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10 October 2018
Charlotte Man Sentenced for Federal Firearm Violations Stemming from Sheriff's Convention Break-InsRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that United States District Judge Mary G. Lewis sentenced Elontrae Ali Glenn, age 24, to 120 months of incarceration, which is the statutory maximum, as a result of his conviction for Possession of Firearms and Ammunition by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g).
Evidence presented in court established that on January 26, 2018, Glenn happened upon a law enforcement convention in the Columbia area, and began forcibly making entry into law enforcement vehicles. From these vehicles, Glenn took nine firearms, several rounds of ammunition, and other law enforcement paraphernalia. In making his way back to Charlotte, the South Carolina Highway Patrol attempted to conduct a traffic stop on a vehicle driven by Glenn after clocking the vehicle travelling over the speed limit. Glenn refused to stop the vehicle and attempted to evade law enforcement in a high-speed chase that lasted over seventeen miles and reached speeds in excess of 120 miles per hour. Eventually, law enforcement brought Glenn’s vehicle to a stop, using a boxing maneuver, but not before Glenn rammed two patrol vehicles in a final attempt to escape. Glenn was apprehended, and law enforcement recovered the stolen firearms and other paraphernalia in the vehicle driven by Glenn. Glenn is prohibited under federal law from possessing firearms based upon his prior separate state convictions for assault with a deadly weapon with intent to kill, discharging a weapon into occupied property, breaking and entering motor vehicles, and possession with intent to distribute.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the South Carolina Highway Patrol, Chester County Sheriff’s Department, and Columbia Police Department. Glenn was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is 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. Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office handled the case.
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Cash Store Robber DetainedRead the Press Release
On October 9, 2018, Algernon C. Perkins, of Alorton, Illinois had an initial appearance on a two-count criminal complaint charging him with Interference with Commerce by Robbery for his alleged involvement in the robbery of two locations of the Cash Store within the Southern District of Illinois, United States Attorney Steven D. Weinhoeft announced today. If convicted of Interference with Commerce by Robbery, Perkins faces a term of imprisonment of up to twenty years and a maximum fine of $250,000 on each count. Perkins has been detained pending the outcome of these proceedings.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Highland Police Department, the Salem Police Department, the Taylorville Police Department, and the United States Marshals Service.
California Man Sentenced in $1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Bakersfield, Calif., man was sentenced in federal court today for his role in a conspiracy to distribute more than $1 million worth of methamphetamine in southern Missouri and in the Kansas City, Mo., area.
Lanny Eugene Ham, 27, was sentenced by U.S. Chief District Judge Greg Kays to nine years and 10 months in federal prison without parole. The court also ordered Ham to pay a money judgment of $1,060,070 for which he is jointly and severally liable.
On July 31, 2017, Ham pleaded guilty to participating in a conspiracy to distribute methamphetamine and to participating in a money-laundering conspiracy. Ham assisted co-defendant Michael Ryan Nevatt, 29, of Springfield, with obtaining more than five kilograms of methamphetamine for Nevatt's organization to distribute and with collecting drug proceeds for methamphetamine delivered.
Co-defendant Kenneth Bryant Lake, 57, of Strafford, Mo., was the original head of the drug-trafficking organization, coordinating vehicle transport shipments of methamphetamine from a Mexican cartel source in Texas to Springfield. Conspirators in Springfield divided the methamphetamine for distribution to the Lebanon, Mo., and Kansas City, Mo., areas. Lake has pleaded guilty and awaits sentencing.
Nevatt subsequently became the head of the organization and made trips to California and to Texas to purchase methamphetamine. Nevatt was convicted at trial on April 6, 2018, of all seven counts contained in a Nov. 17, 2016, federal indictment. He is the final defendant waiting to be sentenced, among 15 co-defendants who have been convicted and sentenced in this case.
Nevatt and other conspirators made regular trips, and sometimes travelled several times a week, to pick up multiple-pound supplies of methamphetamine. For example, Nevatt traveled to Texas regularly to pick up 10 pounds of methamphetamine and bring it back to Springfield. Nevatt would later return to Texas with approximately $100,000 in cash to pay for it. On one occasion, Nevatt met sources in Dallas, Texas, to purchase 40 pounds of methamphetamine. Mexican sources also delivered multiple-pound shipments of methamphetamine by truck or car to Springfield.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Ashleigh Ragner. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, IRS-Criminal Investigation, the Buchanan County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the U.S. Postal Inspection Service and the Central Oklahoma Metro Interdiction Team.
Brooklyn Man Charged with Nine Hobbs Act Robberies of Local Gas Stations and Convenience StoresRead the Press Release
An 11-count indictment was unsealed today in federal court in Brooklyn charging Benjamin Uzilov with conspiracy to commit Hobbs Act robbery, nine counts of Hobbs Act robbery, and brandishing a firearm during a crime of violence. Uzilov was previously arrested on a complaint that charged him with robbing three 7-Eleven stores on September 26, 2018. The indictment charges the defendant with a total of nine robberies in Brooklyn, adding three additional robberies on September 16, 2018 and three additional robberies on September 25, 2018. Uzilov will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges. Mr. Donoghue expressed his appreciation to the NYPD detectives and ATF special agents assigned to the Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) Task Force for their work during the investigation.
“As alleged in the indictment, Uzilov carried out a crime wave, repeatedly targeting Brooklyn businesses where he robbed hard-working store clerks at gunpoint,” stated United States Attorney Donoghue. “This Office is committed to vigorously prosecuting those violent criminals who commit robberies, jeopardizing the safety of members of our community, in order to fill their own pockets with cash.”
“The defendant as alleged has committed numerous brazen acts of violence leaving innocent people traumatized and in a state of fear,” stated ATF Special Agent-in-Charge Benedict. “Thanks to the excellent investigative work of the ATF/NYPD Joint Robbery Task Force he will no longer prey on the innocent in his community. ATF remains steadfast in its commitment to protecting citizens from violence and the lasting effects it has on communities. I would also like to thank the United States Attorney’s Office for prosecuting this case.”
“There is no place in civil society for violent criminals who target innocent New Yorkers,” stated NYPD Police Commissioner O’Neill. “I commend the NYPD detectives and ATF investigators who comprise our Strategic Pattern Armed Robbery and Technical Apprehensions Task Force, or SPARTA – who so effectively pursue and strengthen high-profile armed robbery cases like this. And now, due to the nature of these crimes and the unparalleled cooperation between our agencies and the Eastern District of New York, I am very confident he will be successfully prosecuted and receive a lengthy federal prison sentence.”
As detailed in court pleadings and as captured on video surveillance, Uzilov entered each store, threatened employees with a gun and then stole money from his victims. On more than one occasion, Uzilov ordered his victims to get on the floor and count to 10 as he exited the store. Shortly after the final robbery on September 26, 2018, Uzilov was apprehended by NYPD officers at a gas station on Ocean Avenue in Brooklyn. The officers observed a black ski mask on the front seat of Uzilov’s car and recovered cash in the pocket of his hooded sweatshirt and a gun in the glove compartment.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Uzilov faces a minimum of seven years in prison.
The indictment charges Johnson with the following robberies, all in Brooklyn:
- Shell Gas Station on September 16, 2018;
- Mill Basin Convenience Store on September 16, 2018;
- Allegiance Gas Station on September 16, 2018;
- Verrazano Deli and Grocery on September 25, 2018;
- Stop and Smile Grocery on September 25, 2018;
- Sam’s Deli on September 25, 2018;
- 7-Eleven on September 26, 2018;
- 7-Eleven on September 26, 2018; and
- 7-Eleven on September 26, 2018.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Megan E. Farrell is in charge of the prosecution.
The Defendant:
BENJAMIN UZILOV
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-546
Bridgeport Man Sentenced to 3 Years in Federal Prison for Distributing Heroin to Monroe Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CAREEM BENTLEY, also known as “C-Lows,” 35, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing heroin to an overdose victim.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on November 23, 2016, Monroe Police and emergency medical personnel responded to a residence in Monroe on a report of a suspected drug overdose. At the scene, responders encountered an unresponsive 37-year-old male lying on the floor. The male was pronounced deceased. Investigators seized the victim’s cellphone, multiple folds of suspected heroin, and other items, and subsequently concluded that the victim purchased heroin from BENTLEY in the late evening of November 22, 2016.
BENTLEY was arrested on a criminal complaint on April 26, 2017. On August 14, 2017, he pleaded guilty to one count of distribution of heroin.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Monroe Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Blythewood Woman Sentenced for Embezzlement of Government FundsRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Teresa Yarborough-Walker, age 50, of Blythewood, was sentenced to 30 months in prison for Theft of Government Funds, a violation of Title 18, United States Code, § 641. She was also ordered to pay over $416,000 in restitution. Judge Mary Geiger Lewis presided.
Evidence presented previously established that Walker was the human resources supervisor for Genesis Health Care, Inc. Genesis is a non-profit health care center that offers medical services to poor, rural communities. Genesis was funded by the Health Resources Service Administration, an agency within the US Department of Health and Human Services. Many Genesis patients are on Medicare and Medicaid.
Walker embezzled from Genesis by creating fictitious employees and paying them a salary. She then diverted those salaries to herself. She modified the payroll software to prevent reports from going to management that would have revealed the scheme.
Walker stole approximately $416,257.00.
The Federal Bureau of Investigation, the Internal Revenue Service, and the City of Columbia Police Department investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
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Benton Man Sentenced to Federal Prison for Defrauding Southern Illinois HealthcareRead the Press Release
Cary E. Mosley, 48, of Benton, Illinois, has been sentenced to 18 months in federal prison for defrauding his former employer, Southern Illinois Healthcare ("SIH"), Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today. A federal grand jury had previously returned an indictment charging Mosley with mail and wire fraud on January 4.
Mosley was employed as the Manager of SIH’s Radiation Oncology Department. From at least December 2006 until July 2013, Mosley held a second job with Q.E.D. Medical Physics, Inc. ("QED"). QED, which is based in Lebanon, Tennessee, is a contractor that provides support services for radiation oncology departments operated by smaller hospitals.
Mosley pled guilty on June 13, 2018, and admitted that he was paid by QED for work he allegedly performed at SIH. Specifically, Mosley admitted making entries in QED’s electronic timekeeping system which falsely claimed he had performed work at SIH which he had not actually performed. The effect was that Mosley caused SIH to pay him twice: once through his SIH salary and again through QED. Based upon Mosley’s fraudulent timekeeping entries, QED submitted invoices to SIH which were falsely inflated by the amount of time Mosley claimed.
Mosley concealed his fraud scheme by altering the documents that were sent to SIH’s Accounts Payable Department in support of the QED invoices. Each month, QED sent to SIH an "Hours and Details" sheet, which identified the QED employees who had worked at SIH, the work they had performed, the number of hours they had worked, and the dates they had worked. During the initial portion of his scheme, Mosley altered the "Hours and Details" sheets by removing his name and inserting the names of other QED employees. During the latter portion of his scheme, Mosley simply discarded the "Hours and Details" sheets before the QED invoices were sent to SIH’s Accounts Payable Department.
Mosley’s fraud against SIH lasted from December 2006 through July 2013. During that time frame, Mosley was paid over $500,000 by QED for work he fraudulently claimed he had performed at SIH.
During Mosley’s sentencing hearing, United States District Judge Staci Yandle observed that Mosley had not committed his crimes out of economic necessity but simply out of "greed. Pure, unadulterated greed." The judge also noted that it was important to send a message that white collar defendants who commit serious crimes will not be able to walk away from their offenses with a mere "slap on the wrist."
In addition to the 18 month term of incarceration, Judge Yandle also sentenced Mosely to serve three years of supervised release, with his first year to be spent on home confinement with electronic monitoring, and to pay restitution to SIH in the amount of $1,210,865.
The case was investigated by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation. Both SIH and QED cooperated with the investigation. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Bay-Area Babysitter and Camp Counselor Pleads Guilty to Child Pornography ConspiracyRead the Press Release
SAN FRANCISCO – Ryan Michael Spencer pleaded guilty in federal court in San Francisco to two counts of production of child pornography, conspiracy to distribute and receive child pornography, distribution of child pornography, receipt of child pornography, possession of child pornography, and felony contempt of court, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
In pleading guilty, Spencer admitted that he produced pornographic images of more than a dozen children with whom he came into contact through his jobs as a babysitter and camp counselor in the Santa Cruz area. One set of such images depicted Spencer molesting a child that he was babysitting. Spencer created other image by surreptitiously photographing the children’s genitalia and pubic areas while the children were naked and in his care.
Spencer admitted that, beginning no later than March 2015 and continuing until his arrest in April 2017, he conspired with his co-defendant, Tiburon-area babysitter Bryan Petersen, to trade the child pornography he produced for other images of child pornography that Petersen took of children in Petersen’s care.
The two men also conspired to distribute and receive child pornography from other sources. Spencer admitted that he and Petersen shared child pornography using Kik Messenger and that, in the spring of 2016, he filled a hard drive with more than 30,000 images and videos of child pornography and gave it to Petersen.
Spencer also pleaded guilty to felony contempt of court based on his willful and knowing refusal to comply with U.S. District Judge Charles R. Breyer’s order compelling him to decrypt three electronic devices seized from his residence under a valid search warrant. Twenty-one days after being held in civil contempt of court, Spencer decrypted the devices, which were found to contain child pornography, including images and a video of Spencer molesting a child who he was babysitting.
The investigation began when the FBI executed a search warrant at the home of Spencer’s co-defendant, Bryan Petersen, and found evidence on Petersen’s devices that Spencer was creating child pornography. Petersen pleaded guilty in 2017 and is awaiting sentencing.
Spencer, 21, and Petersen, 27, were indicted by a federal Grand Jury on May 11, 2017. The Grand Jury returned a superseding indictment on May 31, 2018, charging Spencer with Conspiracy to Distribute and Receive Child Pornography in violation of 18 U.S.C. § 2252(a)(2) and (b)(1), Production of Child Pornography in violation of 18 U.S.C. § 2251(a) (two counts), Distribution of Child Pornography in violation of 18 U.S.C. § 2252(a)(2) (two counts), Receipt of Child Pornography in violation of 18 U.S.C. § 2252(a)(2), Possession of Child Pornography in violation of 18 U.S.C. § 2252(a)(4)(B), and Contempt of Court in violation of 18 U.S.C. § 401(3). Under the plea agreement, Spencer pled guilty to all counts and agreed to a sentence of 30 years’ imprisonment, subject to approval by Judge Breyer.
Spencer has been in custody since his arrest in April 2017. His sentencing hearing is scheduled for February 20, 2019, at 10:00 am before Judge Breyer in San Francisco. The maximum statutory penalty is 30 years for each count of production of child pornography and 20 years for the other child pornography counts, a fine of up to $250,000, plus restitution to the victims. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Julie D. Garcia is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Tong Zhang and Alycee Lane. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Anchorage Man Charged for Illegal Possession of Firearm in Connection with Stolen Vehicle InvestigationRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Yako Miska Andrew, 28, of Anchorage, has been charged for illegally possessing a firearm as a convicted felon. The charge is a result of last week’s undercover “stolen vehicle sweep” conducted by APD, with the assistance of other state and federal law enforcement agencies.
According to the criminal complaint, on Oct. 3, 2018, APD officers identified two suspected stolen vehicles located in a parking lot on 5th Avenue in Anchorage. While attempting to contact the occupants of the vehicles, an individual later identified as Yako Andrew, immediately fled on foot from one of the vehicles and was seen with a pistol in his hand. During the foot pursuit, Andrew discarded the pistol and was apprehended by APD officers at the scene. The recovered firearm was a Glock semi-automatic pistol. When interviewed by law enforcement, Andrew stated that he found the firearm and that it had been in his possession for approximately four days.
If Andrew is convicted, the crime of felon in possession of a firearm carries a maximum penalty of 10 years in prison and a $250,000 fine. Andrew has two previous felony convictions with the State of Alaska, including one for Vehicle Theft, and was therefore prohibited from possessing a firearm.
The Anchorage Police Department (APD), Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Kelly Cavanaugh.
This case was also 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.
A criminal complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Acting Assistant Attorney General Jeffrey H. Wood Delivers Remarks at the 29th Interpol Wildlife Crime Working Group Meeting in LondonRead the Press Release
Remarks as Prepared for Delivery
Good Morning. On behalf of the Attorney General of the United States, Jeff Sessions, I want to express appreciation to INTERPOL for inviting me here today, specifically the members of the Wildlife Crime Working Group and its chair, Grant Miller, and the members of the Environmental Crimes Enforcement Committee and its chair, Calum McDonald. I also want to express appreciation to Her Majesty’s Government for hosting this week’s series of important meetings and events on the topic of wildlife trafficking.
It is my honor to serve as the Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. In this role, I am privileged to lead a talented team of more than 600 attorneys and staff at the U.S. Department of Justice. They work hard every day to enforce our nation’s environmental and conservation laws and to defend good governance and the rule of law across our nation.
I am delighted to open today’s session of INTERPOL’s 29th Wildlife Crime Working Group meeting, and to address you, the investigators, police, and prosecutors who work each day in your respective sovereign nations to uncover and punish criminals who illegally poach and traffic protected wildlife. You are the ones on the front lines in your nations who will be responsible for putting into action the commitments expressed at the London Conference this week. Without your on-the-ground efforts each day, the goals and promises made by the delegates here this week would go unmet and unfulfilled. And those who seek to decimate protected wildlife for selfish and illegal gain would go undetected and unpunished.
The United States is committed to working across our government, and with multi-national entities such as INTERPOL, to focus our international investments to combat wildlife trafficking in the most strategic and effective way possible.
Within the first month of his presidency, President Trump directly engaged this fight when he issued an Executive Order recognizing wildlife trafficking as a dangerous form of transnational organized crime. In that order, President Trump directed the U.S. Government to use all the tools at its disposal to disrupt and dismantle organized criminal organizations and the lawless networks they operate.
His Administration has responded to that call. We estimate that the United States government will fund more than $90 million in counter-wildlife trafficking programs and projects in the coming year, including our criminal investigatory and prosecution efforts.
The U.S. Department of Justice is fully engaged in this effort.
Under the leadership of Attorney General Sessions, who will also be here this week to deliver the United States Official Statement to the London Conference on Wildlife Trafficking, the Department of Justice is prosecuting criminals engaged in wildlife poaching and trafficking, and continuing to seek stiff penalties for those convicted of wildlife trafficking and related offenses.
Each year, American law enforcement prosecutes thousands of poaching and other wildlife crimes, at both the federal and state levels. Federal prosecutors in the Department of Justice work aggressively with investigative agents from the Fish and Wildlife Service, National Oceanic & Atmospheric Administration, the Department of Homeland Security, and others to pursue criminal cases to the fullest extent.
Since the Trump Administration took office in January of 2017, our Division’s prosecutors have convicted more than 30 defendants for wildlife trafficking crimes, with another 25 charged during that period. During this same period, significant numbers of additional defendants have been charged and convicted in cases brought by U.S. Attorney Offices across our country, and many other cases are currently under investigation for possible prosecution.
Earlier this year, our Division’s prosecutors obtained a significant prison sentence for a New York defendant found guilty of smuggling parts taken from endangered African lions and tigers. In another case this year, a California resident was sentenced to more than two years in federal prison for smuggling horns taken from endangered African black rhinos. And as part of a multi-year operation that included this case, at least 50 other defendants have been arrested, charged, convicted, and sentenced in recent years for smuggling ivory taken from African or Asian elephants, rhino horns, and other protected species.
Across our government, we will continue our efforts not just to seize illegal wildlife items and arrest couriers, but we will also work our way up the chain to disrupt organized criminal networks. To meet this challenge, we are committed to improving our working relationships with those in other countries engaged in the same efforts.
We all recognize that our host nation this week, the United Kingdom, is a leader in this fight. In just the last two weeks, the U.K. arrested and will extradite to the U.S. an individual charged with trafficking in rhino horns. This kind of international cooperation is essential to effectively prosecute traffickers and those in their networks, no matter where they are located.
Likewise, where we are able under U.S. law, we will continue to pursue charges stemming from financial transactions connected to wildlife trafficking. We support efforts to broaden all countries’ efforts to attack the financing of wildlife trafficking and deprive networks of the proceeds of their crimes. As you know, criminals are in this business to profit, and the more effectively we pursue those profits, the more we can disrupt this illegal trade. To that end, we have worked this year to improve intelligence gathering, as well as to improve the sharing and leveraging of that intelligence to better identify networks involved in these crimes. These efforts are showing results.
As those here know, INTERPOL also plays a key role in these collaborative efforts, and the opportunities that working groups such as this one provide are key to those efforts. During my tenure at the Department of Justice, our prosecutors have continued to help advance INTERPOL’s environmental crimes efforts. Our prosecutors serve in a leadership position on INTERPOL’s Environmental Compliance and Enforcement Committee, and in a leadership position in other environmental crimes working groups. To tackle challenges like the illegal wildlife trade, we need forums like this one for law enforcement officials to meet to discuss new strategies and practices, share experience and expertise, and build the bridges of cooperation that are vital in this international fight.
Let me conclude with this: the reasons for battling this illegality are clear and justified.
First, wildlife trafficking violates our nation’s laws, and the lawbreakers know it. The federal Lacey Act—on the books for almost 120 years —makes it a felony punishable by up to five years in prison to knowingly import, export, buy, sell, or even receive wildlife that a person knows was killed illegally, or taken in violation of federal or foreign law. Currently, the Lacey Act, though imperfect, is the strongest tool that federal prosecutors have to stop the flow of illegally poached wildlife into, out of, and around the United States.
Second, these crimes are more pervasive than many outside this room realize. The annual value of illegal wildlife trafficking ranks alongside the illicit trade in drugs, weapons, and humans. A recent U.S. Government Accountability Office report cites estimates for this illegal trade as high as $23 billion annually.
Third, we know that many of these crimes are intertwined with, and often funding, other forms of violent or organized crime. It is becoming increasingly clear that at least some of the proceeds of wildlife smuggling, especially wildlife taken illegally from Africa, are funding large criminal organizations and even terrorist groups. Wildlife trafficking not only threatens the continued viability of thousands of species worldwide, but the substantial illicit funds derived from this trafficking threaten global security, fuel corruption and lawlessness, and harm legitimate businesses. And we are not talking about small change here: just one kilogram of rhino horn can sell for as much as $70,000 in Asian markets. We cannot abide commerce like this, derived from the illegal slaughter of protected wildlife, to fund other criminality and lawlessness around the world.
Fourth, ending the senseless extermination of God’s majestic creatures is simply the right thing to do. We don’t want to just tell our children and grandchildren about the African elephant and the black rhino; we want our children and grandchildren to see and experience these creatures themselves. As the Psalmist wrote, “How many are your works, Lord! In wisdom you made them all; the earth is full of your creatures.” (Psalm 104:24, NIV).
Under Attorney General Sessions, the Justice Department’s prosecutors are fighting to make sure that those who scheme and plot to criminally profit from the exploitation of protected wildlife are brought to justice, as many defendants across our country are learning.
We are grateful for your work on this vital mission as well. Thank you.
3 Floridians Charged in Counterfeit Bank Check SchemeRead the Press Release
PITTSBURGH, PA - Three Florida residents have been indicted by a federal grand jury in Pittsburgh, Pennsylvania on charges of conspiracy to commit offenses against the United States, possessing and uttering counterfeit securities, and possession of stolen mail, United States Attorney Scott W. Brady announced today.
The seven-count indictment, returned on October 9, named Calar Braxton aka Vivian Hugo, aka Taylor Crimson, 44, of Orlando, Florida: Brian Omar Campbell aka Vincent Hugo, aka Troy Crimson, 28 of Orlando, Florida; and Cheryl Brown aka Loraine Johnson, 48, of Riverview, Florida.
According to information presented to the court, Braxton, Campbell, and Brown conspired to purchase merchandise from area retailers by using counterfeit bank checks. After checking into a local hotel on October 5, 2017, the defendants stole mail addressed to individuals living in the area and opened it. If the defendants found a check, they recorded its account and routing numbers and used that information to produce counterfeit bank checks. Afterwards, they used the counterfeit checks on October 5-6, 2017, to purchase merchandise from retailers such as Victoria’s Secret, Dick’s Sporting Goods and Macy’s Department Store. The scheme ended when members of the North Fayette Township Police Department obtained a warrant for the hotel and searched it. During the search, the police recovered a laser printer, stolen mail, and blank stock used for printing checks.
The law provides for a maximum total sentence of 50 years in prison, a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Michael Leo Ivory is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the North Fayette Township Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
9 October 2018
Wichita Man Sentenced for Stealing Guns from a Sheriff's CarRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Tuesday to 57 months in federal prison for stealing guns out of an undercover Sedgwick County Sheriff's car, U.S. Attorney Stephen McAllister said.
Travis J. Keller, 38, Wichita, Kan., pleaded guilty to one count of possessing stolen firearms. In his plea, he admitted that he and co-defendant Justin W. Winger, took guns from the unmarked car, including a 9 mm handgun, a 12-guage shotgun and a 5.56 caliber rifle.
Co-defendant Arthur M. Mannie is scheduled for trial Jan. 8. Co-defendant Justin W. Winger is scheduled for sentencing Nov. 19.
McAllister commended the Sedgwick County Sheriff’s Office and Assistant U.S. Attorney Matt Treaster for their work on the case.
Warrensburg Woman Sentenced to 18 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Warrensburg, Mo., woman was sentenced in federal court today for her role in a conspiracy to distribute methamphetamine.
Davita Ann Kelly, 38, was sentenced by U.S. Chief District Judge Greg Kays to 18 years and nine months in federal prison without parole.
On Dec. 27, 2017, Kelly pleaded guilty to participating in a conspiracy to distribute methamphetamine from August 2014 to March 2016. Kelly admitted that she sold methamphetamine to a confidential informant and an undercover officer on eight occasions in 2015, and to an undercover officer on two more occasions in January 2016.
Warrensburg police officers executed a search warrant at a storage facility rented by Kelly on March 31, 2016. Officers seized several firearms from the unit, including a .38-caliber revolver, a 9mm pistol and two .22-caliber rifles.
The investigation began after law enforcement officers executed a search warrant at Kelly’s residence on Aug. 29, 2014, and seized methamphetamine, hydromorphone pills, marijuana, heroin and drug paraphernalia.
Co-defendant Matthew Waylon Newman, 33, of Warrensburg, was sentenced on May 31, 2018, to 17 years and seven months in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to possessing a firearm in furtherance of a drug-trafficking crime. Co-defendant Stacy A. Lyman, 39, of Warrensburg, has pleaded guilty to his role in the drug-trafficking conspiracy and to being a felon in possession of a firearm, and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Johnson County, Mo., Sheriff’s Department and the Warrensburg, Mo., Police Department.
Violent Felon Sentenced for Possessing Stolen, High Capacity FirearmRead the Press Release
RICHMOND, Va. – A Chester man was sentenced today to 30 months in prison for possessing a stolen, high-capacity firearm after a violent felony conviction.
“Violent felons who illegally possess firearms are a threat to the safety of our law enforcement officers and the communities they serve,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to aggressively pursue those who have forfeited their Second Amendment rights due to felony conviction, and together with our federal, state, and local law enforcement partners we are zeroing in on felons who are unlawfully possessing firearms. My thanks to the ATF for their excellent work on this case.”
According to court documents, Derrick Anthony Savage, 29, was stopped on April 2 while driving through Fort Lee with a defective headlight. When officers made contact with Savage, they smelled the strong odor of burnt marijuana coming from inside the car, in which Savage was transporting four young children and their father. When officers directed Savage and the front-seat passenger to get out of the car, Savage refused and tried to stop his passenger from getting out as instructed. After officers physically removed Savage from the vehicle, he continued to resist efforts to detain him, requiring one officer to draw his Taser. A search of the car recovered a plastic bag containing 43.5 grams of marijuana, a digital scale, and a handgun loaded with a high-capacity magazine. The handgun was found under the driver’s seat, unsecured and in close proximity to the children. After the gun was recovered, Savage repeatedly stated that he had stolen it to protect himself from unspecified threats. Savage had previously been convicted of robbery, a violent felony, and was prohibited from possessing a firearm.
“Armed criminals threaten the safety of our communities, and combatting violent gun crime is ATF’s top priority,” said Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “We are committed to working with our law enforcement partners to catch those who illegally possess firearms and put them behind bars where they belong.”
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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Kaitlin G. Cooke prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-54.
U.S. Attorney Joins "Night to Unite" in Macon-Bibb County, Works with Local Law Enforcement to Distribute Hundreds of Free Gun Locks Across Macon, Albany and ColumbusRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that 500 firearm locking devices and firearm safety kits provided by the U.S. Attorney for the Middle District of Georgia will be given out by the Bibb County Sheriff’s Office as part of Bibb County’s first annual “Night to Unite” event Tuesday, October 9. Firearm locking devices and firearm safety kits will also be handed out in Albany and Columbus at later dates.
The U.S. Attorney’s Office for the Middle District of Georgia received the firearm safety kits from Project ChildSafe, a program developed by the National Shooting Sports Foundation. Working with local law enforcement, the U.S. Attorney’s Office plans to distribute gunlocks in Macon, Columbus, and Albany. The program was designed by the National Shooting Sports Foundation to promote firearm safety through the distribution of free firearm safety kits, each including a gun lock and educational material on safe handling and tips on secure storage. The Bibb County Sheriff’s Office will hand out the firearm safety kits to gun owners in the Macon area.
“Respecting the Second Amendment goes hand-in-hand with responsible gun safety practices,” said Charles Peeler, U.S. Attorney for the Middle District of Georgia. “I am grateful for the close partnership we enjoy with our local law enforcement agencies that will be distributing hundreds of firearm locks directly into the hands of citizens. The practice of locking up a firearm can prevent a weapon from being improperly used, protecting children and making our communities safer.”
Citizens in Albany and Columbus will also be receiving firearm locking devices and firearm safety kits courtesy of the U.S. Attorney’s Office for the Middle District of Georgia and the National Shooting Sports Foundation. The firearm locking devices and firearm safety kits will be distributed to Albany gun owners by the Albany Police Department and to Columbus gun owners by the Columbus Police Department at each agency’s discretion. For more information on their distribution, please contact those agencies directly.
Since 1999, Project ChildSafe has partnered with more than 15,000 law enforcement agencies to distribute more than 37 million firearm safety kits nationwide. You can learn more about Project ChildSafe and the National Shooting Sports Foundation by visiting www.projectchildsafe.org.
Night to Unite is an event focused on forging stronger connections between citizens and law enforcement, as well as strengthening community policing activities and sending a message to criminals that neighbors are united against crime. There are events all day Tuesday in Bibb County. To learn more, please contact Judy Gordon, Neighborhood Watch Coordinator with the Bibb County Sheriff’s Office at (478) 745-5162 or (478) 447-9763.
Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
U.S. Attorney Bob Troyer Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
DENVER – 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 the District of Colorado’s PSN program, a broad spectrum of stakeholders have worked together to identify the Colorado communities with the most pressing violent crime problems and have developed comprehensive solutions to address them. PSN focuses enforcement efforts on the most violent offenders, particularly serial shooters, and partners with local prevention and reentry programs for lasting reductions in crime. PSN is consistent with the strategy the Colorado’s U.S. Attorney’s Office has developed for several years, using data analysis to target serial shooters.
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.
“In Colorado it’s just a very small percentage of people who commit the vast majority of the violent crime,” said U.S. Attorney Bob Troyer. “By identifying and prosecuting those people, we not only reduce the most crime, we do so with the least disruption to communities.”
Marking the one-year anniversary of the revitalized PSN program, here are some of the highlights our work:
Enforcement Actions
Colorado’s PSN program uses three Crime Gun Intelligence Centers in those areas of the state with the worst violent crime problems. Federal, state, and local investigators working with these centers combine forensic analysis related to firearms with a variety of other data to focus investigations on and build cases against the people responsible for the majority of the shootings in their communities. Examples of these cases include:
- Eight members of the Bloods street gang were prosecuted and received sentences of up to 100 months on charges of Violent Crimes in Aid of Racketerring (VICAR). Court documents stated that the Bloods were an enterprise whose business is violence, including murder and using firearms for drug trafficking. Most were felons who were prohibited from possessing firearms. (https://www.justice.gov/usao-co/pr/local-and-federal-law-enforcement-team-indict-and-arrest-violent-members-bloods-gang)
- James Harley Wheeler, age 24, was sentenced to serve 7 years for brandishing a firearm during a marijuana deal that resulted in a shooting death. (https://www.justice.gov/usao-co/pr/denver-man-sentenced-prison-following-federal-firearm-crime)
- Kendall Crockett, age 23, was sentenced to nearly 7 years for stealing firearms from a federal firearm licensee (FFL). This is one of multiple cases where defendants were prosecuted for brazenly stealing firearms from FFLs. (https://www.justice.gov/usao-co/pr/atf-us-attorneys-office-teams-local-law-enforcement-take-down-crews-breaking-gun-stores)
- Aaron Carson Cheek, age 27, was sentenced to serve 7 years for brandishing a firearm while robbing Home Depot. (https://www.justice.gov/usao-co/pr/felon-who-attempted-rob-home-depot-golden-sentenced-federal-prison)
- Daniel Anthony Garcia, age 28, was sentenced to 37 months for illegally entering an occupied home, pistol-whipping a man, and firing a gun to threaten occupants. (https://www.justice.gov/usao-co/pr/pueblo-man-sentenced-federal-prison-illegally-possessing-firearms)
- Jeremy Lee Cabral, age 22, was sentenced to 10 years for firing a gun in a parking lot during an attempted carjacking. (https://www.justice.gov/usao-co/pr/denver-man-sentenced-ten-years-imprisonment-firing-gun-parking-lot-during-attempted)
Community Partnerships
The U.S. Attorney’s Office partners with various community groups to provide education and outreach, including participating in the Colorado Lawyers’ Committee Hate Crime Mock Trial program, offering the Protecting Houses of Worship program to educate faith-based communities about practical security measures, and joining law enforcement at events like Coffee with a Cop. The U.S. Attorney’s Office also participates in re-entry services for people returning to the community after imprisonment, including speaking at Fair Chance job fairs and partnering with the Bureau of Prisons and the United States Probation Office to provide inmates training on job interviewing and resume writing.
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.
Tulare County Man Pleads Guilty to Gun Charges in Series of Armed RobberiesRead the Press Release
FRESNO, Calif. — Javier Beltran, 34, of Strathmore, pleaded guilty today to two counts of use of a firearm during a crime of violence, U.S. Attorney McGregor W. Scott announced.
According to court documents, Beltran was a member of a conspiracy to commit a series of armed robberies of gas stations, convenience stores, and liquor stores from May 19, 2016, until July 26, 2017. The indictment alleges that Beltran and his conspirators committed at least seven armed robberies in Tulare and Kern Counties between May 2016 and January 2017. The next month, Beltran and his associates travelled to Nebraska, where they committed two more robberies. They then returned to California, where they committed three more armed robberies.
In his guilty plea, Beltran admitted that he used a firearm to rob two liquor stores. First, Beltran admitted that on January 18, 2017, he and other conspirators robbed Joe’s Westside in Porterville, California. Prior to the robbery, Beltran and other conspirators stole a 2006 Chevrolet Trailblazer by pushing a hole in the driver’s side lock, cracking the steering shaft, and starting the vehicle without a key. They drove the vehicle to Joe’s Westside in Porterville, California, where they entered the store wearing masks and carrying guns.
Inside the store, Beltran and other co-conspirators ordered the store clerk to the ground at gunpoint, forced the clerk to open the cash register, and stole over $8,000. Beltran and his associates fled in the stolen Chevrolet Trailblazer, which they left approximately half a mile away with the engine still running.
Second, Beltran admitted that on July 22, 2017, he and other co-conspirators robbed Woodville Liquor in Woodville, California. Prior to the robbery, Beltran and his associates stole a 2006 Chevrolet Silverado by cracking the steering shaft and starting the vehicle without a key. They drove the vehicle to Woodville Liquor in Woodville, California. Beltran entered the store along with two other suspects, each carrying a firearm. They ordered the customers in the store to the ground at gunpoint and used zip ties to tie up one of the store employees. They then stole approximately $2,000 in cash, $4,000 in checks, bottles of whiskey, and cartons of cigarettes before fleeing in the stolen vehicle, which they left a short distance from Woodville Liquor.
This case was the product of an investigation by the Federal Bureau of Investigation, Tulare County Sheriff’s Office, Porterville Police Department, Lindsay Police Department, Bakersfield Police Department, Fremont (Nebraska) Police Department, and Dodge County (Nebraska) Sheriff’s Office. Assistant United States Attorneys Ross Pearson and Kathleen Servatius are prosecuting the case.
Beltran is scheduled to be sentenced by Judge Lawrence J. O’Neill on Monday, January 14, 2019, at 8:30 a.m. Beltran faces a mandatory minimum statutory penalty of 32 years in prison for the two firearms offenses to which he pleaded guilty, a maximum statutory penalty of life in prison, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
An additional defendant, Ulises Medina, is also charged in this case. His next court appearance is set for January 7, 2019. The charges are only allegations; Medina is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
The Drug Enforcement Administration and U.S. Attorney’s Office Announce a National Prescription Take–Back Events on St. Croix and St. Thomas for Saturday, October 27thRead the Press Release
Drug Enforcement Administration (DEA) Special Agent in Charge, A.J. Collazo and U.S. Attorney Gretchen C.F. Shappert announced an upcoming prescription take-back event, scheduled for October 27th on St. Croix and St. Thomas. The National Prescription Drug Take-Back Day addresses a crucial public safety and public health issue. According to the 2016 National Survey on Drug Use and Health, 6.2 million Americans have misused controlled prescription drugs. The study shows that a majority of abused prescription drugs were obtained from family and friends, often from the home medicine cabinet. The DEA’s Take-Back Day events provide an opportunity for Americans to prevent drug addiction and overdose deaths. Take-Back Day also provides for an effective way to dispose of prescription drugs without harm to the environment.
"It’s an honor to officially join efforts with the U.S. Attorney’s Office for DEA’s National Prescription Drug Take Back Day", said SAC Collazo. "This event not only contributes in saving lives of opioid-addicted victims, but will make our communities safer. We are certain that this 16th edition of the National Take Back Day will be a success in the Virgin Islands."
"Unused and left-over prescription drugs are oftentimes misused and abused by children and family members", said U.S. Attorney Shappert. "Removing them from the home takes away the possibility of accidental use and possible abuse. The DEA Take-Back Program also ensures that these drugs are disposed of responsibly, and that they do not harm the environment."
Persons wishing to dispose of unused prescription drugs on St. Croix can take those prescriptions to the Gallows Bay, Kingshill, and Frederiksted Post Offices between the hours of 10:00 a.m. and 2:00 p.m. on Saturday, October 27th. For disposal of unused prescriptions on St. Thomas, persons may take them to the Frenchtown and Sugar Estates Post Offices, also on Saturday, October 27th, between the hours of 10:00 a.m. and 2:00 p.m. During the week leading up to the Take-Back event, DEA will also be collecting unused prescription drugs from local senior care facilities for supervised disposal.
For more information on National Take-Back Day, please contact 1-800-882-9539 or check out the DEA website.
Texas Hospital Administrator Convicted of Health Care Fraud for Role in $16 Million Medicare Fraud SchemeRead the Press Release
A federal jury convicted a Houston-area hospital administrator on Friday for his role in a $16 million Medicare fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge D. Richard Goss of IRS Criminal Investigation’s (IRS-CI) Houston Field Office, and Unit Division Chief Stormy Kelly of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Starsky D. Bomer, 45, of Harris County, Texas, was convicted of one count of conspiracy to pay and receive healthcare kickbacks, two counts of violating the Anti-Kickback Statute, and one count of conspiracy to commit health care fraud following a five-day trial. Sentencing has been scheduled for Jan. 28, 2019 before U.S. District Judge Vanessa D. Gilmore of the Southern District of Texas, who presided over the trial.
According to evidence presented at trial, from 2011 until February 2013, Bomer and others engaged in a scheme to defraud Medicare by submitting to Medicare, through Atrium Medical Center (Atrium) and Pristine Healthcare (Pristine), approximately $16 million in false and fraudulent claims for partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for severe mental illness.
The evidence presented at trial showed that Bomer, the hospitals’ chief financial officer and chief operating officer, orchestrated a scheme by which he and others paid illegal bribes and kickbacks to group home owners and patient recruiters in exchange for sending Medicare patients to Atrium and Pristine’s PHPs. Bomer disguised bribes and kickbacks as salary payments and transportations payments to group home owners in exchange for patient referrals, the evidence showed. In addition, evidence presented at trial showed that Bomer knew that most of the patients admitted to Atrium and Pristine’s PHPs did not qualify for and were never provided legitimate partial hospital services.
Evidence at trial demonstrated that Bomer and his coconspirators billed Medicare over $16 million for psychiatric treatment purportedly provided to PHP patients at Atrium and Pristine’s PHPs.
The case was investigated by the HHS-OIG, FBI, IRS-CI, OPM-OIG, and MFCU. The case was prosecuted by Trial Attorneys Jason Knutson, Aleza Remis, and Gerald M. Moody Jr. of the Criminal Division’s Fraud Section.
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.
St. Thomas Woman Sentenced to Prison for Contempt of CourtRead the Press Release
St. Thomas, USVI – Nilda N. Morton, 33, was sentenced on Thursday to 37 months in prison, to be run consecutively from any other sentence she is currently serving, for her contempt of Court for her refusal to testify in a revocation proceeding, after being ordered by the Court to respond to questioning by the prosecution, United States Attorney Gretchen C.F. Shappert announced. District Judge Curtis V. Gomez also sentenced Morton to three years of supervised release, also consecutive, 400 hours of community service, a $2,000 fine, and a $100 special assessment.
On April 30, 2018, Morton was found guilty, by a jury of failing to answer questions of the prosecutor and the judge after being advised on numerous occasions that the 5th Amendment Right against self-incrimination was not applicable in her case. According to court testimony, Ms. Morton was called to testify as a witness in a revocation proceeding surrounding events directly related to her own criminal narcotics case, a case in which she had previously pled guilty and signed an agreement to cooperate with the government. As one of the conditions of her cooperation agreement, she agreed to testify fully and truthfully about her knowledge and participations in any crimes. During the revocation hearing, she chose to invoke her 5th Amendment privilege as to other questions directly pertaining to her underlying case – a privilege she had previously waived by her guilty plea and cooperation agreement.
This case was prosecuted by Assistant United States Attorney Delia Smith.
St. Thomas Man Covicted by a Federal Jury is Sentenced for Cocaine Smuggling through the Cyril E. King AirportRead the Press Release
St. Thomas, USVI – Gerald W. Mercer, 42, was sentenced on Thursday to 191 months in prison for his role in a conspiracy to possess with intent to distribute cocaine, United States Attorney Gretchen C.F. Shappert announced. District Judge Curtis V. Gomez also sentenced Mercer to five years of supervised release, 400 hours of community service, and a $100 special assessment.
On June 1, 2018, Mercer was found guilty, by a federal jury sitting in St. Thomas. According to trial testimony, Mercer was a member of a large-scale cocaine smuggling organization that operated out of the Cyril E. King Airport between January of 2012 and November of 2016. The drug organization recruited a member of the Virgin Islands Police Department’s Executive Security Unit (ESU) who used his law enforcement credentials to bypass security screening at Cyril E. King Airport. The conspiracy smuggled at least 75 kilograms of cocaine from St. Thomas to Miami and Fort Lauderdale. The officer who transported the drugs was to be paid $2,500 per kilogram. According to trial testimony, Mercer would travel to the officer’s residence and provide him with a cellular phone, the first half of the payment, and a duffle bag containing the cocaine. Mercer would instruct the officer to purchase airline tickets and hotel reservations. While at the residence, Mercer would prepare and pack the cocaine (an average of 5 kilograms per trip) in the officer’s carryon bag. Upon arrival in Florida, the officer would receive the second half of his payment.
This case was investigated by Homeland Security Investigations, the Federal Bureau of Investigations and the U.S. Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Delia Smith.
South Jersey Man Sentenced to 78 Months in Prison for Stealing Car, Robbing Three BanksRead the Press Release
CAMDEN, N.J. – A Vineland, New Jersey, man was sentenced today to 78 months in prison for stealing a car and using it as part of a South Jersey bank robbery spree in September and October 2016, U.S. Attorney Craig Carpenito announced.
Nathan L. Wallace, 29, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with three counts of bank robbery. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Wallace admitted stealing a 2003 Chrysler Sebring on Sept. 22, 2016, by threatening the victim with a toy revolver resembling an actual firearm. Wallace also admitted taking the Sebring on Sept. 24, 2016, to a BB&T Bank in Buena Vista Township, New Jersey, where he used the toy revolver to threaten bank employees and demand money. After taking cash from the employees, Wallace fled in the Sebring.
Wallace also admitted traveling in the same stolen Sebring with Quintin L. Jones, 36, of Vineland, to rob a Newfield National Bank in Newfield, New Jersey, on Oct. 7, 2016, and a Cape Bank in Upper Deerfield Township, New Jersey, on Oct. 11, 2016. During both robberies, one of the defendants used a toy revolver to threaten bank employees and steal money before they both fled in the stolen Searing. Wallace admitted that he and Jones set fire to the Sebring on Oct. 15, 2016, in order to destroy evidence of the robberies.
In addition to the prison term, Judge Bumb sentenced Wallace to three years of supervised release and ordered him to pay restitution of $33,206.
Jones pleaded guilty on Nov. 8, 2017, and was sentenced by Judge Bumb on Sept. 12, 2018, to 100 months in prison.
U.S. Attorney Carpenito credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, the N.J. State Police, under the direction of Acting Superintendent Col. Patrick J. Callahan, as well as the Vineland Police Department, the Hamilton Township Police Department, the Newfield Police Department, the Cumberland County Prosecutor’s Office, and the Salem County Prosecutor’s Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Maggie F. Moy Esq., Camden
Solon woman sentenced to nearly three years in prison for embezzling $156,000 from someone entrusted to her careRead the Press Release
A Solon woman was sentenced to nearly three years in federal prison for embezzling $156,000 from a fund established on behalf of someone entrusted to her care.
Teresita Sidoti, 52, was sentenced to 30 months in prison. She was ordered to pay $156,949 to the victim’s family and $27,797 to the Internal Revenue Service. She pleaded guilty earlier this year to bank fraud and filing false tax returns.
Sidoti worked as a caregiver for Noel Zugay and was the trustee of the Noel Zugay Supplemental Needs Trust. From 2009 through 2015, Sidoti devised a scheme to defraud the trust of funds held at Huntington Bank for Zugay’s benefit. Sidoti used those funds for her personal benefit. She also diverted deposits that should have been to the trust account into her own personal account, according to the criminal information.
In total, Sidoti embezzled approximately $156,949, according to the information.
Sidoti also failed to claim some of this income on her tax returns between 2011 and 2014, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall, following an investigation by the FBI and IRS – Criminal Investigations.
Second Florida Man Admits to Trafficking Kilos of Cocaine into Rhode Island from Puerto RicoRead the Press Release
PROVIDENCE – The second of two Florida men charged with trafficking more than 5 kilograms of cocaine through the U.S. Postal Service into Rhode Island from Puerto Rico pleaded guilty in U.S. District Court in Providence today.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Gabriel Conception, 28, of Kissimmee, FL, pleaded guilty to conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine, announced United States Attorney Stephen G. Dambruch, Inspector in Charge of the U.S. Postal Inspection Service Joseph W. Cronin, and Ann C. Assumpico, Superintendent of the Rhode Island State Police.
Conception admitted to the Court that he conspired with Rinaxo Rufino, 34, of Miramar, FL, to receive at least three multi-kilogram shipments of cocaine shipped through the U.S. Postal Service from Puerto Rico to residences in Central Falls and Cumberland. Each shipment contained approximately three kilograms of cocaine.
The packages were intercepted and seized by U.S. Postal Inspectors prior to delivery to the intended recipients. The two men were arrested on August 26, 2017, by U.S. Postal Inspectors and members of the Rhode Island State Police High Intensity Drug Trafficking Area Task.
Rufino was arrested when he attempted to retrieve a package containing 3,029 grams of cocaine addressed to a Central Falls residence. U.S. Postal Inspectors identified cocaine in the package prior to delivery and removed the controlled substance. In its place inspectors placed similarly weighted non-contraband material. Concepcion was arrested moments later in the vicinity of the residence.
Additionally, as part of the investigation into Concepcion and Rufino’s drug trafficking activities, a package addressed for delivery to a residence in Cumberland that contained approximately 3007.2 grams of cocaine was seized by Postal Inspectors on August 25, 2017. Another package addressed for delivery to a Central Falls residence which contained approximately 3006.9 grams of cocaine was seized by Postal Inspectors on August 28, 2017.
Rinaxo Rufino is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on December 12, 2018. Gabriel Concepcion is scheduled to be sentenced on January 9, 2019.
The cases are being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
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San Diego Woman Charged in Federal Indictment Alleging Ponzi Scheme that Claimed to Offer Investments in Construction LoansRead the Press Release
SANTA ANA, California – A San Diego woman has been arrested on federal fraud and identity theft charges that allege she ran a multi-million dollar Ponzi scheme in which she solicited funds from investors by falsely claiming their money would be used to make short-term construction loans to other investors seeking to defer capital gains taxes through “1031 like-kind exchanges.”
Susan Margaret Werth, 57, was arrested by FBI special agents at her residence on October 4. Later that day, after being transported to United States District Court in Santa Ana, Werth entered a not guilty plea to charges contained in a four-count indictment returned on October 3 by a federal grand jury in Los Angeles.
The indictment charges Werth with two counts of wire fraud and two counts of aggravated identity theft related to the alleged scheme she ran out of two San Diego-based companies, Commercial Exchange Solutions, Inc. (CES) and Exchange Solutions Company, Inc. (ESC).
Werth and others working at her direction allegedly solicited millions of dollars from victims by falsely claiming their funds would be used to provide short-term construction loans to clients who were engaged in like-kind exchanges of commercial properties. According to the indictment, a 1031 like-kind exchange is a method of deferring the payment of capital gains taxes pursuant to section 1031 of the tax code in which a taxpayer sells an investment property and reinvests the proceeds to buy a like-kind investment property of equal or greater value.
Werth falsely promised victims that their investments were risk-free and 100 percent guaranteed by CES’s “collateral account” at Wells Fargo Bank, according to the indictment. Werth allegedly lulled victims by creating fictitious Wells Fargo bank statements to show that CES had an account with a balance of $7.2 million, as well as fabricating emails she claimed were from an employee of Wells Fargo Asset Management. Werth also falsely told investors that her companies were investing in properties that had been evaluated by the international valuation firm of Duff & Phelps.
In return for their short-term investments of 30 to 90 days, Werth promised victims a rate of return of at least 15 percent.
According to the indictment, “[i]n truth and in fact, as defendant Werth then well knew, the representations described above were false and fraudulent in that defendant Werth operated CES/ESC as a Ponzi scheme, in which the vast majority of its incoming revenue was comprised of victim-investor funds, which defendant Werth used to repay prior victim-investors, to pay her personal expenses, to withdraw cash, to repay investors’ principal, and to make fictitious profit payments to some investors.”
The identity theft charges stem from communications Werth allegedly sent under the names of the Well Fargo employee and an employee of Duff & Phelps
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If she were to be convicted of the charges in the indictment, Werth would face a statutory maximum sentence of 20 years in federal prison for each of the wire fraud charges, as well as a mandatory two-year consecutive sentence for identity theft.
At her arraignment last week, Werth was released on a $100,000 bond. She was ordered to stand trial in United States District Court in Santa Ana on November 27.
On October 1, the Securities and Exchange Commission filed a civil complaint in this matter that alleges Werth raised approximately $26 million in her Ponzi scheme, and spent $2 million to fund her personal lifestyle.
The case against Werth is being investigated by the Federal Bureau of Investigation.
This matter is being prosecuted by Assistant United States Attorney Valerie Makarewicz of the Tax Division.
Roswell Man Charged with Using Interstate Communications to Threaten to Injure an IndividualRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Las Cruces, N.M., today ordered that Kory Dwayne Adams, 35, of Roswell, N.M., remain in custody pending trial on charges of using interstate communications to threaten to injure another individual. Trial has yet to be scheduled.
The FBI arrested Kory Adams on Sept. 28, 2018, for allegedly posting a message on social media which threatened to injure an individual. According to the complaint, Kory Adams’ brother, Dain Justin Adams, 37, also of Roswell, was arrested on Sept. 19, 2018, on a federal criminal complaint alleging child pornography offenses. On Sept. 25, 2018, the FBI received information that a social media account allegedly belonging to Kory Adams had posted a threatening communication directed at a particular individual and the threat allegedly appeared to have been related to Dain Adams’ child pornography charges.
If convicted of the charges in the criminal complaint, Kory Adams faces a statutory maximum penalty of five years in prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Roswell office of the FBI and is being prosecuted by Assistant U.S. Attorneys Dustin Segovia and Marisa A. Ong.
Roswell Man Charged with Federal Methamphetamine Trafficking OffenseRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Alfonso Vazquez, 31, of Roswell, N.M., with a methamphetamine trafficking offense. The charge arises from the distribution of approximately 56.5 grams of methamphetamine to an undercover law enforcement agent. Vazquez was remanded into custody pending trial, which has yet to be scheduled.
According to the criminal complaint, Vazquez distributed approximately 56.5 grams of methamphetamine to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) on Aug. 10, 2018, in Chaves County, N.M.
The penalty for a conviction on the offense charged in the criminal complaint is a statutory minimum penalty of five years and a maximum of 40 years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces offices of the ATF, DEA and Homeland Security Investigations and the HIDTA Chaves County Metro Narcotics Task Force. Assistant U.S. Attorney Sarah M. Davenport is prosecuting the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Romanian national accused of being leader of an international cyber fraud ring that used malware to steal $4 million after taking people’s passwords, personal and bank informationRead the Press Release
A Romanian national was returned to the United States Friday to face federal charges that accuse him of being the leader of an international cyber fraud ring that used malware to steal in excess of $4 million after taking people’s passwords, personal identifying information, and bank account information.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Justin E. Herdman of the Northern District of Ohio, Peter Elliot of the U.S. Marshals Service, Stephen D. Anthony of the FBI and Chief Kevin Bielozer of the Westlake Police Department made the announcement.
Romeo Vasile Chita, 38, was charged in a four-count indictment unsealed in U.S. District Court in Cleveland, Ohio. The charges include racketeering, wire fraud conspiracy, conspiracy to launder money and conspiracy to traffic in counterfeit services.
Eight other defendants were named in the indictment unsealed today. Two defendants—Daniel Mihai Radu, 39; and Manuel Tudor, 37, —have already been extradited from Romania and are awaiting trial in Cleveland. The other five defendants remain at large.
“Romeo Vasile Chita allegedly led a multinational criminal enterprise that stole sensitive personal data through deceptive phishing emails and organized fraudulent online auctions, causing millions of dollars in losses to innocent victims,” said Assistant Attorney General Benczkowski. “The Criminal Division will continue to work with our law enforcement partners, both domestic and international, to aggressively disrupt and dismantle international cyber criminal organizations that victimize our citizens and businesses.”
“This defendant led an international operation that used fraudulent emails and the internet to scam hard-working people out of their savings,” said U.S. Attorney Herdman. “It is gratifying that this defendant will be forced to answer the charges filed against him.”
According to the indictment, Chita was based in Romania and led a racketeering enterprise that operated in the United States, Romania, Canada, Croatia, Latvia, Hungary, Bosnia, China, Jordan, Malaysia and elsewhere. The goal of the enterprise was to generate money through various criminal acts, including wire fraud, trafficking in counterfeit services, and money laundering. It began operating as early as 2007.
Among other things, Chita’s group sent “phishing” emails purporting to be from the Better Business Bureau, the IRS, U.S. Tax Court, the National Payroll Records Center, and others. When a victim clicked on a link in a fraudulent email, specialized malware incorporating a “keylogger” was installed onto the victims’ computers, allowing members of the criminal enterprise to capture sensitive and confidential information, including the victims’ bank account information.
The conspirators, including Chita, then transmitted the sensitive information to each other and others for the purpose of fraudulently withdrawing funds from the victims’ bank accounts. The stolen funds were then transferred to specific accounts in the United States, where the money was withdrawn and transferred to other members of the conspiracy. The conspirators used their own network of accounts and “money mules” to transfer hundreds of thousands of dollars at a time to conceal the origin of the money.
The defendants also are alleged to have engaged in an extensive campaign of online auction fraud, placing ads for non-existent cars and other expensive items on eBay, Craigslist, Autotrader.com, and other websites. According to the indictment, victims were tricked into wiring thousands of dollars to money mules to purchase these vehicles. The money mules then transferred and laundered the proceeds for the benefit of the enterprise.
Chita managed and facilitated the various schemes, as well as directing other conspirators to launder fraudulently obtained money.
This case was investigated by the U.S. Marshals Service, the FBI, the Westlake Police Department and the U.S. Secret Service. The case is being prosecuted by Senior Counsel Brian L. Levine of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Duncan Brown of the Northern District of Ohio. Valuable assistance is being provided by the Justice Department’s Office of International Affairs. The Justice Department thanks the government of Romania for its assistance in this matter.
The prosecution of Chita prosecution is timely, as it occurs during National Cyber Security Awareness Month (NCSAM). NCSAM – observed every October – was created as a collaborative effort between government and industry to ensure every American has the resources they need to stay safer and more secure online. The Department of Justice encourages citizens to take advantage of cybersecurity tips and information provided by law enforcement to ensure their personal information is secured.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Reno Man Sentenced to 40 Years in Prison for Sexually Exploiting an InfantRead the Press Release
RENO, Nev. – A Reno resident who sexually exploited an infant and distributed child pornography over the Internet was sentenced today by U.S. District Judge Howard D. McKibben to serve 480 months in federal prison to be followed by lifetime supervision, announced U.S. Attorney Dayle Elieson for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, Chief Jason Soto for the Reno Police Department, and Sheriff Chuck Allen for the Washoe County Sheriff’s Office.
Derrick Joseph Rady, 37, previously pleaded guilty to sexual exploitation of a minor and distribution of child pornography. Upon completion of his prison term, he will be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
The case was initiated when Facebook and Google identified a Reno resident, later determined to be Rady, who possibly possessed child pornography to the National Center for Missing and Exploited Children (NCMEC) for investigation by law enforcement. Members of the Northern Nevada Child Exploitation Task Force executed search warrants at Rady’s residence. The search warrant revealed that Rady possessed approximately 900 images and videos of child pornography. Investigators also determined that Rady used a cell phone to take sexually explicit photos of an infant and shared images of a minor engaging in sexually explicit conduct.
The investigation was conducted by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. The case was prosecuted by Assistant U.S. Attorney Sue Fahami.
If you have information regarding possible child sexual exploitation, make a report to NCMEC’s CyberTipline at www.cybertipline.org.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Registered Sex Offender Sentenced to 18 Years in Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of PAUL LEWIS AXELSON, 42, a registered sex offender, to 216 months in prison on one count of receipt of child pornography. AXELSON, who pleaded guilty on February 13, 2018, was sentenced today before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, AXELSON was convicted in 2008 in Dakota County, Minnesota of third degree criminal sexual conduct and possession of child pornography. In April 2016, while on probation for the 2008 conviction, AXELSON used file sharing software to download, collect, and distribute child pornography. A forensic review of AXELSON’S computer revealed that he possessed more than 160,000 image and video files containing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative, launched in May 2006, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Minneapolis Police Department.
This case was prosecuted by Assistant U.S. Attorney Carol M. Kayser.
Defendant Information:
PAUL LEWIS AXELSON, 42
Hastings, Minn.
Convicted:
- Receipt of child pornography, 1 count
Sentenced:
- 216 months in prison
- 10 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Queensbury Man Sentenced to 180 Months for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Chad Knowlton, age 24, of Queensbury, New York, was sentenced today to 180 months in prison for distribution, receipt, and possession of child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Thomas J. McAvoy also sentenced Knowlton to a lifetime of supervised release, to begin following his term of imprisonment. Knowlton will also be required to register as a sex offender upon his release from prison.
Knowlton pled guilty on June 12, 2018. As part of his plea, Knowlton admitted using a custom-built desktop computer, equipped with peer-to-peer file-sharing software, to download and distribute child pornography. Knowlton also admitted to using a phone to download additional child pornography. Overall, Knowlton downloaded and retained over 1,000 images and videos depicting child pornography.
Knowlton also faces state charges alleging the sexual abuse of children in Warren County. He is innocent unless and until proven guilty of those charges.
This case was investigated by the FBI and the New York State Police, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Queens Man Pleads Guilty to Armed Bank Robbery and Weapons PossessionRead the Press Release
Earlier today, Leroy Scott, a resident of Queens, pled guilty at the federal courthouse in Central Islip, New York, to armed bank robbery and a related firearms possession charge. When sentenced, Scott faces up to 25 years’ imprisonment for the bank robbery and a minimum of seven years’ imprisonment and up to life imprisonment for the firearms charge.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty plea.
According to court filings and prior public proceedings in the case, on August 21, 2017, Scott acted as a lookout for a co-conspirator, Pedro Benitez, who entered the Bridgehampton Savings Bank in Hewlett, New York, ordered customers and employees to the floor at gunpoint and demanded money from bank employees. Another co-conspirator, Troy Tavares, waited outside in a vehicle. Benitez fled the bank with over $12,000 and Tavares drove Benitez to a nearby location where they met up with Scott and another co-conspirator to split the proceeds. At his guilty plea proceeding, Scott admitted that he had also participated in two additional robberies that the crew committed during the summer of 2017, both in Nassau County. In each of those robberies, Scott had assisted in the planning and acted as a lookout for Benitez. In total, the robbery crew stole over $70,000 from four banks between July and September of 2017.
Scott is the last of the co-defendants in this bank robbery crew to plead guilty in this case. The government’s case is being prosecuted by Assistant United States Attorney Michael Maffei.
The Defendant:
LEROY SCOTT
Age: 28
Far Rockaway, New YorkE.D.N.Y. Docket No. 17-CR-572 (S-1) (JS)
Psychiatrist Pleads Guilty to Healthcare Fraud and Wire FraudRead the Press Release
Abingdon, VIRGINIA – A former psychiatrist who previously worked in Lebanon, Virginia pleaded guilty last week to healthcare fraud and wire fraud, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Alfredo Cervantes, 62, pleaded guilty to one count of health care fraud and one count of wire fraud. As a condition of his guilty plea, Cervantes, whose medical license and DEA registration were revoked in 2015, agreed never to practice medicine again.
“Protecting the health and safety of patients, as well as the integrity of our health-care system, is a priority of the Department of Justice,” U.S. Attorney Cullen stated. “We will continue to investigate and prosecute physicians who violate the sacred trust placed in them by their patients, the public, and health-care officials. I am grateful for the hard work and dedication of the Virginia Attorney General’s Office and the Department of Health and Human Services in bringing this doctor to justice.”
“This was a violation of the law and of the duty of care that this doctor owed to one of his patients,” said Attorney General Mark Herring. “Cervantes’ stole from taxpayers and his unethical behavior could have jeopardized the health and welfare of a person in his care. I appreciate all the hard work done by my Medicaid Fraud Unit, the HHS Inspector General, and the U.S. Attorney’s Office to put a stop to this unlawful and unethical conduct.”
“Protecting patients from harm and the Medicare and Medicaid Programs from fraudulent billings is a top priority said Maureen R. Dixon, Special Agent in Charge for the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). HHS-OIG will work with our fellow law enforcement partners to aggressively investigate physicians who would cause harm to our beneficiaries or steal from US Taxpayers.”
According to evidence presented at last week’s guilty plea hearing, Cervantes was employed by Mountain States Medical Group and Russell County Medical Center as a psychiatrist. In February 2012, Cervantes began a sexual relationship with one of his patients, which continued until February 18, 2014, when Cervantes ended the relationship and the patient attempted suicide. While that relationship was ongoing, Cervantes purchased alcohol for her and encouraged her to drink with him, despite the fact that he was prescribing her medications for which alcohol is contraindicated. During that time, Cervantes billed United Healthcare in the amount of $1,508 for psychiatric care of that patient, and caused Virginia Medicaid to be fraudulently billed $9,313 for prescription medications he wrote for that patient, when no legitimate psychiatric care of the patient was occurring.
Cervantes will be sentenced on January 4, 2019 at 10:30 a.m. He faces up to 30 years in prison and up to $500,000 in fines.
This case was investigated by the Department of Health and Human Services Office of Inspector General and the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit.
Special Assistant United States Attorney and Virginia Assistant Attorney General Janine Myatt and Assistant United States Attorney Zachary T. Lee are prosecuting the case for the United States.
Project Charleston -- Statement of United States Attorney Mike StuartRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement this morning during a press conference held at the Robert C. Byrd United States Courthouse in Charleston:
Remarks as prepared for delivery
“Good morning.
Attorney General Sessions and this Administration is wholly committed to working with our federal, state and local partners to ensure the safety of our streets, our families and our children. Frankly, we will no longer tolerate drug dealers, drug traffickers, violent criminals, or illegal guns on the street of the City of Charleston.
Our goal is simple -- To work with our federal, state and local partners to ensure safe streets and safe neighborhoods. A basic human right is to live safely in your home and your community. We intend to focus intense resources to ensure the streets of the West Side of Charleston are as safe as any neighborhoods in our state.
In what we are calling, “PROJECT CHARLESTON”, I have ordered a SURGE of federal resources and priorities to clean out violent elements and drugs from the West Side of Charleston. The instructions to my team cannot be more clear – “Put violent criminals and bad guys behind bars, off our streets, and away from the public as long as possible.” Following similar and successful efforts in Huntington, since our aggressive efforts in Huntington were announced, we have seen dramatic decreases in violent crime, criminal activity and overdoses. We expect the same or greater results in Charleston.
I want to personally thank Mayor Danny Jones, Charleston Police Chief Steve Cooper, and Kanawha County Prosecutor Chuck Miller for their partnership in this effort. “PROJECT CHARLESTON” would not be possible without their commitment and support.
In addition to Mayor Jones, Chief Cooper, and Prosecutor Miller, with me today are:
Supervisory Special Agent Wes Quigley, FBI
Assistant Special Agent in Charge David Gourley, DEA
Resident Agent in Charge Adam Black, ATF
Deputy Chief Jason Beckett, Charleston Police Department
Chief Deputy Sheriff Greg Young, Kanawha County Sheriff’s Department
With the assistance and commitment of our federal partners, “PROJECT CHARLESTON” ensures that every federal resource possible will be dedicated to working with our state and local partners to “Take Back These Streets” from troublemakers and hoodlums and those that bring havoc, chaos and despair to the Greater Charleston area.
Project Safe Neighborhoods (PSN) 2.0 is a priority of this Administration and Attorney General Jeff Sessions. Today is an important next step in those efforts.
Thank you.”
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Postal Employee Charged with Stealing from the MailRead the Press Release
ERIE, Pa. - A resident of Clymer, New York has been indicted by a federal grand jury in Erie on a charge of theft of mail by postal employee, United States Attorney Scott W. Brady announced today.
The one-count indictment named Rebecca A. Hulett, 63, 225 Cabbage Hill Road, Clymer, New York, as the sole defendant.
According to the indictment presented to the court, on or about March 17, 2017, Hulett, who was a postal employee, stole a $20 Federal Reserve Note from the mail.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, pleaded guilty in federal court to a charge of conspiracy to distribute 100 grams or more of heroin, United States Attorney Scott W. Brady announced today.
Angelo Everett, age 35, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Angelo Everett was indicted in connection with a DEA wiretap investigation. The intercepted wiretap communications revealed that Everett and others conspired to possess with intent to distribute and distribute over 100 grams of heroin between January and September 2016.
Judge Fischer scheduled sentencing for March 13, 2019. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. United States Attorney Brady commended the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Pittsburgh Bureau of Police, and Pennsylvania State Police for the investigation leading to the successful prosecution of Everett.
Pittsburgh Man Admits Distributing Child PornographyRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA pleaded guilty in federal court to distribution of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
James Clay Russell, 60, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on February 20, 2017, Russell distributed an image depicting the sexual exploitation of a minor under the age of 12 years using the website, "Chatstep.com". Chatstep.com detected the distribution activity and reported it to the National Center for Missing and Exploited Children, triggering an investigation of the Chatstep user. Russell was identified as the perpetrator and a search warrant was executed at his apartment, resulting in the seizure of computers and DVDs containing thousands of images and videos depicting the sexual exploitation of minors.
Judge Hornak scheduled sentencing for February 5, 2019, at 9:30 a.m. The law provides for a total sentence of not less than five years and not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Russell remains incarcerated pending the sentencing hearing.
Assistant United States Attorney Carolyn Bloch is prosecuting this case on behalf of the government.
The Pennsylvania Attorney General’s Office and the Department of Homeland Security, Homeland Security Investigations, conducted the investigation that led to the prosecution of Russell.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owners of Home Healthcare Company Charged with Tax FraudRead the Press Release
BOSTON – The co-owners of a Boston-area home healthcare company were charged in federal court in Boston today for underreporting income to the IRS resulting in over $1 million in losses.
Hannah Holland, 51, of Quincy, and Sheila O’Connell, 33, of North Weymouth, were charged in an Information with one count of conspiracy to defraud the United States and three counts of aiding and assisting in the preparation of false tax returns.
According to court documents, Holland and O’Connell co-owned and operated Erin’s Own Home Healthcare Inc. (“Erin’s Own”), a home healthcare business. Between 2010 and 2014, Holland and O’Connell cashed over $3.5 million of Erin’s Own business checks through nominee bank accounts controlled by an unnamed individual. During this time period, Holland also personally cashed over $77,000 of Erin’s Own business receipts. None of these funds were ever reported to the IRS or accounted for in the company’s tax filings. Instead, Holland and O’Connell provided their tax preparer with a limited set of the financial records that did not cover the substantial amounts of business funds Holland and O’Connell diverted. As a result of the underreporting, Erin’s Own caused a loss of $1,126,112 to the IRS.
The conspiracy charge provides for a sentence of no greater than five years in prison, three years supervised release, and a fine $250,000. The charge of aiding and assisting in the preparation of false tax returns provides for a sentence of no greater than three years in prison, one year supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Economic Crimes Unit, and Trial Attorney Brittney Campbell of the Department of Justice’s Tax Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Newburyport Man Pleads Guilty to Dealing FirearmsRead the Press Release
BOSTON – A man with alleged ties to the Latin Gangsta’ Disciples street gang pleaded guilty today in federal court in Boston in connection with the sale of numerous firearms in and around Lawrence.
Jose Ilarraza, a/k/a “Kae-Kae,” 26, of Newburyport, pleaded guilty to dealing firearms without a license and conspiracy to deal firearms without a license. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 23, 2019. In February 2018, Ilarraza was charged along with Bryan Torres-Almanzar, a/k/a “Flex,” 19, and Eric Valentin, a/k/a “Jefe,” 22, both of whom previously pleaded guilty.
In September 2017, an individual who was working as a cooperating witness for federal investigators was approached by Ilarraza after Ilarraza heard that the cooperating witness was interested in obtaining firearms to send to the Dominican Republic. Ilarraza, who was incarcerated at the time on state charges of breaking and entering and resisting arrest, instructed the cooperating witness to contact Torres-Almanzar, who, according to Ilarraza, was heavily involved in firearms trafficking.
On six occasions between Sept. 12, 2017, and Oct. 19, 2017, another cooperating witness used Ilarraza’s tip to purchase firearms from Torres-Almanzar and Valentin. The cooperating witness was directed to put the proceeds of the first such sale into Ilarraza’s canteen account at the Middleton House of Corrections.
The charges of dealing in firearms without a license and conspiracy each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Lawrence Police Chief Roy P. Vasque; Essex County Sheriff Kevin F. Coppinger; Essex County District Attorney Jonathan W. Blodgett; Lowell Superintendent of Police Kelly Richardson; and Nashua (N.H.) Police Chief Andrew J. Lavoie made the announcement today.
New London Tax Preparer Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that YVES AUBOURG, 49, of New London, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a federal tax offense.
According to court documents and statements made in court, AUBOURG prepared more than 2,000 federal tax returns for the 2011 through 2015 tax years through a tax return preparation practice he operated in New London. AUBOURG falsified information on numerous returns that he prepared for clients by fabricating the existence of education expenses, fabricating deductions for business expenses and charitable contributions, and by claiming exemptions for fictitious dependents.
Through AUBOURG’s preparation of false tax returns, including his own tax returns, the government lost a total of $264,870.
AUBOURG pleaded guilty to one count of aiding and assisting the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years. Judge Meyer scheduled sentencing for January 15, 2019.
AUBOURG is required to make full restitution to the government. The IRS is taking action to recover unpaid taxes from AUBOURG’s clients, and his restitution figure will be reduced as money is recovered from his clients.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Lauren C. Clark.
N.Y. Resident Admits to Running Large-Scale Indoor Marijuana OperationsRead the Press Release
PROVIDENCE – A New York man pleaded guilty in U.S. District Court in Providence today to charges that he participated in conspiracies to operate large-scale, sophisticated marijuana grow facilities inside a converted Providence mill building.
Appearing before U.S. District Court Chief Judge William E. Smith, Irwan Anwar, 54, pleaded guilty to conspiracy to manufacture 100 or more marijuana plants, manufacturing more than 100 marijuana plants, and using or maintaining a drug premises.
Anwar’s guilty plea is announced by United States Attorney Stephen G. Dambruch and Special Agent in Charge of the Boston Division of the FBI Harold H. Shaw.
According to information presented to the Court, in August 2015, FBI agents, assisted by agents and officers from the DEA, Rhode Island State Police and Providence Police Department, executed a series of federal court-authorized search warrants at 725 Branch Avenue in Providence, a former mill building which had been sub-divided into numerous units. Two of the units were found to contain multiple rooms housing sophisticated, large-scale hydroponic marijuana grows.
One unit contained 550 marijuana plants in various stages of growth. The second unit contained 252 plants in various stages of growth. Both units contained vast amounts of sophisticated equipment and supplies used to grow and harvest marijuana.
Anwar, and another person, Ilhawan Cha, 35, of Providence, admitted to having been employed for more than a year by Richard A. Yang, 38, of Providence, to maintain the facilities, and to grow and harvest the marijuana.
Yang pleaded guilty on April 7, 2017, to conspiracy to manufacture over 100 marijuana plants and manufacture of over 100 marijuana plants. He was sentenced on April 20, 2017, to 24 months in federal prison to be followed by 4 years supervised release.
Cha pleaded guilty on May 12, 2016, to conspiracy to manufacture 100 or more marijuana plants, manufacturing more than 100 marijuana plants, and using or maintaining a drug premises. Cha, who had been detained in federal custody since his arrest on February 23, 2016, was sentenced on April 11, 2017, to time served to be followed by 3 years supervised release.
Anwar is scheduled to be sentenced on January 19, 2019.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
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Mineral County man admits to a firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Thomas Edward Wright, of Keyser, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Wright, age 29, pled guilty to one count of “Possession of a Stolen Firearm.” Wright admitted to possessing a stolen .22 caliber long rifle in February 2016 in Mineral County.
Wright faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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 U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Keyser Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Michigan Man Arrested for Alien SmugglingRead the Press Release
PLATTSBURGH, NEW YORK – Narcis Gabriel Burcea, age 26, of Sterling Heights, Michigan, was arrested on October 6 for transporting Andreea Tita Pirlica, an alien and citizen of Romania, following Pirlica’s illegal entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Acting Chief Patrol Agent, United States Border Patrol, Swanton Sector.
The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
According to the criminal complaints, Burcea entered the United States from Canada at the Massena, New York, Port of Entry on October 5, 2018. He spent the night at a local hotel, then traveled to the Akwesasne Mohawk Reservation on October 6. Border Patrol Agents saw Burcea enter a parking lot alone, and a few minutes later saw him leave the parking lot with Pirlica. The investigation revealed that Pirlica traveled from Canada to the United States via boat and was driven to the area of the parking lot where she met Burcea. Agents stopped Burcea as he and Pirlica traveled toward Massena.
The charges filed against Burcea carry a maximum sentence of 5 years in prison, a fine of up to $250,000, and a post-imprisonment term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Pirlica is charged with the misdemeanor crime of illegal entry.
This case is being investigated by Border Patrol, with assistance from U.S. Customs and Border Protection's Massena Office of Field Operations, and is being prosecuted by Assistant U.S. Attorney Katherine Kopita.
Miami-Area Pharmacy Owner Pleads Guilty for Role in $8.4 Million Medicare Fraud SchemeRead the Press Release
The owner of a Miami-area pharmacy pleaded guilty for his role in Medicare prescription fraud scheme involving approximately $8.4 million in fraudulent billings.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida; Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office; Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS), and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA) Miami Field Division made the announcement.
Antonio Perez Jr., 48, of Miami Beach, Florida, pleaded guilty today before U.S. District Judge Federico A. Moreno to one count of conspiracy to commit health care fraud.
According to admissions made in connection with his guilty plea, Perez Jr. was the owner of A.R.A. Medical Services Inc., which did business under the name Valles Pharmacy Discount (Valles Pharmacy). Perez Jr. pleaded guilty to agreeing to pay illegal health care kickbacks to Medicare beneficiaries in exchange for a promise from the beneficiaries to fill their prescriptions at Valles Pharmacy, and to allow Valles Pharmacy to submit claims to Medicare for prescription drugs that were not provided to the beneficiaries. Perez Jr. also admitted that he submitted claims to Medicare for expensive prescription medications that Valles Pharmacy never purchased, and were never provided to Medicare beneficiaries. According to admissions made in connection with Perez Jr.’s plea, during the course of the scheme, Valles Pharmacy Discount submitted over $32 million in claims to Medicare for prescription drugs, of which approximately $8.4 million was for medically unnessecary prescription drugs that Valles Pharmacy never purchased, and were never provided to Medicare beneficiaries. Perez Jr. also agreed to forfeit a property located on Collins Avenue in Miami Beach, as well as several bank accounts used to carry out the fraud.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. The case was prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
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. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Methuen Physician Convicted of Insider Trading in Shares of Ariad PharmaceuticalsRead the Press Release
BOSTON – A Methuen physician was convicted today by a federal jury of insider trading in the shares of Ariad Pharmaceuticals based on information gleaned from his spouse, who worked at the company.
Harold Altvater, 57, was convicted following a one-week jury trial of three counts of securities fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 16, 2019.
The charges related to three occasions in late 2013 when Dr. Altvater misappropriated nonpublic information from his spouse about the safety of Ariad’s only marketed product, the leukemia drug Iclusig, as well as about the company’s negotiations with the U.S. Food and Drug Administration (FDA) concerning whether the drug would be permitted to remain on the market in the wake of serious adverse events that occurred during the drug’s clinical trials. At the time, Altvater’s spouse was the director of drug safety for Ariad. Without his spouse’s knowledge, Altvater then traded in Ariad shares in his personal accounts ahead of several critical announcements, avoiding losses and notching gains totaling approximately $115,000. In 2017, Ariad was acquired by Takeda Pharmaceutical Co., Ltd.
Today’s verdict marks the second time in three months that a Boston jury has convicted defendants of insider trading in the shares of local pharmaceutical companies. In July, two defendants, Schultz “Jason” Chan, 54, of Newton, and Songjiang Wang, 54, of Westford, were convicted of securities fraud and conspiracy to commit securities fraud in connection with a scheme to trade on inside information concerning their employers, Akebia Pharmaceuticals and Merrimack Pharmaceuticals, respectively. Chan and Wang are scheduled to be sentenced on Oct. 22 and Nov. 5, 2018.
In June 2018, a fourth pharmaceutical executive, Robert Gadimian, of California-based Puma Technology, Ltd., was sentenced to 27 months in prison after pleading guilty to seven counts of securities fraud in connection with trading on inside information in that company, earning profits of nearly $1 million.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit and Special Assistant U.S. Attorney Michael Joseph Vito are prosecuting the case.
Meadville Woman Charged with Defrauding Social SecurityRead the Press Release
ERIE, Pa. - A resident of Meadville, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of social security fraud, United States Attorney Scott W. Brady announced today.
The one-count indictment named Karen Louise Keiper, 49, as the sole defendant.
According to the indictment presented to the court, between on or about February 13, 2013 and August 7, 2015, Keiper fraudulently received approximately $28,948.00 in Supplemental Security Income benefit payments by concealing the fact that she did not live alone, failed to disclose the existence of a bank account and claimed she did not receive any other type of income in order in order to continue to receive these payments.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Massachusetts Sex Offender Sentenced for Travelling to Rhode Island to Engage in Illicit Sex with a MinorRead the Press Release
PROVIDENCE – A 57-year-old man from Fairhaven, MA, was sentenced today to 97 months in federal prison for traveling in interstate commerce to engage in sexual activity with a minor.
Robert F. Eccleston, a registered sex offender, admitted to the Court that on July 12, 2016, he traveled from Massachusetts to East Providence, RI, expecting to meet with and engage in illicit sexual activity with a 15-year-old boy he had been communicating with on the Internet.
Eccleston pleaded guilty in U.S. District Court in Providence on September 21, 2017, to travelling in interstate commerce for the purpose of engaging in illicit sexual conduct.
At sentencing today, U.S. District Court Chief Judge William E. Smith also sentenced Eccleston to serve lifetime supervised release upon completion of his term of incarceration.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 78-97 months. The government recommended the court impose a sentence of 97 months in prison.
Eccleston’s sentence is announced by United States Attorney Stephen G. Dambruch, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
At the time of his guilty plea, Eccleston admitted to the Court that on July 7, 2016, he responded to an online Personals/Encounters posting and photograph of a male who initially represented that he was 18-years-old and single. The online posting was actually posted earlier that day by a Rhode Island State Police Detective assigned to the Rhode Island State Police Internet Crimes Against Children (ICAC) task force.
Over the next several days, an HSI agent posing as the person who placed the online posting and Eccleston engaged in a series of Internet and email communications. The communications quickly became sexual in nature. The agent, posing as the person who placed the online posting, repeatedly told Eccleston that he was only 15-years-old, adding that he lived with his mother. As the communications continued, and believing that he was actually communicating with a 15-year-old, Eccleston asked for photographs of the boy, including an explicit nude photograph.
According to court documents and information presented to the Court, at Eccleston’s urging, the two agreed to meet in East Providence on July 12, 2016, to engage in sexual activity. ICAC task force members and HSI agents arrested Eccleston near the location where he believed that he would meeting with the 15-year-old boy.
Eccleston has been detained in federal custody since his arrest on July 12, 2016.
According to court records, Eccleston was ordered to register as a sex offender in Massachusetts in 2006, following his conviction on charges that he raped a person under 18.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
The Rhode Island Internet Crimes Against Children Task Force is comprised of law enforcement personnel from the Rhode Island State Police, Homeland Security Investigations, and the Warwick, Cranston, East Providence, Newport, Pawtucket, North Kingstown, Bristol, and Woonsocket Police Departments.
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Massachusetts Man Pleads Guilty to Cocaine TraffickingRead the Press Release
CONCORD - Jason Belmer, 30, of Haverhill, Massachusetts pleaded guilty in federal court to possession with intent to distribute cocaine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on August 31, 2017, the defendant was stopped by a member of the Salem Police Department after running a red light. The officer observed various signs that the defendant was driving while impaired. Another officer arrived on scene and observed drug paraphernalia in plain view in the front seat of the car. This observation prompted officers to ask the defendant for consent to search the car, at which time the defendant attempted to flee the traffic stop. A struggle ensued and the defendant fought with police. After the defendant was taken into custody, officers received a search warrant for the car and recovered approximately 1,191 grams of cocaine and approximately $59,775 dollars in cash.
Belmer is scheduled to be sentenced on January 16, 2019. The cash has been administratively forfeited to the United States.
“Those who seek to profit from the sales of drugs will be aggressively prosecuted,” said U.S. Attorney Murray. “I commend the hard work of the Salem police officers whose efforts got over a kilogram of cocaine off the streets. We will continue to work with federal, state, and local law enforcement officers to stop the distribution of illegal drugs in the Granite State.”
This matter was investigated by the Salem Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Manhattan Man Sentenced for Viewing Child PornRead the Press Release
TOPEKA, KAN. – A Manhattan man was sentenced Tuesday to 51 months in federal prison for viewing child pornography, U.S. Attorney Stephen McAllister said. He also was ordered to pay $26,000 in restitution whose images he viewed.
John Francis Wear, 48, Manhattan, Kan., pleaded guilty to one count of accessing child pornography online. Wear admitted he downloaded software that masks a user’s identity online so he could view sexually explicit photos of children under the age of 18.
McAllister commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Manchester Man Pleads Guilty to Being a Felon in Possession of FirearmsRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Hector Velez, 22, formerly of Manchester, pleaded guilty in federal court to being a felon in possession of firearms.
According to court documents and statements made in court, on July 30, 2017, Manchester Police stopped a car driven by Velez. Upon seeing what appeared to be drugs in plain view inside the car, the officers impounded the car and applied for a search warrant. A search of the vehicle resulted in the seizure of two firearms, as well as marijuana and cocaine. Velez, as a previously convicted felon, is legally prohibited from possessing firearms.
Velez is scheduled to be sentenced on January 16, 2019.
“This case demonstrate the effectiveness of Project Safe Neighborhoods,” said U.S. Attorney Murray. “Through this program, we work closely with our law enforcement partners to get guns out of the hands of criminals so we can reduce violent crime and protect the safety of the citizens of the Granite State.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorneys Shane B. Kelbley and Anna Z. Krasinski.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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