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15 October 2018
Man Sentenced to over 12 Years for Sex Trafficking A MinorRead the Press Release
SACRAMENTO, Calif. — Tion Makeise Foster, 23, of Point Arena, was sentenced today by United States District Judge Kimberly J. Mueller to twelve and one-half years in prison followed by ten years of supervised release for sex trafficking a minor, United States Attorney McGregor W. Scott announced.
According to court documents, in August 2016, Foster and his co-defendant, Monica Morales, recruited a 16-year-old girl to engage in commercial sex acts for their financial benefit. The defendants contacted the minor using a social media website on the internet called MocoSpace. After making initial contact, Foster and Morales drove to Yuba County, where they picked up the victim and then transported her around Northern California, where they had her engage in sex acts for their financial benefit for approximately one week. During that time, Foster and Morales posted photos of the victim in various online prostitution advertisements.
After Foster and Morales returned the victim to Yuba County, they contacted her again using the internet in December 2016, and discussed plans to traffic her again. While en route to pick up the victim, Foster was arrested in Citrus Heights following a local undercover operation. In that separate state case, Foster used the internet to recruit a person he believed to be a seventeen-year old girl for sex trafficking activity, but who was in fact an undercover officer.
Codefendant Monica Morales was previously sentenced to over 10 years in prison in this case.
This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Yuba County Sheriff’s Office. Assistant United States Attorney Michele Beckwith 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.
Man Sentenced to 10 Years for Conspiring to Commit Murder in Aid of RacketeeringRead the Press Release
FRESNO, Calif. — Deandre Stanfield, 38, of Fresno, was sentenced last week by Chief U.S. District Judge Lawrence J. O’Neill to 10 years in prison for conspiracy to commit murder in aid of racketeering, U.S. Attorney McGregor W. Scott announced.
According to court documents, Stanfield was an influential member of the Dog Pound Gang (“DPG”). In that role, he and other influential members guided and directed the actions of younger, less-experienced gang members. They also set rules, including directives not to talk to the police, to “back up” fellow gang members when they needed help with rival gang members or otherwise, and to assist other DPG members with sex trafficking and credit card fraud. In addition to these crimes, the DPG enterprise engaged in drug trafficking, conspiracy to commit murder, and other offenses affecting interstate commerce.
In pleading guilty to the conspiracy, Stanfield admitted that he agreed with other DPG members to kill rival gang members. While incarcerated in Kern North State Prison for assault with a firearm, Stanfield spoke with several DPG members about getting guns and planning retaliation for the shooting of fellow DPG gang members. The conversations happened in March 2016 after codefendant Kenneth Wharry was shot at by individuals DPG believed to be rival gang members, and during a time when DPG was pursuing retaliation.
This case is the product of an investigation by the California Department of Justice, California Highway Patrol Special Operations Unit; Fresno Police Department; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Internal Revenue Service Criminal Investigations; the Multi-Agency Gang Enforcement Consortium (MAGEC); the Fresno County District Attorney’s Office; and California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey A. Spivak, and Christopher D. Baker prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN 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.
Loves Park Man Sentenced to 22 Years in Federal Prison for Producing Child PornographyRead the Press Release
ROCKFORD — A Loves Park man was sentenced today by U.S. District Judge Philip G. Reinhard to 22 years in federal prison for producing child pornography.
GRANT WOJAHN, 37, admitted in a plea agreement that he created a Facebook account posing as a female teenager. On March 20, 2015, while using that profile, Wohjan contacted a minor female victim using the Facebook private messaging feature and persuaded her to engage in sexually explicit conduct, take photos of that conduct and then transmit the images to Wojahn using the private messaging service on Facebook. According to the plea agreement, the female victim was 13 years of age at the time the pictures were produced and transmitted. Wojahn also admitted that between May 21, 2014, and April 5, 2015, he similarly persuaded six other minor female victims, who were between the ages of 10 and 12, to do the same.
Wojahn also admitted that on March 25, 2015, he used the Facebook private messaging service to chat and send another user a number of images of child pornography depicting one of the minor victims. Further, Wojahn admitted that on Sept. 1, 2015, he possessed numerous images of child pornography on a USB storage device, a cellphone, and other devices, and in total possessed at least 43 videos of child pornography and 71 images of child pornography.
Wojahn pleaded guilty to the child pornography charge on June 11, 2018. The 22-year sentence will be followed by a lifetime term of supervised release.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Margaret J. Schneider.
Leader of Fraudulent Opioid Prescription Conspiracy Sentenced to 6 Years in PrisonRead the Press Release
PROVIDENCE, RI – The leader of a conspiracy that created and filled fraudulent prescriptions for approximately 21,000 opioid pills using stolen medical practitioner identification numbers and identities, and, at times, unlawfully paid for the prescriptions with the use of medical insurance, was sentenced today to 72 months in federal prison.
At the time of his guilty plea, Robert Rose, 52, of Providence, admitted to manufacturing fraudulent prescriptions utilizing the identities and Drug Enforcement Administration (DEA) identification numbers and signatures of medical practitioners without their consent. Prescriptions for varying amounts of Oxycodone pills were written and presented to pharmacies by other members of the conspiracy and individuals working at the direction of the conspirators. The scheme often times included the fraudulent use of medical insurance to pay pharmacies for the illicit prescriptions. Most of the Oxycodone pills gained with the use of fraudulent prescriptions were sold to others for distribution.
At the time of his guilty plea, Rose admitted that as the leader of the conspiracy, he paid for individuals’ identities, health care insurance information, and medical practitioners’ names and DEA numbers. Rose provided that information to others who participated in the conspiracy, along with special paper necessary to produce the fraudulent prescriptions.
Rose pleaded guilty on June 1, 2018, to conspiracy to distribute and possess with the intent to distribute Oxycodone, and aggravated identity theft. He admitted to running the conspiracy for several months while incarcerated at the Adult Correctional Institution on an unrelated matter.
At sentencing, U.S. District Court Chief Judge William E. Smith sentenced Rose to 72 months in federal prison to be followed by 5 years supervised release.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 210 months to 240 months, plus a consecutive term of 24 months incarceration on the charge of aggravated identity theft. The government recommended the Court impose a sentence of 105 months incarceration, plus a consecutive term of 24 months incarceration on the charge of aggravated identity theft.
Robert Rose’s sentence is announced by United States Attorney Stephen G. Dambruch and Jeffrey Ebersole Resident Agent in Charge of the United States Food and Drug Administration (FDA) Office of Criminal Investigations.
“Opioid addiction and abuse are an immense public health crisis,” said Jeffrey J. Ebersole, Special Agent in Charge, FDA Office of Criminal Investigations New York Field Office. “We will continue to pursue and bring to justice criminals who intensify the crisis by forging prescriptions for opioids and place the public’s health at risk.”
Four other members of the conspiracy previously pleaded guilty in this matter:
- Michael Slonski, 48, of Johnston, pleaded guilty on April 2, 2018, to conspiracy to distribute and possess with the intent to distribute Oxycodone. He is scheduled to be sentenced on December 3, 2018.
- Raymond Walker, 47, of Cranston, pleaded guilty on June 25, 2018, to possession with intent to distribute Oxycodone and Social Security fraud. He is scheduled to be sentenced on December 7, 2018.
- David Rose, 59, of Providence, pleaded guilty on March 7, 2018, to possession with intent to distribute Oxycodone. On October 3, 2018, he was sentenced to two years probation.
- Victoria Rose-Coccia, 29, of Pawtucket, pleaded guilty on February 28, 2018, to conspiracy to distribute and possess with the intent to distribute Oxycodone. On June 25, 2018, she was sentenced to 24 months imprisonment and 3 years supervised release.
A fifth individual, Tammy Bonham, 53, of Providence, is awaiting trial on a charge of conspiracy to acquire or obtain possession of a controlled substance by misrepresentation, fraud, forgery, or subterfuge; misbranding drugs.
The cases are being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the United States Food and Drug Administration Office of Criminal Investigations.
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Lawrence Man Pleads Guilty to Drug Trafficking and Firearm ChargesRead the Press Release
CONCORD – Ruben Gomez, 34, of Lawrence, Massachusetts pleaded guilty in federal court to possession and distribution of a controlled substance and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, the defendant sold cocaine to an individual who was cooperating with law enforcement officers in Nashua, New Hampshire. On the day of his arrest, he carried a firearm with him to sell cocaine and oxycodone.
Ruben is scheduled to be sentenced on January 28, 2019.
“When drug traffickers carry firearms, they pose a grave risk to the general public,” said U.S. Attorney Murray. “In order to protect our community, we will be aggressive in prosecuting criminals who use guns. Armed drug traffickers who choose to come into our state should understand that they will be arrested and prosecuted to the fullest extent of the law.”
This matter was investigated by the Drug Enforcement Administration and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
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Law Enforcement Agencies Join Forces to Prevent Violent Crime in HuntsvilleRead the Press Release
HUNTSVILLE– A task force established to prevent violent crime in the City of Huntsville held its inaugural meeting today at the Huntsville Police Department, announced U.S. Attorney Jay E. Town and Huntsville Police Chief Mark McMurray.
The Huntsville Public Safety Task Force is an effort between the United States Attorney’s Office and the Huntsville Police Department to develop a strategic plan for preventing violent crime in the City of Huntsville and the metro area. Joining Town and McMurray on the task force are representatives of the Mayor’s Office, Madison County Sheriff’s Office, Madison County District Attorney’s Office, Madison Police Department, Decatur Police Department, Alabama Board of Pardons and Paroles, Huntsville Housing Authority, and the federal law enforcement agencies FBI, Bureau of Alcohol, Tobacco and Firearms and Explosives, Drug Enforcement Administration, U.S. Marshals Service and Homeland Security Investigations.
“The formation of this Task Force marks the beginning of a strategic partnership between federal, state and local law enforcement to utilize enhanced crime intelligence to aggressively pursue the worst offenders in our city,” Town said. “The Task Force provides a needed platform to target alpha criminals for prosecution in the forum where the sanction is the highest, remove them from our streets with severe punishment, and return our communities back to their rightful owners...the law abiding citizens. Bed space in state and federal prisons awaits.”
“The HPSTF will be a great enhancement in our fight against violent criminals not only in our city but in North Alabama, McMurray said.” “Our Mission in this Task Force will be to systematically remove the most violent criminals and repeat offenders from the top down.” “The criminal intelligence derived from this list of repeat violent offenders will remain law enforcement sensitive information.” “This multi-agency relationship with federal authorities will greatly enhance sentencing these offenders and keep our city safe.” “We appreciate and look forward to working with Jay Town and his office in making this a success for everyone involved.”
“Huntsville is one of the safest cities in the country, and we want to keep it that way,” said Mayor Tommy Battle. “We are pleased to work proactively and collaboratively with our law enforcement partners in this initiative. It sends a powerful message to criminals – we won’t tolerate violent behavior, and we will find you, prosecute you, and put you in prison.”
The task force incorporates principles of Project Safe Neighborhoods which is the Department of Justice’s violent crime reduction strategy. By these agencies working together, it allows the task force to have a comprehensive utilization of multi-level resources to plan, collect, process, analyze and disseminate information among each other and to make targeting and capturing key offenders easier. Each agency will have an operational expectation unique to their department with the collective goal of producing useful intelligence on the worst criminal elements so that investigations can yield successful prosecutions in the jurisdiction where the punishment is the most significant. This allows the community and its citizens to enjoy the absence of these worst offenders for the longest possible time without reprisal.
Reinvigorated by Attorney General Jeff Sessions last year, PSN is a nationwide Department of Justice program committed to reducing violent crime by networking law enforcement agencies. PSN also provides funding to local and state agencies to assist them with departmental or agency operational needs. United States Attorney Town is the lone U.S. Attorney on the national Violent Crimes Reduction Coordinating Committee, which oversees the PSN program.
https://www.al.com/news/2018/10/north-alabama-task-force-targets-the-most-violent-criminals-and-repeat-offenders.html
Kern County Resident Admits to Aggravated Identity TheftRead the Press Release
FRESNO, Calif. —Hazel Turner, 44, of Tehachapi, pleaded guilty today to aggravated identity theft, United States Attorney McGregor W. Scott announced.
According to court documents, between February 2014 and March 2014, Turner used the means of identification of another person to falsify and electronically submit federal tax returns for the purpose of fraudulently obtaining money belonging to the United States.
This case was the product of an investigation by the Internal Revenue Service Criminal Investigations and the Kern County Sheriff’s Office. Assistant United States Attorney Melanie L. Alsworth is prosecuting the case.
Turner is scheduled to be sentenced by Judge Lawrence J. O'Neill on January 7, 2019. Turner faces a statutory penalty of 2 years in prison, a $250,000 fine, and up to 3 years of supervised release. 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.
Kenneth Nickerson Sentenced to 57 Months for Threatening to Assault A Social Security Administration EmployeeRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew B. Birge announced today that Kenneth L. Nickerson, 53, of Ludington, Michigan, was sentenced to 57 months in federal prison for threatening to assault a Social Security Administration employee. U.S District Judge Janet T. Neff imposed the sentence.
On June 6, 2017, Mr. Nickerson, who was upset about the level of Supplemental Security Income benefit payments he was receiving, threatened to physically assault a Social Security Administration Claims Specialist working in the Administration’s Ludington, Michigan office. Mr. Nickerson had to be removed from the building and was banned from reentering the property. A month later, on July 6, 2017, Nickerson returned to the vicinity of the Social Security Administration office and sat on a curb across the street. When questioned by officers, Nickerson said he was waiting for the Claims Specialist to finish working and exit the building, whereupon Nickerson planned to “beat him to death.”
“We take threats against federal employees seriously,” Birge said. “Anyone who threatens a federal employee just because he or she is doing their job will be prosecuted to the fullest extent of the law.”
Tracey Thanos, the Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Chicago Field Division echoed these comments. “Employee safety is of paramount concern to the Social Security Administration.” she said. “The Social Security Administration’s Office of Inspector General will investigate and pursue criminal prosecution of any individual who threatens our employees. We appreciate the U.S. Attorney’s Office for prosecuting this individual for this serious offense.”
The Social Security Administration – Office of Inspector General investigated the case. Assistant U.S. Attorney Clay Stiffler handled the prosecution.
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Kansas City Man Pleads Guilty to Bank Robbery in LeawoodRead the Press Release
KANSAS CITY, KAN. – A Kansas City man pleaded guilty Monday to robbing a bank in Leawood, U.S. Attorney Stephen McAllister said.
Lorenzo Moore, 48, Kansas City, Mo., pleaded guilty to one count of armed bank robbery. In his plea, he admitted that on July 11, 2017, he robbed the BMO Harris Bank at 8840 State Line Road in Leawood, Kan. According to documents filed in federal court, Moore was carrying a messenger-style bag when he gave a clerk a note saying: “Bomb and gun, place money on counter, no alarms, no dye packs.”
Forensic analysis of the note Moore left in the bank revealed a fingerprint that led investigators to arrest Moore. Moore told investigators that during the robbery he put a small box on the counter so the teller’s imagination would “run wild.”
Sentencing is set for Jan. 14. He faces a sentence of up to 25 years in federal prison and restitution of $12,575. McAllister commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Iowa Nurse Who Took Pain Medications from Nursing Home Patients Pleads GuiltyRead the Press Release
An Iowa licensed professional nurse (LPN) who took pain medications from the residents of two nursing homes in 2016 and 2018 pled guilty today in federal court in Cedar Rapids.
Lacey Staveley, age 35, from Evansdale, Iowa, was convicted of one count of acquiring a controlled substance by misrepresentation, fraud, deception, or subterfuge, and one count of false statements relating to health care matters.
In a plea agreement, Staveley admitted that, in November 2016, while employed at the Cedar Falls Health Care Center, a nursing home in Cedar Falls, Iowa, she used her patients’ identities to obtain controlled substances, specifically pills containing hydrocodone, by accessing her patients’ prescribed medications and diverting those pain pills to herself. Staveley’s victims were each long-term residents of the nursing home who had chronic pain, and they were both on Medicare at the time. To cover up her scheme, Staveley destroyed an original medication log, placed it in a trash can, and replaced the log with a false medication log. When the nursing home discovered her theft, Staveley provided the nursing home with a fake urine sample that actually consisted of toilet water. Because the sample obviously had flecks of toilet paper in it and no urine color, the nursing home obtained an actual urine sample from Staveley. This second test was positive for opiates, marijuana, and hydrocodone. The nursing home terminated Staveley’s employment.
Staveley also admitted in her plea agreement that, in 2018, she was again working as a LPN for another nursing home in the Cedar Valley, this time Harmony House in Waterloo, Iowa. Staveley did not disclose her prior employment at the Cedar Falls Health Care Center to Harmony House. Then, in January 2018, Staveley took two oxycodone pills from a patient’s medication stocks and replaced the pills in the original blister pack with an anti-psychotic drug that did not provide relief from pain. This patient complained of pain constantly and complained of pain after he did not receive all of his medication. Staveley also admitted that she took four narcotic pills, containing Vimpat, from another nursing home patient and replaced those pills with an anti-seizure drug that had a similar shape and color. This second patient at Harmony House was non-verbal and could not complain of pain. Harmony House also terminated Staveley’s employment.
This prosecution is part of the Medicare Fraud Strike Force operations, which are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Staveley remains on bond previously set pending sentencing. Staveley faces a possible maximum sentence of 9 years’ imprisonment, a $500,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Iowa Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2031.
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Individuals Charged with Conspiracy to Distribute Marijuana in Utah, Other States Through Use of Mulitple Suppliers and DriversRead the Press Release
SALT LAKE CITY – Three individuals charged in a superseding indictment with conspiracy to transport hundreds of pounds of marijuana from California to Utah and throughout the United States were arraigned on the charges in federal court Friday morning. The indictment alleges the defendants used the drug organization to generate millions of dollars in marijuana cash proceeds to support various business ventures.
Charged in the indictment are Gabriel Seth Elstein, age 33, and Angela Christina Elstein, age 32, both of Park City, and Scott Dale Gordon, age 48, of St. George. A Utah company, Dumbles Holdings, LLC, is also named in the indictment. The Elsteins are managing members of Dumbles Holdings, which was established in 2015 with offices in Salt Lake City.
In addition to the drug trafficking conspiracy count, the 13-count indictment charges possession with intent to distribute a controlled substance, conspiracy to commit money laundering, promotion of money laundering, concealment money laundering, and money laundering. The indictment alleges the defendants obtained sizable quantities of marijuana for distribution from wholesale marijuana suppliers in northern California and recruited drivers to deliver marijuana loads from California to Salt Lake City, Minnesota, Illinois, and Wisconsin. They then utilized retail distributors to sell the marijuana in destination cities.
The indictment alleges the defendants committed overt acts in furtherance of the alleged drug distribution conspiracy. According to the indictment, the defendants used multiple marijuana suppliers and hired multiple drivers to transport the marijuana to Utah and around the country.
Count 4 of the indictment charges the three with conspiracy to commit money laundering. It alleges the defendants took steps designed to conceal and disguise the nature, location, source, ownership, and control of the proceeds of the drug trafficking organization. The count alleges that from at least April 2007 through December 2013, the defendants purchased and distributed at least 2,500 pounds of marijuana and laundered at least $5 million in marijuana drug proceeds through Bondad Productions, a business that promoted electronic music/rave shows, and The Complex, both Salt Lake City businesses.
Beginning in 2009 and continuing to September 2010, Gordon and Elstein began construction on a music venue called The Complex. The cost of the construction was at least $1.3 million. The indictment alleges that approximately $400,000 came from marijuana cash proceeds previously laundered through Bondad Productions and The Complex bank accounts. The remaining amount of approximately $900,000 was marijuana cash proceeds paid directly to companies and individuals involved in the construction. Specifically, the indictment alleges that Gordon made cash payments to an individual referred to as L.M., in the indictment. L.M. was functioning as the foreman for the construction project and was responsible for paying the construction companies involved in the project. The payments Gordon made to L.M. were shrink-wrapped plastic bags in $50,000 increments and made on almost a weekly basis.
The indictment further alleges that Gordon used marijuana cash proceeds to pay expenses for music shows.
“When it comes to marijuana, it’s all about the cash. Sophisticated organizations are driven by profits to exploit the insatiable desire for drugs in America. This multi-year investigation required the professional attention of federal agents with IRS-Criminal Investigation and the DEA Metro Narcotics Task Force. Without their hard work, there would not be consequences for drug traffickers and their associates who would try to hide under a disguise of seemingly lawful enterprise,” U.S. Attorney John W. Huber said today. “In Utah, the United States Attorney will pursue justice for marijuana criminal organizations who operate outside the bounds of the law.”
The indictment also seeks forfeiture of property derived from the proceeds of the alleged criminal conduct including The Complex located at 536 West 100 South, Salt Lake City and two properties in Park City located at 7467 Tall Oaks Circle and 4268 Hilltop Drive. The Complex is not being shut down and will remain open.Gabriel Seth Elstein and Scott Dale Gordon were initially charged in an indictment returned in February. Both were released on conditions of pre-trial release. Angela Christina Elstein was added to the superseding indictment in September. She was released at Friday’s hearing.
The defendants face a potential mandatory-minimum sentence of 10 years to life in prison if they are convicted of the conspiracy to distribute count in the indictment. They pleaded not guilty to the charges at Friday’s hearing and the case was set for trial on Dec. 14, 2018, before U.S. District Judge Clark Waddoups. Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Special agents of IRS-Criminal Investigation and the DEA Metro Narcotics Task Force are investigating the case. Federal prosecutors in the U.S. Attorney’s Office in Salt Lake City are prosecuting the case.
Indal Technologies Agrees to Pay $3.5 Million to Settle False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – The Department of Justice announced today that Indal Technologies Inc. (Indal) has agreed to pay $3.5 million to resolve allegations that it knowingly sold defective helicopter landing systems designed for U.S. Navy destroyers. Indal, of Ontario, Canada, is a division within Curtiss-Wright Corporation of Charlotte, North Carolina.
Since the 1970s, Indal has produced the Recovery, Assist, Secure, and Traverse (RAST) system attached to U.S. Navy’s Arleigh-Burke class destroyers. RAST systems allow helicopters to land on destroyers.
The RAST system includes a device that locks a hovering helicopter onto a trolley. Once locked in place, the helicopter moves along a series of steel track plates into a shipboard hangar. The trolley must remain securely connected to the track plates, because the helicopter may be required to land during rough seas and high winds. The Navy’s contracts for RAST systems expressly required track plates made of HY100 steel due to the material’s increased strength, combat ruggedness, and protection from corrosion.
The settlement announced today resolves allegations that Indal, without informing the Navy, knowingly substituted a different, less expensive type of steel in numerous RAST system track plates delivered to the Navy.
“When government contractors supply equipment to our armed forces that fail to meet performance standards, they not only cheat taxpayers, but can put service member lives at risk,” said Assistant Attorney General of the Justice Department’s Civil Division Joseph H. Hunt. “Today’s settlement demonstrates our commitment to ensuring our military receives products that meet its requirements and for which it has paid.”
“American taxpayers are entitled to get what they pay for under government contracts, and that is especially true when the health and safety of U.S. armed forces are at stake,” U.S. Attorney Carpenito said. “This office will continue to pursue and hold accountable those who, like Indal, defraud the government by providing substandard goods and services in order to enrich themselves.”
“Fraud is never a victimless crime. This case of using inferior materials damaged the readiness of U.S. forces. The victims are not just our men and women in uniform, but all American taxpayers. NCIS will continue to tirelessly pursue all those who seek to take advantage of the Department of the Navy and its interests while keeping the procurement system fair and honest,” said Special Agent in Charge Leo S. Lamont of the Naval Criminal Investigative Service.
This settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of New Jersey. In the District of New Jersey, the government was represented by Senior Litigation Counsel Anthony J. LaBruna and Assistant U.S. Attorney Mark Orlowski of the Civil Division, Newark.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Indal Technologies Agrees to Pay $3.5 Million to Settle False Claims Act AllegationsRead the Press Release
The Department of Justice announced today that Indal Technologies Inc. (Indal) has agreed to pay $3.5 million to resolve allegations that it knowingly sold defective helicopter landing systems designed for U.S. Navy destroyers. Indal, of Ontario, Canada, is a division within Curtiss-Wright Corporation of Charlotte, North Carolina.
Since the 1970s, Indal has produced the Recovery, Assist, Secure, and Traverse (RAST) system attached to U.S. Navy’s Arleigh-Burke class destroyers. RAST systems allow helicopters to land on destroyers.
The RAST system includes a device that locks a hovering helicopter onto a trolley. Once locked in place, the helicopter moves along a series of steel track plates into a shipboard hangar. The trolley must remain securely connected to the track plates, because the helicopter may be required to land during rough seas and high winds. The Navy’s contracts for RAST systems expressly required track plates made of HY100 steel due to the material’s increased strength, combat ruggedness, and protection from corrosion.
The settlement announced today resolves allegations that Indal, without informing the Navy, knowingly substituted a different, less expensive type of steel in numerous RAST system track plates delivered to the Navy.
“When government contractors supply our armed forces with equipment that fails to meet performance standards, they not only cheat taxpayers, but they put at risk the safety of our service members,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division. “Today’s settlement demonstrates our commitment to ensuring that the military receives products that meet its requirements and for which it has paid.”
“American taxpayers are entitled to get what they pay for under government contracts, and that is especially true when the health and safety of U.S. armed forces are at stake,” said U.S. Attorney Carpentino for the District of New Jersey.” This Office will continue to pursue and hold accountable those who, like Indal, defraud the government by providing substandard goods and services in order to enrich themselves.”
“Fraud is never a victimless crime. This case of using inferior materials damaged the readiness of U.S. forces. The victims are not just our men and women in uniform, but all American taxpayers. NCIS will continue to tirelessly pursue all those who seek to take advantage of the Department of the Navy and its interests while keeping the procurement system fair and honest,” said Special Agent in Charge Leo S. Lamont of the Naval Criminal Investigative Service.
This settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of New Jersey. The investigation was conducted by the Naval Criminal Investigative Service and the Defense Contract Audit Agency.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Hermon Woman Pleads Guilty to Heroin, Fentanyl and Crack Trafficking ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Erica Oliveira, 29, of Hermon, Maine, pled guilty today in U.S. District Court to conspiracy to distribute heroin, fentanyl and cocaine base, commonly known as “crack.”
According to court records, between January 2016 and February 2017, Oliveira conspired with others to acquire heroin, fentanyl and crack in Waterbury, Connecticut and distribute it in Penobscot County. The defendant allowed her Hermon residence to be used to distribute heroin and facilitated the drug dealing activities of others.
The defendant faces up to 20 years in prison, a $1,000,000 fine, and between three years and life on supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Health Care CEO Pleads Guilty to $150 Million Health Care Fraud Scheme Involving Harmful Injections and Unnecessary Prescription of Millions of OpioidsRead the Press Release
A health care CEO pleaded guilty today to a superseding indictment as part of an investigation into a $300 million health care fraud scheme that involved the distribution of over 6.6 million dosage units of controlled substances and the administration of medically unnecessary injections that resulted in patient harm.
Attorney General Jeff Sessions, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Region and Special Agent in Charge Manny Muriel of IRS Criminal Investigation (IRS-CI) Detroit made the announcement.
Mashiyat Rashid, 38, of West Bloomfield, Michigan, was the CEO of the Tri-County Wellness Group of medical providers in Michigan and Ohio, and pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud, and one count of money laundering. In connection with his plea agreement, Rashid agreed to the entry of a forfeiture money judgment in the amount of $51,396,917.70, as well as forfeiture to the United States of property traceable to proceeds of the health care fraud scheme, including over $11.5 million, commercial real estate, residential real estate, and a Detroit Pistons season ticket membership.
“The Department of Justice has made ending the opioid crisis a top priority and taken historic new steps to stop the spread of addiction,” said Attorney General Sessions. “That includes prosecuting important cases like this one. The defendant and physicians working for him allegedly flooded the streets with some 4.2 million unnecessary doses of drugs like oxycodone and required patients to undergo expensive and unnecessary back injections in exchange for pills. And while people were suffering, this corporate executive lived in luxury funded by ill-gotten gains. Today’s guilty plea helps us bring the defendant to justice and reduce the supply of illegal drugs flowing into our communities. And so I want to thank our FBI agents, our partners with HHS and IRS Criminal Investigation and everyone else who helped investigate and prosecute this case. Opioid prescription abuse is clearly a cause of some of the addiction we are seeing today. Successful conclusions of important cases like this one will have a great impact. We are not through yet. There will be more cases like this. Ending opioid prescription abuse is achievable and we intend to end it.”
“Health Care Fraud diverts taxpayer dollars from Medicare and lines the pockets of dishonest health care providers,” said U.S. Attorney Schneider. “This case is particularly troubling in that Rashid, through his clinics, made Michigan’s opioid crisis even worse by prescribing over six million dosages of medically unnecessary opioids to individuals who were already suffering from opioid addiction.”
“Health care fraud schemes such as these threaten the vital trust between a patient and his or her health care provider, undermine the integrity of our health care system, and cost all Americans billions of dollars,” said FBI Special Agent in Charge Slater. “Americans already struggling with health care issues and rising premiums are further burdened with each dollar lost to fraud. To those dishonest and unethical physicians and healthcare providers who prioritize profits over their pledge to provide honest services to those in need, the message should be clear: that the collective resources of local, state and federal law enforcement will expose these schemes and will bring you to justice.”
“Ensuring the appropriate prescribing and use of controlled substances is essential to protecting the health and safety of patients and the Medicare program,” said HHS-OIG Special Agent in Charge Pugh. “Health care professionals play a key role in combatting opioid misuse but some choose to exploit patients and commit criminal acts in order to pursue financial gain and when this happens the OIG and our law enforcement partners will be there to hold them accountable.”
“Hippocratic Oaths and Laws are in place for a reason and in this particular case, it’s about controlling medically unnecessary dosages and administered injections,” said IRS-CI Special Agent in Charge Muriel. “Mashiyat Rashid and others allowed greed to drive their moral compass, contributing to the growing opioid epidemic our nation is facing. IRS-CI and its law enforcement partners will painstakingly work, day in and day out, to catch these greedy healthcare providers in efforts to keep dangerous prescriptions off the streets of our communities.”
In connection with his guilty plea, Rashid stated that he was the CEO of Tri-County Wellness Group, and owned, controlled and operated numerous pain clinics, laboratories and other providers in Michigan and Ohio. As alleged in the superseding indictment, from 2008 until their arrest in 2017, Rashid and physicians working in Rashid’s clinics conspired to obtain patients by prescribing over 4.2 million dosage units of medically unnecessary controlled substances, including oxycodone, hydrocodone and oxymorphone, to Medicare beneficiaries, some of whom were addicted to narcotics. Some of these opioids were allegedly resold on the street.
As part of his plea, Rashid admitted that he conspired with physicians to require Medicare beneficiaries who wished to obtain controlled substances to submit to expensive, medically unnecessary, and painful injections. Rashid paid physicians based on the number of injections that Medicare paid for, regardless of the medical necessity of the injections. In turn, the physicians conducted these repetitive and unnecessary injections on patients in order to increase revenue for Rashid, themselves, and their co-conspirators. Rashid stated that the beneficiaries included vulnerable patients, including those addicted to opioids, who were willing to submit to unnecessary and painful injections in order to obtain pills.
When Medicare conducted a medical review of the injection claims, it determined that 100 percent of the claims were not eligible for Medicare reimbursement and summarily suspended the medical billing privileges of one of the pain clinics involved in the scheme. In order to conceal the continued billing of these fraudulent claims to Medicare, the guilty plea states, Rashid and others created new shell companies that they enrolled in Medicare to keep billing the same fraudulent claims, often changing only the name of the company on the door to the medical practice and/or inventing new suite numbers to conceal the continuation of the fraudulent practices at the same location.
Rashid also owned a diagnostic laboratory and caused physicians to order medically unnecessary urine drug testing from the laboratory. When Medicare conducted a medical review of claims submitted by the laboratory, it determined that 95 percent of the claims were not eligible for Medicare reimbursement. In order to conceal the continued billing of these fraudulent urine drug testing claims to Medicare, the guilty plea states, Rashid and others created a new corporate entity that they enrolled in Medicare so that physicians could keep ordering the same fraudulent urine drug testing claims through this new entity.
In addition, Rashid stated in his guilty plea that he paid illegal health care kickbacks to obtain patients and solicited illegal kickbacks and bribes for physicians to refer Medicare beneficiaries to specific third-party home health agencies, laboratories and diagnostic providers even though those referrals were medically unnecessary.
Further, Rashid pleaded guilty to committing money laundering in connection with a $6.6 million wire transfer on April 13, 2016. The superseding indictment alleges that Rashid transferred the proceeds derived from the conspiracy to live an extravagant lifestyle and spend millions of dollars on luxury clothes from retailers like Hermes, rare Richard Mille watches, and exotic automobiles such as a Lamborghini and Rolls Royce Ghost; a mansion and other real estate in the Detroit, Michigan area; and to sit courtside or in the first row of NBA basketball games, including the NBA Finals.
Rashid; Spilios Pappas, 61, of Monclova, Ohio; Joseph Betro, 57, of Novi, Michigan; Tariq Omar, 61, of West Bloomfield, Michigan; and Mohammed Zahoor, 51, also of Novi, were each charged in a superseding indictment with one count of conspiracy to commit health care fraud and wire fraud. Pappas, Betro, Omar, and Zahoor were each additionally charged with one count of health care fraud. All of the defendants were previously charged in an original indictment, along with Yasser Mozeb, 35, of Oakland County, Michigan and Abdul Haq, 72, of Ypsilanti, Michigan. Mozeb and Haq have pleaded guilty, along with 12 other defendants, including seven other physicians. The case is pending before U.S. District Judge Denise Page Hood of the Eastern District of Michigan. Trial has been scheduled to begin on Nov. 27 before Judge Hood. Rashid’s sentencing is set for April 11.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG and IRS-CI. Trial Attorney Jacob Foster of the Criminal Division’s Fraud Section is prosecuting the case. The financial investigation into Rashid’s assets was conducted by a partnership between the FBI, IRS, U.S. Marshals Service, Department of Justice’s Health Care Fraud Unit, and the U.S. Attorney’s Office’s Forfeiture and Financial Litigation Unit. The group conducted an extensive pre-indictment investigation and continued to support the prosecution through today’s guilty plea. Assistant U.S. Attorney Shankar Ramamurthy and DOJ Trial Attorney Jacob Foster led the financial investigation.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, 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.
Harrisburg Man Sentenced to Five Years in Federal Prison for Dealing Heroin and Illegally Possessing a FirearmRead the Press Release
EUGENE, Ore. – Shawn Sherman Wilson, Jr., 27, of Harrisburg, Oregon, was sentenced today to 60 months in federal prison and five years’ supervised release for dealing heroin and illegally possessing a firearm.
According to court documents, law enforcement began investigating Wilson in July 2017 after receiving a tip from a confidential source that he was trafficking heroin in and around Eugene. An undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) contacted Wilson and arranged to purchase an ounce of heroin. They agreed to meet on July 24, 2017 in front of Taylor’s Bar & Grill, a popular night spot in Eugene near the University of Oregon.
At the meeting location, the ATF agent entered Wilson’s car, sitting in the front passenger seat. Wilson had a Smith & Wesson 9mm semi-automatic pistol sitting between his legs with the pistol’s handle positioned for easy access. The agent said “I see you got the heat.” Wilson replied, “yeah, while I’m running around town.” Wilson grabbed the firearm and showed it to the agent, telling the agent the firearm belonged to his girlfriend and he was interested in purchasing another.
The ATF agent subsequently completed the heroin purchase, giving Wilson $1,200 in cash. Wilson was later arrested in Douglas County on August 6, 2017. When arrested, Wilson possessed a Smith & Wesson 9mm pistol matching the description of the firearm observed by the undercover agent during the controlled buy.
Wilson previously pleaded guilty to one count each of possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime on May 30, 2018.
This case was investigated by ATF and prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Garden City Man Was Armed While Selling Fentanyl-Laced HeroinRead the Press Release
WICHITA, KAN. – A Garden City man Monday admitted he was armed while selling a dangerous mixture of fentanyl and heroin, U.S. Attorney Stephen McAllister said.
Adrian Lashawn Perkins, 41, Garden City, Kan., pleaded guilty to one count of unlawful possession of firearms in furtherance of drug trafficking. The case began when Perkins sold drugs to undercover investigators. When they served a search warrant at Perkins’ apartment, investigators found packages of fentanyl-laced heroin and four guns including a 9 mm handgun on the floor, a .22 caliber pistol under a couch, a 9 mm handgun under the mattress at the foot of a bed, and a 9 mm handgun in an unlocked safe next to the bed.
Fentanyl is a powerful synthetic opioid that is considered dangerous even in small amounts. The Justice Department has issued warnings to first responders urging them to protect themselves from exposure to it.
Sentencing is set for Jan. 3. The parties have agreed to recommend a sentence of seven years in federal prison. McAllister commended the Garden City Police Department, the Finney County Sheriff’s Office and Assistant U.S. Attorney Matt Treaster for their work on the case.
The case was prosecuted under the Justice Department’s Project Safe Neighborhoods initiative.
Fourth Defendant Charged in Immigrant Kidnapping and Extortion Scheme Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on October 12, 2018, PASCUAL RODRIGUEZ, 50, a citizen of the Dominican Republic last residing in New York, New York, pleaded guilty in New Haven federal court to one count of kidnapping.
According to court documents and statements made in court, on multiple occasions, Rodriguez approached victims after they exited buses at the Port Authority in New York. The victims included women, men and children from Central American countries who did not speak English and were seeking asylum in the U.S. Rodriguez, sometimes posing as an immigration officer, falsely told the victims that their connecting bus was unavailable and asked the victims for a phone number of a family member in the U.S. He then contacted family members and informed them that the victims could not travel by bus, and that he would arrange for the transportation of the victims in exchange for money. He then brought the victims to his co-conspirator, Lucilo Cabrera, who then drove the victims around for hours, refusing to release them until their families agreed to pay money.
Rodriguez is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport on January 4, 2019, at which time Rodriguez faces a maximum term of imprisonment of life.
Rodriguez has been detained since his arrest on January 23, 2018.
On March 9, 2018, a federal jury in Bridgeport found Cabrera, Francisco Betancourt and Carlos Antonio Hernandez guilty of offenses related to this extortion and kidnapping scheme. They also await sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Vanessa Richards and Jacabed Rodriguez-Coss.
Four Men and Seven Companies Indicted for Billion-Dollar Telemedicine Fraud Conspiracy, Telemedicine Company and CEO Plead Guilty in Two Fraud SchemesRead the Press Release
GREENEVILLE, Tenn.– On October 12, 2018, the District Court for the Eastern District of Tennessee unsealed a 32-count indictment charging four individuals and seven companies in a $1 billion health care fraud scheme. The court also unsealed an additional two plea agreements and an information charging another individual and his company for their role in the scheme.
Andrew Assad, 33, of Palm Harbor, Florida, Peter Bolos, 41, of Lutz, Florida, and Michael Palso, 44, of Odessa, Florida, were indicted along with their compounding pharmacies, Synergy Pharmacy Services, located in Palm Harbor, and Precision Pharmacy Management, located in Clearwater. Co-conspirator Larry Everett Smith, 48, of Pinellas Park, Florida, also a pharmacy compounder, and his companies Tanith Enterprises, ULD Wholesale Group, Alpha-Omega Pharmacy, all located in Clearwater, Germaine Pharmacy located in Tampa, Florida, and Zoetic Pharmacy located in Houston, Texas, were all also named as defendants. All the defendants were charged with conspiracy to commit health care fraud, mail fraud, and introducing misbranded drugs into interstate commerce.
On September 26, 2018, HealthRight LLC, a telemedicine company with locations in Pennsylvania and Florida, and Scott Roix, 52, of Seminole, Florida, and the CEO of HealthRight, pleaded guilty to felony conspiracy for their roles in the telemedicine health care fraud scheme in a criminal information. Roix and HealthRight LLC, also pleaded guilty to conspiring to commit wire fraud in a separate scheme for fraudulently telemarketing dietary supplements, skin creams, and testosterone.
The indictment alleges that from June 1, 2015 through April 1, 2018, these individuals and companies, together with other persons and companies known to the grand jury, conspired to deceive tens of thousands of patients and more than 100 doctors located in the Eastern District of Tennessee and across the country for the purpose of defrauding private health care benefit programs such as Blue Cross Blue Shield of Tennessee out of approximately $174,000,000. The indictment further alleges that the defendants submitted not less than $931,000,000 in fraudulent claims for payment.
According to the indictment, the defendants set up an elaborate telemedicine scheme in which HealthRight fraudulently solicited insurance coverage information and prescriptions from consumers across the country for prescription pain creams and other similar products. The indictment states that doctors approved the prescriptions without knowing that the defendants were massively marking up the prices of the invalidly prescribed drugs, which the defendants then billed to private insurance carriers.
Assad, Bolos, Palso, and Smith appeared in court on October 11, 2018 before U.S. Magistrate Judge Anthony E. Porcelli in the U.S. District Court for the Middle District of Florida. All four individual defendants were released on bond and are scheduled for an initial appearance and arraignment in the U.S. District Court in the Eastern District of Tennessee before U.S. Magistrate Judge Clifton Corker on October 25, 2018.
If convicted, Assad, Bolos, Palso, and Smith face a term of up to 20 years in prison as to each mail fraud charge, up to 10 years in prison for the conspiracy, and up to three years in prison for introducing misbranded drugs into interstate commerce. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count. The companies face fines of up to twice the gross loss sustained as a result of the conspiracy. The indictment also seeks forfeiture of approximately $154,000,000.
In addition to their roles in the health care fraud conspiracy, the Information filed against Roix and HealthRight charged each of them with conspiring to commit wire fraud as part of a scheme to use HealthRight’s telemarketing facilities to fraudulently sell millions of dollars’ worth of products such as weight loss pills, skin creams, and testosterone supplements through concocted claims of efficacy and intentionally deficient customer service designed to stall consumer complaints.
Roix and HealthRight pleaded guilty before U.S. District Judge J. Ronnie Greer of the Eastern District of Tennessee. Roix faces a statutory maximum sentence of 5 years of imprisonment for each conspiracy. The Court set sentencing for February 13, 2019.
The investigation was coordinated by Assistant U.S. Attorneys T.J. Harker, David Gunn, and Anne-Marie Svolto of the U.S. Attorney’s Office for the Eastern District of Tennessee, and Trial Attorney John Claud for the Department’s Consumer Protection Branch. Assistant U.S. Attorneys T.J. Harker and David Gunn will prosecute the telemedicine conspiracy for the U.S. Attorney's Office for the Eastern District of Tennessee. Trial Attorney John Claud will represent the Department's Consumer Protection Branch in court proceedings.
The investigation was conducted by the Nashville, Tennessee, office of the U.S. Department of Health & Human Services Office of Inspector General; Nashville, Tennessee, office of the Food and Drug Administration Office of Criminal Investigations; Buffalo, New York, office of the U.S. Postal Service, Office of Inspector General; Knoxville and Johnson City, Tennessee, offices of the Federal Bureau of Investigation; Atlanta, Georgia, Office of Personnel Management Office of the Inspector General; and Tampa, Florida, office of Homeland Security Investigations. The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Members of the public are reminded that an indictment constitutes only charges and that every person or company is presumed innocent until guilt has been proven beyond a reasonable doubt.
For more information about the U.S. Attorney’s Office for the Eastern District of Tennessee, visit its website at https://www.justice.gov/usao-edtn. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
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Four Men and Seven Companies Indicted for Billion-Dollar Telemedicine Fraud Conspiracy, Telemedicine Company and CEO Plead Guilty in Two Fraud SchemesRead the Press Release
On October 12, 2018, the District Court for the Eastern District of Tennessee unsealed a 32-count indictment charging four individuals and seven companies in a $1 billion health care fraud scheme. The court also unsealed an additional two plea agreements and an information charging another individual and his company for their role in the scheme.
Andrew Assad, 33, of Palm Harbor, Florida, Peter Bolos, 41, of Lutz, Florida, and Michael Palso, 44, of Odessa, Florida, were indicted along with their compounding pharmacies, Synergy Pharmacy Services, located in Palm Harbor, and Precision Pharmacy Management, located in Clearwater. Co-conspirator Larry Everett Smith, 48, of Pinellas Park, Florida, also a pharmacy compounder, and his companies Tanith Enterprises, ULD Wholesale Group, Alpha-Omega Pharmacy, all located in Clearwater, Germaine Pharmacy located in Tampa, Florida, and Zoetic Pharmacy located in Houston, Texas, were all also named as defendants. All the defendants were charged with conspiracy to commit health care fraud, mail fraud, and introducing misbranded drugs into interstate commerce.
On September 26, 2018, HealthRight LLC, a telemedicine company with locations in Pennsylvania and Florida, and Scott Roix, 52, of Seminole, Florida, and the CEO of HealthRight, pleaded guilty to felony conspiracy for their roles in the telemedicine health care fraud scheme in a criminal information. Roix and HealthRight LLC, also pleaded guilty to conspiring to commit wire fraud in a separate scheme for fraudulently telemarketing dietary supplements, skin creams, and testosterone.
The indictment alleges that from June 1, 2015 through April 1, 2018, these individuals and companies, together with other persons and companies known to the grand jury, conspired to deceive tens of thousands of patients and more than 100 doctors located in the Eastern District of Tennessee and across the country for the purpose of defrauding private health care benefit programs such as Blue Cross Blue Shield of Tennessee out of approximately $174,000,000. The indictment further alleges that the defendants submitted not less than $931,000,000 in fraudulent claims for payment.
According to the indictment, the defendants set up an elaborate telemedicine scheme in which HealthRight fraudulently solicited insurance coverage information and prescriptions from consumers across the country for prescription pain creams and other similar products. The indictment states that doctors approved the prescriptions without knowing that the defendants were massively marking up the prices of the invalidly prescribed drugs, which the defendants then billed to private insurance carriers.
Assad, Bolos, Palso, and Smith appeared in court on October 11, 2018 before U.S. Magistrate Judge Anthony E. Porcelli in the U.S. District Court for the Middle District of Florida. All four individual defendants were released on bond and are scheduled for an initial appearance and arraignment in the U.S. District Court in the Eastern District of Tennessee before U.S. Magistrate Judge Clifton Corker on October 25, 2018.
If convicted, Assad, Bolos, Palso, and Smith face a term of up to 20 years in prison as to each mail fraud charge, up to 10 years in prison for the conspiracy, and up to three years in prison for introducing misbranded drugs into interstate commerce. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count. The companies face fines of up to twice the gross loss sustained as a result of the conspiracy. The indictment also seeks forfeiture of approximately $154,000,000.
In addition to their roles in the health care fraud conspiracy, the Information filed against Roix and HealthRight charged each of them with conspiring to commit wire fraud as part of a scheme to use HealthRight’s telemarketing facilities to fraudulently sell millions of dollars’ worth of products such as weight loss pills, skin creams, and testosterone supplements through concocted claims of efficacy and intentionally deficient customer service designed to stall consumer complaints.
Roix and HealthRight pleaded guilty before U.S. District Judge J. Ronnie Greer of the Eastern District of Tennessee. Roix faces a statutory maximum sentence of 5 years of imprisonment for each conspiracy. The Court set sentencing for February 13, 2019.
The investigation was coordinated by Assistant U.S. Attorneys T.J. Harker, David Gunn, and Anne-Marie Svolto of the U.S. Attorney’s Office for the Eastern District of Tennessee, and Trial Attorney John Claud for the Department’s Consumer Protection Branch. Assistant U.S. Attorneys T.J. Harker and David Gunn will prosecute the telemedicine conspiracy for the U.S. Attorney's Office for the Eastern District of Tennessee. Trial Attorney John Claud will represent the Department's Consumer Protection Branch in court proceedings.
The investigation was conducted by the Nashville, Tennessee office of the U.S. Department of Health & Human Services Office of Inspector General; the Nashville office of the Food and Drug Administration Office of Criminal Investigations; the Buffalo, New York, office of the U.S. Postal Inspection Service; the Knoxville and Johnson City, Tennessee, offices of the Federal Bureau of Investigation; the Atlanta, Georgia, Office of Personnel Management Office of the Inspector General; and the Tampa, Florida, office of Homeland Security Investigations. The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Members of the public are reminded that an indictment constitutes only charges and that every person or company is presumed innocent until guilt has been proven beyond a reasonable doubt.
For more information about the U.S. Attorney’s Office for the Eastern District of Tennessee, visit its website at https://www.justice.gov/usao-edtn. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Former U.S. Senate Employee Pleads Guilty to False Statements ChargeRead the Press Release
WASHINGTON – James A. Wolfe, 57, of Ellicott City, Maryland, a former staff employee of the U.S. Senate Select Committee on Intelligence (SSCI), pleaded guilty today to one count of making a false statement to special agents of the FBI during the course of an investigation into the unlawful disclosure of classified national security information.
The guilty plea was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, and Special Agent in Charge Timothy M. Dunham of the Counterintelligence Division of the FBI’s Washington Field Office.
Wolfe was indicted in June 2018 on three false statements charges. Under the plea agreement, the government will move to dismiss the remaining counts at sentencing.
At the time Wolfe made the false statement to the FBI, he was the Director of Security for the SSCI, a position he held for more than 28 years. As SSCI Director of Security, Wolfe was entrusted with receiving, maintaining, and managing classified national security information provided to the SSCI by the Executive Branch of the United States.
According to a statement of offense filed at the hearing, the FBI opened an investigation in April 2017 into the unauthorized disclosure of classified national security information that had appeared in a specific article published by a national news organization. In December 2017, during the course of the investigation, Wolfe was interviewed. Wolfe was asked specifically about whether he had been in contact with any reporters and, if so, who those reporters were, and what were the nature and extent of those contacts and the means by which those contacts occurred.
By his guilty plea, Wolfe admitted making false statements to the FBI concerning whether he had provided unclassified, but not otherwise publicly-available, information to reporters. Specifically, on Oct. 16, 2017, and again on Oct. 24, 2017, Wolfe provided a particular reporter with non-public information concerning a witness who had been subpoenaed to testify before the SSCI. Wolfe also admitted making false statements to the FBI about his contacts with three additional reporters, including one of the authors of the aforementioned article.
The charge of making a false statement is a felony punishable by a statutory maximum of five years in prison and potential financial penalties. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The Honorable Ketanji Brown Jackson scheduled sentencing for Dec. 20, 2018.
The investigation into this matter is being conducted by the FBI’s Washington Field Office. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Ballantine and Tejpal S. Chawla and Special Assistant U.S. Attorney Laura Ingersoll of the District of Columbia, with assistance from the Counterintelligence and Export Control Section, National Security Division of the U.S. Department of Justice.
Former U.S. Senate Employee Pleads Guilty to False Statements ChargeRead the Press Release
James A. Wolfe, 57, of Ellicott City, Maryland, a former staff employee of the U.S. Senate Select Committee on Intelligence (SSCI), pleaded guilty today to one count of making a false statement to special agents of the FBI during the course of an investigation into the unlawful disclosure of classified national security information.
The guilty plea was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, and Special Agent in Charge Timothy M. Dunham of the Counterintelligence Division of the FBI’s Washington Field Office.
Wolfe was indicted in June 2018 on three false statements charges. Under the plea agreement, the government will move to dismiss the remaining counts at sentencing.
At the time Wolfe made the false statement to the FBI, he was the Director of Security for the SSCI, a position he held for more than 28 years. As SSCI Director of Security, Wolfe was entrusted with receiving, maintaining, and managing classified national security information provided to the SSCI by the Executive Branch of the United States.
According to a statement of offense filed at the hearing, the FBI opened an investigation in April 2017 into the unauthorized disclosure of classified national security information that had appeared in a specific article published by a national news organization. In December 2017, during the course of the investigation, Wolfe was interviewed. Wolfe was asked specifically about whether he had been in contact with any reporters and, if so, who those reporters were, and what were the nature and extent of those contacts and the means by which those contacts occurred.
By his guilty plea, Wolfe admitted making false statements to the FBI concerning whether he had provided unclassified, but not otherwise publicly-available, information to reporters. Specifically, on Oct. 16, 2017, and again on Oct. 24, 2017, Wolfe provided a particular reporter with non-public information concerning a witness who had been subpoenaed to testify before the SSCI. Wolfe also admitted making false statements to the FBI about his contacts with three additional reporters, including one of the authors of the aforementioned article.
The charge of making a false statement to special agents of the FBI is a felony punishable by a statutory maximum of five years in prison and potential financial penalties. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The Honorable Ketanji Brown Jackson scheduled sentencing for Dec. 20.
The investigation into this matter is being conducted by the FBI’s Washington Field Office. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Ballantine and Tejpal S. Chawla and Special Assistant U.S. Attorney Laura Ingersoll of the District of Columbia, with assistance from the Counterintelligence and Export Control Section, National Security Division of the U.S. Department of Justice.
Former Oil City Man Admits Possessing Numerous Firearms as a Convicted FelonRead the Press Release
PITTSBURGH, Pa – A former resident of Oil City, PA pleaded guilty in federal court to violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Emmett Freshcorn, age 30, pleaded guilty to one count of possession of firearms by a convicted felon before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on December 11, 2017, Freshcorn, who is a convicted felon, went into a gun store with another individual. Freshcorn gave that individual money to purchase a BMG, .50 caliber rifle. Freshcorn then carried the rifle out of the store and took possession of it. Further, on March 7, 2018, Special Agents from the Bureau of Alcohol, Tobacco, and Explosives recovered 10 more firearms and ammunitions from locations connected to Freshcorn in Oil City, PA.
Judge Bissoon scheduled sentencing for February 27, 2019. The law provides for a maximum total sentence of up to 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 offenses and prior record of the defendant. Freshcorn will continue to be detained pending sentencing.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, and the Oil City Police conducted the investigation leading to the plea in this case.
Former Employee of Retirement Center Sentenced for Stealing Identities of Elderly ResidentsRead the Press Release
Christopher Rhodes, age 53, of Lovejoy, Illinois, has been sentenced to a total of 36 months in prison for stealing the identities of elderly residents at a senior living facility where he used to work, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Rhodes previously pled guilty to three counts of wire fraud and one count of aggravated identity theft back in June of this year. In addition to his prison sentence, Rhodes was also ordered to pay restitution totaling $15,894.03.
Rhodes was formerly an employee of St. Paul’s Senior Community, a not-for-profit retirement community in Belleville, Illinois. In his position, Rhodes had access to residents’ medical, health and personally identifiable information (PII). Court proceedings established that from 2008 through July of 2017, Rhodes used names, social security numbers and other PII belonging to residents of St. Paul’s, without lawful authority, to obtain and maintain electric and gas service, water service, and satellite television service at his home.
The investigation was conducted by the United States Postal Inspection Service. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
Florida Man Receives 93 Month Sentence for Conspiring to Distribute Heroin and Possession of a Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Erskine Simmons, a 31 year old resident of Pensacola, Florida was sentenced to 33 months for conspiring to distribute heroin followed by 60 months for possession of a firearm in furtherance of that drug trafficking crime.
On June 22, 2018, according to a factual statement Simmons signed in connection with his guilty pleas to conspiring to distribute approximately 36.67 grams of heroin and possession of a firearm in furtherance of that drug trafficking crime, on May 1, 2017, deputies of the Mobile County Alabama Sheriff’s Office enlisted the aid of a cooperating defendant (CD) to introduce them to a heroin dealer he/she knew as “G”. After the CD made the introductions, an undercover deputy purchased approximately 4.95 grams of heroin from “G” (whose actual name is Erskine Simmons) for $1000. The undercover deputy also gave Simmons an additional $150 for the man who drove Simmons to the buy location. Conversations between the undercover deputy and Simmons regarding this transaction were captured on audio tape. On May 3, 2017, the undercover deputy contacted Simmons, on his own, and set up a buy of an additional 7.71 grams of heroin. The undercover deputy paid Simmons $1000 for the heroin and $150 for Simmons’ driver. The conversations between Simmons and the undercover deputy for this transaction were captured on audio tape. On May 9, 2017, the undercover deputy purchased an additional 24.01 grams of heroin from Simmons. The undercover deputy paid Simmons $2000 for the heroin and $200 for the driver. This time, Simmons was aided by a man who drove Simmons to the buy location knowing what Simmons intended to do once they arrived to meet the undercover deputy. Simmons agreed to pay the driver to transport Simmons to the buy location. To complete the sale of the 24.01 grams of heroin to the undercover deputy, Simmons asked a woman riding with them to exit the vehicle, get into the vehicle of the undercover deputy and give the undercover deputy the heroin. The woman agreed to do so, and did, knowing that the bag Simmons gave her to give to the undercover deputy contain a quantity of heroin. Conversations related to this transaction were recorded on audio tape. Deputies arrested Simmons, and his two co-horts immediately after the third transaction and used a drug dog to sniff around the vehicle used by the three to travel to the buy location. The drug dog alerted to the vehicle and it was searched. Seized from the vehicle was a small quantity of marijuana and a small quantity of cocaine taken from a purse. Also seized from the trunk of the vehicle was a camouflage book bag with an Iberia Firearms, .40 caliber pistol hidden inside. Simmons confessed to the three drug crimes and that he possessed the firearm for his protection.
Special Agents of the Department of Homeland Security/ICE investigated the case along with deputies of the Mobile County Sheriff’s Office and brought it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Five Plead Guilty in October to Federal Charges Related to a Violent Drug Distribution OrganizationRead the Press Release
Baltimore, Maryland – Five admitted members and confederates of the Old York Money Gang (OYMG), a gang that sustained itself in part through the distribution and sale of controlled substances, including crack cocaine, as well as through murder and other violent crimes, have pleaded guilty to federal drug or racketeering charges related to their membership in the gang. The gang operated throughout the Waverly Way neighborhood of Baltimore. The federal indictment charges murders, including the murder of McKenzie Elliott, a three-year-old girl who was shot to death on August 1, 2014, as acts of violence committed by members of the OYMG.
The following defendants, all of Baltimore, have entered guilty pleas:
Emmanuel Rose, age 27, pleaded guilty on October 1, 2018; Davonte Rich, a/k/a Chopper, age 24, pleaded guilty on October 2, 2018; Keith Wilson, age 25, pleaded guilty on October 3, 2018; Jason Snowden, age 22, pleaded guilty on October 10, 2018; and
Calvin Watson, a/k/a Monster, age 27, pleaded guilty on October 12, 2018.Rich and Snowden each pleaded guilty to participating in a racketeering conspiracy in connection with their membership in the OYMG. Watson, Rose, and Wilson each pleaded guilty to conspiracy to distribute and possess with intent to distribute between 280 and 840 grams of crack cocaine.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Interim Commissioner Gary Tuggle of the Baltimore Police Department.
“Disputes between rival drug gangs lead to so many tragic shootings and murders in Baltimore City,” said U.S. Attorney Robert K. Hur. “Often the victims are innocent bystanders, like little McKenzie Elliott. We will continue to work with our law enforcement partners to root out and to hold accountable the criminals who turn our neighborhoods into war zones, and to stop the senseless violence.”
“The pain and violence this gang has inflicted on Baltimore cannot be overstated,” said ATF Baltimore Special Agent in Charge Cekada. “They pushed drugs into neighborhoods knowing that addiction ruins lives, and they used firearms to intimidate and inflict violence to protect and expand their territory, showing no concern for innocent bystanders like McKenzie Elliott. ATF will continue to work relentlessly in our efforts to make Baltimore’s communities safer by taking criminals like members of the Old York Money Gang off the street.”
According to their plea agreements and other court documents, from January 2014 to April 2017, Rich, Snowden, Watson, Rose, and Wilson were all members and associates of the OYMG, a violent drug trafficking organization operating in the Waverly Way neighborhood in the northeastern district of Baltimore. OYMG is involved in criminal activity including murder, robbery, extortion, burglary, and narcotics trafficking in and around Baltimore. OYMG is a neighborhood gang, limiting its membership to persons that originate from or live in the Waverly Way neighborhood, and generally excluding “outsiders.” The gang extensively and frequently endorsed and promoted its existence through social media accounts and rap music videos, whereby members would display their association and advertise membership and activities of the gang.
Beginning in October 2016, the ATF and the Baltimore City Police Department conducted undercover purchases of cocaine base and heroin from OYMG members, including Watson and Rose. All of the defendants generally sold controlled substances at or around drug shops controlled and managed by the OYMG—and in coordination with coconspirators. According to their plea agreements and other court documents, OYMG members sold heroin, powder and crack cocaine, and marijuana in their territory in Waverly Way and elsewhere. Wilson was principally involved in the sale of prescription pills and marijuana and Rich principally distributed marijuana for the gang, in addition to his other gang activities.
According to Rich’s plea agreement, OYMG members regularly carried firearms to defend the gang’s territory and violently expelled OYMG rivals or antagonists. Throughout its existence, a primary source of revenue for the gang was the trafficking of narcotics and marijuana. The gang used violence to protect and further these criminal activities. For example, as detailed in Snowden’s plea, on February 5, 2016, Baltimore Police officers recovered a firearm and marijuana packaged for distribution from a car in which Snowden was riding. On October 2, 2017, two perpetrators robbed the owners of a restaurant directly across the street from an OYMG drug shop, stealing nearly $30,000. One of the assailants struck a female victim during the robbery, fracturing her eye socket. The victims knew Snowden and identified him as one of the robbers.
As detailed in Rich’s plea agreement, from July 30 to August 1, 2014, Rich and other OYMG members violently attacked three victims who had entered OYMG territory to support a female friend engaged in a fight with the sister of an OYMG member. During this attack, one of the victims (Victim #1) was stabbed. Two days later, the victims returned to the same OYMG drug shop, at which point an OYMG member fired multiple gunshots at the vehicle carrying the victims. One bullet struck Victim #1 in the head, while an errant bullet killed three-year-old McKenzie Elliott.
In addition, Tyron Brown, age 28, and Davin Lawson, age 27, both of Baltimore, previously pleaded guilty to participating in a drug distribution conspiracy, on August 15 and January 23, 2018, respectively. Lawson was sentenced to 80 months in federal prison on April 27, 2018.
U.S. District Judge George L. Russell, III has scheduled sentencing for Calvin Watson on December 19, 2018. Watson and the government have agreed that if the Court accepts the plea, Watson will be sentenced to 90 months in federal prison. Judge Russell has scheduled sentencing for Wilson, Brown, Snowden, Rose, and Rich for early 2019.
The four remaining defendants charged in the case are scheduled to go to trial on November 5, 2018.
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.
United States Attorney Robert K. Hur commended the ATF and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys David Metcalf and Michael C. Hanlon, who are prosecuting the case.
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Federal Prison Employee Sentenced for Defrauding Inmate FamiliesRead the Press Release
BEAUMONT, Texas – A 43-year-old Beaumont, Texas woman has been sentenced for her part in a conspiracy targeting federal inmates and their families in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Tanya L. Richard pleaded guilty on June 14, 2018, to conspiracy to commit wire fraud today and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia Crone. Richard was also ordered to pay restitution in the amount of $166,250.
According to information presented in court, while employed as an administrative employee of the Federal Correctional Complex in Beaumont, Richard was involved in a wide-spread fraud scheme targeting the families of federal inmates. Six persons, some of whom were former federal inmates, pleaded guilty to a similar charge last year in the same scheme and are currently serving federal prison sentences for their involvement. The nationwide, six-year scheme defrauded the relatives of federal inmates by falsely representing that they could obtain reductions in their relatives’ sentences in exchange for the payment of cash and wire transfers of funds. The payments were falsely represented to be for the payment for a network of confidential informants who would make undercover drug transactions under the direction of the courts and prosecutors which would allow the incarcerated inmates to ask the court for reductions of sentences for providing substantial assistance to the government under the Federal Rules of Criminal Procedure. In reality, the money was spent for the personal benefit of the defendants and there was never any network of informants or undercover transactions. Federal inmates do not have to pay for substantial assistance motions for reductions of sentences which normally only require information to be provided by such inmates against co-defendants as well as trial testimony.
Richard’s role in the scheme included obtaining confidential information from federal court presentence reports of inmates and drafting false cooperation agreements for inmate families that appeared to be from federal prosecutors and U.S. Attorneys. Richard is a former common-law spouse of Alvin James Warrick who pleaded guilty to a similar charge in the scheme last year. The scheme resulted in losses to inmate families from across the nation of over $4 million dollars. Richard was placed on administrative leave from her position at the federal prison after her indictment in April 2018.
“This kind of fraud threatens the public’s trust in the justice system,” said U.S. Attorney Joseph D. Brown. “The defendant targeted individuals and families who were vulnerable, and violated the trust that had been placed in her as a public servant. It was important that there be a real consequence for that.”
“Defendant misled federal inmates and their family members about the sentencing reduction process, and defrauded these victims of millions of dollars. Our office is committed to protecting the integrity of the criminal justice system and will work tirelessly to investigate these types of schemes,” said Monte A. Cason, Special Agent in Charge of the U.S. Department of Justice Office of the Inspector General’s Dallas Field Division.
“Ms. Richard used her position at the U.S. Bureau of Prisons for personal monetary gain, and is now being held accountable for her actions. The FBI's mission is to protect the civil rights of all individuals. Included under that protection are individuals who have been incarcerated and their families. After a thorough and deliberate investigation, the FBI Beaumont Resident Agency partnered with the U.S. Attorney's Office of the Eastern District of Texas to ensure a sobering punishment was delivered," said Senior Supervisory Resident Agent Minique Crump of the Beaumont FBI Resident Agency.
This case was investigated by the Federal Bureau of Investigation; Department of Justice, Office of the Inspector General; U.S. Marshals Service; Houston Police Department-Major Offenders Division; U.S. Attorney’s Offices in the Eastern District of Texas and Southern District of Florida. This case was prosecuted by Assistant U.S. Attorney Robert L. Rawls.
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Farmington Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – David Dobbs, 28, of Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the federal firearms laws by being in possession of a firearm during and in relation to a drug trafficking crime.
Dobbs was arrested in Aug. 2018, on an indictment charging him with cocaine trafficking and firearms offenses. According to the indictment, Dobbs distributed cocaine on Nov. 9, 2017, Dec. 7, 2017 and Feb. 7, 2018; possessed cocaine with intent to distribute on Feb. 26, 2018; and possessed a firearm during and in relation to a drug trafficking crime on Feb. 26, 2018. The indictment charged Dobbs with committing the crimes in San Juan County, N.M.
During today’s proceedings, Dobbs pled guilty to possessing a firearm during and in relation to a drug trafficking crime. In entering the guilty plea, Dobbs admitted that on Feb. 26, 2018, law enforcement officials found approximately 1011 grams of cocaine and a firearm in his vehicle during a traffic stop. Dobbs acknowledged that he intended to distribute the cocaine to others and that he possessed the firearm to protect himself and the drugs associated with his drug trafficking activities.
At sentencing, Dobbs faces a mandatory minimum penalty of five years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the HIDTA Region II Task Force and is being prosecuted by Assistant U.S. Attorney Allison Jaros.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of 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.
Executives of an Atlanta-based medical company charged with healthcare fraudRead the Press Release
ATLANTA - Shailesh Kothari, a/k/a Shue Kothari, the chief executive officer for Primera Medical Group, was arraigned on federal charges alleging healthcare fraud for submitting more than 4,500 fraudulent claims for allergy treatments. Co-defendant, Timothy McMenamin, the chief operating officer for Primera Medical Group, was also charged for his role in the scheme.
“These defendants allegedly sought more than $8.5 million in insurance payments after submitting thousands of fraudulent claims,” said U.S. Attorney Byung J. “BJay” Pak. “Healthcare fraud unfortunately diverts critical resources away from the patients that truly need care.”
“Healthcare fraud not only betrays the trust a patient places in their providers, but costs everyone when their insurance premiums rise because of it,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to ensuring that funds given to healthcare providers are not abused and are used only for medically necessary services for patients.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Primera Medical Group, Inc., was a health clinic in Atlanta that focused its practice on preventative wellness, specifically corporate wellness, concierge care, and allergy testing. Kothari is a doctor of chiropractic medicine who was licensed to practice in Georgia since January 2009.
Primera Medical Group hired market research companies across the U.S. to recruit patients to participate in allergy testing. Patients were told that there would be no out-of- pocket expenses and that their insurance would cover the costs, in addition to being paid $65 to $100 for participating in the test.
A patient’s blood was purportedly drawn so that it could be sent to a laboratory for allergy and other testing, regardless of whether the patient had any allergy symptoms and without any determination of medical necessity for the testing. Primera Medical Group allegedly then billed the patient’s private insurer for multiple procedures, including blood tests, allergy immunology injections, or other laboratory tests. When billing private insurers, Primera Medical Group used the National Provider Identifier (NPI) numbers of multiple doctors, without their knowledge and without those doctors having performed the services.
As of July 2016, Primera Medical Group billed insurers for hundreds of blood tests that were not completed. When an insurance company requested the medical records to support some of the billed services, Kothari allegedly asked McMenamin to create false laboratory reports to submit to the insurance company. McMenamin allegedly created the false laboratory reports, and those false reports were provided to the insurance company to support the fraudulent billing.
Additionally, when a patient requested the results of a laboratory test that was not completed, McMenamin allegedly created false laboratory results for those patients. On multiple occasions, Kothari and McMenamin allegedly sent false laboratory reports directly to patients.
Shailesh Kothari, a/k/a Shue Kothari, 45, of Atlanta, Georgia was arraigned before U.S. Magistrate Judge Alan J. Baverman on federal charges of conspiracy to commit healthcare fraud and aggravated identity theft. Kothari was charged in an information filed on October 12, 2018.
Timothy McMenamin, 31, of Atlanta, Georgia was also charged with the same offenses in the same information. Members of the public are reminded that the information only contains charges. These defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. Assistance was also provided by the Special Investigations Unit for Blue Cross Blue Shield of Georgia.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Fraud Section, is prosecuting 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.
Delaware County Man Convicted at Trial of Multiple Drug Trafficking and Firearm Counts, Including Distributing Drugs in PlaygroundsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Robert Mack, a/k/a “Tweet,” 53, of Sharon Hill, PA, was found guilty today by a jury of the following crimes: conspiracy to distribute 28 grams or more of cocaine base (one count); distribution of cocaine (one count); distribution of cocaine within 1,000 feet of a protected location (one count); possession of a firearm in furtherance of a drug trafficking crime (one count); and felon in possession of a firearm (one count). Chief United States District Judge Juan Sanchez presided over the jury trial.
This conviction stems from the indictment and prosecution of two large-scale drug trafficking organizations operating to sell crack cocaine in and around two playgrounds located in the Mill Creek neighborhood of West Philadelphia. The defendant and others distributed crack cocaine in and around an area known as “the Grounds” – a playground/basketball court located near the intersection of 52nd and Westminster Avenue. The second organization sold crack in a playground, commonly referred to as “the Pit,” located near the intersection of 51st Street and Reno Street. These two areas are within close proximity to each other (merely a few blocks away) and are separated by a baseball field on Westminster Avenue, the lower boundary of “the Grounds.”
The defendant supplied the leader of “the Grounds” with cocaine and crack cocaine, which was then packaged for distribution. The defendant possessed a firearm in furtherance of his drug trafficking crimes. Additionally, he had previously been convicted of a felony and therefore was prohibited by law from possessing a firearm.
“Playgrounds are meant for our children, not for dangerous drug traffickers armed with guns,” said U.S. Attorney McSwain. “For years, the defendant and this violent drug trafficking organization endangered everyone in their neighborhood on a daily basis. Thanks to our dedicated partners at ATF, the Philadelphia Police Department, and our Office’s trial team, the defendant will now pay for his crimes and will no longer be allowed to menace his neighborhood.”
“The ATF is committed to working with our federal, state and local law enforcement partners to target violent drug trafficking organizations that are responsible for drug trafficking and related gun violence in our communities,” said ATF Special Agent in Charge Donald Robinson. “This conviction is a perfect example of the collaborative effort between the ATF and the Philadelphia Police Department to target violent offenders.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorneys Jonathan B. Ortiz and Seth Schlessinger.
Defense Contractor Agrees to Pay $1 Million to Settle Allegations Under the False Claims ActRead the Press Release
SACRAMENTO, Calif. — United States Attorney McGregor Scott announced today that Alpha Research & Technology, Inc. (“ART”), an El Dorado Hills company that provides command and control systems to the U.S. Air Force, has agreed to pay the United States $1 million to resolve allegations that it violated the False Claims Act by knowingly submitting inflated contract pricing to the government.
Between 2006 and 2011, ART submitted subcontract proposals to prime contractors including The Raytheon Company and The Boeing Company that were to be included in firm-fixed-price proposals made by those prime contractors to the Department of Defense. In submitting its proposals, ART knowingly included millions of dollars in personal expenses of its owners Donne and DeAnn Smith, which ART knew were unallowable in government contracting. Those expenses included payments for the design and construction of the Smiths’ luxury personal residence in Amador County, luxury cars, a personal caretaker, and a weekend at the Hotel del Coronado in San Diego.
The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. By improperly basing its government subcontract proposals on unallowable costs, ART caused the United States to pay improperly inflated prices.
“It is a priority of this office to safeguard public coffers against fraud and abuse that affect the integrity of federal contracting programs,” said U.S. Attorney Scott. “We will continue to work closely with our federal law enforcement partners to address the unnecessary expenditure of taxpayer funds, and results like this one help accomplish that objective.”
Chris Hendrickson, Special Agent in Charge of the Department of Defense, Defense Criminal Investigative Service (DCIS), Western Field Office, said, “Padding government contracts with personal expenses is an act of greed that diverts taxpayer dollars away from the critical support of our soldiers, sailors, airmen, and Marines. DCIS is committed to working with partner agencies to root out fraud in Department of Defense contracting.”
“Cost mischarging schemes such as this cheat the Air Force and ultimately the American taxpayer,” said Air Force Office of Special Investigations Special Agent in Charge Cornelius King. “I appreciate the dedicated efforts of the Defense Criminal Investigative Service, The Defense Contract Audit Agency, and the U.S. Attorney's office who helped hold this Air Force contractor accountable.”
The settlement is the product of a joint investigation by DCIS, the Defense Contract Audit Agency, and the Air Force Office of Special Investigations. Assistant U.S. Attorney Colleen M. Kennedy handled the case for the United States. The claims settled by this agreement are allegations only and there has been no determination of liability.
Defendant Pleads Guilty in Multimillion Dollar Prize-Promotion Scam Affecting Elderly VictimsRead the Press Release
An individual who defied court orders by operating a multimillion mass-mailing fraud scheme pleaded guilty on Friday, October 12, 2018, in federal court on Long Island before a magistrate judge, the Department of Justice announced.
Tully Lovisa, 55, of Huntington Station, New York, pleaded guilty to conspiracy to commit mail fraud for sending prize-promotion mailings that led recipients, many of whom were elderly and vulnerable, to believe that they could claim a large cash prize in exchange for a modest fee. This was false; victims who submitted fees, which in total exceeded $30 million, did not receive large sums of money. Lovisa operated the prize-promotion mailing scheme in violation of court orders that resulted from a lawsuit against him by the Federal Trade Commission (FTC).
Lovisa also pleaded guilty to wire fraud in connection with a related scheme to defraud the FTC. Specifically, as part of his resolution of the FTC lawsuit’s against him, Lovisa was ordered by a court to sell a home he owned in Las Vegas, Nevada, and to turn over the proceeds of the sale to the FTC. Lovisa, however, failed to comply with this order by arranged a sham sale of the house in September 2012 for $155,500 (which he reported to the FTC), and then actually selling the house in April 2015 for $540,000 (which he did not report to the FTC).
“As the Attorney General has made clear, the Department of Justice is determined to bring to justice those who exploit elderly consumers in violation of federal law,” said Assistant Attorney General Joseph Hunt of the Department of Justice’s Civil Division. “We will work with our law enforcement partners at the U.S. Postal Inspection Service to stop and punish schemes harming the elderly wherever we find them.”
When sentenced, Lovisa faces up to 20 years in prison on each charge, forfeiture, and a fine of up to $250,000 or twice the gross gain or gross loss from each offense.
Friday’s plea took place before Magistrate Judge Gary R. Brown, who recommended that it be accepted by the district judge. The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Daniel Zytnick and Timothy Finley of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Charles P. Kelly of the Eastern District of New York.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Damariscotta Man Pleads Guilty to Misdemeanor Assault ChargeRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Justin Woods, 32, of Damariscotta, Maine pleaded guilty today in U.S. District Court to knowingly and intentionally assaulting four people with a pistol.
According to court records, on August 28, 2017, the defendant, then a U.S. Navy contract employee participating in the training of active duty Navy personnel in Rangeley, Maine, threatened four Navy instructors by pointing a pistol at them following a social gathering.
The defendant faces up to six months in prison, a $5,000 fine and one year of supervised release. He will be sentenced after the completion of a presentence report by the U.S. Probation Office.
The investigation was conducted by the U.S. Naval Criminal Investigative Service.
Convicted Felon who Fled from Police Sentenced to 20 Years in Federal Prison on Drug and Gun ChargesRead the Press Release
Memphis, TN – Joseph Hamilton, 30, has been sentenced to 20 years imprisonment on federal charges of being a felon in possession of a firearm and possession of marijuana with intent to distribute. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the sentence today.
According to the information presented in court, on October 27, 2017, Memphis Police observed Hamilton driving a silver Infiniti G35 eastbound on East Shelby Drive with a license plate registered to a different vehicle. The license plate also had a 2018 decal that belonged to a different plate. A traffic stop was then initiated. The defendant did not have a driver’s license, but provided his social security number to the officer. After the officer determined that the defendant’s license was suspended, the defendant was instructed to exit the vehicle. The defendant slammed the door to his car, made a "U-turn," and sped away. The officer had to move to avoid being struck by the vehicle. Hamilton then disregarded a traffic signal and crashed his vehicle with another vehicle. The driver of the other vehicle was transported to the hospital in non-critical condition.
After the crash, Hamilton ran into a wooded area with a red and white backpack. While the officer was chasing the defendant, the defendant tripped and fell. The officer caught up with the defendant and arrested him. The defendant spontaneously stated that he ran because he "did not want to go to jail for the weed and gun".
While searching the backpack, officers recovered a large bag of marijuana and two mason jars containing small baggies ofmarijuana, totaling approximately 100 grams. An opened box of sandwich baggies and a marijuana grinder were also recovered. Officers recovered $306.73 on Hamilton and a Ruger .45 caliber pistol from the driver’s side floorboard of the vehicle. Hamilton was also a convicted felon at the time of this offense.
On October 11, 2018, U.S. District Court Judge Thomas L. Parker sentenced Hamilton to 20 years in federal prison followed by 4 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms in connection with drug distribution are inherently dangerous individuals. This conviction and sentence will remove a violent offender from the streets, and will protect public safety. We are FED UP with gun crime in Memphis, and will continue to aggressively prosecute prohibited and dangerous offenders with firearms. Gun Crime is Max Time."
The defendant still has an unrelated murder charge pending in Division 7 of Shelby County’s Criminal Court stemming from his alleged shooting at a Whitehaven McDonald’s, resulting in the murder of one individual and the serious injury to another.
The Multi-Agency Gang Unit investigated this case.
Assistant U.S. Attorney Marques Young and Special Assistant U.S. Attorney Bryce Phillips prosecuted this case on the government’s behalf.
Carson Man Sentenced to over 13 Years for Distributing MethamphetamineRead the Press Release
FRESNO, Calif. — Danny Luna, 32, of Carson was sentenced on October 10, 2018 by U.S. District Judge Dale A. Drozd to over 13 years in prison for distributing methamphetamine, U.S. Attorney McGregor W. Scott announced. In July 2018, Luna pleaded guilty to the charge.
According to court documents, Luna delivered methamphetamine to an undercover officer twice between October and December 2016: two pounds on the first occasion and 20 pounds on the second occasion.
This case was the product of an investigation by Fresno Police Department, Major Narcotics Unit, and the Drug Enforcement Administration. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the case.
California Man Sentenced for Copyright InfringementRead the Press Release
KANSAS CITY, KAN. – A California man was sentenced Monday to serve three years on federal probation for unlawfully selling copyrighted aviation data updates, U.S. Attorney Stephen McAllister said. In addition, the defendant was ordered to pay more than $30,000 in restitution.
Craig M. Vincent, 51, Stockton, Calif., pleaded guilty to one count of criminal infringement of a copyright.
In his plea, Vincent admitted he used eBay to resell aviation navigational database updates in violation of Jeppesen Company’s licensing agreement for a trademarked product called NavData. Jeppesen is a Boeing subsidiary. Jeppesen’s NavData includes airport information, runway characteristics, waypoints, arrival routes, departure routes, terminal procedures and general information that a Global Positioning System or flight management computer needs to navigate an airplane to final destination.
Jeppesen sold NavData subscriptions to Kansas-based Garmin, Inc. Doing business as Merlin Enterprises, Vincent sold NavData cards and required customers to return old data cards to him.
McAllister commended the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Attorney General Sessions Announces New Measures to Fight Transnational Organized CrimeRead the Press Release
Attorney General Jeff Sessions today announced a series of measures to dismantle transnational criminal organizations.
“The day I was sworn in as Attorney General, President Trump sent me an executive order to dismantle transnational criminal organizations—the gangs and cartels who flood our streets with drugs and violence,” Attorney General Sessions said. “We embrace that order and we carry it out every single day. Today, to increase our effectiveness, I am putting in place new leadership to drive our transnational organized crime efforts and forming a Transnational Organized Crime Task Force of experienced prosecutors that will coordinate and optimize the Department’s efforts to take each of these groups off of our streets for good.”
The Attorney General has appointed Associate Deputy Attorney General Patrick Hovakimian to serve as the Department’s first Director of Counter Transnational Organized Crime. Hovakimian has served in Department leadership since early 2017 and also as an AUSA in the Southern District of California, where he is co-lead counsel in a series of transnational public corruption and fraud cases. In addition to his duties as federal prosecutor, earlier this year the President nominated and the U.S. Senate confirmed Hovakimian to serve as a Commissioner of the Foreign Claims Settlement Commission of the United States.
Attorney General Sessions has appointed Adam Cohen as the new Director of Organized Crime and Drug Enforcement Task Force (OCDETF). Cohen is currently the Chief of the Criminal Division Special Operations Unit’s Office of Enforcement Operations and has served in the Criminal Division for 10 years. He has also served as an Assistant United States Attorney (AUSA) for five years and as a state prosecutor in Florida for seven years. He also led the National Gang Targeting Enforcement and Coordination Center for nearly three years and has served as a Deputy Chief of the Narcotics and Dangerous Drug Section. He is a past recipient of the Assistant Attorney General’s Award for Reduction and Deterrence of Violent and Organized Crime, as well as the DEA Administrator’s Award for his work to counter narcotics trafficking.
On February 9, 2017, President Donald J. Trump issued Executive Order 13773, which directed the federal government to “ensure that Federal law enforcement agencies give a high priority and devote sufficient resources to efforts to identify, interdict, disrupt, and dismantle transnational criminal organizations[.]”
Following this Executive Order, Attorney General Sessions directed the FBI, DEA, OCDETF, and the Department’s Criminal Division to identify top transnational criminal groups that threaten the safety and prosperity of the United States and its allies. As a result of that review, the Attorney General is designating the following criminal groups as top transnational organized crime threats:
• MS-13
• Cartel de Jalisco Nueva Generacion (CJNG)
• Sinaloa Cartel
• Clan del Golfo, and
• Lebanese Hezbollah.
The Attorney General’s TOC Task Force will be led by the Deputy Attorney General and will be composed of experienced prosecutors. It will be organized into one subcommittee for each of the target groups.
The subcommittee on MS-13 will be led by Assistant U.S. Attorney John Durham of the U.S. Attorney’s Office for the Eastern District of New York. AUSA Durham has played a significant role in the FBI’s Long Island Task Force, which has arrested hundreds of MS-13 members.
The subcommittee on Cartel Jalisco Nueva Generacion will be led by Trial Attorney Brett Reynolds of the Narcotic and Dangerous Drug Section of the Department’s Criminal Division. Reynolds has led or co-led several investigations into the Cartel that have led to indictments of some of its highest ranking members.
The subcommittee on the Sinaloa Cartel will be led by Assistant U.S. Attorney Matthew Sutton of the United States Attorney’s Office for the Southern District of California. AUSA Sutton prosecuted several Sinaloa kingpins and led multiple international investigations targeting Sinaloa Cartel leaders, resulting in seizures of millions of dollars in drug proceeds and thousands of kilograms of illicit drugs.
The subcommittee on Clan del Golfo will be led by Assistant U.S. Attorney Robert Emery of the United States Attorney’s Office for the Southern District of Florida. AUSA Emery has secured convictions against the top leadership of Clan del Golfo, including kingpin Henry de Jesus Lopez Londoño, who commanded over 1,000 armed men for the cartel.
The subcommittee on Lebanese Hezbollah will be led by Assistant U.S. Attorney Ilan Graff of the United States Attorney’s Office for the Southern District of New York. AUSA Graff is overseeing the prosecution of two alleged members of Hezbollah’s External Security Organization, the first such operatives to be charged with terrorism offenses in the United States.
Attorney General Sessions has ordered each of these subcommittees to provide specific recommendations within 90 days on how to disrupt and dismantle TOC, whether through prosecution, diplomacy, or other lawful means.
This new Task Force builds upon work that Attorney General Sessions has already done to dismantle these groups. On January 11, 2018, Attorney General Sessions established the Hezbollah Financing and Narcoterrorism Team (HFNT), a group of experienced international narcotics trafficking, terrorism, organized crime, and money laundering prosecutors. HFNT prosecutors and investigators are tasked with investigating individuals and networks providing support to Hezbollah, and pursuing prosecutions in any appropriate cases. The new subcommittee—which will be staffed and led by HFNT members—will aid the ongoing work of the HFNT.
On October 23, 2017, Attorney General Sessions formally designated MS-13 as a priority target for OCDETF.
Ambler, Pennsylvania, Man Admits Defrauding FEMA Relating to Major DisasterRead the Press Release
CAMDEN, N.J. – An Ambler, Pennsylvania, man today admitted defrauding the Federal Emergency Management Agency (FEMA) of thousands of dollars after Hurricane Sandy, U.S. Attorney Craig Carpenito announced.
Nicholas Ochs, 54, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to Counts One (disaster benefit fraud) and Four (mail fraud) of the indictment against him.
According to documents filed in this case and statements made in court:
When a natural disaster or federal emergency occurs in the United States, federal agencies, such as FEMA, provide relief and assistance to affected individuals and entities. FEMA provides financial assistance by, among other things, helping affected individuals repair their property.
In October 2012, Cape May County suffered severe damage from wind, rain and flooding generated by Hurricane Sandy when it struck New Jersey. On Oct. 30, 2012, then-President Obama signed a Presidential Disaster Declaration for the State of New Jersey, enabling eligible individuals who were displaced by the storms to seek financial assistance from FEMA.
At the time of Hurricane Sandy, Ochs’s mother lived in a house in Ocean City, New Jersey. In January 2013, Ochs filed an application with FEMA on her behalf, seeking federal rental assistance and assistance for personal property damage under FEMA’s Individual Assistance Program. He claimed the property was damaged as a result of Hurricane Sandy and was unfit for occupancy. An inspector working on behalf of FEMA inspected the property and determined that the property was uninhabitable, that repairs were required, and that the homeowner had moved. During the inspection, Ochs, acting with power of attorney, signed the application on behalf of his mother attesting that all the information on the application was true and correct. By signing the application, Ochs also acknowledged that any disaster relief money awarded would be returned if his mother received insurance benefits for the same loss.
FEMA initially denied Ochs’s claim, citing the fact that the property was covered by insurance. Ochs submitted documents to FEMA indicating that the insurance provider denied his mother’s claim. Based on that, in February 2013, FEMA awarded Ochs’s mother funds for rental assistance and home repair.
In applying to FEMA for home repair and rental assistance claiming that his mother was displaced by Hurricane Sandy, Ochs submitted fraudulent leases claiming that his mother was renting another property on the same block in Ocean City. Ochs also provided fictitious rental receipts. Ochs failed to disclose that the property his mother was renting was owned by his family and that no rent was ever paid. To support his mother’s continued need for rental assistance, Ochs was required to complete FEMA forms, and he faxed fraudulent lease agreements and rental receipts to FEMA.
In February 2013 Ochs contacted FEMA and made a false claim for transportation assistance, claiming that his mother’s 1985 Mercedes Benz was damaged by Hurricane Sandy and submitting fraudulent documentation to that effect.
Between February 2013 and December 2013, FEMA paid Ochs’ mother $17,229 for rental assistance and $4,345 for home repairs, through the issuance of direct deposits into bank accounts that Ochs controlled. Ochs then used the money to pay his personal expenses.
FEMA’s National Flood Insurance Program indemnifies flood insurance providers when a claim is paid out. At the time of the storm, Wells Fargo Bank held the mortgage on Ochs’s mother’s property. After Ochs made a claim to the insurance provider, the insurance provider sent the insurance proceeds to Wells Fargo. To entice Wells Fargo to release the funds, Ochs presented fraudulent invoices and forms from a builder that over inflated the value of the work that the builders performed. Wells Fargo mailed numerous checks totaling $169,518 to the house in Ocean City. Ochs deposited the checks into bank accounts that he controlled and spent the money on personal expenses. The flood insurance claims were indemnified by FEMA.
The count of disaster benefits fraud to which Ochs pleaded guilty to carries a maximum potential penalty of 30 years in prison and a $250,000 fine. The count of mail fraud to which he pleaded guilty carries a potential penalty of 30 years in prison and $1 million fine. Sentencing is scheduled for Jan. 25, 2019.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in Charge Mark Tasky, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: William J. Hughes Jr., Atlantic City, New Jersey
6 Individuals Arrested for Assisting the Operation of Illegal Brothels in New York City and Surrounding AreasRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-In-Charge for the New York Division of the U.S. Postal Inspection Service (“USPIS”), and Timothy W. Dumas, the Special Agent in Charge of the New York Field Office of the U.S. Department of State’s Diplomatic Security Service (“DSS”) of the U.S. Department of State, announced today that KWANG KYU KIM, a/k/a “Kevin,” HYUN KYUNG HAN, a/k/a “Jay Hee,” HONG NAE YI, a/k/a “Diane Yi,” BEIRNE LOWRY, a/k/a “Michael,” TIEN CHIH WANG, and ZHENGYI LU, a/k/a “Allen,” were charged with money laundering and conspiring to commit money laundering in connection with a scheme to provide financing and other support services to brothels in the New York metropolitan area. The defendants were arrested this morning and were presented before a U.S. Magistrate judge in federal court in Manhattan this afternoon.
Manhattan U.S. Attorney Geoffrey S. Berman said: “These individuals allegedly offered support to independent owners of illegal brothels in the form of financing, website maintenance, and other administrative assistance to help the brothels function. By allegedly offering their support, they contributed to the commercial sex industry, an industry notorious for heinous victimization of young women.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “As alleged in the complaint, the suspects thought they could hide their crimes by laundering their illicit proceeds using money orders and other financial instruments; but their tricks were uncovered when they underestimated the resolve of law enforcement to follow the trail of money no matter where it leads. Postal Inspectors and their law enforcement partners are doing their part to, ‘turn off the red light,’ on the sex trafficking trade.”
DSS Special Agent in Charge Timothy W. Dumas said: “DSS continues to disrupt and dismantle transnational criminal organizations seeking to profit from the entry and illicit activities of vulnerable foreign nationals. This investigation demonstrates the global reach of the Diplomatic Security Service.”
According to the allegations contained in the Complaint unsealed today[1]:
Since 2012, the Diplomatic Security Service, United States Postal Inspection Service, United States Customs and Border Protection, and the United States Attorney’s Office for the Southern District of New York have been investigating money laundering in connection with a network of Korean brothels that are located in the New York metropolitan area.
These brothels, which are independently owned and operated, receive financing and advertising from common sources. KWANG KYU KIM, a/k/a “Kevin,” HYUN KYUNG HAN, a/k/a “Jay Hee,” and HONG NAE YI, a/k/a “Diane Yi,” provide financing for several brothels in Manhattan, including by issuing loans with high interest rates to Korean brothel owners and employees. KIM and YI also operate rotating credit associations in which individuals, who are often involved in the commercial sex industry, contribute a fixed amount each month and then receive the lump sum on a rotating basis. KIM, HAN, and YI have collectively provided or assisted in providing hundreds of thousands of dollars to finance new and existing brothels in Manhattan.
BEIRNE LOWRY, a/k/a “Michael,” TIEN CHIH WANG, and ZHENGYI LU, a/k/a “Allen,” provide advertising services to Korean brothels in Manhattan. LOWRY, WANG, and LU create and maintain individual websites for brothels, which include sexually suggestive photographs and coded language for specific commercial sex activities. LOWRY also registered and promoted a website that aggregated information and advertising for brothels in the New York metropolitan area. WANG and LU further coordinated online reviews for the brothels’ commercial sex services and facilitated the brothels’ purchase of commercial sex advertisements on third-party websites.
* * *
The defendants, KWANG KYU KIM, a/k/a “Kevin,” 62, of Queens, New York, HYUN KYUNG HAN, a/k/a “Jay Hee,” 49, of Queens, New York, HONG NAE YI, a/k/a “Diane Yi,” 59, of Queens, New York, BEIRNE LOWRY, a/k/a “Michael,” 59, of Manhattan, New York, TIEN CHIH WANG, 44, of Queens, New York, and ZHENGYI LU, a/k/a “Allen,” 35, of Queens, New York, are each charged with one count of conspiring to commit money laundering and one count of committing money laundering. Each count carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Nathan Rehn, Danielle Sassoon, and Elinor Tarlow are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
12 October 2018
Woman Indicted in Scheme to “Straw Purchase” Guns in Indiana on Behalf of Convicted Felon in ChicagoRead the Press Release
CHICAGO — A Chicago woman has been indicted on federal firearm charges for conspiring to “straw purchase” handguns in Indiana on behalf of a convicted felon in Chicago.
MONICA NAVEJAR, 31, purchased the guns from licensed dealers in Indiana and falsely certified on federal forms that she was the actual buyer, according to an indictment returned in U.S. District Court in Chicago. In reality, Navejar purchased the guns on behalf of a convicted felon in Chicago whom Navejar knew was prohibited from legally purchasing firearms on his own, the indictment states. The felon directed Navejar to buy certain firearms that he wanted and then provided her with the purchase money, according to the charges.
The two-count indictment was returned Oct. 4, 2018, in federal court in Chicago. It charges Navejar with one count of conspiracy to knowingly make false statements and knowingly dispose of a firearm to a convicted felon, and one count of knowingly disposing of a firearm to a convicted felon. Arraignment is set for Oct. 16, 2018, at 11:00 a.m., before U.S. Magistrate Judge Maria Valdez.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie Johnson, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Katherine Neff Welsh.
“Straw purchasers too often play a grave role in enabling the unlawful possession of guns and the senseless shootings that can follow,” said U.S. Attorney Lausch. “The U.S. Attorney’s Office and our law enforcement partners are committed to stopping the flow of guns to convicted felons or other prohibited individuals who cannot legally possess them.”
“Preventing the illegal selling and purchasing of firearms will always be a priority for ATF in conjunction with our local and federal partners,” said ATF SAC Nunez. “Straw purchasers must be held accountable for their role in bringing so many illegal guns into Chicago.”
“Anyone who knowingly puts a gun into the hands of a felon shows blatant disregard for the safety and security of our communities,” said FBI SAC Sallet. “We will continue to work with our law enforcement partners to hold accountable anyone who engages in these illicit transactions, which directly contribute to the gun violence plaguing our city.”
“It is important that we do whatever we can as a society to make sure that we prevent additional families from losing a loved one because a criminal was able to get their hands on a gun through illegal means - including straw purchases,” said CPD Supt. Johnson.
The indictment describes three handgun purchases in 2015 and 2017 in Hammond, Ind., and Gary, Ind. On one occasion, the felon accompanied Navejar to Indiana when one of the purchases was made, the indictment states. The charges also allege that Navejar provided the felon with other guns that Navejar had previously purchased for her own use.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge is punishable by a maximum sentence of five years in prison, while the charge of knowingly disposing a firearm to a felon is punishable by up to ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Wichita Man Charged in Bank RobberyRead the Press Release
WICHITA, KAN. – A Wichita man was charged in federal court today with robbing a local bank earlier this week, U.S. Attorney Stephen McAllister said.
Brent Allen Drees, 50, Wichita, Kan., is charged with one count of bank robbery. A criminal complaint and affidavit alleges that on Oct. 9 Drees robbed the Conway Bank at 121 E. Kellogg. Drees was wearing a baseball cap and jeans when he entered the bank and gave a teller a note saying, “Give me $3,000 and you won’t get hurt.”
Investigators identified Drees as a suspect and arrested him on Oct. 11.
Drees was released from Bureau of Prisons custody in July 2017 after serving a 46-month sentence for bank robbery.
The FBI Safe Streets Task Force investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Vallejo Man Sentenced to Six Years for Unlawful Possession of A FirearmRead the Press Release
SACRAMENTO, Calif. — Danny Lee Rhines, 34, of Vallejo, CA was sentenced on Thursday by United States District Judge Morrison C. England, Jr. to six years in prison for being a prohibited person in possession of a firearm, United States Attorney McGregor W. Scott announced.
According to court documents, in March 2018, officers of the Fairfield Police Department observed Rhines driving a Nissan Altima in Vallejo and tried to pull him over. Rhines, who was the sole occupant of the car, ran a red light and attempted to flee police. Officers were able to apprehend him after Rhines ran the car into a fence and it came to a stop. While officers were securing the car after Rhines' arrest, they found a Ruger .22-caliber pistol in the driver’s side door pocket. Rhines cannot lawfully possess a firearm because he has a prior felony conviction. Rhines pleaded guilty to the charge on July 5, 2018.
This case was the product of an investigation by the FBI Solano County Violent Crimes Task Force and the Fairfield Police Department. Assistant United States Attorneys Owen Roth and James Conolly prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
U.S. Attorney’s Office and FBI to Host 10th Annual Cybercrime Prevention SymposiumRead the Press Release
LOS ANGELES – The United States Attorney’s Office, the FBI, and a coalition of law enforcement agencies and community organizations will host the 10th Annual Cybercrime Prevention Symposium on Monday, October 15 at the California Endowment in Los Angeles. The day-long seminar for more than 450 educators, parents, and middle and high school students is marking 10 years of providing cutting-edge information on cybersafety and digital reputation.
The Symposium will address a wide range of cyber-related security and safety topics with speakers conducting informative discussions on issues that will include online exploitation of children and teens, cyberbullying, the implications of digital communication on health, digital reputation, navigating peer pressure, cyberabuse, internet dangers, and sextortion.
This year’s Symposium will feature an interactive presentation on sextortion by students from the Theatre Department at California State University, Northridge and the traditional lunchtime appearance of surprise celebrity guests from Disney television programs.
“It has become more important than ever for adults and children alike to have the necessary skills to stay safe in cyberspace,” said United States Attorney Nick Hanna. “For the past 10 years, this Symposium has played a significant and important role in presenting strategies that will help protect children from online threats.”
“Educating our youth is half the battle in combatting cyber criminals who target children with sextortion schemes, bullying, grooming and more,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “In ten years of participating in the cyber symposium, the FBI and our partners have educated hundreds of kids who know how to avoid being victimized as a result of attending this important event.”
Student teams from each of the schools attending this year’s Symposium will also be invited to participate in the 8th Annual Cybersafety Challenge. This contest asks attending students to develop a cybersafety program at their respective schools to educate the entire student body on the various risks associated with cybercrime. The contest promotes good cyber etiquette by challenging students to engage in creating the cybersafety programs. Students participating in this challenge will have their contest entries judged by a panel of experts, and the winning school will be announced in May 2019.
“With technology ever-expanding, our children are increasingly vulnerable targets for online predators and bullies,” said Los Angeles City Attorney Mike Feuer. “Partnering with law enforcement, educators, parents and students, we are working to address these threats to our kids’ safety and well-being.”
Organized under the aegis of the Inter-Agency Council on Child Abuse and Neglect (ICAN), law enforcement agencies participating in this year’s conference include the United States Attorney’s Office, the Federal Bureau of Investigation, the Los Angeles City Attorney’s Office, the Los Angeles County Sheriff’s Department, the Los Angeles District Attorney’s Office, and the Los Angeles Police Department - Internet Crimes Against Children Task Force (ICAC). The Cyber Crime Prevention Symposium is hosted this year by the Archdiocese of Los Angeles, and the planning committee also includes participation by Santa Monica-UCLA Medical Center, the Anti-Defamation League, Fox Entertainment Group, the Walt Disney Company, and Warner Bros. Entertainment.
“Children who are growing up in this high tech age are being targeted by online predators at an alarmingly high rate,” said Deanne Tilton Durfee, Executive Director for the ICAN. “This Symposium will provide participants with resources and tools to help children learn how to protect themselves and be safe in the cyber world, while enjoying all of the benefits of the fast-growing technologies.”
U.S. Attorney announces progress in making our communities safer through Project Safe NeighborhoodsRead the Press Release
ATLANTA – The U.S. Attorney for the Northern District of Georgia announces the one-year anniversary of the revitalization and enhancement of Project Safe Neighborhoods (PSN), a program that Attorney General Jeff Sessions designated as the centerpiece of the Department of Justice’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and to develop comprehensive solutions to address them. Throughout the past year, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” said Attorney General Jeff Sessions. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs.”
“Our collaborative partnerships with federal, state and local law enforcement, as well as community stakeholders, have proven to be successful in reducing violent crime,” said U.S. Attorney Byung J. “BJay” Pak. “We are strategically and aggressively working to make our communities safer by keeping guns out of the hands of convicted felons, drug dealers, and gang members by identifying and prosecuting these violent repeat offenders.”
“The Project Safe Neighborhoods program has produced consistent results,” said ATF Special Agent in Charge Arthur Peralta. ”Our communities deserve to be safe from violent criminals and PSN allows ATF, and our federal, state and local partners, to focus on the criminals who choose to use guns to commit their crimes and terrorize our communities. ATF will continue to participate in and support this very important initiative. Anyone who shoots a gun in the commission of a crime is a danger to us all and it is imperative that we focus our efforts on identifying, investigating and arresting these criminals.”
As we celebrate the one-year anniversary of the revitalized PSN program, our office is able to highlight many of our PSN actions over the past year:
Enforcement Actions
PSN is working in partnership with local and state law enforcement to ensure that federal efforts are focused on the most violent offenders, by specifically:
- Maintaining ongoing efforts to reduce violent crime in the English Avenue neighborhood of Atlanta and by also identifying additional communities in Clayton, Henry, and Troup Counties as PSN target enforcement areas. These enhanced enforcement efforts include targeted crime prevention in neighborhood schools and focused deterrence concerning gang-affiliated offenders currently incarcerated, but pending release back into local communities; and
- Building on the success of the District’s Violent Repeat Offender (VRO) program implemented in 2012 in metro Atlanta to address persistent violent crime. The VRO initiative was expanded to include the Rome, Gainesville, and Newnan Divisions. Read more about the VRO program here.
The U.S. Attorney’s Office for the Northern District of Georgia prosecuted the following cases as a part of PSN’s increased focus on targeting drivers of violence within our local communities:
- United States v. Jeffrey Alan Bourassa, et al.: Twenty-three members and associates of the Ghostface Gangsters prison gang were charged in a 21-count indictment on February 8, 2018, in relation to conduct ranging from wire fraud to murder. The Ghostface Gangsters originated in the Cobb County, Georgia, jail in 2000 and has since spread through Georgia jails, prisons, and beyond. Read more on this case here.
- United States v. Terrance Rainey, et al.: Terrance Rainey, Latrell Parson, Talante Fisher-Bland, Brittni Dixon, Martavius Askew, and Donnisha Miles were sentenced for trafficking 33 firearms from Georgia to New York. Law enforcement officers recovered several of the guns from convicted felons who had used the firearms in committing various crimes in New York. Read more on this case here.
- United States v. Sherman Jackson, et al.: Sherman Jackson, William Jackson, Gerren Johnson, and Brendan Person were sentenced for their respective roles in a criminal scheme to unlawfully ship firearms to more than 10 countries. The defendants sold more than 70 firearms to international buyers at extremely marked-up prices. ATF coordinated with its international law enforcement partners to recover firearms sold by the defendants in Australia, Austria, Belgium, Canada, Denmark, France, Germany, Ireland, Kazakhstan, the Netherlands, Russia, Sweden, the United Kingdom, and Zambia. Read more on this case here.
Additionally, the correlation between domestic violence and firearms pose a significant risk to families and public safety, and our office now supports local prosecutors and law enforcement whose efforts may be hampered by a combination of weak state firearms laws and overburdened court systems. For example, it is not a crime under Georgia state law for an individual convicted of family violence battery to possess a firearm. Our office is utilizing the revitalized PSN program to fill this prosecutorial gap.
Community PartnershipsOur office also implemented a comprehensive crime prevention and reentry strategy to complement PSN’s enforcement efforts by partnering with agencies such as the Georgia Department of Juvenile Justice, the Georgia Department of Corrections, the Georgia Department of Community Supervision, EGRESS Consultants and Services, LLC, the Offender Alumni Association, and Freedom is a Choice, Inc. Read more about these partnerships here.
Improvements to Community Safety- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- The preliminary information for 2018 provides optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
- In our District, violent crime arrests slightly declined from 2016 to 2017. For example, in 2017 charges for gang members decreased thirty-two percent compared to 2016. Gang member arrests involving guns also dropped by one-third and their violent-felony crime arrests were down by forty percent.
- In addition, ATF’s ongoing response to the spike in gun trafficking led to a dramatic decrease in the number of thefts from gun stores. For example,
- In 2013, the ATF received reports of 25 burglaries of licensed gun dealers in Georgia resulting in thefts of 338 guns.
- In 2014, the ATF received reports of 34 burglaries of licensed gun dealers in Georgia with a loss of 307 guns.
- In 2015, the ATF received reports of 33 burglaries of licensed gun dealers in Georgia resulting in thefts of 429 guns.
- In 2016, ATF received reports of burglaries of 50 federally licensed firearms dealers in Georgia, with a staggering increase in thefts of more than 1,000 firearms.
- In 2017, the ATF received reports of 23 burglaries of licensed gun dealers in Georgia, with a substantial decrease in thefts of 241guns.
- So far in 2018, 15 burglaries of federally licensed firearms dealers have been reported, resulting in thefts of 259 guns.
These enforcement actions and partnerships are 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. Learn more about Project Safe Neighborhoods.
For the referenced cases, members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
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.- Maintaining ongoing efforts to reduce violent crime in the English Avenue neighborhood of Atlanta and by also identifying additional communities in Clayton, Henry, and Troup Counties as PSN target enforcement areas. These enhanced enforcement efforts include targeted crime prevention in neighborhood schools and focused deterrence concerning gang-affiliated offenders currently incarcerated, but pending release back into local communities; and
U.S. Attorney Thomas L. Kirsch II Announces Progress in Making our Communities Safer through Project Safe NeighborhoodsRead the Press Release
One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past year, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“During the past 12 months, federal firearm related prosecutions have increased more than 20 percent throughout Northern Indiana. PSN is a proven strategy, and we will continue to work with our local, state and federal partners on this important initiative to reduce violent crime throughout the district, which is a high priority of my office,” announced U.S. Attorney Kirsch.
As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
The U.S. Attorney personally meets with local law enforcement heads on a regular basis to guide the effort while members of his staff work with local law enforcement to identify the most dangerous offenders who will be prosecuted in federal court. Federal and state law enforcement regularly work together to share crime intelligence information to identify the most violent members of our community. During the past year, federal prosecutors and federal law enforcement agencies, working in conjunction with local law enforcement officials and prosecutors, have identified several groups of individuals who drive the violence in our community and have prosecuted members of those groups.
Community Partnerships
The South Bend Group Violence Intervention Program (SBGVI) unites community leaders from law enforcement, government, education, civil service, and faith-based agencies in an effort to reduce gun violence in South Bend. A centerpiece of this strategy is the critical analysis of crime data to identify groups that drive violence in the South Bend community and to focus crime prevention efforts on those groups. A means of strategic communication with identified groups is through the use of periodic “call in” meetings. The aim of the call in meeting is, by speaking to the 15-25 group connected individual invitees, spreading these SBGVI’s core messages: (1) the Community demands that gun violence must stop; (2) law enforcement will bring focused attention on any group that chooses to ignore the Community’s message and continues to engage in gun violence and; (3) the Community’s offer of social service assistance to persons who wish to embark on a path away from violence is real and robust. The law enforcement partners, based on review and analysis of violent crime data, implement enforcement actions against members and associates of groups/gangs that continue to engage in violent criminal activity. “In addition to call-in meetings, strategic communication through “custom notifications” to high risk individuals are increasingly used.”SBGVI has also recently added an outreach team whose goal is to foster relationships in the community and make citizens more comfortable with reporting information without fear of reprisal.
Like South Bend, Gary employs a group violence reduction strategy under the guidance of the National Network for Safe Communities. The strategy in Gary also includes call in meetings, custom notifications and social services outreach/support.
Improvements to Community Safety
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
- In South Bend, the number of people shot has dropped by 33 percent during the first three quarters of 2018 compared to the same time last year.
These enforcement actions and partnerships are 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. Learn more about Project Safe Neighborhoods.
U.S. Attorney Christina Nolan Highlights Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Jeff Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in Vermont and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders. The U.S. Attorney’s Office has partnered with all levels of law enforcement, local organizations and community stakeholders to reduce violent crime and make our state safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
U.S. Attorney Christina Nolan stated: “There is no place for violence in Vermont in any context, whether it be in the home, in relation to the drug trade, or in connection with property crime. The U.S. Attorney’s Office is committed to prioritizing anti-violence prosecutions. We will work tirelessly to root out violence across the state, and always in close collaboration with community organizations, federal, state, local, and county law enforcement, the Vermont Attorney General’s Office, and state prosecutors. As we continue to work in unity, as a single Vermont law enforcement team, we will send a message of zero tolerance to those who commit senseless violence and flout firearms laws, and we will create safer and more peaceful communities for Vermonters.”
Achievements
As we celebrate the one-year anniversary of the revitalized PSN program, here are some highlights of the U.S. Attorney’s Office PSN program over the past year:
- In January 2018, Assistant U.S. Attorney Wendy Fuller was appointed the Violent Crime Coordinator to oversee PSN prosecutions and initiatives in Vermont and to conduct intake of U.S. Attorney’s Office violent crime cases.
- The U.S. Attorney’s Office has strengthened relationships, communication, and partnerships at all levels of law enforcement in Vermont, and in every corner of the state, in order to maximize our cooperation in violent crime cases. In particular, the U.S. Attorney meets regularly, in person, with each State’s Attorney to ensure close collaboration in all matters, including violence and gun crime.
- The U.S. Attorney’s Office established a PSN Task Force, comprised of federal, state, and local agencies and community partners. The mission of the Task Force is to collaborate in violent crime cases and regularly communicate intelligence concerning top violent crime offenders, discuss trends in violent crime, and share best practices and violence prevention strategies. Members of the Task Force come from northern and southern Vermont.
- The U.S. Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives have conducted numerous trainings for state, county and local law enforcement throughout the state. These sessions cover the scope and interplay of state and federal gun laws, federal case intake procedures, and violent crime investigative resources available to law enforcement at all levels.
- The U.S. Attorney’s Office requested and received three new, full-time Assistant U.S. Attorneys, increasing its AUSA ranks by more than 15 percent. These new resources will allow the U.S. Attorney’s Office to increase its violent crime caseload and provide greater support to our state and local partners.
Enforcement Actions
- The U.S. Attorney’s Office continues to deploy resources to support our partners, to bring charges in cases of violence, and to bring justice to violent crime offenders. Case highlights from the past year include:
- On 8/21/2018, Richard Monroe was sentenced to 25 years in prison following his conviction for shooting and killing Kevin DeOliveira in Burlington in connection with a cocaine dispute. Read more www.justice.gov/usao-vt/pr/richard-monroe-sentenced-twenty-five-years-prison-connection-murder-kevin-deoliveira
- On 6/1/2018, Howard Hoisington was sentenced to 24 years in prison following his conviction for setting two individuals on fire in Barre (and killing one) in connection with the drug trade. Read more www.justice.gov/usao-vt/pr/howard-hoisington-sentenced-24-years-prison-fatal-arson-case
- On 8/16/2018, Michael Bickford was sentenced to 8 years in prison following his conviction for conduct in Springfield involving bank robbery at gunpoint, attempted kidnapping, carjacking, and a standoff with police. Read More www.justice.gov/usao-vt/pr/perkinsville-man-sentenced-armed-pharmacy-and-bank-robbery-case
- Over the past year, an operation in Barre, supported with Organized Crime Drug Enforcement Task Force (OCDETF) funds, led to state and federal charges against 58 defendants, and to the seizure of 71 firearms, 2,187 rounds of ammunition, 888 bags of heroin, and 161 grams of crack cocaine. This operation exemplifies the positive impacts and support that federal OCDETF funds can provide to local law enforcement and communities.
- On 9/13/2018, five St. Albans individuals were indicted for straw purchasing a total of approximately 30 firearms and trading them to drug dealers in Massachusetts. Read more www.justice.gov/usao-vt/pr/five-arrested-and-charged-straw-purchasers-30-firearms
Community Partnerships
Circle, a nonprofit serving victims and survivors of domestic violence, has joined the PSN effort and was recently approved as a fiscal agent for federal PSN grant funding awarded to Vermont. Circle will join with law enforcement in helping to educate Vermonters about violent crime and domestic violence and devising and implementing violence prevention strategies throughout the state.
Improvements to Community Safety
- The FBI’s official crime data for 2017 reflects that, following historic increases in violent crime, the nationwide violent crime rate began to decline. Specifically, the nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- Preliminary information for 2018 gives reason for optimism that our PSN efforts are producing positive results. Public data from 60 major American cities shows that violent crime decreased by nearly five percent in those cities in the first six months of 2018, compared to the same period a year ago.
- Vermont saw a 20 percent decrease in homicides from 2016 to 2017. In 2018, year to date, homicides in Vermont are down nearly 50 percent from 2016. In 2018, year to date, homicides arising from domestic violence are down more than 30 percent. Moreover, robberies in Vermont decreased nearly 25 percent from 2016 to 2017. In 2018, year to date, robberies are down more than 50 percent from 2016.
These data reveal what the Vermont law enforcement community knows: by working together, side-by-side, we reduce violence and gun crime and keep our communities safe. There is much work ahead. We will continue to forge strong partnerships with law enforcement agencies and community stakeholders to promote justice and peace for Vermonters.
These enforcement actions and partnerships are 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. Learn more about Project Safe Neighborhoods.
U.S. Attorney Adam Braverman Announces Progress in Making our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
NEWS RELEASE SUMMARY – October 12, 2018
SAN DIEGO – One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. This program focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. PSN brings together a wide array of community leaders to identify the most pressing violent crime problems and develop comprehensive solutions to address them.
In the Southern District of California (SDCA), the PSN program operates primarily as a collaboration between the United States Attorney’s Office and the San Diego County District Attorney’s Office. Utilizing intelligence from both local and federal law enforcement, these two prosecutorial offices (the largest two in the region) work to determine which jurisdiction (state or federal) will be able to provide the greatest impact for the community. In the past year, the PSN partnership has frequently resulted in the deployment of federal enforcement resources against violent offenders who might face a much smaller sanction in state court.
Nationally, the FBI’s official crime data for 2017 reflects that the violent crime rate decreased by approximately one percent in 2017, while the homicide rate decreased by nearly one and a half percent. Locally, San Diego has achieved its lowest crime rate in the past 49 years and we had the lowest violent crime rate of America’s largest cities last year. A recent SANDAG (San Diego Association of Governments) report indicates that guns are used less often in violent crimes in San Diego than the national average.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“San Diego’s violent crime rate was the lowest of every major city in the nation last year due to effective partnerships,” stated U.S. Attorney Adam Braverman. “Our federal prosecutors work hand-in-hand with local law enforcement agencies to successfully prosecute significant cases involving guns, drugs and gangs and to collaborate on evidence-based prevention efforts. This approach has delivered clear results in the form of safer neighborhoods.”
Between fiscal year 2017 and fiscal year 2018, cases designated and prosecuted by the United States Attorney’s Office under the Project Safe Neighborhoods Program rose 75 percent; from approximately 79 cases in 2017 to 139 cases in fiscal year 2018. These increases occurred at the same time as the United States Attorney’s Office increased the number of cases brought in other priority areas including narcotics trafficking and immigration enforcement. Efforts to increase prosecutions for fiscal year 2019 are already underway. Three recent examples highlight the types of the cases brought for federal prosecution, all aimed at making the Southern District of California safer:
- On September 6, 2018, Lorne Turman pleaded guilty in federal court for his role in a series of armed robberies throughout San Diego County. See U.S. v. Bickham, et al., 18-CR-2557-JLS. In his plea agreement, Turman admitted that he used a shotgun to rob a series of local businesses (known to local media as the “Grinch Bandit” robbery series). Under the terms of the agreement, the United States will be recommending a 42-year prison sentence for Turman.
- On July 18, 2018, Tony Hwong, a Westside Luni Mob gang member, was sentenced to 10 years in federal prison for possessing a firearm while selling methamphetamine. See U.S. v. Hwong, 18-CR-059-WQH. Hwong was originally arrested by members of the San Diego Police Department during a probation sweep but was diverted for federal prosecution based on the threat he posed to the community.
- On October 2, 2018, Chad Kipper, the former CEO of the Freedom Fighters Foundation, was convicted of felony gun trafficking. See U.S. v. Kipper, 18-CR-2460-BAS. Kipper admitted that he had falsely claimed to be an Arizona resident during fourteen firearms-purchases in Arizona during 2016. Learn more about Kipper’s prosecution.
The United States Attorney’s Office furthers PSN’s prevention mission by convening stakeholders, forging diverse partnerships, providing mentors, and using the following novel approaches to reduce violent crime:
- Because youth are often groomed and recruited by gangs before middle school, the USAO partnered with community groups as well as county health, local law enforcement and school officials to launch “Success Agents,” an innovative program that offers at-risk 4th graders at Porter Elementary mentors and wrap-around support from 4th through 8th grade. A USAO-led team meets weekly with Success Agents kids, providing interactive workshops to improve decision-making, foster relationships and academic achievement, and expand horizons. Based on promising initial results, the San Diego Juvenile Justice Commission honored Success Agents for impressive teamwork in action and the San Diego District Attorney’s Office expanded it earlier this year to an additional elementary school.
- The USAO coordinates an 8-week Project Lead program in targeted elementary schools in a Southeast San Diego neighborhood affected by gangs and violent crime. The team’s efforts significantly expanded youth education on drug, alcohol and gang refusal skills, preparing more than 1,500 vulnerable 5th graders to make wise choices when asked to join gangs, use drugs, tag a building, or skip school. The program also builds strong relationships between students and federal law enforcement agents from many agencies, including the USAO, CBP, the Secret Service, and the U.S. Marshal’s Service.
- The USAO participates in the city’s creative Community Assistance Support Team (CAST), a stakeholder group designed to curb gang violence by partnering police with former gang and community members. Members work together immediately after shootings to prevent retaliation and escalation. Through CAST, the USAO meets regularly with police officers, Deputy Sheriffs, community activists, local pastors and community leaders to review violent incidents, discuss resources and needs, share information, and solve problems.
These enforcement actions and partnerships are 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. Learn more about Project Safe Neighborhoods.
U.S. Army Reservist, Who Exploited Opioid Addictions of Young Women, Convicted of Sex Trafficking and Related OffensesRead the Press Release
Defendant forced victims struggling with opioid addictions to prostitute for his profit
Xaver M. Boston, 29, of Charlotte, North Carolina, was convicted yesterday by a federal jury of six counts of sex trafficking and one count of using an interstate facility to promote a prostitution enterprise. The verdict was announced by Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina, and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina, Field Division. U.S. District Judge Robert J. Conrad, Jr. presided over the trial.
Evidence presented during the three day trial, including the testimony of three of the four victims identified in the indictment by their initials, revealed that Boston, who served in the U.S. Army as a reserve military policeman, operated an extensive sex trafficking enterprise in the Charlotte area between 2012 and September 2017, except for a brief period when he was deployed overseas. Boston recruited the victims—young women and one teenager who were all struggling with drug addictions—by promising to provide them with a place to live and drugs to feed their addictions. He also falsely promised them a house, car, and other material possessions. Boston then advertised them on Backpage.com for prostitution and collected the proceeds for his own profit.
After recruiting the victims, Boston controlled their supply of highly addictive drugs such as heroin and hydrocodone pills. Without the drugs, the victims would experience excruciating physical and mental pain and withdrawal symptoms. In order to coerce the victims to prostitute, Boston withheld their drugs until after they completed commercial sex acts, and he withheld it as punishment if they failed to turn over all of the prostitution proceeds or otherwise violated his rules.
Evidence presented at trial also showed that Boston used violence to control and coerce the victims on occasion. For example, he choked one victim on multiple occasions, and he punched and slapped others as well. Boston also used a pistol to strike one victim in the face, breaking her nose.
“The defendant in this case preyed upon young vulnerable women, exploiting their drug addictions and forcing them to engage in prostitution for his own profit,” said Acting Assistant Attorney General Gore. “The Civil Rights Division will continue its vigorous efforts to work with our federal and state partners to hold human traffickers accountable and vindicate the rights of victims.”
“Boston is a predator who ran a criminal enterprise that violated the most basic standards of human decency,” said U.S. Attorney Murray. “The defendant preyed on and abused vulnerable young women with the intention of exploiting them for his financial gain, and used violence and drugs to exert his control. My office will continue to prosecute sex traffickers and work with our law enforcement partners to identify those who engage in this illegal, dehumanizing business.”
“Xaver Boston promised his victims a better life, instead he robbed them of their civil rights and freedom to make a profit, now he will pay the price. The FBI devotes a significant amount of resources to help sex trafficking victims recover from the trauma they suffer at the hands of ruthless people like Boston,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
After deliberating for seven hours, the jury found the defendant guilty of seven out of nine counts contained in the indictment. Boston is currently in federal custody. Each sex trafficking charge carries a minimum sentence of 15 years in prison and a maximum sentence of life, mandatory restitution and a $250,000 fine. A sentencing date has not been set.
The case was investigated by the FBI Charlotte, North Carolina, Field Division with assistance from the Charlotte-Mecklenburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
U.S. Army Reservist, Who Exploited Opioid Addictions of Young Women, Convicted of Sex Trafficking and Related OffensesRead the Press Release
CHARLOTTE, N.C. – Xaver M. Boston, 29, of Charlotte, North Carolina, was convicted yesterday by a federal jury of six counts of sex trafficking and one count of using an interstate facility to promote a prostitution enterprise. The verdict was announced by Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Andrew Murray of the Western District of North Carolina, and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina, Field Division. U.S. District Judge Robert J. Conrad, Jr. presided over the trial.
Evidence presented during the three day trial, including the testimony of three of the four victims identified in the indictment by their initials, revealed that Boston, who served in the U.S. Army as a reserve military policeman, operated an extensive sex trafficking enterprise in the Charlotte area between 2012 and September 2017, except for a brief period when he was deployed overseas. Boston recruited the victims—young women and one teenager who were all struggling with drug addictions—by promising to provide them with a place to live and drugs to feed their addictions. He also falsely promised them a house, car, and other material possessions. Boston then advertised them on Backpage.com for prostitution and collected the proceeds for his own profit.
After recruiting the victims, Boston controlled their supply of highly addictive drugs such as heroin and hydrocodone pills. Without the drugs, the victims would experience excruciating physical and mental pain and withdrawal symptoms. In order to coerce the victims to prostitute, Boston withheld their drugs until after they completed commercial sex acts, and he withheld it as punishment if they failed to turn over all of the prostitution proceeds or otherwise violated his rules.
Evidence presented at trial also showed that Boston used violence to control and coerce the victims on occasion. For example, he choked one victim on multiple occasions, and he punched and slapped others as well. Boston also used a pistol to strike one victim in the face, breaking her nose.
“The defendant in this case preyed upon young vulnerable women, exploiting their drug addictions and forcing them to engage in prostitution for his own profit,” said Acting Assistant Attorney General Gore. “The Civil Rights Division will continue its vigorous efforts to work with our federal and state partners to hold human traffickers accountable and vindicate the rights of victims.”
“Boston is a predator who ran a criminal enterprise that violated the most basic standards of human decency,” said U.S. Attorney Murray. “The defendant preyed on and abused vulnerable young women with the intention of exploiting them for his financial gain, and used violence and drugs to exert his control. My office will continue to prosecute sex traffickers and work with our law enforcement partners to identify those who engage in this illegal, dehumanizing business.”
“Xaver Boston promised his victims a better life, instead he robbed them of their civil rights and freedom to make a profit, now he will pay the price. The FBI devotes a significant amount of resources to help sex trafficking victims recover from the trauma they suffer at the hands of ruthless people like Boston,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
After deliberating for seven hours, the jury found the defendant guilty of seven out of nine counts contained in the indictment. Boston is currently in federal custody. Each sex trafficking charge carries a minimum sentence of 15 years in prison and a maximum sentence of life, mandatory restitution and a $250,000 fine. A sentencing date has not been set.
The case was investigated by the FBI Charlotte, North Carolina, Field Division with assistance from the Charlotte-Mecklenburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Two from Northeast Ohio indicted on federal firearms chargesRead the Press Release
Two men from Northeast Ohio were indicted on federal firearms charges.
Ronnie Edward Calton, 39, of Streetsboro, and Jaron Parrish, 27, of Cleveland, were each charged with being a felon in possession of a firearm and ammunition.
Calton on Sept. 21 possessed a Smith & Wesson 9 mm pistol and ammunition, despite having been previously convicted of illegally assembly or possession of chemicals to manufacture a controlled substance, according to the indictment.
Parrish on Aug. 20 possessed an Intratech 9 mm pistol and 40 rounds of ammunition, despite having been previously convicted of burglary, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique
to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The Calton case was investigated by the Cuyahoga Metropolitan Housing Authority Police Department and RAVEN Task Force. It is being prosecuted by Assistant U.S. Attorneys Kelly Galvin and Margaret Kane.
The Parrish case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.