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22 October 2018
Sentencings for October 11 - 17, 2018Read the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced JOHN PRESTON JACKSON, 65, of Casper, Wyoming on October 11, 2018 for possession with intent to distribute oxycodone and possession of a firearm in furtherance of a drug trafficking crime. Jackson was arrested in Casper, Wyoming. He received one hundred twenty months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $400.00. The Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced CHRISTINA O’DELL, 40, of Cheyenne, Wyoming on October 11, 2018 for obtaining a controlled substance by fraud. She received thirty-six months of supervised release, and ordered to pay restitution in the amount of $11.32. The Veterans Administration investigated this case.
Chief Federal District Court Judge Scoot W. Skavdahl sentenced VALENTIN DOMINGUEZ NOYOLA, 42, of Acapulco, Mexico on October 11, 2018 for possession with intent to distribute methamphetamine. Noyola was arrested in Rock Springs, Wyoming. He received forty-one months of imprisonment, to be followed by sixty months of supervised release, and ordered to a $100.00 special assessment. The Sweetwater County Sheriff’s Office and Wyoming Division of Criminal Investigation investigated this case.
Federal District Court Judge Alan B. Johnson sentenced JULIO CESAR QUINTERO, 21, of Phoenix, Arizona on October 10, 2018 for conspiracy to distribute methamphetamine. Quintero was arrested in Larimer County, Colorado. He received seventy months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $900.00. The Wyoming Division of Criminal Investigation, Northern Colorado Drug Task Force, U.S. Drug Enforcement Agency, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Federal District Court Judge Alan B. Johnson sentenced ANDREW CHARLES MILLER, 28, of Cheyenne, Wyoming on October 17, 2018 for carrying a firearm during and in relation to a drug trafficking crime. Miller was arrested in Cheyenne, Wyoming. He received sixty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay restitution in the amount of $1000.00 and a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Sentencings in Large Multi-State Moultrie Meth Ring Case, More Expected This WeekRead the Press Release
ALBANY-- United States Attorney for the Middle District of Georgia, Charles E. Peeler, announced Tuesday that eleven of a total of 28 individuals involved in a massive Moultrie-based Methamphetamine distribution ring were sentenced by The Honorable Leslie J. Abrams on Monday, October 22, 2018 and Tuesday, October 23, 2018 in U.S. Federal Court in Albany. More sentencings in this crime ring are expected throughout the week.
Authorities estimate that the group was responsible for the distribution of more than 20 kilograms of the drug. From May until November 2016, an organization of 30 individuals distributed Methamphetamine in and around Moultrie, Georgia. According to court evidence, some of these transactions also occurred in Atlanta, GA and parts of Florida, including at the Georgia-Florida line.
“We must put a stop to the flow of methamphetamine in and through our state,” said Charles Peeler, the U.S. Attorney for the Middle District of Georgia. “This extensive meth crime ring operating out of a quiet community in Southwest Georgia is an example of just how pervasive these networks have become. I salute the tireless efforts of more than a dozen law enforcement agencies and our committed prosecutorial team that contributed to bringing this meth distribution ring down.”
The following individuals were sentenced Monday:
- Marcus Andrews age 35 of Bristol, FL, plead guilty to Conspiracy to possess Meth with the Intent to Distribute, and was sentenced to 145 months and 3 years supervised release.
- Sharon Blackwell age 46 of Moultrie, GA, plead guilty to Possession With Intent To Distribute Methamphetamine, and was sentenced to 100 months and 5 years supervised release.
- Samuel Butler age 56 of Crawford, FL, plead guilty to Conspiracy to Possess with Intent to Distribute controlled substances, and was sentenced to 96 months and 5 years supervised release.
- Michael Dampier age 45 of Doerun, GA, plead guilty to Conspiracy to Possess with Intent to Distribute Methamphetamine, and was sentenced to 160 months to serve, 5 years supervised release and $100 mandatory assessment.
- Devin Dorminey age 23 of Lake City, FL, plead guilty to Possession of a Firearm by a Drug User, and was sentenced to 18 months and 3 years supervised release.
- Leroy Haynes age 41 of Norman Park, GA, plead guilty to Conspiracy to Possess with Intent to Distribute Methamphetamine, and was sentenced to 180 months and 5 years supervised release.
- Micahel Kulak age 45 of DeLeon Springs, FL, plead guilty to Interstate Travel in Aid of Racketeering Enterprises, and was sentenced to 24 months and 3 years supervised release.
- Stephanie McMurphy age 39 of Adel, GA, plead guilty to Distribution of Methamphetamine within 1000 feet of a school and was sentenced to 102 months to serve, 6 years supervised release and $100 mandatory assessment.
- Avery Norman age 37 of Moultrie, GA, plead guilty to Use of a Communication Device in Furtherance of Possession with Intent to Distribute Methamphetamine and was sentenced to 24 months and 1 year supervised release.
- Cambrick Taylor age 22 of Moultrie, GA, plead guilty to Interstate Travel in Aid of Racketeering Enterprises, and was sentenced to 12 months and day to serve, 2 years supervised release and $100 mandatory assessment.
- Melissa Valdez Williams age 30 of Moultrie, GA, plead guilty to Possession with Intent to Distribute controlled substances and was sentenced to 180 months and 5 years supervised release.
The case was investigated by agents of the Drug Enforcement Administration, Georgia Bureau of Investigations, Georgia Department of Corrections, Georgia Department of Community Supervision, Mid-South Narcotics Task Force, Colquitt County Sheriff’s Office, Crisp County Sheriff’s Office, Tift County Sheriff’s Office, Henry County Sheriff’s Office, Grady County Sheriff’s Office, Berrien County Sheriff’s Office, Cook County Sheriff’s Office, Leon County Florida Sheriff’s Office, Volusia County Florida Bureau of Investigation and Moultrie Police Department.
Assistant United States Attorney Leah E. McEwen is prosecuting the case for the United States.
Roswell Woman Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Monica Vega, 36, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison for her conviction on methamphetamine trafficking charges. Vega will be on supervised release for five years after completing her prison sentence.
Vega was arrested on Nov. 17, 2017, on a three-count indictment charging her with methamphetamine trafficking and firearms offenses. The indictment charged Vega with possessing methamphetamine with intent to distribute on April 20, 2017 and Oct. 20, 2017, and possessing a firearm in furtherance of a drug trafficking crime on April 20, 2017. According to the indictment, Vega committed the crimes in Chaves County, N.M.
On June 19, 2018, Vega pled guilty to a two-count felony information charging her with possessing methamphetamine with intent to distribute. In entering the guilty plea, Vega admitted that on April 20, 2017, law enforcement agents seized approximately 57.8 grams of methamphetamine, drug paraphernalia, and $1,083 while executing a search warrant at her residence. Vega also admitted that on Oct. 19, 2017, New Mexico State Police officers seized approximately 33.6 grams of methamphetamine from her when they arrested her on a traffic violation. Vega acknowledged that she planned to distribute the methamphetamine to others for money.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearm and Explosives, Homeland Security Investigations, the Roswell Police Department, New Mexico State Police and the HIDTA Chaves County Metro Narcotics Task Force. Assistant U.S. Attorneys Dustin C. Segovia and John Balla of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Rock Island Man Pleads Guilty to Hobbs Act RobberyRead the Press Release
ROCK ISLAND, Ill. – Sentencing is scheduled in February 2019 for Ronald T. Walker, 37, of Rock Island, Ill., who pleaded guilty on Oct. 19, 2018, to one count of robbery, in violation of the Hobbs Act, before U.S. District Judge Sara Darrow.
As part of his plea, Walker admitted that on Dec. 18, 2017, he arranged for the purchase from a drug dealer of a small amount of marijuana. Instead of purchasing the drugs, however, Walker stabbed his would-be drug dealer and took the marijuana by force. Walker’s assault was so vicious that the point of his knife was embedded in his victim’s skull for several months.
Robbery of drugs or drug proceeds, even illegal ones, constitutes a violation of the Hobbs Act, which criminalizes robberies affecting interstate commerce. Violators face up to 20 years in prison, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment. Additional, consecutive penalties are added if firearms are involved.
Walker’s sentencing is currently set for Feb. 19, 2019, before Judge Darrow. Walker has remained in the custody of the U.S. Marshals Service since he was arrested and indicted on the federal charge in June 2018.
The charge is the result of an investigation by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Donald B. Allegro and Kevin C. Knight are prosecuting the case.
Retired Lawyer Indicted for Tax Evasion and Making a False StatementRead the Press Release
PORTLAND, Ore. – On October 16, 2018, a federal grand jury in Portland charged retired attorney Bruce L. Lamon, of Hillsboro, Oregon, with evading $744,000 in personal income taxes.
Lamon is charged in a two-count indictment alleging he evaded payment of his taxes for calendar years 2008 through 2013 and failed to disclose rental income in an application to proceed In Forma Pauperis in a civil case he filed in federal court in 2016.
Between 2006 and 2012, Lamon worked as a commercial litigator at a law firm in Honolulu, Hawaii. Lamon retired in 2012 and moved to Hillsboro. Between November 2012 and December 2015, in the District of Oregon, Lamon is alleged to have committed numerous affirmative acts to evade his tax obligations. These acts include but are not limited to titling vehicles in his former spouse’s name and purchasing rental properties with cash using an LLC registered in Hawaii to conceal these assets from the IRS.
This case is being investigated by IRS Criminal Investigation (IRS-CI) and prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Oregon Tax Fraud Promoter Sentenced to Prison for Sending Fraudulent Financial Instruments and Failing to File Tax ReturnsRead the Press Release
A Hillsboro, Oregon, tax fraud promoter was sentenced to ten years in prison today for submitting fraudulent financial instruments to financial institutions and the U.S. Treasury and failing to file income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented at his April 2017 jury trial, from approximately 2008 through 2015, Winston Shrout, 70, created and submitted more than 300 fraudulent financial instruments with the intent of defrauding financial institutions and the U.S. Treasury. Shrout held seminars and private meetings to promote and market the use of these fraudulent financial instruments to pay off debts, including federal taxes. Shrout sold recordings of his seminars, templates for fraudulent financial instruments and other materials through his website.
The evidence presented at trial also proved that Shrout failed to file his 2009 through 2014 tax returns despite earning substantial income from seminars, licensing fees associated with the sale of his products and annual pension payments. Shrout admitted during trial that he had not paid income tax for at least twenty years.
In addition to the term of imprisonment, U.S. District Judge Robert E. Jones ordered Shrout to serve five years of supervised release and pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Stuart Wexler and Lee Langston of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the District of Oregon for their support during the investigation and prosecution of this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Oklahoma Orthopedic Company to Pay $455,000 to Settle Claims of False Medical BillingRead the Press Release
OKLAHOMA CITY – OLSEN ORTHOPEDICS, P.L.L.C., an Oklahoma City orthopedic company, has agreed to pay $455,000 to settle civil allegations that it submitted false claims to Medicare and TRICARE, announced Robert J. Troester of the U.S. Attorney’s Office.
The United States alleges that from December 1, 2011, through May 5, 2016, Olsen Orthopedics administered by injection Orthovisc and Euflexxa to Medicare and TRICARE beneficiaries. Medicare and TRICARE will only reimburse health care providers for drugs and devices approved by the U.S. Food and Drug Administration. According to the United States, Olsen Orthopedics’ claims to Medicare and TRICARE were false because the Orthovisc and Euflexxa it administered was purchased outside the United States and did not have FDA approval for use in the United States.
In order to resolve the allegations, Olsen Orthopedics agreed to pay $455,000.
In reaching this settlement, Olsen Orthopedics did not admit liability, and the government did not concede that its claims lack merit. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty of litigating the case.
This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations; the FBI; and the Defense Criminal Investigative Service. It was prosecuted by Assistant United States Attorneys Ronald R. Gallegos and Scott Maule.
New York Woman Sentenced to 18 Months in Prison for Trafficking more than $3 Million in Counterfeit Footwear and Handbags through Port of NewarkRead the Press Release
NEWARK, N.J. – A Flushing, New York, woman was sentenced today to 18 months in prison for her plan to distribute counterfeit Nike sneakers, Louis Vuitton handbags, and other phony merchandise that was shipped into the Port of Newark, U.S. Attorney Craig Carpenito announced.
Xiao Xia Zhao, 42, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging her with one count of trafficking in counterfeit goods. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From November 2013 through February 2017, Zhao received certain shipping container numbers from an individual overseas that identified at least three containers containing counterfeit merchandise. Zhao asked individuals working at the Port of Newark to remove the containers from the port before they could be examined by U.S. Customs and Border Protection. Once the containers were removed, Zhao directed that they be delivered to other individuals, who would then distribute the merchandise in New Jersey and elsewhere.
However, law enforcement officers intercepted the containers before Zhao could distribute the goods. At no time was Zhao authorized to import Nike footwear, Louis Vuitton handbags, or any of the other counterfeit merchandise in the containers.
In total, Zhao trafficked in thousands of pairs of fake Nike footwear, Louis Vuitton handbags, and other counterfeit items, with a total estimated retail value of over $3 million. Zhao also paid individuals over $75,000 in exchange for the delivery of the containers.
In addition to the prison term, Judge Linares sentenced Zhao to three years of supervised release.
U.S. Attorney Carpenito credited officers of U.S. Customs and Border Protection, under the direction of Francis J. Russo, Acting Director of Field Operations, New York Field Office; and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Ness County Sheriff Pleads Guilty, Agrees to ResignRead the Press Release
WICHITA, KAN. – The Sheriff of Ness County pleaded guilty Monday to a federal firearm charge and agreed to resign, U.S. Attorney Stephen McAllister said.
Sheriff Bryan Whipple, 48, Ness City, Kan., pleaded guilty to one count of knowingly selling a gun to a person who was prohibited under federal law from possessing a firearm. In his plea, Whipple admitted he arranged to sell a .45 caliber pistol and ammunition to a man he knew was a convicted felon.
The plea agreement calls for Whipple to resign his position as sheriff and to surrender his law enforcement certification from the Kansas Commission on Peace Officers’ Standards and Training. Both parties will recommend Whipple be sentenced to probation. Sentencing is set for Jan. 17.
McAllister commended the Kansas Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Debra Barnett for their work on the case.
Mercer County Man Pleads Guilty to Possessing Crack CocaineRead the Press Release
PITTSBURGH – James Bert White, III, 25, of Farrell, Pennsylvania, has pleaded guilty in federal court in Pittsburgh to a charge of possessing with the intent to distribute a quantity of cocaine base, United States Attorney Scott W. Brady today.
According to information presented to the court, on September 21, 2017, narcotics agents and task force officers from the Pennsylvania Attorney General’s Office executed a search warrant at White’s residence located in Farrell, PA. Earlier that month, two confidential informants purchased crack from White at the residence. During the search, investigators recovered a plastic bag containing 23.53 grams of crack; a digital scale; drug-packaging material; and $1,664.00 in U.S. currency.
Judge Donetta W. Ambrose scheduled sentencing for March 19, 2019 at 11 a.m. White, who has a prior felony drug conviction, faces a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued White’s order of pretrial detention.
Assistant United States Attorney Michael L. Ivory is prosecuting this case on behalf of the government.
The Pennsylvania Attorney General’s Office and the Hermitage Police Department conducted the investigation leading to White’s conviction in this case.
Medical Equipment Company Agrees to Pay $5.25 Million to Resolve Allegations of Fraudulent Claims for Compounded Medical CreamsRead the Press Release
LEXINGTON, Ky. – Cooley Medical Equipment, Inc., an Eastern Kentucky medical equipment supplier headquartered in Prestonsburg, Kentucky, has agreed to pay $5,254,912 to resolve allegations that it violated the False Claims Act by submitting false or fraudulent claims that misrepresented the ingredients used in certain compounded medical creams.
Cooley previously operated a pharmacy in Prestonsburg that in 2015 began making compounded medical creams. Compounding pharmacies, like Cooley’s, prepare customized medications for individual patients, usually by mixing ingredients in order to create a prescription cream. Cooley billed these prescriptions to government insurers, including Medicare, Kentucky Medicaid, and the Department of Veterans Affairs, Veterans Health Administration (known as CHAMPVA). Cooley was required by CHAMPVA and Kentucky Medicaid to obtain their prior authorization in order to use bulk powder forms of Lidocaine and Prilocaine as ingredients in its compounded creams. Without such prior authorization, Kentucky Medicaid and CHAMPVA would not reimburse Cooley for the creams. Medicare, through its Part D program, does not cover bulk powder ingredients at all.
Rather than go through the prior authorization process, or face limited reimbursement from Medicare Part D, Cooley misrepresented the nature of its Lidocaine and Prilocaine ingredients in its claims to federal insurers, falsely stating that Cooley’s compounded medical creams were made with cream-based Lidocaine and Prilocaine ingredients, instead of the bulk powder Cooley actually used. This practice led to the submission of thousands of false claims by Cooley between January 2015 and December 2016, and millions of dollars in improper reimbursements. Cooley did voluntarily self-disclose this misconduct to the United States Attorney’s Office, took proactive steps to resolve the problem, and no longer operates a compounding pharmacy.
Under the terms of the settlement agreement, Cooley will be allowed to pay back the $5,254,912, plus interest, over a period of 6 years. Because Cooley self-disclosed the misconduct, it was able to resolve its liability for only 1.5 times the amount of monetary loss caused by its false claims; by statute, the False Claims Act typically imposes liability for 3 times the amount of loss suffered by the government. In addition, because of Cooley’s self-disclosure, the United States Department of Health and Human Services, which administers the Medicare and Medicaid programs, has agreed not to pursue any administrative action against Cooley that would exclude it from further participation in those federal programs.
“The Department of Justice, and our Office, take seriously the responsibility to aggressively pursue False Claims Act cases, as payment of false or fraudulent claims reduces the pool of money available to pay legitimate claims,” stated United States Attorney Robert M. Duncan, Jr. “Recovering false or fraudulent payments is an essential component of our Affirmative Civil Enforcement efforts and defends the financial integrity of these government programs. We will continue to prioritize these important cases.”
This settlement was a result of an investigation by the United States Attorney’s Office for the Eastern District of Kentucky and the United States Food and Drug Administration, Office of Criminal Investigation (FDA-OCI). An investigation of individuals within Cooley who were responsible for this misconduct is ongoing. Assistant United States Attorney Paul McCaffrey handled the matter for the United States. Cooley admits the allegations contained in the Settlement Agreement, but there been no judicial determination of liability.
Manhattan U.S. Attorney Announces Settlement of Fraudulent Billing Claims Against Vascular Access Centers, L.P.Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced today that the United States has settled civil healthcare fraud claims against VASCULAR ACCESS CENTERS, L.P., and related entities (collectively, “VAC”), for their submission of fraudulent claims for reimbursement by Medicare for vascular surgical procedures not covered under Medicare. In connection with the settlement, which was approved on October 19, 2018, by U.S. District Judge Lorna G. Schofield, VAC agreed to pay at least $3.825 million and up to $18.3 million to resolve its False Claims Act liabilities. In the settlement, VAC also admitted to and accepted responsibility for its conduct.
Manhattan U.S. Attorney Geoffrey S. Berman said: “For years, Vascular Access Centers cheated taxpayers out of millions of dollars by billing Medicare for treatments that were clearly nonreimbursable, and in some cases by falsifying medical records to make it seem as if its billings were justified. Through this settlement, VAC is being made to account for its misconduct.”
HHS-OIG Special Agent in Charge Scott Lampert said: “Performing and billing for surgical procedures not allowed under Medicare rules will not be tolerated. We will continue to work with our law enforcement partners to investigate these deceptive practices.”
According to the complaint filed in Manhattan federal court:
Patients with end-stage renal disease (“ESRD”) who are receiving dialysis may require vascular access surgical procedures, such as fistulagrams, where dye is injected into the patient’s vein or artery to visualize blood flow, and percutaneous transluminal angioplasties, in which wires and balloons are inserted into blood vessels that have narrowed in order to restore blood flow. However, according to applicable Medicare billing rules, fistulagrams and angioplasties are not to be performed, and are not reimbursable, unless the patient has specific and documented clinical problems, such as significant difficulty receiving dialysis properly.
During the relevant period, from July 2012 through December 2016, VAC operated at least 22 office-based surgical sites in 12 states and Washington, D.C. VAC’s patients primarily consisted of ESRD patients undergoing dialysis treatment. As a regular practice, VAC scheduled patients for fistulagrams and angioplasties three months in advance, and VAC performed fistulagrams and angioplasties on these patients as a matter of routine, regardless of whether there was a justifiable clinical reason to do so. Furthermore, VAC sometimes misrepresented the medical conditions of patients in its medical records to make it seem as if they suffered from symptoms that would warrant the procedures. VAC unlawfully billed Medicare for these procedures, which were excluded from Medicare coverage by the applicable rules.
* * *
As part of today’s settlement, VAC admitted that its centers regularly performed, and billed Medicare for, vascular surgery procedures as a prophylactic or screening measure, even though the patients presented without any documented evidence that they exhibited a need for therapies. VAC also agreed to make payments totaling at least $3.825 million and up to $18.3 million over five years, based on its ability to pay and depending on certain financial contingencies. In addition, VAC entered into an integrity agreement with HHS-OIG, through which it agreed to implement compliance measures and submit to monitoring by HHS-OIG. Simultaneous with the settlement of this action, the United States is also settling a different lawsuit against VAC filed in the United States District Court for the Eastern District of Louisiana with overlapping claims.
The allegations of fraud stated in the Complaint were first brought to the attention of federal law enforcement by a whistle-blower who filed a lawsuit under the False Claims Act.
The case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorney Jean-David Barnea is in charge of the case.
Maine Resident Sentenced to a Year in Prison for Threatening an Attack at Hangout Music FestivalRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Senior United States District Judge Callie V.S. Granade sentenced Christopher Scott Carey, 30, a resident of Portland, Maine, to imprisonment for twelve months and one day for making interstate threatening communications. As part of the sentence, the judge ordered that Carey undergo three years of supervised release after finishing his term of imprisonment, pay a $100 mandatory special assessment, receive substance abuse testing, and receive treatment for substance abuse and mental health.
According to documents filed with the court as part of his guilty plea, on March 12, 2018 Carey posted threatening communications on a Facebook group page read by other persons regarding the Hangout Music Festival, a popular annual festival held in May in Gulf Shores, Alabama. Carey posted about the festival, “I’m bringing an AR 15 so it should be good inside.” A Facebook user remarked, “Should be good as long as your friend brings the ammo in a separate bag.” Carey replied, “Extended mags bro [smiley face emoji] hope everyone’s ready [explosions emoji].” A Facebook user posted, “Delete this garbage” to which Carey replied, “But what if it’s for real. Got to get that warning out there.” Representatives of the music festival notified law enforcement officials, who took various security precautions as a result of Carey’s threats.
On May 4, 2018, the court signed a criminal complaint and issued a warrant for Carey’s arrest. On May 14, 2018, government agents arrested Carey in Portland, Maine. After being Mirandized, Carey admitted to sending the Facebook messages with the intent to communicate a true threat and with the knowledge that they would be viewed as a true threat by readers of the messages. Carey said that he recalled the mass shooting at a music festival in Las Vegas, Nevada in October 2017 and knew the similarities between what he posted and what had occurred at the Las Vegas festival.
On May 31, 2018, a federal grand jury for the Southern District of Alabama charged Carey with one count of making interstate threatening communications in violation of 18 U.S.C. § 875(c). On July 23, 2018, Carey pleaded guilty before Senior Judge Granade to the charge.
The Federal Bureau of Investigation and the Gulf Shores Police Department investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.Madera County Man Indicted for Excavating Native American Artifacts in Sierra National Forest Near the Town of North ForkRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment on October 18, 2018, against Vance Franklin Myers, 31, of Ahwannee, charging him with three counts of unauthorized excavation and removal of archeological resources, and one count of possession of stolen government property, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 26, 2015, while fighting a wild fire, fire fighters discovered an excavated site in the Willow Creek area of Box Canyon in the Sierra National Forest. Human remains and artifacts were located among large piles of sifted dirt, hand tools and a large screen sifting box.
According to the criminal complaint filed in this case, archeologists determined that the artifacts indicated long‑term use of the site between 500 A.D. and 1900. The site is believed to have been inhabited by members of the Mono Indian tribe. In August 2015, the archeological site was stabilized, rehabilitated, and the artifacts repatriated after consultation with the involved tribe.
The investigation revealed incidents of illegal excavation and looting in the same archeological site in September 2015 and again in August 2016, requiring a second site rehabilitation and reburial of the artifacts in October 2016. As the investigation progressed, Myers was identified as being involved in the excavation through photographs and statements.
According to the indictment, Myers was found to be in possession of archeological items such as stone tools, arrowheads, and beads, among other things.
“We are extremely proud of the Forest Service’s role in helping to reduce the theft and destruction of Native American remains and artifacts from national forest lands here in California,” said Randy Moore, Regional Forester for the USDA Forest Service Pacific Southwest Region. “Special Agent Michael Grate and the Sierra National Forest are to be commended for their excellent work in bringing this case to justice.”
Myers was arraigned on the indictment October 19, 2018, and entered pleas of not guilty. His next hearing is scheduled for January 28, 2019.
This case is the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Myers faces a maximum statutory penalty of two years in prison and a $100,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Leader of Drug Organization that Distributed Marijuana and Cocaine SentencedRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Tyron McFadden, of Philadelphia, Pennsylvania, was sentenced today to 276 months’ imprisonment, followed by 10 years of supervised release, after pleading guilty to conspiracy to distribute five kilograms or more of cocaine and 1,000 kilograms of marijuana; aiding and abetting the possession with intent to distribute cocaine and marijuana; and conspiracy to commit money laundering. The charges arose from defendant’s involvement as the leader of a large-scale drug trafficking organization that operated from in or about the fall of 2009 through October 2015, distributing multiple kilograms of cocaine and thousands of kilograms of marijuana in the Eastern District of Pennsylvania.
McFadden transported the drugs on commercial airlines and through the United States Postal Service. McFadden solicited the help of United States Postal employees to intercept the packages containing the drugs and deliver them directly to McFadden and his associates. McFadden continued to operate the drug organization while in custody on two separate occasions during the time frame of the conspiracy, as illustrated on recordings made from prison facilities.
McFadden and his associates also laundered over a million dollars in drug proceeds using numerous bank accounts with financial institutions with branches in both the greater Philadelphia and Los Angeles areas. Specifically, the organization structured the deposits in amounts less than $10,000 and often directed the owner of the bank account to withdraw the drug proceeds in California on the same day as the deposit was made in Philadelphia.
“McFadden and other members of this deadly drug organization pumped cocaine and marijuana into our community for years, profiting from other people’s misery,” said U.S. Attorney McSwain. “Even when he was in jail, McFadden continued to try to keep his drug operation afloat. The sentence today reflects the seriousness of his conduct and the need for leaders of drug organizations to be held accountable for their actions.”
“Tyron McFadden and his crew moved large amounts of cocaine and marijuana across the country to push here on our streets,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Even after run-ins with the law, McFadden was so determined to continue in the drug trade, he orchestrated transactions from behind bars. The FBI will continue to investigate and dismantle drug trafficking operations like this and bring those involved to justice, as we work to protect and serve our community.”
KC Man Charged in $900,000 Romance Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been charged in federal court with participating in a romance fraud scheme that bilked victims across the United States and overseas of nearly $900,000.
Ronayerin K. Ogolor, 49, a naturalized U.S. citizen from Nigeria, was charged with one count of conspiracy to commit wire fraud in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Friday, Oct. 19, 2018.
The federal criminal complaint alleges that Ogolor participated in a conspiracy since 2014 that targeted people, some of them elderly, in search of companionship or romance through online websites such as Facebook, ChristianMingle.com, or Hangout.com. Ogolor allegedly defrauded his victims of $878,489 in total.
On Friday, Oct. 19, 2018, the FBI learned that Ogolor had purchased a plane ticket to Frankfurt, Germany, the day before and would be leaving that afternoon. Agents arrested Ogolor at Kansas City International Airport before he boarded his plane. Ogolor remains in federal custody pending a detention hearing, which has not yet been scheduled.
According to an affidavit filed in support of the federal criminal complaint, the perpetrators of the romance scams created several profiles on online dating sites. Conspirators then contacted men and women throughout the United States, Canada, and Europe, with whom they cultivated a sense of affection and often romance.
Having established relationships with the victims, the affidavit says, the perpetrators of the romance scams ultimately requested money for hospital fees, travel fees, ‘customs expenses,’ ‘gold import taxes,’ or investment opportunities. Conspirators directed the victims to wire transfer or deposit money into various bank accounts, including accounts established and maintained by Ogolor. Often after the victims transferred money into the specified accounts, conspirators claimed more money was needed, ‘to release the package’ or ‘to pay customs expenses’ on money or gold.
On other occasions, the affidavit says, conspirators fraudulently obtained checks through business email compromise, and had the victims deposit the checks into their accounts and wire and deposit money into various accounts, including accounts established and maintained by Ogolor. In a business email compromise, the conspirators hack into a business email account, and then send an email from what appears to be an employee with authority to approve payments, instructing that a check be disbursed in the victim’s name and sent to the victim. By using victims to deposit the checks and distribute the money, the conspirators distanced themselves from the business email hacking and fraud.
Ogolor’s victims lived outside Missouri. The affidavit specifically refers to 13 victims who each sent tens of thousands of dollars to Ogolor. One victim (a widow in Indiana who received a friend request on Facebook) believed a co-conspirator was a widower working on an oil rig off the coast of Louisiana; she sent a total of $450,000 to Ogolor. Another victim in Texas, who believed a co-conspirator was a widower and U.S. Army general deployed in Afghanistan, lost at least $300,000. The affidavit also refers to victims in Alabama, Ohio, Washington, Arizona, Florida, Illinois, California, and Italy.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI, the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Interagency Cooperation Cornerstone of Maximizing Law Enforcement Efforts to Protect the PublicRead the Press Release
MUSKOGEE, OKLAHOMA – One year ago, the Department of Justice (“DOJ”) announced the revitalization and enhancement of Project Safe Neighborhoods, commonly referred to as “PSN.” PSN is a key component of DOJ’s violent crime reduction strategy which is a top priority of Attorney General Jeff Sessions. PSN emphasizes, among other things, the importance of collaboration between federal, state, local, and tribal law enforcement agencies to focus enforcement efforts on the most violent offenders. Today, the United States Attorney’s Office for the Eastern District of Oklahoma is reporting the results of its efforts to combat violent crime over the last year.
The Eastern District has seen a substantial increase in violent defendants indicted since October 2017, with nearly a 90% increase when compared to the previous fiscal year. During the same period there has been an increase of over 100% in the number of defendants indicted for crimes related to drug trafficking. Forty-nine defendants were indicted for violent crimes and 51 for drug offenses. Nearly 75% of all cases indicted in federal court in the Eastern District in fiscal year 2018 were for violent crime or drug offenses.
“The increase in defendants indicted is a direct reflection of the hard work by this office and law enforcement agencies – federal, state, local, and tribal – throughout the district. But it also shows the determination to utilize the prosecuting authority that offers the best alternative for a long-term solution to violent crime,” United States Attorney Brian Kuester said. “Frequently jurisdiction is appropriate in state or federal district court. Because of open communication and trusted relationships, we are all doing a better job of considering the option that best serves the needs of the community.”
Offenses included in the violent crime category are child exploitation, bank robbery, kidnapping, domestic violence, violent crime in Indian Country, and federal weapons offenses. The predominant drug offenses prosecuted in federal courts are distribution, possession with intent to distribute or trafficking and generally involve significant quantities of illegal narcotics. In the Eastern District of Oklahoma Methamphetamine continues to be the most commonly seized drug. Cocaine and Fentanyl seizures are rare but have occurred.
“I consider our work against those in the drug trade as vital to making communities safer. People in the business of selling or transporting large quantities of illegal narcotics are in an inherently dangerous business which goes hand-in-hand with guns and violence. Efforts by law enforcement agencies to combat drug trafficking is an integral part of fulfilling their duty to public safety. Investigating and prosecuting drug dealers, dangerous felons that possess weapons, predators of children, and violent offenders who commit crimes in Indian Country has the positive result of reducing the number of violent people that are free to inflict their violence on the public,” said Kuester.
The following are just a few of the cases prosecuted and defendants sentenced in the Federal District Court for the Eastern District of Oklahoma over the last twelve months:
• Billy Hershell Smith II of Tahlequah was sentenced to 293 months’ imprisonment for Sexual Exploitation of Children
• Michael Leon Johnson of Okmulgee was sentenced to 210 months’ imprisonment for Felon In Possession of Firearm & Ammunition. Johnson had three previous convictions for a violent felony, a serious drug offense, or both
• Blake Alan Miller of Muskogee was sentenced to 180 months’ imprisonment for Possession with Intent to Distribute Methamphetamine
• John Carl Berryhill of Okmulgee was sentenced to 168 months’ imprisonment for Possession of Certain Material Involving the Sexual Exploitation of Minors
• James Paul Brown of Stilwell was sentenced to 188 months’ imprisonment for Possession with Intent to Distribute Methamphetamine and Felon In Possession of Firearm
• Justimiano Perez Diaz of Stigler was sentenced to 120 months’ imprisonment for Enticement of a Minor Using the Internet
• Jason Delaney Kiplinger of Oklahoma City was sentenced to 262 months’ imprisonment for Possession with Intent to Distribute Methamphetamine
• Brian Thomas Green, Kalvin Kyle McCown, and Travis Lee Hill, all of the Longview, Texas, area, were sentenced to 25, 20, and 15 years’ imprisonment respectively for their roles in the kidnapping and killing of Kenneth Earl Ayres
• Deana Marie Oakes of Panama, Oklahoma was sentenced to 168 months imprisonment for Possession with Intent to Distribute Methamphetamine
• Michael Aaron Campbell of Muldrow was sentenced to 120 months’ imprisonment for Enticement of a Minor Using a Facility of Interstate Commerce“These are not all PSN cases, but the interagency cooperation that is at the heart of the PSN Program has very clearly taken root in all areas of the work that we do, particularly in those cases involving violent offenders. PSN promotes the interagency cooperation that is a cornerstone of maximizing our impact on our public safety priority,” Kuester added.
Huntington Man Sentenced for Federal Heroin ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man caught with heroin in April 2017 was sentenced today to 14 months, announced United States Attorney Mike Stuart. Aubrey Gardner, 25, previously pled guilty to possession with intent to distribute heroin. The Huntington Police Department and the Huntington FBI Drug Task Force conducted the investigation.
“So many poison peddlers,” said United States Attorney Mike Stuart. “But our efforts are relentless to rid West Virginia communities of drug traffickers.”
On April 29, 2017, officers conducted a traffic stop on a vehicle in Huntington. Upon searching Gardner, officers located approximately 25 grams of heroin.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Huntington Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was arrested after a drug and gun investigation earlier this year pled guilty today to multiple federal charges, announced United States Attorney Mike Stuart. Jonathan Forest Johnson, 31, entered guilty pleas to distribution of methamphetamine and possession of firearms in furtherance of a drug trafficking crime before United States District Judge Robert C. Chambers. Stuart commended the investigative efforts of the Huntington FBI Safe Streets Task Force and the Cabell County Sheriff’s Department.
“Another violent drug dealer off the streets of Huntington,” said United States Attorney Mike Stuart. “Convicted felon. Meth. Heroin. Guns. Johnson’s case reads like so many others and will share the same ending – federal prison.”
On January 29, 2018, a confidential informant contacted Johnson to arrange the purchase of methamphetamine. After negotiating the transaction, Johnson directed the informant to meet him in the parking lot of a department store located in the 3000 block of U.S. Route 60 in Huntington. The informant met with Johnson at that location and Johnson sold the informant 15 grams of crystal methamphetamine in exchange for $330.
On February 2, 2018, investigators executed a search warrant at Johnson’s residence located at 3405 5th Avenue in Huntington. During the search, investigators seized a number of items including 17 grams of heroin, 4.5 grams of meth, two 9mm pistols, a .40 caliber pistol, a .22 caliber rifle, a 12 gauge shotgun, and a 16 gauge shotgun. Johnson and Casey Marie Porter were arrested during the search and Johnson admitted that he intended to sell the heroin and meth found in his residence. Johnson further admitted that he possessed the firearms to serve as protection based on his involvement in distributing heroin and meth.
During the plea hearing, Johnson admitted to selling an additional 15 grams of meth to an informant on January 31, 2018, and that he was prohibited from possessing the firearms seized based on multiple prior felony convictions in the Cabell County Circuit Court for First Degree Robbery and Malicious Wounding. Johnson also admitted that he and Porter had been selling heroin and meth for the two-month period prior to the February 2 search of his residence.
Johnson faces at least 5 years and up to life in federal prison when he is sentenced on January 28, 2019. Porter pleaded guilty on September 5, 2018, to aiding and abetting Johnson in a meth distribution and is scheduled to be sentenced on January 7, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Honduran Man Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Harbin Omar Maldonado-Fuentes, age 47, and a citizen of Honduras, was sentenced today to time served (30 days in jail) for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Maldonado-Fuentes was arrested by Border Patrol in Arizona after he was caught entering the United States from Mexico without inspection on September 17, 2004. Maldonado-Fuentes was removed from the United States to Honduras on October 20, 2004. On September 22, 2018, he was arrested by an ICE Officer in Walton, Delaware County, New York. A fingerprint check of Maldonado-Fuentes resulted in the discovery of the prior removal. Maldonado-Fuentes admitted that he returned to the United States without permission following the 2004 removal.
Following the sentencing, Maldonado-Fuentes was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
High-Ranking North Carolina Bloods Gang Leader Sentenced to 19 Years for Racketeering ConspiracyRead the Press Release
A high-ranking North Carolina leader of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, was sentenced today to 19 years in prison for racketeering conspiracy. Also sentenced today were two other members of the Bloods gang. Sixty-seven defendants have now either pleaded guilty or have been convicted at trial.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John A. Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Cynthia Gilmore, aka Cynthia Young and Lady Bynt, 43, of Raleigh, North Carolina, was sentenced by Chief Judge Frank D. Whitney to serve 228 months in prison. Gilmore had been convicted, together with UBN Godfathers Pedro Gutierrez and James Baxton, by a federal jury sitting in Charlotte on May 17, following a two-week trial. In addition, two other Bloods members were also sentenced today. Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, was sentenced by Judge Whitney to serve 43 months in prison. Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, was sentenced by Judge Whitney to serve 70 months in prison.
“As a trusted leader of the Nine Trey Gangsters, Cynthia Gilmore played an integral role in the gang’s violent mission by trafficking narcotics, robbing other drug dealers, and acting as a communications conduit for Pedro Gutierrez, the gang’s incarcerated leader who had previously ordered a gang war,” said Assistant Attorney General Benczkowski. “Now totaling 67 defendants adjudicated guilty, the Department of Justice’s prosecution of the Nine Trey Gangsters continues to disrupt and weaken this violent prison and street gang, and serves as a testament to what cooperation between federal, state, and local law enforcement can accomplish.”
“Cynthia Gilmore was a gang member who had risen to the leadership ranks within the Nine Trey Gangsters, a powerful set of the Bloods in North Carolina, said U.S. Attorney Murray. “As a gang member, Gilmore engaged in racketeering criminal acts, including robbery and drug trafficking, to support the gang and pay her dues. As a trusted gang leader, Gilmore had direct access to the gang’s highest leadership, including to the Bloods’ Godfather, Pedro Gutierrez, with whom she had face-to-face meetings while he was incarcerated in New York. As the Godfather’s messenger, Gilmore assisted Gutierrez in maintaining control over the gang, and made certain that other gang members knew, understood, and executed Gutierrez’s orders. With another Bloods leader and two more gang members put behind bars, my office continues our work to dismantle criminal enterprises and to protect the people of the Western District from violent street gangs.”
In February 2017, President Donald Trump directed the Department of Justice “to reduce crime in America,” and Attorney General Jeff Sessions has made violent crime reduction and eliminating gangs a priority during his tenure. In June 2018, the Attorney General announced the largest increase in Assistant U.S. Attorneys—311 new prosecutors, including eight in North Carolina—to combat violent crime and carry out other Department priorities.
Additionally, Attorney General Sessions last year announced a reinvigorated Project Safe Neighborhoods program aimed at reducing the rising tide of violent crime in America. The U.S. Attorney’s Office for the Western District of North Carolina is an active participant in PSN.
Deputy Attorney General Rod Rosenstein mentioned many of these announcements and more when he delivered remarks in August to the 17th Annual Gangs Across the Carolinas Conference, a conference which Attorney General Sessions delivered remarks to in August 2017.
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and “Godfather.”
Evidence at trial established that Gilmore was a high-ranking leader of the Nine Trey Gangsters in North Carolina with the rank of “Low,” and that she was involved in drug trafficking and the robbery of other drug dealers. Evidence also established that Gilmore traveled regularly between North Carolina and New York State, where she met with Pedro Gutierrez, the highest ranking leader of the United Blood Nation, who was incarcerated at the time. Evidence further established that Gilmore assisted Gutierrez’s control of the Bloods organization in North Carolina by sending him dues and by passing along communications from Gutierrez to other gang leaders and members.
In all, 67 defendants have been adjudicated guilty in this case, including the three defendants who were found guilty at trial; 64 defendants have pleaded guilty in this investigation. Twelve defendants in high-ranking leadership positions have been convicted:
- Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine. Atkinson was sentenced on Aug. 21 to a term of 208 months in prison;
- James Baxton, aka Frank White and Grown, 44, of New York City, New York, was convicted at trial on May 17. Trial evidence established that Baxton was a “Worldwide High” of the Nine Trey Gangsters and that, while incarcerated in the New York State Department of Corrections, Baxton trafficked heroin within the prison system and engaged in wire fraud by threatening the relatives of other incarcerated inmates. Baxton was sentenced on Sept. 4 to a term of 240 months in prison, to be served federally after completing a term in New York State prison;
- Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Coker was also recorded discussing a potential murder of a rival gang member. Coker was sentenced on June 18, to a term of 140 months in prison;
- Pedro Gutierrez, aka Magoo, Light, and Inferno, of New York City, New York, was convicted at trial on May 17. Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011, directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months. Gutierrez was sentenced on Sept. 4 to a term of 240 months in prison, to be served consecutively to the remainder of a New York State sentence for murder;
- Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of her plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton. Harrison was sentenced on June 18, to a term of 32 months in prison;
- Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low.” Haynes was sentenced on Aug. 15, to a term of 64 months in prison;
- Bobby Earl Hines, aka Swahili Red, 35, of North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Hines admitted to holding the leadership rank of “High”;
- Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards. Lattibeaudiere was sentenced on June 19, to serve 56 months in prison;
- MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and conspiracy to possess with intent to distribute heroin, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low;”
- Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN. Rosero was sentenced on July 31, to 87 months in prison, to be served federally after completing a sentence in New York State;
- Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.” Porsha Rosero was sentenced on July 31, to serve 21 months in prison; and
- Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.” Wilson was sentenced on July 30, to serve 82 months in prison.
The following 34 defendants have also pleaded guilty and have been sentenced in this investigation:
- Sherman Devante Addison, aka Ace, 24, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy. Addison was sentenced on Aug. 15, to serve 33 months in prison;
- Freddrec Deandre Banks, aka Drec and Banga, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Banks was sentenced on Aug. 14, to serve 33 months in prison;
- Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy. Blakeney was sentenced on July 31, to serve 18 months in prison;
- Shakira Monique Campbell, aka Lady Rage, 24, of Charlotte, North Carolina, pleaded guilty to possession of cocaine. Campbell was sentenced to serve eight months in prison;
- Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking. Covington was sentenced to serve 87 months in prison
- Alex Levi Cox, aka Quick, 28, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Cox was sentenced on Aug. 21, to serve 17 months in prison;
- Richard Diaz, aka Damu, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Diaz was sentenced on Aug. 15, to serve 33 months in prison;
- Christopher Dentre Hamrick, aka Red Dot, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Hamrick was sentenced on May 30, to serve 64 months in prison;
- Lavaughn Antonio Hanton, aka Killem and Billy-D, 35, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hanton was sentenced on Aug. 21, to 216 months in prison;
- Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Harrison was sentenced on June 25, to serve 27 months in prison;
- Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy. Hicks was sentenced on May 31, to serve 24 months in prison;
- Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Hopper was sentenced on June 20, to serve 27 months in prison;
- Donl Lequintin Hunsucker, aka Remy, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hunsucker was sentenced on Aug. 15, to serve 52 months in prison;
- Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Jackson was sentenced on Aug. 21, to serve 27 months in prison;
- Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy. Johnsom was sentenced on May 30, to serve 57 months in prison;
- Joe Tarpeh Johnson, aka JR, Big Pusha and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Johnson was sentenced on April 28, to serve 31 months in prison;
- Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Johnson was sentenced on July 9, to serve 18 months in prison;
- Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. King was sentenced on July 30, to serve 25 months in prison;
- David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Lowe was sentenced on May 29, to serve 24 months in prison;
- Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Lytle was sentenced on Aug. 22, to serve 46 months in prison;
- Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy. Manning was sentenced on July 31, to serve 21 months in prison;
- Travis McClain, aka Fridaay Daa Thuurteenth, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McClain was sentenced on Aug. 14, to serve 27 months in prison;
- Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McIntosh was sentenced on July 30, to serve 18 months in prison;
- D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McNeil was sentenced on June 20, to serve 33 months in prison;
- Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy. Omotosho was sentenced on May 29, to serve 33 months in prison;
- James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Pegues was sentenced on May 29, to serve 33 months in prison;
- Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy. Peterkin was sentenced on June 25, to serve 21 months in prison;
- Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Potts was sentenced on May 29, to serve 30 months in prison;
- Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Sattar was sentenced on Aug. 22, to serve 33 months in prison;
- Anthony Bernard Smith, aka Redd Lion, 25, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy. Smith was sentenced on April 23, to serve 44 months in prison;
- Cedric Surratt, aka Hollywood, 5-Star and Lingo, 30, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Surratt was sentenced on June 20, to serve 28 months in prison;
- Peatrez Lamar Teaste, aka P-Wheezy, 25, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Teaste was sentenced on Aug. 21, to serve 109 months in prison;
- Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Turner was sentenced on April 23, to serve 35 months in prison; and
- Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Watkins was sentenced on July 30, to serve 27 months in prison.
The following 19 defendants have also pleaded guilty and are awaiting sentencing in this case:
- Aaron Demitri Alexander, aka A Dawg, 25, of Charlotte, North Carolina, pleaded guilty on July 9, to racketeering conspiracy;
- Antarious Quashard Byers, aka Bang, 25, of Shelby, North Carolina, pleaded guilty on Aug. 28, to racketeering conspiracy;
- Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession with intent to distribute cocaine;
- Marquel Michael Cunningham, aka Omega, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- James Walter Dowdle, aka Staxx, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and use of a firearm in furtherance of a crime of violence;
- John Paul Durant, aka JP, Glock and Gudda, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Shamon Movair Goins, aka Rugie, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Jasmin Reikeem Hicks, aka Rude, 28, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
- Wesley Javon Howze, aka Drama, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Juan Cruz Leon, aka Jefe, 22, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Terry Lavon Maddox, aka Turbo, 27, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and possession with intent to distribute cocaine base;
- Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and two counts of possession with intent to distribute cocaine base;
- Christopher Lashon Miller, aka Dro, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Johnny Thomas Mitchell, aka Joker, 38, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Christopher O’Brien Moore, aka Ratchet, 23, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Kenneth Marquise Ruff, aka Red Hot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty on Jan. 5, to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
- Jhad Elijah Thorbourne, aka Flight, 24, of Charlotte, North Carolina, pleaded guilty on July 19, to racketeering conspiracy; and
- Patrick Wray, aka Ike and Murda, 30, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Fresno Man Sentenced to over 12 Years in Prison for Child Pornography OffenseRead the Press Release
FRESNO, Calif. — Chief U.S. District Judge Lawrence J. O’Neill sentenced Stefan Ramirez, 34, of Fresno, today to 12 years and seven months in prison for receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
The prison sentence imposed will be followed by five years of supervised release, during which Ramirez will be required to register as a sex offender, and his access to minors, computers, and the internet will be restricted.
“Consumers and distributors of child pornography often try to rationalize their actions as passive behavior,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “It is most certainly not passive. Children are physically abused during the production of child pornography. Not only do consumers of child pornography seek gratification from vicariously participating in that abhorrent activity, but they also often make those images available to others through file sharing. The FBI and our partner agencies work to ensure consumers and distributors of child pornography understand their behavior is utterly contrary to the values of American society and will be met with rigorous investigation and lengthy prison sentences.”
According to a plea agreement and sentencing documents, Ramirez admitted that he used a file-sharing program to obtain and make available thousands of images of children being sexually abused. Some of the depictions were of infants and toddlers, and some included sadistic conduct and violence. Judge O’Neill awarded restitution to seven victims whose images Ramirez obtained for damages that they established that Ramirez caused.
This case was the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Four South Florida Residents Convicted and Sentenced for Roles in Narcotics Importation and Distribution RingRead the Press Release
On Friday, October 19, 2018, the last of four defendants was sentenced for his role in a narcotics importation and distribution ring, operating in Miami-Dade and Osceola Counties, involving an analogue of the powerful opioid fentanyl, as well as n-ethylpentalone.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Christopher Cave, Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS-OIG), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Diane J. Sabatino, Director, Field Operations, Customs and Border Protection (CBP), Miami Field Office, made the announcement.
According to court records, Johan Stephen Paniagua, 26, of Miami-Dade County, Saul Rivera, a U.S. Postal Service employee, 33, of Miami-Dade County, Ernest Lee Warren, 40, of Osceola County, and Jacqueline Santiago, a U.S. Postal Service employee, 30, of Miami-Dade County, pled guilty for their involvement with a drug trafficking organization that used the United States mail system to import controlled substance analogues into south Florida.
Over the course of the year-long investigation, law enforcement determined that Paniagua ordered multiple kilograms of fentanyl (methoxyacetylfentanyl) and Pentylone (n-ethylpentalone) analogues using the dark web. These substances were shipped to the United States from China. Paniagua then enlisted Rivera, a mail carrier, to divert the parcels from the mail stream and distribute them to Paniagua and other members of the drug trafficking organization, including Warren, who served as a drug mule. Santiago, also a mail carrier, assisted by diverting parcels on days that Rivera was not at work.
“The opioid epidemic is a national health emergency that will not be ignored,” said U.S. Attorney Fajardo Orshan. “The U.S. Attorney’s Office and our law enforcement partners remain committed to the prosecution of individuals who illegally import and distribute prescription painkillers, including synthetic opioids such as fentanyl, into our local South Florida communities. The systemic abuse of opioids poses a grave danger to the public’s safety. Concerned citizens are encouraged to report suspected traffickers of controlled substances (including heroin, fentanyl and other opioids) directly to law enforcement.”
"This case signifies the importance of our efforts to combat the importation and distribution of fentanyl within our communities who are being negatively influenced by a steady influx of this illegal and deadly narcotic," said Special Agent in Charge for HSI Miami Mark Selby. "HSI and its law enforcement partners are committed to increasing our enforcement by targeting dark web sales of opioids, following money trails and leveraging our international, federal, state and local law enforcement partnerships to dismantle the opioid smuggling rings and stop this endemic crisis from spreading any further."
“These federal convictions and sentences reflect the hard work of our special agents who vigorously investigated this narcotics scheme,” said USPS-OIG Special Agent in Charge Christopher Cave. “The USPS-OIG, along with our law enforcement partners, will continue to aggressively pursue these investigations. These crimes will not be tolerated and our agency will remain vigilant.”
“The Postal Inspection Service will continue to work with our partners, to stop the flow of dangerous drugs onto the streets of our community,” said Miami Division Postal Inspector in Charge Antonio J. Gomez. “Enforcing the laws that defend the nation's mail system from illegal use, are at the core of our mission.”
"Fentanyl, originally prescribed to combat extreme pain associated with cancer and end-of-life palliative care, has become one of the deadliest drugs on the street,” stated CBP Port Director Christopher D. Maston, Miami International Airport. “It is estimated by the Centers for Disease Control (CDC) that fentanyl overdoses are on the rise and its victims know no age, demographic, or geographical region. The men and women of CBP are steadfast in their commitment to keeping these opioids out of our communities and out of the hands of our children".
Paniagua, the final defendant, was sentenced on October 19, 2018. He pled guilty to conspiracy to import a controlled substance analogue on April 16, 2018 (Case No. 17cr20880). Judge Scola sentenced Paniagua to 80 months in prison.
Rivera and Warren pled guilty to conspiracy to possess with intent to distribute a controlled substance analogue on January 19, 2018 (Case No. 17cr20637). On April 30, 2018, U.S. District Judge Robert N. Scola sentenced Rivera and Warren to 48 months and 24 months in prison, respectively.
Santiago pled guilty to mail theft by a postal employee on December 28, 2017 (17cr20791). On February 28, 2018, U.S. District Judge Jose E. Martinez sentenced Santiago to probation.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies who, cooperatively, target the region’s drug-trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy, which sponsors a variety of initiatives focused on the nation’s illicit drug trafficking threats.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI, USPS-OIG, USPIS, and CBP. This case was prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
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 on http://pacer.flsd.uscourts.gov.
Four Pittsburgh Residents Charged with Conspiracy to Commit Health Care FraudRead the Press Release
PITTSBURGH, Pa. – Four residents of Pittsburgh, Pennsylvania, were charged in federal court with conspiracy to defraud the Pennsylvania Medicaid program, United States Attorney Scott W. Brady announced today.
Travis Moriarty, 37, Tiffhany Covington, 41, Autumn Brown, 31, and Brenda Lowry Horton, 48, all of Pittsburgh, Pennsylvania, were charged in separate but related criminal Informations with one count of conspiracy to commit health care fraud.
According to the Informations filed in their respective cases, the defendants 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. In general, as alleged, PAS care involved the provision of non-medical assistance by company employees ("attendants") to consumers in their homes, including, for example, meal preparation, bathing, dressing, and light cleaning. Service coordination entailed coordinating and monitoring services on an ongoing basis, including PAS care, to ensure that consumers were receiving their authorized care pursuant to the relevant Medicaid program. Likewise, non-medical transportation benefits covered personnel and mileage costs for drivers to transport consumers, as well as the purchase of transit passes, tickets, or tokens to secure other means of transportation. As alleged, EPS provided back-office and staffing support for MCI, ADL, and CCI. Notwithstanding the formal corporate separation of these entities, the Informations allege that the finances of each were commingled at the direction of the owners of the entities.
According to the Informations, 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 Informations allege that Moriarty, Covington, Horton, and Brown, along with numerous other individuals, 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 related to PAS, service coordination, and non-medical transportation services that were never provided to the consumers identified on the claims.
Among other things, the Informations allege that various office employees of MCI, ADL, and EPS, including Moriarty, Covington, and Horton, would fabricate timesheets to reflect the provision of in-home PAS care they provided to consumers but that, in fact, never occurred. In addition, at the direction of the owner of MCI, certain in-house employees of MCI, ADL, and EPS, including Moriarty, Covington, and Horton, stopped using their own names as the attendant on timesheets and instead used the names of "ghost employees." As alleged, some of the "ghost employees," including Brown, allowed their names to be used in this manner in exchange for a portion of the resulting salary payments derived from Medicaid disbursements. Other "ghost employees" never received kickbacks and otherwise had no knowledge of the fact of their fraudulent employment.
According to the Informations, other attendants employed by MCI 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, Medicaid claims were submitted for PAS care that purportedly occurred while consumers were hospitalized, incarcerated, or deceased. The Informations further allege that co-conspirators, including Moriarty, Covington, Brown, and Horton, paid kickbacks to consumers in exchange for the consumers’ agreement to participate in the submission of fraudulent timesheets in support of Medicaid claims.
The Informations further allege that the owner of MCI directed employees, including Moriarty and Covington, to use 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. Indeed, the Informations allege that many consumers had no knowledge that their personally identifiable information was being used to bill Medicaid for benefits that the consumers had not exhausted.
According to the Informations, as part of the conspiracy, the owner of MCI and others, directed employees, including Moriarty and Covington, to fabricate documentation during the course of state audits of MCI, ADL, and CCI—for example, PAS timesheets, service coordination notes, criminal history checks for attendants, child-abuse clearance forms for attendants, and certain consumer affidavits—as a means to conceal the nature and scope of the fraud and so that it could continue.
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.
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.
Former U.S. Navy Sailor Sentenced to Prison for Credit Card Fraud and Identity TheftRead the Press Release
FRESNO, Calif. — Jarrod M. Langford, 27, of Orlando, Florida, was sentenced today by U.S. District Judge Dale A. Drozd to three years and six months in prison for conspiracy to commit credit card fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Langford, while serving with the United States Navy in Lemoore, California, conspired with others to fraudulently acquire and use credit card account numbers to purchase and resell over the internet voucher codes redeemable for consumer items such as wristwatches, jewelry, computer software applications, and electronic devices. Langford used various methods to fraudulently acquire other peoples’ credit card information, including purchasing the information on the internet. In September 2012, Langford fraudulently possessed more than 2,500 records of credit card account numbers and the associated account holders’ personal identifying information, such as names, addresses, telephone numbers, and email addresses.
To hide his actual location and conceal his involvement in these fraudulent activities, Langford installed an application on his computers that established a virtual private network (VPN) that allowed him to conduct anonymous encrypted internet sessions and gave the appearance that he was located outside of California. In his plea agreement, Langford admitted to fraudulently purchasing approximately $340,000 of consumer products and unauthorized voucher codes redeemable for such items.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher D. Baker prosecuted the case.
Former U.S. Army Employee at Picatinny Arsenal Admits Receiving Bribes and Directing KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man admitted today that he abused his position as an employee of the U.S. Army Contracting Command New Jersey (ACC-NJ) in connection with his role in two conspiracies in construction projects at Picatinny Arsenal (PICA) and at Joint Base McGuire-Dix Lakehurst (Ft. Dix), U.S. Attorney Craig Carpenito announced.
Kevin Leondi, 57, of Stroudsberg, Pennsylvania, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count One, conspiring to defraud the United States by soliciting and accepting bribes, and Count Two, conspiring to steer kickbacks from one conspirator to another.
According to documents filed in this case and statements made in court:
Leondi represented the Army in renovation projects at PICA and Ft. Dix. A company referred to in the indictment as “Construction Company No. 1” served as a Job Order Contractor, also known as a “prime contractor,” for construction projects at PICA and Fort Dix. James Conway was employed by Construction Company No. 1 as a regional project manager of large-scale projects at PICA and Ft. Dix. George Grassie ran a construction, excavating and landscaping business in Pennsylvania that did subcontracting work at the bases.
From December 2010 through August 2015, Leondi solicited and accepted more than $150,000 in bribes from Grassie and others in return for task orders and other favorable assistance at the bases, and for not denying them future work. Leondi and the conspirators would disguise the bribes in the form of facially legitimate transactions, with Leondi buying vehicles and equipment from the conspirators at cut-rate prices or selling them equipment at inflated prices. In another instance, Leondi had Grassie absorb the costs that another contractor incurred in renovating property that Leondi owned in East Stroudsburg, Pennsylvania.
Leondi also admitted that he conspired to steer at least $48,000 in corporate kickbacks from Grassie to Conway to improperly obtain and reward Conway for his giving subcontracts and other favorable assistance to Grassie relating to Conway’s employer’s contracts with the federal government at PICA and Ft. Dix. The kickbacks included cash payments to help Conway pay his mortgage as well as free construction work at Conway’s home in Pennsylvania.
Grassie pleaded guilty in February 2017 to one count of conspiracy and one count of providing unlawful kickbacks for his role in the bribery and kickback conspiracies. Conway pleaded guilty to accepting unlawful kickbacks and a wire fraud charge involving other fraudulent conduct in August 2016. Both defendants are awaiting sentencing.
Each conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 30, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz and Senior Trial Counsel Mark J. McCarren, of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Thomas Calcagni Esq. and Peter Katz Esq., Newark
Former Texas Company CFO Pleads Guilty to Employment Tax FraudRead the Press Release
The former Chief Financial Officer of an Austin, Texas based company pleaded guilty today to willfully failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, from 2010 to 2016, John Herzer was the CFO of AXO Staff Leasing (AXO), a professional employer organization. Herzer handled all of the company’s finances and had final authority over which creditors to pay and when to pay them. Herzer was also responsible for collecting and paying to the IRS taxes withheld from AXO’s employees’ wages. Despite this obligation, Herzer did not pay to the IRS AXO’s employment tax withholdings and instead used more than $4.9 million of those funds for his own benefit including paying personal expenses and transferring millions of dollars to his own bank accounts. In total, Herzer’s fraudulent conduct caused a tax loss to the IRS of more than $13 million.
A sentencing date has not yet been scheduled. Herzer faces a statutory maximum sentence of five years imprisonment, as well as a term of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Robert Kemins and David Zisserson, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Western District of Texas (Austin Division) for their substantial assistance.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former South Florida Attorney and Stock Promoter Charged with Conspiracy to Commit Securities Fraud in Relation to Pump and Dump Stock Manipulation SchemeRead the Press Release
A former South Florida attorney and a stock promoter have been charged in connection with a $1 million pump and dump securities fraud scheme involving the shares of Valentine Beauty, Inc. (“VLBI”).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge of the FBI’s Miami Field Office, made the announcement.
Mark E. Fisher, 53, of Boca Raton, Florida, and Joseph F. Capuozzo, 57, of Davie, Florida, were charged by a criminal information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 18-120823-CR-KMW). Each defendant faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
Previously, Eddy Ubaldo Marin, 56, of Ft. Lauderdale, Florida, and Shane R. Spierdowis, 27, formerly of Boca Raton, were charged with securities fraud offenses in connection with the same VLBI scheme. Marin pled guilty and was sentenced on September 5, 2018, to 210 months in prison by U.S. District Judge Darrin P. Gayles (Case No. 18-CR-20354-DPG). Spierdowis also pled guilty and is scheduled to be sentenced tomorrow by U.S. District Judge Ursala Ungaro.
According to court documents, including allegations contained in the criminal information, VLBI was a beauty products supply company with operations in Sunrise, Florida, that marketed its products on television infomercials and elsewhere. Shares of VLBI stock were publicly traded and quoted over the counter on OTC Link. In approximately November 2013, Marin and other accomplices arranged to secretly obtain a controlling interest in VLBI stock by issuing shares to certain third parties, including Green Tree Capital, Inc., a company controlled by Marin and Capuozzo, based in Ft. Lauderdale, Florida.
Fisher, formerly a practicing lawer licensed to practice in Florida and New York, was a securities lawyer based in Boca Raton who allegedly became involved with the manipulation of VLBI shares at the invitation of Marin. Fisher allegedly executed various false and fraudlent documents to facilitate the scheme, including certain legal opinion letters that falsely indicated that shares controlled by Marin and other conspirators, were not in fact owned or controlled by “affiliates” of the companies. Such letters allowed shares of VLBI to be falsely classified as “free trading” and thus sold to the public, when in relatiy that were restricted. In March and April, 2014, Marin, Fisher, Capuozzo, Spierdowis, and other conspirators arranged to transfer a substantial number of shares into brokerage accounts in the name of fictitious entities, but in reality controlled by the conspirators. In addition, according to court documents, Fisher, Capuozzo and other conspirators knew that Marin was a convicted felon and attempted to conceal his role in the scheme by keeping his name off of corporate documents. To facilitate the concealment of Marin’s role, Capuozzo became the listed owner of an entity that held Marin’s VLBI shares and traded the shares at the direction of Marin. Capuozzo also served as the nominee Chief Exeuctive Officer of VLBI, while acting at the direction of Marin and the conspirators.
Thereafter, beginning in approximately May 2014 and continuing through in or around September 2014, Marin, Fisher, Capuozzo, Spierdowis, and others arranged for VLBI to issue rosy press releases, while also using internet marketing and penny stock newsletters to tout VLBI stock. These efforts were intended to artificially increase the trading volume and price of VLBI shares, so that Marin, Fisher, Capuozzo, Spierdowis and their co-conspirators could secretly sell shares at a profit. During the conspiracy period, the conspirators sold approximately $1 million worth of VLBI shares to the investing public.
In approximately June 2014, Marin began a term of federal imprisonment due to a different federal offense, and was ultimately incarcerated at FCI Miami. While Marin was at FCI Miami, Fisher, Capuozzo, Spierdowis, and others continued the stock manipulation scheme, while keeping a larger portion of the trading profits for themselves. The conspirators continued to sell shares of VLBI, while continuing the same pattern of issuing press releases and engaging in coordinated sales of shares, until approximately April 26, 2016, when trading in VLBI shares was suspended by the U.S. Securities and Exchange Commission (SEC).
Today, a parallel civil enforcement action was filed by the SEC in the Southern District of Florida against Fisher and Capuozzo in connection with the VLBI pump and dump manipulation scheme. Prevoiusly, the SEC filed parallel civil enforcement actions against Marin and Spierdowis.
A criminal information is a charging instrument containing allegations. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy, and Assistant U.S. Attorney Alison Lehr is handling asset forfeiture related to the matter.
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.
Former Sacramento Resident Sentenced to Prison for Failure to Register as Sex OffenderRead the Press Release
SACRAMENTO, Calif. — Zendell Despenza, 34, was sentenced by U.S. District Judge Kimberly J. Mueller to 10 months in prison, followed by five years of supervised release, for failing to register as a sex offender, U.S. Attorney McGregor W. Scott announced.
According to court documents, in June 2014, Despenza moved from Nevada to Sacramento and knowingly failed to register as a sex offender as was required by the Sex Offender Registration and Notification Act (SORNA) based on his conviction for attempted sexual assault in the state of Nevada. Despenza lived and worked in the Eastern District of California for approximately two years, and on two separate occasions during that two-year period submitted a sex offender registration form in Nevada that falsely indicated he was unemployed and residing at addresses in Las Vegas.
This case was the product of an investigation by the U.S. Marshals Service and the Sacramento County Sheriff’s Sex Assault Felony Enforcement (SAFE) Team. The SAFE Team is a multi-agency task force operating in Northern California that monitors sex offenders and conducts investigations regarding sex offender registration violations. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
Former High School Teacher Pleads Guilty to “Celebgate” HackingRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to unauthorized access to a protected computer and aggravated identity theft.
According to court documents, Christopher Brannan, 31, a former teacher at Lee-Davis High School, intentionally accessed without authorization internet and email accounts, including Apple iCloud, Yahoo!, and Facebook accounts, and thereby obtained complete iCloud backups, photographs, and other private information belonging to more than 200 victims, including both celebrities and noncelebrities. He hacked email accounts by answering security questions that he could easily research by reviewing victims’ Facebook accounts. Brannan also gained access to victims’ accounts by using phishing email accounts to send fraudulent email addresses designed to look like legitimate security accounts from Apple, misrepresenting to the victims that the emails had come from Apple in order to obtain username and password information for the victims’ internet accounts. Because of the victims’ belief that the email had come from Apple, the victims would provide their usernames and passwords. Brannan would then use the fraudulently obtained usernames and passwords to access the victims’ email accounts, search the content of the victims’ email accounts, and obtain personal information, such as sensitive and private photographs and videos, including nude photographs. Brannan would use software such as Elcomsoft to download full iCloud accounts, which he then perused for personal information. Authorities identified Brannan as a suspect during a Los Angeles-based FBI investigation into hacked iCloud accounts commonly known as “Celebgate.”
Brannan pleaded guilty to unauthorized access to a protected computer and aggravated identity theft. He faces a mandatory minimum term of two years in prison for the aggravated identity theft charge, which shall run consecutively to any sentence imposed for the offense of unauthorized access to a protected computer. The total maximum possible penalty is seven years in prison. The parties have made a recommendation, which is not binding on the court, that Brannan be imprisoned for 34 months when he is sentenced on Jan. 25, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This matter stems from an investigation conducted by the FBI in Los Angeles into the leaks of photographs of numerous female celebrities in September 2014. The U.S. Attorney’s Office for the Central District of California, which is leading the prosecution, filed charges against Brannan in April, and the parties later agreed to transfer the case to the Eastern District of Virginia for further prosecution.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea. Assistant U.S. Attorneys Brian R. Hood of the Eastern District of Virginia and Ryan White of the Central District of California are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-118.
Florida Man Facing Federal Sexual Assault Charge Arising Out of In-Flight Incident While Traveling from Texas to New MexicoRead the Press Release
ALBUQUERQUE – Bruce Michael Alexander, 49, of Tampa, Fla., made his initial appearance this morning in federal court in Albuquerque, N.M., on a criminal complaint charging him with abusive sexual contact. The charge against Alexander arose out of an in-flight incident while traveling on a Southwest Airlines aircraft from Houston, Tex., to Albuquerque, on Oct. 21, 2018. Alexander remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for tomorrow.
The FBI arrested Alexander on an abusive sexual contact charge at the Albuquerque International Sunport on Oct. 21, 2018. According to the criminal complaint in which Alexander is charged, Alexander allegedly had sexual contact with a female passenger while they were on a flight from Houston to Albuquerque. The criminal complaint alleges that the sexual contact consisted of groping the victim, who was seated in the row in front of Alexander, leading the victim to request that flight attendants move her to a different seat.
A conviction on the abusive sexual contact charge carries a maximum penalty of two years of imprisonment and a $250,000 fine. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Jack Burkhead.
Alexander ComplaintFentanyl and Methamphetamine Dealer Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A Belizian national was sentenced today to 11 years in prison for conspiracy to distribute controlled substances, including nearly two pounds of Fentanyl.
According to court documents, Fiorman Erick Gillett, 48, who was living illegally in the United States, conspired with others to ship about three pounds of 100 percent pure methamphetamine and almost 2 pounds of pure Fentanyl to Virginia from Texas. The amount of Fentanyl Gillet shipped to Virginia was enough for a lethal dose for hundreds of thousands of people.
As part of his plea agreement, Gillett will be deported pending the completion of his prison sentence.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Kevin M. Comstock prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-90.
Federal Prison Sentence for Man Who Helped Sell HeroinRead the Press Release
A man who worked with others to sell heroin throughout the Cedar Rapids area was sentenced on October 17, 2018, to more than five years in federal prison.
Eddy Watt, age 28, from Cedar Rapids, Iowa, received the prison term after a June 25, 2018, guilty plea to two separate counts of aiding and abetting the distribution of heroin.
According to information disclosed during the sentencing hearing, Watt was involved with a group of heroin dealers from at least November 2017 through April 2018. During that time, the group had at least eighty customers and made, on average, twenty sales of heroin per day. During the sentencing hearing, the judge described the group’s “fairly sophisticated” operation, including taking turns answering a single phone that heroin customers called to order heroin and delivering the heroin in groups of two. The group changed phone numbers on multiple occasions to avoid detection by law enforcement. The “stash house” where the group stored heroin was located within 1,000 feet of an elementary school. Two additional members of this group, Rolando Brown and Garland Lightfoot, have pled guilty and are awaiting sentencing.
Watt was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Watt was sentenced to 64 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Watt is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-43. The case file number for Rolando Brown and Garland Lightfoot is 18-CR-42.
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Federal Jury Convicts Simpsonville Man of Possessing over 500 Grams or More of Methamphetamine with the Intent to Distribute - Faces Life Sentence in Federal PrisonRead the Press Release
Greenville, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Larry Anthony Ladson, Jr., 29 years old, of Simpsonville, South Carolina, was convicted of possessing 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine with the intent to distribute after a two-day jury trial in Spartanburg. The 12-person jury unanimously found Ladson guilty following the conclusion of the trial. Given his prior criminal history, Ladson likely faces life imprisonment.
The evidence presented at trial showed that Ladson was hiding in a bathtub when officers with the Fountain Inn Police Department were performing a protective sweep of the residence located in Simpsonville, South Carolina. Law enforcement originally arrived on scene after receiving a report of a domestic incident involving a firearm. After initially detaining three other individuals who were connected with the location, officers were clearing the residence when they discovered Ladson fully clothed in the bathtub with the lights off at approximately 2:45 p.m. In the adjacent bedroom, law enforcement found Ladson’s driver’s license along with other identifying documents, in addition to a digital scale and clear plastic baggies used for drug packaging in plain view. Upon obtaining a search warrant, a further search of the bedroom revealed over 1,000 grams of methamphetamine packaged in 19 separate bags, which were concealed in a backpack and hidden under layers of Ladson’s clothes in his closet. The majority of the bags contained approximately 56 grams of the clear, crystal substance and were packaged for distribution in two-ounce quantities.
At the time of the incident, Ladson already had a warrant out for his arrest from a federal firearms violation occurring in October 2017. Ladson was subsequently indicted by a federal grand jury on the methamphetamine charge and has been in continuous custody since his March arrest. Prior to the incident, Ladson had numerous state convictions, to include: possession with intent to distribute methamphetamine (2014); possession with intent to distribute cocaine base (2014); two convictions for possession with intent to distribute marijuana (2014); burglary in the second degree, violent; criminal domestic violence of a high and aggravated nature (2013); and assault and battery in the first degree (2013).
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Fountain Inn Police Department and prosecuted as part of the joint federal, state, and local Project CeaseFire initiative. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Reinstituting PSN nationwide in October 2017, Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority, and this case is another example of the positive effect his renewed focus is having on our communities in South Carolina. It was prosecuted by Assistant United States Attorneys Justin Holloway and Jeanne Howard, both of whom are prosecutors assigned to the violent crime section of the United States Attorney’s Office.
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Eight New Orleans-Area Defendants Plead Guilty to Scheme to Possess Oxycodone by Fraud; Six of the Eight also Plead Guilty to Scheme to Possess with Intent to Distribute Oxycodone on the Black MarketRead the Press Release
WASHINGTON – Eight New Orleans, Louisiana-area defendants have pleaded guilty for their participation in a conspiracy to obtain oxycodone through fraud by using fictitious prescriptions. Six of the eight defendants have also pleaded guilty for the roles in a scheme to possess with intent to distribute oxycodone on the black market.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Stephen G. Azzam of the U.S. Drug Enforcement Administration (DEA)’s New Orleans Field Division made the announcement.
Jesse J. Wildenfels, 39, of Metairie, Louisiana, pleaded guilty today to a dual-object conspiracy to acquire and obtain possession of oxycodone by fraud and to possess oxycodone with the intent to distribute. On Oct. 17, Luis R. Cabrera Jr., 38, of Norco, Louisiana; Vicki J. Skeldon, 44, of Metairie; Stephanie N. Free, 28, of Gretna, Louisiana; Jarrod A. Doubleday, 47, of Livingston, Louisiana; John A. Doubleday, 52, of Place, Louisiana; Whitney J. Swan III, 48, of Saint Rose, Louisiana; and Cynthia B. Foret, 41, also of Norco, pleaded guilty to their roles in violating the Controlled Substances Act. Cabrera, Skeldon, Free, John Doubleday and Swan pleaded guilty to a dual-object conspiracy to acquire and obtain possession of oxycodone by fraud and to possess oxycodone with the intent to distribute. Jarrod Doubleday and Foret pleaded guilty to conspiracy to obtain possession of oxycodone by fraud.
“These defendants were responsible for over 10,000 Oxycodone pills flowing onto the streets in and around New Orleans,” said Assistant Attorney General Benczkowski. “I commend the prosecutors in the Medicare Fraud Strike Force and the U.S. Attorney’s Office, along with our law enforcement partners, for their outstanding efforts to disrupt the illegal sale of opioids on the black market.”
“The proliferation of illegally obtained opioids flooding our community has made a significant contribution to the abuse of prescription drugs which plagues many families,” said U.S. Attorney Strasser. “Cases such as this shows the commitment DOJ has to our community by combating this growing threat.”
“Driven by greed and addiction, these eight defendants manipulated a system established to assist patients with legitimate medical conditions,” said FBI Special Agent in Charge Rommal. “Through their illicit gains, these defendants contributed to the daily oxycodone epidemic taking this nation by storm. By removing these defendants from our streets and communities, the FBI, in conjunction with our federal, state, and local law enforcement partners were able to take the drugs out of an addict’s hands and hopefully save a life or two.”
“The eight individuals involved in this scheme heartlessly contributed to the opioid epidemic plaguing our society today,” said DEA Special Agent in Charge Azzam. “This malicious conduct puts lives at risk and won’t be tolerated. DEA, along with our law enforcement partners, will continue to aggressively pursue those who seek to perpetuate and profit from the opioid crisis in this country and bring them to justice.”
The charges stem from the defendants’ involvement in a prescription drug diversion conspiracy in the greater New Orleans area. The conspiracy in total resulted in the diversion of approximately 10,000 oxycodone pills on the black market.
In pleading guilty, Cabrera, Skeldon, Free, John Doubleday, Swan and Wildenfels admitted that, between February 2017 and June 2018, they either provided their personal identifying information for the purpose of having fictitious prescriptions for oxycodone created in their names or referred co-conspirators for the purpose of having fictitious prescriptions for oxycodone written in their co-conspirators’ names. The prescriptions were then filled at area pharmacies and a portion of oxycodone pills obtained with those prescriptions were subsequently sold on the black market. Additionally, in pleading guilty, Jarrod Doubleday admitted to filling fictitious prescriptions for oxycodone in his own name between April 2017 and May 2017. And, in pleading guilty, Foret admitted to forging prescriptions for oxycodone in her own name and in the name of her co-conspirators between February 2015 and October 2016, which were ultimately filled.
U.S. District Judge Lance M. Africk for the Eastern District of Louisiana set sentencing for Cabrera, Skeldon, Free, Doubleday and Swan on Jan. 24, 2019, and for Doubleday, Foret and Wildenfels on Feb. 7, 2019.
This case was investigated by the FBI, HHS-OIG, the DEA and the Jefferson Parish Sheriff’s Office. Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
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Eight New Orleans-Area Defendants Plead Guilty to Scheme to Possess Oxycodone by Fraud; Six of the Eight Also Plead Guilty to Scheme to Possess with Intent to Distribute Oxycodone on the Black MarketRead the Press Release
Eight New Orleans, Louisiana-area defendants have pleaded guilty for their participation in a conspiracy to obtain oxycodone through fraud by using fictitious prescriptions. Six of the eight defendants have also pleaded guilty for the roles in a scheme to possess with intent to distribute oxycodone on the black market.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Stephen G. Azzam of the U.S. Drug Enforcement Administration (DEA)’s New Orleans Field Division made the announcement.
Jesse J. Wildenfels, 39, of Metairie, Louisiana, pleaded guilty today to a dual-object conspiracy to acquire and obtain possession of oxycodone by fraud and to possess oxycodone with the intent to distribute. On Oct. 17, Luis R. Cabrera Jr., 38, of Norco, Louisiana; Vicki J. Skeldon, 44, of Metairie; Stephanie N. Free, 28, of Gretna, Louisiana; Jarrod A. Doubleday, 47, of Livingston, Louisiana; John A. Doubleday, 52, of Place, Louisiana; Whitney J. Swan III, 48, of Saint Rose, Louisiana; and Cynthia B. Foret, 41, also of Norco, pleaded guilty to their roles in violating the Controlled Substances Act. Cabrera, Skeldon, Free, John Doubleday and Swan pleaded guilty to a dual-object conspiracy to acquire and obtain possession of oxycodone by fraud and to possess oxycodone with the intent to distribute. Jarrod Doubleday and Foret pleaded guilty to conspiracy to obtain possession of oxycodone by fraud.
“These defendants were responsible for over 10,000 Oxycodone pills flowing onto the streets in and around New Orleans,” said Assistant Attorney General Benczkowski. “I commend the prosecutors in the Medicare Fraud Strike Force and the U.S. Attorney’s Office, along with our law enforcement partners, for their outstanding efforts to disrupt the illegal sale of opioids on the black market.”
“The proliferation of illegally obtained opioids flooding our community has made a significant contribution to the abuse of prescription drugs which plagues many families,” said U.S. Attorney Strasser. “Cases such as this shows the commitment DOJ has to our community by combating this growing threat.”
“Driven by greed and addiction, these eight defendants manipulated a system established to assist patients with legitimate medical conditions,” said FBI Special Agent in Charge Rommal. “Through their illicit gains, these defendants contributed to the daily oxycodone epidemic taking this nation by storm. By removing these defendants from our streets and communities, the FBI, in conjunction with our federal, state, and local law enforcement partners were able to take the drugs out of an addict’s hands and hopefully save a life or two.”
“The eight individuals involved in this scheme heartlessly contributed to the opioid epidemic plaguing our society today,” said DEA Special Agent in Charge Azzam. “This malicious conduct puts lives at risk and won’t be tolerated. DEA, along with our law enforcement partners, will continue to aggressively pursue those who seek to perpetuate and profit from the opioid crisis in this country and bring them to justice.”
The charges stem from the defendants’ involvement in a prescription drug diversion conspiracy in the greater New Orleans area. The conspiracy in total resulted in the diversion of approximately 10,000 oxycodone pills on the black market.
In pleading guilty, Cabrera, Skeldon, Free, John Doubleday, Swan and Wildenfels admitted that, between February 2017 and June 2018, they either provided their personal identifying information for the purpose of having fictitious prescriptions for oxycodone created in their names or referred co-conspirators for the purpose of having fictitious prescriptions for oxycodone written in their co-conspirators’ names. The prescriptions were then filled at area pharmacies and a portion of oxycodone pills obtained with those prescriptions were subsequently sold on the black market. Additionally, in pleading guilty, Jarrod Doubleday admitted to filling fictitious prescriptions for oxycodone in his own name between April 2017 and May 2017. And, in pleading guilty, Foret admitted to forging prescriptions for oxycodone in her own name and in the name of her co-conspirators between February 2015 and October 2016, which were ultimately filled.
U.S. District Judge Lance M. Africk for the Eastern District of Louisiana set sentencing for Cabrera, Skeldon, Free, Doubleday and Swan on Jan. 24, 2019, and for Doubleday, Foret and Wildenfels on Feb. 7, 2019.
This case was investigated by the FBI, HHS-OIG, the DEA and the Jefferson Parish Sheriff’s Office. Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Des Moines Man Sentenced to Prison for Drugs and GunsRead the Press Release
A man who conspired to distribute methamphetamine while possessing firearms was sentenced October 22, 2018, to 15 years in federal prison.
Eric Humphrey, 33, from Des Moines, Iowa, received the prison term after a February 21, 2018, guilty plea to conspiracy to distribute and possess with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
At the guilty plea, Humphrey admitted he conspired with others to distribute methamphetamine from September 2017 through October 2017 in the Humboldt, Iowa area. On October 20, 2017, law enforcement attempted to conduct a traffic stop on Humphrey for an outstanding warrant, Humphrey fled and a high-speed chase ensued. During the chase, Humphrey led police near an elementary school that was releasing students at the time, hit the car of a teenage driver, a parked car, and two police vehicles causing significant damage. After Humphrey was apprehended, his vehicle was searched, and officers seized methamphetamine, a Smith & Wesson .40 caliber pistol, cash, several cell phones and drug paraphernalia. In a subsequent search of Humphrey’s residence, which was near an elementary school, officers seized a second Smith & Wesson .40 caliber pistol.
Humphrey was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Humphrey was sentenced to 180 months’ imprisonment. He was ordered to make $19,977.20 in restitution. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Humphrey is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Humboldt County Sheriff’s Office, Iowa Criminal Division of Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3053. Follow us on Twitter @USAO_NDIA.
Department of Justice and Department of Interior Team up for Major Expansion of Tribal Access to National Crime Information DatabasesRead the Press Release
The Department of Justice and the Department of the Interior announced a dramatic expansion of the federal government’s key program that provides tribes with access to national crime information databases, the Justice Department’s Tribal Access Program for National Crime Information (TAP).
By the end of 2019, the Justice Department will expand the number of TAP participating tribes by more than 50 percent—from 47 tribes to 72. The Department of the Interior (DOI) will fund the instillation of TAP Kiosks at three locations where the BIA-Office of Indian Services (BIA-OIS) deliver direct service social services by the end of 2019 and DOI aims to expand TAP access at all 28 BIA-Office of Justice Services (BIA-OJS) operated law enforcement agencies and detention service centers. These BIA locations will provide some degree of access to TAP for services delivered to more than 50 tribal communities that currently do not have any direct access.
“For far too long, a lack of access to federal criminal databases has hurt tribal law enforcement—preventing them from doing their jobs and keeping their communities safe,” said Deputy Attorney General Rod Rosenstein. “With the Tribal Access Program, participating tribes will be able to protect victims of domestic violence, register sex offenders, keep guns out of dangerous hands, and help locate missing people. This milestone demonstrates our deep commitment to strengthening public safety in Indian country.”
“I am proud to authorize the funding for the expansion of the Tribal Access Program to the Bureau of Indian Affairs to make the future of justice in Indian Country stronger,” said Assistant Secretary for Indian Affairs Tara Sweeney at the 75th National Congress of American Indians Convention today. “The Bureau of Indian Affairs is proud to grant greater access to these important databases at more locations throughout Indian Country. Performing background checks is a critical step in protecting our precious Native children in foster care, and tribal communities served by the BIA will benefit from access to this extensive public safety tool.”
“Access to information is vital to effective law enforcement,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma and the Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues. “The Tribal Access Program will enhance and improve the ability of tribal law enforcement officers to serve their communities. The Native American Issues Subcommittee is proud to support the continued expansion of this tool throughout Indian Country.
The Native American Issues Subcommittee (NAIS) is comprised of United States Attorneys with Indian Country in their federal districts. They advise the Attorney General regarding the development and implementation of policies pertaining to justice in Indian Country. The NAIS identified ‘increased law enforcement resources’ as one of four priority areas to improve justice services in Indian Country. Support for and increased dissemination of the TAP was unanimously supported by the US Attorneys at a recent NAIS meeting in Indian Country in Tulsa, Oklahoma.
“We at the BIA-OJS look forward to having direct access to these vital resources,” said Deputy BIA Director for Office of Justice Services Charles Addington. “We have waited years for the opportunity to streamline how we access these critical databases and the funding authorized by AS-IA Sweeney will allow our law enforcement officers the ability to receive the information they need to do their jobs effectively and keep them safe.”
TAP, offered in two versions, TAP-FULL and TAP-LIGHT, allows tribes to more effectively serve and protect their communities by fostering the exchange of critical data through several national databases through the FBI’s Criminal Justice Information Systems (CJIS) network, including the National Crime Information Center (NCIC), Next Generation Identification (NGI), National Data Exchange (N-DEx), National Instant Criminal Background Check System (NICS), Law Enforcement Enterprise Portal (LEEP) as well as other national systems such as the International Justice and Public Safety Network (Nlets). TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced nationwide; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.
TAP-FULL consists of a kiosk workstation that provide access to national systems and is capable of processing finger and palm prints, as well as taking mugshots and submitting records to national databases. TAP-LIGHT is software for criminal agencies that include police departments, prosecutors, criminal courts, jails, and probation departments. Both versions provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purpose. TAP is currently available to 47 tribes nationwide with over 220 tribal criminal justice and civil agencies participating.
For more information on TAP, including a list and map of present TAP-FULL and TAP-LIGHT tribes, visit www.justice.gov/tribal/tribal-access-program-tap
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal
Department of Justice and Department of Interior Team up for Major Expansion of Tribal Access to National Crime Information DatabasesRead the Press Release
WASHINGTON— The Department of Justice and the Department of the Interior announced a dramatic expansion of the federal government’s key program that provides tribes with access to national crime information databases, the Justice Department’s Tribal Access Program for National Crime Information (TAP).
Trent Shores, U.S. Attorney for the Northern District of Oklahoma and Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues, announced today that the Miami Agency will gain access to TAP through the Bureau of Indian Affairs-Office of Justice Services (BIA-OJS). The Miami Agency is located within the Northern District of Oklahoma. It services nine Federally recognized Tribes which include the Eastern Shawnee Tribe of Oklahoma; Miami Tribe of Oklahoma; Modoc Tribe of Oklahoma; Ottawa Tribe of Oklahoma; Peoria Tribe of Indians of Oklahoma; Quapaw Tribe of Indians; Seneca-Cayuga Tribe of Oklahoma; Shawnee Tribe; and Wyandotte Nation.
In past years, the Cherokee and Wyandotte Nations, both located in the Northern District of Oklahoma, have also gained access to the program.
“As a pilot participant of the DOJ’s Tribal Access Program, the Cherokee Nation has greatly benefited from the collaboration. It has been advantageous not just to the tribal Marshal Service, but also to our non-criminal departments like Indian Child Welfare, Child Support Services and Human Resource departments,” said Cherokee Nation Principal Chief Bill John Baker. “Access to the national crime information systems has allowed Cherokee Nation to expedite the placement of children by our ICW officials, speed up the tribe’s hiring process and better prepare our Child Support Services employees for court cases. All these advances are enabling us to improve services to Cherokee Nation citizens.”
This year, a total of 25 tribes have been selected to participate in the next phase of TAP while 28 BIA-OJS agencies, including detention centers, will now have access to TAP. Three more BIA-OJS agencies will have TAP kiosks installed for the dedicated purposes of vetting foster parents for Tribes within their service areas. Other tribes and agencies in Oklahoma included in this next phase of TAP are the Cheyenne and Arapahoe Tribes of Oklahoma, the Absentee-Shawnee Tribe of Indians of Oklahoma, and the Anadarko Agency.
By the end of 2019, the Justice Department will expand the number of TAP participating tribes by more than 50 percent—from 47 tribes to 72. The Department of the Interior (DOI) will fund the instillation of TAP Kiosks at three locations where the BIA-Office of Indian Services (BIA-OIS) deliver direct service social services by the end of 2019 and DOI aims to expand TAP access at all 28 BIA-Office of Justice Services (BIA-OJS) operated law enforcement agencies and detention service centers. These BIA locations will provide some degree of access to TAP for services delivered to more than 50 tribal communities that currently do not have any direct access.
“Access to information is vital to effective law enforcement,” said U.S. Attorney Trent Shores. “The Tribal Access Program will enhance and improve the ability of tribal law enforcement officers to serve their communities. The Native American Issues Subcommittee is proud to support the continued expansion of this tool throughout Indian Country.”
The Native American Issues Subcommittee (NAIS) is comprised of United States Attorneys with Indian Country in their federal districts. They advise the Attorney General regarding the development and implementation of policies pertaining to justice in Indian Country. The NAIS identified ‘increased law enforcement resources’ as one of four priority areas to improve justice services in Indian Country. Support for and increased dissemination of the TAP was unanimously supported by the US Attorneys at a recent NAIS meeting in Indian Country in Tulsa, Oklahoma.
TAP, offered in two versions, TAP-FULL and TAP-LIGHT, allows tribes to more effectively serve and protect their communities by fostering the exchange of critical data through several national databases through the FBI’s Criminal Justice Information Systems (CJIS) network, including the National Crime Information Center (NCIC), Next Generation Identification (NGI), National Data Exchange (N-DEx), National Instant Criminal Background Check System (NICS), Law Enforcement Enterprise Portal (LEEP) as well as other national systems such as the International Justice and Public Safety Network (Nlets). TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced nationwide; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.
TAP-FULL consists of a kiosk workstation that provide access to national systems and is capable of processing finger and palm prints, as well as taking mugshots and submitting records to national databases. TAP-LIGHT is software for criminal agencies that include police departments, prosecutors, criminal courts, jails, and probation departments. Both versions provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purpose. TAP is currently available to 47 tribes nationwide with over 220 tribal criminal justice and civil agencies participating.
For more information on TAP, including a list and map of present TAP-FULL and TAP- LIGHT tribes, visit www.justice.gov/tribal/tribal-access-program-tap
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal
Department of Justice and Department of Interior Team up for Major Expansion of Tribal Access to National Crime Information DatabasesRead the Press Release
WASHINGTON— U.S. Attorney Annette L. Hayes joined the Department of Justice and the Department of the Interior in announcing a significant expansion of the federal government’s key program that provides tribes with access to national crime information databases, the Justice Department’s Tribal Access Program for National Crime Information (TAP). The expansion includes the Chehalis, Swinomish, Lower Elwha, Quinault, and Port Gamble S'Klallam Tribes.
“With the addition of five more, we will have a total of nine tribes in Western Washington participating in the Tribal Access Program – ensuring better data sharing across law enforcement and thus more public safety in the communities we serve,” said U.S. Attorney Annette L. Hayes. “The TAP program has already resulted in some significant successes. The Suquamish Tribal Police were among the first ten tribes to join the system in 2015, and were able to use the system to locate and rescue an elderly tribal member who had been taken from his home. The information obtained via TAP provided key clues that allowed the matter to be safely resolved.”
TAP provides federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes. This allows tribes to more effectively serve and protect their communities by ensuring the exchange of critical data. By the end of 2019, the Justice Department will expand the number of TAP participating tribes by more than 50 percent—from 47 tribes to 72. The Department of the Interior (DOI) will fund the instillation of TAP Kiosks at three locations where the BIA-Office of Indian Services (BIA-OIS) deliver direct social services by the end of 2019 and DOI aims to expand TAP access at all 28 BIA-Office of Justice Services (BIA-OJS) operated law enforcement agencies and detention service centers. These BIA locations will provide some degree of access to TAP for services delivered to more than 50 tribal communities that currently do not have any direct access.
“Access to information is vital to effective law enforcement,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma and the Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues. “The Tribal Access Program will enhance and improve the ability of tribal law enforcement officers to serve their communities. The Native American Issues Subcommittee is proud to support the continued expansion of this tool throughout Indian Country.”
The Native American Issues Subcommittee (NAIS) is comprised of United States Attorneys with Indian Country in their federal districts. They advise the Attorney General regarding the development and implementation of policies pertaining to justice in Indian Country. The NAIS identified ‘increased law enforcement resources’ as one of four priority areas to improve justice services in Indian Country. Support for and increased dissemination of the TAP was unanimously supported by the US Attorneys at a recent NAIS meeting in Indian Country in Tulsa, Oklahoma.
TAP, offered in two versions, TAP-FULL and TAP-LIGHT, allows tribes to more effectively serve and protect their communities by fostering the exchange of critical data through several national databases via the FBI’s Criminal Justice Information Systems (CJIS) network, including the National Crime Information Center (NCIC), Next Generation Identification (NGI), National Data Exchange (N-DEx), National Instant Criminal Background Check System (NICS), Law Enforcement Enterprise Portal (LEEP) as well as other national systems such as the International Justice and Public Safety Network (Nlets). TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced nationwide; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases so they can be recognized by law enforcement across the country.
The following tribes have been selected for the next phase of TAP FULL:
Absentee-Shawnee Tribe of Indians of Oklahoma
Blackfeet Tribe of the Blackfeet Indian Reservation of Montana
Confederated Tribes of the Chehalis Reservation (Washington)
Cheyenne and Arapahoe Tribes, Oklahoma
Cheyenne River Sioux Tribe of the Cheyenne River Reservation, South Dakota
Eastern Shoshone Tribe of the Wind River Reservation, Wyoming
Fort McDowell Yavapai Nation, Arizona
Hopi Tribe of Arizona
Lower Elwha Tribal Community (Washington)
Northern Arapahoe Tribe of the Wind River Reservation, Wyoming
Penobscot Nation (Maine)
Quinault Indian Nation (Washington)
Rosebud Sioux Tribe of the Rosebud Indian Reservation, South Dakota
Salt River Pima-Maricopa Indian Community of the Salt River Reservation, Arizona
Sault Ste. Marie Tribe of Chippewa Indians, Michigan
The Seminole Nation of Oklahoma
Swinomish Indian Tribal Community (Washington)
Turtle Mountain Band of Chippewa Indians of North Dakota
The following tribes have been selected for the next phase of TAP LIGHT:
Bishop Paiute Tribe (California)
La Jolla Band of Luiseno Indians, California
Lac Vieux Desert Band of Lake Superior Chippewa Indians of Michigan
Mashpee Wampanoag Tribe (Massachusetts)
Morongo Band of Mission Indians, California
Port Gamble S'Klallam Tribe (Washington)
San Pasqual Band of the Diegueno Mission Indians of California
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal
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Department of Justice and Department of Interior Team up for Major Expansion of Tribal Access to National Crime Information DatabasesRead the Press Release
Turtle Mountain Band of Chippewa Indians of North Dakota to Participate in the TAP Program in District of North Dakota
WASHINGTON - U.S. Attorney Christopher C. Myers joined the Department of Justice and the Department of the Interior in announcing a dramatic expansion of the federal government’s key program that provides tribes with access to national crime information databases, the Justice Department’s Tribal Access Program for National Crime Information (TAP). The expansion includes Turtle Mountain Band of Chippewa Indians.
“This program will greatly enhance the access to information for law enforcement on Turtle Mountain and will help promote public safety in our tribal communities” said U.S. Attorney Myers.
By the end of 2019, the Justice Department will expand the number of TAP participating tribes by more than 50 percent—from 47 tribes to 72. The Department of the Interior (DOI) will fund the instillation of TAP Kiosks at three locations where the BIA-Office of Indian Services (BIA-OIS) deliver direct service social services by the end of 2019 and DOI aims to expand TAP access at all 28 BIA-Office of Justice Services (BIA-OJS) operated law enforcement agencies and detention service centers. These BIA locations will provide some degree of access to TAP for services delivered to more than 50 tribal communities that currently do not have any direct access.
“Access to information is vital to effective law enforcement,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma and the Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues. “The Tribal Access Program will enhance and improve the ability of tribal law enforcement officers to serve their communities. The Native American Issues Subcommittee is proud to support the continued expansion of this tool throughout Indian Country.”
The Native American Issues Subcommittee (NAIS) is comprised of United States Attorneys with Indian Country in their federal districts. They advise the Attorney General regarding the development and implementation of policies pertaining to justice in Indian Country. The NAIS identified ‘increased law enforcement resources’ as one of four priority areas to improve justice services in Indian Country. Support for and increased dissemination of the TAP was unanimously supported by the US Attorneys at a recent NAIS meeting in Indian Country in Tulsa, Oklahoma.
TAP, offered in two versions, TAP-FULL and TAP-LIGHT, allows tribes to more effectively serve and protect their communities by fostering the exchange of critical data through several national databases through the FBI’s Criminal Justice Information Systems (CJIS) network, including the National Crime Information Center (NCIC), Next Generation Identification (NGI), National Data Exchange (N-DEx), National Instant Criminal Background Check System (NICS), Law Enforcement Enterprise Portal (LEEP) as well as other national systems such as the International Justice and Public Safety Network (Nlets). TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced nationwide; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.
TAP-FULL consists of a kiosk workstation that provide access to national systems and is capable of processing finger and palm prints, as well as taking mugshots and submitting records to national databases. TAP-LIGHT is software for criminal agencies that include police departments, prosecutors, criminal courts, jails, and probation departments. Both versions provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purpose. TAP is currently available to 47 tribes nationwide with over 220 tribal criminal justice and civil agencies participating.
For more information on TAP, including a list and map of present TAP-FULL and TAP-LIGHT tribes, visit www.justice.gov/tribal/tribal-access-program-tap
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal
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Department of Justice and Department of Interior Team up for Major Expansion of Tribal Access to National Crime Information DatabasesRead the Press Release
SIOUX FALLS - U.S. Attorney Ron Parsons joined the Department of Justice and the Department of the Interior in announcing a dramatic expansion of the federal government’s key program that provides tribes with access to national crime information databases, the Justice Department’s Tribal Access Program for National Crime Information (TAP). The expansion includes the Rosebud Sioux Tribe and the Cheyenne River Sioux Tribe in South Dakota.
In praising the action, U.S. Attorney Parsons said: “I applaud the Rosebud Sioux Tribe and the Cheyenne River Sioux Tribe for prioritizing public safety and supporting the tremendous work being done by their law enforcement officers through participation in the Tribal Access Program. Everyone benefits from greater cooperation and sharing of information between governments and all levels of law enforcement. This is a win for all involved.”
Rosebud Sioux Tribe President Rodney M. Bordeaux stated: "The Tribal Access to National Crime Information Database will strengthen Tribal sovereignty by providing the Rosebud Sioux Tribe with more tools to protect the general public, allow background checks for all Tribal programs whose employees have regular contact with children, allow social services agencies to investigate allegations of abuse and neglect, dissemination of protection orders and restraining order for enforcement by all law enforcement agencies, and permits the Tribe to enter Tribal sex offender convictions into the national data base. The Rosebud Sioux Tribe looks forward to working with Department of Justice to increase Tribal access to national criminal and civil data information, collection and entry."
By the end of 2019, the Justice Department will expand the number of TAP participating tribes by more than 50 percent—from 47 tribes to 72. Further, by 2020, the Interior Department’s Bureau of Indian Affairs Office of Justice Services (BIA-OJS) will expand TAP to all 28 tribes where it delivers direct law enforcement services. The BIA Division of Human Services will also add three tribal social service locations in New Mexico, Oklahoma, and Montana in 2019.
TAP provides federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purpose. This allows tribes to more effectively serve and protect their communities by ensuring the exchange of critical data. TAP is currently deployed to 47 tribes nationwide with over 220 tribal criminal justice and civil agencies participating. The program provides integrated workstations and/or software as well as enhanced training and assistance to enable tribes to access and contribute to national crime information databases.
“Access to information is vital to effective law enforcement,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma and the Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues. “The Tribal Access Program will enhance and improve the ability of tribal law enforcement officers to serve their communities. The Native American Issues Subcommittee is proud to support the continued expansion of this tool throughout Indian Country.”
The Native American Issues Subcommittee (NAIS) is comprised of United States Attorneys with Indian Country in their federal districts. They advise the Attorney General regarding the development and implementation of policies pertaining to justice in Indian Country.
U.S. Attorney Parsons chairs the law enforcement resources working group of the NAIS, which identified ‘increased law enforcement resources’ as one of four priority areas to improve justice services in Indian Country. Support for and increased dissemination of the TAP was unanimously supported by the US Attorneys at a recent NAIS meeting in Indian country in Tulsa, Oklahoma.
Beginning in 2019, the Department of the Interior will for the first time participate in TAP by placing kiosks at three of their direct service social services locations—Northern Pueblos at Ohkay Owingeh, New Mexico, Anadarko, Oklahoma, and Lame Deer, Montana. This will give BIA and the tribes the ability to conduct federally-required fingerprint based background checks in child abuse cases and vetting of foster parents.
Also beginning in 2019, BIA-OJS will begin deploying kiosks to all 28 of their direct service law enforcement tribes. BIA OJS expects to complete this large-scale deployment by 2020.
TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced nationwide; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.
TAP supports tribes in analyzing their needs for national crime information and includes appropriate solutions, including a-state-of-the-art biometric/biographic kiosk workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases. This includes the ability to access several national databases through the FBI’s Criminal Justice Information Systems (CJIS) network, including the National Crime Information Center (NCIC), Next Generation Identification (NGI), National Data Exchange (N-DEx), National Instant Criminal Background Check System (NICS), Law Enforcement Enterprise Portal (LEEP) as well as other national systems such as the International Justice and Public Safety Network (Nlets)
For more information on TAP, visit: www.justice.gov/tribal/tribal-access-program-tap
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal
Citizen of Mexico Sentenced to 3 Years in Federal Prison for Third Illegal Reentry OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE DEL CARMEN HERNANDEZ HERNANDEZ, 43, a citizen of Mexico last residing in Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for illegally reentering the U.S. after being deported, and for violating the conditions of his supervised release from a prior federal conviction for illegally reentering the U.S.
According to court documents and statements made in court, between 1999 and 2009, HERNANDEZ, who has never held legal status in the U.S., sustained multiple state convictions, including convictions for assault, threatening and operating under the influence. In April 2009, he was removed to Mexico. HERNANDEZ unlawfully reentered the U.S., returned to Connecticut and was subsequently convicted in state court on charges of evasion with injury, and criminal mischief. After he was arrested in Hartford, in March 2013, on breach of peace and criminal mischief offenses, HERNANDEZ was identified by federal immigration authorities and was charged and convicted in federal court of reentry of a removed alien. On September 10, 2013, he was sentenced in Hartford federal court to 12 months of imprisonment. In April 2014, he was again deported to Mexico.
HERNANDEZ illegally reentered the U.S. a second time and returned to Connecticut. In November 2015, HERNANDEZ was arrested by Hartford Police for driving under the influence. He subsequently was charged and convicted in federal court of reentry of a removed alien and, on July 15, 2016, Judge Meyer sentenced him to 12 months and one day of imprisonment, followed by three years of supervised release. On July 26, 2016, he was convicted in state court of operating under the influence and was sentenced to three years of incarceration, suspended after one year. After he served his federal and state sentences, he was removed to Mexico in May 2017.
HERNANDEZ illegally reentered the U.S. a third time and, on January 11, 2018, was arrested by the Hartford Police Department for multiple motor vehicle violations, including operating under the influence. He has been detained since his arrest.
On August 7, 2018, HERNANDEZ pleaded guilty to one count of illegal reentry.
HERNANDEZ’s driving under the influence case is pending in state court.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Cell phone store robbers convicted in federal courtRead the Press Release
Robbery team terrorized stores in Indianapolis and Ohio.
PRESS RELEASE
Indianapolis– United States Attorney Josh J. Minkler announced today a jury in federal court has found two Indianapolis men guilty for their role in a string of cell phone store robberies. Kashawn Morrow, 28, and Christopher Davis, 24, were found guilty on three counts of robbery, three counts of using a firearm in relation to a crime, two counts of conspiracy, and transporting a firearm across state line to commit a felony. The trial was held before U. S. District Judge Richard L. Young.
“This group used violence to terrorize retail store employees around the Midwest,” said Minkler. “Putting the safety of shoppers, employees and law enforcement in jeopardy will never be tolerated. They will now be held accountable for their actions.”
In February and March of 2017, Morrow and Davis perpetrated a crime spree through Indianapolis and Ohio which included the armed robberies of cell phone stores on East Thompson Rd., South East St., Pendleton Way in Indianapolis, and one in Troy, Ohio. Morrow and Davis used guns and terrorized their victims during these robberies, threatening their lives if they did not comply. With the FBI following them after their last robbery, a force of law enforcement including the FBI, ISP, IMPD, and most sheriff’s offices from Richmond to Spiceland, intercepted the men and arrested them on March 30, 2017. They were still in possession of the assault rifle used in the robbery, and the over 84 cell phones and accessories taken.
According to Assistant United States Attorneys Bradley Shepard and Cindy Cho, who prosecuted this case for the government, both defendants face a sentence of 55years to life. No sentencing date has been set by the court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who commit violent crimes involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3
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California Man Sentenced to 10 Years in Prison for Role in Cross-Country Conspiracy to Distribute More Than Five Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A Riverside, California, man was sentenced today to 120 months in prison for his role in a conspiracy to transport more than five kilograms of cocaine from California to New Jersey, U.S. Attorney Craig Carpenito announced.
Edwin Garcia Cambero, 26, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with conspiracy to possess with intent to distribute more than five kilograms of cocaine. Judge Linares imposed the sentence today in Newark federal court.
Garcia Cambero was originally charged by complaint on Dec. 13, 2017, with Luis Michel Donascimento, 37, of Perris, California, and Humberto Ramos Cervantes, 34, of Los Angeles.
According to documents filed in this case and statements made in court:
On Nov. 29, 2017, Donascimento allegedly flew from California to Atlantic City, New Jersey, and met with a government informant and two undercover federal agents. During the meeting, Donascimento agreed to sell the agents 20 kilograms of cocaine, as well as 10 AR-15 semiautomatic rifles.
On Dec. 12, 2017, Donascimento allegedly met with the agents at a hotel in California and delivered them 10 AR-15 rifles as promised. Garcia Cambero also attempted to deliver approximately five kilograms of cocaine to the agents, which he had received from Ramos Cervantes earlier that day at his residence.
In addition to the prison term, Judge Linares sentenced Garcia Cambero to five years of supervised release.
The charges and allegations against Donascimento are merely accusations, and he is presume innocent unless and until proven guilty. Cervantes previously pleaded guilty and is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and the FBI Riverside, California, Resident Agency, under the direction of Assistant Director in Charge Paul D. Delacourt in Los Angeles, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force (OCDETF)/Narcotics Unit.
Defense counsel: Henry Klingeman Esq., Newark
Business Owner Sentenced to Prison Term for Bribing District of Columbia Government EmployeeRead the Press Release
WASHINGTON – Vashawn Strader, 40, of Washington, D.C., was sentenced today to 18 months in prison for bribing an employee of the District of Columbia Office of the State Superintendent of Education (OSSE) to get favorable action on government contracts.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Strader pled guilty in July 2017, in the U.S. District Court for the District of Columbia, to one count of conspiracy to commit bribery. Following his prison term, he will be placed on three years of supervised release. During that time, he must perform 100 hours of community service. He also will be required to pay $308,311 in restitution to OSSE and an identical amount in a forfeiture money judgment.
Strader’s co-conspirator, government employee Shauntell Harley, was sentenced in July 2018 to 56 months in prison. She pled guilty to carrying out two schemes, one with Strader and one with someone else, that caused the D.C. government to pay more than $480,000 on fraudulent invoices. Harley, 48, of Washington, D.C., must pay $488,311 in restitution to OSSE and a forfeiture money judgment in the amount of $100,400.
OSSE is an agency of the District of Columbia government. Harley was a management analyst for fiscal policy and grant management in OSSE’s Division of Special Education. From 2009 through 2014, her responsibilities included issuing requests for services through the government’s procurement process and then reviewing invoices from those who supposedly provided the services.
Strader was the sole owner of a company that provided tutoring and mentoring services to public school students in the District of Columbia and elsewhere. In addition, he co-owned a company that owned and managed real estate in the District of Columbia.
According to the government’s evidence, beginning in or about June of 2012, Strader and Harley agreed that Harley would receive money and other things of value in exchange for favorable official action for Strader’s companies. They agreed that Strader would create fraudulent invoices purporting to reflect work that his companies did not actually perform. This work purportedly included early intervention services for infants and toddlers with disabilities and developmental delays and professional development training.
Harley used her official position at OSSE to provide Strader with non-public information about OSSE contracts, assist him in creating fraudulent invoices, and submit these fraudulent invoices and other documents as necessary in order to cause OSSE to make the payments for services the companies never performed. In total, this led to $308,311 in payments in 2012 and 2013 to the two companies for services that never were provided. In return for her actions, Harley personally obtained a total of $43,900 in proceeds traceable to the scheme.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and Office of the Inspector General of the District of Columbia. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Thomas Swanton, who assisted with forfeiture issues, and Paralegal Specialists Joshua Fein and Kristy Penny. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who is investigating and prosecuting the matter.
Bakersfield Man Pleads Guilty to Conspiring with Police Officers to Sell Methamphetamine and MarijuanaRead the Press Release
BAKERSFIELD, Calif. — Noel Carter, 46, of Bakersfield, pleaded guilty today to conspiring with Bakersfield police officers Damacio Diaz and Patrick Mara to distribute methamphetamine and marijuana that Diaz and Mara seized in the course of their duties as police officers, U.S. Attorney McGregor W. Scott announced.
According to court documents, from April 2012 to August 2015, Carter conspired with Diaz and Mara, who deliberately failed to submit the seized drugs into the BPD evidence room and instead provided the stolen narcotics to Carter so that Carter could sell those narcotics for profit.
In May 2016, Diaz pleaded guilty to possessing with the intent to distribute methamphetamine, as well as receiving bribes and making a false income tax return. In June 2016, Mara pleaded guilty to conspiring to distribute, and to possess with the intent to distribute, methamphetamine. Both were removed from active duty with the Bakersfield Police Department and are currently serving federal prison sentences.
As part of the plea agreement, five counts of the indictment will be dismissed, but Carter will pay restitution to the victim of the embezzlement charged in those counts, Pacific Workplaces. According to the factual basis in the plea agreement, starting in September 2016 and up until his termination in September 2017, Carter was a contract manager for the Pacific Workplaces, a virtual office and short-term office rental business, and was responsible for the overall operation of the office. Carter admitted to embezzling money from the company and depositing the money into his personal account. During this one-year period, Carter fraudulently negotiated and embezzled the funds from at least 87 checks, totaling $70,251.
According to the plea agreement, Carter admitted that he failed to report the proceeds of his illegal activity from 2012 through 2017. He agrees that he will file amended returns for those years, correctly reporting $480,000 of previously unreported income.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation, and the Bakersfield Police Department. Assistant U.S. Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.
Carter is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 16, 2019. Carter faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Atlanta man sentenced to federal prison for aggravated identity theftRead the Press Release
ATLANTA – Khoi Nguyen was sentenced to federal prison for aggravated identity theft on October 19, 2018. As a part of his scheme, Nguyen stole the identity of an unwitting victim, then subsequently opened a fraudulent online bank account at Branch Banking and Trust (BB&T) bank.
“Nguyen brazenly stole thousands of dollars from a financial institution to line his pockets,” said U.S. Attorney Byung J. “BJay” Pak. “The defendant impersonated a federal agent to try to cover his tracks, but fortunately an alert bank employee and the quick response from law enforcement brought his identity theft scheme to a halt.”
“There is no telling how far this fraud scheme would have gone without the alert response from bank employees and the Atlanta Police Department,” according to Chris Hacker, Special Agent in Charge of FBI Atlanta. “Identity fraud affects so many people, not only the individual victim, but also in this case the bank and its customers. The FBI is committed to doing our best to protect the public from identity theft.”
“Identity theft is a serious crime that has an awful impact on people’s lives, costing them not only money, but precious time and resources to fix,” said Atlanta Police Chief Erika Shields. “I’m proud of our team’s work in partnership with the FBI and the U.S. Attorney to ensure criminals like Nguyen suffer the consequences of preying on hard-working people’s finances.”
According to U.S. Attorney Pak, the charges and other information presented in court: Around December 2017, Nguyen opened a fraudulent account online at BB&T Bank in the name of a victim. Nguyen visited a BB&T Bank branch in Atlanta on more than one occasion impersonating the victim. When Nguyen was encountered by law enforcement, he falsely claimed that he was a federal agent and was arrested. At the time of his arrest, Nguyen possessed more than $11,000 in cash, 20 iPhones bearing stickers denoting portions of phone numbers or complete phone numbers and/or initials, fraudulent Department of Defense identification documents with different names, various state driver’s licenses containing Nguyen’s photograph with different names, bank and debit cards in various names, gift cards with various institutions, and documents in the name of the victim whose identity Nguyen used to open an account at BB&T Bank.
Khoi Nguyen, 43, of Atlanta, Georgia, was sentenced by U.S. District Judge Amy Totenberg to two years in prison to be followed by one year of supervised release. He was also ordered to pay $3,208.43 in restitution to BB&T Bank. Nguyen pleaded guilty to aggravated identity theft on July 23, 2018.
This case was investigated by the Federal Bureau of Investigation and the Atlanta Police Department.
Assistant U.S. Attorney Ryan J. Huschka prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Amid Bribery Scandal, Former Dallas City Councilman Pleads Guilty to Tax EvasionRead the Press Release
This morning, four-term Dallas City Councilman Larry Duncan, a former president of Dallas County Schools’ Board of Trustees, pleaded guilty to one count of tax evasion before Chief Judge Barbara M.G. Lynn, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The charge stems from the federal investigation into the Dallas County Schools bribery scandal, which has now claimed its fifth conviction.
According to plea papers, between 2012 and 2016, Mr. Duncan, 72, accepted nearly a quarter of a million dollars in campaign contributions from Force Multiplier Solutions president Robert Leonard, who happened to be pursuing lucrative stop-arm camera contracts with DCS.
Instead of putting Mr. Leonard’s money towards legitimate campaign expenses associated with his DCS re-election bid, Mr. Duncan admits he used at least $184,726.03 for personal benefit, taking out cash withdrawals, passing on money to his wife, and even using funds to pay car-related expenses.
He then failed to disclose the money he diverted from the campaign on his tax returns, hiding the income from the IRS.
“Today marks another important step in our ongoing commitment to expose public corruption,” said Nealy Cox. “Those who seek to capitalize on positions of power undermine public trust in the very system they are meant to serve. And that is something we cannot abide.”
“Being a public official comes with its share of rewards and responsibilities; part of those responsibilities is to report all of your taxable income and pay your taxes. Deliberate failure to do so is a serious matter, and IRS Criminal Investigation is dedicated to ensuring everyone is properly reporting and paying in accordance with the tax laws,” said Tamera Cantu, Special Agent-in-Charge of the IRS Criminal Investigation Division’s Dallas Field Office.
“The FBI remains committed to investigating anyone associated with the financial exploitation at Dallas County Schools,” said Eric K. Jackson, Special Agent-In-Charge of the FBI Dallas Division. “This latest indictment continues the efforts of the FBI, along with our partners at the IRS and U.S. Attorney’s Office, to protect and defend Dallas taxpayers from those who would exploit their position for personal gain.”
Mr. Duncan now faces up to a year in federal prison. In his plea agreement, Mr. Duncan agreed to reimburse the government for its tax loss.
Duncan’s campaign contributor, Mr. Leonard, along with former Mayor Pro Tem Dwaine Caraway, pleaded guilty in August to conspiracy to commit honest services wire fraud, after the DCS investigation revealed that Mr. Leonard had funneled over $3 million in bribes to Caraway and Dallas County Schools Superintendent Ricky Sorrells. Mr. Sorrells pleaded guilty in April to conspiracy to commit honest services wire fraud. Another defendant, Slater Swartwood, who operated the shell companies used to conceal the bribes, admitted in December 2017 to conspiring to launder money.
Dallas County Schools, an agency that collected property taxes to fund its fleet of around 2,000 buses, was shuttered in November 2017, approximately $103 million in debt.
The Internal Revenue Service Criminal Investigation unit (IRS-CI) and Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Andrew Wirmani, Marcus Busch, Chad Meacham, and Joseph Magliolo prosecuted the case.
21 October 2018
Whippoorwill Man Sentenced to Prison for Sexual Abuse of a MinorRead the Press Release
PHOENIX – This week, Calvert Baker, 36, of Whippoorwill, Ariz., was sentenced by U.S. District Judge Roslyn O. Silver to 30 months’ imprisonment, to be followed by 15 years of supervised release. Baker, an enrolled member of the Navajo Nation, had previously pleaded guilty to sexual abuse of a minor.
In 2014, when Baker was 31 years old, he engaged in multiple sexual acts with a juvenile female victim.
The investigation in this case was conducted by the Federal Bureau of Investigation and Navajo Nation Department of Public Safety. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-16-08186-PCT-ROS
RELEASE NUMBER: 2018-133_Baker
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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