in prison and three years supervised release for conducting cyberstalking and threat campaigns against multiple Washington residents, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Annette L. Hayes of the Western District of Washington. The victims’ names are being withheld to protect their privacy.
Joel Kurzynski, 39, of Seattle, Washington, was sentenced in the U.S. District Court for the Western District of Washington by U.S. District Judge Robert S. Lasnik.
According to admissions made in connection with his plea, Kurzynski engaged in an extensive and rapidly escalating cyberstalking campaign that targeted two individuals known to him. The online campaign involved -- among other things -- death threats, body shaming, and hate speech. Beginning in March 2017, Kurzynski orchestrated numerous spam phone calls to Victim 1. The conduct soon escalated to fake dating profiles wherein Kurzynski portrayed Victim 1 as seeking sadomasochistic or underage relationships. These profiles contained photographs of Victim 1 and his contact information, resulting in solicitations and harassing messages directed toward Victim 1 from multiple strangers. Kurzynski then sent several anonymous death threats to Victim 1, including the threat, “faggot. Time to die.” At one point, Kurzynski impersonated a journalist and contacted Victim 1, claiming that an upcoming article would levy sexual misconduct allegations against Victim 1 related to Victim 1’s work with a non-profit youth organization.
Kurzysnki also admitted that in November 2017, he began registering Victim 2 for numerous weight loss and suicide prevention programs, resulting in a wave of calls and emails from entities such as Overeaters Anonymous, Weight Watchers, Yellow Ribbon Suicide Prevention, and others. Within weeks, Kurzynski started sending anonymous death threats to Victim 2, many of which referenced Victim 2’s work address. One threat claimed that he was waiting for her in the lobby, and another that said, “Looking forward to seeing you today and how much you bleed. Don’t go to the bathroom alone.”
The U.S. Secret Service’s Seattle Field Office investigated the case with substantial assistance from the Seattle Police Department and King County Prosecutor’s Office. Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Francis Franze-Nakamura of the Western District of Washington prosecuted the case.
Victims of cyberstalking campaigns such as this often may be hesitant to come forward. The Justice Department encourages individuals who may be the victims of similar schemes to contact their local law enforcement agencies to report this conduct.
Schuylkill County Man Guilty of Methamphetamine Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anibal Luis Rodriguez, age 27, of Pottsville, pleaded guilty yesterday to conspiracy to distribute more than 500 grams of methamphetamine, before U.S. District Court Judge Robert D. Mariani.
According to United States Attorney David J. Freed, Rodriguez, admitted to committing the offense between July 2016 and May 24, 2017, in Schuylkill County and elsewhere. The plea agreement notes that Rodriguez was the organizer and leader of the drug conspiracy and used violence or threats in connection with the drug conspiracy.
Rodriguez was indicted by a grand jury along with three other persons in August 2017. Two of those co-defendants, David Castro and Laverne Schaeffer, previously pleaded guilty to participating in the conspiracy and are awaiting sentencing. Another co-conspirator, Ernest Schaeffer, also previously pleaded guilty and is awaiting sentencing.
Judge Mariani ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Schuylkill County. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of a renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. The charge also carries a mandatory minimum penalty of ten years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sacramento County Resident Sentenced to Seven Years in Prison for Drug Dealing and Illegally Selling FirearmsRead the Press Release
SAN FRANCISCO – Donnie Yingling was sentenced today in federal court to 84 months in prison for distributing crystal methamphetamine, conspiring to deal in firearms without a license, and related crimes, announced U.S. Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Ray Roundtree. The sentence was handed down by the Honorable Susan Illston, Senior U.S. District Judge.
Yingling, 48, of Walnut Grove, Calif., pleaded guilty to the charges on August 23, 2018. According to his plea agreement, Yingling admitted that in March 2017, he knowingly conspired with codefendant Ronald Ahart to sell firearms without a license. Specifically, Yingling admitted that on March 21, 2017, he and Ahart talked by telephone with an undercover officer to arrange the sale of firearms. On March 22, 2017, the codefendants sold five firearms for $4,340 to undercover officers. Further, the defendants sold another six firearms to the undercover officers for $7,000 on March 23, 2017. Yingling admitted that he was not a licensed firearms dealer.
Yingling also admitted that on April 20, 2017 he sold 54.4 grams of actual methamphetamine to undercover officers for $600.
On July 21, 2017, a federal grand jury indicted Yingling charging him with two counts of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1), as well as one count each of conspiracy to deal in firearms without a license, in violation of 18 U.S.C. § 371; dealing with firearms without a license, in violation of 18 U.S.C. § 922(a)(1)(A); and distribution and possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)(viii). Yingling pleaded guilty to the conspiracy charge, the firearm dealing charge, and the drug distribution charge. Judge Illston dismissed the remaining charges at his sentencing.
In addition to the prison term, Judge Illston ordered Yingling to serve a five year period of supervised release to begin when the prison term has been completed. Yingling has been in custody since November 28, 2017.
On August 3, 2018, the co-conspirator Ahart pleaded guilty to his part in the gun distribution conspiracy and to being a felon in possession of firearms. On November 30, 2018, Judge Illston sentenced Ahart to 46 months in prison and three years of supervised release for his offenses.
Special Assistant U.S. Attorney Christopher Vieira is prosecuting the case with the assistance of Kimberly Richardson. These prosecutions are the result of an investigation by the ATF and are brought as part of “Operation Cold Day,” an effort spearheaded by the ATF to bring federal resources to bear in support of ongoing state and local efforts to combat gun and drug related crime.
Rochester Felon Pleads Guilty to Possessing A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Marcus Lynch, 32, of Rochester, NY, pleaded guilty to possession of a firearm by a convicted felon, before U.S. District Judge Charles Siragusa. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that the defendant went to the Firing Pin Shooting Range in the Town of Bergen to target shoot a rifle. Lynch was previously convicted in January 2008 of Robbery in the Third Degree; in August 2007 of Burglary in the Second Degree and Grand Larceny in the Fourth Degree; and in May 2007 of Burglary in the Second Degree. As a result, the defendant is legally prohibited from possessing a firearm.
The plea is the result of an investigation by New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for March 12, 2019, at 9:15 a.m. before Judge Siragusa.
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Providence Man Admits to Trafficking Cocaine via the U.S.MailRead the Press Release
PROVIDENCE, RI – A Providence man today admitted to trafficking cocaine through the U.S. Postal Service from Puerto Rico to Rhode Island, and to shipping packages containing cash to Puerto Rico.
Appearing before U.S. District Court Chief Judge William E. Smith, Eliot Figueroa-Rosario, 44, pled guilty to attempted possession with intent to distribute 500 grams or more of cocaine, announced United States Attorney Stephen G. Dambruch, Inspector in Charge of the U.S. Postal Inspection Service Boston Division Joseph W. Cronin, and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to court documents, for more than a year, United States Postal Inspection Service inspectors conducted an investigation into Figueroa-Rosario’s drug trafficking activities and his involvement in a series of packages shipped to and from Puerto Rico.
In May 2017 and May 2018, Figueroa-Rosario was captured on video surveillance shipping parcels to Puerto Rico from the U.S. Postal Service Providence Processing and Distribution Center (P&DC). A court-authorized search of the packages found them to contain $16,000 and $26,000 respectively. The cash was seized by law enforcement.
On June 15, 2018, a Priority Mail package mailed three days earlier from Puerto Rico and addressed to Figueroa-Rosario’s Providence residence was intercepted from the mail stream at the P&DC. The package was examined by a Rhode Island State Police K-9, which detected the presence of a narcotic odor. A federal court-authorized inspection of the contents of the package revealed 1160 grams of cocaine.
Several days later a Postal Service Inspection undercover agent delivered the package to Figueroa-Rosario’s residence. Figueroa-Rosario accepted the package and was arrested. A court-authorized search of the residence by U.S. Postal Inspectors and members of the Rhode Island State Police High Intensity Drug Trafficking Area Task Force resulted in the seizure of, among other items, evidence of packages shipped from Puerto Rico to Figueroa-Rosario’s residence and $6,500 in cash found hidden in a floor vent.
Figueroa-Rosario is scheduled to be sentenced on March 15, 2019.
Attempted possession with attempt to distribute 500 grams or more of cocaine is punishable by statutory penalties of 5-40 years of imprisonment; a term of supervised release of at least 4 years and up to life; and a fine of $5,000,000.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan, with the assistance of Assistant U.S. Attorney Richard W. Rose.
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Pittsburgh Woman Sentenced to Probation for Painkiller Distribution SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh has been sentenced in federal court to three years of probation on her conviction of healthcare fraud and possession with the intent to distribute and distribution of opiate painkiller, oxycodone, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Marion Randolph, 64.
According to information presented to the court, Randolph participated in a criminal network of drug dealers who obtained opiate pain killers and then illegally distributed them to users in the Pittsburgh area. Randolph sold prescription pills that she obtained through a health benefit program to dealers in the criminal network and to other people. She obtained the pills under the false pretense that she intended to use the pills herself when, in fact, she intended to and did distribute some of the pills to others.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of the Attorney General, the Pittsburgh Bureau of Police, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Randolph.
Physicians Group Employee Admits to Attempted ExtortionRead the Press Release
PROVIDENCE – A former employee of a Providence not-for-profit physicians group today admitted that he attempted to extort $25,000 from the physicians group in exchange for the return of digital media devices onto which he downloaded and took home private patient data and employee data belonging to the physicians group.
Randy Lutz, 37, of Providence, admitted to making the demands in a series of emails, text messages and telephone calls to executives, board members and employees of the physicians group after his employment with the physicians group was terminated in May 2017.
On July 20, 2017, FBI agents and FBI task force officers executed a court-authorized search warrant at Lutz’s residence and seized several thumb drives, a laptop computer, and a cell phone. Some of the devices contained private patient and employee data belonging to the physicians group downloaded without permission.
Appearing before U.S. District Court Chief Judge William E. Smith, Lutz pled guilty to extortionate interstate communications. He is scheduled to be sentenced on March 7, 2019.
Lutz’s guilty plea is announced by United States Attorney Stephen G. Dambruch and Special Agent in Charge of the FBI’s Boston Division Harold H. Shaw.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
United States Attorney Stephen G. Dambruch acknowledges and thanks the Providence Police Department for their assistance in the investigation of this matter.
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Otsego County Man Arrested for Receipt and Distribution of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Justin Hobbie, age 41, of Springfield Center, New York, appeared today in federal court on charges that he received and distributed child pornography over the internet.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the federal criminal complaint, Hobbie received and distributed images of child pornography using a peer-to-peer file sharing program. An initial review of his desktop computer revealed that it contained numerous video files depicting child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Hobbie faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, if convicted, Hobbie would be required to register as a sex offender.
Hobbie appeared today before United States Magistrate Judge Thérèse Wiley Dancks, who ordered him detained pending a detention hearing scheduled for December 12, 2018.
Anyone with information relevant to this investigation may call HSI’s Albany office at (518) 220-2129.
This case is being investigated by HSI Albany with assistance from the New York State Police Computer Crimes Unit, the Internet Crimes Against Children Task Force and U.S. Customs and Border Protection Air and Marine Operations, and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Oshkosh Man Indicted for Fentanyl Overdose DeathRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on December 4, 2018, a federal grand jury indictment was unsealed against Desmond T. Burns (age: 39) of Oshkosh, Wisconsin.
The indictment alleges Burns distributed Fentanyl in violation of Title 21 United States Code, Sections 841(a)(1) and (b)(1)(C). Further, it alleges the distribution resulted in the overdose death of a New London man in June of 2017. Other court filings identify Burns as the distributor of Fentanyl that resulted in the May 2017 overdose death of an Appleton woman. If convicted Burns will serve between 20 years and a lifetime in federal prison.
This case was investigated by the Winnebago County Sheriff’s Office, the New London Police Department, and the Appleton Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Opiates & cash found in home of Fishers man facing felony chargesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced that JOACHIM VAN BUREN, 50, of Fishers, Indiana, was charged with two counts of Possession with Intent to Distribute Controlled Substances, and one count Prohibited Person (Felon) in Possession of a Firearm.
Van Buren has a prior second degree felony, in Hidalgo County, Texas, that occurred on or about May 5, 2010, for Possession of Marijuana of 2,000 pounds or less but more than 50 pounds. Among other items, law enforcement officers confiscated: 50 grams or more of methamphetamine, 100 grams or more of heroin, a Schedule I, narcotic controlled substance, and approximately $31,115.00 in cash from Van Buren’s home in Fishers along with one (1) Springfield Armory 45. Caliber semi-automatic handgun, one (1) Colt.25 caliber semi-automatic handgun, one (1) Ruger .45 Caliber semi-automatic handgun, and ammunition.
“The government is intentionally focusing its resources on the opioid epidemic and holding traffickers accountable,” said United States Attorney Josh J. Minkler. “This case represents collaborative enforcement efforts in this regard and sends an important message to the community that federal agents are working in partnership with local law enforcement to bring violators to justice.”
According to Assistant United States Attorney Lindsay Karwoski, who is prosecuting the case for the government, the defendant faces a possible sentence of 10 years to life imprisonment.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
This criminal charge reinforces the United States Department of Justice Strategic Goals Intended To Address Indiana’s Heroin and Opioid Crisis through Federal Prosecution of more Heroin and Opioid Traffickers. See USAO-SDIN Strategic Plan, Section 3.3.
Office manager of Billings business sentenced for embezzlementRead the Press Release
BILLINGS—Billings resident Jennifer Anne Thaw, who admitted embezzling approximately $390,680 from her employer where she worked as the office manager, was sentenced in federal court today to one year and one day in prison, three years supervised release and ordered to pay restitution, U.S. Attorney Kurt G. Alme said.
Presiding U.S. District Judge Susan P. Watters also ordered six months of house arrest after prison and set restitution at $392,930.71.
Thaw, 45, pleaded guilty in March to four counts of wire fraud.
Thaw, who worked as a controller and office manager for J & S Recovery, Inc., embezzled the money during a five-year period, from 2012 to August 2017. Through her job, Thaw had access to the company’s financial and banking information, including online access to the firm’s bank account.
As part of her scheme to defraud the company, Thaw used the online access to transfer money from the company’s bank account into her own personal checking account at a different bank. To conceal the missing money, Thaw did not record the transfers in the company’s financial accounting software program.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the FBI.
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Northern District of Georgia recognized by Department of Justice for work with Project Safe NeighborhoodsRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has been recognized by the Department of Justice (DOJ) for their work with the Project Safe Neighborhoods (PSN) program at the 2018 PSN National Conference’s Award Ceremony in Kansas City, Missouri. Law Enforcement Coordinator Didi Nelson was cited for her outstanding contribution to the PSN Program, and the Offender Alumni Association (OAA), which organizes support groups for high-risk adult felons being released from custody to provide peer-to-peer support, help them solve dilemmas, and connect them with resources, received the DOJ Innovative Prevention/Reentry Strategy award.
Project Safe Neighborhoods focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
“We are extremely proud to be recognized for the hard work being done in this district,” said U.S. Attorney Byung J. “BJay” Pak. “As part of our PSN Strategy, we have extended partnerships and collaborations beyond the metro Atlanta area, teaming with individual law enforcement agencies and prosecutor’s offices to eliminate havens for crime and removing those who drive that crime from the community. In addition, we continue our commitment to assisting those returning from incarceration, seeking successful reentry into the community, through partnerships with outstanding organizations like the OAA. Congratulations again to both Didi and the OAA.”
During her more than three-decade career with DOJ, Didi Nelson has been a mainstay of the PSN program who has implemented the program faithfully and consistently in the District since its inception. As a former police officer Nelson’s commitment, credibility, and extensive knowledge of the program served as the bridge between the Department and local and state law enforcement whose partnership is so crucial for PSN's success. Didi continually works to implement anti-violence initiatives in every corner (and county) of the Northern District of Georgia as she also impacts the national PSN program more broadly as an ongoing consulting expert to other Districts in the country that are seeking to develop effective PSN strategies of their own.
OAA organizes support groups for high-risk adult felons being released from custody to provide peer-to-peer support, help them solve dilemmas, and connect them with resources. The organization consists of former offenders who are uniquely motivated and committed to helping those about to pending release from prison. OAA’s model recognizes that continuous and consistent support is crucial to help prevent recidivism. Accordingly, they meet with offenders while they are incarcerated and maintains relationships with them and their families, connecting them with networks of support in their communities upon release. The organization has supported more than 650 offenders returning to the community. In 2018, OAA expanded in support of the Northern District of Georgia’s PSN strategy and partners with the U.S. Attorney’s Office, state and federal agencies, and other providers to support high-risk adult offenders being released from custody into PSN target enforcement areas.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
North Dakota U.S. Attorney’s Office Announces Recent Indictments and a Sentencing for Sexual Offenses on the Fort Berthold Indian ReservationRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced the recent prosecution of three individuals for sexual offenses occurring on the Fort Berthold Indian Reservation.
INDICTMENTS:
Tyson Keith Eagleman, 30, from New Town, ND, was charged by an Indictment returned on September 5, 2018, on two counts of Aggravated Sexual Abuse by Force. The Indictment alleges that on or about May 27, 2017, Eagleman, an enrolled member of the Chippewa Cree Tribe, sexually assaulted a woman on the Fort Berthold Indian Reservation. On September 24, 2018, Eagleman had an Initial Appearance in the United States District Court for the District of Montana. On October 25, 2018, in Bismarck, ND, Eagleman had an Arraignment hearing before United States Magistrate Judge Alice Senechal. On October 29, 2018, United States Magistrate Judge Charles Miller, Jr. presided over Eagleman’s Detention hearing and detained Eagleman pending trial.
Chance Lone Bear, 21, from Mandaree, ND, was charged by an Indictment returned on October 3, 2018, for Sexual Abuse of a Minor. The Indictment alleges that on or about March 23, 2017, Lone Bear, an enrolled member of the Three Affiliated Tribes, knowingly engaged in a sexual act with a child aged between 12 and 16 years on the Fort Berthold Indian Reservation. On November 20, 2018, Lone Bear had an Initial Appearance and Arraignment before United States Magistrate Judge Charles Miller, Jr. Judge Miller released Lone Bear on several conditions pending trial.
These cases are being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek.
The Indictments in the above listed cases are not evidence of guilt. The defendants are presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
SENTENCING:
Nathan Leon Yellow Lodge, Jr., 26, from New Town, ND, was sentenced on October 15, 2018, by Chief United States District Judge Daniel L. Hovland on a charge of Sexual Abuse of a Minor. Judge Hovland sentenced Yellow Lodge to serve five years in prison, followed by ten years of supervised release. Yellow Lodge pleaded guilty to this offense on April 11, 2018.
On June 18, 2017, Yellow Lodge engaged in sexual intercourse with a 15-year-old minor when he was 25 years old.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek.
North Carolina Man Sentenced to Nine Years in Federal Prison for Traveling to Maryland to Engage in Sexual Conduct with a 15-Year-Old GirlRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Travis Wilmoth, age 31, of Fayetteville, North Carolina today to nine years in prison, followed by 25 years of supervised release, for traveling with intent to engage in illicit sexual conduct with a minor. Judge Russell also ordered that, upon his release from prison, Wilmoth must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, on March 2, 2018, the FBI received a telephone call from the mother of a 15-year-old minor female. She had recently discovered that Wilmoth had been using social media to chat online with her daughter since November 2017, and those conversations had become sexual in February 2018. With the permission of the girl and her mother, FBI agents took control of the girl’s account and communicated with Wilmoth posing as the minor female. During the ensuing chats, Wilmoth repeatedly asked the girl to take “naughty” pictures and send them to him. On March 14, 2108, Wilmoth discussed traveling to Maryland to visit the girl and engaging in sexual acts with her. Between March 7 and April 11, 2018, Wilmoth sent the girl sexually explicit images and videos of himself. On May 11, 2018, Wilmoth drove from North Carolina to Maryland to meet with the girl with the intent to engage in sexual activity. The FBI agent posing as the girl had provided Wilmoth with an address in Baltimore County, Maryland. Wilmoth arrived at that location with condoms he had previously purchased and was arrested as he approached the front door.
Wilmoth served in the United States Air Force from 2007 to 2016, and at the time of his arrest was serving in the National Guard.
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 Attorney’s 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. For more information about internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Sandra Wilkinson, who prosecuted the federal case.
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