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26 September 2018
Corson County Man Sentenced to 57 Months for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that Adrian Bryce Spotted Horse, Sr., age 39, of Wakpala, South Dakota, was sentenced to 57 months in federal prison for his conviction of Domestic Assault by an Habitual Offender.
U.S. District Judge Charles B. Kornmann pronounced the sentence in federal court in Aberdeen, South Dakota. Spotted Horse was also ordered to serve three years of supervised release after his release from prison and to pay a $100 special assessment to the Federal Crime Victims Fund.
According to court filings, Spotted Horse unlawfully committed a domestic assault upon his domestic partner, when at the time of the assault he had a final conviction on at least two separate prior occasions, for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or an intimate partner. As a result of Spotted Horse’s criminal conduct, the victim sustained injuries and received medical treatment. This assault took place in March 2018.
The investigation is being conducted by the Bureau of Indian Affairs-Office of Justice Services. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Spotted Horse was immediately remanded to custody to continue serving his sentence.
Company Owner, Employee, Charged with Falsely Certifying Bridge Inspection Vehicles, Related OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that that, on September 5, 2018, a federal grand jury in Hartford returned a superseding indictment charging DANIEL McCLAIN, 65, of Spotsylvania, Virginia, and KENNETH MIX, 60, of Ebensburg, Pennsylvania, with federal offenses related to the false certification of bridge inspection vehicles.
McClain and Mix appeared today in Hartford federal court and entered pleas of not guilty to the charges.
According to the superseding indictment, Under Bridge Inspection (“UBI”) vehicles are vehicles that contain a moveable boom with a platform. The vehicles are used to conduct inspections of bridges by positioning the vehicle on top of the bridge and, using the boom, lifting a platform carrying inspectors alongside or beneath a bridge deck. “Company A” rents or leases bridge access equipment, including UBI vehicles, to engineering companies and government agencies for use on bridge inspection and bridge maintenance projects. Company A’s UBI vehicles travel on interstate highways to job locations throughout the U.S. Company A has several locations, including one in Connecticut.
McClain is the sole owner and president of Company A, and Mix is an employee of the company. The indictment alleges that, between approximately January 2012 and January 2015, McClain and Mix participated in the creation of false or fictitious Certificates of Unit Test/Examination of Material Handling Device for the UBI vehicles in Company A’s fleet. The Certificates, which were provided to an investigator for the Occupational Safety and Health Administration (“OSHA”), represented that a UBI vehicle was examined and that the examination met federal requirements when McClain and Mix knew that, in fact, an examination was not conducted as set forth on the Certificates.
In addition, the indictment alleges that McClain falsified records in a federal investigation when he submitted an internal investigation report with false statements relating to a fatal accident that occurred on August 26, 2015. McClain also transmitted false and fraudulent documentation to the Connecticut Department of Transportation in order to persuade officials to lift a moratorium preventing Company A from doing business in Connecticut while an investigation was conducted.
The indictment charges McClain and Mix with two counts of use of a false document, an offense that carries a maximum term of imprisonment of five years on each count. The indictment also charges McClain with one count of falsifying records in a federal investigation, an offense that carries a maximum term of imprisonment of 20 years, and two counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count.
McClain and Mix are released pending trial.
Mix was originally charged in an indictment that was returned on March 6, 2018.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Transportation – Office of Inspector General and the U.S. Department of Labor – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Chesterfield Man Convicted of Attempted Sex Trafficking of a ChildRead the Press Release
RICHMOND, Va. – A federal jury convicted a Chesterfield County man today on charges of attempted sex trafficking of a minor, receipt of child pornography, and possession of child pornography.
According to court records and evidence presented at trial, Richard Todd Haas, 48, attempted to use a prostitute he knew to help him obtain young girls to sexually molest and produce child pornography, which he then intended to sell for a profit. Haas first met the prostitute in 2012 on the now-defunct website Backpage.com, and they got together several times for sex that year. They lost touch but reconnected in May 2016, again through Backpage. The woman visited Haas at his Chesterfield home to provide sexual services, and during that visit, Haas shared with her his desire to have sex with children. Haas showed her child pornography on his laptop, and asked her if she had access to any young girls because they could produce child pornography together and make a lot of money. The woman feigned interest in the defendant’s proposal, but instead of actually participating in the plan, she notified the FBI.
Working in conjunction with FBI investigators, the woman stayed in contact with Haas via phone and text, and informed the defendant she had access to both an 8-year-old and 12-year-old girl living in Baltimore, Maryland. The woman obtained incriminating text messages and recorded conversations during which the defendant used evasive language about the plan and told the woman to refer to the age of the children as shoe sizes.
The FBI’s undercover investigation was cut short in August 2016, shortly after the last recorded call between the woman and Haas, when investigators received information that Haas had recently sexually molested an 11-year-old girl in Chesterfield. Federal investigators executed a search warrant on the defendant’s home and business on September 1, 2016, seizing among other things the defendant’s laptop. A forensic examination of the defendant’s laptop revealed more than 7,000 images and movies of child pornography involving child victims whose identities are known, as well as many more child pornography images and movies involving unidentified victims.
Haas faces a mandatory minimum of 15 years and a maximum possible punishment of life imprisonment when sentenced on December 6, 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, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Senior U.S. District Judge Robert E. Payne accepted the verdict. Assistant U.S. Attorneys Brian R. Hood and Heather H. Mansfield are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-139.
Cherry Creek Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Cherry Creek, South Dakota, man convicted of Assault With a Dangerous Weapon was sentenced on September 24, 2018, by U.S. District Judge Roberto A. Lange.
Dana Marshall, age 32, was sentenced to 46 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Marshall was indicted by a federal grand jury on February 14, 2018. He pled guilty on June 25, 2018.
The conviction stemmed from an incident on December 11, 2017, when Marshall had been drinking and became upset with two individuals and grabbed a wooden rod which was wrapped in black electrical tape, with a knife blade attached on one end by a hose clamp. Marshall struck the first victim in the face with the wooden rod. He also kicked her. When the second victim attempted to intervene, Marshall shoved the first victim down, and turned on the second victim. Marshall then started to hit the second victim with the wooden rod, and also kicked her. Marshall was holding the second victim against the wall hitting her. Marshall held the stick and began jabbing the second victim with the end of the wooden rod with the knife on it. He would not let either victim leave the room. Other people in the house contacted law enforcement. When law enforcement arrived, both victims were covered with blood, and there was also blood on the walls and the bed. Both victims with were taken by ambulance to the hospital and received medical attention.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Marshall was immediately turned over to the custody of the U.S. Marshals Service.
Brooklyn Man, Banned for Life from Commodities Trading, Indicted for Defrauding InvestorsRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Yehuda Belsky, also known as “Jay Bell,” the owner of Brooklyn-based Y Trading, LLC, with mail fraud, failure to register as a commodities trading advisor, and misappropriation of customer funds. Belsky was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Steven L. Tiscione.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James McDonald, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), announced the charges.
According to the indictment, in 2008 Belsky was permanently barred by the CFTC from trading in commodity futures transactions and options. Nonetheless, from March 2014 to June 2018 Belsky presented himself as an experienced commodities trader and promised investors he would invest their money in binary options, a type of investment in which investors are promised an opportunity to be paid predetermined amounts based upon the particular price of securities, commodities or other investments at particular points in time. Belsky further enticed investors by showing them fraudulent monthly account statements from the North American Derivatives Exchange that purported to show his successful history of commodities trading. Instead, he stole the investors’ money for his personal use and to repay other customers who he had fraudulently induced to trust him with investment funds.
“As alleged in the indictment, Belsky lured commodities investors with false promises of his trading success, and then betrayed them by embezzling their money,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, is committed to vigorously investigating and prosecuting those who seek to use commodities markets as a means to illegally enrich themselves at the expense of investors.”
“Investors often turn to an advisor when they don’t know the ins and outs of the market trusting that the advisor will honestly assist investing their money. Unfortunately, that was not the case with Mr. Belsky who was already barred from trading, but nevertheless allegedly continued to defraud unsuspecting investors,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI and our law enforcement partners investigate cases each day hoping to stop the next scheme from impacting investors who have to put faith in traders.”
“This action shows the CFTC’s continued commitment to working in parallel with our law enforcement partners to identify, investigate, and hold accountable bad actors in our markets,” stated CFTC Director McDonald.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of mail fraud, Belsky faces up to 20 years’ imprisonment.
The government’s case is being prosecuted by Trial Attorney Sarah Wilson Rocha of the Criminal Division’s Fraud Section under the supervision of the United States Attorney’s Office for the Eastern District of New York’s Business and Securities Fraud Section.
The Defendant:
YEHUDA BELSKY (also known as “Jay Bell”)
Age: 46
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-504 (ARR)
Bradford County Man Sentenced to 144 Months for Benefitting for Child Sex TraffickingRead the Press Release
GAINESVILLE, FLORIDA – Rajheem Kwamaine Roddey, 24, of Starke, Florida, was sentenced today to 144 months in prison after pleading guilty on June 5, 2018, to benefitting financially from child sex trafficking. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
On November 8, 2017, co-defendant Bailegh Noelle Coleman, 21, of Starke, pled guilty to child sex trafficking and is scheduled to be sentenced on November 26. On February 20, 2018, co-defendant Laney Ellis, 21, also of Starke, pled guilty to child sex trafficking and is scheduled to be sentenced on October 29.
Between April and June 2017, Roddey, Coleman, and Ellis were involved in a scheme to make money using a 14-year-old female to perform sex acts. Advertisements were created of the victim under the false name “Emily” and then posted on Backpage.com. The advertisements were posted in a section for “escort services,” when they were actually to offer the victim for commercial sexual activity. Roddey, Coleman, and Ellis profited from the commercial sexual activity.
The case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the FBI Safe Streets Task Force, which includes the Alachua County Sheriff’s Office and the Gainesville Police Department. Assistant United States Attorney Frank Williams prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Behavioral Counselor Sentenced for Fraudulent Medicaid BillingRead the Press Release
OKLAHOMA CITY – JOHN CLARENCE BRADLEY, 49, of Oklahoma City, has been sentenced to 24 days of weekend jail confinement and five years of probation for defrauding Medicaid, announced Robert J. Troester of the U.S. Attorney’s Office and Oklahoma Attorney General Mike Hunter.
A federal grand jury returned a 101-count indictment against Bradley on December 13, 2017. As a licensed professional counselor under an agreement with the Oklahoma Health Care Authority ("OHCA"), Bradley had been submitting claims to SoonerCare, Oklahoma’s Medicaid Program, for behavioral counseling services provided by Primary Therapeutic Services, RLLP, a company he owned. According to the indictment, the OHCA reimbursed Bradley for counseling five minors who turned out to be his niece and nephews. Regulations and ethical rules governing licensed professional counselors prohibit the counseling of family members. Consequently, Medicaid regulations prohibit reimbursement for counseling family members. Between October 31, 2013, and July 30, 2017, Bradley caused the OHCA to pay fraudulent counseling claims totaling $182,732.12.
Bradley pleaded guilty to one count of health care fraud on March 13, 2018. He agreed to pay $182,732.12 in restitution, partly to SoonerCare via the OHCA and partly to the federal Centers for Medicare and Medicaid Services. To date he has paid $46,000 of this amount.
On September 25, Chief U.S. District Judge Joe Heaton sentenced Bradley to 24 days in jail during weekends. In addition, Bradley will be on probation for five years.
This case is the result of an investigation by the Medicaid Fraud Control Unit of the Oklahoma Attorney General’s Office. It was prosecuted by Assistant U.S. Attorney Amanda Green and Assistant Oklahoma Attorney General Lory Dewey, who also serves as a Special Assistant U.S. Attorney.
Reference is made to court filings for further information.
Baton Rouge Drug Dealer Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced DERRICK REYMOND ROBINSON, a 37-year-old resident of Baton Rouge, Louisiana, to 120 months in federal prison following his conviction of possession with intent to distribute 500 grams or more of methamphetamine. ROBINSON’s sentence includes 5 years of supervised release following his term of imprisonment. At the time of this offense, ROBINSON was on supervised release from a 2012 federal conviction of possession with the intent to distribute marijuana and possession of a firearm by a convicted felon. ROBINSON was sentenced separately to an additional 24 months imprisonment for violating the terms of his supervision, to run concurrently.
On November 22, 2016, officers from the Baton Rouge Police Department conducted a controlled purchase of marijuana at ROBINSON’s residence. On November 23, 2016, a search warrant of that residence was executed wherein officers found a black cooler-type container that contained significant quantities of methamphetamine, heroin, marijuana, oxycodone pills, and over 4000 Ecstasy (MEMA) pills in ROBINSON’s bedroom. Officers also recovered a digital scale from the same container.
U.S. Attorney Fremin stated, “This sentence should serve as a stark reminder to dope dealers in our district that our office is determined to use our resources to remove them from our streets so that our children can grow up in safe, drug free neighborhoods. I am very proud of the outstanding efforts of our prosecutors, the DEA and the Baton Rouge Police Department.”
“The successful prosecution of Derrick Robinson should put others who engage in this type of activity on notice: if you sell drugs you will face federal charges and a lengthy prison sentence. This offender’s sentence in federal prison sends a message of our unending resolve to pursue drug traffickers who wreak havoc in our communities,” said DEA Assistant Special Agent in Charge Brad L. Byerley.
This matter was investigated by the Drug Enforcement Administration and the Baton Rouge Police Department. It was prosecuted by Assistant United States Attorneys Cam Le and Jennifer Kleinpeter, who also serves as a deputy criminal chief.
Assistant Superintendent for the Catholic Archdiocese of Washington Indicted for Allegedly Stealing Almost $45,000 from his EmployerRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Kenneth Patrick Gaughan, age 40, of Washington, D.C., on mail fraud charges arising from a scheme to embezzle funds from the Catholic Archdiocese of Washington (ADW), where he was employed as Assistant Superintendent. The indictment was returned on September 24, 2018, and unsealed today upon Gaughan’s arrest.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the three-count indictment, Gaughan was employed as the Assistant Superintendent of ADW, headquartered in Hyattsville, Maryland. In that role, Gaughan was responsible for recruiting and acting as the point of contact for contractors who provided various services to ADW. These included contractors that could help ADW implement anti-bullying, crisis intervention, and professional development programs at the approximately 95 Catholic schools overseen by ADW, located in Calvert, Charles, Montgomery, Prince George’s, and St. Mary’s Counties in Maryland, and Washington, D.C. Gaughan also obtained invoices for services from contractors and provided those invoices, along with requests for payment and supporting documentation, to his superiors for approval.
The indictment alleges that beginning in at least June 2010 and continuing through April 2018, Gaughan caused ADW to pay invoices manufactured by Gaughan purportedly for anti-bullying and crisis intervention programs, as well as for software used to send mass text messages to ADW’s students and families. To execute the scheme, Gaughan allegedly incorporated two companies using names that were almost identical to those of real companies and opened bank accounts in the names of those companies. Gaugahan also opened a bank account in the name of a third company, which was an unlicensed entity in Washington, D.C.
According to the indictment, Gaughan then transmitted fraudulent invoices and persuaded ADW to issue checks for services that Gaughan knew the companies did not provide. Gaughan allegedly opened virtual and private mailboxes in order to receive the checks that ADW issued to pay for the fraudulent invoices that Gaughan manufactured and transmitted to ADW officials. The indictment alleges that Gaughan deposited the checks issued by ADW into the bank accounts he controlled, and converted the money to his personal use. The indictment details three invoices paid from September 2016 through April 2018 totaling almost $45,000.
If convicted, Gaughan faces a maximum sentence of 20 years in prison for each of three counts of mail fraud. An initial appearance was held for Gaughan today in U.S. District Court in Greenbelt before U.S. Magistrate Judge Timothy Sullivan. Gaughan was released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Gregory Bernstein, who is prosecuting the case.
Arizona Man Found Guilty on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that Christopher Lamont Bradshaw, age 27, of Tucson, Arizona, was found guilty of Conspiracy to Distribute a Controlled Substance and Possession With Intent to Distribute a Controlled Substance, as a result of a federal jury trial in Pierre, South Dakota.
The charges carry a mandatory minimum federal prison sentence of 5 years and up to 40 years and/or a $5,000,000 fine, up to a lifetime of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bradshaw was indicted by a federal grand jury on August 16, 2017, and was tried by a petit jury from September 17 to September 20, 2018.
The jury found Bradshaw guilty of conspiring with at least one other person to distribute 50 grams or more of methamphetamine between March 1, 2017 and August 16, 2017.
The jury also found Bradshaw guilty of possession with intent to distribute 50 grams or more of methamphetamine on April 27, 2017, near Rosebud, South Dakota. On that day, officers with the Rosebud Sioux Tribe Law Enforcement Services served a search warrant on a residence believed to be occupied by Bradshaw and Antonio Foster. When law enforcement arrived, Bradshaw and Foster fled in the vehicle driven by Bradshaw and on foot. Officers found 89 grams of meth in the field where Foster had fled, and seized a total of $5,382 in U.S. currency from Foster’s person and Bradshaw’s vehicle.
Foster was sentenced on April 30, 2018, to 60 months in federal prison.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for December 10, 2018. Bradshaw was remanded to the custody of the U.S. Marshals Service.
Anchorage Man Sentenced to Federal Prison for Stealing Hundreds of Cell Phones from the MailRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage man was sentenced by Senior U.S. District Judge Ralph R. Beistline yesterday to serve two years in federal prison for stealing approximately 400 cell phones from the U.S. mail, and for being a felon in possession of a firearm.
Jermaine N. Sails, 42, of Anchorage, was formerly a supervisor at International Bridge, Inc., an Anchorage business which handled U.S. mail matter on a contract basis. As a supervisor, Sails had access to a secure storage area at International Bridge. Beginning in October 2016, Sails began entering the secure area after hours and removing mail parcels which contained cell phones. Sails then stole the cell phones contained in the parcels and later sold them through various means, including by placing ads on Craigslist, for an average of $150 each.
In August 2017, with the assistance of management at International Bridge, agents with the U.S. Postal Service, Office of Inspector General began conducting surveillance of the secure storage area. On Aug. 31, 2017, Sails was caught in the act of stealing three cell phones. After his arrest, Sails consented to a search of his vehicle, and agents discovered a loaded 9mm handgun inside. As a previously convicted felon, Sails was unlawfully in possession of the weapon.
Sails was indicted by a federal grand jury in December 2017 for one count of Interfering with United States mail matter, and one count of felon in possession of a firearm. Sails pleaded guilty to both counts in June 2018.
In addition to the two-year prison sentence, Judge Beistline ordered Sails to pay $50,633.11 in restitution for the value of the stolen cell phones. Sails was also placed on a three-year period of supervised release following service of his custody sentence, and the firearm he was unlawfully in possession of was forfeited to the government.
This case was investigated by the U.S. Postal Service, Office of Inspector General, with the assistance of management at International Bridge, Inc. The case was prosecuted by Assistant U.S. Attorney Joseph Bottini.
Anchorage Man Extradited from Mexico to Face Charges after Stealing over $4 Million from KeybankRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man has been extradited from Mexico back to the United States to face charges filed against him in 2011 for stealing approximately $4.3 million dollars belonging to KeyBank.
Gerardo Adan Cazarez Valenzuela, a/k/a “Gary Cazarez,” 33, of Anchorage, was named in the 2011 superseding indictment charging him with theft of bank funds. Cazarez has been extradited from Mexico and will have his initial appearance in the case in Anchorage on Sept. 27, 2018, a 10:30 am.
According to charging documents, on or about July 29, 2011, Cazarez was the Cash Vault Services Manager for KeyBank when he stole approximately $4.3 million dollars in U.S. Currency from KeyBank in Anchorage, and then flew in a chartered jet to Washington, bought a car, and drove to Mexico. Cazarez was arrested by Mexican authorities on Aug. 2, 2011, when a random search of his luggage at a checkpoint revealed $3.8 million in cash, firearms, and ammunition.
Cazarez was charged and convicted in Mexico of criminal offenses analogous to money laundering and illegal possession of firearms for smuggling the cash and firearms into Mexico. After serving a term of imprisonment for his Mexican conviction, Cazarez was extradited to the U.S. to stand trial for the crimes charged in the superseding indictment.
If convicted, Cazarez faces a sentence of up to 30 years in prison, and a fine of up to $1 million dollars. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorneys Aunnie Steward and Joe Bottini. The Department of Justice’s Office of International Affairs provided substantial assistance in the case, as did the government of Mexico.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
ADA Settlement with KinderCare Ensures Access to Child Care Programs for Children with DiabetesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that KinderCare Education LLC (“KinderCare”) of Portland, Oregon, has entered into a settlement agreement with the government to resolve allegations that KinderCare’s child care programs and other services were not accessible to children with Type 1 diabetes who are dependent on insulin injections, in violation of the Americans with Disabilities Act of 1990 (“ADA”).
KinderCare currently operates approximately 1,800 facilities in the U.S., and the settlement agreement applies to all of KinderCare’s facilities.
The matter was initiated by a complaint filed with the U.S. Attorney’s Office for the District of Connecticut by Connecticut’s Center for Children’s Advocacy (CCA) alleging violations of Title III of the ADA. Specifically, the complaint alleges that KinderCare refused to assist two children who had been diagnosed with Type 1 diabetes with insulin administration. A third complaint against KinderCare by the parent of another child with Type 1 diabetes was filed by CCA during the course of the investigation. The government determined that KinderCare’s national policy and practice was that KinderCare staff would not directly administer insulin to children via a syringe or pen. Instead, KinderCare required parents of the children identified in the complaint to appear at its facility to administer the insulin to their children or hire another person, at the parents’ own expense, to do so.
Title III of the ADA prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages or accommodations of any place of public accommodation. KinderCare is a private entity that operates child care facilities that are places of “public accommodation” within the meaning of Title III of the ADA.
The settlement agreement resolves complaints that KinderCare was discriminating against three children with insulin dependent diabetes, on the basis of disability, by failing to make certain reasonable modifications for those children. Under the agreement, KinderCare is obligated to take critical steps toward improving access for children with Type 1 diabetes, including revising its policies and procedures, revising its training, and performing initial and ongoing assessments of the need for reasonable accommodations. KinderCare must evaluate each request on an individualized basis, relying on objective evidence and current medical standards.
KinderCare has agreed that “where a parent or guardian and a child’s physician or other qualified health care professional deem it appropriate … for a child to be assisted in diabetes care by a layperson, training child care staff members to assist with routine diabetes care tasks, including the administration of insulin by pen, syringe, or pump, is generally a reasonable modification under the ADA, unless KinderCare can demonstrate that the individual circumstances cause a fundamental alteration,” as defined under the ADA.
KinderCare also has agreed to pay $8,000 to each of the three Complainants to resolve this matter.
“The U.S. Attorney’s Office will continue to investigate and aggressively enforce violations of the Americas with Disabilities Act, especially violations that affect children and other vulnerable residents of Connecticut,” said U.S. Attorney Durham. “Parents rely on dependable childcare in order to work or go to school, and every child should have equal access to childcare and educational facilities. I thank KinderCare’s management for their cooperation during this investigation and for addressing these ADA issues without the need for litigation. Their actions will ensure that children with Type 1 diabetes can enjoy the same benefits that other children enjoy, while giving their parents the confidence that staff will be trained to ensure that their children are well cared for.”
The agreement is effective for three years, during which time the U.S. Attorney’s Office will monitor KinderCare’s compliance.
A copy of the settlement agreement may be found here.
This matter was handled by Assistant U.S. Attorney Vanessa Roberts Avery.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Department of Justice Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
61 Months in Prison for Defendant Part of Louisville Area Chiropractic Clinic SchemeRead the Press Release
LOUISVILLE, Ky. – U.S. District Judge Rebecca G. Jennings sentenced Claudia Lopez, age 40, from Fountain, Colorado, to 61 months imprisonment, followed by 3 years of supervised release this week for her part in a scheme to fraudulently bill insurance companies $5 million, announced United States Attorney Russell M. Coleman.
“We will not allow thieves to continue to use the complexity of our health care delivery system as a means to commit their crimes,” stated United States Attorney Russell M. Coleman. “Health care fraud will continue to be aggressively prosecuted in the Western District of Kentucky.”
The Court also ordered Lopez to pay restitution of $232,617.96, as well as a $1,300 Special Penalty Assessment and to forfeit an Audi Q-7 and $53,775 in proceeds.
According to the evidence before the Court, beginning no later than on or about June 12, 2012, and continuing through on or about November 1, 2014, Lopez, Ledinson Chavez, Oskel Lezcano, Ariel Borrego-Hernandez, Sergio Betancourt and Yuriesky Diaz Rodriguez recruited unsuspecting chiropractors for employment in Louisville area chiropractic clinics in order to obtain and use the chiropractors’ names and National Provider Identifiers (NPI) to fraudulently bill insurance companies. Each chiropractor provided his/her National Provider Identifier (NPI) number to Lopez and Lezcano in order to credential the clinics with various insurance companies.
Thereafter, the group of defendants recruited employees from Jeffboat and others to seek chiropractic services from the clinics. However, unbeknownst to the chiropractors, the clinics billed over $5,000,000 for methocarbamol injections (a muscle relaxant), using the patients’ names, dates of birth, insurance/policy numbers, addresses, and patient IDs/Social Security Numbers for injections. Most of the patients from Jeffboat were paid to go to the clinics by the defendants and were told the injections were being billed, according to testimony during trial.
Lopez, Lezcano, Borrego-Hernandez, Betancourt, and Chavez operated and controlled multiple chiropractic clinics in the Louisville area including: Xpress Diagnostics Center, Inc.; Prudential Chiropractic Medical Center, PLLC; Klondike Chiropractic Medical Center, LLC; Be Well Chiropractic Center, Corp.; Chiropractic and Medical Center, LLC, even though the clinics were placed in various chiropractors’ names.
Assistant United States Attorneys Joseph Ansari, Lettricea Jefferson-Webb and Christopher Tieke prosecuted the case and were assisted by Bob Masterson as health care fraud investigator. The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation, the Louisville Metro Police Department, and the National Insurance Crime Bureau.
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17 charged in drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eleven were arrested today after a federal grand jury returned an indictment against 17 individuals from Michigan and West Virginia on charges involving heroin, oxycodone, and cocaine distribution, as well as firearms, United States Attorney Bill Powell announced.
“Today’s arrests are yet another example of the determined and consistent efforts of our drug task forces. I applaud the DEA, ATF, and the Mon Metro Drug Task Force on the hard work on this case, not only arresting those dealing from our state, but targeting out-of-state distributors who continue to plague our communities. We will never stop prosecuting those who sell poison on our streets,” said Powell.Seventeen individuals were named in a 72-count indictment, alleging a conspiracy to distribute heroin, oxycodone, and cocaine in Monongalia County and elsewhere from the summer of 2017 to September 2018. Those indicted are:
• Maurice Swift, age 38, of Highland Park, Michigan
• Travon Evans, age 26, of Detroit, Michigan
• Raymond Edison, age 30, of Detroit, Michigan
• Daron Buford, age 27, of Detroit, Michigan
• Darius Dunbar, age 24, of Southfield, Michigan
• Juan Holmes, age 27, of Port St. Lucie, Florida
• Geronda Wilson, age 42, of Detroit, Michigan
• Marsawn Daggins, age 34, of Southfield, Michigan
• Brian Ray Kyle, age 39, of Maidsville, West Virginia
• Carissa Moore, age 27, of Morgantown, West Virginia
• Christopher Howard, age 32, of Morgantown, West Virginia
• Haley Hunt, age 25, of Morgantown, West Virginia
• Daniel Payne, age 31, of Morgantown, West Virginia
• Tina Hart, age 40, of Granville, West Virginia
• Hamisi Mwawari, age 44, of Morgantown, West Virginia
• Katina Sabatino, age 25, of Morgantown, West Virginia
• Preston Jeffrey Smith, age 24, of Morgantown, West VirginiaOf the 17 defendants, 11 were detained. Those wanted are:
Daron Buford
Juan Holmes
Daniel Payne
Hamisi Mwawari
Marsawn Daggins
Preston Smith“Drug dealers with guns are violent criminals who pose an increased threat to the safety of our communities,” stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “ATF, along with our federal, state, and local law enforcement partners will aggressively investigate, arrest and pursue prosecution of these offenders.”
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.$736,000 Grant Will Help Kansas Expand K-TRACS Drug MonitoringRead the Press Release
KANSAS CITY, KAN. – A $736,313 grant from the Department of Justice will help Kansas expand its K-TRACS prescription drug monitoring program, U.S. Attorney Stephen McAllister said today.
The Kansas Board of Pharmacy, which operates K-TRACS, will receive the money. The grant comes from a justice department program aimed at helping law enforcement and public health officials across the nation address prescription drug and opioid misuse.
The Centers for Disease Control and Prevention estimate that 72,000 Americans died last year from drug overdoses.
“We are facing the deadliest drug crisis in American history,” said U.S. Attorney General Jeff Sessions. “We’ve never seen anything like it.”
Stephen McAllister, U.S. Attorney for the District of Kansas, said: “Kansans and all Americans need to understand that opioid addiction is a national public health emergency. Tens of thousands of people every year are disappearing into a whirlpool of addiction, bankruptcy, divorce and death.”
The Kansas Board of Pharmacy will use the money to develop a public awareness campaign for K-TRACS, to conduct an audit of K-TRACS records and to hire a special investigator who will use K-TRACS data to identify suspicious and harmful prescribing patterns.
25 September 2018
Winnebago Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Joe Kelly announced that Christopher Littlebeaver, 24, was sentenced today in Omaha, Nebraska, by Chief United States District Judge Laurie Smith Camp, for sexually abusing a minor. Judge Smith Camp sentenced Littlebeaver to 40 months’ imprisonment. After completing his term of imprisonment, Littlebeaver will begin a five-year term of supervised release.
On October 9, 2017, Littlebeaver knowingly engaged in a sexual act with a 15-year old minor on the Winnebago Indian Reservation.
This case was investigated by the Federal Bureau of Investigation.
Wichita Man Charged with Federal Firearm ViolationRead the Press Release
WICHITA, KAN. – A convicted felon who lives in Wichita was charged Tuesday in federal court with unlawful possession of a firearm, U.S. Attorney Stephen McAllister said. Documents filed with the court said the defendant was identified during an investigation of the murder of Sedgwick County Sheriff’s Deputy Robert Kunze.
Justin Mashaney, 29, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. According to an affidavit filed in the case, law enforcement officers were investigating Kunze’s murder by Cody Greeson when they learned Mashaney recently had been committing crimes with Greeson. Greeson and Kunze died Sept. 16 in an exchange of fire.
On Sept. 23, investigators went to a residence in the 500 block of South All Hallows to find Mashaney. In a truck registered to Mashaney they found a rifle and a 9 mm handgun. In 2015, Mashaney was convicted of burglary and sentenced to 20 months in jail.
If convicted, Mashaney faces up to 10 years in federal prison and a fine up to $250,000. The Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
West Yarmouth Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
BOSTON – A West Yarmouth woman was sentenced today in federal court in Boston for stealing Social Security disability benefits.
Crystal Lehtola, 35, was sentenced by U.S. District Court Judge William G. Young to three years of supervised release, with the first six months to be served on home confinement, and ordered to pay restitution of $53,682. In May 2018, Lehtola pleaded guilty to one count of theft of public funds. Lehtola was arrested and charged in August 2017.
From February 2011 through August 2016, Lehtola received approximately $53,682 in benefits from the Social Security Administration intended for her disabled daughter. In order to be appointed as her daughter’s representative payee, Lehtola told Social Security that her daughter lived with her and that she was her daughter’s guardian. However, in April 2009, the Massachusetts Department of Children and Families removed Lehtola’s daughter from her care, and although Lehtola never regained custody, she repeatedly advised Social Security that her daughter lived with her and that she spent all of the benefits on her daughter’s care. In reality, Lehtola spent the funds on her own expenses.
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. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
West Seneca Man Sentenced for His Role in Dansville Meth ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Andrew Culliton, 38, of West Seneca, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, methamphetamine, was sentenced to 36 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that Culliton, along with others, conspired to distribute methamphetamine at “The Bone Yard,” an auto salvage yard in Dansville, NY. On two occasions, March 2, 2017, and March 10, 2017, the defendant sold pure crystal methamphetamine to another individual known to law enforcement.
Culliton is one of seven defendants charged and convicted in this case.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Livingston County Sheriff’s Department, under the direction of Sheriff Thomas Dougherty; and the New York State Police, under the direction of Major Eric Laughton.
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Virginia Man Sentenced to over 19 Years’ Imprisonment for Production of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hollis Lee Ball, age 45, of Virginia, was sentenced on September 24, 2018, by United States District Court Judge John E. Jones, III to 235 months’ imprisonment followed by a life term of supervised release for production of child pornography.
According to United States Attorney David J. Freed, between March 5 and 11, 2017, Ball contacted two minor children in Pennsylvania through an Ipad application known as “Musical.ly.” Ball used his access to the minor children through Musical.ly to persuade one of the children to send him exploitative images.
Ball was previously convicted of a sex offense and was on the sex offender registry in Virginia when he committed the offense.
This case was investigated by the Lower Paxton Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Chelsea Schinnour prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Violent Armed Carjacker Ordered to Federal PrisonRead the Press Release
McALLEN – A 30-year-old Mexican man has been ordered to federal prison for two carjackings which occurred in early 2017, announced U.S. Attorney Ryan K. Patrick. Jorge Luis Almanza-Barcenas pleaded guilty to a six-count second superseding indictment on Sept. 28, 2017.
Today, U.S. District Judge Randy Crane ordered Jorge Luis Almanza-Barcenas to serve a total of 384 months plus one day in prison for the carjackings and related firearms offenses. Following his sentence, he is expected to face deportation proceedings as he is not a U.S. citizen.
Additional information was also presented today including a paraphrased statement form one of the victims in the case which noted her continued fear. Almanza-Barcenas was further ordered to pay $16,348.43 in restitution to the victims.
On March 27, and April 12, 2017, Almanza-Barcenas committed two armed carjackings in McAllen. He approached both female victims, who were sitting in their vehicles, and demanded them to relinquish their vehicles at gunpoint. Almanza-Barcenas pointed a 9mm caliber semiautomatic pistol at the victims’ heads and pulled them out of the vehicle, threatening to kill them. Thereafter, Almanza-Barcenas fled, obtaining the vehicle each time. .
Almanza-Barcenas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and McAllen Police Department conducted the investigation. Assistant U.S. Attorneys (AUSA) James Sturgis and David Paxton and former AUSA Lynn Wang prosecuted the case.
VCU Health System Authority Agrees to $4 Million SettlementRead the Press Release
RICHMOND, Va. – Virginia Commonwealth University Health System Authority (VCU), which operates VCU Medical Center and related healthcare facilities in Richmond, agreed to pay $3,994,151 to settle claims for billing overpayments paid by Medicare, Tricare, and the Federal Employees Health Benefits Plan (FEHB) for services rendered to patients.
The resolution follows from a voluntary disclosure by VCU to the U.S. Attorney’s Office after VCU discovered through audits of patient files and claims data that Federal healthcare payors had been overbilled for radiation oncology services. After VCU discovered the conduct that had caused a variety of billing errors, VCU took corrective action to prevent the conduct that caused the overpayments and made the disclosure. The settlement resolves claims arising out of errors in VCU billings to Federal healthcare payors from 2009 through September 2014.
VCU provided assistance during the government’s investigation, which was a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Virginia, the Department of Health and Human Services Office of Inspector General, the U.S. Office of Personnel Management Office of the Inspector General, and the Defense Criminal Investigative Service Office of Inspector General. The matter was investigated by Assistant U.S. Attorney Robert McIntosh.
The civil claims settled are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Two Pittsburgh Women Arrested at the Cyril E. King Airport for Allegedly Smuggling 13 Kilograms of Cocaine with the Intent to DistributeRead the Press Release
St. Thomas, USVI – Ngoc Nguyen, 21, and Fendi Brooks, 25, both from Pittsburgh, Pennsylvania, were arrested today on a complaint charging them with conspiracy to possess with the intent to distribute thirteen kilograms of cocaine and possession with the intent to distribute cocaine, United States Attorney Gretchen C.F. Shappert, announced. Nguyen and Brooks made their initial appearance before Magistrate Judge Ruth Miller and were detained pending further proceedings.
According to the complaint, Nguyen and Brooks were stopped by U.S. Customs and Border Protection (CBP) Officers at the Cyril E. King Airport after they discovered that Nguyen and Brooks were attempting to smuggle thirteen kilograms of cocaine through the airport to the U.S. mainland in their checked luggage. The white powdery substance discovered in the suitcase, field-tested positive for cocaine and weighed approximately thirteen kilograms.
If convicted of conspiracy to possess with the intent to distribute and possession with the intent to distribute cocaine, Nguyen and Brooks each face a term of imprisonment of not less than ten years and not more than life and a fine of $10,000,000.00 on each count.
This case is being investigated by Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) and the U.S. Drug Enforcement Administration (DEA). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Two Men Sentenced to 18 and 19 Year Prison Terms for Conspiracy to Commit Sex Trafficking of a MinorRead the Press Release
On September 20, 2018, Palm Beach County resident Charles Edward Smith, 63, was sentenced to 235 months in prison by United States District Judge Donald M. Middlebrooks following his jury trial conviction for participating in a conspiracy to commit sex trafficking of a minor (Case No. 18-CR-80062). Co-defendant Michael Joseph Clark, 44, was sentenced to 220 months in prison by Judge Middlebrooks, after he previously pled guilty to participating in the conspiracy and committing substantive sex trafficking of a minor offenses.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Sarah J. Mooney, Chief of Police, West Palm Beach Police Department (WPBPD) made the announcement.
On or about March 13, 2018, members of the WPBPD discovered a 14-year old minor, identified as a missing person, in a West Palm Beach residence controlled by Smith. The defendant and other co-conspirators, including Michael Joseph Clark, operated a prostitution operation out of the residence. Smith had the minor work as a prostitute, setting up her sexual encounters, giving her drugs and requiring her to use her prostitution earnings to stay at the house.
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 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 www.projectsafechildhood.gov.
Mrs. Fajardo Orshan commended the investigative efforts of the FBI and the WPBPD in this matter. The case was prosecuted by Assistant U.S. Attorneys Lothrop Morris and Ellen Cohen.
Related court documents and information can 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.
Two Defendants Charged with Arson of Kenmore Restaurant to Collect Insurance MoneyRead 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 a federal grand jury has returned an indictment charging Mushtak Al Mosaadi, a/k/a Mo, 47, and Omran Al-Khazraji, a/k/a Omarwas, 47, with conspiracy to damage and destroy a building used in interstate commerce by fire, and damaging and destroying a building used in interstate commerce by fire. The charges carry a mandatory minimum penalty of five years in prison and a maximum of 20 years. In addition, Al Mosaadi is also charged with mail fraud which carries a maximum penalty of 20 years.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that according to the indictment, on May 25, 2016, defendant Al Mosaadi obtained a general liability insurance policy for the Babylon Gardens, a restaurant located at 1141 Kenmore Avenue in Kenmore, NY. On the day he obtained the policy, Al Mosaadi increased the policy limit from $50,000 to $100,000.
Between May 25, 2016, and June 3, 2016, the defendant devised a scheme to obtain money from the insurance company. On June 2, 2016, defendant Al Mosaadi, working with others, intentionally started a fire, and caused another to start a fire, inside the restaurant. On that same day, defendant Al Mosaadi gave a signed sworn statement to the Kenmore Police Department, in which he falsely claimed that he had no idea who started the fire and that he would assist the police in determining who committed the arson. On June 3, 2016, defendant Al Mosaadi signed an “Authorization to Perform Services and Direct Payment,” for “Sullivan’s Cleaning and Restoration” and for “CRDN of WNY” to pay for cleaning and repair to damages caused by the fire.
The defendants were arraigned on September 24, 2018, before U.S. District Judge Michael J. Roemer and were released.
The indictment is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict and the Kenmore Police Department, under the direction of Chief Peter Breitnauer.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Two Charlotte Area Hospitals Among $260 Million Global Settlement Between Hospital Chain and the United StatesRead the Press Release
CHARLOTTE, N.C. – The Department of Justice announced today that Health Management Associates, LLC (HMA), formerly a major U.S. hospital chain headquartered in Naples, Florida, will pay over $260 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States. This global settlement also resolves False Claims Act allegations against two Charlotte-area hospitals, Lake Norman Regional Medical Center and Davis Regional Medical Center.
“Today’s settlement demonstrates the government’s commitment to hold companies accountable for the abuse of government healthcare programs,” said Andrew Murray, United States Attorney for the Western District of North Carolina. “My office will continue to steadfastly use the False Claims Act to safeguard the integrity of our healthcare system and protect taxpayer dollars from healthcare providers that engage in this type of fraudulent activity.”
The government alleged that HMA knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services, paid remuneration to physicians in return for patient referrals, and submitted inflated claims for emergency department facility fees. Lake Norman Regional Medical Center and Davis Regional Medical Center, are two HMA hospitals in which the alleged fraudulent scheme was carried out.
Today’s settlement resolves multiple allegations against HMA for both criminal and civil liability. As part of today’s settlement, HMA agreed to pay $62.5 million to resolve HMA’s liability for submitting false claims between 2008 and 2012 as part of a corporate-wide scheme to increase inpatient admissions of Medicare, Medicaid and the Department of Defense’s (DOD) TRICARE program beneficiaries over the age of 65. The government alleged that the inpatient admission of these beneficiaries was not medically necessary, and that the care needed by, and provided to, these beneficiaries should have been provided in a less costly outpatient or observation setting.
HMA agreed to pay $61,839,718 to the United States and $706,084 to participating States. HMA also agreed to pay $12 million to resolve allegations that from September of 2009 through December of 2011, certain HMA hospitals submitted claims to Medicare and Medicaid seeking reimbursement for falsely inflated emergency department facility charges. HMA agreed to pay $11,028,000 to the United States and $972,000 to participating States to settle HMA’s inflated billing practices.
This settlement resolves certain claims brought by Doctors Thomas L. Mason, Steven G. Folstad and their company Mid-Atlantic Emergency Medical Associates (MEMA), in a qui tam complaint filed on September 23, 2010 in the Western District of North Carolina. MEMA, Mason and Folstad’s company, provided contracted emergency department physician service to HMA at Lake Norman Regional Medical Center and Davis Regional Medical Center. Mason and Folstad alleged that because they resisted HMA’s efforts to enact this scheme, HMA fired MEMA and awarded the contract for emergency department services to EmCare, Inc. (EmCare), a large national emergency department services company. Mason and Folstad also named EmCare as a defendant in their complaint. The settlement amount of $62.5 million and $12 million resolves allegations of fraud included in doctors Mason and Folstad’s complaint. EmCare previously settled its civil liability with the government in December 2017 for $29.6 million. More information on EmCare’s settlement can be found here.
Mason and Folstad filed their complaint under the qui tam provisions of the False Claims Act, which allows private citizens with knowledge of potential fraud to file a complaint on behalf of the United States. These whistleblowers, known as relators under the statute, often bring corporate wrongdoing to the attention of the United States.
“The efforts of relators like Doctors Mason and Folstad are essential to protecting the integrity of our Medicare and Medicaid systems,” said U.S. Attorney Murray. “We thank them for bringing these allegations to the United States.”
Under the False Claims Act, the United States investigates relators’ allegations, often with assistance from relators and their counsel, to determine if it will intervene in the case.
“Relators’ counsel has provided invaluable assistance to the United States during this long investigation,” said Murray. “Such assistance greatly enhances government resources allowing us to more effectively fight fraud on government programs.”
Twice-Convicted Drug Dealer Sentenced on Drug ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Charles Raymond Stagner, 36, of Saraland, Alabama, was sentenced in federal court on his conviction on two counts of possession with intent to distribute methamphetamine. Stagner was convicted by a jury following a trial in June of 2018. Evidence from the trial showed that Stagner sold methamphetamine to a confidential informant working with the Saraland Police Department, and when officers obtained a search warrant for his residence, they found additional quantities of methamphetamine, scales and other drug paraphernalia. Court documents reflect that Stagner’s prior federal conviction for conspiracy to manufacture methamphetamine occurred in 2009.
United States District Court Judge William H. Steele imposed a sentence of 132 months imprisonment on each count, with the sentences to run concurrently. When Stagner is released from prison, he will serve eight years of supervised release. As conditions of his supervised release, the judge ordered that Stagner would receive drug and alcohol treatment as well as mental health counseling. No fine was imposed but Stagner was ordered to pay $200 in special mandatory assessments.
The case was investigated by the Saraland Police Department, the Mobile County Sheriff’s Office and the Department of Homeland Security, Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by AUSA Gloria A. Bedwell.
Toledo to receive nearly a half-million dollars to help fight violent crimeRead the Press Release
Attorney General Jeff Sessions today announced grant awards to Public Safety Partnership member sites as part of $10 million in funding to support state, local and tribal law enforcement departments and agencies and their partners who are fighting violent crime in jurisdictions across the United States.
Toledo is one of the recipients, receiving $492,553.
“This money, nearly half a million dollars, will put our Toledo law enforcement partners in better position to identify and respond to violent crime in our community,” said U.S. Attorney Justin Herdman. “This money will make Toledo’s residents safer and we look forward to helping the city implement these grant funds.”
The Office of Justice Programs’ Bureau of Justice Assistance, in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, is awarding $5 million under the Local Law Enforcement Crime Gun Intelligence Center Integration Initiative to encourage local jurisdictions to use intelligence, technology and community engagement to identify unlawfully used firearms and to prosecute those who commit violent crimes.
Grant recipients include the PSP cities of Indianapolis, Indiana, $798, 866; Memphis, Tennessee, $714,055; Tulsa, Oklahoma, $800,000 and Baton Rouge, Louisiana, $634,971. Other locations include Detroit, Michigan, $800,000; the Albuquerque, New Mexico, Police Department, $452,108, and the City/County of San Francisco, California, $800,000. The jurisdictions will use these awards to hire personnel to utilize the National Integrated Ballistic Information Network (NIBIN), to purchase technology required to operate a Crime Gun Intelligence Center and ammunition for ballistic tests of recovered weapons.
The Attorney General also announced awards for BJA’s Technology Innovation for Public Safety (TIPS): Addressing Precipitous Increases in Crime program.
This program supports the Department’s priorities of reducing violent crime and supporting law enforcement officers, including prosecutors. While many jurisdictions are making significant progress implementing justice information sharing solutions to address critical gaps in crime prevention and response activities across organizations and jurisdictions, there remain challenges for the criminal justice system to respond to threats to public safety. This is especially true for efforts addressing significant increases in crime.
Justice information sharing technology refers to any hardware and software, hosted residentially or remotely, that plays a role in the collection, storage, sharing and analysis of criminal justice data. Funding under this program is provided to help state, local, territorial, and tribal jurisdictions use innovative technological solutions to enhance their justice information-sharing capacity.
Grant recipients include the PSP cities of Memphis, Tennessee, $417,224; Toledo, Ohio, $492,553; Flint, Michigan, $499,694 and Houston, Texas, $500,000. Other locations include Arizona Criminal Justice Commission, $317,834; City of Boynton Beach, Florida, $465,860; Clark County Social Service, Nevada, $500,000; New Mexico Second Judicial District Attorney, $500,000; State of Connecticut Department of Emergency Services and Public Protection; $419,804; Bergen County Prosecutor’s Office, New Jersey, $500,000; and Georgia Bureau of Investigation, $499,339. Additional information on the grant awards can be found at: www.bja.gov
Attorney General Jeff Sessions made the announcement during today’s National Public Safety Partnership Symposium on Violent Crime in Birmingham, Alabama. The National Public Safety Partnership is a DOJ-wide initiative that enables cities to consult with and receive a coordinated array of resources from DOJ’s programmatic and law enforcement components: the Bureau of Justice Assistance; United States Attorneys’ Offices; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the U.S. Drug Enforcement Administration; the U.S. Marshals Service; the Office on Violence Against Women; the Office of Justice Programs; the Office of Community Oriented Policing Services; and other federal agencies in order to improve local violence reduction strategies.Three Charged with Conspiracy to Rob A Post OfficeRead the Press Release
HAMMOND- Tanisha Banks, age 38, James Caffey, age 28 and Leeroy Beck, age 28, all residents of Northwest Indiana, were charged in a 3 count Indictment, announced U.S. Attorney Kirsch.
According to documents in this case, the three were charged with conspiracy to commit robbery. Bank and Caffey are also charged with using a firearm during the commission of the robbery. The indictment alleges that the three conspired to and robbed the Tolleston Post Office in Gary, Indiana on August 3, 2017.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the U.S Postal Inspection Service. This case is being prosecuted by Assistant United States Attorneys Thomas McGrath and Diane L. Berkowitz.
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Three Armed Drug Traffickers Are Sentenced to Lengthy Prison TermsRead the Press Release
CHARLOTTE, N.C. – Three Gaston County drug trafficker were sentenced in federal court yesterday to prison terms ranging from nine to 17.5 years, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Quinton Lavar Brown, 34, of Gastonia, was sentenced to 210 months in prison and five years of supervised release; Antwan Lamar Floyd, 35, of Gastonia, was sentenced to 144 months in prison and five years of supervised release; and Maurice Terrell Robinson, 29, of Dallas, N.C. was sentenced to 110 months in prison, followed by 6 years of supervised release. Chief U.S. District Judge Frank D. Whitney presided over the sentencing hearings.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Robert C. Helton of the Gastonia Police Department join U.S. Attorney Murray in making today’s announcement.
According to court documents and information presented at the sentencing hearings, the three men were responsible for trafficking multiple kilograms of crack cocaine in and around Gaston County. Court records show that, over the course of the investigation, law enforcement recovered from the defendants’ stash houses and residences more than $24,931 in cash, 74 grams of cocaine, 1.5 kilograms of marijuana, a money counter and four sets of digital scales. In addition, law enforcement seized illegally possessed firearms, including one AK-47 assault rifle, one shotgun, four handguns, and ammunition.
Brown, who engaged in drug trafficking while on supervised release for a previous federal drug and racketeering conspiracy conviction, pleaded guilty on May 2, 2018, to conspiracy to distribute and to possess with intent to distribute crack cocaine. Floyd pleaded guilty to conspiracy to distribute and to possess with intent to distribute crack cocaine on April 11, 2018. Robinson, who was also on supervised release in connection with a previous federal drug, racketeering conspiracy and Hobbs Act Robbery conviction, pleaded guilty to possession with intent to distribute crack cocaine on December 19, 2017.
All three defendants are currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
These convictions stem from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
These cases are also 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.
In making today’s announcement U.S. Attorney Murray thanked the Federal Bureau of Investigation, Charlotte Division, and the Gastonia Police Department for their investigation of the case.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Statement by Attorney General Sessions Supporting Proposed Legislation to Counter Unmanned Aircraft SystemsRead the Press Release
Attorney General Sessions today issued the following statement of support for legislation to counter threats from unmanned aircraft systems:
“From the Wright Brothers to John Glenn to today, Americans have been at the leading edge of aeronautics and made breakthroughs that have changed our world for the better. Drone technology, one of the latest of these inventions, promises to strengthen us economically by creating American jobs and transforming American industry. Unfortunately, however, this new tool can also be used to wreak havoc by criminals, terrorists and other bad actors. That is why the Trump administration has worked on legal reforms to enable law-abiding people to use this technology for good while protecting them from those who would use it for ill.
“Bipartisan legislation in Congress called the Preventing Emerging Threats Act would finally give federal law enforcement the authority we need to counter the use of drones by drug traffickers, terrorists and criminals while protecting the freedom to use drones lawfully. We need this authority today — and so I urge my former colleagues in Congress to send this legislation to President Trump’s desk. That will let us get to work, fight this new threat and keep the American people safe.”
St. Thomas Man Arrested at the Cyril E. King Airport for Allegedly Smuggling 23 Kilograms of Cocaine with the Intent to DistributeRead the Press Release
St. Thomas, USVI – Shahime Ludvig, Jr., 20, of St. Thomas was arrested today on a complaint charging him with possession with the intent to distribute cocaine, United States Attorney Gretchen C.F. Shappert, announced. Ludvig made his initial appearance before Magistrate Judge Ruth Miller and was detained pending further proceedings.
According to the complaint, Ludvig was attempting to smuggle twenty-three kilograms of cocaine through the Cyril E. King to Atlanta, Georgia on Delta Flight #307. U.S. Customs and Border Protection (CBP) Agents discovered that the suitcase Ludvig checked in for the flight contained white, brick-like objects that field-tested positive for cocaine and weighed approximately twenty-three kilograms.
If convicted of possession with the intent to distribute cocaine, Ludvig faces a term of imprisonment of not less than ten years and not more than life and a fine of $10,000,000.00.
This case is being investigated by Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) and the U.S. Drug Enforcement Administration (DEA). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
South Carolina’s 17th Annual National Day of Concern & Student Pledge Against Gun ViolenceRead the Press Release
COLUMBIA, South Carolina ---- United States Attorney Sherri A. Lydon stated today that on October 17, 2018, the United States Attorney’s Office (USAO), as part of Project CeaseFire, is sponsoring South Carolina’s participation in the annual National Day of Concern and Student Pledge Against Gun Violence. On October 17th, students from around the country will join together in pledging to do their part to end gun violence. Middle-school and high school students will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence with their friends to keep them from solving personal problems with guns. Elementary school children will make a simpler commitment. They will pledge that if they see a gun they will not touch it and they will assume that any gun they see might be loaded.
United States Attorney Lydon said, “Our youth is our future and they deserve to be safe, both at school and at home. Through this pledge event, our office is continuing our efforts to reach South Carolina students and teach them the importance of preventing gun violence.” This national event is important as it gives students around the country the chance to make an affirmation of their ability, individually and collectively, to be a powerful force for change.
As it has done since 2002, the USAO reached out to all South Carolina law enforcement agencies and schools to make the pledges available to interested schools. In addition to providing the pledges, the USAO is coordinating with our law enforcement partners to provide speakers to requesting schools. This pledge effort is part of Project CeaseFire. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
Schools and law enforcement agencies have until September 28th to register to participate in this event. For more information on how to participate, please see the attached memorandum and request form. For additional information concerning the national pledge program, visit the Student Pledge web site at www.pledge.org .
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2018_17th_annual_gun_pledge_memo_002.pdf 2018_certificate_or_speaker_request_002.pdfSkagway Man Sentenced for Theft of Government FundsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Skagway man has been sentenced in federal court for theft of government funds.
Carey L. Dorn, 67, of Skagway, Alaska, was sentenced last Friday by Chief U.S. District Judge Timothy M. Burgess, to serve five years of probation, and was ordered to pay $78,811.68 in restitution to the United States Railroad Retirement Board (RRB).
According to court documents, from January 2011 through December 2013, Dorn received $78,811.68 in overpayments from RRB Employment Disability that he was not entitled to because he knowingly failed to file accurate reports of his employment and income earnings during this time period. In 2005, Dorn had become injured on the job with the U.S. Railroad and was allowed to take an early retirement in March 2007. As part of the conditions of Dorn’s early retirement benefits, he was required to accurately report his employment and income to the RRB. In 2008, Dorn’s wife opened a photo and car rental business in Skagway. Dorn began working at the business full-time, exclusively running its day-to-day operations, but knowingly and willfully failed to report this income to the RRB since it could result in reduced or withheld benefits from RRB.
The U.S. Railroad Retirement Board, Office of Inspector General, Office of Investigations (RRB OIG/OI) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack Schmidt.
Six Individuals Sentenced in Case Charging Health Care Fraud and Kickback Conspiracies and ObstructionRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced today the sentencing of four local physicians, a biller, and office manager following a four week trial that ended on May 9, 2017.
Specifically, HENRY EVANS, age 74, was found guilty of five counts of health care fraud; MICHAEL JONES, age 49; PAULA JONES, age 45; SHELTON BARNES, age 63; GREGORY MOLDEN, age 60, all of New Orleans; and JONATHON NORA, age 31, of River Ridge, were all found guilty of conspiracies to commit health care fraud and to receive and pay health care kickbacks, and health care fraud. BARNES, MICHAEL JONES, MOLDEN, and NORA were also found guilty of individual counts of health care fraud. Additionally, BARNES was found guilty of obstruction of a federal audit.
The Second Superseding Indictment rises out of an Indictment returned in March 2015 charging Abide owner, Lisa Crinel, and others with health care fraud. Nineteen individuals and/or companies pleaded guilty before trial to charges associated with the original Indictment.
According to the Second Superseding Indictment, the defendants fraudulently billed Medicare for medically unnecessary home health services for patients who were not homebound. BARNES, EVANS, MOLDEN, and MICHAEL JONES, known as “House Doctors,” ordered home health services for Medicare beneficiaries who had no legitimate medical necessity. The House Doctors falsely signed home health orders regardless of the beneficiaries’ needs, homebound status, or diagnoses. In return, BARNES, EVANS, and MOLDEN received illegal monthly payments characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services. Instead of receiving monthly payments from the home health agency, Abide hired PAULA JONES, MICHAEL JONES’ wife and, thereafter, inflated salary payments to PAULA JONES in order to pay MICHAEL JONES’ fees for fraudulently certifying ineligible Medicare beneficiaries.
Marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary. Once NORA determined that the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an Abide House Doctor, well knowing that the individual referral to Abide was by a Marketer, instead of the beneficiary’s own health care professional.
Abide generated plans of care reflecting the falsely created assessments. The plans of care were given to BARNES, EVANS, MOLDEN, and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health. PAULA JONES fraudulently billed Medicare, on behalf of Abide, for the medically unnecessary home health services.
U.S. District Judge Susie Morgan sentenced SHELTON BARNES, age 64, to sixty (60) months imprisonment, followed by one (1) year of supervised release, and restitution in the amount of $10,850,229 to be paid to Medicare.
Judge Morgan sentenced HENRY EVANS, age 74, to fifty (50) months imprisonment, followed by one (1) year of supervised release, and restitution in the amount of $1,262,043 to be paid to Medicare.
Judge Morgan sentenced GREGORY MOLDEN, age 62, to forty-eight (48) months imprisonment, followed by one (1) year of supervised release, and restitution in the amount of $626,405 to be paid to Medicare.
Judge Morgan sentenced MICHAEL JONES, age 49, to thirty-six (36) months imprisonment, followed by two (2) years of supervised release, and restitution in the amount of $347,525 to be paid to Medicare.
Judge Morgan sentenced PAULA JONES, age 45, to one year and one day imprisonment, followed by three (3) years of supervised release, and restitution in the amount of $3,106,954 to be paid to Medicare. Upon her release from imprisonment, PAULA JONES was ordered to serve a term of home detention for a period of 24 months.
Judge Morgan sentenced JONATHON NORA, age 31, to forty (40) months imprisonment, followed by one (1) year of supervised release, and restitution in the amount of $12,921,797 to be paid to Medicare.
U.S. Attorney Strasser praised the work of the Special Agents of the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman, Maria Carboni, and Andre Lagarde prosecuted the case.
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Sherry Ann Allen Sentenced to Serve 51 Months in Prison for Embezzlement and Tax EvasionRead the Press Release
GREENEVILLE, Tenn. – On September 25, 2018, Sherry Ann Allen, 49, of Johnson City, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 51 months in federal prison, as a result of her June 2018 plea of guilty to theft by a credit union officer or employee and tax evasion. Upon her release from prison, Allen will be supervised by U.S. Probation for three years. She was also ordered to pay a total of $1,237,547.04 in restitution.
In November 2017, the Johnson City Police Department (JCPD) contacted members of the Greater Eastern Credit Union (credit union) management team after it received information regarding an abnormality in the payment to a vendor. JCPD provided the details and credit union personnel conducted an internal review of the transaction, which showed that Allen had paid a vendor and purposely and personally processed a transaction in which $10,000 was transferred to an account that she controlled. During their review, credit union personnel discovered additional transactions Allen processed in which funds were deposited into other accounts she controlled. The credit union personnel informed their Board of Directors that Allen was stealing money from the credit union and she was placed on indefinite suspension. The Board of Directors ordered that an accounting firm conduct a fraud examination. By this time, the FBI and Internal Revenue Service Criminal Investigation had joined the investigation.
The investigation revealed that Allen had embezzled $1,195,596 in calendar years 2011 to 2017. She used some of the stolen money for her personal benefit. In the beginning, she used the stolen money to pay her credit cards and later purchased an Infiniti and Ford truck for personal use. Allen and her husband also took a cruise and trips to Tucson, Arizona and Eastern Europe. Additionally, she purchased a timeshare in Orlando, Florida, a camper, clothes and jewelry.
Allen donated some of the stolen money to charitable causes. She took her church youth group on several trips, including missions to Ireland, Nicaragua, and Florida. She paid for Vacation Bible School items. She gave stolen money to people who needed groceries and purchased two vehicles for members of her church.
Allen did not report the embezzled and misapplied money as income on her joint tax returns in tax years 2011, 2012, 2013, 2014 2015 and 2016. In doing so, she and her spouse, prepared and filed, or caused to be prepared and filed false and fraudulent tax returns.
“The U.S. Attorney’s office will continue to prosecute individuals in positions of trust, who steal or misappropriate funds for their own personal use, when the cases are referred to our office,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.
“The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS' enforcement strategy,” said Matthew D. Line, Special Agent in Charge. “No matter the source of income, all income is taxable, including embezzled funds. When a bank executive, such as Ms. Allen, misuses their position, it violates the public trust and puts the financial stability of the institution at risk. IRS Criminal Investigation is committed to using our forensic accounting skills to help unravel complex fraud schemes, to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means, and to help put a stop to this and other types of white collar crime."
"Solid partnerships in law enforcement are key to the success of our mission, said Troy Sowers, Special Agent in Charge of the FBI's Knoxville Field Office. The Johnson City Police Department and the IRS-Criminal Investigation agents worked tirelessly with us to help bring the accused to justice. I thank them for their efforts and look forward to working future cases."
Agencies involved in this investigation included the FBI, IRS-Criminal Investigation and Johnson City Police Department. Assistant U.S. Attorney Robert M. Reeves represented the United States in court proceedings.
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Serial Bank Robber Sentenced to 235 Months of ImprisonmentRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that William Fischer, age 46, of Dunmore, Pennsylvania, was sentenced on September 21, 2018, by United States District Court Judge Malachy E. Mannion to 235 months’ imprisonment for robbing 14 banks and brandishing firearms during the course of those robberies.
According to United States Attorney David J. Freed, Fischer robbed 14 banks located throughout northeastern Pennsylvania between December 1, 2015 and September 13, 2017. Fischer was apprehended shortly after the September 13, 2017 robbery by the Pennsylvania State Police. For 12 of the offenses, Fischer robbed the banks while armed with a firearm. He also was convicted of brandishing a firearm during a crime of violence. Fischer wore a ballistic vest during the robberies and was arrested with a loaded assault rifle and a loaded handgun. Fischer’s crime spree netted $203,779.30; law enforcement recovered $16,769.00 of the stolen funds.
December 1, 2015
NBT Bank, Elmhurst
$6,946
December 22, 2015
NBT Bank, Newfoundland
$4,000
January 13, 2016
Community Bank, Scranton
$27,100
February 4, 2016
NBT Bank, Scranton
$9,136
February 11, 2016
NBT Bank, Newfoundland
$19,013
March 21, 2016
First Keystone Community Bank, Newfoundland
$13,413.98
April 7, 2016
Community Bank, Scranton
$40,226.50
October 3, 2016
First National Bank, Tannersville
$16,764.80
October 27, 2016
First Keystone Community Bank, Stroudsburg
$13,020
December 15, 2016
NBT Bank, Eynon
$8,717
January 26, 2017
PNC Bank, West Pittston
$11,159
June 8, 2017
NBT Bank, Eynon
$5,790.02
August 7, 2017
First National Bank, Tannersville
$11,724
September 13, 2017
Peoples Security Bank and Trust, Gouldsboro
$16,769
In addition to the sentence of imprisonment, Judge Mannion ordered that Fischer pay $187,010.30 to the victims of his crimes. The United States forfeited $29,697.75 of Fischer’s assets, 24 firearms, ammunition, a suppressor, and other firearms components.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and by numerous local law enforcement authorities throughout northeastern Pennsylvania. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
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San Francisco Resident Sentenced to Nearly 10 Years in Prison for Illegal Possession of A FirearmRead the Press Release
SAN FRANCISCO – Valentino Johnson was sentenced to 114 months in prison for illegally possessing a firearm in the Bayview neighborhood of San Francisco, announced United States Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Rayfield Roundtree. The sentence was handed down today by the Honorable Vince Chhabria, U.S. District Judge.
Johnson was convicted of the charge on August 28, 2015, following a jury trial. On April 4, 2016, the defendant was sentenced to eight years in prison. After a government appeal, the Ninth Circuit Court of Appeals reversed the sentence and remanded to the District Court for resentencing.
The evidence at trial and sentencing showed that Johnson possessed a firearm after sustaining six felony convictions. Evidence in this case also showed that the defendant used the firearm to break into a San Francisco residence. The Court also found that the defendant obstructed justice in connection with this case by attempting to persuade another person to accept responsibility for the firearm.
The San Francisco Police Department was able to make the connection between the firearm and the defendant by testing the firearm through ATF’s National Integrated Ballistic Information Network (NIBIN). In this case, the firearm possessed by Johnson was used by Johnson’s brother to kill another person in the Mission neighborhood of San Francisco in 2011. His brother pleaded guilty to using a firearm in connection with the homicide, but the firearm itself was never recovered by the San Francisco Police Department. In 2014, SFPD discovered the firearm during a parole search of Johnson’s Bayview residence. The NIBIN test results provided key evidence establishing Johnson’s possession of the firearm.
NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. Since the program’s inception in 1999, NIBIN partners have processed approximately 99,000 NIBIN leads and 110,000 NIBIN hits. Approximately 16 million images in the network includes 3.3 million pieces of evidence.
In addition to the prison term, Judge Chhabria sentenced the defendant to a three-year period of supervised release. The defendant has been in custody since his arrest in this matter.
Assistant U.S. Attorneys Daniel Kaleba and Merry Jean Chan are prosecuting the case. The prosecution is the result of an investigation by San Francisco Police Department and ATF.
Sacramento Man Pleads Guilty to Obstruction of Justice and PerjuryRead the Press Release
SACRAMENTO, Calif. —Joseph Woloszyn, 32, of Sacramento, pleaded guilty today to one count of obstruction of justice and four counts of perjury, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 28, 2017, Woloszyn provided false testimony under oath at an evidentiary hearing in the case of United States v. M.W., 2:13-cr-067-KJM. Woloszyn testified on behalf of the defendant and provided false statements related to his gang tattoos, nickname, phone number, and contacts with the defendant. Prior to his testimony, during a recorded jail call, Woloszyn told the defendant “When they come to me, good luck.” Woloszyn further assured the defendant, “I’m going to stay solid all the way through, regardless.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
Woloszyn is scheduled to be sentenced by U.S. District Judge John A. Mendez on January 15, 2019. Woloszyn faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Roswell Man Charged with Federal Child Pornography OffensesRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Las Cruces, N.M., today found probable cause to support a criminal complaint charging Dain Justin Adams, 37, of Roswell, N.M., with child pornography offenses. The Magistrate Judge also remanded Adams into custody pending trial, which has yet to be scheduled.
The FBI arrested Adams on Sept. 19, 2018, on a criminal complaint charging him with possessing and distributing child pornography from May 2018 through June 2018, in Chaves County, N.M. According to the complaint, the investigation leading to Adams’ arrest began in May 2018, when a special agent of the New Mexico Attorney General’s Office who was working in an undercover capacity signed into a peer-to-peer file-sharing network which allegedly was used by individuals who shared child pornography. The special agent learned that an IP Address subscribed to Adams’ residence in Roswell allegedly was being used to share child pornography.
On June 27, 2018, state law enforcement executed a state search warrant on Adams’ residence. While executing the search warrant, law enforcement seized multiple devices including a computer, which allegedly contained at least seven videos of suspected child pornography.
The statutory penalty for a conviction on a distribution of child pornography charge is a mandatory minimum of five years and maximum of 20 years of imprisonment. The statutory penalty for a conviction on a possession of child pornography charge is a maximum of 20 years in 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 Roswell office of the FBI, the New Mexico Attorney General’s Office and the Chaves County Sheriff’s Office. Assistant U.S. Attorneys Marisa A. Ong and Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Rio Rancho Woman Pleads Guilty to Federal Charges Arising Out of Mail Theft SchemeRead the Press Release
ALBUQUERQUE – Felicia Gonzales, 31, of Rio Rancho, N.M., pled guilty today in federal court in Albuquerque, N.M, to a series of federal charges uncovered by a U.S. Postal Inspection Service investigation into a mail theft scheme. Gonzales entered her guilty plea without the benefit of a plea agreement.
U.S. Postal Inspectors arrested Gonzales on April 23, 2018, on a criminal complaint charging her with theft of mail, bank fraud, and identity theft. According to the complaint, the investigation revealed that in March 2018 and April 2018, Gonzales used a counterfeit U.S. Postal Service “arrow key” to access community mailboxes in neighborhoods throughout Albuquerque and steal mail. The investigation also revealed that Gonzales made unauthorized purchases using credit cards that were not delivered to their intended recipients. When she was arrested, Gonzales was armed with a pistol.
Gonzales subsequently was charged in an eleven-count indictment on May 9, 2018, with one count of being a felon in possession of a firearm and ammunition, four counts of possession of stolen mail, two counts of possession of a counterfeit U.S. Postal Service “arrow key,” three counts of bank fraud, and one count of aggravated identity theft. According to the indictment, Gonzales committed the offenses between Feb. 24, 2018 and April 23, 2018, in Bernalillo County, N.M., and elsewhere. The indictment charged Gonzales with committing the postal theft offenses by stealing mail from mailboxes by using a counterfeit U.S. Postal Service “arrow key.” The mail stolen included debit and credit cards with personal identifiers of victims, which were used to commit the bank fraud offenses.
During today’s change of plea hearing, Gonzales plead guilty to all eleven counts of the indictment.
Gonzales’ sentencing hearing has yet to be scheduled. At sentencing, Gonzales faces a maximum penalty of 30 years in federal prison on the bank fraud charges, ten years on the firearms charge, five years on the postal theft charges, and ten years on arrow key theft charges. Gonzales also faces a mandatory term of imprisonment of two years on the aggravated identity theft charge, which must be served consecutive to any other sentence imposed on the other charges.
The U.S. Postal Inspection Service investigated this case, which is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Rio Rancho Felon Sentenced to Seven Years in Prison for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Cory G. Bates, 29, of Rio Rancho, N.M., was sentenced today in federal court in Albuquerque, N.M., to 84 months in prison for violating the federal firearms laws by unlawfully possessing a firearm. Bates will be on supervised release for three years after completing his prison sentence.
Bates, whose prior criminal history includes felony convictions for aggravated burglary with a deadly weapon, armed robbery, aggravated battery with a deadly weapon, and cocaine trafficking, was prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target for federal prosecution violent or repeat offenders with the goal of making communities in New Mexico safer places for people to live and work.
Bates was arrested in June 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on Jan. 9, 2016, in Bernalillo County, N.M. According to the indictment, Bates was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
On Feb. 5, 2018, Bates pled guilty to the indictment and admitted that on Jan. 9, 2016, he possessed a firearm and ammunition despite his status as a convicted felon.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe prosecuted the case.
Queens Man Pleads Guilty to Armed Bank Robbery and Weapons PossessionRead the Press Release
Earlier today, in federal court in Central Islip, Troy Tavares pleaded guilty before United States District Judge Joanna Seybert to armed bank robbery and a firearms possession charge related to his role as the getaway driver in the gunpoint robbery of the Bridgehampton Savings Bank in Hewlett, New York. When sentenced, Tavares faces up to 25 years’ imprisonment for the bank robbery and a minimum of seven years’ imprisonment and up to life in prison for the firearms charge.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty plea.
According to court filings and prior public proceedings in the case, on August 21, 2017, Tavares drove a coconspirator, Pedro Benitez, to the Bridgehampton Savings Bank. While Tavares waited outside in the vehicle, Benitez entered the bank and ordered customers and employees of the bank to the floor at gunpoint and demanded money from bank employees. After Benitez fled the bank with over $12,000, Tavares drove him to a nearby location where they met with other conspirators to split the proceeds. At his guilty plea, Tavares admitted that he had also participated in two additional robberies that the crew committed during the summer of 2017, one in Nassau County and one in Queens. In each of those robberies, Tavares had acted as the getaway driver for Benitez, who entered the banks and robbed the bank employees of the banks’ cash. In total, the robbery crew stole over $70,000 from four banks between July and September of 2017.
In March 2018, Benitez pleaded guilty to armed bank robbery and brandishing a firearm. He has been sentenced to 130 months’ imprisonment. Two other members of the bank robbery crew also pleaded guilty and are awaiting sentence. One other member of the robbery crew is awaiting trial.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Michael Maffei is in charge of the prosecution.
The Defendant:
TROY TAVARES
Age: 22
Far Rockaway, New YorkE.D.N.Y. Docket No. 17-572 (S-1) (JS)
Queens Attorney and Second Individual Indicted for Scheme to Bribe a Witness in Double Homicide Trial on Long IslandRead the Press Release
A superseding indictment was unsealed today in federal court in Brooklyn charging Queens-based criminal defense attorney John Scarpa, Jr., and Charles Gallman, also known as “T.A.,” with violating the Travel Act by bribing a witness who testified in a double-homicide trial in Suffolk County Supreme Court. Scarpa was arrested earlier today and will be arraigned this afternoon in federal court in Brooklyn before United States Magistrate Judge Steven L. Tiscione. Gallman will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Richard A. Brown, District Attorney of Queens County, announced the charges.
“As alleged, the defendants bribed a witness to commit perjury in an effort to help Scarpa’s client, who had committed two execution-style murders, escape justice,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will never tolerate the rigging of a trial and will vigorously prosecute attorneys or anyone else who seeks to undermine the integrity of the judicial process by witness tampering.” Mr. Donoghue also expressed his grateful appreciation to the Office of the Suffolk County District Attorney for its assistance during the investigation.
“Defense attorneys do all they can to help their clients fight criminal charges, which is everyone’s right by law,” stated FBI Assistant Director-in-Charge Sweeney. “However, Mr. Scarpa allegedly broke the law trying to get his client off the hook for murder charges by bribing a witness. Everyone accused deserves the best defense, but attorneys cannot use illegal methods to win in court.”
“We will continue to work with our federal partners to root out corruption in the criminal justice system wherever it is found,” stated Queens District Attorney Brown. “I will say again that integrity is the foundation of our criminal justice system. These allegations go to the core of that foundation and are prejudicial to the administration of justice. The charges today send a strong message to those who would undermine that integrity that they will be held accountable. I commend the United States Attorney’s Office for the Eastern District and the Federal Bureau of Investigation, the Suffolk County District Attorney’s Office and my Rackets, Special Victims and District Attorney’s Detective Bureaus for their vigorous pursuit of justice in this matter.”
As alleged in the indictment and detailed in court filings, the charges stem from an investigation conducted by the Queens County District Attorney’s Office. Court-authorized intercepted communication between Scarpa and Gallman showed how the two men plotted to bribe a witness, Luis Cherry, in a Suffolk County criminal trial against Reginald Ross. Scarpa represented Ross, who was ultimately convicted of the unrelated murders of two men: Raymond Hirt, a road crew flagman killed at his jobsite in May 2010 because Ross was upset about traffic, and John Williams, whom he shot to death in October 2010 as Williams was going to work, mistaking Williams for his brother. Cherry participated in the Williams murder, and had pleaded guilty to that murder as well as another.
On January 13, 2015, Gallman visited Cherry at Downstate Correctional Facility and spoke to him about testifying at Ross’s trial. Thereafter, Gallman reported to Scarpa: “Anything we need, he’s willing. Whichever way you wanna play it, he’s willing.” Later in the conversation Scarpa asked, “So this guy is willing to do whatever?” And Gallman confirmed, “Whatever you need, John. Whatever you need.” Gallman added that there was a “bunch of stuff I wrote down that [Cherry] wants.”
Scarpa called Cherry as a defense witness at trial and led Cherry through perjurious testimony relevant to the Williams murder. For example, Cherry claimed that he had committed the murder alone after he crawled from the driver’s seat and exited through the passenger side of his vehicle with firearms in both hands despite physical evidence that clearly indicated two gunmen were involved. When asked on cross-examination about meeting Gallman, Cherry falsely denied that they had talked about the murder case.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Scarpa and Gallman face up to five years’ imprisonment on each count.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Lindsay K. Gerdes and Andrey Spektor are in charge of the prosecution.
The Defendants:
JOHN SCARPA, JR.
Age: 65
Queens, New YorkCharles gallman (also known as “t.a.”)
Age: 56
Queens, New YorkE.D.N.Y. Docket No. 18-CR-123 (S-1) (CBA)
Pueblo Man Pleads Guilty to Federal Drug ChargeRead the Press Release
DENVER – Robert Ray Deluna, age 26, of Pueblo, Colorado, pled guilty today before U.S. District Court Judge Raymond P. Moore to possession of a controlled substance, U.S. Attorney Bob Troyer and Bureau of Alcohol, Tobacco, Firearms and Explosives Denver Field Division Special Agent in Charge Debbie Livingston announced. Deluna appeared at the hearing in custody, and was remanded at its conclusion. He is scheduled to be sentenced by Judge Moore on December 18, 2018. Deluna was indicted by a federal grand jury in Denver on June 21, 2018.
According to the stipulated facts contained in the defendant’s plea agreement, on March 29, 2018, Colorado Department of Correction Parole Officers in Pueblo were out looking for Deluna for violating the terms of his parole. They found him in the back seat of a vehicle, where he sat with a backpack between his legs.
Pursuant to conditions of his parole, Deluna consented to the search of his property. The parole officers looked inside the backpack and located two electronic scales and baggies. Inside the compartment on the rear of the driver’s seat – directly in front of where he was sitting was a .45 caliber pistol and a zippered bag. Inside the zippered bag were two baggies with Heroin – 4.88 grams in one and .40 grams in the other. Also in the bag was Deluna’s Colorado Identification Card and his Department of Corrections card.
This case was investigated by the Colorado Department of Corrections Office of Parole, the ATF Denver Field Division and the Pueblo Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Kurt Bohn.
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 Office to develop a district crime reduction strategy that incorporates the lessons learned since PSN was launched in 2001.
Owner of Connecticut and New York Pizza Restaurants Pleads Guilty to Federal Tax ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that STEVEN CIOFFI, 32, of Stamford, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to a federal tax offense.
According to court documents and statements made in court, CIOFFI owned 50 percent of Nepperhan Restaurants Group, Inc., doing business as ReNapoli Pizza, in Old Greenwich, Connecticut, and Pinocchio Pizza in Pound Ridge, New York. He also owned 25 percent of Odell Pizza, Inc., doing business as Amore Cucina and Bar in Stamford, Connecticut. CIOFFI’s business partner owned the other interests in these entities, as well as other pizza restaurants.
CIOFFI and others in the businesses engaged in a practice whereby cash was removed from the cash register and not deposited into the restaurant’s operating bank account. The businesses’ outside bookkeeper and accountant used the bank records to determine business gross receipts. When cash was removed from the register and not deposited into the business bank account, the cash would not be reported to the Internal Revenue Service. CIOFFI also knew that certain employees had their wages paid in cash, and that a certain number of the employees were paid either a portion or the entirety of their wages “off the books.” By paying various expenses in cash and “off the books,” CIOFFI, his business partner and others facilitated the manipulation of net income reported to the IRS and the underpayment of withholding taxes to the IRS.
As a result of the scheme, the loss to the IRS in income taxes and employment taxes for the 2013 through 2015 tax years was $122,177.59.
CIOFFI pleaded guilty to one count of aiding and assisting in the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years, a fine of up to $250,000, and full restitution to the IRS.
A sentencing date is not scheduled. CIOFFI is released on a $40,000 bond pending sentencing.
This ongoing investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Organized Crime Drug Enforcement Task Force Established to Go After Large Scale Drug Trafficking Organizations Operating in Southeast MichiganRead the Press Release
United States Attorney Matthew Schneider is proud to announce the establishment of the Southeast Michigan Regional Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force. This is an unprecedented step to co-locate so many federal as well as state and local resources to address the unique challenges in the southeast Michigan region.
This multi-agency Strike Force is composed of personnel from the FBI, Homeland Security Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, U.S. Border Patrol, U.S. Marshals Service, U.S. Postal Inspection Service, and approximately 26 state, local and Canadian law enforcement agencies.
The Department of Justice recognized that Southeast Michigan had both a significant opioid problem and a violent gang problem. Analysis of investigations in the Region found that domestic cartel and violent street gangs are responsible for distribution of Mexican-sourced heroin, fentanyl-laced heroin and pure fentanyl here. Additionally, DOJ noticed a significant increase in overdose deaths as well as identified over 140 neighborhood-based gangs operating in the Region. These gangs were and are facilitating the drug trade and using violence to control their territories and prevent cooperation with law enforcement.
In response to this problem, the Southeast Michigan Strike Force will coordinate investigations to identify, disrupt, dismantle, and prosecute transnational criminal organizations, violent drug trafficking organizations, firearms trafficking organizations, and their subsidiary organizations, which operate throughout the southeast Michigan region, the United States and the world. The Strike Force will focus cooperative investigations on dissolving these organizations, their financial infrastructures, and the violence and associated deaths they bring to our communities.
“While all of us have been working individually to fight gangs and drugs, our individual efforts were not as effective as we wanted,” stated United States Attorney Matthew Schneider. “We know that gangs and cartels work together. So we’re doing the same thing. We’re going to step up our efforts. We are now communicating immediately, sharing intelligence, and planning our attacks against these criminals together.”
“As a part of the Southeast Michigan OCDETF Strike Force, we are committed to a long-term partnership that allows law enforcement to reduce the illegal drug supply by aggressively targeting criminal organizations operating throughout southeast Michigan,” stated DEA Special Agent in Charge Timothy J. Plancon. “Drug trafficking and violence go hand-in-hand, which is why federal, state and local law enforcement are making these dangerous drug trafficking organizations a top priority. By working with our partners, we are able to bring these violent individuals to justice and improve the safety of our communities. We are focused on the current opioid epidemic, but this initiative is ready to adapt to any future drug threat facing southeast Michigan“
“The Strike Force model, which has proven effective in other areas of the country, will certainly be highly successful in the fight against criminal organizations that are flooding our communities with dangerous narcotics. The influx of these drugs into our communities feeds other illicit activities including human trafficking, carjackings, homicides and other gang-related violent crime.” said Special Agent in Charge Timothy R. Slater, FBI Detroit. “Combining the resources and capabilities of the agencies responsible for investigating and prosecuting these crimes will improve our ability to target, disrupt and ultimately dismantle those organizations distributing drugs and contributing to violence in communities throughout Southeast Michigan.”
“As criminal organizations become increasingly sophisticated in their activities, the law enforcement community must continue to partner to leverage our unique capabilities and combined resources to combat this ever evolving threat,” said Steve Francis, Special Agent in Charge of Homeland Security Investigations (HSI) Detroit.
“Special Agent in Charge Manny Muriel, IRS - Criminal Investigation, stated, “The IRS-CI will utilize our expertise as financial investigators and leverage our domestic and international partnerships to combat national and transnational money laundering organizations.” Muriel continued, “Similarly we will continue to work with our law enforcement and private sector partners to repeatedly assess ongoing and emerging money laundering threats.”
Since its inception in October 2017, the members of the Southeast Michigan Regional Strike Force have been responsible for the seizure or over 35 kilograms of fentanyl, 25 kilograms of heroin, 50 kilograms of cocaine, as well as the seizure of 12 weapons and approximately three million dollars in drug proceeds. The seized fentanyl alone would have exponentially fueled the opioid epidemic in the region and was enough to have killed approximately 15 million people based on the lethal dosage threshold. In addition, over 100 people have been arrested. Some of the people arrested by Strike Force members have been sentenced to extensive terms of incarceration related to the delivery of controlled substances which caused the death of those who developed an addiction to opioids.
The local agencies include Michigan State Police, Michigan National Guard, Canton Township Police Department, Detroit Police Department, Northfield Township Police Department, Washtenaw County Sheriff’s Office, Oakland County Sheriff’s Office, Walled Lake Police Department, Shelby Township Police Department, Southgate Police Department, Livonia Police Department, Livingston County Sheriff’s Department, Milan Police Department, Pittsfield Charter Township Police Department, Plymouth Township Police Department, Brownstown Police Department, Woodhaven Police Department, Allen Park Police Department and the Wayne County Airport Authority. The Canadian law enforcement agencies include the London Police Service, Ontario Provincial Police, Royal Canadian Mounted Police, Windsor Police Service and the Canada Border Services Agency. Also included are the Michigan State Attorney General’s Office and Wayne County Prosecutor’s Office.
Newport Man Sentenced to over Seven Years for Conspiring to Distribute over a Kilogram of HeroinRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Todd Shorey, 54 of Newport, Maine, was sentenced today in U.S. District Court by Senior Judge John A. Woodcock, Jr. to 84 months in prison and five years of supervised release for conspiring to distribute over a kilogram of heroin. He was also fined $5,000. Shorey pleaded guilty on April 24, 2017.
According to court records, between May 2015 and January 2016, Shorey conspired with Jamie Akerson and others to obtain large quantities of heroin on a weekly basis from an out-of-state supplier and to have it distributed by others throughout Central Maine.
In imposing the sentence, Judge Woodcock described Shorey as a “traitor” to his community.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department, and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New York Man Sentenced to over Seven Years for Conspiring to Distribute Heroin and CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Brent Hercules, a/k/a “Herc,” 32, of Rochester, New York, was sentenced today in U.S. District Court by Senior Judge John A. Woodcock, Jr. to 87 months in prison and three years of supervised release for conspiring to distribute heroin and cocaine base, commonly known as “crack.”
According to court records, between June 2015 and March 2017, Hercules conspired with others to acquire heroin, fentanyl and crack in Rochester and transport it to Central Maine for distribution. The defendant served as a courier. He transported drugs and drug dealers from Rochester to Central Maine and brought drug proceeds back to Rochester.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Maine Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.