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Wednesday 1 August 2018
Vietnamese National Sentenced for Wire Fraud, Identity Theft and Money Laundering SchemeRead the Press Release
BOSTON – A Vietnamese national was sentenced today in federal court in Boston for his role in an international scheme to use stolen payment card data and personally identifiable information to purchase and re-sell hundreds of thousands of dollars’ worth of consumer goods.
Tuan Dinh Nguyen, 30, a Vietnamese national previously living in Melbourne, Australia, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 42 months in prison and ordered to pay forfeiture of $500,000. In May 2018, Nguyen pleaded guilty to one count of wire fraud conspiracy, one count of money laundering conspiracy, 13 counts of money laundering - aiding and abetting, and one count of aggravated identity theft. Nguyen was indicted in federal court in Boston in August 2015, arrested in Australia in June 2017, and extradited to the United States on Oct. 5, 2017.
Between December 2007 and December 2013, Nguyen and at least three others conspired to use stolen payment card data and personally identifiable information to purchase consumer goods online and to re-sell those items on auction websites, including Amazon, eBay, and Buy.com; they then wired the proceeds overseas.
Nguyen and his co-conspirators created fraudulent accounts on multiple auction websites, or used stolen usernames and passwords to take over subscribers’ legitimate accounts. They then posted popular goods for sale at a discounted price, including Apple merchandise, electronics, personal care items and books. However, Nguyen and his co-conspirators did not own or otherwise have these goods to sell. Instead, when customers of the auction websites purchased and paid for these items, Nguyen and his co-conspirators used stolen payment card and personally identifiable information to buy the items from Walmart.com or other e-commerce websites, and then shipped the items to the auction website customers, who never knew that the items they received had been purchased with stolen credit cards and re-sold to them at discounted prices.
To obtain the proceeds of the scheme, Nguyen and his co-conspirators recruited U.S. residents to withdraw and wire overseas the money that the unwitting customers had paid through the auction websites. In total, Nguyen and his co-conspirators stole and re-sold approximately $500,000 in consumer goods.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. Australia’s Attorney-General’s Department, the Australian Federal Police, and the U.S. Department of Justice’s Office of International Affairs provided assistance in securing Nguyen’s extradition to the United States. Assistant U.S. Attorney Seth Kosto of Lelling’s Cybercrime Unit prosecuted the case.
United States Attorney's Office Secures 10 Year Statutory Maximum Sentence for Felon in Possession of a Firearm, While in the Presence of an Infant Child and CocaineRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that United States District Court Senior Judge Callie V. S. Granade sentenced Harlan Bradley, Jr. on August 1, 2018 to the maximum sentence allowed, 10 years in prison, for his possession of 4 firearms.
According to the evidence at trial, On May 17, 2017, members of the Mobile County Street Enforcement Narcotics Team executed a search warrant on the residence of Bradley. Officers found Bradley in the living room on the sofa with an infant child. Also on the sofa was a bag of cocaine. During the interview, Bradley admitted that he occasionally sold drugs to “…make some extra money to buy weed and chill.”
Throughout the house, officers recovered four firearms- two hand guns and two rifles- one being an AK-47 assault weapon. Bradley, a prior convicted felon, was prohibited by law from possessing firearms and admitted to the officers that he had the weapons for his protection.
A jury found Bradley guilty on April 11, 2018. Harlan Bradley had a criminal history that included felony convictions of Assault, Discharging a Firearm into a Dwelling or Vehicle and being a Prohibited Person in Possession of a Firearm.
ATF Special Agent in Charge Marcus Watson remarked, “The efforts of ATF’s Crime Gun Intelligence leveraged investigative resources and community partnerships that resulted in this sentencing.”The Mobile County Street Enforcement Narcotics Team, Prichard Police Department, Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, Mobile Field office investigated this case. Assistant United States Attorney Christopher Baugh prosecuted the case for the United States Attorney’s Office for the Southern District of Alabama.
U.S. Attorney’s Office Supports Local Non-Profit Organization through Reentry OutreachRead the Press Release
Memphis, TN – As part of the reentry efforts of the U.S. Attorney’s Office, it is important for us to partner with and support agencies and initiatives that provide services to released felons in order to promote successful reintegration into society, employment opportunities, and the ability to lead productive, law-abiding lives. One of those organizations in the Memphis community is Lifeline to Success, led by Executive Director DeAndre D. Brown, Sr. The U.S. Attorney’s Office partners with Lifeline to Success and Pastor Brown in several different reentry initiatives. For more information about the organization, please visit https://www.lifeline2success.org.
For the fourth year, Lifeline to Success is teaming up with Men’s Wearhouse to sponsor and promote a suit donation drive, in order to provide suits for persons who may be in need of appropriate attire for job interviews, reintegration into social settings, and other opportunities after release from custody.
The U.S. Attorney’s Office wants to encourage support for this program, and the attorneys and staff in our office are participating by donating several suits to the drive. We have also encouraged our partners in the Federal Reentry Council, made up of representatives from the Federal Public Defender’s Office, the Federal Bureau of Prisons, U.S. Probation Office, and U.S. Pre-trial Services Office to participate and donate to the suit drive.
U.S. Attorney D. Michael Dunavant said: "The mission of the Department of Justice is to reduce crime by using all available strategies and resources. One of the best ways to reduce recidivism is to provide meaningful support and resources to offenders upon release so that they will have the best chance of successful reentry into the community. The U.S. Attorney’s Office for the Western District of Tennessee is committed to reentry programs that impact public safety in a positive way, and we hope that these suits will facilitate success for the reentrants."
Today, we invited Pastor DeAndre Brown and his Lifeline to Success team members to the U.S. Attorney’s Office to collect the donated suits, to publicly highlight the program, and to challenge other professional offices across Memphis and Shelby County to support and donate to this worthy cause.
U.S. Attorney Announces the Creation of Affirmative Civil Enforcement Strike ForceRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that he has established an Affirmative Civil Enforcement (“ACE”) Strike Force within the Office’s Civil Division.
The ACE Strike Force will investigate and, when necessary, file lawsuits to prosecute fraud and abuse against government programs, including healthcare and procurement fraud, enforce federal civil rights statutes, and combat the opioid crisis. It will work closely with criminal prosecutors to coordinate civil and criminal investigations where appropriate. The ACE Strike Force will investigate cases arising from a number of sources, including those brought under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery.
“We have a deep bench of talented Civil attorneys who all contribute to the successful prosecution of affirmative civil enforcement and will continue to do so,” said U.S. Attorney William M. McSwain. “But with the ACE Strike Force, we will now have additional firepower to focus on these critical matters.”
“The ACE Strike Force will continue the Civil Division’s long history of successfully combating fraud and enforcing important federal laws through civil investigations and actions,” said Civil Division Chief Gregory B. David.
Five Civil Assistant U.S. Attorneys comprise the initial ACE Strike Force. Assistant U.S. Attorney John T. Crutchlow will serve as the team leader. The ACE Strike Force will be supervised by Deputy Civil Chief Charlene Keller Fullmer and Civil Chief Gregory B. David.
Two Clarksburg men sentenced for their roles in a drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two Clarksburg men were sentenced today for their roles in a drug distribution operation, United States Attorney Bill Powell announced.
Ernest Russell Claypool, Jr., age 54, was sentenced to 70 months incarceration. Claypool pled guilty to one count of “Aiding and Abetting the Possession of Firearm in Furtherance of Drug Trafficking Crime” and one count of “Maintaining Drug-Involved Premises-Aiding and Abetting” in March 2018. Claypool admitted to having 20 different firearms, including pistols, shotguns, rifles, and revolvers, during and in relation to a drug trafficking crime. He also admitted to maintaining a property in Clarksburg for distributing heroin and storing and distributing marijuana. The crimes occurred from an unknown date until September 2017 in Harrison County.
Chadley Russell Claypool, age 32, was sentenced to 24 months incarceration. Claypool pled guilty to one count of “Conspiracy to Distribute Heroin” and one count of “Distribution of Fentanyl” in March 2018. He admitted to distributing heroin in Harrison County from an unknown date to September 2017. He also admitted to selling fentanyl in August 2017 in Harrison County.
Assistant U.S. Attorney Traci M. Cook prosecuted the cases on behalf of the government. The case was investigated by the Greater Harrison Drug and Violent Crimes Task Force and the West Virginia State Police Bureau of Criminal Investigation.
Senior U.S. District Judge Irene M. Keeley presided.Tortola Man Apprehended at the Cyril E. King Airport Pleads Guilty to Conspiracy and Possession with the Intent to Distribute 10 Kilograms of CocaineRead the Press Release
St. Thomas, USVI – Ashley Warner, 54, of Tortola, pleaded guilty today in District Court before District Court Judge Curtis V. Gomez, to conspiracy and possession of cocaine with the intent to distribute, United States Attorney Gretchen C.F. Shappert announced. Sentencing is set for December 6, 2018.
According to court documents, Warner was stopped by U.S. Customs and Border Protection (CBP) officers at the Cyril E. King Airport after it was discovered that Warner was attempting to smuggle 10 kilograms of cocaine through the airport to the U.S. mainland in coolers. The white powdery substance discovered inside the coolers, tested positive for cocaine and weighed approximately 10 kilograms.
Warner faces a sentence of not less than 10 years or more than life and a fine of $10,000,000.00.
The case was investigated by the Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) and prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Three Members of Notorious International Cybercrime Group “Fin7” in Custody for Role in Attacking over 100 U.S. CompaniesRead the Press Release
SEATTLE – Three high-ranking members of a sophisticated international cybercrime group operating out of Eastern Europe have been arrested and are currently in custody facing charges filed in U.S. District Court in Seattle, announced U.S. Attorney Annette L. Hayes, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Jay S. Tabb Jr. of the FBI’s Seattle Field Office.
According to three federal indictments unsealed today, Ukrainian nationals Dmytro Fedorov, 44, Fedir Hladyr, 33, and Andrii Kolpakov, 30, are members of a prolific hacking group widely known as FIN7 (also referred to as the Carbanak Group and the Navigator Group, among other names). Since at least 2015, FIN7 members engaged in a highly sophisticated malware campaign to attack more than 100 U.S. companies, predominantly in the restaurant, gaming, and hospitality industries. As set forth in the indictments, FIN7 hacked into thousands of computer systems and stole millions of customer credit and debit card numbers which were used or sold for profit.
In the United States alone, FIN7 successfully breached the computer networks of businesses in 47 states and the District of Columbia, stealing more than 15 million customer card records from over 6,500 individual point-of-sale terminals at more than 3,600 separate business locations. Additional intrusions occurred abroad, including in the United Kingdom, Australia, and France. Companies that have publicly disclosed hacks attributable to FIN7 include such familiar chains as Chipotle Mexican Grill, Chili’s, Arby’s, Red Robin and Jason’s Deli. Additionally here in Western Washington FIN7 targeted the Emerald Queen Casino (EQC) and other local businesses. The Emerald Queen Casino was able to stop the intrusion and no customer data was stolen.
“Protecting consumers and companies who use the internet to conduct business – both large chains and small ‘mom and pop’ stores -- is a top priority for all of us in the Department of Justice,” said U.S. Attorney Annette L. Hayes. “Cyber criminals who believe that they can hide in faraway countries and operate from behind keyboards without getting caught are just plain wrong. We will continue our longstanding work with partners around the world to ensure cyber criminals are identified and held to account for the harm that they do – both to our pocketbooks and our ability to rely on the cyber networks we use.”
“The three Ukrainian nationals indicted today allegedly were part of a prolific hacking group that targeted American companies and citizens by stealing valuable consumer data, including personal credit card information, that they then sold on the Darknet,” said Assistant Attorney General Benczkowski. “Because hackers are committed to finding new ways to harm the American public and our economy, the Department of Justice remains steadfast in its commitment to working with our law enforcement partners to identify, interdict, and prosecute those responsible for these threats.”
“The naming of these FIN7 leaders marks a major step towards dismantling this sophisticated criminal enterprise," said Special Agent in Charge Jay S. Tabb Jr., of the FBI's Seattle Field Office. “As the lead federal agency for cyber-attack investigations, the FBI will continue to work with its law enforcement partners worldwide to pursue the members of this devious group, and hold them accountable for stealing from American businesses and individuals.”
Each of the three FIN7 conspirators is charged with 26 felony counts alleging conspiracy, wire fraud, computer hacking, access device fraud, and aggravated identity theft.
In January 2018, at the request of U.S. officials, foreign authorities separately arrested Ukrainian Fedir Hladyr and a second FIN7 member, Dmytro Fedorov. Hladyr was arrested in Dresden, Germany, and is currently detained in Seattle pending trial. Hladyr allegedly served as FIN7’s systems administrator who, among other things, maintained servers and communication channels used by the organization and held a managerial role by delegating tasks and by providing instruction to other members of the scheme. Hladyr’s trial is currently scheduled for October 22, 2018.
Fedorov, a high-level hacker and manager who allegedly supervised other hackers tasked with breaching the security of victims’ computer systems, was arrested in Bielsko-Biala, Poland. Fedorov remains detained in Poland pending his extradition to the United States.
In late June 2018, foreign authorities arrested a third FIN7 member, Ukrainian Andrii Kolpakov in Lepe, Spain. Kolpakov, also is alleged to be a supervisor of a group of hackers, remains detained in Spain pending the United States’ request for extradition.
According to the indictments, FIN7, through its dozens of members, launched numerous waves of malicious cyberattacks on numerous businesses operating in the United States and abroad. FIN7 carefully crafted email messages that would appear legitimate to a business’ employee, and accompanied emails with telephone calls intended to further legitimize the email. Once an attached file was opened and activated, FIN7 would use an adapted version of the notorious Carbanak malware in addition to an arsenal of other tools to ultimately access and steal payment card data for the business’ customers. Since 2015, many of the stolen payment card numbers have been offered for sale through online underground marketplaces. (Supplemental document “How FIN7 Attacked and Stole Data” explains the scheme in greater detail.)
FIN7 used a front company, Combi Security, purportedly headquartered in Russia and Israel, to provide a guise of legitimacy and to recruit hackers to join the criminal enterprise. Combi Security’s website indicated that it provided a number of security services such as penetration testing. Ironically, the sham company’s website listed multiple U.S. victims among its purported clients.
The charges in the indictments are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The indictments are the result of an investigation conducted by the Seattle Cyber Task Force of the FBI and the U.S. Attorney’s Office for the Western District of Washington, with the assistance of the Justice Department’s Computer Crime and Intellectual Property Section and Office of International Affairs, the National Cyber-Forensics and Training Alliance, numerous computer security firms and financial institutions, FBI offices across the nation and globe, as well as numerous international agencies. Arrests overseas were executed in Poland by the "Shadow Hunters" from CBŚP (Polish Central Bureau of Investigation); in Germany by LKA Sachsen - Dezernat 33, (German State Criminal Police Office) and the Polizeidirektion Dresden (Dresden Police); and in Spain by the Grupo de Seguridad Logica within the Unidad de Investigación Technologica of the Cuerpo Nacional de Policía (Spanish National Police).
This case is being prosecuted by Assistant U.S. Attorneys Francis Franze-Nakamura and Steven Masada of the Western District of Washington, and Trial Attorney Anthony Teelucksingh of the Justice Department’s Computer Crime and Intellectual Property Section.
how_fin7_attacked_and_stole_data.pdfThree Members of Notorious International Cybercrime Group “Fin7” in Custody for Role in Attacking over 100 U.S. companiesRead the Press Release
Three high-ranking members of a sophisticated international cybercrime group operating out of Eastern Europe have been arrested and are currently in custody facing charges filed in U.S. District Court in Seattle, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Annette L. Hayes for the Western District of Washington and Special Agent in Charge Jay S. Tabb Jr. of the FBI Seattle Field Office.
According to three federal indictments unsealed today, Ukrainian nationals Dmytro Fedorov, 44, Fedir Hladyr, 33, and Andrii Kolpakov, 30, are members of a prolific hacking group widely known as FIN7 (also referred to as the Carbanak Group and the Navigator Group, among other names). Since at least 2015, FIN7 members engaged in a highly sophisticated malware campaign targeting more than 100 U.S. companies, predominantly in the restaurant, gaming, and hospitality industries. As set forth in indictments, FIN7 hacked into thousands of computer systems and stole millions of customer credit and debit card numbers, which the group used or sold for profit.
In the United States alone, FIN7 successfully breached the computer networks of companies in 47 states and the District of Columbia, stealing more than 15 million customer card records from over 6,500 individual point-of-sale terminals at more than 3,600 separate business locations. Additional intrusions occurred abroad, including in the United Kingdom, Australia, and France. Companies that have publicly disclosed hacks attributable to FIN7 include such familiar chains as Chipotle Mexican Grill, Chili’s, Arby’s, Red Robin and Jason’s Deli. Additionally in Western Washington, FIN7 targeted other local businesses.
“The three Ukrainian nationals indicted today allegedly were part of a prolific hacking group that targeted American companies and citizens by stealing valuable consumer data, including personal credit card information, that they then sold on the Darknet,” said Assistant Attorney General Benczkowski. “Because hackers are committed to finding new ways to harm the American public and our economy, the Department of Justice remains steadfast in its commitment to working with our law enforcement partners to identify, interdict, and prosecute those responsible for these threats.”
“Protecting consumers and companies who use the internet to conduct business – both large chains and small ‘mom and pop’ stores -- is a top priority for all of us in the Department of Justice,” said U.S. Attorney Hayes. “Cyber criminals who believe that they can hide in faraway countries and operate from behind keyboards without getting caught are just plain wrong. We will continue our longstanding work with partners around the world to ensure cyber criminals are identified and held to account for the harm that they do – both to our pocketbooks and our ability to rely on the cyber networks we use.”
“The naming of these FIN7 leaders marks a major step towards dismantling this sophisticated criminal enterprise,” said Special Agent in Charge Tabb. “As the lead federal agency for cyber-attack investigations, the FBI will continue to work with its law enforcement partners worldwide to pursue the members of this devious group, and hold them accountable for stealing from American businesses and individuals.”
Each of the three FIN7 conspirators is charged with 26 felony counts alleging conspiracy, wire fraud, computer hacking, access device fraud, and aggravated identity theft.
In January 2018, at the request of U.S. officials, foreign authorities separately arrested Ukrainian Fedir Hladyr and a second FIN7 member, Dmytro Fedorov. Hladyr was arrested in Dresden, Germany, and is currently detained in Seattle pending trial. Hladyr allegedly served as FIN7’s systems administrator who, among other things, maintained servers and communication channels used by the organization and held a managerial role by delegating tasks and by providing instruction to other members of the scheme. Hladyr’s trial is currently scheduled for Oct. 22.
Fedorov, a high-level hacker and manager who allegedly supervised other hackers tasked with breaching the security of victims’ computer systems, was arrested in Bielsko-Biala, Poland. Fedorov remains detained in Poland pending his extradition to the United States.
In late June 2018, foreign authorities arrested a third FIN7 member, Ukrainian Andrii Kolpakov in Lepe, Spain. Kolpakov, also alleged to be a supervisor of a group of hackers, remains detained in Spain pending the United States’ request for extradition.
According to the indictments, FIN7, through its dozens of members, launched numerous waves of malicious cyberattacks on numerous businesses operating in the United States and abroad. FIN7 carefully crafted email messages that would appear legitimate to a business’ employee, and accompanied emails with telephone calls intended to further legitimize the email. Once an attached file was opened and activated, FIN7 would use an adapted version of the notorious Carbanak malware in addition to an arsenal of other tools to ultimately access and steal payment card data for the business’ customers. Since 2015, FIN7 sold the data in online underground marketplaces. (Supplemental document “How FIN7 Attacked and Stole Data” explains the scheme in greater detail.)
FIN7 used a front company, Combi Security, purportedly headquartered in Russia and Israel, to provide a guise of legitimacy and to recruit hackers to join the criminal enterprise. Combi Security’s website indicated that it provided a number of security services such as penetration testing. Ironically, the sham company’s website listed multiple U.S. victims among its purported clients.
The charges in the indictments are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The indictments are the result of an investigation conducted by the Seattle Cyber Task Force of the FBI and the U.S. Attorney’s Office for the Western District of Washington, with the assistance of the Justice Department’s Computer Crime and Intellectual Property Section and Office of International Affairs, the National Cyber-Forensics and Training Alliance, numerous computer security firms and financial institutions, FBI offices across the nation and globe, as well as numerous international agencies. Arrests overseas were executed in Poland by the “Shadow Hunters” from CBŚP (Polish Central Bureau of Investigation); in Germany by the LKA Sachsen - Dezernat 33, (German State Criminal Police Office) and the Polizeidirektion Dresden (Dresden Police); and in Spain the Grupo de Seguridad Logica within the Unidad de Investigación Technologica of the Cuerpo Nacional de Policía (Spanish National Police)..
This case is being prosecuted by Assistant U.S. Attorneys Francis Franze-Nakamura and Steven Masada of the Western District of Washington with assistance from Trial Attorney Anthony Teelucksingh of the Justice Department’s Computer Crime and Intellectual Property Section.
Three Indicted for Their Role in A Tax Fraud SchemeRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana Thomas L. Kirsch II announced a ten-count indictment against Yvonna Lee, age 32, of Merrillville; Latonya Foxx, age 31, of Indianapolis; and Tanisha Bledsoe, age 44, of Chicago, Illinois for engaging in a scheme to defraud the Internal Revenue Service.
U.S. Attorney Kirsch said, “We work with the Internal Revenue Service to aggressively investigate and prosecute people who commit tax fraud. Cheating the IRS -- stealing from the United States Treasury -- is stealing from all of us.”
Documents in this case allege the defendants engaged in a tax fraud scheme. They filed hundreds of fraudulent federal tax returns, which returned inflated tax refunds for their clients. In exchange, the defendants received kickbacks from the clients for the inflated refunds. Lee was the recruiter who found clients and obtained personal identifying information that they needed to file tax returns. Lee gave the information to Foxx and Bledsoe who then filed the tax returns with the IRS. To hide their involvement, Foxx and Bledsoe filed the returns without identifying themselves as the preparers. Lee, Foxx, and Bledsoe are charged with wire fraud. Foxx and Lee are also charged with aggravated identify theft for filing some tax returns without the knowledge and consent of the taxpayers.
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 is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorney Maria N. Lerner is prosecuting this case.
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Thief River Falls Chiropractor Indicted on Multiple Counts of Wire Fraud and Identity TheftRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging STEVEN RICHARD WISETH, 35, a Thief River Falls chiropractor, with six counts of wire fraud and two counts of aggravated identity theft. WISETH made his initial appearance earlier today before Magistrate Judge Hildy Bowbeer in U.S. District Court in Saint Paul, Minnesota.
As alleged in the indictment, from approximately March 2013 through April 2015, WISETH, a Doctor of Chiropractic and owner of Health Quest Family Chiropractic (“Health Quest”) in Thief River Falls, Minnesota, orchestrated a scheme to defraud health insurers by submitting and causing the submission of false and fraudulent claims for chiropractic services.
As alleged in the indictment, WISETH’S scheme was dependent on maximizing patient volume at Health Quest, and he held promotional events where he gave away free food and drink, prizes, and gift certificates to induce current and prospective patients to visit Health Quest. After the promotional events, WISETH billed insurance companies for the provision of chiropractic services to substantial numbers of individuals who attended the events, including billing for services that were not provided. In some cases, WISETH used the personal and insurance information of attendees to bill the individuals’ insurance companies for services that were not provided, unbeknownst to the attendee. For example, on February 13, 2014, WISETH held a promotional event at Health Quest that he referred to as “ValenSpine’s Day.” WISETH submitted bills to insurance companies representing that he had treated approximately 219 patients on that day, purporting to have provided approximately 641 services.
As alleged in the indictment, WISETH also submitted false bills for services by misrepresenting the services that were actually provided to patients. For example, WISETH routinely submitted false bills for treatment with a “wobble chair,” which is a device intended to develop core strength. WISETH falsely represented to insurers that the services were performed for at least eight minutes under the direct supervision of a healthcare professional when, in fact, WISETH merely stocked his clinics’ waiting rooms with wobble chairs so that patients would sit in them while waiting for their appointments.
As alleged in the indictment, over the course of the two-year scheme, WISETH billed the insurance companies more than $3.1 million dollars, including bills for hundreds of treatments that were not provided or were overbilled, and the insurance companies paid WISETH and Health Quest more than $1.1 million.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the United States Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.
Defendant Information:
STEVEN RICHARD WISETH, 35
Thief River Falls, Minn.
Charges:
- Wire fraud, 6 counts
- Aggravated identity theft, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Tammy Wilder Sentenced to 15 Years in Prison in Fatal Arson CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Tammy Wilder, age 47, formerly of Barre, Vermont was sentenced on July 30, 2018, on a charge of conspiracy to commit robbery stemming from the fatal arson that occurred in Northfield, Vermont in December 2015. She was also sentenced for her role in making a place available for storing, distributing, and using controlled substances in 2014. United States District Judge Christina Reiss sentenced Wilder to a 15-year term of incarceration, followed by three years of supervised release. Wilder was also ordered to pay restitution to the victims of her offenses in the amount of $620,025.92.
As described in court records, in the fall of 2015, Howard Hoisington, Jonathan Zampieri, Tammy Wilder, Kevin Atwood, and Kim Hoisington committed a series of robberies of drug dealers in the Washington County area of Vermont. Some of these robberies involved a scheme of dousing a person selling drugs with gasoline and threatening them with a lighter to rob them of their drugs. The last of these robberies resulted in a fire that destroyed a building in Northfield and killed innocent bystander Brittany Burt.
On December 14, 2015, Howard Hoisington, Zampieri, Tammy Wilder, Kim Hoisington, and Amanda Wilder drove in Zampieri’s vehicle to pick up Atwood in Montpelier. They all drove to the Cumberland Farms in Northfield where Zampieri filled two mason jars with gasoline. From there, the group drove to the apartment of Efren Serrano on Union Street in Northfield, Vermont, from whom they had arranged to purchase crack cocaine. Zampieri, Howard Hoisington, and Atwood went to Serrano’s apartment and kicked in the front door. They found Serrano and Serrano’s girlfriend, Brittany Burt, in the bedroom. Serrano and Burt were doused with gasoline and the men demanded Serrano’s drugs. When Serrano did not respond, Zampieri pulled out a lighter. The lighter went off, igniting the gasoline vapors and causing the room to burst into flames. Zampieri, Howard Hoisington, and Atwood fled the building. At some point, Serrano was able to run from the building on fire. Serrano sustained life threatening injuries, but he survived. Brittany Burt could not escape the building. She died on the bedroom floor.
Tammy Wilder’s co-defendants, Howard Hoisington, Jonathan Zampieri, Kim Hoisington, and Richard Hoisington, have all pleaded guilty to various charges. Howard Hoisington was sentenced to 24 years in prison for his role in the fatal arson. Richard Hoisington was sentenced to 13 months of imprisonment for conspiring to distribute controlled substances. The other co-defendants await sentencing.
This case provides an example of the United States Attorney’s Office Violent Crime Initiative, aimed at pursuing federal prosecutions involving the intersection of drug trafficking and violence. United States Attorney Christina Nolan commended the efforts of Vermont State Police, Vermont Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Northfield Police Department, Barre City Police Department, and Berlin Police Department. The United States Attorney’s Office worked in partnership with the Washington County State’s Attorney’s Office to investigate and resolve this important matter.
United States Attorney Nolan added, “To describe this crime as senseless and abhorrent would be an understatement. It is a stark example of the horrific violence that too often arises from the trafficking of crack cocaine and other dangerous drugs. Federal prosecutors will work tirelessly with our federal, state, and local law enforcement partners to demonstrate zero tolerance for crimes of such depravity. Resolution and justice for the victims and their families was achieved through the collaborative efforts of our federal, state, and local investigators, and through the teamwork of state and federal prosecutors. We will continue to come together to achieve justice for victims, and peace and security for Vermonters. There is no place for such horrific violence in our state and our charging priorities will so reflect.”
ATF Assistant Special Agent in Charge Lawrence Panetta said, “Arson is a crime of extreme violence that puts the lives of the public and first responders in grave danger. ATF is committed with our local, state, and federal public safety partners to ensure our communities remain free from the dangerous acts arsonists commit and utilize all the necessary resources to bring these individuals to justice.”
“Tammy Wilder’s sentencing brings this case one step closer to resolution for the Burt family and the other victims of these crimes,” added Lieutenant Todd Baxter of the Vermont State Police. “VSP remains committed to preventing and investigating violent crime throughout the State of Vermont, and bringing those who commit violent crimes to justice.”
Tammy Wilder is represented by Ian Carleton and Kevin Lumpkin of Sheehy, Furlong & Behm P.C. The United States is represented by AUSAs Paul Van de Graaf and John Boscia.
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.
Summerville Man Sentenced to Prison for Wire Fraud and Identity TheftRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri Lydon stated today that John Scott Jarrett, age 46, of Summerville, was sentenced in federal court in Charleston, South Carolina, for Wire Fraud and Identity Theft. United States District Judge Richard M. Gergel, of Charleston, sentenced Jarrett to 60 months imprisonment and 3 years Supervised Release.
Evidence in this case established that from 2012 through 2017, Jarrett embezzled more than $810,000 from his employer. Jarrett was the financial comptroller of an audio and video consulting firm in Charleston. To execute the scheme, Jarrett wrote $512,129 in checks from his employer’s company that were made payable to his wife’s maiden name. Jarrett made these checks appear as payments to a vendor of his company, and he used the signature stamp of his employer to forge the checks.
Jarrett also embezzled approximately $300,000 from his company to pay his personal American Express bills. He paid these American Express bills via interstate wires.
In addition to the wire fraud, Jarrett stole the identifying information of his employer and forged his signature to obtain fraudulent loans from various Internet lenders.
Agents from the Federal Bureau of Investigation (FBI) investigated the case. Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.
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Stratford Man Sentenced to 30 Months in Prison for Illegally Possessing Firearms and AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MATTHEW PETROVITCH, 38, of Stratford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 30 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms and ammunition
According to court documents and statements made in court, on September 26, 2017, Stratford Police responded to PETROVITCH’s residence after a female victim reported that PETROVITCH had physically assaulted her and threatened her with a firearm while she was holding a young child. After PETROVITCH was taken into custody, officers searched the residence and seized an AK-74 semiautomatic rifle, a short-barreled shotgun, and more than 350 rounds of assorted ammunition.
The short-barreled shotgun was not registered to him in the National Firearms Registration and Transfer Record, as required.
In March 2000, PETROVITCH was convicted in state court of conspiracy to commit assault in the first degree, and robbery in the third degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On May 8, 2018, PETROVITCH pleaded guilty to one count of possession of a firearm by a previously convicted felon.
PETROVITCH previously pleaded guilty in Bridgeport Superior Court to state charges related to this incident.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Stratford Police Department. The case was prosecuted by Assistant U.S. Attorney Alina P. Reynolds, in coordination with the State’s Attorney for the Fairfield Judicial District.
In 1994, Congress passed the Violence Against Women Act (VAWA) in recognition of the severity of crimes associated with domestic violence, sexual assault, and stalking. To learn more about VAWA and resources that are available, contact the Justice Department’s Office on Violence Against Women.
In an emergency, victims of domestic violence should call 911 or contact state or local law enforcement officials, who can respond to these crimes. Individuals in need of non-emergency assistance can also call the National Domestic Violence Hotline at 1-800-799-SAFE or visit www.TheHotline.org.
Stow woman charged with illegally purchasing firearm while addicted to drugsRead the Press Release
A Stow woman was charged with possession of a firearm by a prohibited person.
Kristen Vilk, 32, was arrested on suspicion of making a straw purchase of a Glock 9 mm pistol in March from a store in North Canton. Further investigation revealed that Vilk overdosed on April 17, and was given two doses of Narcan, according to court documents.
Based on statements made by Vilk’s relatives, it is believed she was addicted to drugs at the time of the purchase of the firearm, according to court documents.
The investigation is ongoing.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Social Security Administration Employee Charged in Scheme to Steal Disability Benefits PaymentsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man employed with the Social Security Administration (SSA) was arrested today for unlawfully accessing the Social Security accounts of individuals and falsifying their records in order to steal government funds for his own use, U.S. Attorney Craig Carpenito announced.
Nicholas Pao, 37, of Egg Harbor Township, New Jersey, was charged by criminal complaint with one count of theft of government funds and five counts of aggravated identity theft. He is scheduled to appear today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case and statements made in court:
Pao was a 10-year employee of the SSA who worked as a claims technical expert in the Egg Harbor Township office, responsible for determining eligibility and payment amounts, processing difficult cases, assisting in case reviews, and making special payment approvals. From December 2014 to July 2018, Pao allegedly used his SSA credentials to access the confidential records of several individuals without their knowledge or authority. Pao would alter their records and make fraudulent changes that caused the SSA to issue Social Security benefits to these individuals. He then allegedly intercepted these benefits, which were issued by way of a Direct Express account and credit card and used the money without the knowledge or consent of the individuals. Pao has allegedly stolen $99,967 in Social Security funds.
The count of theft of government funds is punishable by a maximum potential penalty of 10 years in prison. The counts of aggravated identity theft are each punishable by a statutory mandatory prison sentence of two years that must be served consecutively to any term of imprisonment imposed for the violation of theft of government funds. All the counts are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense.
Anyone who believes they might have been the victim of this scheme is asked to call the SSA Office of the Inspector General at (888) 487-9917.
U.S. Attorney Carpenito credited special agents of the SSA, Office of the Inspector General, under the direction of John F. Grasso, with the investigation leading to today’s charges.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the Criminal Division, Trenton.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Sioux Falls Meth Dealers Sentenced to Federal Prison in Multi-State Drug ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that Alvin Felicianosoto, age 34, of Sioux Falls, South Dakota, who was convicted of conspiracy to distribute 500 grams or more of methamphetamine and possession with intent to distribute a controlled substance, was sentenced to 210 months in federal prison on July 9, 2018, by U.S. District Court Judge Karen E. Schreier. Co-conspirator Orlando Dones-Vargas, age 32, of Sioux Falls, who was convicted of conspiracy to distribute 500 grams or more of methamphetamine and possession with intent to distribute methamphetamine, was sentenced by Judge Schreier to 235 months in federal prison on July 16, 2018.
“These convictions and substantial prison sentences are the result of phenomenal detective work by our law enforcement partners on the Sioux Falls Area Drug Task Force,” said U.S. Attorney Parsons. “We are united in our efforts to eliminate this destructive poison from our communities and to hold those who bring it here accountable for their criminal acts.”
Both sentences will be followed by five years of supervised release. The men were also ordered to each pay $200 to the Federal Crime Victim’s Fund. Dones-Vargas was indicted by a federal grand jury on September 6, 2017. He was found guilty after a jury trial on January 31, 2018. Felicianosoto was indicted by a federal grand jury on September 6, 2017, and was found guilty after a jury trial on February 14, 2018.
The investigation of Felicianosoto and Dones-Vargas revealed their joint involvement in a multi-state drug ring that was responsible for transporting more than 50 pounds of meth to South Dakota. Each pound of meth provides over 1,000 doses (illegal uses) for typical users.
A search warrant was executed at Felicianosoto’s home in Sioux Falls, where law enforcement found about 100 grams of meth in his garage, in addition to the more than 100 grams of meth that he was carrying in his pocket when he was arrested. Law enforcement found an additional four pounds of meth, along with four cocked and loaded handguns, hidden under a bed in what appeared to be a children’s bedroom in an apartment used by Dones-Vargas.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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.
This case was investigated by the Sioux Falls Area Drug Task Force, South Dakota Division of Criminal Investigation, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Sioux Falls Man Sentenced to 72 Months for Bank RobberyRead the Press Release
United States Attorney Ron Parsons announced that U.S. District Judge Karen E. Schreier sentenced a Sioux Falls, South Dakota, man convicted of Bank Robbery.
Cody Maynard, age 27, was sentenced on July 31, 2018, to 72 months in federal prison, followed by 3 years of supervised release. Maynard was also ordered to pay $4,215.36 in restitution, and $100 to the Federal Crime Victims Fund.
According to documents filed in court, on April 27, 2017, Maynard robbed Voyage Federal Credit Union by the use of force, violence, and intimidation. Maynard robbed the bank of $3,600.00. The money belonged to and was in the care, custody, control, management and possession of the Voyage Federal Credit Union, a bank whose deposits were then federally insured by the National Credit Union Administration. During the bank robbery, Maynard wore brass knuckles and threatened to use a gun and a knife.
This case was investigated by the Federal Bureau of Investigation and the Sioux Falls Police Department. The case was prosecuted by Assistant U.S. Attorney Jeremy R. Jehangiri.
Maynard was immediately remanded to the custody of the U.S. Marshals Service.
Sioux City Area Drug Distributors Sentenced to Federal PrisonRead the Press Release
Five men and three women who conspired to distribute methamphetamine in the Sioux City area were sentenced to prison terms ranging from 84 to 204 months following guilty pleas entered over the past year.
Justin Wilde, age 39, of Sioux City, received his prison term after an August 1, 2017, guilty plea; Eduardo Ledesma, age 24, of South Sioux City, Nebraska, received his prison term after an August 23, 2017, guilty plea; Ruben Rios, age 22, of South Sioux City, received his prison term after a September 8, 2017, guilty plea; Adam Doty, age 29, of Sioux City, received his prison term after a September 15, 2017, guilty plea; Stormie Blank, age 33, of South Sioux City, received her prison term after an October 25, 2017, guilty plea; Joanna Gotschall, age 40, of South Sioux City, received her prison term after a November 16, 2017, guilty plea; Melanie Thiebault age 46, and Matthew Ruhland, age 36, both of Sioux City, each received their prison term after their January 19, 2018, guilty pleas. Wilde, Ledesma, Rios, Doty, Blank, Gotschall, Thiebault and Ruhland each pled guilty to conspiracy to distribute methamphetamine.
Information provided by the United States at the sentencings and change of plea hearings showed Rios and Ledesma were multiple pound sources of supply of methamphetamine, cocaine, and marijuana in the area of Sioux City, Iowa and South Sioux City, Nebraska, as well as South Dakota. Ledesma and Rios resided together in the Rios family home in South Sioux City, Nebraska. Ledesma and Rios were leaders of their drug dealing operation, which began in 2014. Many of the drug transactions were initiated from the Rios residence. Evidence gathered by law enforcement and described in the sentencing hearings showed that Rios and Ledesma were also trafficking weapons. During a search of the Rios home, officers discovered a loaded assault rifle, marijuana, methamphetamine, nearly a pound of cocaine, and approximately $150,000 in two different safes. $50,000 of this money was to purchase more drugs, while the remaining money was profit from the drug conspiracy. Ledesma was selling over $25,000 worth of methamphetamine and cocaine each month for more than a year. Wilde was an ounce dealer of methamphetamine and Rios was his primary drug source. Wilde purchased half ounce, one ounce, and two ounce quantities of methamphetamine at a time from Rios at least once per week . At the time of her arrest Thibeault identified Ledesma as her drug source. Thibeault purchased one ounce quantities of methamphetamine from Ledesma at least 10 times. Gotschall was receiving one ounce to one-half pound of methamphetamine daily from Rios and reselling the methamphetamine for $1,000 to $1,300 per ounce. Ruhland and Doty were methamphetamine dealers in the Sioux City, Iowa and were supplied by Ledesma and Rios. Ruhland and Doty were receiving and re-selling multiple ounce quantities of methamphetamine. Blank received ounce quantities of methamphetamine and broke it down to re-sell to others. Rios was Blanks’ methamphetamine supplier.
Wilde was sentenced on January 31, 2018, to 120 months imprisonment; Doty was sentenced on April 27, 2018, to 91 months imprisonment; Blank was sentenced on May 3, 2018, to 90 months imprisonment; Gotschall was sentenced on June 14, 2018, to 120 months imprisonment; Ruhland was sentenced on June 22, 2018, to 84 months imprisonment; Rios and Thibeault were sentenced on June 25, 2018, Rios to 204 months imprisonment and Thibeault to 96 months imprisonment; and Ledesma was sentenced on July 23, 2018, to 180 months imprisonment. Each were sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Wilde, Gotschall, Rios and Ledesma must also each serve a 5-year term of supervised release after the prison term and Doty, Blank, Ruhland and Thibeault must also each serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Wilde, Ledesma, Rios, Doty, Blank, Gotschall, Thibeault, and Ruhland, were each ordered to pay a $100 special assessment.
Wilde, Ledesma, Rios, Doty, Blank, Goschall, Thibeault and Ruhland are each being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4031.
Follow us on Twitter @USAO_NDIA.
Second Postal Carrier Sentenced Prison for Delivering Marijuana Packages to Drug DealersRead the Press Release
PHILADELPHIA — United States Attorney William M. McSwain announced that a second U.S. Postal carrier was sentenced to prison today for taking bribes in exchange for delivering packages containing marijuana to drug dealers. Steven C. Williams, 43, of Philadelphia, was sentenced today to 15 months’ imprisonment.
One of Williams’ co-conspirators, U.S. Postal carrier Felicia Charleston, 36, of Philadelphia, was sentenced in May 2018 to 10 months’ imprisonment.
Williams delivered and attempted to distribute 5,468 kilograms of marijuana. Williams diverted packages to co-conspirators at a variety of locations in West Philadelphia. He pleaded guilty in April 2018.
“We can’t have postal workers moonlighting by conspiring with drug dealers,” said U.S. Attorney McSwain. “Drug dealers do enough damage to our communities without the helping hands of government employees. The vast majority of postal carriers in this district perform their jobs with honesty and integrity. But in this case, the defendant was corrupted by the lure of an easy buck. Prison is a just result and a deterrent to such behavior.”
Williams and Charleston were postal carriers at the West Market Post Office in Philadelphia, and Williams recruited Charleston to assist in the illegal scheme. They both delivered packages to members of a drug organization at 48 N. Hobart Street and other locations in West Philadelphia. The drug dealers then distributed the marijuana to their customers.
“The Postal Service employs 600,000 nationwide, the majority of whom are dedicated, hard-working individuals worthy of America’s trust," said Monica Weyler, U.S. Postal Service Office of Inspector General Special Agent in Charge, Philadelphia. “However, a very small number of them choose to violate that trust by engaging in misconduct or criminal activity. Special agents with the U.S. Postal Service Office of Inspector General work with other law enforcement agencies to find those employees, investigate them, and seek their criminal prosecution and removal from the Postal Service, as we did in this case. To report criminal activity or serious misconduct by postal employees, contact USPS OIG special agents at 888-USPS-OIG or www.uspsoig.gov.”
The case was investigated by the United States Postal Service, Office of Inspector General (USPS-OIG), Homeland Security Investigations (HSI) Border Enforcement Security Taskforce (BEST), and the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations (BNI) and is being prosecuted by Assistant United States Attorneys Anita Eve and Tomika N.S. Patterson.
Salem Woman Pleads Guilty to Illegally Purchasing Firearms for Massachusetts ResidentRead the Press Release
CONCORD - Angelina Keenan, 24, formerly of Salem, New Hampshire, pleaded guilty in federal court to illegally purchasing firearms for a Massachusetts resident, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on two occasions in December 2016, Keenan purchased guns from federally licensed firearms dealers in Hooksett and Pelham. During each purchase, Keenan filled out an ATF Form 4473, a form that all federally licensed firearms dealers are legally required to complete for over-the-counter firearms sales. In filling out the form, Keenan falsely stated that she was purchasing the firearms for herself, when in fact, she was purchasing the guns for a Massachusetts man who could not legally purchase them for himself in New Hampshire. In addition, Keenan represented on the purchase forms that she was not an unlawful drug user, when in fact she was addicted to heroin.
Keenan pleaded guilty to two counts of making a material false statement in connection with the acquisition of a firearm. Her sentencing hearing is scheduled for November 15th, 2018.
“Those who purchase guns for others illegally can endanger the public because the guns often are used to commit violent crimes,” said U.S. Attorney Murray. “Through Project Safe Neighborhoods, the law enforcement community in New Hampshire works each day to keep guns out of the hands of criminals in order to safeguard our community.”
“Firearms trafficking continues to be a top priority for ATF and our law enforcement partners. ATF is committed to identifying and disrupting the sources of illegal firearms which jeopardize the safety of our communities,” said Mickey Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Rapid City Man Found Guilty of Possession of a Firearm by a Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that William Andrews, age 32, was found guilty of Possession of a Firearm by a Prohibited Person following a federal jury trial in Rapid City, South Dakota.
The charge carries a maximum sentence of 10 years in federal prison, and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established that on January 24, 2018, law enforcement officers with the Black Hills Fugitive Task Force found Andrews by himself inside a shed he had built behind a home in Rapid City. Andrews had locked himself inside the shed, which was being used as a bedroom, and was found to be in possession of a Kel-Tec, model PF-9, 9mm pistol. Andrews is prohibited from possessing firearms due to a previous conviction for first degree robbery.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennington County Sheriff’s Office, U.S. Marshals Service, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted and tried the case.
A sentencing date was set for October 9, 2018. Andrews was remanded to the custody of the U.S. Marshals Service pending sentencing.
Rapid City Man Charged with Drug and Firearm CrimesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Conspiracy to Distribute a Controlled Substance, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm by a Prohibited Person.
Dustin Eck, age 34, was charged on May 22, 2018. He appeared before U.S. Magistrate Judge Daneta Wollmann on July 25, 2018, and pleaded not guilty to the charge. The penalty upon conviction is 5-40 years in federal prison and/or a $5,000,000 fine, up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Eck possessing methamphetamine with the intent to distribute it, and also knowingly being in possession of two rifles. The charges are merely an accusation and Eck is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson is prosecuting 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.
Eck was detained pending trial. A trial date has not been set.
Project Huntington: Defendant Netted in Operation Saigon Sunset Pleads Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man that was indicted for his role in a major, multi-state heroin and fentanyl network pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Terrell Redd, 43, entered his guilty plea to an indictment charging him with conspiracy to distribute heroin. The federal indictment also charged 14 other individuals involved in the Peterson Drug Trafficking Organization (DTO) with conspiracy to distribute heroin and fentanyl. Additional Peterson DTO defendants were arrested and charged in Detroit.
“No revolving door. Both Project Huntington and Operation Saigon Sunset are critical to our efforts to dismantle heroin and fentanyl distribution networks and reduce violent crime in and around the City of Huntington,” said United States Attorney Mike Stuart. “I am dead serious about my commitment to drive out criminal elements from Huntington. While the takedown on April 17th of this year was a monumental success, our work is not done until all defendants charged are held accountable for their crimes.”
Redd admitted that in January and February 2018 he conspired with Manget Peterson and Charles Graves, Jr. to sell heroin in the Huntington, WV area. As part of the plea agreement, Redd admitted to distributing heroin to a confidential informant in February 2018.
Redd faces up to 20 years in federal prison when he is sentenced on November 19, 2018.
This investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
The drug prosecution is part of Project Huntington, an effort announced by United States Attorney Mike Stuart in March 2018 in response to the opiate epidemic and violent crime in southern West Virginia.
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Project Huntington Defendant Pleads Guilty to Federal Gun and Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was arrested as part of Project Huntington pled guilty today in federal court to drug and gun charges, announced United States Attorney Mike Stuart. James Christopher Brady, 47, entered guilty pleas to distribution of crack cocaine and possession of an unregistered sawed-off shotgun before United States District Judge Robert C. Chambers. Stuart commended the investigative effort of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Brady was selling drugs AND guns in Huntington,” said United States Attorney Mike Stuart. “There is no doubt that Huntington is a safer city today as a result of the people we took off the streets as part of Project Huntington’s major takedown earlier this year. Still, there is much work left to do. We will not lessen our efforts or reduce our sense of urgency until the criminal elements are driven out of West Virginia.”
On September 22, 2016, a confidential informant met with Brady at Brady’s residence located at 419 9th Street West in Huntington. After negotiating with the informant, Brady left the residence to acquire crack cocaine which Brady agreed to sell to the informant. Brady subsequently returned and distributed approximately 3 grams of crack cocaine to the informant in exchange for $250 in United States currency.
On January 12, 2017, the informant again met with Brady and Brady’s 9th Street West residence and negotiated the purchase of a firearm. Brady and the informant then traveled to a residence on Cook School Road where Brady retrieved the firearm. Brady subsequently sold the firearm to the informant in exchange for $160 in United States currency. After examination, the firearm was determined to be a Savage/Springfield, model 944, 12 gauge weapon made from a shotgun which had a barrel measuring 13 and 7/16 inches and an overall length measuring 22 and 7/8 inches. The firearm had been altered from its manufactured state and, based on the measurements, was required to be registered in the National Firearms Registration and Transfer Record. A review of records revealed that the firearm was not registered.
As part of his plea, Brady also admitted to selling firearms to the informant in Huntington on three additional occasions. Brady admitted that he sold two additional sawed-off shotguns which were not properly registered and an additional .380 caliber pistol. Brady further admitted that he was previously convicted in federal court in Huntington of the felony offense of possession of an unregistered destructive device and thus, he was prohibited from possessing any firearms.
Brady faces up to 30 years in federal prison when he is sentenced on November 19, 2018.
Assistant United States Attorney Joseph F. Adams is handling the prosecution.
This prosecution is part of Project Huntington, an effort announced by United States Attorney Mike Stuart in March 2018 in response to the opiate epidemic and violent crime in southern West Virginia.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Poplar Bluff Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
The United States Attorney's Office announced that Antwoine Carnell Johnson, Age 23, of Poplar Bluff, Missouri, pled guilty to charges of Possession of Heroin with Intent to Distribute, Possession of Methamphetamine with Intent to Distribute, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Johnson appeared before United States District Stephen N. Limbaugh, Jr. on July 31, 2018.
Johnson was arrested after a Missouri State Highway Patrol Officer stopped Johnson for speeding and discovered that his license was revoked. Officers located drug scales, heroin, methamphetamine, a loaded revolver and $6,574.00 in suspected drug proceeds in Johnson’s vehicle. His sentencing is set for November 6th, 2018.
Johnson faces a maximum punishment of 20 years of imprisonment and a fine up to $1,000,000 on the drug charges and not less than five years, nor more than life on the firearm charge.
This case was investigated by the Missouri State Highway Patrol and the Drug Enforcement Administration. Special Assistant United States Attorney Timothy J. Willis handled the prosecution for the Government.
Pitcairn Woman Sentenced to Time Served for Attempted Robbery of Post OfficeRead the Press Release
PITTSBURGH, Pa. – A resident of Pitcairn, Pennsylvania, has been sentenced in federal court to a term of imprisonment of time served after having served 8 months in jail, to be followed by three years of supervised release, on her conviction of Attempted Post Office Robbery, United States Attorney Scott W. Brady announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Kristen Risko, age 24.
According to the information presented to the court, on July 21, 2016, the defendant, wearing a gray hooded sweatshirt with the hood over her head, large dark sunglasses covering her face and holding a metallic object in her right hand, walked into the United States Post Office in Pitcairn, PA. She raised her right hand, pointed it at the clerk, and demanded money. The defendant moved closer to the clerk, demanded money and told him to give her everything that he had. As she got closer, he believed that she was holding a knife. The clerk told her that the police just drove by and that she had better leave because they were coming back any second. He then moved behind a doorframe and out of her view. At that point, the defendant fled the Post Office. Risko was identified the next day. She confessed, but denied using a knife. She claimed that she used a remote control for a space heater. No weapon was recovered.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The United States Postal Inspection Service and the Pitcairn Borough Police Department conducted the investigation leading to the prosecution of Risko.
Owner of Long Island Commercial Check Cashing Companies Indicted for Financial FraudRead the Press Release
An eight-count indictment was unsealed today in federal court in Central Islip charging John Drago, the owner and compliance officer of the Kayla Companies, with multiple criminal violations of the Bank Secrecy Act, including failure to file required Currency Transaction Reports (“CTRs”) for customers receiving in excess of $10,000. Drago is also charged in the indictment with failure to collect and pay taxes. Drago was arrested today, and arraigned this afternoon before United States Magistrate Judge A. Kathleen Tomlinson. Drago was released on a $500,000 bond.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Justin Campbell, Assistant Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the indictment.
“As alleged in the indictment, Drago flagrantly violated his obligations as the owner of check cashing businesses to follow federal regulations designed to prevent such businesses from being used to facilitate money laundering; he also failed to fulfill his responsibility as an employer to pay the proper taxes,” stated United States Attorney Donoghue. “This Office and our law enforcement partners are committed to ensuring the integrity of financial institutions, including check cashing businesses.”
“Check cashers provide a valuable service to our community,” stated IRS-CI Assistant Special Agent-in-Charge Campbell. “However, when they commit tax fraud, IRS-CI will aggressively investigate and seek prosecution of those involved.”
According to the indictment, Drago owned and operated check cashing businesses on Long Island, including Kayla Check Cashing Corp., North Island Check Cashing Corp., South Island Check Cashing Corp., East Island Check Cashing Corp., Bay Shore Check Cashing Corp. and Brentwood Check Cashing Corp. (collectively, the “Kayla Companies”). The operation was administered from the offices of Kayla Check Cashing Corp. in Farmingdale, New York. Hogwarts, Inc., was a management company owned by Drago through which employees of the Kayla Companies were paid.
Financial institutions are required to file a CTR for each transaction in cash in excess of $10,000. In addition, a CTR is required to be filed by the financial institution when multiple checks, the total value of which exceeds $10,000, are cashed in a single day.
As alleged in the indictment, from January 2010 to October 31, 2013, Drago instructed employees to cash multiple checks in excess of $10,000 in a single day for certain customers without filing required CTRs. Between August 1, 2010 and October 31, 2013, Drago directed employees to deposit and cash, over the course of several days, checks that had been submitted together on a single day in amounts in excess of $10,000. Drago also instructed employees to tell certain customers who presented individual checks in amounts exceeding $10,000 to return with multiple checks in amounts that were less than $10,000 to avoid the reporting requirement for such financial transactions. As a result of these practices, Drago is also charged with failing to file CTRs and failing to develop, implement and maintain an effective anti-money laundering program for the Kayla Companies.
In addition, between April 1, 2012 and July 31, 2013, Drago paid overtime wages and commissions to employee of the Kayla Companies in cash and failed to inform the IRS of the payment of these cash wages. Drago falsely underreported to the IRS the gross wages paid to his employees in order to avoid paying the full amount of Federal Insurance Contribution Act taxes that the Kayla Companies owed.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Drago faces a maximum sentence of 10 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Burton T. Ryan, Jr., is in charge of the prosecution.
The Defendant:
JOHN DRAGO
Age: 54
St. James, New YorkE.D.N.Y. Docket No. 18-CR-394 (SJF)
Odessa Tax Return Preparer Sentenced to Two Years in Federal PrisonRead the Press Release
In Midland today, a federal judge sentenced Markinson Auguste, owner of YeYe Tax and Multi Services in Odessa, to two years in federal prison for a scheme to defraud the Internal Revenue Service (IRS), announced United States Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office.
In addition to the prison term, United States District Judge David Counts ordered Auguste to pay a $10,000 fine and restitution in the amount of $251,942 to the IRS.
On April 23, 2018, Auguste pleaded guilty to one count of aiding or assisting in the preparation of a fraudulent federal income tax return. By pleading guilty, Auguste admitted to preparing hundreds of fraudulent tax returns from 2012 and 2016. According to court records, Auguste’s scheme involved adding just enough false income to the lower income tax returns he prepared for his clients, so that those clients would qualify for higher amounts of earned income tax credit. Auguste benefited through both the tax preparation fees as well as receiving a portion of the fraudulent refunds as a kickback. Auguste also claimed unauthorized dependents on other fraudulent tax returns in order to increase tax refunds, and then directed those tax refunds into bank accounts that he controlled.
IRS-Criminal Investigation agents investigated this case. Assistant United States Attorney Glenn Harwood prosecuted this case on behalf of the Government.
Niskayuna Man Charged with Theft of Trade SecretsRead the Press Release
WASHINGTON – Xiaoqing Zheng, 56, of Niskayuna, New York, was arrested today in connection with a criminal complaint charging him with stealing trade secrets belonging to General Electric (GE).
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Grant C. Jaquith for the Northern District of New York, and, Acting Special Agent in Charge Charles Margiotta of the FBI’s Albany Division.
The criminal complaint alleges that on or about July 5, Zheng, an engineer employed by General Electric, used an elaborate and sophisticated means to remove electronic files containing GE’s trade secrets involving its turbine technologies. Specifically, Zheng is alleged to have used steganography to hide data files belonging to GE into an innocuous looking digital picture of a sunset, and then to have e-mailed the digital picture, which contained the stolen GE data files, to Zheng’s e-mail account.
The defendant appeared today in federal court in Albany, New York, before U.S. Magistrate Judge Christian F. Hummel and was ordered detained without bail pending a hearing scheduled for August 2, at 1:30 p.m.
The charge filed against Zheng carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Rick Belliss of the Northern District of New York, and Trial Attorneys Jason McCullough and Matt Chang of the National Security Division’s Counterintelligence and Export Control Section.
New York Man Sentenced to Prison for Trafficking in Endangered Lion and Tiger PartsRead the Press Release
Arongkron “Paul” Malasukum, 42, a resident of Woodside, New York, was sentenced today by U.S. District Judge Amos L. Mazzant, III, in Sherman, Texas, to nine months in prison to be followed by one year of supervised release for illegally trafficking parts from endangered African lions and tigers.
Malasukum previously pleaded guilty before U.S. Magistrate Judge Kimberly C. Priest Johnson to a one count information charging him with wildlife trafficking in violation of the Lacey Act.
In papers filed in federal court, Malasukum admitted to meeting with undercover agents who were working for the U.S. Fish and Wildlife Service, and purchasing a tiger skull from the agents. Malasukum also admitted to purchasing lion skulls from an auction house in Texas through the undercover agents, who were acting as “straw buyers” for Malasukum. Malasukum provided the undercover agents with cash and directed them on which items to bid and ultimately win. After the purchases, Malasukum shipped the tiger and lion skulls from Texas to his home in Woodside, New York. From New York, Malasukum shipped the skulls to Thailand for sale to a wholesale buyer.
As part of his plea, Malasukum admitted that between April 9, 2015 and June 29, 2016, he purchased and exported from the United States to Thailand approximately 68 packages containing skulls, claws, and parts from endangered and protected species, with a total fair market value in excess of $150,000.
The sentence was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Joseph D. Brown for the Eastern District of Texas, and Acting Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service Edward Grace.
“Today’s sentencing is another positive result from the Justice Department’s continued partnership with the U.S. Fish and Wildlife Service in fighting the menace of illegal trade in protected wildlife,” said Acting Assistant Attorney General Wood. “Those who scheme and plot to criminally profit from the exploitation of these creatures will be brought to justice, as the defendant in this case has now learned”
“The defendant in this case profited from the endangered status of African lions and tigers by illegally buying and selling their parts on the black market,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “We will continue to enforce our endangered species laws to protect our beautiful animal resources.”
“We are committed to bringing to justice those who would profit from the illegal international and interstate trafficking of wildlife,” said Acting Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service, Edward Grace. “We thank our state and federal partners for their help in investigating and prosecuting cases on behalf of imperiled species."
There are two sub-species of lions that are listed as threatened and/or endangered under the Endangered Species Act (ESA). Panthera leo melanachaita, found in eastern and southern Africa, is listed as threatened, and Panthera leo leo, found in India and western and central Africa, is listed as endangered. There are only about 1,400 members of the Panthera leo leo species remaining; 900 in 14 African populations and 523 in India. The size and distribution of these populations, population trends, and the severity of the threats to those populations are factors leading to Panthera leo leo being listed as endangered under the ESA. The sub-species Panthera leo melanachaita is believed to number between 17,000 -19,000 and is found across southern and eastern Africa. Although Panthera leo melanachaita populations are increasing overall, research has indicated there are population groups that are in decline due to ongoing threats; as a result, the sub-species Panthera leo melanachaita is listed as threatened under the ESA.
The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement with assistance from the New York State Department of Environmental Conservation, the U. S. Attorney’s Office for the Eastern District of Texas, and the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney James Noble and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
New York Man Charged with Theft of Trade SecretsRead the Press Release
Xiaoqing Zheng, 55, of Niskayuna, New York, was arrested today in connection with a criminal complaint charging him with stealing trade secrets belonging to General Electric (GE).
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Grant C. Jaquith for the Northern District of New York, and, Acting Special Agent in Charge Charles Margiotta of the FBI’s Albany Division.
The criminal complaint alleges that on or about July 5, Zheng, an engineer employed by General Electric, used an elaborate and sophisticated means to remove electronic files containing GE’s trade secrets involving its turbine technologies. Specifically, Zheng is alleged to have used steganography to hide data files belonging to GE into an innocuous looking digital picture of a sunset, and then to have e-mailed the digital picture, which contained the stolen GE data files, to Zheng’s e-mail account.
The defendant appeared today in federal court in Albany, New York, before U.S. Magistrate Judge Christian F. Hummel and was ordered detained without bail pending a hearing scheduled for August 2, at 1:30 p.m.
The charge filed against Zheng carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Rick Belliss of the Northern District of New York, and Trial Attorneys Jason McCullough and Matt Chang of the National Security Division’s Counterintelligence and Export Control Section.
New London Drug Dealer Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANTHONY WHITLEY, 35, of Hartford and New London, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to count of conspiracy to possess with intent to distribute heroin, cocaine and 28 grams or more of cocaine base (“crack”).
According to court documents and statements made in court, on March 3, 2017, a court-authorized search of a New London apartment connected to WHITLEY and his nephew, Bashon Whitley, revealed approximately 14.5 grams of heroin, approximately 27 grams of cocaine, approximately 177 grams of crack cocaine, items used to process and package narcotics for street sale, a .380 caliber semiautomatic handgun, ammunition and $9,180 in cash. Anthony and Bashon Whitley were arrested on state charges at that time.
Judge Meyer scheduled sentencing for October 23, 2018, at which time Anthony Whitley faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. Whitley has been detained since his arrest on March 3, 2017.
On May 30, 2018, Bashon Whitley pleaded guilty to the same charge. He is detained while awaiting sentencing.
This matter is being investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force East and New London Police Department. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
New Jersey Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Newell Mowry, 66, of Paterson, New Jersey, was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to 10 years in prison and 10 years of supervised release for possessing child pornography. He was also ordered to pay $32,500 in restitution to four victims and a $5,000 special assessment to the Domestic Trafficking Victims’ Fund. Mowry pleaded guilty on March 21, 2018.
According to court records, in October 2017, as he reentered the United States from Canada, Mowry possessed a laptop computer containing numerous child pornography files that he downloaded from the internet including files that depicted children under the age of 12.
Mowry faced a mandatory minimum sentence of 10 years because of a 1999 conviction in New York for possessing child pornography.
The investigation was conducted by U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and prosecuted 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. 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.
New York Man Sentenced to Prison for Trafficking in Endangered Lion and Tiger PartsRead the Press Release
https://www.justice.gov/opa/pr/new-york-man-sentenced-prison-trafficking-endangered-lion-and-tiger-parts
WASHINGTON – Arongkron “Paul” Malasukum, 42, a resident of Woodside, New York, was sentenced today by U.S. District Judge Amos L. Mazzant, III, in Sherman, Texas, to nine months in prison to be followed by one year of supervised release for illegally trafficking parts from endangered African lions and tigers.
Malasukum previously pleaded guilty before U.S. Magistrate Judge Kimberly C. Priest Johnson to a one count information charging him with wildlife trafficking in violation of the Lacey Act.
In papers filed in federal court, Malasukum admitted to meeting with undercover agents who were working for the U.S. Fish and Wildlife Service, and purchasing a tiger skull from the agents. Malasukum also admitted to purchasing lion skulls from an auction house in Texas through the undercover agents, who were acting as “straw buyers” for Malasukum. Malasukum provided the undercover agents with cash and directed them on which items to bid and ultimately win. After the purchases, Malasukum shipped the tiger and lion skulls from Texas to his home in Woodside, New York. From New York, Malasukum shipped the skulls to Thailand for sale to a wholesale buyer.
As part of his plea, Malasukum admitted that between April 9, 2015 and June 29, 2016, he purchased and exported from the United States to Thailand approximately 68 packages containing skulls, claws, and parts from endangered and protected species, with a total fair market value in excess of $150,000.
The sentence was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Joseph D. Brown for the Eastern District of Texas, and Acting Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service Edward Grace.
“Today’s sentencing is another positive result from the Justice Department’s continued partnership with the U.S. Fish and Wildlife Service in fighting the menace of illegal trade in protected wildlife,” said Acting Assistant Attorney General Wood. “Those who scheme and plot to criminally profit from the exploitation of these creatures will be brought to justice, as the defendant in this case has now learned”
“The defendant in this case profited from the endangered status of African lions and tigers by illegally buying and selling their parts on the black market,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “We will continue to enforce our endangered species laws to protect our beautiful animal resources.”
“We are committed to bringing to justice those who would profit from the illegal international and interstate trafficking of wildlife,” said Acting Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service, Edward Grace. “We thank our state and federal partners for their help in investigating and prosecuting cases on behalf of imperiled species."
There are two sub-species of lions that are listed as threatened and/or endangered under the Endangered Species Act (ESA). Panthera leo melanachaita, found in eastern and southern Africa, is listed as threatened, and Panthera leo leo, found in India and western and central Africa, is listed as endangered. There are only about 1,400 members of the Panthera leo leo species remaining; 900 in 14 African populations and 523 in India. The size and distribution of these populations, population trends, and the severity of the threats to those populations are factors leading to Panthera leo leo being listed as endangered under the ESA. The sub-species Panthera leo melanachaita is believed to number between 17,000 -19,000 and is found across southern and eastern Africa. Although Panthera leo melanachaita populations are increasing overall, research has indicated there are population groups that are in decline due to ongoing threats; as a result, the sub-species Panthera leo melanachaita is listed as threatened under the ESA.
The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement with assistance from the New York State Department of Environmental Conservation, the U. S. Attorney’s Office for the Eastern District of Texas, and the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney James Noble and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
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Mount Pleasant Speech Therapist Convicted of Health Care Fraud and Aggravated Identity TheftRead the Press Release
Charleston, South Carolina---- Following a four-day trial before U.S. District Judge Richard Gergel, a federal jury convicted Gena Randolph, 44, of Mount Pleasant, of committing a $2 million health care fraud scheme, announced United States Attorney Sherri A. Lydon.
Randolph was convicted of one count of Health Care Fraud, one count of Aggravated Identity Theft, and four counts of Making False Statements Relating to Health Care Matters. Randolph could be sentenced up to 10 years in federal prison on the Health Care Fraud count and up to five years on the False Statement counts, which will be in addition to a mandatory sentence of two years for the count of Aggravated Identity Fraud.
According to evidence presented at trial, Randolph was excluded from Medicaid and Medicare after her 2012 conviction for Filing False Claims with the South Carolina Medicaid Program. As an excluded person, she was prohibited from working for any provider to perform services paid for, in whole or in part, by Medicare and Medicaid.
Over the course of the trial, the Government presented evidence showing that Randolph disguised her ownership and control over Palmetto Speech and Language Associates and Per Diem Healthcare Services, both of which were submitting claims to Medicare and Medicaid. As part of the health care fraud scheme, Randolph submitted claims both for speech therapy services that either were provided by other speech therapists and for services that were never rendered at all. In addition to hearing from the speech therapists in whose names Randolph submitted fraudulent claims, the jury was presented with evidence showing that Randolph submitted claims for services to beneficiaries who were dead.
U.S. Attorney Lydon stated, “This case is a great example of the coordinated efforts of the South Carolina Attorney General’s office and the U.S. Attorney’s office to combat health care fraud. Cases like this send the message to all health care providers that we are committed to stamping out fraud in our state.”
"It is reprehensible that one would steal from federal health care programs intended to serve our country’s most vulnerable population,” said Derrick Jackson, Special Agent in Charge for the Department of Health and Human Services Office of Inspector General. “We will continue to work with our law enforcement partners to bring these criminals to justice.”
The case was investigated by Special Investigator Chris Radcliff of the Medicaid Fraud Control Unit of the South Carolina Attorney General’s office and Special Agent Chris Lott with the United States Department of Health and Human Services – Office of Inspector General. The case was prosecuted by Nancy Cote, Senior Assistant Deputy Attorney General and Director of the Medicaid Fraud Control Unit, and Assistant United States Attorney Matt Austin of the Charleston office.
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Mission Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child, Aggravated Sexual Abuse, and Abusive Sexual Contact.
Iran Small Bear, a/k/a Ivan Small Bear, age 37, was indicted on June 12, 2018. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 30, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is any term of years up to life in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 27, 2016, and April 19, 2018, Small Bear knowingly engaged in, and attempted to engage in, a sexual act and sexual contact with a minor female.
The charges are merely accusations and Small Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Small Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Michigan Physician Pleads Guilty to Conspiracy to Distribute Controlled SubstancesRead the Press Release
A Detroit-area physician pleaded guilty today to conspiracy to distribute controlled substances for his participation in a scheme to unlawfully distribute more than 23,000 pills of Oxycodone.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy Slater of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Timothy J. Plancon of the U.S. Drug Enforcement Administration (DEA)’s Detroit Field Office made the announcement.
Alex Kafi, M.D., 70, of West Bloomfield, Michigan, pleaded guilty to one count of conspiracy to distribute controlled substances before U.S. District Judge Victoria A. Roberts of the Eastern District of Michigan. Sentencing has been scheduled for Jan. 9, 2019 before Judge Roberts.
As part of his guilty plea, Kafi admitted that from 2013 through May 2017, he engaged in a scheme where he wrote medically unnecessary prescriptions for Oxycodone in exchange for cash. Kafi wrote these fraudulent prescriptions often without ever meeting or communicating with the patient. Instead, Kafi conspired with patient marketers, who provided lists of patients to Kafi, along with $300 per prescription of Oxycodone. Kafi admitted the scheme involved approximately 693,000 mg of Oxycodone and he agreed to forfeit $617,208.00, which were proceeds of his criminal activity.
This case was investigated by the FBI, HHS-OIG and the DEA. Trial Attorney Steven Scott of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Michigan City Man Charged in the Robbery of Three BanksRead the Press Release
HAMMOND – Jason Jay Cheek, 41 years old, of Michigan City, Indiana, was charged in U.S. District Court in a Criminal Complaint with Bank Robbery, announced U.S. Attorney Kirsch.
U.S. Attorney Kirsch said, “Bank robbers put the lives of bank employees and customers at risk. I will continue to work with state and local law enforcement to ensure that bank robbers and other violent offenders in the Northern District of Indiana are brought to justice.”
According to the documents in this case, Cheek was charged by Criminal Complaint with three bank robberies; one in Michigan City on June 5, 2018, another bank in Michigan City on July 31, 2018, and a third bank in Portage on July 31, 2018. The Criminal Complaint alleges that Cheek approached the tellers and demanded money, while implying he had a gun.
The United States Attorney's Office emphasized that a Complaint 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 FBI GRIT Task Force with the assistance of the Michigan City and Portage Police Departments. This case will be prosecuted by Assistant United States Attorney Jill R. Koster.
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Mexican National Man Pleads Guilty to Illegally Reentering the United StatesRead the Press Release
Defendant had four prior removals for illegally entering the United States
BECKLEY, W.Va. – Alonso Tapia-Gomez entered a guilty plea to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Tapia-Gomez, 36, of Michoacan, Mexico, faces up to 2 years of incarceration, a 250,000 dollar fine, supervised release for one year, and a special assessment of 100 dollars when he is scheduled to be sentenced on November 8, 2018. Tapia-Gomez also faces removal proceedings at the conclusion of any sentence of incarceration. United States Attorney Mike Stuart praised the work of the West Virginia State Police and Immigration and Customs Enforcement (ICE).
“Four prior removals,” said United States Attorney Mike Stuart. “One would think that Tapia-Gomez would have gotten the message by now. Enter this country legally or face prosecution and deportation. We prosecute 100% of illegal reentry cases and we will continue until those entering illegally go back home, get back in line, and enter our great nation pursuant to our laws.”
On May 15, 2018, Tapia-Gomez was driving a car on Interstate 64 near Beckley, Raleigh County, West Virginia when he was stopped by the West Virginia State Police for speeding. Once stopped, Tapia-Gomez offered to the Trooper a Mexican Consular Identification document instead of a driver’s license. The Trooper immediately contacted ICE agents to confirm alienage. ICE spoke to Tapia-Gomez and confirmed that he was not legally present in the United States. ICE agents drove to the area and placed Tapia-Gomez under arrest. ICE agents further submitted Tapia-Gomez’s fingerprints for a forensic examination. The results of the examination matched him to four prior removals from the United States. One prior removal was in 2009 and three prior removals were in 2010. After being deported on four separate occasions, Tapia-Gomez then illegally reentered the United States without lawful permission from the Secretary of Homeland Security. Tapia-Gomez is a citizen of Mexico.
Assistant United States Attorney Erik S. Goes handled the prosecutions. Judge Irene C. Berger presided over the plea hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Mercer County Man Charged with Possessing Crack CocaineRead the Press Release
PITTSBURGH, PA – A Mercer County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on July 31, named Henry A. Bruce, age 38, of Farrell, Pennsylvania, as the sole defendant.
According to the indictment, on or about June 28, 2018, Bruce possessed with the intent to distribute 28 grams or more of crack cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Rebecca L. Silinski and Troy Rivetti are prosecuting this case on behalf of the government.
The Pennsylvania Office of Attorney General, the Mercer County Drug Task Force, and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
Meat Processor, 2 Company Officials Plead Guilty to Selling Beef, Pork and Poultry They Falsely Claimed Had Been InspectedRead the Press Release
LOS ANGELES – A meat processor that supplied Southern California grocery chains, the company’s owner and a plant manager have pleaded guilty to federal charges related to the sale of “misbranded” beef, pork and poultry products that illegally bore the official USDA mark and falsely indicated the meats had been inspected by federal authorities.
As a result of the illegal conduct related to a facility operated by AA Meat Products in the City of Commerce, investigators with the United States Department of Agriculture seized approximately 568,000 pounds of meat and poultry products, and the USDA issued a Class I recall led to the recovery of another nearly one-half million pounds of meat – all of which had to be destroyed. A Class I recall, according to court documents, is based on a “health hazard situation where there is a reasonable probability that the use of the product will cause serious, adverse health consequences, or death.” AA Meat voluntarily participated in the massive Class I recall to protect public safety.
AA Meat operated a processing facility in Maywood, which was operating under a USDA grant of inspection, where the meat and poultry food products were properly federally inspected, as well as a second facility in Commerce, which was not. The illegal conduct in this case occurred in 2012 when AA Meat misbranded its meat and poultry food products and intended to defraud its customers by falsely claiming that meat processed at its Commerce facility had been federally inspected.
The three defendants who pleaded guilty Tuesday in United States District Court are:
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Golden Key Food, Inc., operating under the business name of AA Meat Products Corp., which pleaded guilty to a felony offense of offering to sell misbranded meat, specifically beef tripe, with the intent to defraud;
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Bai Zhi Yan, who is also known as Pat Yan, 47, of Temple City, the owner of AA Meat, who pleaded guilty to two misdemeanor counts of offering to sell misbranded meat (pork uteri) and poultry products (duck feet); and
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Yan’s wife, Lianjie Kitty Jiang, 44, also of Temple City, the plant manager at AA Meat’s Maywood facility, who pleaded guilty to the same counts as her husband.
The defendants admitted in court documents that the Commerce facility was not operating under a USDA grant of inspection, and they were preparing and selling millions of pounds of misbranded and uninspected meat and poultry food products.
All three defendants pleaded guilty before United States District Judge R. Gary Klausner, who ordered the defendants to appear for sentencing on September 17.
Prosecutors have agreed to recommend that AA Meat be sentenced to five years of probation and ordered to pay a $1 million fine. The company has agreed to be subject to a food safety compliance plan. As for Yan and Jiang, prosecutors will recommend a sentence of two years of probation and 100 hours of community service, as well as a $20,000 fine for Jiang and a $5,000 fine for Yan.
This case is the product of an investigation by the United States Department of Agriculture’s Office of the Inspector General (USDA-OIG) and the USDA Food Safety and Inspection Service (FSIS).
This case is being prosecuted by Assistant United States Attorney Amanda M. Bettinelli of the Environmental and Community Safety Crimes Section.
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McKeesport Woman Scammed Social SecurityRead the Press Release
PITTSBURGH, PA – An Allegheny County resident pleaded guilty in federal court to a charge relating to Social Security fraud, United States Attorney Scott W. Brady announced today.
Kristin Lucas, also known as Kristin Hope Iarrusso, age 45, of McKeesport pleaded guilty to one count of theft of government funds before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that, between November 2012 and October 2014, Lucas received and converted approximately $19,289.00 in Supplemental Security Income benefits to which she knew she was not entitled. Additionally, on or about April 10, 2013, Lucas knowingly made a false statement material to her right to receive Supplemental Security Income benefits, by falsely stating that she had used $8,400 in Supplemental Security Income benefits paid to her from March 1, 2012 to February 28, 2013 for the care and support of a minor child.
Judge Conti scheduled sentencing for November 28, 2018. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation that led to the prosecution of Kristin Lucas.
Man Sentenced to Prison for Attempting to Illegally Smuggle Ammunition and Guns from the U.S. to TaiwanRead the Press Release
PHOENIX - On July 30, 2018, Fu Sheng Yang, 39, of Taipei City, Taiwan, was sentenced by U.S. District Judge G. Murray Snow to 33 months’ imprisonment, to be followed by three years of supervised release. Yang had previously pleaded guilty to one count of attempting to smuggle goods from the United States.
On June 20, 2017, Yang legally entered the United States. During the next two days, he purchased 10,000 rounds of ammunition and took possession of 40 upper receivers with the intention of illegally exporting these items from the United States to Taiwan. He also attempted to arrange for the purchase of an additional 100 firearms. On June 22, 2017, Yang was stopped by the Arizona Department of Public Safety for speeding and was found in possession of the aforementioned ammunition and upper receivers.
The investigation in this case was conducted by Homeland Security Investigations, Arizona Department of Public Safety, and the Phoenix Police Department. The prosecution was handled by Lisa E. Jennis and Kristen Brook, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR 17-00981-PHX-GMS
RELEASE NUMBER: 2018-097_ Yang
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Man Sentenced to Four Years in Prison for Transportation Resulting in the Death of a 16 Year OldRead the Press Release
PHOENIX - On July 30, 2018, Omar Heriberto Robles-Hernandez, 24, of Mazatlán, Sinaloa, Mexico, was sentenced by U.S. District Judge Steven Paul Logan to 48 months’ imprisonment, to be followed by three years of supervised release. Robles-Hernandez had previously pleaded guilty to one count of transportation of illegal aliens resulting in death.
On approximately May 13, 2017, Robles-Hernandez guided eight males (two of whom were juveniles) across the desert from Mexico into Arizona in order to enter the United States illegally. The males were citizens of Mexico and Honduras and were forced to carry backpacks of marijuana, weighing approximately 50 pounds each, during the trip. On May 23, 2017, after ten days of walking in the desert, Robles-Hernandez and the people he was guiding were located by agents of U.S. Customs and Border Protection. Three of them were taken to the hospital where a 16 year old boy died from heat exposure and dehydration caused by the arduous trip through the desert.
The investigation in this case was conducted by Homeland Security Investigations and U.S. Customs and Border Protection. The prosecution was handled by Lisa E. Jennis and Todd M. Allison, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR 17-00980-PHX-SPL
RELEASE NUMBER: 2018-096_ Robles-Hernandez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Man Sentenced for Craigslist Classic Car Fraud SchemeRead the Press Release
NORFOLK, Va. – A Los Angeles man was sentenced today to 63 months in prison for engaging in a fraud conspiracy to defraud purchasers of classic cars and muscle cars on Craigslist and other Internet websites.
According to court documents, Shakir McNeal, 45, and his co-conspirators Anthony V. Newton, Shaquana K. Taylor, Dewrel L. Burleson, and others, would post for sale listings on various Internet websites such as Craigslist, offering to sell 1960s and 1970s classic cars and muscle cars that they never intended to deliver to the buyers. The conspirators posted on Craigslist websites for Minneapolis, Albuquerque, Chattanooga, Los Angeles, Omaha, Peoria, and Atlanta. They would also use multiple telephones, telephone numbers, and email accounts to communicate with interested buyers, and would later abandon such telephone numbers and email accounts after successfully obtaining buyers’ monies.
The conspirators performed various roles, such as communicating with interested buyers, recruiting other conspirators to receive deposits and wire transfers from persons seeking to buy the vehicles, and opening new bank accounts or allowing their existing accounts to be used to receive deposits and transfers for the vehicles. These monies were then shared among the conspirators. McNeal and his co-conspirators stole $143,675 from 14 of his victims.
McNeal pleaded guilty in November 2017 and was originally scheduled to be sentenced in February 2018. After being placed on bond so that he could to return to Los Angeles to be with his ailing mother, McNeal failed appear for his sentencing, and the court issued an arrest warrant for McNeal.
On June 12, law enforcement again arrested McNeal and returned him to Norfolk for sentencing.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Stephen W. Haynie prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-55.
Lincoln Man Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Joe Kelly announced that on August 1, 2018, Rodney P. Mazzulla, 58, of Lincoln, Nebraska, was sentenced to 26 years (312 months) in federal prison for conspiracy to distribute and possess with intent to distribute 50 grams or more of actual (pure) methamphetamine and two counts of possession with intent to distribute actual (pure) methamphetamine. Sentences for all three charges will run concurrent (at the same time) with each other. Following the prison term, Mazzulla will serve five years on supervised release.
A Lincoln jury convicted Mazzulla of the three charges in April of 2018.
During April of 2017, two search warrants were executed at a large storage garage in southwest Lincoln. Mazzulla was living in a camper inside the garage. On April 2, 2017, officers found 49 grams of pure methamphetamine, and on April 22, 2017, an additional 210 grams of pure methamphetamine were found. Witnesses testified that Mazzulla had been involved in the distribution of large amounts of methamphetamine since as early as sometime in 2015. In addition, in July of 2015, Mazzulla was found in possession of a small amount of methamphetamine and told officers he had been obtaining ounce quantities of methamphetamine once or twice a week for about a year, much of which he sold to his employees at a tree service business in Cheney, Nebraska.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lilbourn Man Sentenced to 147 Months for Attempted Carjacking and Firearm ChargesRead the Press Release
The United States Attorney's Office announced that JUSTIN D. PERRY, age 34, of Lilbourn, Missouri, was sentenced to 147 months on one felony count of Felon in Possession of a Firearm, one felony count of Attempted Carjacking and one felony count of Brandishing a Firearm in Furtherance of a Crime of Violence. He appeared before United States District Judge Stephen N. Limbaugh, Jr.
At his plea on March 21, 2018, Perry admitted that on December 4, 2015, he entered a 2004 Ford pickup truck that was owned by another person, while it was parked outside the owner’s residence and unlocked. Perry found a Ruger, 9mm caliber pistol in the truck, took it inside the residence and approached the owner. Perry pointed the pistol at the owner and demanded the keys to his Ford truck. The victim looked at the pistol and recognized it as his own pistol. The victim spoke to Perry and convinced Perry to allow the victim to drive Perry to Lilbourn, Missouri. The victim went into his bedroom by himself to get dressed. While there, the victim called police officers and told them of the situation. Perry and the victim got in the truck, with the victim driving Perry toward Lilbourn. A Missouri State Highway Patrol officer had been alerted as to the crime and was looking for the victim’s truck. The officer got behind the victim’s truck and turned on his emergency lights. The victim pulled the truck to the side of the road. Perry attempted to flee on foot, but was soon captured.
Perry has previous convictions for Stealing a Motor Vehicle, Possession of a Controlled Substance, and Driving While Intoxicated. He had been sentenced to serve a term of state imprisonment of 15 years. The federal sentence was ordered to be served consecutively to the state sentence.
This case was investigated by the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Keith D. Sorrell handled the prosecution for the Government.
Lebanon Doctor Convicted of Federal Drug Distribution Charges Following Two Week Jury TrialRead the Press Release
Abingdon, VIRGINIA – A medical doctor who operated two rural healthcare practices in Lebanon, Virginia was convicted today of federal drug and healthcare fraud charges. First Assistant United States Attorney Daniel P. Bubar and Virginia Attorney General Mark Herring made the announcement.
Following more than two weeks of trial in U.S. District Court in Abingdon, Dr. Dwight L. Bailey, 65, of Lebanon, Va., was convicted of all 63 counts charged against him. Bailey, who operated Family Healthcare Associates of Southwest VA and Ridgewood Health Care Clinic, was convicted of illegally prescribing drugs to his patients. Evidence at trial established that Dr. Bailey and the other providers in his office continually wrote prescriptions for opiates, benzodiazepines, and sleeping pills to patients who were clearly misusing, abusing, and diverting those controlled substances. Most of the patients at Bailey’s clinic were receiving an opiate and/or a benzodiazepine. Bailey’s income from his clinic and work at the emergency room topped $750,000 in a single year.
Specifically, Dr. Bailey was convicted of one count of conspiracy to distribute schedule II controlled substances without a legitimate medical purpose, one count of conspiracy to distribute schedule III controlled substances without a legitimate medical purpose, one count of conspiracy to distribute schedule IV controlled substances without a legitimate medical purpose, one count of conspiracy to distribute suboxone, one count of conspiracy to commit health care fraud, 24 counts of distribution of schedule II controlled substances without a legitimate medical purpose, three count of distribution of schedule III controlled substances without a legitimate medical purpose, 32 counts of distribution of a schedule IV controlled substances without a legitimate medical purpose, and one count of maintaining a place for the purpose of distributing controlled substances.
“This conviction underscores our office’s commitment to holding healthcare providers, who put greed above the safety of their community and patients, accountable for their role in the opioid crisis,” said First Assistant United States Attorney Bubar. “As a top priority, we will continue to vigorously prosecute those responsible for causing opioids to devastate our communities.”
“Prescription drugs have played a major role in the ongoing opioid crisis in Virginia and medical professionals who illegally distribute these highly addictive drugs need to be brought to justice,” said Attorney General Mark Herring. “My team and I have worked hard to bring enforcement action against hundreds of medical professionals who have overprescribed, distributed or stolen prescription drugs as part of our approach to combating the opioid crisis. I want to thank the U.S. Attorney’s office for their partnership in this case.”
Sentencing is scheduled for January 3, 2019, at 1:30 p.m. before United States District Judge James P. Jones in Abingdon.
The investigation of the case was conducted by the Virginia Medicaid Fraud Control Unit and the Virginia State Police. The case was prosecuted by Special Assistant United States Attorneys/Virginia Attorneys General Janine Myatt and Nicole S. Terry and Assistant United States Attorney Randy Ramseyer.
Lawrence Man Sentenced to 37 Months in Federal Prison for Oxycodone TraffickingRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that John Jacome, 35, of Lawrence, Massachusetts, was sentenced to serve 37 months in federal prison for oxycodone trafficking.
Court documents and statements in court showed that on four separate occasions from January to May of 2017, Jacome sold quantities of oxycodone pills to undercover DEA agents at a location in Kingston. On June 19, 2017, Jacome was arrested by the New Hampshire State Police during a traffic stop after Jacome was found to be in possession of 500 oxycodone pills. In total, Jacome distributed or possessed with the intent to distribute over 1,500 oxycodone pills.
Jacome pleaded guilty on March 20, 2018, to four counts of distributing oxycodone and one count of possession of oxycodone with the intent to distribute. After serving prison sentence, he will be on supervised release for three years.
“The illegal distribution of oxycodone and other opioids presents a serious hazard to public health and safety,” said U.S. Attorney Murray. “Many of those who struggle with addiction to heroin or fentanyl began by using oxycodone. We will continue to work in conjunction with our law enforcement partners to identify and prosecute those who unlawfully distribute these deadly substances.”
“The DEA is committed to investigating and bringing to justice those who illicitly distribute oxycodone,” said DEA Special Agent in Charge Brian D. Boyle. “Opiate abuse is a major problem in New Hampshire and throughout New England. The diversion of prescription pain killers, in this case oxycodone, contributes to the widespread abuse of opiates, is the gateway to heroin and fentanyl addiction, and is devastating our communities. This investigation demonstrates the strength of collaborative law enforcement efforts in the Granite State to aggressively pursue any group or individual that traffics these drugs.”
This investigation was conducted by the DEA and the New Hampshire State Police. Assistant United States Attorney Jennifer Cole Davis prosecuted the case.
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Jury Finds Quitman Convicted Sex Offender Guilty of Possession of Child PornographyRead the Press Release
MACON: The United States Attorney for the Middle District of Georgia, Charles E. Peeler, announces that Ferrell Walker, Jr., a/k/a “Sonny,” age 49, of Quitman, Georgia, was found guilty by a jury of possession of child pornography in the Valdosta Division of the Middle District of Georgia on July 31, 2018, after two days of trial. Mr. Walker is facing a minimum mandatory term of imprisonment of 10 years and a maximum term of imprisonment of 20 years without parole. Sentencing in this case is set for November 7, 2018.
Mr. Walker was previously convicted of possession of child pornography in the Valdosta Division of the Middle District of Georgia in 2007 and sentenced to 84 months in prison. Following his release from prison, Mr. Walker was under the supervision of the United States Probation Office. During a search of his home, U.S. Probation Officers recovered a Samsung cellular telephone hidden in a pillowcase in Mr. Walker’s bedroom. The phone contained approximately 1,000 images of child pornography. Many of the images were of pre-pubescent children as young as two years of age, and depicted sadomasochistic conduct, such as rape.
“Mr. Walker’s conviction demonstrates that child pornography is not a victimless crime, but rather the horrific depiction of the sexual abuse of children,” said United States Attorney Charles E. Peeler. “To those who choose to view child pornography take note: federal and state law enforcement officials are teaming up to take you down. Providing the citizens of Middle Georgia with the safe neighborhoods they deserve is the top priority of this office, and I thank law enforcement for their hard work in this matter.”
“Each time a sexual predator like Mr. Walker views the unconscionable images of innocent young children being abused, the children are re-victimized. Since he did not learn the first time he was convicted of the same crime, hopefully the sentencing for this conviction will give him even more time when he cannot victimize any more children,” said Ricardo Grave de Peralta, Acting Special Agent in Charge (A/SAC) of FBI Atlanta.
This case was investigated by the United States Probation Office and the Federal Bureau of Investigation with assistance from the Tift and Lowndes County Sheriff’s Offices. Assistant U.S. Attorneys Julia C. Bowen and Jim Crane are prosecuting the case for the Government.
Questions regarding this case should be addressed to Pamela Lightsey, Public Information Officer, at 478-731-1824 or [email protected].