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4 October 2018
Troutdale Doctor Sentenced for Purchasing and Administering Foreign-Sourced Botox and JuvadermRead the Press Release
PORTLAND, Ore. – Brenda Roberts, 54, of Troutdale, Oregon, was sentenced today to six months’ probation and 40 hours of community service for illegally purchasing foreign-sourced Botox and Juvaderm on the internet and administering both to patients in her home.
“Purchasing foreign-sourced and unapproved drugs and devices on the internet poses a grave danger to the health and safety patients. Dr. Roberts violated her professional duty to ‘do no harm’ and instead subjected her patients to an incredible risk of injury,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“U.S. consumers rely on FDA oversight to ensure that the drugs and medical devices they use are safe and effective. Rogue health care professionals who obtain foreign unapproved medical products, and dispense and administer those products to their patients, put the health of those patients at significant risk,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations’ Los Angeles Field Office. “We will continue to pursue and bring to justice those who choose to put the public’s health at such risk.”
According to court documents, beginning in 2008, Roberts provided medical services from her home in Troutdale as a supplement to her full-time position with an outside medical practice. Roberts would purchase Botox and Juvaderm from websites including BuckaDayPharmacy.com, AllDayChemist.com and FindlandiaPharmacy.com that were manufactured for distribution in foreign countries, but not approved for use in the U.S. Roberts would administer Botox and Juvaderm to clients from her home office.
The Drug Enforcement Administration (DEA) investigated Roberts for dispensing controlled substances over the internet. During their investigation, the DEA learned of Roberts administering Botox to patients in her home and referred the matter to the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI) for further investigation. Roberts resolved these claims via a monetary civil settlement with the U.S. Attorney’s Office Civil Division in May 2018.
Roberts previously pleaded guilty to one count of receipt in interstate commerce of adulterated or misbranded drugs or devices and delivery for pay in violation of 21 U.S.C. § 331(c) on June 19, 2018.
This case was investigated by FDA-OCI and DEA and was prosecuted by Donna B. Maddux, Assistant U.S. Attorney for the District of Oregon.
Trial Scheduled for Champaign Man Charged for Allegedly Trafficking Counterfeit Xanax, Money LaunderingRead the Press Release
URBANA, Ill. – A Champaign, Ill., man, Stephan Caamano, 23, appeared in federal court in Urbana today for arraignment on charges that he allegedly trafficked quantities of pills containing alprazolam, marked as ‘Xanax,’ and laundered proceeds of the alleged drug trafficking. Caamano, of the 1500 block of Glenshire Drive, appeared before U.S. Magistrate Judge Eric I. Long. Trial in the case is scheduled on Nov. 13, 2019, before U.S. District Judge Sara Darrow.
The superseding indictment returned by the grand jury on Oct. 2 alleges that from March 2017 to May 2018, Caamano trafficked quantities of pills containing alprazolam, marked as ‘Xanax,’ knowing it was not the drug Xanax manufactured by Pfizer. In addition, Caamano is charged with two counts of distribution of alprazolam, a Schedule IV controlled substance, and four counts of money laundering related to monetary transactions involving proceeds of the alleged drug trafficking. The charged transactions involved payment of Bitcoin in exchange for gold bullion on two occasions - April 12, 2017 and June 9, 2017; a wire transfer in the amount of $235,500 on or about July 31, 2017; and, the transfer of funds on Aug. 30, 2017, by personal check to a car dealership in the amount of $25,936.
Caamano was previously arrested and charged by complaint on May 29, 2018. Following Caamano’s initial appearance on the complaint, Judge Long ordered that Caamano undergo evaluation for competency. On Sept. 10, 2018, the court found Caamano competent to proceed and he was arraigned on two counts of distribution of alprazolam, charges returned by the grand jury in June. In addition, Caamano was ordered to remain detained in the custody of the U.S. Marshals Service.
According to the affidavit filed in support of the criminal complaint, in December 2017, the investigation began when Customs and Border Protection agents contacted DEA agents after seizing items that were allegedly destined for delivery to Caamano at various addresses in California and in the Champaign, Ill., area. The items included pill press machines, machine parts and alprazolam.
The charges are the result of investigation by the Drug Enforcement Administration, Springfield Resident Office; U.S. Customs and Border Protection, Homeland Security Investigations; the U.S. Postal Inspection Service; Champaign Police Department Street Crimes Unit and the Champaign County Sheriff’s Office. Assistant U.S. Attorney Rachel E. Ritzer is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois.
If convicted, the maximum statutory penalty for each count of trafficking in a counterfeit drug (one count) and for money laundering (four counts) is 20 years in prison. For distribution of a controlled substance (two counts), the statutory maximum penalty for each count is five years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Tractor-Trailer Driver Sentenced to Federal Prison for Transporting Illegal AliensRead the Press Release
In San Antonio this morning, a federal judge sentenced 36–year-old Gerardo Javier Carreon of Laredo, TX, to 70 months in federal prison followed by three years of supervised release for transporting illegal aliens, announced U.S. Attorney John F. Bash and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
On July 5, 2018, Carreon pleaded guilty to one count of conspiracy to transport illegal aliens. On June 12, 2018, authorities responding to a scene in the area of Loop 410 and Broadway discovered over 50 illegal aliens in and around a semi-tractor trailer driven by Carreon.
“As we’ve seen too many times, transporting human beings in tractor-trailers is unbelievably dangerous. This has to stop,” stated U.S. Attorney Bash. “We will vigorously prosecute drivers who commit this dangerous crime, and the penalties are stiff.”
“As this sentence makes clear, those who exploit people in for profit will themselves face consequences,” said HSI San Antonio Special Agent in Charge Folden. “Those responsible for illegally moving people into and through our country place personal profit ahead of public safety and border protection. They are driven by greed with little regard for the health and well-being of their human cargo, which can be a deadly combination.”
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is investigating this case. Assistant United States Attorneys Matt Lathrop and Christina Playton prosecuted this case on behalf of the Government.
Three Sentenced in Connection with Capital Region Drug ConspiracyRead the Press Release
ALBANY, NEW YORK – Shenika D. Boyd, aka “Misses,” age 38, of Albany, was sentenced today to 46 months in prison, to be followed by 6 years of supervised release, for conspiring to distribute cocaine and crack cocaine.
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).
Today, United States District Judge Mae A. D’Agostino also sentenced two others in connection with the conspiracy: Bobby R. Graham, age 51, of Albany, was sentenced to 3 years of probation, including 6 months of home confinement; and Jalessa Scott, age 27, of Schenectady, was sentenced to time served (about 17 months in jail), to be followed by 3 years of supervised release. As part of the federal investigation, Scott also pled guilty in Schenectady County Court to criminal possession of a firearm.
Boyd, Graham and Scott were among 12 people indicted in August 2017 for their involvement in a drug trafficking ring that operated in Schenectady and Albany.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, Schenectady County District Attorney’s Office, the U.S. Drug Enforcement Administration, Albany County Sheriff’s Office, New York State Police, and the New York Department of Corrections and Community Supervision. This case was prosecuted by Assistant U.S. Attorney Michael Barnett.
Texas Pilot Sentenced for Wire Fraud and Arson ConspiraciesRead the Press Release
TYLER, Texas – A 33-year-old pilot, formerly of Kemah, Texas, has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Theodore Robert Wright, III, pleaded guilty on Dec. 7, 2017, to conspiracy to commit wire fraud and conspiracy to commit arson and was sentenced to 65 months in federal prison today by U.S. District Judge Ron Clark. Wright was also ordered to pay restitution in the amount of $988,544.83.
According to information presented in court, Wright led a multi-jurisdictional fraud and arson scheme that spanned from Hawaii to the Gulf of Mexico and involved the destruction of various luxury goods, including vehicles, aircraft, and vessels. Wright and his co-conspirators, Shane Gordon, 46, and Raymond Fosdick, 42, both of Houston, and Edward Delima, 42, of Honolulu, Hawaii, acquired luxury goods and obtained insurance coverage for those goods in amounts exceeding their purchase prices. Wright and his co-conspirators then devised and carried out schemes to destroy those goods and defraud insurance companies.
The various assets destroyed in the scheme included a 1966 Beechcraft Baron, a 2008 Lamborghini Gallardo, a 1971 Cessna 500, and a 1998 Hunter Passage. The Beechcraft Baron made an emergency landing in the Gulf of Mexico, sank in deep water, and was not recovered. The Lamborghini Gallardo crashed into a ditch full of water, causing the vehicle to flood. The Cessna 500 was completely destroyed when Fosdick set it on fire at Wright’s direction at an airport in Athens, Texas. The Hunter Passage sank in a marina in Hawaii. Fraudulent insurance claims were filed in relation to each of these incidents. Wright and his co-defendants also filed a fraudulent $1 million personal injury lawsuit related to the crash in the Gulf of Mexico. The suit was settled for $100,000.
On May 17, 2017, Wright, Gordon, Fosdick, and Delima were charged with various offenses related to their conduct in the scheme in the Eastern District of Texas. Wright’s co-conspirators have all pleaded guilty. Delima pleaded guilty to conspiring to commit wire fraud and was sentenced to a five-year term of probation. Fosdick pleaded guilty to conspiring to commit wire fraud and conspiring to commit arson and on Jan. 24, 2018, was sentenced to 39 months in federal prison. Gordon pleaded guilty to making false statements to a federal agent and was sentenced to 24 months in federal prison today and ordered to pay restitution in the amount of $440,000.
“This kind of fraud causes everyone to pay higher insurance rates,” said U.S. Attorney Joseph D. Brown. “Just having those nice things destroyed is a shame. And for someone to cheat and make money off of it is particularly troubling.”
“Fraud victimizes businesses and costs Americans billions of dollars every year,” said ATF Special Agent in Charge Jeffrey C. Boshek II. “The deception carried out by Mr. Wright is particularly alarming due to the callous use of arson and staged emergencies which have the potential to place the public and first responders in danger.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FAA Law Enforcement Assistance Program, the Texas Department of Insurance, and the National Insurance Crime Bureau. It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr. with the assistance of Assistant U.S. Attorney Robert Wells.
Texas Patient Recruiter Sentenced to Nine Years in Prison for $3.6 Million Home Health Care Fraud SchemeRead the Press Release
WASHINGTON – A Houston, Texas-area patient recruiter was sentenced to 108 months in prison today for her role in a $3.6 million Medicare fraud scheme involving fraudulent claims for home health services.
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 and the Texas Attorney General’s Medicaid Fraud Unit (MFCU) made the announcement.
Mercy O. Ainabe, 52, of Houston, was sentenced by U.S. District Judge Sim Lake of the Southern District of Texas, who presided over the trial. After a three-day trial in May 2018, Ainabe was convicted of one count of conspiracy to commit health care fraud, five counts of health care fraud and one count of conspiracy to pay health care kickbacks.
According to evidence presented at trial, Ainabe, a long-time patient recruiter in the Houston area, controlled a substantial population of Medicare patients whose personal information she sold to home health care companies in exchange for kickbacks. The evidence at trial showed that Ainabe and her co-conspirators used a home health care company called Texas Tender Care to submit claims to Medicare for home health services that were not medically necessary and/or were not provided. Ainabe paid beneficiaries, doctors, physical therapy companies and others for the paperwork, Medicare beneficiary information and services needed to facilitate the fraud. To cover up the fraud, Ainabe tried to make it look as though she was being paid an hourly wage as a legitimate marketing representative, the evidence showed.
The case was investigated by the FBI, HHS-OIG and MFCU, 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 for the Southern District of Texas. The case is being prosecuted by Trial Attorneys Drew Pennebaker and Elizabeth Young of the 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. The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Surgeon Pleads Guilty in Forest Park Medical Center Bribery ScamRead the Press Release
A Mesquite-based bariatric surgeon today formally admitted his role in the $200 million Forest Park Medical Center fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
53-year-old Wade Neal Barker, one of Forest Park’s founding doctors, appeared in court this morning, where he pleaded guilty to conspiracy to pay and receive healthcare bribes and kickbacks as well as aiding and abetting commercial bribery.
“Patients trust doctors to make healthcare recommendations based on their best interests,” said Nealy Cox. “Instead, Dr. Barker let his own financial considerations guide decisions about where patients would be treated – and, in the process, defrauded millions from patients’ insurance. The Northern District of Texas will not tolerate plots that undermine confidence in the healthcare system.”
“With the plea in this conspiracy to defraud patients and the healthcare industry by those entrusted to administer and to protect it, the FBI and our law enforcement and regulatory partners will increase our efforts to shine even brighter lights on such schemes to restore the missing trust for all those harmed by the conspirator's actions,” said Eric Jackson, Special Agent-In-Charge of the FBI Dallas Division.
Barker is the seventh of 21 defendants to formally plead guilty in the bribery scheme, designed to induce doctors to refer lucrative patients – particularly those with high-reimbursing, out-of-network private insurance – to the now-defunct hospital, as opposed to other facilities.
Instead of billing patients for out-of-network co-payments, instituted by insurers to de-incentivize the high costs associated with out-of-network treatment, Forest Park allegedly assured patients they would pay in-network prices. Because they knew insurers wouldn’t tolerate such practices, they concealed the patient discounts and wrote off the difference as uncollected “bad debt.”
According to prosecutors, Barker and his co-conspirators shelled out approximately $40 million in bribes, disguised as “marketing money” and funneled through a shell company, between 2009 and 2013. Because he performed surgeries at Forest Park, Barker received these so-called “marketing” payments as well.
He faces roughly five to seven years in federal prison. Sentencing has not yet been set.
Co-defendants Richard Ferdinand Toussaint, Jr., another Forest Park Founder, and Alan Andrew Beauchamp, the hospital manager, have pleaded guilty in the case, along with several others. The remaining defendants are awaiting trial early next year.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense - Defense Criminal Investigative Service, the U.S. Office of Personnel Management Office of Inspector General, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Andrew Wirmani, Kate Pfeifle and Mark Tindall are prosecuting the case.
St. Albans Man Sentenced to 46 Months in Prison on Drug and Gun ChargesRead the Press Release
CHARLESTON, W. VA – Donald Wayne McCune of St. Albans was sentenced today to 46 months in prison for the distribution of methamphetamine and being a felon in possession of firearms, announced United States Attorney Mike Stuart. Stuart commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT), and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“Drugs and guns don’t mix. We don’t see too many drug dealers without guns,” said United States Attorney Mike Stuart. “And all too often, like McCune, the drug dealers identified for prosecution have previous felony convictions prohibiting them from possessing firearms. The result -- federal drug and gun charges. Why? Because guns in the hands of prohibited persons risks the lives of law enforcement and the public. We cannot tolerate that whatsoever.”
McCune, 55, pled guilty on May 24, 2018, and had been in federal custody since March 2, 2018. McCune admitted that he sold methamphetamine to a confidential informant on three occasions in 2017. When officers searched his home, they found six firearms, including an AR-15 rifle and several loaded handguns. At the time, McCune was a convicted felon—he had been convicted of the felony offense of uttering in Kanawha County in 2007.
Assistant United States Attorney Gabriele Wohl handled the prosecution. United States District Judge Irene C. Berger presided over the hearing.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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###Sixth Member of Violent New Haven Gang Pleads Guilty to Federal Racketeering and Firearm ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DEJUAN WARD, also known as “Hot Boi,” 21, of New Haven, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to racketeering and firearm charges stemming from his role in a violent street gang.
According to statements made in court, the New Haven Police Department’s Shooting Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have been investigating approximately 40 unsolved shootings in New Haven and Hamden. Ballistic examination of recovered cartridge cases determined that three firearms were used in 18 shootings committed in or around New Haven in 2016. The investigation has revealed that the firearms were possessed by members and associates of the Goodrich Street Boys (“GSB”), a New Haven street gang, and that GSB members also were involved in a number of other shootings in 2016, many of them retaliatory against rival gang members.
On August 3, 2017, a grand jury in New Haven returned a 13-count indictment charging WARD and five other GSB members with racketeering, attempted murder, firearm and narcotics trafficking offenses. The indictment alleges that, between September 2015 and May 2016, GSB members and associates were involved in six gang-related shootings that caused injuries to five individuals.
WARD pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity and one count of carrying a firearm during and in relation to a crime of violence. In pleading guilty, WARD admitted that he and other GSB members sold drugs, and that he was present when a rival gang member was shot on September 17, 2015.
At sentencing, the government will present evidence that WARD was the shooter during this incident.
The charge of conspiracy to engage in a pattern of racketeering activity carries a maximum term of imprisonment of 20 years, and the charge of possession of a firearm during an in relation to a crime of violence carries a mandatory consecutive prison term of five years.
WARD is detained pending sentencing. Judge Shea scheduled a sentencing hearing for November 28, 2018.
The other five defendants also have pleaded guilty and are detained while awaiting sentencing.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
This investigation is being conducted by ATF and the New Haven Police Department. The FBI, Hamden Police Department and New Haven State’s Attorney’s Office have provided critical assistance in the investigation.
An instrumental component of this investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter D. Markle, Rahul Kale and Jocelyn Courtney Kaoutzanis.
Rapid City Woman Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Linda Pastian, age 55, was sentenced on October 3, 2018, to 17½ years in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Pastian was indicted by a federal grand jury on September 17, 2017. The charge related to Pastian conspiring with others in receiving at least 500 grams of methamphetamine from California and Colorado, and then distributing it in the District of South Dakota between 2016 and 2017.
This case was investigated by the Unified Narcotics Enforcement Team, the Department of Homeland Security Investigations, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Pastian was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Woman Found Guilty of Prescription FraudRead the Press Release
United States Attorney Ron Parsons announced that Daphne Janis, age 37, of Rapid City, South Dakota, was found guilty of False Statements Relating to Health Care Matters, Obtaining Controlled Substances by Fraud, and Using a Communications Facility to Commit another Felony, following a federal jury trial in Rapid City.
The charges each carry a maximum sentence of 5 years in federal prison, and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established that between March 2016 and April 2017, Janis obtained Tramadol and health care services by failing to inform medical providers of previous active controlled substance prescriptions through fraud and deception. Janis acquired in excess of 3,500 Tramadol pills, over half of which were acquired by fraud.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General Office of Investigations. Assistant U.S. Attorney Megan Poppen prosecuted and tried the case.
A sentencing date is set for December 21, 2018. Janis was remanded to the custody of the U.S. Marshals Service pending sentencing.
Providence Man Charged with Witness Intimidation in Project Safe Neighborhoods CasesRead the Press Release
PROVIDENCE, RI – A Providence man arrested a week ago on federal indictments charging him with unlawfully selling four firearms, including two AR-47 assault rifles, was re-arrested yesterday and ordered detained in federal custody on a criminal complaint charging him with witness intimidation.
According to the criminal complaint, it is alleged that soon after his arraignment in U.S. District Court last Thursday, Emmanuel Miamen, 24, posted several threatening messages on social media directed at his indictment and a person who assisted the FBI in the Project Safe Neighborhoods Investigation.
On Tuesday, United States Attorney Stephen G. Dambruch, FBI Boston Division Special Agent in Charge Harold H. Shaw and ATF Boston Division Assistant Special Agent in Charge Kenneth K. Kwak announced the indictment of twenty-six individuals over the past 18 months in a series of Project Safe Neighborhoods investigations into firearm and drug trafficking in and around Providence.
It is alleged in two indictments returned against Miamen that in May and June 2018, he conspired with others to unlawfully sell two AR-47 assault rifles and two handguns. Additionally, it is alleged in the indictment, Miamen offered that he had a grenade launcher for sale for $8,000.
A criminal complaint and indictment are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorneys Richard W. Rose and Terrence P. Donnelly.
The matter was investigated by the FBI.
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Princeton Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BLUEFIELD, W.Va.—United States Attorney Mike Stuart announced today that a Princeton man pled guilty in federal court to distribution of cocaine. Stuart commended the work of the Southern Regional Drug and Violent Crime Task Force.
“Cocaine was the rage in the 1980’s. It is coming back with a vengeance and is far more potent than ever before,” said United States Attorney Mike Stuart. “My team is focused on stopping dealers from building the cocaine trade. We don’t want cocaine to become the epidemic it was decades ago.”
Jermaine Jones, 30, admitted that on March 30, 2018, he distributed a quantity of cocaine to a confidential informant near Bluewell in Mercer County. He further admitted that he sold cocaine in Mercer County on four other occasions in March and April of 2018, and that he possessed an additional amount of cocaine on April 4, 2018 at his residence in Princeton. Finally, he admitted that when authorities searched his residence, they found his two pistols. Jones faces up to 20 years in prison when he is sentenced on January 31, 2018.
Assistant United States Attorney John File is handling the prosecution. Senior United States District Judge David A. Faber presided at the plea hearing.
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Previously Deported Jamaican National, with Prior Murder Conviction, Sentenced in Albany on Illegal Drugs, Firearms ChargesRead the Press Release
ALBANY: Charles Peeler, United States Attorney for the Middle District of Georgia, announced Thursday that U.S. District Court Judge Leslie Abrams sentenced Michael O’Neal Walker, also known by the names Kevin Omar Foster, Kevin Nunyi Lewis, Mosiah Omar Wright and Nunyi Jacob Wright, age 41, of Montego Bay, Jamaica, for Possession of Marijuana with Intent to Distribute and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Mr. Walker entered a guilty plea to these charges on July 26, 2018 in federal court in Albany. The Government filed a sentence enhancement in Mr. Walker’s case because of his prior convictions. Judge Abrams sentenced Mr. Walker to 12 months imprisonment for the narcotics charge, and 60 months to be served consecutively in prison on the firearms charge. In addition, Judge Abrams revoked the term of supervised release for Mr. Walker’s 1999 murder conviction and sentenced him to an additional period of 46 months confinement, for a total of 118 months imprisonment. Judge Abrams ordered Mr. Walker to be delivered to immigration authorities for deportation proceedings following the conclusion of his federal prison sentence.
At the time he was discovered in possession of marijuana and firearms, Mr. Walker was subject to a term of supervised release imposed after his 1999 conviction in the United States District Court for the District of Minnesota for Conspiracy to Distribute Marijuana, Cocaine and Cocaine Base and Murder in Relation to a Drug Trafficking Crime. On April 25, 2013, Mr. Walker was deported to Jamaica as a result of the 1999 conviction.
“Albany is a safer community following today’s stiff sentencing of Mr. Walker,” said U.S. Attorney Charles Peeler. “The U.S. Attorney’s Office will continue to use every resource available to make sure career criminals like Mr. Walker are kept off the streets. I want to applaud the collective work of the Albany/Dougherty Drug Unit in the successful apprehension and investigation of Mr. Walker.”
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. “Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said on October 3, 2018. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
The case was investigated by agents of the Albany/Dougherty Drug Unit and was prosecuted by Assistant United States Attorney Leah McEwen.
Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Postal Contractors Charged with Stealing MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Chansen R. Diaz, 30, Cordell L. James, 28, and Michael R. Harris, 31, all of Rochester, NY, were arrested and charged by criminal complaint with conspiracy and theft of mail. The charges carry a maximum penalty of five years in federal prison.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, defendants Diaz and James were employed by a terminal handling services contractor to the United States Postal Service, located at the Rochester Airport. The contractor was responsible for receiving and loading U.S. Mail onto airplanes for further delivery. While on the job, Diaz and James stole mail entrusted to the care of their employer, including numerous gift cards and credit cards. The complaint states that Diaz was observed rifling and opening mail, while James acted as his “look out.” The scheme began in approximately August 2018.
James resided with defendant Harris in Rochester. Records obtained from online retailers showed that Harris ordered multiple items from online accounts in his name, and that those items were delivered to Harris and James at their residence. In addition, video surveillance obtained from local retailers showed Diaz and Harris shopping together and making purchases using stolen gift and credit cards.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson and were released pending further proceedings.
If you believe you have been a victim of mail theft, please contact the U.S. Postal Service. Office of Inspector General (USPS OIG), at www.uspsoig.gov or 888-USPS-OIG.
The criminal complaint is the result of an investigation by the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely, Eastern Area Field Office, Pittsburgh, PA, the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph Cronin, Boston Division, and the New York State Police, under the direction of Major Eric Laughton.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Pilot Flying J’s Former President Hazelwood Sentenced to 12.5 Years, Former Vice President Wombold Sentenced to 6 Years, and Former Customer Account Representative Heather Jones Sentenced to More Than 2.5 YearsRead the Press Release
CHATTANOOGA, Tenn. – On September 26, 2018, the Honorable Curtis L. Collier sentenced Mark Hazelwood to serve 12.5 years in prison and imposed a $750,000 fine. On October 4, 2018, Judge Collier sentenced codefendant Scott Wombold to serve six years in prison and imposed a $75,000 fine, and sentenced codefendant Heather Jones to more than 2.5 years in prison.
Following a multi-month trial, on February 15, 2018, Hazelwood, former president of Pilot Flying J, was convicted of conspiracy to commit mail fraud and wire fraud as charged in count 1 of the indictment, wire fraud as charged in count 8 of the indictment, and witness tampering as charged in count 14 of the indictment. Wombold, a former vice president of Pilot Flying J, was convicted in the same trial of wire fraud as charged in count 2 of the indictment. Jones, a former customer account representative for Pilot Flying J, also was convicted in that trial of conspiracy to commit mail fraud and wire fraud as charged in count 1 of the indictment.
Evidence presented at trial proved a scheme to defraud certain Pilot Flying J trucking company customers through false and fraudulent representations and promises of diesel fuel discounts that were intended to induce victim customers to purchase diesel fuel from Pilot Flying J rather than a competitor. The scheme resulted in victim customers being cheated out of their promised diesel fuel discounts. The evidence at trial showed that the scheme’s goals were to increase Pilot’s market share of diesel fuel sales over its competitors, maximize Pilot’s profits, and maximize the scheme-participants’ potential for profit- and commission-based compensation from trucking companies targeted through the scheme to defraud.
Before trial, 14 other former Pilot Flying J executives and employees had already pleaded guilty to conspiracy charges related to the same scheme to defraud. They are awaiting sentencing. In July 2014, Pilot Flying J entered into a Criminal Enforcement Agreement with the United States in which the company agreed that some of its employees in its Direct Sales group engaged in fraudulent conduct in the payment of diesel fuel discounts for certain targeted Pilot customers. Pilot Flying J agreed that the conduct of those employees resulted in $56 million in loss to affected customers. In accordance with that agreement, Pilot Flying J agreed to pay full restitution to all victim customers in addition to paying a $92 million monetary penalty. Additionally, according to the terms of the Criminal Enforcement Agreement, this federal investigation not only resulted in the payment of full restitution to the scheme’s victims, but also created protection for trucking companies going forward through greater transparency in their future fuel pricing arrangements with Pilot Flying J.
Law enforcement agencies participating in this joint investigation included the FBI and IRS- Criminal Investigation. Assistant U.S. Attorneys F.M. (Trey) Hamilton III and David P. Lewen, Jr. represented the United States.
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Pierre Man Sentenced for Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Failure to Register was sentenced on October 2, 2018, by U.S. District Court Judge Roberto A. Lange.
Daniel Red Horse, Jr., age 48, was sentenced to 24 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Red Horse was indicted by a federal grand jury on May 15, 2018. He pled guilty on July 23, 2018.
Red Horse, who is a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, did knowingly fail to register and update his registration from November 1, 2017, to November 8, 2017. This was Red Horse’s sixth conviction for failing to register as a sex offender.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Red Horse was immediately turned over to the custody of the U.S. Marshals Service.
Pennsylvania Man Pleads Guilty to Biodiesel Tax ConspiracyRead the Press Release
A Harrisburg, Pennsylvania man pleaded guilty yesterday in federal court to one count of conspiring to defraud the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environmental and Natural Resources Division, EPA Criminal Investigation Division Director Jessica Taylor, and U.S. Attorney David J. Freed for the Middle District of Pennsylvania.
According to documents and information provided to the court, David Tielle served as Director Business Development at Keystone Biofuels Inc. (Keystone), located in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Keystone purported to be a producer and seller of biodiesel, a type of renewable fuel. Between 2009 and 2012, Tielle participated in a conspiracy to fraudulently claim tax refunds based on the Biodiesel Mixture Tax Credit – a federal excise tax credit for persons or businesses who mix biodiesel with petroleum and use or sell the mixture as a fuel.
“Fraud committed against the United States Government, making all of us victims, is always disappointing,” said U.S. Attorney David J. Freed. “It is particularly so when the fraud is connected to a program with the laudable aim of encouraging renewable fuel production. The defendant in this case nefariously turned a program meant to benefit our community into a scheme to enrich himself and his partners, at our expense. I commend the tireless work of all of our partners in this case, especially the investigators with IRS-Criminal Investigation and the Environmental Protection Agency Criminal Investigation.”
“A strong enforcement program is essential to maintaining the integrity of the renewable fuel program,” said EPA Special Agent in Charge Jennifer Lynn. “Yesterday's guilty plea should send a clear message that EPA and our law enforcement partners are committed to vigorously pursuing these criminal cases.”
As part of the conspiracy, Tielle caused inflated fuel amounts to be reported to the IRS in order to fraudulently claim tax refunds on fuel Keystone was not producing. To account for the inflated fuel amounts, Tielle created false books and records and engaged in a series of sham financial transactions intended to mirror the false books and records. Tielle also caused Keystone to fraudulently claim tax refunds on fuel that did not meet the quality standards needed to qualify for the Biodiesel Mixture Tax Credit and on fuel Keystone had not mixed with petroleum. The total loss resulting from Tielle’s conduct is approximately $4,149,983.41.
Tielle faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.
The case was investigated by IRS-Criminal Investigation and the EPA Criminal Investigation Division. The prosecution is being handled by Assistant U.S. Attorney Geoffrey MacArthur, Special Assistant U.S. Attorney David Lastra, Trial Attorneys Mark Kotila and Kimberly Ang of the Justice Department’s Tax Division and Senior Litigation Counsel Howard P. Stewart of the Justice Department’s Environmental and Natural Resources Division.
Pennsylvania Man Pleads Guilty to Biodiesel Tax ConspiracyRead the Press Release
HARRISBURG - A Harrisburg, Pennsylvania man pleaded guilty in federal court to one count of conspiring to defraud the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environmental and Natural Resources Division, EPA Criminal Investigation Division Director Jessica Taylor, and U.S. Attorney David J. Freed for the Middle District of Pennsylvania.
According to documents and information provided to the court, David Tielle served as Director Business Development at Keystone Biofuels Inc. (Keystone), located in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Keystone purported to be a producer and seller of biodiesel, a type of renewable fuel. Between 2009 and 2012, Tielle participated in a conspiracy to fraudulently claim tax refunds based on the Biodiesel Mixture Tax Credit – a federal excise tax credit for persons or businesses who mix biodiesel with petroleum and use or sell the mixture as a fuel.
“Fraud committed against the United States Government, making all of us victims, is always disappointing,” said U.S. Attorney David J. Freed. “It is particularly so when the fraud is connected to a program with the laudable aim of encouraging renewable fuel production. The defendant in this case nefariously turned a program meant to benefit our community into a scheme to enrich himself and his partners, at our expense. I commend the tireless work of all of our partners in this case, especially the investigators with IRS-Criminal Investigation and the Environmental Protection Agency Criminal Investigation.”
“A strong enforcement program is essential to maintaining the integrity of the renewable fuel program,” said EPA Special Agent in Charge Jennifer Lynn. “Today’s guilty plea should send a clear message that EPA and our law enforcement partners are committed to vigorously pursuing these criminal cases.”
As part of the conspiracy, Tielle caused inflated fuel amounts to be reported to the IRS in order to fraudulently claim tax refunds on fuel Keystone was not producing. To account for the inflated fuel amounts, Tielle created false books and records and engaged in a series of sham financial transactions intended to mirror the false books and records. Tielle also caused Keystone to fraudulently claim tax refunds on fuel that did not meet the quality standards needed to qualify for the Biodiesel Mixture Tax Credit and on fuel Keystone had not mixed with petroleum. The total loss resulting from Tielle’s conduct is approximately $4,149,983.41.
Tielle faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman, Acting Assistant Attorney General Wood, and U.S. Attorney Freed thanked agents of IRS-Criminal Investigation and the Environmental Protection Agency Criminal Investigation Division, who conducted the investigation, and Assistant U.S. Attorney Geoffrey MacArthur, Special Assistant U.S. Attorney David Lastra, Trial Attorneys Mark Kotila and Kimberly Ang of the Justice Department’s Tax Division and Senior Litigation Counsel Howard P. Stewart of the Justice Department’s Environmental and Natural Resources Division, who prosecuted the case.
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Parkersburg Man Sentenced to Prison for Federal Gun ChargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Anthony Michael Mowery, 42, of Parkersburg, was sentenced today to 63 months in prison for possessing a firearm after having been convicted of a felony. Stuart commended the efforts of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“Between his federal convictions for meth trafficking and possessing a firearm as a convicted felon, Mowery will now serve a total of almost 15 years in federal prison,” said United States Attorney Mike Stuart. “No doubt Parkersburg is a safer city with Mowery behind bars.”
Mowery pled guilty in July 2018, admitting that he possessed a Hi Point 9mm semiautomatic pistol during an argument he had with Joseph Daniel Mills near the little league baseball field in the vicinity of Buckeye Street and Camden Avenue in Parkersburg. Video evidence provided by Mills showed Mowery brandishing a pistol at Mills from the passenger seat of a vehicle. During the altercation, Mowery fled with the driver, abandoning the vehicle at the scene. Police recovered nine millimeter ammunition from the vehicle and a Hi Point pistol and magazine in the field nearby. Mowery was prohibited from possessing the firearm as a result of his previous felony convictions for child abuse and unlawful assault. In an unrelated matter, Mills has since been convicted of methamphetamine trafficking and was sentenced on May 25, 2018 to 108 months in federal prison.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
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.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Operator of Precious Metals Brokerage in New York Found Guilty of Tax EvasionRead the Press Release
A federal jury sitting in Brooklyn, New York, convicted a former Brooklyn resident today of tax evasion and aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented at trial, in 2010 and 2011, Christopher Wolf operated Rothchild & Associates LLC, in Brooklyn, New York. Rothchild was in the business of selling precious metals to investors over the telephone. Wolf earned commissions from Rothchild, but took steps to conceal this income by directing that it be paid to shell corporations he created. Wolf then caused the filing of false individual and corporate income tax returns that underreported his commission income and claimed phony expense deductions. Wolf’s fraudulent conduct resulted in a tax loss of approximately $240,000.
Wolf faces a statutory maximum sentence of five years in prison for tax evasion and three years in prison for aiding and assisting the preparation or presentation of a false tax return. Wolf also faces a three-year period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Green and Mark Kotila of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Officer of North Carolina Mental Health Service Provider Pleads Guilty for Failure to Pay Employment TaxesRead the Press Release
A Raleigh, North Carolina, man pleaded guilty today to one count of willful failure to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina.
According to court documents, from 2010 to 2013, Sainte Deon Robinson failed to pay over federal income, Social Security, and Medicare taxes withheld from the wages paid to employees of his mental health service provider, OneCare Inc. Robinson served in various positions at OneCare Inc., including President, and was obligated to pay over to the IRS such payroll taxes on behalf of the company. Robinson failed to pay over $1.6 million in employment taxes for OneCare Inc. and other companies he controlled.
Robinson's sentencing is scheduled for January 7, 2018, and faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Higdon commended special agents of IRS Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Lauren Castaldi and Michael Boteler, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nine-Time Felon Pleads Guilty to Possessing a FirearmRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to possessing a firearm as a convicted felon.
According to court documents, Earlon Delton Mitchell, 28, was arrested by Norfolk Police for trespassing and having outstanding arrest warrants. Mitchell, who is a self-admitted general of the Nine Trey Blood Set, resisted and attempted to flee. After a two-minute struggle, the officers detained Mitchell and found a loaded semi-automatic handgun tucked into his pant leg. Mitchell was prohibited from possessing a firearm due to a 2007 conviction for which he sentenced to 11 years in prison on nine gang-related felony charges, including malicious wounding by mob, using and discharging a firearm while committing a felony, gang participation, and robbery.
Mitchell faces a maximum penalty of 10 years in prison when sentenced on January 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 U.S. Magistrate Judge Robert J. Krask accepted the plea. Assistant U.S. Attorney William B. Jackson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-118.
Multi-Kilogram Drug Trafficker from Mexico Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – A Mexican national pleaded guilty today to participating in a drug trafficking conspiracy involving the distribution of kilogram-level amounts of controlled substances on behalf of co-conspirators located overseas and throughout the United States.
According to court documents, Gilberto Paz Madrid, 33, traveled to northern Virginia in June 2018 with another citizen of Mexico to distribute controlled substances, including heroin, on behalf of co-conspirators located in Mexico, the Washington, D.C. area, and elsewhere. Following a successful operation, law enforcement agents from Homeland Security Investigations interdicted and seized nearly nine kilograms of heroin.
In June, the Virginia State Police attempted a traffic stop of a sport utility vehicle that Madrid was driving along the Capital Beltway after he and a co-conspirator paid thousands of dollars for what they believed were numerous bricks of illicit narcotics. Madrid accelerated away from a law enforcement vehicle that activated its blue emergency lights. Madrid’s vehicle then collided into several cars and continued to flee from law enforcement until officers successfully contained the threat and arrested both individuals.
Madrid pleaded guilty to conspiracy to distribute one kilogram or more of heroin and attempted possession with intent to distribute one kilogram or more of heroin. He faces a mandatory minimum penalty of 10 years and a maximum penalty of life in prison when sentenced on Jan. 4, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, and the Virginia State Police as part of the Organized Crime Drug Enforcement Task Forces (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. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Washington, D.C., Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorney Raj Parekh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-317.
Middletown Drug Ring Leader Connected to Sinaloa Drug Cartel Pleads Guilty to Drug ChargesRead the Press Release
CINCINNATI – Donte Holdbrook, 24, of Middletown, pleaded guilty in U.S. District Court to his role in a local narcotics conspiracy tied to the Sinaloa Drug Cartel in Mexico.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Cincinnati Police Chief Eliot K. Isaac, Middletown Police Chief Rodney Muterspaw, Preble County Prosecuting Attorney Martin P. Votel and Ohio State Highway Patrol Superintendent Col. Paul A. Pride announced the plea entered into yesterday before U.S. District Judge Timothy S. Black.
Holdbrook was one of 12 individuals charged by a Cincinnati federal grand jury in March in a narcotics and money laundering conspiracy. Members of the group distributed fentanyl from Mexico in Middletown and sent proceeds back to the Sinaloa Drug Cartel in Mexico. A number of others were charged in San Diego, Calif. in a related case.
This investigation began when undercover FBI agents in San Diego learned that a known Sinaloa Cartel money-laundering boss, Jose Lopez-Albarran, coordinated and conducted multiple bulk cash pickups from a drug trafficking organization within the Southern District of Ohio.
Lopez-Albarran was one of 40 defendants charged in the Southern District of California. According to court documents there, he and other members of the Cartel allegedly laundered tens of millions of dollars in narcotics proceeds from the United States to Mexico between 2015 and 2018. Through the investigation in California, law enforcement discovered multiple drug-trafficking cells throughout the United States.
The Middletown, Ohio drug-trafficking cell led by Holdbrook sent drug proceeds back to the Sinaloa Cartel in Mexico via Lopez-Albarran.
Holdbrook was found to be in possession of 366 grams of fentanyl during a traffic stop on December 2, 2017, and in the plea also admitted he arranged for multiple shipments of fentanyl into the Middletown area.
Holdbrook pleaded guilty to the narcotics conspiracy and faces 10 years to life in prison.
U.S. Attorney Glassman commended the investigation of the cases by the FBI – including FBI San Diego Cross Border Violence Task Force, FBI Cincinnati Division and FBI Cleveland Division, Cincinnati and Middletown police departments, Ohio State Highway Patrol and Warren County Drug Task Force, as well as the coordination of Preble County Prosecutor Votel. Glassman also commended Assistant United States Attorney Karl P. Kadon, who is representing the United States in this case.
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Miami Resident Convicted at Trial of Owning and Operating Fraudulent Community Retail PharmacyRead the Press Release
Following a two-week jury trial, on October 1, 2018, Nieves Suarez, 48, of Miami, Florida, was convicted of conspiracy to commit health care fraud and four substantive counts of health care fraud.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
According to evidence presented at trial, Suarez owned and operated a fraudulent community retail pharmacy. Suarez was the president, director, and registered agent of Golden Owl Pharmacy & Discount Corp., located at 1874 SW 57th Ave, Miami, Florida, from January 3, 2011, through November 30, 2012, and secretary from November 30, 2012 through March 10, 2015. From November 2011 through August 2014, the Medicare Part D program reimbursed Golden Owl Pharmacy & Discount Corp approximately $1.6 million. Although Golden Owl Pharmacy & Discount Corp did make some drug purchases, audits revealed shortages totaling $915,784.
Sentencing is scheduled for December 12, 2018, 10:00 a.m., before U.S. District Judge Marcia G. Cooke (Case No. 18-20175-CR). Suarez faces up to twenty years in prison for the conspiracy charge and ten years in prison for each substantive health care fraud count of conviction.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and HHS-OIG in this matter. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Member of Large Lebanon County Drug Trafficking Operation Sentenced to 151 Months’ ImprisonmentRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Millan-Miranda, age 31, of Lebanon, Pennsylvania, was sentenced yesterday to 151 months’ imprisonment and five years’ supervised release by United States District Court Judge John E. Jones, III for various drug trafficking offenses.
According to United States Attorney David J. Freed, Millan-Miranda was convicted on April 11, 2017, along with codefendants Julio Aviles, Sr. age 49, of Lebanon, Pennsylvania, and Israel Nazario, age 62, of Philadelphia, Pennsylvania, all members of a Lebanon County Drug Trafficking Organization, of conspiracy to distribute and possess with intent to distribute one kilogram and more of heroin. The parties stipulated that Millan-Miranda was responsible for at least three but less than 10 kilograms of heroin (which is equivalent to approximately 120,000 to 400,000 individual doses of heroin). Millan-Miranda was also convicted of possession with the intent to distribute heroin and the distribution of heroin. The six-day trial was held in federal court in Harrisburg before United States District Judge John E. Jones, III.
The two-year investigation by the Drug Enforcement Administration and the Lebanon County Drug Task Force culminated with the execution of search warrants at 513 Arnold Street and 443 North 6th Street, in Lebanon, Pennsylvania, on May 14, 2015. During the search at 513 Arnold Street, law enforcement agents discovered a “heroin mill” where kilogram amounts of heroin were being processed on a weekly basis. The evidence at trial revealed that Julio Aviles, Sr., a previously convicted drug dealer, owned and operated the heroin mill and employed a network of sellers, packagers, brokers and testers to conduct this illegal enterprise. Packagers were paid approximately $500 a week like factory workers to process and package the heroin for later distribution. The testers operated as quality assurance inspectors to ensure the heroin was of sufficient quality. At the time of the searches, law enforcement agents found over 400 grams of heroin, over 85 grams of cocaine powder, and over 71 grams of crack cocaine. A kilogram of heroin, which weighs approximately 2.2 pounds is equivalent to approximately 40,000 to 50,000 individual doses of heroin, any one of which can be fatal depending on its purity and the nature of its other ingredients. In this case the evidence established that the drug trafficking organization was mixing the heroin with Fentanyl, morphine, oxycodone and Lidocaine. Law enforcement agents estimated that this drug operation was distributing heroin, crack cocaine, and cocaine for a two-year period and during the last few months was distributing kilogram quantities of heroin, crack cocaine and cocaine powder. The value of the drugs distributed has a conservative street value of between $3 million and $5 million.
Located in the processing room were over 52,000 small Ziploc style bags, 37,000 small glassine bags and over 28,000 rubber bands that are used to package controlled substances. Each rubber band was used to package ten individual bags of heroin, called a bundle.
Law enforcement also located three handguns, ten rifles, six shotguns and paraphernalia consistent with a large-scale drug trafficking operation. During the search at 443 North 6th Street, law enforcement officers located additional quantities of heroin, cocaine powder, and crack cocaine along with drug packaging materials.
Thirteen individuals, all together were charged as part of this operation:
- Julio Aviles, Sr., age 49, sentenced to life imprisonment;
- Isrrael Nazario, age 62, sentenced to 180 months’ imprisonment;
- Julio Aviles, Jr., age 24, sentenced to 28 months’ imprisonment;
- Leandro Nazario, age 30, sentenced to 240 months’ imprisonment;
- Suheidy Soto-Concepcion, age 35, sentenced to 120 months’ imprisonment;
- Eliezer Soto-Concepcion, age 36, sentenced to 144 months’ imprisonment;
- Brenda Soto, age 35, sentenced to 12 months and one day in prison;
- Geidy Arroyo, age 37, time served;
- Brittany Rivera, age 24, sentenced to one year and one day in prison;
- Brent Moyer, age 22, sentenced to 18 months’ imprisonment;
- Carlos Nazario, age 72; pending sentencing; and
- Kengie Millan-Miranda, age 27, remains a fugitive. If you have any information on the whereabouts of Kengie Millan-Miranda, please contact Crime Stoppers at 717-270-9800.
Julio Aviles, Jr., Brittany Rivera, Brent Moyer, Carlos Nazario, Brenda Soto and Geidy Arroyo all pled guilty to conspiracy to distribute and possess with intent to distribute 1,000 grams and more of heroin. On the day of trial, Leandro Nazario, Eliezer Soto-Concepcion and Suheidy Soto-Concepcion all pled guilty to conspiracy to distribute and possess with intent to distribute 1,000 grams and more of heroin, 280 grams and more of cocaine base, or crack cocaine and an unspecified quantity of cocaine hydrochloride or powder cocaine.
The investigation was conducted by the Drug Enforcement Administration, Lebanon County Drug Task Force, Lebanon County Detective Bureau, Lebanon City Police Department, Cornwall Borough Police Department, and assisted by the Lebanon County Probation Department. Assistant United States Attorney Daryl F. Bloom, Chief of the Organized Crime and Drug Enforcement Task Force and Special Assistant United States Attorney Nichole Eisenhart who also serves as the First Assistant District Attorney in Lebanon County, Pennsylvania prosecuted the case.
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McLaughlin Man Sentenced to Sixty Months in Federal Prison for Abusive Sexual Contact of ChildrenRead the Press Release
United States Attorney Ron Parsons announced that U.S. District Judge Charles B. Kornmann sentenced a McLaughlin, South Dakota, man convicted of abusive sexual contact on October 1, 2018.
Silas Ortley, age 36, was sentenced to 5 years in federal prison, followed by 15 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
In July 2017, Ortley engaged in sexual acts with juveniles. At the times of Ortley’s conduct, the victims were twelve and thirteen years of age.
This case was investigated by the Federal Bureau of Investigation, and the Bureau of Indian Affairs – Office of Justice Services. The case was prosecuted by Assistant U.S. Attorney Jeremy R. Jehangiri.
Ortley remained in the custody of the U.S. Marshal’s Service to serve his sentence.
Man Guilty of Attempted Enticement of Minor and Travel with Intent to Engage in Illicit Sexual Conduct with MinorRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Alexander Davis, 32, of Monsey, New York, was found guilty after a jury trial for attempting to entice a minor to engage in sexual activity and for travel with the intent to engage in illicit sexual conduct with a minor. The trial took place in Easton, Pennsylvania before United States District Judge Edward G. Smith.Between December 4 and December 20, 2017, the defendant began communicating online via Craigslist with a person he believed to be a 14-year old female named “Marisa.” In fact, “Marisa” was a Special Agent with the Pennsylvania Attorney General’s Office acting in an undercover capacity. Both in online chats and later in text messages, the undercover agent repeatedly told Davis that she was a 14-year old girl. Davis asked to meet “Marisa” multiple times and peppered their communications with sexual innuendo, including volunteering to bring condoms to their first sexual encounter. Davis traveled to a McDonald’s restaurant in Bethlehem, Pennsylvania, on the agreed-upon date with condoms and was arrested.
“This predator traveled to the Eastern District of Pennsylvania with condoms in his pocket and illegal sex with a minor on his mind,” said U.S. Attorney McSwain. “At trial, he claimed that he was role-playing, thinking that he was actually communicating with an adult, but the jury did not buy that excuse. This sort of depravity has no place in our communities. Thanks to smart detective work and collaboration between state and federal law enforcement agencies, Davis’s plan never came to fruition.”
“Homeland Security Investigations leaves no stone unturned in identifying and arresting perpetrators who seek to prey upon vulnerable children in our communities,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “Thanks to HSI’s partnership with the Pennsylvania Attorney General’s Office and the diligent teamwork of federal, state, and local law enforcement in this case, a potentially dangerous child predator has been convicted and will now be held accountable for his actions.”
The case was investigated by Special Agent Kathryn Murray of Homeland Security Investigations, with assistance from Special Agent Daniel Block of the Pennsylvania Attorney General’s Office, and was prosecuted by Assistant United States Attorney Josh Davison.
Local Lawyer Sentenced for Filing False Tax ReturnsRead the Press Release
COLUMBUS, Ohio – Scott W. Atway, 44, of Powell, was sentenced in U.S. District Court to 12 months and one day in prison, four months of community confinement and eight months of house arrest for filing a false tax return. Atway was also ordered to pay restitution in the amount of $600,000.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, announced the sentence handed down yesterday by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to the statement of facts in this case, for several years, including 2010 through 2013, Atway owned multiple Verizon Wireless stores in Central Ohio aside from being a self-employed attorney who operated his own law practice. In 2013, he also generated income from a real-estate holding company for his rental properties.
Atway provided incomplete or false documents to his tax-return preparer for these years. He further made false statements to her when asked to justify how he paid for his lifestyle.
During this timeframe, Atway was building and improving upon a luxury home in Powell. He paid more than $800,000 to contractors for additions including an enclosed tennis court, basketball court, in-ground pool, six-car garage and an elevator. These expenses could not have been covered by the amount of taxable income Atway reported to the IRS.
He was also buying high-end cars, including a $99,000 Land Rover, a $50,000 Porsche 911, a $24,000 Lexus IS250, a $71,000 BMW X6 and a nearly $143,000 Audi R8. (The purchase prices of some of the cars were partially offset by trade-ins.) For these cars, he either received no financing or paid off the loans early, and the income he reported to the dealerships was much greater than what he reported on his tax returns.
“Instead of paying the taxes that he owed, Atway bought high-end vehicles and built an extravagant home for himself,” U.S. Attorney Glassman said. “Atway stole from all of us—to the tune of over half a million dollars. He deserves the term of incarceration he received.”
“The license to run a business is not a license to avoid paying taxes,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “By filing false tax returns, he cheated all Americans, since we all pay our fair share for the government services and protections that we enjoy.”
U.S. Attorney Glassman commended the cooperative investigation by the IRS Criminal Investigation, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is representing the United States in this case.
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Leader of Valley Street Drug Trafficking Network Sentenced to 70 MonthsRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Chief Judge Shelly D. Dick sentenced ERIC LASHAWN WILLIAMS, a.k.a. “E” and “EZ,” age 35, of Baton Rouge, Louisiana, to 70 months in federal prison to be followed by three years of supervised release.
On July 2, 2018, Williams, pled guilty to one count of conspiracy to distribute and possess with intent to distribute 46.5 grams of heroin, 285 grams of cocaine and 28.35 grams of marijuana, one count of the unlawful use of a communication facility, and one count of possession of a firearm by a convicted felon. WILLIAMS also pled guilty to a Bill of Information charging him with violating the Federal Animal Welfare Act by possession of animals in animal fighting ventures.
WILLIAMS was the organizer and leader of a drug trafficking organization (DTO) responsible for the distribution of cocaine, marijuana and heroin in the Valley Park neighborhood of Baton Rouge.
During the investigation into WILLIAMS’ drug trafficking, law enforcement agents became aware that WILLIAMS was also involved in an illegal dog-fighting operation. Law enforcement intercepted WILLIAMS and others over numerous telephone conversations regarding the results of dogfights in states including Louisiana, Arkansas, and Georgia, future fights, the stakes (cash) wagers on upcoming fights, as well as the breeding, sale, and training of dogs for dogfighting.
On August 24, 2017, law enforcement agents conducted a search at two residences in Baton Rouge and seized 13 pit bull dogs. The dogs belonged to the defendant WILLIAMS and were related to dog-fighting activities.
U.S. Attorney Fremin stated, “The honest, law abiding people in the Valley Park community can sleep well tonight knowing that a convicted felon who possessed firearms and sold deadly drugs in their neighborhood is behind bars. This sentence should serve as a reminder to those who engage in criminal wrongdoing that we will not tolerate such behavior in our community. I am grateful to our prosecutors and staff along with the FBI who worked tirelessly on this very important matter.”
This investigation is another effort by the OCDETF Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations, and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This OCDETF operation is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the FBI Baton Rouge Capitol Area Gang Task Force. This matter is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
Leader of Laurel and Whitley County Methamphetamine Trafficking Organization Sentenced to 17 YearsRead the Press Release
LONDON, Ky. — April Sizemore Bowling, 31, of Corbin, Kentucky, was sentenced Tuesday to 17 years in federal prison, by United States District Judge Robert E. Wier, for conspiring to distribute methamphetamine.
A federal investigation revealed that, for more than a year, Bowling lead a drug trafficking organization that was importing kilogram quantities of methamphetamine into the Eastern District of Kentucky, from a source of supply in Georgia. Bowling worked together with Jeffrey Cole, Jessica Flannery, and Melody LeMar to obtain, transport, and sell that methamphetamine in Laurel, Whitley, and Clay counties. The conspiracy was responsible for bringing in excess of 45 kilograms of methamphetamine from Georgia to Kentucky.
Bowling, Cole, LeMar, and Flannery pled guilty to the charges against them earlier this year. Cole was previously sentenced to 14 years in federal prison, while LeMar and Flannery were each sentenced to 38 months and 33 months, respectively. Under federal law, the defendants must serve 85 percent of their prison sentence; and upon their release, they will be under the supervision of the United States Probation Office.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Michael Christman, Special Agent in Charge of the FBI; Chris Evans, Special Agent in Charge, Drug Enforcement Administration; Derrick House, Chief of the London Police Department; and John Root, Laurel County Sheriff, jointly made the announcement. The United States was represented by Assistant United States Attorney Andrew H. Trimble.
Las Cruces Felon Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Edward Hartley, 37, of Las Cruces, N.M., pled guilty today in federal court to violating the federal firearms laws by being a felon in possession of firearms and ammunition.
Hartley was arrested on June 27, 2018, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on June 8, 2018, in Dona Ana County, N.M. According to the complaint, Las Cruces Police Department (LCPD) officers responded to a weapons call at a residence in Las Cruces that an individual allegedly pointed a gun at a female and a child. When the LCPD officers arrived at the scene, they observed Hartley walking down the street, and after seeing the LCPD officers, Hartley attempted to flee the area and was seen throwing a firearm into the front yard of a residence. Officers subsequently located a handgun magazine loaded with ammunition and a loaded firearm in front yards near the area where Hartley was running.
According to the criminal complaint, Hartley, who was then under state indictment for being a felon in possession of a firearm or destructive device, had multiple prior felony convictions including convictions for second degree murder, drug trafficking, conspiracy to commit drug trafficking, possession of a firearm or destructive device by a felon, and possession of drug paraphernalia. He was prohibited from possessing firearms or ammunition because of his prior felony convictions.
During today’s change of plea hearing, Hartley pled guilty to a felony information charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Hartley admitted that on June 8, 2018, he fled from LCPD officers, and during his flight, discarded a firearm. Hartley acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Hartley faces a maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Cruces Police Department. Assistant U.S. Attorney Luis A. Martinez is prosecuting the case.
Kyle Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Raymond Bull Bear, age 35, was sentenced on October 2, 2018, to 18 months in federal prison, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bull Bear was indicted for the charge by a federal grand jury on December 15, 2015. The charge related to Bull Bear conspiring with others to distribute more than 80 kilograms of marijuana in the District of South Dakota between 2012 and 2015.
This case was investigated by the South Dakota Division of Criminal Investigation, Bureau of Indian Affairs - Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Bull Bear was immediately turned over to the custody of the U.S. Marshals Service.
Jury Finds District Man Guilty of First-Degree Murder in Killing of Man in Navy Yard Area of Southeast WashingtonRead the Press Release
WASHINGTON –Babajide Pittman, 33, of Washington, D.C., has been found guilty by a jury of first-degree murder while armed and other charges in a mid-day shooting that took place on a Southeast Washington corner on Thanksgiving weekend of 2016, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Pittman also was found guilty of assault with intent to kill while armed and related firearms offenses. The verdict was returned on Oct. 3, 2018, following a trial in the Superior Court of the District of Columbia. The Honorable Danya A. Dayson scheduled sentencing for Dec. 13, 2018. Pittman faces a maximum sentence of life in prison for the crimes.
According to the government’s evidence, on Nov. 27, 2016, at approximately 1 p.m., Pittman was standing on the corner of 7th and L Streets SE, outside the U.S. Marine Corps Barracks Annex. The homicide victim, Anthony Young, Jr., was the passenger in a car being driven by his girlfriend. They were headed to a friend’s house nearby. Pittman and Mr. Young knew each other, and had been in a prior argument. Mr. Young got out of the car and argued on the sidewalk with Pittman for about two minutes.
When Mr. Young opened the passenger door of the car to leave, Pittman ran up behind him and fired 12 shots into the car. Mr. Young was struck eight times, in the back, arm, and legs, and his girlfriend was struck once in the leg.
Mr. Young, 27, died within minutes of being shot. His girlfriend was transported to Howard University Hospital, where she was treated for the gunshot wound. She sustained permanent nerve damage in her foot.
Pittman fled the area on foot. He was arrested early the following morning, and has been held in custody since.
Personnel from the U.S. Marine Corps assisted the victims and the responding police officers from the Metropolitan Police Department and U.S. Capitol Police.
A homeowner who lived down the street from the shooting had a Nest surveillance system, with audio and high-definition video, that captured the shooting. This video was instrumental in investigating and prosecuting the case. This prosecution reflects the value of the District of Columbia’s Private Security Camera Incentive Program, which encourages residents to install security cameras to assist law enforcement.
In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the U.S. Capitol Police, the Metro Transit Police Department, the U.S. Marshals Service, the Capital Area Regional Fugitive Task Force, and the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked on the case form the U.S. Attorney’s Office, including Assistant U.S. Attorney John Mannarino, Paralegal Specialist Sharon Newman, Lead Paralegal Specialist Meridith McGarrity, Victim/Witness Advocate Diana Lim, Supervisory Victim/Witness Advocate Jennifer Clark, Litigation Technology Specialist Leif Hickling, Victim/Witness Services Coordinator Katina Adams-Washington, and intern Cara Clark.
Finally, they commended the work of Assistant U.S. Attorneys Jeffrey Nestler and Seth Gilmore, who investigated and prosecuted the case.
Jury Convicts Arizona Man of Drug Trafficking and Money Laundering ConspiraciesRead the Press Release
SYRACUSE, NEW YORK – Alonzo Harris, age 43, of Youngtown, Arizona, was convicted today of drug trafficking and money laundering charges following a four-day jury trial, announced United States Attorney Grant C. Jaquith, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division, U.S. Postal Inspector in Charge Joseph Cronin, and New York State Police Superintendent George P. Beach II.
The evidence at trial proved that Harris used the U.S. Postal Service to mail more than 50 multi-pound packages of methamphetamine from the Phoenix, Arizona, area to Broome County New York, where members of his drug trafficking organization distributed it to local dealers and users. The trial evidence also established that Harris, along with his co-conspirators, generated hundreds of thousands of dollars in proceeds from the sale of methamphetamine.
The conviction in this case was the result of a multi-agency investigation, Operation Hailstorm, which resulted in charges against 10 individuals involved in the illegal methamphetamine trafficking activity. The other nine defendants all previously pled guilty.
Sentencing for Harris is scheduled for February 6, 2019 in Syracuse before Chief United States District Judge Glenn T. Suddaby. At sentencing, Harris faces a mandatory term of 10 years and up to life in prison.
This case was investigated by the Drug Enforcement Agency (DEA), the United States Postal Inspection Service, the New York State Police, the Broome County Special Investigations Unit Task Force, and the Vestal Police Department, and was prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Michael Gadarian.
Joint Press Conference AnnouncementRead the Press Release
- WHO: U.S. Attorneys from the Northern, Middle, and Southern Districts of Alabama, along with representatives from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the U.S. Marshals Service, the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Alabama Attorney General’s Office, the Alabama Law Enforcement Agency, the Montgomery Police Department, the Montgomery District Attorney’s Office, and the Montgomery County Sheriff’s Office.
- WHAT: Joint press conference to announce the statewide progress of Project Safe Neighborhoods (PSN) one year after the revitalization of the violent crime reduction program.
- WHEN: Friday, October 5, 2018 at 10:30am. (CDT)
- WHERE: U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama 36104
- NOTE: All media members must have credentials and a government issued photo ID. An RSVP is requested. Please arrive at least 15 minutes before the scheduled conference start time. A press release and interview opportunities will be available at the end of the press conference.
- WHO: U.S. Attorneys from the Northern, Middle, and Southern Districts of Alabama, along with representatives from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the U.S. Marshals Service, the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Alabama Attorney General’s Office, the Alabama Law Enforcement Agency, the Montgomery Police Department, the Montgomery District Attorney’s Office, and the Montgomery County Sheriff’s Office.
Jamaican National Sentenced for Drug Trafficking and BriberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Damion Christopher Alexander Brown, 43, a Jamaican national residing in Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute 100 kilograms or more of marijuana, and bribery of a public official, was sentenced to 60 months in prison by Senior U.S. District Judge William M. Skretny.
Special Assistant U.S. Attorney Jeremy Murray and Assistant U.S. Attorneys Paul Bonanno and Wei Xiang, who handled the case, stated that over a nine-month period between 2012 and 2013, Brown trafficked 100 kilograms or more of marijuana and bribed a United States Postal Service (USPS) carrier to deliver U.S. priority mail parcels filled with marijuana. The defendant paid the postal carrier to provide addresses of unsuspecting citizens, who lived along the carrier’s route in Buffalo, to which parcels filled with marijuana could be mailed. When the boxes arrived in Buffalo, the postal carrier did not deliver them to the listed recipient address, but instead, held on to the boxes and handed them directly to Brown in exchange for cash payments.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge, Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin, Boston Division; the United States Postal Service, Office of the Inspector General, under the direction of Special Agent-in-Charge Kenneth G. Cleevely; and the Amherst Police Department, under the direction of Chief John Askey.
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Inmate, Girlfriend Sentenced to Federal Prison for Attempting to Smuggle Drugs into Mat-Su PretrialRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that two Alaska residents have been sentenced to federal prison for attempting to smuggle drugs into the State of Alaska Department of Corrections (DOC) Mat-Su Pretrial Correctional Facility (Mat-Su Pretrial) in Palmer.
Joshua Jacob Reed, 31, an inmate at Mat-Su Pretrial at the time of the offense, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to serve 33 months in federal prison, followed by three years of supervised release, for attempting to possess contraband in prison. Reed’s federal prison sentence is to be served consecutively to the state sentence he is currently serving for trying to smuggle drugs into another DOC facility in 2016. Reed is a four-time felon, and has 14 prior convictions in all.
Reed’s then-girlfriend and co-defendant Olivia Danielle Blake, 27, of Wasilla, was sentenced by Chief Judge Burgess on Sept. 24, 2018, to serve five months in prison, followed by three years of supervised release, for distribution of a controlled substance. Blake had no criminal history prior to this offense.
According to court documents, on Feb. 28, 2017, Blake attempted to pass drugs to Reed, who was an inmate at Mat-Su Pretrial at the time. Blake did so at Reed’s direction on the morning that Reed was to stand trial in State of Alaska v. Reed, 3PA-16-824CR, for attempting to smuggle drugs into DOC’s Goose Creek Correctional Center when he was incarcerated there in January 2016. Trial in that case was set to begin the morning of Feb. 28, 2017. The day before, Reed spoke with Blake and directed her to buy him clothes to wear in court during his trial. In coded language, Reed told Blake to hide drugs inside the shoes she brought him, and to deliver the items to Mat-Su Pretrial the following morning.
On the morning of Feb. 28, 2017, Blake arrived at Mat-Su Pretrial and dropped off a bag for Reed, which contained a pair of shoes, clothes, and a Walmart receipt showing the items purchased at 4:30 a.m. that morning. When Mat-Su Pretrial personnel searched the bag before passing it to Reed, they detected the odor of glue in the shoes and subsequently discovered the drugs. In all, DOC personnel found and seized the following hidden beneath the left shoe’s insole: (1) 2.6 grams of methamphetamine, (2) 0.41 grams of heroin, and (3) a quantity of Buprenorphine, which is one of the narcotic drugs in Suboxone.
In imposing sentence as to Reed, Chief Judge Burgess recognized how “very dangerous” the presence of drugs in our prison system is and the seriousness of the offenses committed by Reed and Blake.
The Federal Bureau of Investigation (FBI) conducted the investigation, with assistance from DOC and the Alaska State Troopers (AST), leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Andrea W. Hattan.
Indictment Unsealed Following Arrests for International Lottery Fraud Scheme That Preyed on Elderly in California and ElsewhereRead the Press Release
SACRAMENTO, Calif. — An indictment was unsealed following the arrests today of two defendants in Medellin, Colombia, for a lottery fraud scheme, U.S. Attorney McGregor W. Scott announced.
On August 23, 2018, a federal grand jury returned a 41-count indictment against Alexander Franco Gutierrez, 40, of Medellin, Colombia; Eduardo Cartagena, 43, of Medellin, Colombia; and Oldaim Lopes, 39, of Calgary, Canada, charging them with conspiracy to commit mail and wire fraud, mail and wire fraud, and conspiracy to commit money laundering related to a fake sweepstake scheme that targeted victims over the age of 55. Gutierrez and Cartagena were arrested in Colombia. Lopes remains out of custody in Canada and is being informed of the charges.
According to court documents, Gutierrez and his co-conspirators contacted elderly individuals in the Eastern District of California and elsewhere telling them that they had won a lottery or sweepstakes in the millions of dollars, but had to prepay taxes or insurance fees prior to getting their prize. The conspirators used various means to convince the victims of the lottery or sweepstakes’ authenticity and to avoid detection, including using false aliases, having one victim mail another checks disguised as “investments,” and instructing victims to lie to bank tellers and family members about what purpose the checks or money orders served. In all, dozens of victims over the age of 55 were targeted in the telemarketing scheme, which caused actual losses of at least $1.4 million.
Lopes and Cartagena then conspired with Gutierrez to move the resulting money out of the United States and conceal its nature and source.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation. Significant assistance was provided by the Justice Department’s Office of International Affairs. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
If convicted, Gutierrez faces a maximum statutory penalty of 30 years in prison and a $250,000 fine for each of the mail and wire fraud counts as well as the conspiracy to commit mail and wire fraud. All three defendants face a maximum of 20 years of in prison and a fine of up to $500,000, or twice the value of the monetary instrument or funds involved, whichever is greater, for the conspiracy to commit money laundering. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The U.S. Department of Justice has partnered with Senior Corps, a national service program administered by the Corporation for National and Community Service, a federal agency, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans. Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them.
Hermosa Man Sentenced for Fraud and Identity TheftRead the Press Release
United States Attorney Ron Parsons announced that a Hermosa, South Dakota, man convicted of Access Device Fraud and Aggravated Identity Theft was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Tobin Nettifee, age 40, was sentenced on October 2, 2018, to 3 years and 9 months in federal prison, to be followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund and $19,159.57 in restitution.
Nettifee was charged on March 20, 2018. The charges related to Nettifee using another person’s identity to obtain three credit cards and using those credit cards for various purchases, totaling more than $19,000. Additionally, Nettifee stole a gift card from a mailbox and used that card to make a purchase.
This case was investigated by the United States Postal Service. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Nettifee was immediately turned over to the custody of the U.S. Marshals Service.
Harrison County residents indicted on drug distribution and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Philip K. Finley and Nicoma L. Knight, both of Clarksburg, West Virginia, were indicted this week by a federal grand jury sitting in Wheeling on drug distribution and firearms charges, United States Attorney Bill Powell announced.
Finley, age 51, is charged with one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine,” one count of “Distribution of Methamphetamine – Aiding and Abetting,” four counts of “Distribution of Methamphetamine,” two counts of “Possession With the Intent to Distribute Methamphetamine,” one count of “Possession With the Intent to Distribute Heroin,” one count of “Possession of Firearm in Furtherance of Drug Trafficking Crime,” and one count of “Unlawful Possession of a Firearm.”
Knight, age 23, is charged with one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.”
Finley and Knight are accused of distributing methamphetamine in Harrison County from March until September 2018.
Finley and Knight face 10 years to life incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The government is also seeking forfeiture of the following:
• $173,442 in cash; • Smith & Wesson 5-shot revolver, model 60, .38 Special caliber; • Taurus International MFG., INC. 5-shot revolver, model 650, .357 Magnum caliber; • Beemiller, INC. semi-automatic pistol, model CF380, .380 ACP caliber; • Savage Arms, INC. bolt-action rifle, model 93R17, .17 HMR caliber; • Savage Arms, INC. bolt-action shotgun (“Stevens”), model 59A, .410 gauge; • Stevens, J., Arms Company pump-action shotgun, model 620, 12-gauge; • Union Firearms Company pump-action shotgun, model 24, 12-gauge; • Harrington & Richardson, INC. break-open action shotgun, model 158, 12-gauge; • Crescent Firearms Company break-open action shotgun (“Sears, Roebuck and Company”) model: Unknown, 16-gauge; • Winchester break-open action shotgun, model 840, 12-gauge; • Stevens, J., Arms Company break-open action shotgun (“Off-Hand”), model NO. 35, 12-gauge; • Sturm, Ruger & Co. semi-automatic rifle, model Mini-Thirty, 7.62x39 caliber, with high capacity magazine; • Cobray Industries single-shot pistol, model D, .45 caliber; • Colt’s Manufacturing Company, LLC semi-automatic pistol, model Colt Automatic, .25 caliber; • Taurus International MFG., INC. 6-shot revolver, model 669, .357 Magnum caliber; • Lorcin Engineering Co., INC. semi-automatic pistol, model L-22, .22 caliber; • Beretta semi-automatic pistol, model Px4 Storm, .40 S&W caliber; • Nine (9) assorted .40 caliber pistol cartridges; • Five (5) CBC –Brazilian Cartridge Company pistol cartridges; • Nine (9) .357 caliber pistol cartridges; • Five (5) Aguila .380 pistol cartridges
• Four (4) assorted .25 caliber pistol cartridges; and
• One-Hundred Sixty (160) assorted multi-caliber pieces of ammunition.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 Traci M. Cook is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.An indictment is merely an accusation. A defendant is presumed innocent unless and until prove
Guatemalan National Man Pleads Guilty to Immigration CrimeRead the Press Release
Defendant had a prior deportation in 2012
CHARLESTON, W.Va. – A Guatemalan national man entered a guilty plea to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Domingo Celestino Pacheco-Us, 37, faces up to two years of incarceration when he is sentenced on February 19, 2019. Pacheco-Us is also subject to deportation proceedings at the conclusion of any sentence. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE).
“I applaud ICE agents for ensuring our immigration laws are followed by individuals entering the United States,” said United States Attorney Mike Stuart. “ICE is a critically important enforcement tool for the United States. We have been and will continue to prosecute those that violate those laws and enter this great country illegally.”
On August 15, 2018, Pacheco-Us was found in Ripley, Jackson County, West Virginia by members of ICE after receiving a tip that individuals were in the country illegally and working at a restaurant in Ripley, West Virginia. Pursuant to this investigation, ICE agents approached Pacheco-Us and he surrendered to them, offering a Guatemalan identification document. Agents immediately confirmed that Pacheco-Us was not in the United States legally, and took him into federal custody.
Pacheco-Us fingerprints matched him to a 2012 prior encounter where he was found in South Komelik, Arizona on October 8, 2012 and deported from the United States to Guatemala on October 31, 2012. He illegally reentered the United States prior to his capture in 2018. Pacheco-Us had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Pacheco-Us admitted to ICE agents that he was a Guatemalan citizen and subject to deportation proceedings both in 2012 and also in 2018.
Assistant United States Attorney Erik S. Goes is responsible for the prosecution. United States District Judge Irene C. Berger presided over the hearing.
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Greensburg Doctor Charged with Illegally Distributing Controlled Substances and Health Care FraudRead the Press Release
PITTSBURGH, PA - A family practice physician has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully dispensing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
The 54-count indictment, returned on October 2, 2018 and unsealed today, named Milad Shaker, 49, of Greensburg, PA, as the sole defendant.
According to indictment, from 2014 to 2017, Shaker, a licensed physician, unlawfully distributed controlled substances, including Vicodin, Percocet, Tramadol and others, in return for sexual favors provided to him either physically or by electronic communication, such as text messaging. Shaker is also charged with health care fraud for causing fraudulent claims to be submitted to Highmark Health Plan and Aetna Health Plan for payments to cover the costs of the unlawfully prescribed controlled substances.
The law provides for a maximum per count sentence of 20 years in prison, a fine of $1,000,000, or both, for counts 1-36 and a maximum per count sentence of five years in prison and a fine of $250,000 for counts 37-52. Shaker faces an additional maximum term of imprisonment of 10 years and a fine of $250,000 for the health care fraud charges at counts 53 and 54. 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 Robert S. Cessar is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Great Falls woman sentenced for methamphetamine distributionRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that 63-year old Jewell Kipp of Great Falls was sentenced to 94 months in prison, 5 years of supervised release, and a $100 special assessment. U.S. District Judge Brian M. Morris presided over the hearing.
Beginning in the fall of 2017, and continuing into early 2018, Kipp distributed large quantities of methamphetamine in Great Falls, Montana. The Russell Country Drug Task Force ultimately seized approximately 220 grams of actual methamphetamine from Kipp over the course of five months. The defendant was held responsible for distributing this amount of methamphetamine, which converts to 1,760 individual doses of the drug.
Through this investigation, law enforcement further learned the defendant had numerous customers throughout Great Falls, and she had access to pound quantities of methamphetamine. Kipp also has numerous prior felony convictions for methamphetamine.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Russell Country Drug Task Force and Homeland Security Investigations.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Four Louisiana Businessmen Charged with Conspiracy and Bribery of Former Mississippi Corrections Commissioner and Kemper County SheriffRead the Press Release
Jackson, Miss. – Four Louisiana businessmen have been indicted and arrested for conspiracy, paying bribes, and attempting to pay bribes to former Mississippi Department of Corrections Commissioner Christopher B. Epps and current Kemper County Sheriff James Moore in exchange for receiving contracts involving the MDOC and a regional detention facility located in Kemper County, announced U.S. Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
A three-count indictment returned by a federal grand jury on September 19, 2018, charges the four businessmen with conspiracy to defraud the United States, and bribery concerning programs receiving federal funds. They are identified as:
• Michael LeBlanc Sr., 70, of Baton Rouge, La.
• Michael LeBlanc Jr., 40, of Prairieville, La.
• Tawasky L. Ventroy, 59, of Opelousas, La.
• Jacque B. Jackson, 50, of Laplace, La.
Between 2012 and 2015, the four are alleged to have conspired to pay bribes to former MDOC Commissioner Epps and Kemper County Sheriff Moore. Sheriff Moore voluntarily assisted the FBI and the U.S. Attorney’s Office, and was never a subject of this investigation.
"As long as public corruption continues to be an issue in our state, I can promise you that the U.S. Attorney’s Office will be here to root it out, prosecute it, and ensure that justice is done. I want to personally thank Kemper County Sheriff James Moore for coming forward and working with us to catch those who violate our corruption laws," said U.S. Attorney Hurst.
According to the indictment, LeBlanc Sr., LeBlanc Jr., Ventroy and Jackson were associated with Brothers Commissary Services and American Phone Systems, both located in Louisiana but operating in the state of Mississippi.
The indictment states that LeBlanc Sr. allegedly used corrupt means in an attempt to secure lucrative jail and detention facility contracts for commissary and other services throughout Mississippi. Ventroy worked for LeBlanc Sr. to help secure the contracts.
According to the indictment, on or about October 20, 2014, LeBlanc Sr. called Epps to confirm Ventroy would be meeting with Epps. On or about October 21, 2014, Ventroy brought a $2,000 cash bribe or gratuity to former Commissioner Epps. LeBlanc Sr. and Ventroy also agreed to give something of value of $5,000 or more with the intent to influence Epps for awarding and retention of the contracts for LeBlanc Sr.’s company for inmate commissary services.
The indictment alleges that LeBlanc Jr. used corrupt means in an attempt to secure lucrative jail contracts for commissary and inmate telephone services with the Kemper County Regional Correctional Facility and elsewhere. Jackson worked for LeBlanc Jr. to help secure the contracts.
According to the indictment, on or about December 8, 2014, LeBlanc Jr. obtained $2,000 in casino chips at a Biloxi, Mississippi, casino. LeBlanc Jr. provided a minimum of four $500 chips to Jackson. Jackson gave Sheriff Moore a total of $2,000 in casino chips in the men’s restroom of the casino because the inside of the restroom was not covered by casino surveillance cameras. LeBlanc Jr. and Jackson also agreed to give something of value of $5,000 or more with the intent to influence Moore for awarding and retention of the contracts for LeBlanc Jr.’s company for inmate telephone and commissary services at the Kemper County Regional Correctional Facility.
LeBlanc Sr., LeBlanc Jr., Ventroy and Jackson are appearing today before United States Magistrate Judges in the Louisiana districts where they were arrested. Each will appear for their arraignment before U.S. Magistrate Judge Linda R. Anderson in Jackson, Mississippi, on October 16, 2018, at 1:30 p.m.
LeBlanc Sr. and Ventroy are charged in Counts 1 and 2, which carry a maximum sentence of imprisonment of 5 years and 10 years each, respectively. LeBlanc Jr. and Jackson are charged in Counts 1 and 3, which also carries a maximum sentence of imprisonment of 5 years and 10 years each, respectively. Each count carries a fine of up to $250,000 and up to three years of supervised release.
U.S. Attorney Hurst commended the work of the special agents with the FBI’s Jackson Division who investigated the case, along with assistance from Kemper County Sheriff James Moore. The FBI New Orleans Division assisted with the arrests. The case is being prosecuted by Assistant United States Attorneys Jay Golden and Kathlyn Van Buskirk.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Fort Myers Durable Medical Equipment Providers Sentenced to Prison for Payment of Illegal KickbacksRead the Press Release
Fort Myers, FL – U.S. District Court Judge John E. Steele has sentenced Ryan Williamson (50, Fort Myers) and William Pierce (50, Virginia) to one year in prison, and nine months’ imprisonment, respectively, for conspiring to pay unlawful kickbacks to a local doctor for referring patients to A&G Spinal Solutions, LLC (“A&G Spinal”) – the defendants’ durable medical equipment company. As part of their sentences, the Court also entered money judgments against Williamson in the amount of $1,593,564.54, and against Pierce in the amount of $803,007.25, the proceeds of the conspiracy. Both men had previously pleaded guilty.
According to the plea agreements, beginning in 2010, Williamson and Pierce conspired with Dr. Michael Frey, an interventional pain management doctor operating in Fort Myers, to pay compensation to Frey in exchange for referrals to their company (A&G Spinal). A&G Spinal then paid a percentage of the resulting profits via checks (made payable to Frey’s wife), who was unaware of the scheme and was not associated with A&G Spinal. In addition, from 2013 to 2015, Williamson also paid kickbacks to Frey in exchange for patient referrals for compound pharmaceutical pain cream prescriptions.
Frey has pleaded guilty for his role in both schemes and is currently awaiting sentencing.
This case is being prosecuted by Assistant United States Attorneys Rachel Jones and Simon Eth, with the assistance from the Defense Criminal Investigative Service, the Department of Health and Human Services – Office of Inspector General and the U.S. Postal Service – Office of Inspector General.
Today’s resolution illustrates the government’s commitment to combating improper practices that implicate the nation’s federally subsidized health care programs, using all statutory and common law remedies available to address such schemes. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Fort Knox Soldier Pleads Guilty to Production of Child Porn by Parent, Transportation and Possession of Child PornRead the Press Release
LOUISVILLE, Ky. – A Fort Knox, Kentucky soldier pleaded guilty today before United States District Judge Rebecca Grady Jennings, to five counts of production of child pornography by a parent, 10 counts of transportation of child pornography, and one count of possession of child pornography, announced United States Attorney Russell M. Coleman.
Andrew Paul Schmidt, 40, was arrested on a federal criminal complaint on December 4, 2017. A federal grand jury indicted Schmidt on six counts on December 20, 2017, and returned a superseding indictment with additional charges on March 21, 2018.
According to the criminal complaint, on December 4, 2017, Schmidt utilized KiK messenger to communicate with an individual online, which unbeknownst to Schmidt, was an undercover Federal Bureau of Investigation (FBI) special agent. During the course of the online conversation, Schmidt sent the undercover agent images of his five-year-old daughter.
Schmidt faces a mandatory minimum sentence of 15 years in prison and could be sentenced up to 370 years in prison. Further, Schmidt faces a minimum term of 5 years supervised release up to a maximum term of supervised release for life, and a $4 million fine. Sentencing is scheduled for January 17, 2019, at 10 AM in Louisville before Judge Jennings.
Assistant United States Attorney Joshua Judd and United States Army Captain Greta L. Mattessich, Special Assistant United States Attorney, are prosecuting the case. The Federal Bureau of Investigation conducted the investigation.
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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.
Former State Criminal Investigator Charged with ExtortionRead the Press Release
Jackson, Miss. – Frank Saddler, 52, of Ridgeland, was charged by Criminal Information with one count of Extortion Under Color of Official Right, relating to his former job with the Mississippi Department of Human Services investigating fraud related to the Supplemental Nutrition Assistance Program, announced U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and Dax Roberson, Special Agent in Charge, Office of Inspector General, United States Department of Agriculture.
"There is almost nothing more corrosive to our democratic form of government than one who abuses his position of authority and public trust. Prosecuting public corruption is a priority of this U.S. Attorney’s Office, and those who abuse their power should be on notice that they will be held to account by this Justice Department," said U.S. Attorney Hurst.
As set forth in the Criminal Information, Saddler was a Branch Director with the Mississippi Department of Human Services ("MDHS"), which has oversight of the Supplemental Nutrition Assistance Program ("SNAP") of the United States Department of Agriculture in Mississippi. Saddler’s duties included investigating violations of the SNAP regulations and pursuing criminal charges against violators.
As charged in the Criminal Information, from July 23, 2014 through June 12, 2015, Saddler extorted money from the owners of convenience stores who violated SNAP regulations and who had been charged with criminal violations relating to SNAP.
A violation of 18 U.S.C. § 1951(a), as charged in the Criminal Information, carries a maximum possible penalty of 20 years in prison, a fine of up to $250,000, and supervised release of up to three years. Restitution is mandatory by law. The Criminal Information also seeks forfeiture of all proceeds of the extortion.
The public is reminded that a Criminal Information merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by the FBI and the Office of the Inspector General of the United States Department of Agriculture. It is being prosecuted by Assistant United States Attorney Dave Fulcher.
Final Defendant Sentenced to Prison in All About Giving FraudRead the Press Release
NASHVILLE, Tenn. – October 4, 2018 – Tammy Young, 49, of Knoxville, Tennessee, was sentenced yesterday in U.S. District Court to 15 months in federal prison for her role in defrauding the government of more than $2 million, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Young is the final defendant to be sentenced in the conspiracy, which resulted in charges against eight other individuals. U.S. District Judge Aleta A. Trauger also ordered $550,001 in forfeiture and restitution.
According to court documents, All About Giving, Inc. was formed by LaShane Hayes and incorporated as a non-profit agency in September 2014. The entity was registered as a sponsor agency in the United States Department of Agriculture’s Child and Adult Care Feeding Program (CACFP), which is administered by the Tennessee Department of Human Services (TDHS). The CACFP was created to reimburse child care providers for meals served to low-income children and other qualifying individuals.
Between January 2015 and July 2016, Tammy Young used her residence as the Knoxville office for All About Giving, Inc. and enrolled other individuals as providers for the purpose of submitting fraudulent reimbursement claims to TDHS, representing that the funds had been used to provide meals for eligible CACFP participants. Young pleaded guilty to conspiracy to commit wire fraud and admitted that she registered individuals as providers, knowing that they were not providing child care and overstated the number of providers who actually furnished meals to children and inflated the number of children who actually received meals. During the course of this conspiracy, Young personally received checks totaling more than $54,000.
The other eight defendants charged in this case previously pleaded guilty and have been sentenced by the court.
The case was investigated by the USDA Office of Inspector General and the Tennessee Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Henry Leventis and Sara Beth Myers.