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1 October 2018
DOJ Targets more than $5.6 Million to Address Opioid Addiction in Washington StateRead the Press Release
The Department of Justice is awarding more than $5.6 million to agencies in the State of Washington to address the opioid epidemic through increased treatment, prescription monitoring, emergency services and drug courts, announced U.S. Attorney Annette L. Hayes. The two largest grants – a total of $1.7 million will fund efforts by the state Department of Health to link prescription monitoring data with various public health databases to help medical professionals and others make data-informed decisions on treatment and prevention of prescription drug abuse.
“From large cities to rural areas and tribal communities, the Department of Justice is dedicating resources to support local efforts to combat opioid abuse,” said U.S. Attorney Annette L. Hayes. “These funds support a range of services including drug treatment, prescription monitoring, overdose mitigation and housing support which in turn will reduce demand for opioids and the terrible damage from addiction.”
The Seattle Police Department in partnership with the Department of Corrections is receiving a $900,000 grant to provide treatment services to those in custody or re-entering society after prison. Services include counseling and stable housing to prevent a return to prison. With a $498,180 grant, the North Mason Regional Fire Authority in Belfair, Washington will partner with Peninsula Community Health Services to establish a Quick Response Team. The team composed of first responders and law enforcement works to reduce opioid abuse and overdose fatalities. The Makah Indian Tribe received a $458,285 grant to establish a team approach to provide services as an alternative path to cycling in and out of the judicial system. Finally, the Puyallup Tribe will receive $875,048 to provide community reentry services such as treatment and vouchers for housing, and transportation for those reentering the community from prison or from inpatient treatment.
Two drug courts received funding. The City of Lakewood received $550,000 for a drug court focused on the needs of veterans. Clark County received a $399,074 grant for its juvenile drug court program focusing on youth with substance abuse disorder.
The Washington State Patrol received a $250,000 grant for its crime lab program designed to reduce the backlog of cases waiting for toxicology and forensic testing. Laboratories have been overwhelmed with drug seizure testing requests as well as analysis related to opiate related deaths.
The Comprehensive Addiction and Recovery Act (CARA) Program is the first major federal substance use disorder treatment and recovery legislation in 40 years and the most comprehensive effort to address the opioid epidemic. CARA establishes a comprehensive, coordinated, and balanced strategy through enhanced grant programs that expand prevention and education efforts while also promoting treatment and recovery. The Comprehensive Opioid Abuse Site-based program was developed as part of the CARA legislation signed into law on July 22, 2016.
Connecticut Man Sentenced to 96 Months for Robbing Dollar Tree StoresRead the Press Release
ALBANY, NEW YORK – David Daniel Hunter, 54, of Enfield, Connecticut, was sentenced today to 96 months in prison for robbing two Dollar Tree stores—one in the Town of North Greenbush, New York, and the other in Coeur d’Alene, Idaho—in May 2017.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Fredrick J. Scullin, Jr. also imposed a 3-year term of supervised release, which will begin after Hunter’s release from prison, and ordered Hunter to pay $25,450.61 in restitution and to forfeit $1,200.
In pleading guilty, Hunter admitted to stealing a 2017 Dodge Charger in Connecticut on May 5, 2017 and driving it to New York to commit robberies. On May 6, 2017, Hunter entered the Dollar Tree store in North Greenbush, New York, brandishing what appeared to be a handgun, and demanded money. After taking $1,200.00 from the store’s safe and cash registers, Hunter directed the clerks to the store’s stock room, took one clerk’s cellphone, and left the store. Hunter later travelled to Idaho, where he entered a Dollar Tree store in Coeur d’Alene on May 28, 2017, displayed a Taser, and demanded money. After stealing approximately $3,700.00, Hunter took a clerk’s cellphone and fled.
As part of a robbery spree that lasted more than a month, Hunter also robbed Dollar Tree and Dollar General stores in Adrian, Michigan, Manitowoc, Wisconsin, Lincoln, Nebraska, American Fork, Utah, Cheyenne, Wyoming, Wilkes Barre, Pennsylvania, and North Haven, Connecticut.
This case was investigated by the Federal Bureau of Investigation (FBI), the North Greenbush (New York) Police Department, and the Enfield (Connecticut) Police Department, and was prosecuted by Assistant United States Attorney Cyrus P.W. Rieck. The Idaho robbery was initially prosecuted by Assistant United States Attorney Traci Whelan of the U.S. Attorney’s Office for the District of Idaho, and then transferred to the Northern District of New York.
Child Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jason Bonds, 43, of Ascutney, Vermont, was sentenced on October 1, 2018, in United States District Court in Burlington, Vermont, to serve 45 months in prison after his guilty plea to one count of possession of child pornography. U.S. District Judge William K. Sessions III also ordered Bonds to serve a five (5) year term of supervised release, and to pay a $100 special assessment.
According to court records and proceedings, in 2016 Google discovered images of child pornography on its platform. Google transmitted a “Cybertip” to the National Center for Missing and Exploited Children, which forwarded the tip to the Vermont Internet Crimes Against Children Task Force (the ICAC). The ICAC investigated the tip and ultimately obtained a warrant to search Bonds’ former residence in Ascutney, Vermont. Upon learning that Bonds no longer resided there, law enforcement went to his new residence in Westminster, Vermont. In an interview with investigators, Bonds disclosed that he had viewed child pornography on his laptop computer, which he surrendered to investigators. During a forensic examination of Bonds’ computer, law enforcement found approximately 1,300 images and videos depicting child pornography. Some of the images were of children ranging in age from infant to age six (6), and depicted sadistic and masochistic conduct. Law enforcement also found evidence that Bonds went to chat rooms on the Internet where he chatted with whom he believed were 12 and 13-year old children.
During the investigation of the child pornography allegations, a prepubescent girl whom Bonds knew claimed that he sexually assaulted her. On May 22, 2018, Bonds pleaded guilty to lewd and lascivious conduct involving that child in Vermont state court. He is expected to be sentenced on the state charges on October 2, 2018. Bonds’ guilty plea to these charges in state court was a condition of his federal plea agreement.
United States Attorney Christina E. Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force, Homeland Security Investigations, and the Brattleboro Police Department in the investigation and prosecution of Bonds. The prosecution of Bonds was handled by Assistant U.S. Attorney Barbara A. Masterson. Bonds was represented by Assistant Federal Public Defender Steven L. Barth.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Captain of Prominent Tourist Sailing Ship Sentenced to Prison for Illegally Claiming DisabilityRead the Press Release
The Captain of a Seattle tourist sailboat was sentenced today in U.S. District Court in Seattle to 9 months in prison, two years of supervised release, a $5,500 fine and $324,738 in restitution and civil penalty, announced U.S. Attorney Annette L. Hayes. PAUL D. LAMARCHE, 67, pleaded guilty to wire fraud and theft of government property in March 2018, admitting he collected more than $177,000 in disability payments from the Railroad Retirement Board while operating Emerald City Charters – a tourist attraction running sailing ships on the Seattle waterfront. At the sentencing hearing U.S. District Judge James L. Robart said LAMARCHE was “…stealing from the government and lying about it…. He’s obviously made a lot of money, but he’s stealing every year… He’s a thief.”
According to records filed in the case, in June 1988, LAMARCHE claimed he could no longer work as a Burlington Northern Brakeman/Conductor due to a back injury. In August 1993, he began receiving a disability annuity from the Railroad Retirement Board. In connection with those payments, he certified annually that his medical condition had not improved, that he was unable to work and had limited earnings. In fact, from 1984 to the present, LAMARCHE owned and operated Emerald City Charters, which operates two large sea-going sailboats on Elliott Bay. While claiming disability, LAMARCHE submitted multiple forms to the U.S. Coast Guard certifying that he had no impairments that limit his physical activities or ability to pilot the sailboats.
On multiple occasions in various settings, LAMARCHE appeared in promotional videos actively sailing the boats. He made statements that he had missed “only a couple days of work in 23 years,” and he appeared in a television feature story doing yoga on a stand-up paddleboard. Even as the Railroad Board began investigating his disability claim in 2015, he continued to submit false reports claiming he was not able to “lift, pull or carry heavy items” was “unable to run or jump,” and had “debilitating headaches daily.” He now admits all those statements were false.
In addition to the $177,369 in restitution, LAMARCHE agreed to pay an additional $177,369 as a civil penalty for violating the False Claims Act. The U.S. Coast Guard has a pending action to address LAMARCHE’s Captain’s license. LAMARCHE was ordered to report to prison October 2, 2018.
The case was investigated by Special Agents of the Railroad Retirement Board Office of Inspector General (RRB-OIG) and U.S. Coast Guard Investigative Service.
The case was prosecuted by Assistant United States Attorney Stephen Hobbs and the civil investigation and settlement were handled by Assistant United States Attorney Kayla Stahman and Investigator Judy Swem.
California Man Sentenced to More Than 14 Years in Prison for Kidnapping Lyft DriverRead the Press Release
WASHINGTON – Shane Browne, 28, formerly of Beverly Hills, Calif., has been sentenced to a prison term of 14 years and eight months on charges stemming from the kidnapping of a Lyft driver last December, announced U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Browne was found guilty by a jury in April 2018 of charges of kidnapping and possession with intent to distribute marijuana. The verdict followed a trial in the U.S. District Court for the District of Columbia. He was sentenced on Sept. 28, 2018, by the Honorable Trevor N. McFadden. Following his prison term, Browne will be placed on five years of supervised release. The Court also ordered a civil forfeiture in the amount of $70,200 in connection with the marijuana that was seized in the case, as well as the forfeiture of approximately $35,000 in cash that was seized at an apartment where Browne had been staying in the District of Columbia.
At trial, the government’s evidence showed that on Dec. 11, 2017, Browne requested a ride using the Lyft smartphone application and ride-sharing service. The Lyft driver picked Browne up at approximately 3:20 p.m. at the Calvert House Apartments, in the 2400 block of Calvert Street NW. The driver drove Browne about 72 miles to a Red Roof Inn in Aberdeen, Md.
After arriving in Aberdeen at approximately 5:20 p.m., the two parted ways at a nearby McDonald’s restaurant, with the Lyft driver having grown suspicious of Browne and indicating that he would not provide a round trip. Within approximately 30 minutes, Browne returned to the Lyft vehicle with a suitcase that he did not have at the start of the trip. Browne placed the suitcase in the trunk, and requested a return trip, which the driver refused to provide.
Ultimately, Browne entered the Lyft vehicle and yet again requested a return trip, which the driver once again refused to provide. At this point, according to the government’s evidence, Browne took out a firearm, held it to the driver’s head, and ordered him to drive them back to the Calvert House Apartments. The driver then drove Browne and his suitcase to the Calvert House Apartments. Along the way, and as confirmed by Lyft business records, the driver managed to send an e-mail to Lyft that read, “Call the police I’m on [sic] trouble.”
At about 7:30 p.m., they arrived at the apartment building. Browne exited the vehicle and took his suitcase and entered the building. The driver, meanwhile, contacted OnStar and was subsequently referred to 911. MPD officers responded to the area at approximately 8:05 p.m. The officers monitored the building and ultimately detained Browne as he left a unit.
The following day, a search warrant was executed at the apartment, and law enforcement recovered approximately 78 pounds of marijuana in suitcases similar to the one that Browne had placed in the Lyft driver’s car, approximately $35,000 in cash, a cash-counting machine and other items. No firearm was recovered in the search.
Browne has been in custody since his arrest on Dec. 11, 2017.
In announcing the sentence, U.S. Attorney Liu, Assistant Director McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Violent Crimes Task Force, which includes MPD detectives, and the MPD officers who responded to the scene. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences, the FBI’s Baltimore Division, the FBI Operational Technology Division, and the Harford County, Md. Sheriff’s Department.
They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Chrisellen Kolb, Deputy Chief of the Appellate Division; Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorney Christopher Brown; Special Assistant U.S. Attorney Parker Tobin; Paralegal Specialists Candace Battle, Jeanette Litz, Catherine O’Neal, Kim Hall, and Teesha Tobias; Supervisory Paralegal Specialist Mary Downing; Legal Assistants Latoya Wade, Peter Gaboton, and Katie Cowley; Litigation Technology Specialist Claudia Gutierrez; Criminal Investigator John Marsh; Sarah McClellan, Chief of the Victim Witness Assistance Unit, and Victim/Witness Advocate Yvonne Bryant. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Sara Vanore and Stephen J. Gripkey, who indicted and tried the case.
California Man Facing Federal Drug Trafficking Charge Arising out of DEA Seizure of 46 Pounds of Fentanyl in New MexicoRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Alfred Galaviz, 54, of Calexico, Calif., with a fentanyl trafficking offense. The charge arises from a DEA seizure of approximately 45.92 pounds of fentanyl in Albuquerque on Sept. 27, 2018. Galaviz was remanded into custody pending trial, which has yet to be scheduled.
The DEA arrested Galaviz on Sept. 27, 2018, after seizing approximately 20.5 kilograms (45.92 pounds) of fentanyl from Galaviz’s luggage during an interdiction investigation in Albuquerque.
The penalty for a conviction on the offense charged in the criminal complaint is a statutory minimum penalty of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the DEA and Assistant U.S. Attorney Paul Schied is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Boynton Beach Resident Sentenced to 27 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
On September 28, 2018, a Boynton Beach resident was sentenced to 27 years in prison after having been convicted at trial of producing and possessing child pornography.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, David Aronberg, State Attorney for Palm Beach County, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office, and Michael Gregory, Chief, Boynton Beach Police Department, made the announcement.
Tommy R. Findley, 56, of Boynton Beach, Florida, was convicted by a trial jury in July of one count of production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and (e) and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B). U.S. District Court Judge Robin L. Rosenberg sentenced Findley to 324 months in prison, to be followed by a lifetime of supervised release. Judge Rosenberg also ordered Findley to register as a sex offender.
According to evidence and testimony presented at trial, while executing a search warrant at Findley’s residence, the Boynton Beach Police Department uncovered images and videos of child pornography. Located under Findley’s waterbed mattress and in a compartment of the trunk of his SUV, were concealed digital devices. These devices contained sexually explicit images and videos that Findley produced of a 16 year old.
U.S. Attorney Fajardo Orshan commended the investigation efforts of the FBI and the Boynton Beach Police Department in this matter. Mrs. Fajardo Orshan thanked Palm Beach County State Attorney Dave Aronberg for the 15th Judicial Circuit and his staff for their assistance. This case was prosecuted by Special Assistant United States Attorney Justin Hoover and Assistant United States Attorney Gregory Schiller.
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
Barberton man with history of drug convictions sentenced to 10 years in prison for firearms crimesRead the Press Release
A Barberton man with a history of drug convictions was sentenced to 10 years in prison for firearms crimes.
Sergio Watson, 27, was sentenced to 10 years in prison by U.S. District Judge John Adams. Watson was previously found guilty of being a felon in possession of firearms and ammunition.
Watson on April 19 possessed four pistols loaded with ammunition: a Springfield Armory XD 40 .40 caliber pistol, a stolen Smith and Wesson SW40VE .40 caliber pistol, a Ruger SR9C 9mm pistol and a stolen Titan Manufacturing .25 caliber pistol. Watson had previous convictions for burglary, heroin trafficking, aggravated drug trafficking, having weapons while under disability, cocaine possession and other crimes, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Aaron Howell following an investigation by the Akron Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ohio Adult Parole Authority.
Bank Robber Sentenced to over 7.5 Years in PrisonRead the Press Release
On September 28, 2018, U.S. District Court Judge Donald M. Middlebrooks sentenced Matthew Geoffrey Larson, 26, of West Palm Beach, to over 7.5 years in prison following his bank robbery and Hobbs Act robbery convictions.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida and Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
On July 25, 2018, Larson pled guilty to both counts of the Superseding Information charging him with bank robbery and Hobbs Act robbery, in violation of Title 18, United States Code, Sections 2113(a) and 1951(a) (Case No. 18-80107-CR-Middlebrooks). Judge Middlebrooks sentenced Larson to a total of 92 months in prison, to be followed by three years of supervised release. Larson was also ordered to pay $5,199 in restitution.
According to court documents, including an agreed upon factual proffer entered into by the defendant, on Friday, April 27, 2018, at approximately 5:15 p.m., Larson and a female companion, later determined to be 18 years old, entered the JP Morgan Chase Bank located at 1480 Greenview Shores Boulevard, Wellington, Florida. Larson and the female approached the teller station where the female robber held up in front of the teller a hand-written note while Larson stood behind her. The note read “No sudden movement, no alarm, no dye pack, if you do you’ll die.” After reading the note, the teller complied with the robbers’ demand and handed over the money from her counter drawer, a total of $4,420.00. Larson and the female then fled the bank.
Nine days later, on May 8, 2018, at approximately 3:35 p.m., Larson and the same female entered the Chic Boutique in Jupiter, Florida, and robbed the store clerk utilizing a note very similar to the one used in the Chase robbery, demanding money and directing the clerk not to activate a panic button or call the police. Again, the female robber handed the clerk the note while Larson stood behind her. Larson and the female robber fled the store with $152.00.
The female robber is currently facing state charges for the Jupiter robbery. A charging instrument contains accusations. A defendant is presumed innocent until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. Mrs. Fajardo Orshan thanked the Palm Beach County Sheriff’s Office and Jupiter Police Department. This case was prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Armed Robber Gets Significant Sentence for Pawn Shop BurglariesRead the Press Release
HOUSTON – Two Houston men have been ordered to federal prison for their convictions related to a string of Cash America Pawn robberies, announced U.S. Attorney Ryan K. Patrick. Patrick Earl Cooper Jr., 20, pleaded guilty July 2, 2018, while Joe Gutierrez entered his plea the month prior.
Today, U.S. District Judge Lynn Hughes handed Cooper a sentence of 108 months for his involvement in two armed robberies in addition to another seven years for using a firearm during a robbery. The total 16-year sentence will be followed by two years of supervised release. Gutierrez received 76 months for using a knife to rob a Cash America Pawn store on Oct. 31, 2017. He will also serve two years of supervised release.
Cooper was sentenced for two specific robberies at Cash America Pawn stores, during which the defendants stole firearms, cash and jewelry. Specifically, in October 2017, Cooper joined with Derrick Stewart to rob the Cash America Pawn at 8223 North Freeway at gunpoint. Cooper, Stewart and Gutierrez were finally captured and arrested Oct. 31, 2017, after robbing the Cash America Pawn at 1816 North Durham Street at knifepoint.
In imposing the sentence, the court found Cooper lacked remorse for his crimes and had not accepted responsibility when he assaulted a fellow inmate while pending sentencing.
Stewart, 20, of Houston, pleaded guilty to two robberies and using a firearm during a crime of violence and is scheduled to be sentenced Dec. 10, 2018.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Houston Police Department and the Harris County Precinct One Constable’s Office assisted with the Cash America Pawn robbery investigations. Assistant U.S. Attorneys Heather Winter and Richard Hanes are prosecuting the case.
AmerisourceBergen Corporation Agrees to Pay $625 Million to Resolve Allegations That it Illegally Repackaged Cancer–Supportive Injectable Drugs to Profit from OverfillRead the Press Release
The Department of Justice announced today that AmerisourceBergen Corporation and its subsidiaries AmerisourceBergen Specialty Group (ABSG), AmerisourceBergen Drug Corporation (ABDC), Oncology Supply Company (OSC), and Medical Initiatives Inc. (MII) (collectively, “ABC”) have agreed to pay $625 million to resolve allegations arising from its operation of a facility that improperly repackaged oncology-supportive injectable drugs into pre-filled syringes and improperly distributed those syringes to physicians treating vulnerable cancer patients. ABC is one of the nation’s largest wholesale drug companies and ranked number 11 on the Fortune 500 list. The drugs involved in ABC’s scheme were Procrit®, Aloxi®, Kytril® and its generic form granisetron, Anzemet® and Neupogen®.
Last year, AmerisourceBergen Specialty Group, a wholly-owned subsidiary of AmerisourceBergen Corporation, pled guilty to illegally distributing misbranded drugs and agreed to pay $260 million to resolve criminal liability for its distribution of these drugs from a facility that was not registered with the Food and Drug Administration (FDA). The settlement announced today resolves ABC’s civil liability to the United States under the False Claims Act for causing false claims for the drugs it repackaged to be submitted to federal health care programs.
“The $885 million combined civil and criminal resolution with ABC underscores our determination to utilize all tools at our disposal to pursue illicit schemes that seek to profit from circumvention of important safeguards designed to protect the nation’s drug supply,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division. “We will continue to be particularly vigilant where these schemes put the health and safety of vulnerable patients at risk.”
“ABC placed corporate profits over patients’ needs, endangering the health of vulnerable cancer patients,” stated United States Attorney Donoghue. “This settlement, and the substantial penalty ABC has agreed to pay, reflect this Office’s firm commitment to protecting those in need of healthcare and holding to account those who put the health and safety of patients at risk.” Mr. Donoghue expressed his appreciation to the Department of Veterans Affairs and the National Association of Medicaid Fraud Control Units for their assistance.
The United States contends that ABC sought to profit from the excess drug product or “overfill” contained within the original FDA-approved sterile vials for these cancer supportive injectable drugs by establishing a pre-filled syringe program through a subsidiary that it claimed was a pharmacy. The United States alleged that the “pharmacy” was in reality a repackaging operation that created and shipped millions of pre-filled syringes to oncology practices for administration to cancer-stricken patients. As part of this operation, ABC purchased original vials from their respective manufacturers, broke their sterility, pooled the contents, and repackaged the drugs into pre-filled syringes.
The United States alleged that ABC never submitted any safety, stability, or sterility data to the FDA to show that its operation ensured the safety and efficacy of the repackaged drug products. It further alleged that, at times, these pre-filled syringes were prepared in non-sterile conditions, contaminated with bacteria and other unknown particles, and lacked the required quality and purity.
In addition, by harvesting the overfill, ABC was able to create more doses than it bought from the original vial manufacturers. The United States alleged that ABC’s scheme enabled it to bill multiple health care providers for the same exact same vial of drug, causing some of those providers to bill the Federal Health Care Programs for the same vial more than once. The scheme also allegedly enabled ABC to increase its market share by offering various product discounts, which it leveraged to obtain new customers and to keep existing customers buying its entire portfolio of oncology drugs.
The settlement also resolves allegations that ABC gave kickbacks to physicians to induce them to purchase Procrit through the pre-filled syringe program. The alleged kickbacks were in the form of general pharmacy credits provided to customers, but which were not identifiable as specific to Procrit on the invoice.
Through these actions, the United States contended that ABC caused false claims to be submitted to the Centers for Medicare and Medicaid Services (“CMS”), the Department of Defense’s Defense Health Agency, which administers TRICARE, the Office of Personnel Management, which administers the Federal Employees Health Benefit Program, and the United States Department of Veterans Affairs (collectively, the “Federal Healthcare Payors”). Under the terms of today’s settlement, ABC will pay $581,809,006 plus accrued interest to the federal government and $43,190,994 plus accrued interest to state Medicaid programs.
“Drug companies such as ABC that seek to boost profits at the expense of cancer patients unnecessarily put the health and safety of this vulnerable population at risk,” stated HHS-OIG Special Agent-in-Charge Lampert. “Greed must never be a part of medical decision making. HHS-OIG, along with our law enforcement partners, is committed to protecting patient quality of care, and this settlement should serve as a warning to drug companies that are tempted to shortchange patient well-being.”
The settlement resolves allegations contained in three separate actions filed against ABC under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private parties may sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The relator share of the federal portion of the civil settlement will be $93,089,441.
The settlement was the result of close cooperation between the U.S. Attorney’s Office for the Eastern District of New York, the Civil Division, Commercial Litigation Branch, the Office of Inspector General of the Department of Health and Human Services, the Food and Drug Administration, the Department of Defense, the Office of Personnel Management, the Department of Veterans Affairs, and the state attorneys general and Medicaid Fraud Control Units. The three cases are captioned United States ex rel. Michael Mullen v. AmerisourceBergen Corporation, et al., Civil Action No. CV-10-4856 (E.D.N.Y); United States ex rel. Omni Healthcare Inc. v. AmerisourceBergen, et al., Civil Action No. CV-12- 1178 (E.D.N.Y); United States ex rel. Daniel Sypula and Kelly Hodge v. AmerisourceBergen Drug Corporation, et al., Civil Action No. CV-14-5278 (E.D.N.Y.).
Excepted as otherwise admitted as part of its guilty plea or the statement of facts accompanying the civil settlement agreement, the claims resolved by the civil settlement are allegations only, and there has been no admission of liability.
AmerisourceBergen Corp. to Pay $625 Million to Settle Civil Fraud Allegations Resulting from Its Repackaging and Sale of Adulterated Drugs and Unapproved New Drugs, Double Billing and Providing KickbacksRead the Press Release
AmerisourceBergen Corporation (ABC), one of the nation’s largest wholesale drug companies, and its subsidiaries AmerisourceBergen Specialty Group (ABSG), AmerisourceBergen Drug Corporation (ABDC), Oncology Supply Company (OSC), and Medical Initiatives, Inc. (MII) (collectively, “ABC” or “the Company”), entered into a settlement with the United States in which it agreed to pay $625 million to resolve civil liability under the False Claims Act, 31 U.S.C. § 3730 et seq. The claims against ABC arise from its repackaging and distributing of Pre-Filled Syringes (PFS) that were not approved for sale or use by the U.S. Food and Drug Administration (FDA). The drugs involved in the scheme were Procrit®, Aloxi®, Kytril® and its generic form granisetron, Anzemet® and Neupogen®, all supportive drugs for cancer patients undergoing chemotherapy treatment (the PFS Drugs).
As part of the civil settlement, ABC admitted that between January 2001 and January 2014, MII and OSC operated a program that created, packed and shipped millions of PFS to oncology practices for administration to vulnerable cancer patients (the PFS Program). At MII, an ABC subsidiary located in Alabama, the drug product was removed from the original glass vials and multiple vials of the product were pooled in untested plastic containers. Then the drug, including the overfill[1], was extracted and repackaged into syringes. By harvesting the overfill, ABC was able to create more doses than it bought from the original vial manufacturers and avoid opening some of the vials. ABC retained the unopened vials and sold them to other customers and to its subsidiary ABDC for resale. During the 13 years the PFS Program was in operation, MII manufactured thousands of syringes daily, and eventually over one million syringes per year. These syringes were sold throughout the United States. Approximately 57% of the patients who were injected with the PFS were Federal Health Care Program beneficiaries. The profit from the PFS Program was between $2.3 and $14.4 million annually for a total profit of at least $99.6 million.
ABC’s scheme enabled it to bill multiple health care providers for the same vial of drug, causing some of those providers to bill the Federal Health Care Programs for the same vial more than once. The scheme also enabled ABC to increase its market share by offering various product discounts, which it leveraged to obtain new customers and to keep existing customers who purchased its entire portfolio of oncology drugs. ABC excluded the entire PFS Program from its standard regulatory audit and pedigree compliance programs.
This civil settlement brings to $885 million the total penalties that ABC has paid to resolve liability resulting from the PFS Program. Previously, in September 2017, ABSG pleaded guilty to a criminal violation of 21 U.S.C. §§ 33l(a) and 333(a)(l) for the introduction of misbranded drugs into interstate commerce, as such drugs were manufactured and prepared at MII, an establishment not registered with the FDA pursuant to 21 U.S.C. § 360. In connection with that guilty plea, ABSG paid $260 million in criminal fines and forfeiture.
Richard P. Donoghue, U.S. Attorney for the Eastern District of New York; Joseph H. Hunt, Assistant Attorney General for the Civil Division of the Department of Justice; Mark S. McCormack, Special Agent-in-Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI); Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York Region; Bret D. Mastronardi, Special Agent-in-Charge, U.S. Office of Personnel Management, Office of the Inspector General (OPM-OIG); and Leigh-Alistair Barzey, Special Agent-in-Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office, announced the settlement.
“ABC placed corporate profits over patients’ needs, endangering the health of vulnerable cancer patients,” stated United States Attorney Donoghue. “This settlement, and the substantial penalty ABC has agreed to pay, reflect this Office’s firm commitment to protecting those in need of healthcare and holding to account those who put the health and safety of patients at risk.” Mr. Donoghue also expressed his appreciation to the Department of Veterans Affairs and the National Association of Medicaid Fraud Control Units for their assistance.
“The $885 million combined civil and criminal resolution with ABC underscores our determination to utilize all tools at our disposal to pursue illicit schemes that seek to profit from circumvention of important safeguards designed to protect the nation’s drug supply,” said Assistant Attorney General Hunt. “We will continue to be particularly vigilant where these schemes put the health and safety of vulnerable patients at risk.”
“U.S. patients rely on the FDA to ensure that injectable chemotherapy drugs are safe and effective. When companies attempt to avoid FDA’s oversight authority, they endanger these vulnerable patients’ health,” stated FDA-OCI Special Agent-in-Charge McCormack. “We will continue to pursue and bring to justice those who violate the public’s trust.”
“Drug companies such as ABC that seek to boost profits at the expense of cancer patients unnecessarily put the health and safety of this vulnerable population at risk,” stated HHS-OIG Special Agent-in-Charge Lampert. “Greed must never be a part of medical decision making. HHS-OIG, along with our law enforcement partners, is committed to protecting patient quality of care, and this settlement should serve as a warning to drug companies that are tempted to shortchange patient well-being.”
“Ensuring that Federal employees, retirees, and their families are protected from the adulteration of drugs and other harmful practices is of the utmost importance to the OPM-OIG,” stated OPM-OIG Special-Agent-in-Charge Mastronardi. “We will continue to aggressively investigate and prosecute all individuals who pursue profit at the expense of patient safety. I’d like to thank our criminal investigators and their law enforcement partners for their hard work and dedication on this case.”
“Ensuring the integrity of TRICARE, the U.S. Department of Defense's health care plan, is of paramount importance to the Defense Criminal Investigative Service (DCIS),” stated DCIS Special Agent-in-Charge Barzey. “Today’s settlement is the result of a joint agency effort to investigate pharmaceutical companies that manufacture and sell adulterated drugs that could threaten U.S. military members, retirees and their dependents.”
In its investigation, the United States determined that for each of the drugs that were converted into PFS, ABC failed to submit a New Drug Application or a Biologics License Application demonstrating the safety and efficacy of the PFS and did not receive FDA approval to manufacture the PFS. For this reason, the PFS, distributed throughout the United States for 13 years, were unapproved new drugs. In addition, ABC did not register MII with the FDA as a repackager. By avoiding registration, ABC also evaded FDA inspection and important safety and sterility safeguards, including current good manufacturing practices (“cGMP”), required of repackagers to ensure that their drug products are safe and effective. The United States contends that ABC was aware of the requirements to register, submit to inspection and prepare drugs in accordance with cGMP, but chose not to comply. Instead, the government’s investigation revealed that ABC falsely represented to physician customers that MII was a pharmacy. Through this claim, ABC sought to avoid FDA regulations because certain pharmacy practices are regulated under applicable state pharmacy laws. However, MII did not comport itself as a pharmacy. For example, MII did not obtain valid prescriptions, check for harmful potential drug interactions, or see or counsel patients. As ABC admitted, on many occasions, MII assigned the name of an individual to a set of PFS, and OSC subsequently shipped PFS that were in a bag labeled with that individual’s name, despite the fact that the individual was not in fact a patient who was to be administered a PFS. In some instances, the individual's name assigned to the set of PFS was a staff member at a physician customer (such as a nurse or office manager); in others, the individual was no longer a patient of the physician customer, either because the individual was no longer receiving treatment and/or because the individual was deceased. In addition, MII often filled orders that had been submitted with a single patient name, and/or assigned a single individual’s name to an order of PFS, far in excess of plausible and/or safe use of the drug product contained in the syringes. In addition, the United States contends that ABC represented to physicians that its repackaging procedures followed aseptic technique and complied with all applicable laws. The United States determined that the PFS were prepared in an unclean environment, were contaminated with actual filth, and were not of the quality or purity that ABC represented.
The settlement also resolves allegations that ABC gave kickbacks to physicians to induce them to purchase drugs through the PFS program. The alleged kickbacks were in the form of general pharmacy credits provided to the customer, which were not identifiable on an invoice as specific to Procrit®. OSC billed customers for Procrit® at full price and at the end of the week or month added a “general credit” to the customers’ account. Credits were not given for other drugs. The pharmacy rebate was not listed on the invoice as related to Procrit®; it was listed as a pharmacy rebate for pharmacy sales.
With the exception of the facts contained in the Statement of Facts attached to the settlement agreement, the settlement is not an admission of wrongdoing by ABC.
The settlement is the culmination of a multi-year parallel civil and criminal investigation by this Office into allegations contained in three qui tam actions filed against ABC in the United States District Court for the Eastern District of New York.[2] On August 31, 2017, the United States intervened in those actions, which were unsealed today. The cases are U.S. ex rel Michael Mullen v. AmerisourceBergen, et al. No. 1:10-4856; U.S. ex rel Omni Healthcare Inc. v. AmerisourceBergen, et al. No. 12-CV-1178; and U.S. ex rel Daniel Sypula, RPH and Kelly Hodge v. AmerisourceBergen, et al., No. 1:14-5278. All of the cases are pending before the Honorable Nina Gershon. The criminal case was resolved through a plea agreement in September 2017. United States v. AmerisourceBergen Specialty Group, LLC, CR. No. 17-507 (NG). In connection with the settlement, ABC also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”). In addition, ABC and 43 States have an agreement in principle to resolve claims under the States’ false claims acts.
The civil investigation and settlement with ABC were handled by the Office’s Civil Division. Assistant United States Attorneys Deborah B. Zwany and Matthew Silverman are in charge of these cases and were assisted by former Affirmative Civil Enforcement Coordinator Emily Rosenthal. The Office of Criminal Investigation at FDA, the Offices of the Inspector General at the Department of Health and Human Services, the Department of Defense, the Office of Personnel Management and the Department of Veterans Affairs assisted in the investigation of these cases. Sanjay Bhambhani, Department of Justice, Civil Frauds Section, and Jay Speers and Elizabeth Silverman, New York State Medicaid Fraud Control Unit assisted in the settlement of these cases. The criminal case against ABC was prosecuted by Assistant United States Attorneys Alixandra E. Smith and Ameet B. Kabrawala of the Office’s Business and Securities Fraud Section.
[1] The term “overfill” is a frequently used term in the pharmaceutical industry generally meaning the amount of extra drug above and beyond the labeled dose that is contained in an FDA-approved vial of drug. The overfill is not listed on the FDA-approved drug label. The reason manufacturers put overfill in each vial of drug is to ensure that the health care provider administering the drug will be able to extract the full labeled dose from the vial to give to the patient. See, e.g., 75 Fed. Reg. 73170, 73466-67 (Nov 29, 2010). It is also not included in the price of the vial.
[2] United States ex rel. Daniel Sypula v. AmerisourceBergen Corp., was originally filed in the Eastern District of Michigan and transferred to the Eastern District of New York.
26 Indicted in FBI, ATF, US Attorney's Office Project Safe Neighborhoods InvestigationsRead the Press Release
PROVIDENCE, RI – Twenty-six individuals have been indicted and more than two-dozen firearms, including three AK-47 and two AR-15 assault rifles, along with significant quantities of heroin, fentanyl, crack cocaine, and methamphetamine have been seized in a series of Project Safe Neighborhoods federal investigations into firearm and drug trafficking in and around Providence.
For the past 18 months, federal, state and local law enforcement agents and officers assigned to the FBI Safe Streets Task Force and to the ATF Task Force have conducted dozens of undercover investigations targeting individuals illegally obtaining and/or trafficking firearms, and trafficking narcotics.
Many of the individuals are members of or associated with street gangs.
Project Safe Neighborhoods is a federal, state and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods 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. “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.”
“For the past year, the Department of Justice has recommitted itself to the Project Safe Neighborhoods program, with the goal of reducing violent crime, thereby making all of our communities safer,” said United States Attorney Stephen G. Dambruch. He added, “These indictments and seizures demonstrate the significant progress federal, state and local law enforcement, working together as partners, made toward achieving that goal.”
Recent FBI Safe Street Task Force investigations have resulted in the seizure of seventeen firearms, including three AK-47 and two AR-15 assault rifles, more than 300 grams of fentanyl, 300 grams of crack cocaine, 100 grams of cocaine and 350 grams of crystal methamphetamine.
The most recent Safe Street Task Force arrests began in the pre-dawn hours of last Thursday, when more than 170 federal, state and local law enforcement agents, including multiple SWAT Teams, fanned out in Rhode Island and Southeastern Massachusetts seeking sixteen individuals named in nine sealed indictments returned by a federal grand jury in Providence. The Task Force also executed a total of seven federal court-authorized search warrants in Providence, Smithfield and New Bedford.
"These arrests should send a strong warning to gang members and violent criminals who engage in gun and drug trafficking in Providence and beyond. We're here, we're watching, and we will not standby and allow them to pollute our neighborhoods with guns, drugs, and crime,” said Special Agent in Charge of the FBI Boston Division Harold H. Shaw. “The FBI's Safe Streets Task Force will continue working together with our law enforcement partners, to disrupt criminals and their networks who are promoting violence on our streets. After all, every law abiding citizen should be free to walk down any street in any one of our neighborhoods without the fear of getting caught in the crosshairs of a violent crime."
ATF Task Force Project Safe Neighborhoods investigations have, to date, resulted in the seizure of twenty firearms and the indictment of eleven individuals. Among those arrested during a year-long investigation to identify individuals possessing or trafficking firearms, particularly in and around the Chad Brown neighborhood.
In a separate matter, investigated by the ATF Task Force, four alleged members or associates of the C-Block street gang are awaiting trial for their alleged roles in a crack cocaine distribution conspiracy run from inside the ACI.
“ATF and our law enforcement partners are committed to removing the criminal element from the streets of Rhode Island. These charges are another example of the importance of law enforcement working together and supporting the Project Safe Neighborhoods initiative,” commented Special Agent in Charge Mickey Leadingham.
Projected Safe Neighborhoods cases are being prosecuted by Assistant U.S. Attorneys Richard W. Rose, Milind H. Shah, Ly T. Chin, Dulce Donovan, Gerard B. Sullivan, Terrence Donnelly, and Ronald R. Gendron.
The FBI Safe Street Task Force is comprised of law enforcement agents and officers from the FBI, Rhode Island State Police, Providence Police Department, Cranston Police Department, Pawtucket Police Department, Woonsocket Police Department, Central Falls Police Department and the Special Investigations Unit of the Rhode Island Department of Corrections.
The ATF Task Force is comprised of law enforcement agents and officers from ATF, Providence Police Department, Pawtucket Police Department, Rhode Island State Police and the Special Investigations Unit of the Rhode Island Department of Corrections.
United States Attorney Stephen G. Dambruch and FBI Special Agent in Charge Harold H. Shaw acknowledge and thank the Bristol County Sheriff's Office, Fall River Police Department, New Bedford Police Department, North Attleboro Police Department, Massachusetts State Police, Rhode Island Fusion Center and the United States Marshals Service for their assistance in the execution of arrest and search warrants on Thursday.
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30 September 2018
September Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 29 indictments charging 30 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Daniel Argueta-Espinoza, age 23, of O’Neill, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with misuse of a social security number as his own on or about July 24, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of visas & other documents on or about July 24, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Joel Avila-Sanchez, a/k/a Joel Avila, a/k/a Luis Alvarado, age 53, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with identity theft on or about August 7, 2017. The maximum possible penalty if convicted is 15 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with falsely representing a Social Security number on or about August 12, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Santos A. Cortez-Sanchez, age 52, of O’Neill, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with misuse of a social security number on or about May 18, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of visas and other documents on or about May 18, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Misael Cruz-Escobar, age 33, of Sioux City, Iowa, is charged with illegal reentry after deportation on or about July 12, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Angel De Anda-Urenda, age 23, of Emerson, Nebraska, is charged with illegal reentry after deportation on or about August 29, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Devron Franklin, age 30, of Omaha, is charged with felon in possession of a firearm on or about July 2, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Israel Gaytan-Cruz, age 37, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with illegal reentry after deportation following a felony conviction on or about September 14, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with resisting or impeding certain officers or employees of Homeland Security on or about September 14, 2018. The maximum possible penalty if convicted is 1 year imprisonment, a $100,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Curtis R. Gills, age 61, and Cardella L. Gills, age 61, of Omaha, are charged in a six-Count Indictment. Count I charges the defendants with conspiracy to defraud the U.S. beginning on or about April 1, 1991 and continuing until November, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment each. Count II charges the Curtis with theft of Government Property on or about January 1, 1994 and continuing until November 1, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 years term of supervised release, and a $100 special assessment. Count III charges the Curtis with false statements to a Government Agency on or about August 24, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV charges the defendants with false statements to a Government Agency on or about August 24, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment each. Count V charges the defendants with conspiracy to defraud the U.S. beginning on or about April 11, 1995 and continuing until June, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment each. Count VI charges the Curtis with theft of Government Property on or about August 28, 2013 and continuing until May, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 years term of supervised release, and a $100 special assessment.
* Flor De Maria Gonzalez-De Paz, age 39, of O’Neill, Nebraska, is charged with illegal reentry after deportation on or about August 8, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Melvin Hilario Gregorio-Mendez, age 26, of Lexington, Nebraska, is charged with illegal reentry after deportation on or about August 28, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ashley R. Jimenez, age 32, of Sterling, Colorado is charged in a two-count Indictment with distribution of 5 grams or more of methamphetamine (actual) on or about March 4, 2018 and on or about March 20, 2018. The maximum possible penalty if convicted is 40 years imprisonment for each count, $5,000,000 fine for each count, 4 year term of supervised release for each count, and a $100 special assessment for each count.
* Marilyn K. Johnson, age 66, of Omaha, is charged with wrongfully obtaining individually identifiable health information on or about November 15, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Brad Lee Martin, a/k/a Casey Lee Kagy, age 44, of Omaha, is charged with possession with intent to distribute 5 grams or more of methamphetamine (actual) from on or about March 8, 2018 to on or about March 18, 2018. The maximum possible penalty if convicted is 40 years imprisonment, $5,000,000 fine, 4 year term of supervised release, and a $100 special assessment.
* Christian Molina, age 25, of El Paso, Texas, is charged with possession with intent to distribute 1 kilogram or more of heroin on or about July 2, 2018. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5 year term of supervised release, and a $100 special assessment.
* Diego Morales Xorxe, age 43, is charged with illegal reentry after deportation following a felony conviction on or about August 22, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Johana Morales-Ruano, age 23, of O’Neill, is charged with falsely representing a Social Security number as his own on or about December 2, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Connie Estrella Moreno, age 61, is charged with possession with intent to distribute 1 kilogram or more of heroin on or about September 13, 2018. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5 year term of supervised release, and a $100 special assessment.
* Dwight Morris, Jr., age 36, of Macy, Nebraska is charged in a two-count Indictment. Count I charges the defendant with domestic assault on or about August 15, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with being a domestic habitual offender on or about August 15, 2018. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Javon Murry, age 26, of Omaha, is charged with the attempted bank robbery of Mutual 1st Federal Credit Union on or about August 30, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Maurice J. Paola, age 23, of Las Vegas, Nevada, is charged in a two-count Indictment. Count I charges the defendant with interference with flight crew members and attendants on or about September 3, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with assault on board an aircraft on or about September 3, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Francisco Perez Ramos, age 22, of O’Neill, Nebraska, is charged with illegal reentry after deportation on or about August 8, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Lino Margarito Quintana-Morales, age 32, of Scottsbluff, Nebraska, is charged with illegal reentry after deportation on or about May 25, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Juan Isabel-Quishan, age 41, of Grand Island, Nebraska, is charged with illegal reentry after deportation on or about August 8, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Carlos Ely Ramos Gonzalez, age 49, is charged with illegal reentry after deportation on or about August 30, 2018 following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Angel Romero-Hernandez, age 43, of O’Neill, Nebraska, is charged with fraud and misuse of a social security number on or about June 12, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Roman Saquiche-Sifuentes, age 67, of O’Neill, Nebraska, is charged with illegal reentry after deportation on or about August 8, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Domingo Velasquez, age 34, of Omaha, is charged with illegal reentry after deportation on or about August 24, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Roberto Vergara Gonzalez, age 50, of O’Neill, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with false representation of a social security number on or about April 14, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of visas and other documents on or about March 21, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Chasstady Rose Walker, age 34, is charged with possession with intent to distribute 50 grams or more of methamphetamine on or about August 27, 2018. The maximum possible penalty if convicted is not less than 40 years imprisonment, a $5,000,000 fine, not less than a four year term of supervised release, and a $100 special assessment.
Justice Department Files Net Neutrality Lawsuit Against the State of CaliforniaRead the Press Release
The Justice Department today filed a lawsuit against the state of California alleging that Senate Bill 822, an Internet regulation bill signed into law earlier today by Governor Jerry Brown, unlawfully imposes burdens on the Federal Government’s deregulatory approach to the Internet, announced Attorney General Jeff Sessions, Acting Associate Attorney General Jesse Panuccio, Assistant Attorney General Joseph H. Hunt for the Justice Department’s Civil Division, and Federal Communications Commission (FCC) Chairman Ajit Pai.
In 1996, a bipartisan Congress decided that the Internet should remain “unfettered by Federal or State regulation.” Since 2002, the FCC has accordingly classified broadband Internet access as an “information service” that is exempt from public-utility regulations. The FCC briefly departed from this classification in a 2015 Order, which imposed restrictions on the freedom of the Internet. In 2018, the FCC returned to its prior light-touch framework, ensuring that Internet access services are free and guided by a uniform set of federal rules, rather than by a patchwork of state and local regulations. The United States concluded that California, through Senate Bill 822, is attempting to subvert the Federal Government’s deregulatory approach by imposing burdensome state regulations on the free Internet, which is unlawful and anti-consumer.
In filing the complaint, Attorney General Jeff Sessions issued the following statement:
“Under the Constitution, states do not regulate interstate commerce—the federal government does. Once again the California legislature has enacted an extreme and illegal state law attempting to frustrate federal policy. The Justice Department should not have to spend valuable time and resources to file this suit today, but we have a duty to defend the prerogatives of the federal government and protect our Constitutional order. We will do so with vigor. We are confident that we will prevail in this case—because the facts are on our side.”
FCC Chairman Ajit Pai issued the following statement:
“I’m pleased the Department of Justice has filed this suit. The Internet is inherently an interstate information service. As such, only the federal government can set policy in this area. And the U.S. Court of Appeals for the Eighth Circuit recently reaffirmed that state regulation of information services is preempted by federal law.
“Not only is California’s Internet regulation law illegal, it also hurts consumers. The law prohibits many free-data plans, which allow consumers to stream video, music, and the like exempt from any data limits. They have proven enormously popular in the marketplace, especially among lower-income Americans. But notwithstanding the consumer benefits, this state law bans them.
“The Internet is free and open today, and it will continue to be under the light-touch protections of the FCC’s Restoring Internet Freedom Order. I look forward to working with my colleagues and the Department of Justice to ensure the Internet remains ‘unfettered by Federal or State regulation,’ as federal law requires, and the domain of engineers, entrepreneurs, and technologists, not lawyers and bureaucrats.”
28 September 2018
VA Exonerated in Two Negligence LawsuitsRead 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 U.S. District Judge Elizabeth A. Wolford dismissed a negligence lawsuit seeking damages brought by plaintiff Lenray Harris against the Department of Veterans Affairs Medical Center (VA) in Buffalo. The plaintiff claimed that she suffered emotional injuries following the VA’s disclosure that several of its nurses improperly administered insulin pens during the time period that Harris received treatment at the VA following knee replacement surgery. The plaintiff was given insulin for her diabetes and claimed that she feared that she had contracted a blood borne disease.
In her decision, Judge Wolford stated, “[p]laintiff cannot support a claim for negligent infliction of emotional distress.”
In a similar ruling, U.S. Magistrate Judge Hugh B. Scott recommended dismissal of a negligence lawsuit filed by plaintiff Archie Maxwell who claimed that the VA reused insulin pens and exposed Maxwell to HIV or Hepatitis B or C. The plaintiff was treated for diabetes while an inpatient at the VA from December 29, 2011, to January 9, 2012, and from August 9, 2012, to August 14, 2012. Maxwell alleged that in February 2013, he tested positive for Hepatitis B.
In his decision, Magistrate Judge Scott stated, “There is no record of any patient, including plaintiff, being infected from use of the insulin pens, thus plaintiff fails to prove actual exposure to HIV or Hepatitis C.”
From 2012 to 2013, the Veterans Affairs Office of Inspector General (OIG), Office of Healthcare Inspections, investigated the use of insulin pens at the Buffalo VA. The OIG found no documented cases of transmitting blood borne pathogens related to the use of an insulin pen on multiple patients.
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Two New Orleans Men Charged with Illegal Possession of FirearmsRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that a federal grand jury returned an indictment against defendants LARMONDO ALLEN, a/k/a “Nino,” and WAYNE BANKS, both from New Orleans, for being felons in possession of firearms, in violation of Title 18, United States Code, Section 922(g)(1). ALLEN and BANKS face a maximum term of imprisonment of 10 years, a $250,000 fine, three years supervised release following any term of imprisonment, and a $100 special assessment fee.
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.
This matter was handled by the Louisiana State Police and the Federal Bureau of Investigation. Assistant U.S. Attorney Liz Privitera is prosecuting the case.
Two MCI-Cedar Junction Inmates and Two Family Members Indicted on Drug ChargesRead the Press Release
BOSTON – Two MCI-Cedar Junction inmates, and the wife and mother of one of the inmates, were charged in federal court in Boston in connection with smuggling drugs into the facility.
Chad Connors, 42, and William Guillemette, 39, both inmates at Massachusetts Correctional Institute – Cedar Junction (MCI-CJ) in South Walpole, and Lisa Guillemette, 42, and Margaret Guillemette, 58, both of Fall River, were each charged in an indictment unsealed today with one count of conspiracy to distribute Suboxone and Alprazolam. Lisa and Margaret Guillemette were arrested today and will appear in federal court in Boston this afternoon. Connors and William Guillemette will appear at a later date.
According to the charging documents, Chad Connors and William Guillemette were inmates housed at MCI-CJ’s Departmental Disciplinary Unit (DDU). It is alleged that Connors was involved in a romantic relationship with Christine Ramos, a nurse assigned to the DDU. At Connors’ request, Ramos agreed to smuggle contraband, including controlled substances, into MCI-CJ. In order to do this, Ramos opened two Post Office Boxes through a third party. Connors sent letters and money to Ramos at these P.O. Boxes, and, at William Guillemette’s direction, his wife, Lisa, and mother, Margaret, obtained and sent Suboxone and Alprazolam to the P.O. Boxes. Ramos subsequently smuggled the drugs into the DDU and delivered them to Connors. It is alleged that Connors and William Guillemette distributed the drugs to other inmates, who sent checks to Lisa and Margaret Guillemette as payment for the drugs.
According to court documents, Suboxone and Alprazolam are Schedule III and Schedule IV controlled substances, respectively.
Christine Ramos was previously charged and pleaded guilty to one count of conspiracy to distribute Suboxone and Alprazolam. She is scheduled to be sentenced on Dec. 17, 2018.
The charge of conspiracy to distribute Suboxone and Alprazolam provide for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $500,000, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Thomas A. Turco III of the Massachusetts Department of Correction; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Lynn Men Arrested for Drug and Firearm PossessionRead the Press Release
BOSTON – Two Lynn men were arrested yesterday and charged in federal court in Boston in connection with drug and firearm charges.
Carlos Lopez, aka “C-Lo,” 30, was charged in an indictment unsealed yesterday with one count of possession with intent to distribute heroin and marijuana, one count of being a felon in possession of firearms and ammunition, and one count of possession of firearms in furtherance of drug trafficking crimes. Dionis Lopez, aka “Kuku,” 28, was indicted on one count of possession with intent to distribute 40 grams or more of fentanyl, cocaine and marijuana, one count of possession of a firearm with an obliterated serial number, and one count of possession of firearms in furtherance of drug trafficking crimes. The defendants were detained following an initial appearance in federal court in Boston.
According to the indictment, on Nov. 14, 2017, Carlos Lopez possessed and intended to distribute heroin and marijuana while in possession of a Bersa, Model Thunder 380, .380 caliber pistol and a Beretta, Model Px4, 9mm pistol with various rounds of 9mm ammunition. Due to a previous conviction for a crime punishable by more than one year in prison, Carlos Lopez was prohibited from possessing a firearm or ammunition.
The indictment also alleged that, on Nov. 14, 2017, Dionis Lopez possessed and intended to distribute 40 grams or more of a substance containing fentanyl, cocaine and marijuana while in possession of a Glock, Model 27, .40 caliber pistol with an obliterated serial number and a Glock, Model 19, 9 mm pistol.
The charge of possession with intent to distribute heroin and marijuana provides for a sentence of no greater than 20 years in prison, at least three years and up to life of supervised release and a fine of $1 million. The charge of being a felon in possession of firearms and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession of firearms in furtherance of drug trafficking crimes provides for a mandatory sentence of five years in prison to be served consecutive to any other term imposed and no greater than three years of supervised release. The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of $2 million. The charge of possession of a firearm with an obliterated serial number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Lynn Police Chief Michael Mageary made the announcement today. Assistant U.S. Attorney Timothy Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Individuals Indicted for Firearms OffensesRead the Press Release
SAN JUAN, P.R. – On September 20, 2018, a federal grand jury in the District of Puerto Rico returned an indictment against two defendants charged for being convicted felons in possession of firearms, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) is in charge of the investigation.
According to the information contained in the indictment, Benny Ruperto Rivera and Raymond Quintana Sotomayor, having been convicted of a crime punishable by imprisonment for a term exceeding one year did knowingly possess in and affecting interstate commerce firearms of unknown make, model and caliber and ammunition, said firearms and ammunition having been shipped and transported in interstate commerce; in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Benny Ruperto Rivera was arrested today and Raymond Quintana Sotomayor was arrested on September 19, 2018.
These arrests are part of the Trigger Puller Initiative, the Mayagüez Strike Force, and ATF. Ruperto Rivera and Raymond Quintana Sotomayor are two of the four individuals in a video that has been making the rounds in the media where rifles and guns are brandished at the camera by the four individuals threatening rapper Anuel AA. Quintana Sotomayor was also absconded from state probation at the time of his arrest.
The case is being prosecuted by Assistant United States Attorney Teresa S. Zapata-Valladares. If convicted, defendants face up to 10 years in prison. An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Truck Driver Sentenced for Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Neal Braden, 61, was sentenced today to serve 97 months in prison for receiving and possessing child pornography, announced United States Attorney Grant C. Jaquith and James Hendricks, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Hon. Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Braden is released from prison and ordered payment of $1,000 in restitution to each of four victims. As a result of his conviction, Braden will be required to register as a sex offender upon his release from prison.
As part of his previous guilty plea, Braden admitted that he downloaded videos of child pornography over the internet and that he possessed those videos on his laptop computer in his truck when he was stopped by the New York State Police for failing to have the appropriate Highway Use Tax documentation displayed on his vehicle. A search of Braden’s laptop computer revealed that he possessed 19 videos depicting child pornography.
In addition to his plea to receipt of child pornography, Braden also pled guilty to an indictment pending in the Western District of Missouri that charged him with Possessing Child Pornography in 2015 in Morgan County, Missouri.
Braden’s case was investigated by the New York State Police Troop D, the Morgan County, (Missouri) Sheriff's Department and the Federal Bureau of Investigation’s (FBI) Albany and Kansas City Divisions. The case was prosecuted by Assistant U.S. Attorneys Geoffrey J. L. Brown (NDNY) and Ashley Turner (WDMO).
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Three Individuals Charged with Distributing over 100 Kilograms of Fentanyl, Fentanyl Analogues and Heroin on Long IslandRead the Press Release
Gary Davis, Joel Lee Faison and Tamien Trent were arraigned late yesterday afternoon before United States District Court Judge Joseph F. Bianco at the federal courthouse in Central Islip on a 13-count indictment charging them with conspiring to distribute and possess with intent to distribute controlled substances, including heroin and fentanyl, using firearms in connection with these drug trafficking crimes and related charges. At their initial appearances on September 27, 2018, each defendant was ordered permanently detained.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; Timothy D. Sini, District Attorney for Suffolk County; and Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the charges.
“As alleged in the indictment, these defendants sold tremendous amounts of heroin, fentanyl and fentanyl analogues throughout Long Island, flooding our streets with life-threatening drugs and enriching themselves at the expense of those suffering from addiction,” stated United States Attorney Donoghue. “The Eastern District and our partners will continue the fight to protect our communities from those who deal heroin and other deadly drugs seeking to profit from the opioid epidemic.” Mr. Donoghue extended his grateful appreciation to the New York National Guard Counter Drug Task Force for their assistance in the investigation.
“We know these mixtures of fentanyl and heroin are killing people every day in our communities,” stated FBI Assistant Director-in-Charge Sweeney. “One of the subjects in this case actually bragged about how potent the drugs were that he was selling. The FBI and the agencies we’ve partnered with on the FBI Long Island Gang Task Force work each day to stop the proliferation of these deadly drugs, and we won’t stop until we round up every dealer who looks to make money on the pain and suffering of people.”
“The charges against the defendants illustrate the law enforcement community’s shared and unwavering commitment to ridding the community of deadly drugs and bringing to justice those who distribute this poison in our communities,” stated HSI Special Agent-in-Charge Melendez.
“What is particularly sickening about these defendants is that they used as a selling point the fact that the drugs were causing overdoses. They did so by selling fentanyl analogs – synthetic narcotics that are specifically designed by drug dealers to evade law enforcement,” stated Suffolk County District Attorney Sini. “The message here is clear: we will not tolerate individuals peddling this poison in our communities and no matter what steps they take to evade law enforcement, we will find them. I thank our partners in the FBI, ICE, and the Suffolk County Police Department for continuing to partner with my office to target drug dealers and help end our community's opioid crisis. Most of all, I appreciate the outstanding work done by the United States Attorney's Office for the Eastern District of New York and its great prosecutors.”“Taking these three high-level suppliers off the streets will make a significant impact on the amount of drugs that are available for sale,” stated SCPD Commissioner Hart. “These three unabashedly fed the addictions of countless individuals, ruining the lives of not only those addicted, but of their families as well. We should all be proud of the work of everyone involved in not only this case but all the detectives and investigators who dedicate their efforts to fighting the drug epidemic that’s impacting our communities.”
According to the indictment and court filings, from approximately September 2014 until their arrests on September 27, 2018, the defendants distributed in excess of 100 kilograms of heroin, fentanyl and fentanyl analogues, as well as crack cocaine across Long Island. Trent boasted to a government witness that the narcotics he was selling were rendering people unconscious and, on at least one occasion, he forwarded photographs to another person of unconscious drug customers to demonstrate the potency of the drugs. The government’s investigation revealed that the defendants used firearms to protect their organization and distribution chain from rivals. Search warrants executed at the time of the defendants’ arrests resulted in the recovery of a substance that field-tested positive for heroin, a handgun, two shotguns and United States currency.
If convicted, the defendants face a maximum sentence of lifetime imprisonment.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Division. Assistant United States Attorneys Christopher C. Caffarone and Mark E. Misorek, and Special Assistant United States Attorney Jacob T. Kubetz are in charge of the prosecution.
The Defendants:
GARY DAVIS (also known as “G”)
Age: 38
Residence: Mastic Beach, New YorkJOEL LEE FAISON (also known as “Face”)
Age: 42
Residence: Mastic Beach, New YorkTAMIEN TRENT (also known as “Taim”)
Age: 36
Residence: Mastic Beach, New YorkEDNY Docket No. 18-CR-1221 (JFB)
St. George Woman Pleads Guilty to Unlawfully Collecting over $93,000 in Deceased Mother’s Social Security BenefitsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Carol Philbin, 66, of St. George, Vermont, appeared today in federal district court in Burlington to answer to charges that, following her mother’s death in July 2009, Philbin unlawfully collected $93,345 in Social Security Administration benefits issued to her mother and used the money for her own expenses. The Information filed in the case covers the time-period between July 2009 and April 2014. United States District Court Judge Christina Reiss accepted Philbin’s guilty plea to the one count charged in the Information and released Philbin on conditions. Judge Reiss ordered Philbin to be back in U.S. District Court on February 11, 2019, for sentencing.
According to court documents, Carol Philbin was formerly Vice President for Personal Trusts at Merchant’s Bank and a trust officer before that at various other banks. Following her mother’s non-fatal stroke, Philbin served as Trustee for her mother’s estate during her mother’s lifetime. As such, Philbin was aware that her mother was receiving Social Security benefits while she was alive. When her mother died on July 2, 2009, Philbin knew that her responsibilities included notification to various parties, including the Social Security Administration. Philbin failed to notify the Social Security Administration of her mother’s death, despite being aware of her duty to so report. Instead, between July 2009 and April 2014, Philbin continued to receive the benefits issued to her mother and used the money for her own expenses. In total, Philbin unlawfully received and retained $93,345.00 in social security payments.
Philbin pleaded guilty to one count of making a false statement to a department or agency of the United States, a violation of 18 U.S.C. § 1001(a)(2). Philbin faces up to five years of imprisonment, followed by up to three years of supervised release. Philbin further faces a fine of up to $250,000. The actual sentence, however, will be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. As part of her negotiated plea with the government, the government agreed to recommend a sentence of time served if Philbin pays $50,000 in restitution to the Social Security Administration on or before sentencing and $43,345 in restitution in yearly installments over a period of three years.
The United States is represented in this matter by Assistant U.S. Attorney Abigail Averbach. Carol Philbin is represented by Peter Langrock of Langrock Sperry & Wool of Burlington, Vermont.
Sentient Science to Pay $2.675 Million to Resolve False Claims Act AllegationsRead 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 Sentient Science Corporation, a Buffalo, NY, based research and technology corporation, has agreed to pay the United States $2,675,000 to resolve allegations that it violated the False Claims Act.
Assistant U.S. Attorney Amy N. Okereke, who handled the case, stated that Sentient Science made false statements and representations to receive federal funding under three Small Business Innovation Research (SBIR) awards issued by the National Science Foundation (NSF) and the U.S. Department of Energy (DOE). SBIR grant awards are issued to small, for-profit businesses, such as Sentient, for the purpose of stimulating technological innovation, to meet federal research and development needs, and increasing private sector commercialization of innovations derived from federal research and development.
According to the settlement, Sentient made false statements concerning:
• Key personnel that Sentient claimed it would use in the performance of research projects funded by the United States. The corporation did not use such personnel and in some instances substituted significantly less qualified employees to perform work; • Sentient claimed to have received third-party contracts as a result of work performed for the government in order to obtain additional government funding; and
• Information in grant milestone reports which falsely represented that Sentient expended grant monies that in fact had had not expended.“Federal funding, such as the Small Business Innovation Research award, is designed to give small business the chance to turn big dreams into a reality,” stated U.S. Attorney James P. Kennedy, Jr. “When such funding designed to stimulate technology and research is misused, not only do the American taxpayers pay the price, but so do those businesses whose dreams may never become a reality, depriving our country of what could be life-changing scientific research.”
“The SBIR program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research, and it is essential to protect the integrity of this program,” commented Alison Lerner, the Inspector General for NSF. “The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort.”
“Compliance with Small Business Innovation Research (SBIR) requirements is expected by all who have the privilege of being funded by the U.S. Department of Energy for this essential program. The Office of Inspector General is committed to investigating allegations of wrongdoing associated with the SBIR grants so that the American taxpayer can maintain confidence in the SBIR program,” said Acting Inspector General April G. Stephenson.
The settlement is the result of an investigation by the National Science Foundation, Office of Inspector General, under the direction of Inspector General Allison Lerner, and the Department of Energy, Office of Inspector General, under the direction of Acting Inspector General April G. Stephenson.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Rockland Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
BOSTON – A Rockland woman pleaded guilty today in federal court in Boston to stealing Social Security benefits.
Catherine M. Anzalone, 55, pleaded guilty to one count of theft of public funds. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 10, 2019. Anzalone was arrested and charged in February 2018.
Anzalone’s mother passed away in March 2000. At the time of her death, Anzalone’s mother was receiving monthly retirement benefits from Social Security. Social Security, however, was never advised of Anzalone’s mother’s death and continued to deposit her benefit payments into a bank account she held jointly with Anzalone. From April 2000 through April 2017, Anzalone stole approximately $155,736 in Social Security benefits.
The charge of theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Reginald Shannon Irby Sentenced Following Guilty Plea to a Federal Firearm ChargeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Reginald Shannon Irby of Mobile, Alabama was sentenced to 24 months imprisonment. Irby’s sentencing followed entry of a May 2018 guilty plea to a charge of prohibited person in possession of a firearm. Chief United States District Court Judge Kristi K. Dubose imposed the sentence after hearing from his attorney that Irby was a drug user that needs help. Judge Dubose noted that the twenty-six year old Irby needs to decide if he wants to be in and out of prison for the rest of his life. Judge Dubose also recognized Irby’s family support in the courtroom and told Irby that he could turn things around. The Judge imposed the federal term of imprisonment to run concurrently from the date of sentencing, with a state revocation sentence Irby is currently serving for two prior armed burglary convictions from 2013. Irby’s guilty plea included his admission that on January 3, 2018, he was in knowing possession of a loaded .32 caliber revolver.
Possession of a firearm by a prohibited person, in this instance a convicted felon, is a violation of Title 18, United States Code Section 922(g)(1). Irby’s term of imprisonment will be followed by a three (3) year term of supervised release.
This case arose from a referral by the Mobile Police Department to the Mobile Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives who completed the investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Pittsburgh Man Pleads Guilty to Possessing Illegal Drugs while on Supervised Release for a Prior Drug ConvictionRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, pleaded guilty yesterday in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Devon Horne, age 31, pleaded guilty before United States District Judge Mark R. Hornak to one count, and he admitted violating the terms of his supervised release for a prior case in which he pleaded guilty to conspiracy to distribute heroin.
In connection with the guilty plea, the court was advised that on or about January 4, 2018, Horne knowingly and intentionally possessed with intent to distribute quantities of heroin and crack cocaine, while under supervision for his prior conviction of conspiracy to distribute heroin.
Judge Hornak scheduled sentencing for January 23, 2019 at 9:30 a.m. The law provides for a total sentence of not more than 30 years in prison, a fine of not more than $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation that led to the prosecution of Horne.
Pineville man sentenced to five years in prison for accessing child pornography onlineRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that a man from Pineville was sentenced to 60 months in prison for accessing child pornography online.
Corey Brossette, 24, of Pineville, Louisiana, was sentenced by U.S. District Judge Dee D. Drell to one count of access with intent to view child pornography. He was also sentenced to five years of supervised release and is required to register as a sex offender. According to the May 17, 2018 guilty plea, law enforcement agents detected Brossette’s computer accessing a child pornography website on what’s known as the dark web or the deep web and viewing child pornography. After agents determined the location of the computer accessing the website, agents searched the home where Brossette was living at the time and interviewed Brossette. He admitted viewing child pornography online and using the dark web. To learn more about the dark web or deep web, visit the FBI’s website at www.fbi.gov/news/stories/a-primer-on-darknet-marketplaces.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Alexandria FBI office number is (318) 443-5097.
The FBI conducted the investigation. Assistant U.S. Attorney Mike O’Mara prosecuted the case.
Pennsylvania Man Admits Defrauding Lending Company Out of More Than $400,000Read the Press Release
CAMDEN, N.J. – The president of a staffing company today admitted defrauding a commercial finance lending company out of more than $400,000, U.S. Attorney Craig Carpenito announced.
Jeremy Hare, 47, of Philadelphia, pleaded guilty today before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with wire fraud.According to documents filed in the case and statements made in court:
Hare was the president and managing member of Apollo Search Partners LLC, a staffing agency with an office in New Jersey. On June 16, 2017, Hare had Apollo enter into a financing agreement with a commercial finance lender that offered funding to companies so that they could meet payroll and other obligations. The lender agreed to provide funding to Apollo. In order to get funding, Apollo would provide the Victim Company invoices and supporting time cards for each person Apollo staffed with a client.
Between June 20, 2017 and Aug. 15, 2017, Hare submitted more than 15 invoices to the lender even though Apollo never staffed most of the individuals listed on the invoices and the time sheets submitted with the invoices included hours that were never worked. Based on those invoices, the lender provided more than $400,000 to Apollo between June and August 2017. To date, the lending company has not received reimbursement for that funding.
The charge carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 4, 2019.U.S. Attorney Carpenito credited and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit and Sarah Devlin of the Asset Recovery and Money Laundering Unit in Newark.
Defense counsel: Ronald L. Greenblatt Esq., Philadelphia
Owner of Fife, Washington Seafood Processing Company Sentenced to Prison for Sea Cucumber Lacey Act ViolationRead the Press Release
The owner of Orient Seafood Production of Fife, Washington, was sentenced today in U.S. District Court in Seattle to two years in prison, three years of supervised release and nearly $1.5 million in restitution for his scheme to overharvest and profit on illegally taken sea cucumbers, announced U.S. Attorney Annette L. Hayes. HOON NAMKOONG, 62, pleaded guilty in April 2018, admitting that between August 2014, and November 2016, he conspired with others to underreport the amount of sea cucumbers purchased for processing by approximately 250,000 pounds. The post-processing market value of the stolen sea cucumbers is nearly $1.5 million. At sentencing Chief U.S. District Judge Ricardo S. Martinez said, by creating the market for illegal harvesters NAMKOONG did “significant damage to sea cucumber populations and habitat that may take years to repair.”
“This defendant lined his pockets by purchasing and selling illegally harvested sea cucumbers equal to as much as 20 percent of the total allowed state-wide harvest,” said U.S. Attorney Hayes. “This illegal activity damages the health of the Puget Sound ecosystem by endangering the sustainability of the sea cucumber population. Illegal harvesting undermines quotas designed to protect the resource and keep the Sound healthy for our children and generations to come.”
According to records filed in the case, over portions of three harvesting seasons, HOON NAMKOONG purchased sea cucumbers from both tribal and non-tribal fishers in the Puget Sound region. Sea cucumbers are classified as shellfish, and harvests are regulated by both Washington State and Tribal authorities. To protect the resource, the harvests are tracked by fish tickets signed by both the fisher and the purchaser. HOON NAMKOONG admits that he falsified fish tickets, failed to prepare fish tickets or retain confirmation of fish tickets submitted by third parties, and frequently paid fishers in cash for their sea cucumbers so there would be no financial record of the total amount of sea cucumbers taken. Falsifying fish tickets, and processing and selling in interstate or foreign commerce illegally obtained shellfish are violations of the Lacey Act, the federal law that prohibits illegal trafficking in wildlife, fish, and plants.
HOON NAMKOONG’s company processed the sea cucumbers and sold and transported them to wholesale seafood buyers in both the U.S. and Asia, for a gain of nearly $1.5 million. NAMKOONG was ordered to pay $1,499,999 in restitution to the state and Tribal entities.
The case was investigated by the NOAA Office of Law Enforcement and the Washington State Department of Fish and Wildlife.
The case is being prosecuted by Assistant United States Attorneys Matthew Diggs and Seth Wilkinson.
Oil Services CEO and Executive Sentenced to Prison for Roles in Foreign Bribery SchemeRead the Press Release
A former CEO and former executive of an oil services company were sentenced to prison today for their involvement in an international bribery conspiracy.
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 and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Anthony “Tony” Mace, 66, of the United Kingdom, the former CEO of SBM Offshore, N.V. (SBM), a Dutch oil services company, and a former Board Member of SBM’s U.S.-based subsidiary, SBM Offshore USA Inc. (SBM USA), was sentenced to serve 36 months in prison and a fine of $150,000. Robert Zubiate, 66, of Agoura Hills, California, a former sales and marketing executive at SBM USA, was sentenced to serve 30 months in prison and a fine of $50,000.
“Anthony Mace and Robert Zubiate played key roles in a massive bribery scheme that involved the payment of millions of dollars to public officials in exchange for lucrative oil-services contracts,” said Assistant Attorney General Benczkowski. “Their actions rewarded corrupt officials’ greed and tilted the playing field against honest, law-abiding companies. Today they paid a heavy price for their crimes. Their sentences should serve as a warning to corporate executives everywhere: if you pay bribes to advance your business interests, we will catch you and we will prosecute you to the fullest extent of the law.”
“Pursuing corrupt companies and individuals who misuse our financial system to commit FCPA violations represents our commitment to keeping the integrity of American democracy in place both here and abroad,” said U.S. Attorney Patrick. “We will continue to prosecute such cases involving wrongdoing for corporate crimes and greed.”
“This case is a prime example of Homeland Security Investigations’ enduring commitment to work closely with our foreign law enforcement partners to track down those who seek to gain an unfair competitive advantage in the international marketplace,” said HSI Special Agent in Charge Dawson. “By working together to hold these individuals accountable for their actions, we have taken a significant step to level the playing field for companies and consumers.”
In November 2017, Mace and Zubiate each pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to bribe foreign government officials in Brazil, Angola and Equatorial Guinea.
According to admissions made in connection with his plea agreement, Mace acknowledged that prior to his becoming CEO, other employees of SBM entered into an agreement to pay bribes to foreign officials including at Brazil’s state-controlled oil company, Petróleo Brasileiro S.A. (Petrobras); Angola’s state-owned oil company, Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol); and Equatorial Guinea’s state-owned oil company, Petroléos de Guinea Ecuatorial (GEPetrol). Mace admitted that he joined the conspiracy by authorizing payments in furtherance of the bribery scheme and deliberately avoided learning that those payments were bribes.
In particular, Mace maintained a spreadsheet reflecting payments to five individuals. Mace acknowledged that even though he was aware there was a high risk those individuals were Equatorial Guinean officials, he nevertheless authorized SBM to make over $16 million in payments to those individuals. Mace further continued a practice that was instituted before he became CEO by splitting payments to SBM’s Brazilian intermediary, that is, paying a portion of the intermediary’s commission to an account in Brazil and another portion of the agent’s commission to accounts in Switzerland held in the name of shell companies. Mace deliberately avoided learning that the ultimate recipients of the payments that he authorized to the shell companies were Petrobras officials, he admitted.
According to admissions made in connection with Zubiate’s plea, from between 1996 and 2012, Zubiate and others used a third-party sales agent to pay bribes to foreign officials at Petrobras in exchange for those officials’ assisting SBM and SBM USA with winning lucrative offshore oil projects from Petrobras. Zubiate also admitted engaging in a kickback scheme with the bribe-paying sales agent for SBM and its SBM USA.
In November 2017, SBM entered into a $238 million dollar, three-year deferred prosecution agreement with the United States over its role in the conspiracy, while its subsidiary, SBM USA, pleaded guilty to one count of conspiracy to violate the FCPA.
HSI and IRS Criminal Investigation investigated the case. Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Department of Justice is grateful to Brazil’s Ministério Público Federal, the Netherlands Public Prosecution Service and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Oil Services CEO and Executive Sentenced for Roles in Foreign Bribery SchemeRead the Press Release
HOUSTON - A former CEO and former executive of an oil services company were sentenced to prison today for their involvement in an international bribery conspiracy.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Anthony “Tony” Mace, 66, of the United Kingdom was the former CEO of SBM Offshore N.V. (SBM), a Dutch oil services company and a former Board Member of SBM’s U.S.-based subsidiary, SBM Offshore USA Inc. (SBM USA). He was sentenced to serve 36 months in prison and ordered to pay a fine of $150,000. Robert Zubiate, 66, of Agoura Hills, California, a former sales and marketing executive at SBM USA, was sentenced to 30 months in prison and ordered to pay a $50,000 fine.
“Pursuing corrupt companies and individuals who misuse our financial system to commit FCPA violations represents our commitment to keeping the integrity of American democracy in place both here and abroad,” said Patrick. “We will continue to prosecute such cases involving wrongdoing for corporate crimes and greed.”
“Anthony Mace and Robert Zubiate played key roles in a massive bribery scheme that involved the payment of millions of dollars to public officials in exchange for lucrative oil-services contracts,” said Benczkowski. “Their actions rewarded corrupt officials’ greed and tilted the playing field against honest, law-abiding companies. Today they paid a heavy price for their crimes. Their sentences should serve as a warning to corporate executives everywhere: if you pay bribes to advance your business interests, we will catch you and we will prosecute you to the fullest extent of the law.”
“This case is a prime example of HSI’s enduring commitment to work closely with our foreign law enforcement partners to track down those who seek to gain an unfair competitive advantage in the international marketplace,” said Dawson. “By working together to hold these individuals accountable for their actions, we have taken a significant step to level the playing field for companies and consumers.”
In November 2017, Mace and Zubiate each pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to bribe foreign government officials in Brazil, Angola and Equatorial Guinea.
According to admissions made in connection with his plea agreement, Mace acknowledged that prior to his becoming CEO, other employees of SBM entered into an agreement to pay bribes to foreign officials including at Brazil’s state-controlled oil company, Petróleo Brasileiro S.A. (Petrobras); Angola’s state-owned oil company, Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol); and Equatorial Guinea’s state-owned oil company, Petroléos de Guinea Ecuatorial (GEPetrol). Mace admitted he joined the conspiracy by authorizing payments in furtherance of the bribery scheme and deliberately avoided learning that those payments were bribes.
In particular, Mace maintained a spreadsheet reflecting payments to five individuals. Mace acknowledged that even though he was aware there was a high risk those individuals were Equatorial Guinean officials, he nevertheless authorized SBM to make over $16 million in payments to those individuals. Mace further continued a practice that was instituted before he became CEO by splitting payments to SBM’s Brazilian intermediary, that is, paying a portion of the intermediary’s commission to an account in Brazil and another portion of the agent’s commission to accounts in Switzerland held in the name of shell companies. Mace deliberately avoided learning the ultimate recipients of the payments that he authorized to the shell companies were Petrobras officials, he admitted.
According to admissions made in connection with Zubiate’s plea, from between 1996 and 2012, Zubiate and others used a third-party sales agent to pay bribes to foreign officials at Petrobras in exchange for those officials’ assisting SBM and SBM USA with winning lucrative offshore oil projects from Petrobras. Zubiate also admitted engaging in a kickback scheme with the bribe-paying sales agent for SBM and its SBM USA.
In November 2017, SBM entered into a $238 million dollar, three-year deferred prosecution agreement with the United States over its role in the conspiracy, while its subsidiary, SBM USA, pleaded guilty to one count of conspiracy to violate the FCPA.
HSI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady and Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Department of Justice is grateful to Brazil’s Ministério Público Federal, the Netherlands Public Prosecution Service and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Off-Duty Border Patrol Agent Pleads Guilty to Starting 2017 Sawmill Fire and Agrees to Pay More Than $8 Million in RestitutionRead the Press Release
TUCSON, Ariz. – Today, Dennis Dickey, 37, of Tucson, Ariz., pleaded guilty to a misdemeanor violation of U.S. Forest Service regulations for igniting the Sawmill Fire, which caused more than $8 million worth of damage in April 2017. The Court scheduled a sentencing hearing for October 9, 2018.
On April 23, 2017, near Green Valley, Ariz., U.S. Border Patrol Agent Dickey, who was off-duty at the time, ignited a fire that spread to Coronado National Forest, federal land administered by the U.S. Forest Service. This fire was referred to as the “Sawmill Fire.” Dickey started the fire by shooting a rifle at a target. Dickey had placed Tannerite, a highly explosive substance, inside the target, intending for it to detonate when shot by a high-velocity firearm bullet. Dickey fired shots at the Tannerite target, ultimately causing an explosion that started a fire that spread and resulted in damage to more than 45,000 acres of land managed by the State of Arizona, the U.S. Forest Service, the Bureau of Land Management, and various private landholders. Dickey immediately reported the fire to law enforcement, cooperated, and admitted that he started the fire. The total losses attributable to the fire, including suppression costs and damage to land and landholdings, totaled more than $8 million.
In his plea agreement, Dickey agreed to a sentence of five years’ probation, and to make a public service announcement with the U.S. Forest Service concerning the cause of the Sawmill fire. Dickey agreed to pay restitution totaling $8,188,069. Dickey also agreed to make an initial payment of $100,000 toward the restitution judgment and monthly payments thereafter.
The investigation in this case was conducted by the U.S. Forest Service. The prosecution was handled by the U.S. Attorney’s Office for the District of Arizona, Tucson.
CASE NUMBER: 18-MJ-03295-DTF
RELEASE NUMBER: 2018-123_Dickey
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
North Las Vegas Man Charged for Kidnapping and Sexually Exploiting A 14-Year-Old Arizona GirlRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas man who kidnapped a girl in Bullhead City, Arizona, then repeatedly sexually assaulted her at his house in North Las Vegas where he held her hostage for approximately one month, had his initial court appearance today, announced U.S. Attorney Dayle Elieson and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office.
Jimmy Carter Kim, 29, was arrested and appeared before U.S. Magistrate Judge Carl Hoffman. He is charged by a criminal complaint with one count of kidnapping, one count of sexual exploitation of children, and one count of possession of child pornography.
As alleged in the complaint, between November 1, 2015 and December 3, 2015, Kim offered a ride to and kidnapped a 14-year-old girl who was walking down the street in Bullhead City, Arizona. He drugged her, then drove her to his house in North Las Vegas, where he locked her in a bedroom. Kim repeatedly sexually assaulted her and took photos of the assaults with his iPhone. He also threatened to shoot her with a firearm if she attempted to leave the house. On about December 3, 2015, she was able to escape from the bedroom and contact law enforcement.
Based on the victim’s description of the suspect and the house, detectives with the North Las Vegas Police Department were able to identify and interview Kim. During a forensic examination of his iPhone, numerous images and videos of child pornography produced by Kim were found.
A preliminary hearing is scheduled for October 12, 2018. The maximum statutory penalty is life in prison and a $250,000 fine.
If you have information regarding Jimmy Kim, please contact the nearest FBI field office or local law enforcement. To remain anonymous, call Crime Stoppers at (702) 385-5555 or visit www.crimestoppersofnv.com, or contact the National Center for Missing & Exploited Children Cyber Tipline at www.cybertipline.org.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the FBI with assistance by the North Las Vegas Police Department. Assistant U.S. Attorneys Elham Roohani and Christopher Burton are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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North Adams Man Charged with Child ExploitationRead the Press Release
BOSTON - A North Adams man was charged in federal court in Springfield yesterday with child exploitation offenses.
Anthony K. Deordio, 43, was charged with one count of sexual exploitation of a minor, one count of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. Deordio is currently in state custody on related charges. He will appear in federal court in Springfield at a later date.
Between November 2017 and March 2018, Deordio is alleged to have used a child to produce child pornography and distribute, receive and possess child pornography.
The charge of sexual exploitation of a minor provides for a minimum of 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release, and a fine of $250,000. The charges of receipt and distribution of child pornography each provide for a minimum of five years and up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a $250,000. The charge of possession of child pornography provides for a sentence of no greater than 10 years in prison, at least five years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and North Adams Police Director Michael Cozzaglio made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nicholasville Men Sentenced for Social Media Threats Related to School Shooting HoaxRead the Press Release
LEXINGTON, Ky. – Two Nicholasville, Ky., men were sentenced today for using social media to harass and intimidate an acquaintance, with threats of a prospective shooting at a Jessamine County school.
United States District Judge Danny C. Reeves sentenced 18-year-old Tristan H. Kelly to 21 months in federal prison and 19-year-old Cody T. Ritchey to 27 months in federal prison. Kelly and Ritchey each pled guilty, in June 2018, to one count of cyberstalking. Kelly and Ritchey both admitted that they had worked together to create a Snapchat profile on February 17, 2018, using the name and picture of a third person who did not know about their actions. Kelly and Ritchey then used the profile to publish a series of posts suggesting that this third individual would use firearms to attack a Jessamine County public school, in February 2018. Among other posts, Kelly and Ritchey made references to the shooting that had occurred at Marjory Stoneman Douglas High School in Parkland, Florida, only days earlier.
Kelly and Ritchey also admitted that they used this Snapchat profile to send direct messages to K.S., an acquaintance of the two. Among other messages, Kelly and Ritchey told K.S. “you’re the reason im killin everybody make it stop,” and “send nudes and ill let you live.” As part of their plea agreements, Kelly and Ritchey both admitted that they understood these messages could reasonably be expected to cause substantial emotional distress.
Law enforcement immediately investigated the threats, identified Kelly and Ritchey as the source, and determined that the threats were a hoax.
“The defendants’ conduct was extremely serious, as reflected in the sentences imposed today by the Court,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “I commend the efforts of, and cooperation between, the local and federal law enforcement officers involved in the investigation. The defendants’ callous and alarming conduct, coming only days after the Stoneman Douglas High School shooting in Parkland, Florida, needlessly put people in fear of a similar tragedy and expended precious law enforcement resources. Deterring this type conduct is critical and we will continue to make that a priority for our Office.”
Under federal law, Kelly and Ritchey must each serve 85 percent of their prison sentences. Upon their release, they will each be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Todd Justice, Chief of the Nicholasville Police Department, jointly announced the indictment. The investigation preceding the indictment was conducted by the Nicholasville Police Department and the Federal Bureau of Investigation. The United States was represented by Assistant U.S. Attorney Andrew Boone.
New Orleans Man Pleads Guilty to Seven Counts of Firearms and Narcotics ChargesRead the Press Release
U.S. Attorney Peter G. Strasser announced that TERRANCE MORGAN, age 27, of New Orleans, has pleaded guilty to federal firearms and narcotics violations.
According to court documents, MORGAN, a convicted felon, possessed firearms on four separate occasions between 2014 and 2017, in violation of Title 18, United States Code, Section 922(g). On January 13, 2017, MORGAN also possessed with the intent to distribute a synthetic opioid known as “U-47700,” in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), and possessed three firearms in furtherance of a drug trafficking crime on the same date. MORGAN also conspired with others to possess firearms in furtherance of a conspiracy to sell heroin.
The Court set sentencing in this matter for January 10, 2019. MORGAN faces, as to count two of the indictment, a maximum term of imprisonment of 20 years, a fine of $250,000, up to three years of supervised release after imprisonment, and a $100 special assessment. As to each of counts three through six, MORGAN faces, as to each count, a maximum term of imprisonment of 10 years, a fine of $250,000, up to three years of supervised release after imprisonment, and a $100 special assessment. As to count seven, MORGAN faces a maximum term of imprisonment of 20 years, a fine of $1,000,000, at least 3 years of supervised release after imprisonment, and a $100 special assessment. As to count eight, MORGAN faces a minimum of 5 years and a maximum of 20 years of imprisonment, up to 5 years supervised release after imprisonment, a fine of $250,000, and a $100 special assessment.
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.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the New Orleans Police Department, and the Louisiana State Police in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne.
New Jersey Attorney Admits Role in Multimillion-Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A New Jersey attorney today admitted running a large-scale mortgage fraud scheme that involved properties in Jersey City, Clifton, Union, and elsewhere in New Jersey and caused losses of millions of dollars, U.S. Attorney Craig Carpenito announced.
Christopher Goodson, 45, of Newark, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud.
According to the documents filed in this case and statements made in court:
From January 2011 through August 2017, Goodson, his co-defendant, Anthony Garvin, and others engaged in a short sale mortgage fraud conspiracy targeting various New Jersey properties with mortgages that were in default.
The conspirators arranged simultaneous fraudulent transactions on the same target property. In the first transaction, which involved the sale by the current owner, the conspirators convinced the financial institution holding the mortgage to accept the sale of the target property at a loss, usually to a buyer who was secretly a conspirator or an entity controlled by the conspiracy.
In the second transaction, the conspirators flipped the same target property from the first buyer to a second buyer, who typically obtained a mortgage from another financial institution using false loan applications, pay stubs, bank account statements and title reports provided by members of the conspiracy. As a result, the second transaction frequently closed for significantly more or even double the price of the first transaction.
Goodson admitted that he, Garvin, and others rigged the short sale process at each step in order to maximize the difference in price between the two transactions and keep the victim financial institutions from detecting the fraud.
For instance, Goodson concealed the fact that he played multiple roles in the short sale transactions, including allegedly generating false pre-approval letters from a New Jersey corporation he owned that purported to be a short-term lending company operating out of California. These letters were used to deceive banks into believing that the purchaser – typically a conspirator or entity controlled by Goodson – had the credit necessary for the transaction. Goodson also negotiated the fraudulent short sales with the banks, generated phony deeds that backdated the closing date of the first transactions, and even served as the closing attorney during some of the short sales.
Garvin was a real estate agent and investor who allegedly coordinated fraudulent transactions as part of the scheme. The charge against him remains pending; he is considered innocent unless and until proven guilty.
The conspirators disbursed the funds into various accounts they controlled to conceal their illegal activities and split the profits. In total, the conspiracy defrauded financial institutions out of millions of dollars.
The conspiracy to commit bank fraud count is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Jan. 29, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark, postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and special agents of the Federal Housing Finance Agency (FHFA) – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark, with the investigation
The government is represented by Assistant U.S. Attorneys David Feder and Zach Intrater, Executive Assistant to the U.S. Attorney, in Newark.
Defense counsel: John C. Whipple Esq., Morristown, New Jersey
New Castle Woman Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH, PA - A resident of New Castle, PA, has been indicted by a federal grand jury in Pittsburgh on charges relating to Social Security fraud, United States Attorney Scott W. Brady announced today.
The three-count indictment, returned on September 27, names Shawna Stelter, age 36, as the sole defendant.
According to the indictment, Stelter received $26,917.55 in Supplemental Security Income benefits to which she knew she was not entitled. Stelter is also charged with knowingly and willfully making a false statement to, and concealing information from, the Social Security Administration, claiming that her household consisted solely of herself and her children, when in fact, her husband was also part of her household.
The law provides for a maximum total sentence of 20 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Social Security Administration, Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mobile County Man Sentenced to 36 Months for Illegal Possession of AmmunitionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Steven Glenn Miller, a 46 year old resident of Mobile, Alabama was sentenced to 36 months for illegal possession of ammunition after being convicted of seven felonies.
According to a factual statement Miller signed in connection with his guilty plea, on June 14, 2018, on March 19, 2018, Mobile County deputies were investigating the theft of a stolen trailer and an ATV. During the course of the investigation, Miller was arrested. A search of Miller’s person, incident to his arrest, located a magazine loaded with two bullets. Miller admitted that he put the bullets in his pocket. At that time, Miller had been convicted of seven felonies, namely, Felon in Possession of a Firearm on March 22, 2005, in the United States District Court, Southern District of Alabama; Possess/Receive Controlled Substance on July 9, 2015, in the Circuit Court of Mobile County, Alabama; Burglary Third Degree on July 9, 2014, in the Circuit Court of Mobile County, Alabama; Theft of property, First Degree on August 19, 2004, in the Circuit Court of Mobile County, Alabama; Breaking/Entering Vehicle on August 19, 2004, in the Circuit Court of Mobile County, Alabama; Theft of Property First Degree on August 19, 2004, in the Circuit Court of Mobile County, Alabama; Possess/Receive Controlled substance on December 9, 2012, in the Circuit Court of Mobile County, Alabama.
Michael Devane Overton Sentenced Following Guilty Plea to a Federal Firearm ChargeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Michael Devane Overton of Jackson, Alabama was sentenced to one year, and one day imprisonment. Overton’s sentencing followed entry of a May 2018 guilty plea to a charge of prohibited person in possession of a firearm. The sentence imposed by Chief United States District Court Judge Kristi K. Dubose was a variance from the advisory sentencing guideline range of 30-37 months. The term of imprisonment is to be followed by a three year term of supervised release with the first year to be served on home detention with location monitoring. During the term of supervised release, Overton is prohibited from having inappropriate contact with females by any means, and must provide access to check his internet devices at any time requested by his probation officer.
Overton’s guilty plea included his admission that he was committed to a mental institution, by Order of the Clarke County Probate Court in June 2013. In September 2017, the Mobile Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives began working with the Jackson, Alabama Police Department on an investigation of Overton’s July 2017, purchase of a 12 gauge shotgun from a local federal firearms licensee, and his subsequent attempt to purchase several other firearms. On September 22, 2017, a state search warrant was executed at Overton’s residence in Jackson. During the execution of the search warrant three firearms were recovered from his bedroom, along with firearm magazines and ammunition.Possession of a firearm by a prohibited person, in this instance an individual who has been previously committed to a mental institution, is a violation of Title 18, United States Code Section 922(g)(4).
This case arose from a referral by the Jackson, Alabama Police Department to the Mobile Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives who completed the investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Man receives life sentences in string of Walmart robberiesRead the Press Release
Indianapolis-United States Attorney Josh Minkler announced today that a Wynn, Arkansas, man was sentenced for his role in a robbery spree during the summer of 2016. Maurice Greer, 54, was sentenced by U.S. District Judge Sarah Evans Barker to three concurrent life sentences plus 32 years.
“Reducing violent crime remains a top priority in my office,” said Minkler. “Those who choose to terrorize our communities and use firearms to further their crimes will be held accountable. The court’s life sentence in this case reflects the seriousness of Mr. Greer’s actions and is representative of the community’s outrage with these types of violent acts.”
Between June and September of 2016, Greer, along with his cousin Christopher Davis, 46, his step-brother Darryl Williams, 49, Tyrone Townsell, 47, and former Walmart employee Deidre Orkman, 52, conspired to rob the Walmart on West 10th Street in Indianapolis twice, and the Kokomo Walmart once. In each of the robberies a firearm was brandished and Walmart employees were bound with zip ties and duct tape. In total, the group netted nearly $250,000 from the three robberies.
Davis, Greer, and Townsell were arrested in Indianapolis several hours after the September 14, 2016, Kokomo Walmart robbery. Nearly $100,000 in cash was recovered from the vehicle they were riding in at the time of their arrest, and during a subsequent search of Davis’ apartment on Kennedy Lane in Indianapolis.
Four of the six members of the conspiracy pled guilty and testified against Davis and Greer, who were convicted on all counts at trial in March 2018. Greer was the last member of the conspiracy to be sentenced by Judge Barker.
The other sentences imposed by Judge Barker were:
- May 11, 2018, Darryl Williams was sentenced to 300 months (25 years) imprisonment, 3 years of supervised release, and ordered to pay $34,032 in restitution;
- June 7, 2018, Tyrone Townsell was sentenced to 188 months (15 years) imprisonment, 3 years of supervised release, and ordered to pay $90,000 in restitution;
- June 14, 2018, Deidre Orkman (former Walmart Assistant Manager) was sentenced to 36 months imprisonment, 2 years of supervised release, and ordered to pay $93,000 in restitution;
- June 22, 2018, Fontella Pearson (Davis’ wife) was sentenced to 9 months of probation after she was convicted of lying under oath in an effort to exonerate Davis.
- July 17, 2018, Christopher Davis was sentenced to 684 months (57 years) imprisonment, 5 years of supervised release, and ordered to pay $138,066.02 in restitution.
According to Assistant United States Attorneys Matthew J. Rinka and Bradley P. Shepard, who prosecuted this case for the government, Greer was also sentenced to an additional, concurrent, 15 year term of imprisonment for possession of a firearm by a felon, and ordered to pay $138,066.02 in restitution to Walmart.
This case was jointly investigated by the Indianapolis Metropolitan Police Department Commercial Robbery Unit and the FBI Violent Crimes Task Force, with assistance from the Kokomo Police Department.
“The joint investigation and prosecution led to this stiff federal sentence. The hard work and dedication of the agents and Task Force Officers of the FBI's Violent Crimes Task Force goes to the heart of our mission,” said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division. “We continue to prioritize aggressive investigations targeting serious violent offenders who use weapons to commit these crimes.”
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who commit violent crimes involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3
Man Sentenced to 108 Months in PrisonRead the Press Release
HAMMOND – Jorge Esqueda, 24, of East Chicago, Indiana, was sentenced by U.S. District Court Judge Philip Simon after pleading guilty to racketeering conspiracy, announced U.S. Attorney Kirsch.
Esqueda was sentenced to 108 months in prison.
According to documents in the case, Esqueda entered a guilty plea for conspiracy to participate in racketeering activity for his role and participation in the Latin Kings Street Gang. As part of his plea agreement, Esqueda admitted that, as a member of the Latin Kings, he was a manager or supervisor of criminal activity, that he was responsible for between 3.5 and 5 kilograms of cocaine as drug weight relevant conduct, and that he possessed a firearm in connection with his offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office has also provided assistance. The Latin King case is being prosecuted by Assistant U.S. Attorneys David J. Nozick and Dean Lanter of the Northern District of Indiana along with the Department of Justice Trial Attorney Joseph Cooley.
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Man Sentenced for Coercion and Enticement of MinorRead the Press Release
ALEXANDRIA, Va. – A Florida man was sentenced today to 10 years in prison for using Kik, an instant messaging mobile application, to coerce and entice a minor.
According to court documents, in late 2016, Anthony C.A. Martin, 27, of Pensacola, began communicating via Kik with a 15 year-old female living in Alexandria. In March 2017, over Kik, they discussed Martin traveling from Ohio, where he was living at the time, to Virginia to have sexual intercourse with the minor victim and then transport her back to Ohio. Days later, Martin met the minor victim in a room at a hotel in Alexandria, where the two had sex before driving to Ohio. There, Martin used Kik to ask the minor victim to send him explicit photographs and videos. Later in June 2017, after the minor victim had returned to Virginia, Martin again traveled to Alexandria, where he met the minor victim at a different hotel and recorded their sexual encounter with his cell phone and without the minor victim’s consent.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Michael L. Brown, Alexandria Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Alexander E. Blanchard and Kellen S. Dwyer prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are 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-238.
Man Pleads Guilty to Aiming Laser Pointer at Two Commercial AircraftRead the Press Release
ALEXANDRIA, Va. – A Marshall man pleaded guilty yesterday to aiming the beam of a laser pointer at two aircraft in flight.
According to court documents, Nicholas Pifer, 45, struck the cockpit of two commercial aircraft with the beam of a laser pointer. Both aircraft were in the process of landing at Washington Dulles International Airport, but managed to land safely. All four pilots reported seeing the cabin illuminated with a green light.
Pifer pleaded guilty to one count of aiming a laser pointer at an aircraft and faces a maximum penalty of five years in prison when sentenced on December 21, 2018. 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, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Michelle McVicker, Principal Assistant Inspector General for Investigations at the U.S. Department of Transportation, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney David A. Peters and Special Assistant U.S. Attorney Evan Clark are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-282.
Man Charged with Violations of Federal Gun Control Act, Federal Narcotics Laws, and Obstruction of JusticeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that KENDALL BARNES, age 22, of Chalmette, was charged in a five-count indictment on September 27, 2018 by a federal grand jury.
The Indictment charges BARNES, a convicted felon, with two counts of felon in possession of a firearm. If convicted of these charges, BARNES faces a term of imprisonment of up to 10 years, a fine of up to $250,000, and up to three years of supervised release.
The Indictment charges BARNES with possession with intent to distribute heroin. If convicted of this count, BARNES faces a term of imprisonment of 20 years, a fine of up to $1 million, and at least three years of supervised release.
The Indictment also charges that BARNES was in possession of a firearm in furtherance of a drug trafficking crime. If convicted of this count, BARNES faces a term of imprisonment of 5 years to life, a fine of $250,000, and up to five years of supervised release.
Additionally, the Indictment charges BARNES with obstruction of justice. If convicted of this count, BARNES could face up to 10 years of imprisonment, a fine of $250,000, and up to three years of supervised release.
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.
U.S. Attorney Strasser reiterated than an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation New Orleans Violent Crimes Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
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Maine Woman Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Shannon Battle, 39, of Bangor, Maine pleaded guilty in federal court on Thursday to participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on July 20, 2017, a New Hampshire State Police trooper patrolling I-95 stopped a vehicle in which Battle was a passenger, for operating with a defective center brake light. Troopers ultimately discovered that the defendant was concealing a large package of suspected narcotics on her person. The package was later found to contain 131 grams of fentanyl. During questioning, the defendant admitted to having travelled to Waterbury, Connecticut to pick up the fentanyl, which she was transporting to sell in the Bangor, Maine area.
Battle is scheduled to be sentenced on January 2, 2019.
“Those who bring fentanyl into New Hampshire should expect that they will be prosecuted,” said U.S. Attorney Murray. “We will continue to do all that we can to stop the flow of this deadly drug into the Granite State. I want to thank the New Hampshire State Police for preventing this fentanyl from being distributed.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Louisville Man Sentenced for Attempted Distribution of Obscene Material to a MinorRead the Press Release
LOUISVILLE, Ky. – U.S. District Judge Claria Horn Boom sentenced Scott Louis Craven to 48 months in federal prison followed by 20 years of Supervised Release this week for distribution of obscene material to a person he believed to be a 15-year-old girl, announced United States Attorney Russell M. Coleman. Craven will be required to register as a sex offender upon his release from prison.
According to court records and the plea agreement, during April 2017, an investigator with the Kentucky Attorney General’s Office – Department of Criminal Investigations conducted an online undercover investigation. During that investigation, the investigator (in his undercover capacity), was contacted by Craven while both were using the social media platform KIK. The investigator identified himself as a 15-year-old girl from Louisville. During the online conversations, particularly on April 28, 2017, Craven sent the undercover investigator nude images of himself along with sexually graphic videos.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Office of Attorney General’s Department of Criminal Investigations conducted the investigation with assistance from the Louisville Metro Police Department and the United States Secret Service.
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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.
Lending Club Agrees to Pay $2 Million Penalty to Resolve Investigation into Its Lending PracticesRead the Press Release
lendingclub_settlement_agreement.pdf SAN FRANCISCO – Peer-to-peer lending company LendingClub Corporation of San Francisco, Calif., has agreed to pay a civil penalty of $2 million to resolve allegations that it violated the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), announced United States Attorney Alex G. Tse, Special Agent in Charge John F. Bennett of the Federal Bureau of Investigation San Francisco Field Office, and Federal Deposit Insurance Corporation (FDIC), Office of Inspector General Special Agent in Charge Wade V. Walters.FIRREA authorizes the federal government to seek civil penalties against companies and individuals that violate various predicate criminal offenses affecting federally insured financial institutions, including false statements to financial institutions, bank fraud, and wire fraud. In this case, the United States alleged that from January 2009 to September 2010, LendingClub made misrepresentations to its FDIC-insured loan originator, WebBank. Further, the United States alleged that due to Lending Club’s misrepresentations, WebBank originated over 200 loans to borrowers who did not satisfy WebBank’s credit requirements. The government alleged that LendingClub made these misrepresentations fraudulently to increase the volume of loans available for investment on its platform and to meet its monthly loan origination goals.
“As technology continues to provide more creative means for financial transactions, so, too, must financial technology companies be careful to abide by the rules that ensure stability and fairness in these emerging markets.” said U.S. Attorney Tse. “We will vigorously investigate wrongful conduct in this industry.”
“The FBI is committed to protecting the American people by investigating violations of law by all entities, including financial institutions,” said Special Agent in Charge John F. Bennett of the FBI San Francisco Division, “The FBI prioritizes combatting white-collar crime and will not tolerate any business or institution that engages in false representation for their own benefit and does not abide by the law."
“This settlement shows that allegations of misconduct to advance personal or corporate goals will be vigorously investigated and pursued,” said FDIC OIG Special Agent in Charge Wade Walters. “Law enforcement agencies worked together to address these allegations and obtain a settlement in the pursuit of justice.”
The settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the Northern District of California and the Securities and Exchange Commission, with investigative support from the FBI and FDIC-OIG. Assistant U.S. Attorney Kimberly Friday is handling the matter on behalf of the U.S. Attorney’s Office for the Northern District of California, with substantial assistance provided by Assistant U.S. Attorney Lila Bateman from the U.S. Attorney’s Office for the District of Colorado and Assistant U.S. Attorney Michael Sew Hoy from the U.S. Attorney’s Office for the Central District of California.
The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Kalispell Regional Healthcare System to Pay $24 Million to Settle False Claims Act AllegationsRead the Press Release
Montana-based Kalispell Regional Healthcare System (KRH) along with six subsidiaries and related entities – Kalispell Regional Medical Center (KRMC), HealthCenter Northwest LLC (HealthCenter), Flathead Physicians Group LLC (Flathead), Northwest Horizons LLC (NH), Northwest Orthopedics & Sports Medicine LLC (NOSM), and Applied Health Services Inc. (AHS), (collectively, “KRH entities”) – have agreed to pay $24 million to resolve allegations that they violated the False Claims Act by paying physicians more than fair market value, and by conspiring to enter into arrangements that improperly induced referrals, the Department of Justice announced today.
“Financial arrangements that improperly compensate physicians who make referrals to a hospital drive up the cost of health care services for everyone,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “This settlement demonstrates the Department’s determination to enforce federal laws aimed at preventing conflicts of interest between the financial interests of hospitals and physicians and the best interests of the patients they serve.”
The government alleged that the KRH entities had arrangements with referring physicians that violated the Medicare physician self-referral prohibition, commonly known as the Stark Law, and other arrangements that also violated the Anti-Kickback Statute. The Stark Law prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper compensation arrangement. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based only on the best interests of the patient.
Between 2010 and 2018, the KRH entities allegedly violated the Stark Law by paying excessive full-time compensation to more than 60 physician specialists – many of whom worked far less than full-time. Additionally, HealthCenter, Flathead, NH, NOSM, and AHS allegedly conspired to violate the Anti-Kickback Statute by paying excessive compensation to physicians employed by KRH, KRMC, and other KRH entities to induce referrals to HealthCenter, and by providing administrative services to HealthCenter at below fair market value to reduce expenses and increase profits distributed to physician investors at Flathead, an owner of HealthCenter, also to induce referrals to HealthCenter.
“Quality healthcare is a critical need of all Montanans, but paying extra to physicians to induce referrals improperly raises the cost of that healthcare and must stop,” said United States Attorney for the District of Montana Kurt Alme. “I would like to thank the team that worked hard to bring this to a quick and successful resolution, which is the largest False Claims Act recovery in the District of Montana, including members of the U.S. Department of Justice and U.S. Attorney’s Office, as well as agents with the Department of Health and Human Services-Office of Inspector General and the Federal Bureau of Investigation.”
“Our office will continue to focus our efforts on those who make improper payments to physicians for the purpose of inducing referrals in order to ensure the integrity of HHS programs,” said Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Kansas City Region.
The settlement resolves allegations originally brought in two lawsuits filed by Jon Mohatt, a former Chief Financial Officer for KRH’s Physicians Network, under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower will receive $5,411,521 million as his share of the recovery in the two consolidated cases.
The case was handled by the U.S. Attorney’s Office for the District of Montana, the Justice Department’s Civil Division, and the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
The lawsuits are captioned United States ex rel. Mohatt v. Kalispell Regional Healthcare System et al., Civ. No. 16-125 and United States ex rel. Mohatt v. HealthCenter NW, LLC et al., Civ. No. 18-80, and are consolidated under Civ No. 18-80. The claims settled by this agreement are allegations only; there has been no determination of liability.