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Friday 29 June 2018
Two Lawyers Sentenced in Federal Court for Wire Fraud Scheme Against Johnson ControlsRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced today that Scott Hess, a 54-year old resident of Menominee Falls, Wisconsin, and Craig Hilborn, a 55-year old resident of Birmingham, Michigan, were sentenced by the Honorable J.P. Stadtmueller for their participation in a wire fraud scheme.
Until late 2015, Hess was an in-house attorney at Johnson Controls, Inc., in Milwaukee, Wisconsin. Hilborn ran his own law firm in Michigan. Together, Hess and Hilborn devised and executed a scheme to defraud Johnson Controls: Hess created fraudulent invoices for legal work purportedly completed by Hilborn’s law firm. Hess then approved those invoices on behalf of his employer, causing Johnson Controls to pay Hilborn’s law firm the invoiced amounts. In reality, Hilborn’s law firm did not perform any meaningful legal work for Johnson Controls. Hess and Hilborn carried out the scheme from 2000 through 2015, in the process stealing approximately $4.5 million from Johnson Controls.
In March and April of 2018, Hess and Hilborn both pleaded guilty to two counts of wire fraud, in violation of Title 18 United States Code § 1343. On June 15, 2018, the Honorable J.P. Stadtmueller sentenced Hess to 32 months in prison, three years supervised release and a $90,000 fine. On June 28, 2018, the Honorable J.P. Stadtmueller sentenced Hilborn to 21 months in prison, two year’s supervised release and a $60,000 fine. Both Hess and Hilborn were ordered to pay full restitution to Johnson Controls.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rebecca Taibleson.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Two Broward County Residents Sentenced to Prison for Selling Fentanyl, Heroin and CocaineRead the Press Release
The ringleader of a fentanyl, heroin and cocaine distribution center was sentenced to 24 years in prison. His co-defendant was sentenced to more than 4 years in prison, for helping to distribute the controlled substances.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Rick Maglione, Chief, Fort Lauderdale Police Department and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
On April 18, 2018, Lenden Pendergrass, 54, and Heather Loiola, 30, both of Fort Lauderdale, previously plead guilty to conspiring to possess with intent to distribute fentanyl, in violation of Title 21, United States Code, Section 846 and possession with intent to distribute fentanyl and crack cocaine, in violation of Title 21, United States Code, Section 841. Pendergrass also plead guilty to being a felon unlawfully in possession of a firearm and ammunition, in violation of Title 18, United States Code, Section 922(g). United States District Judge Federico A. Moreno sentenced Pendergrass to 292 months in prison and Loiola to 57 months in prison. In addition, both defendants were sentenced to 3 years of supervised release.
According to the court record, from on or about July 26, 2017, through on or about February 23, 2018, Pendergrass and Loiola were engaged in a conspiracy to distribute fentanyl. Pendergrass operated the narcotics distribution center from his residence in Fort Lauderdale, Florida. He would sell what he claimed to be heroin, but in fact was either fentanyl or a mixture of fentanyl and cocaine. He also sold crack cocaine. Loiola worked as a drug distributor for Pendergrass, who possessed and caused the distribution of approximately four ounces of fentanyl a week.
On December 23, 2017, a victim purchased purported heroin, from Loiola, that had been supplied by Pendergrass. The victim ingested the purported heroin that same day and overdosed. On December 26, 2107, the victim passed away. The medical examiner ruled it a possible opioid overdose.
On January 31, 2018, the Fort Lauderdale Police Department stopped a vehicle driven by an individual who resided at Pendergrass’s house. A deceased adult male was found in the backseat of the vehicle. The victim purchased purported heroin from Pendergrass’s residence.
On February 23, 2018, during the execution of a search warrant at Pendergrass’s residence, law enforcement recovered approximately four ounces of fentanyl, containing no heroin, a 9mm semi-automatic handgun with 6 rounds of ammunition, approximately half an ounce of crack cocaine, two scales and $1,596.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Greenberg commends the investigative efforts of the DEA, Fort Lauderdale Police Department and FBI. Mr. Greenberg thanked the Sunrise Police Department and Coral Springs Police Department for their assistance with this matter. This case was prosecuted by Assistant United States Attorneys Francis I. Viamontes and Neil Karadbil. Assistant United States Attorney Robert J. Brady, Jr. also provided assistance.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Twenty-Four Alleged MS-13 Members Facing Federal Indictment for Violent Racketeering, Murder, and Money Laundering ConspiraciesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a third superseding indictment charging twenty-four alleged members and associates of the gang MS-13. The indictment was returned on June 27, 2018 and unsealed yesterday.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Chief Edward G. Hargis of the Frederick City Police Department; Frederick County State’s Attorney J. Charles Smith, III; Chief Timothy J. Altomare of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Wes Adams; Chief Henry P. Stawinski, III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
United States Attorney for the District of Maryland Robert K. Hur stated “MS-13 is one of the most violent and ruthless gangs on the streets today. Working with our state and local partners, and using the tools of our Organized Crime Drug Enforcement Task Forces, we are determined to dismantle this organization to make our communities in Maryland safer.”
“MS-13 is ravaging communities throughout the United States with brutal violence, recruiting children to their murderous ranks, destroying families, and leaving behind countless victims,” said Acting Assistant Attorney General Cronan. “This indictment — which charges two dozen alleged MS-13 members with senseless acts of violence — is the latest example of the Department of Justice’s unwavering commitment to combatting violent gangs that prey on communities, whether in Maryland or elsewhere in our country.”
“This indictment is a direct result of the hard work and dedication shared by state, local and federal authorities in their efforts to combat violent gangs in our Maryland communities,” said Special Agent in Charge Gordon B. Johnson, of the FBI's Baltimore Division. “We are committed to combating this epidemic of violence that often takes young lives and creates fear in our communities. The FBI and our partners will aggressively pursue gangs wherever they surface and are steadfast to making Maryland a safe place for our citizens.”
“We will not allow MS-13 and its members or their affiliates to bring their nefarious and deadly activities into our neighborhoods,” said Acting Special Agent in Charge Cardell T. Morant. “I am proud of the dedicated agents who have duly executed their duties in our collective pursuit of law, order and justice.”
Twenty-one defendants are charged with conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13, including:
Jorge Raul Guerra Castillo, a/k/a “Pelon,” age 36;
Carlos Hernandez Diaz, a/k/a “Positivo,” age 25;
Milton Portillo Rodriguez, a/k/a “Little Gangster,” and “Seco,” age 23;
Juan Carlos Sandoval Rodriguez, a/k/a “Picaro,” age 19;
Francisco Ramirez Pena, a/k/a “Tepo,” and “Advertencia,” age 24;
Jose Alberto Sibrian Garcia, a/k/a “Chango,” age 26;
Darwin Arias Mejia, a/k/a “City,” and “City Boy,” age 25;
Miguel Lopez Abrego, a/k/a “Timido,” age 30;
Albaro Rosa Moreno, a/k/a “Slow,” age 23;
Ervin Arrue Figureoa, a/k/a “Tricky,” age 19;
Ronald Mendez Sosa, age 20;
Edwin Ruiz Urrutia, a/k/a “Sylvestre,” age 19;
Brenda Argueta Argueta, a/k/a “Prima,” age 19;
Carlos Ventura Morales, a/k/a “Pantaya,” age 30; and
Danny Hernandez Solorzano, a/k/a “Titre,” age 20.The names of six other defendants charged in the racketeering conspiracy remain sealed.
In addition, Darvin Guerra Zacarias, a/k/a “Chapin,” age 26, and Luis Fernando Cruz Rodriguez, a/k/a “Catra,” age 21, are charged with conspiracy to commit murder in aid of racketeering, along with Guerra Castillo, Hernandez Diaz, Portillo Rodriguez, Sandoval Rodriguez, Ramirez Pena, Arias Mejia, Rosa Moreno, Arrue Figueroa, Mendez Sosa, Ruiz Urrutia, and Argueta Argueta.
Samuel Diaz-Ramos, a/k/a “Pequeno,” age 32, is charged with money laundering conspiracy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. All of the defendants except for Rosa Moreno were allegedly members and associates of the Fulton Locotes Salvatrucha clique of MS-13. The indictment alleges that Rosa Moreno was a member and associate of the Parkview Locos Salvatrucha clique of MS-13.
The six-count indictment alleges that from 2015 and continuing through 2017, MS-13 members and associates engaged in racketeering activity that included murders, conspiracies to commit murder, attempted murders, extortion, robbery, kidnapping, drug trafficking, and money laundering.
Specifically, the indictment alleges that the defendants murdered five individuals in Frederick, Anne Arundel, and Montgomery Counties, dismembering three of the victims. In addition, the defendants allegedly conspired to murder eight individuals, maiming and assaulting one of the individuals with a machete, shooting one individual in the head, and kidnapping and threatening another individual with a firearm to extract payment for extortion.
The maximum sentence for the racketeering conspiracy is 20 years in prison, or up to life if special circumstances are proven; a maximum of 10 years in prison for conspiracy to commit murder in aid of racketeering; and a maximum of 20 years in prison for money laundering conspiracy. Initial appearances for the defendants began on June 28, 2018, in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI; HSI; the Frederick City Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark and Matthew DellaBetta, and Trial Attorney Catherine K. Dick of the Department of Justice’s Organized Crime and Gang Section who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Twenty-Four Alleged MS-13 Members Facing Federal Indictment for Violent Racketeering, Murder, and Money Laundering ConspiraciesRead the Press Release
A federal grand jury has returned a third superseding indictment charging 24 alleged members and associates of the gang MS-13. The indictment was returned on June 27, and unsealed yesterday.
The indictment was announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland; Special Agent in Charge Gordon B. Johnson of the FBI, Baltimore Field Office; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Chief Edward G. Hargis of the Frederick City Police Department; Frederick County State’s Attorney J. Charles Smith III; Chief Timothy J. Altomare of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Wes Adams; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department and Montgomery County State’s Attorney John McCarthy.
“MS-13 is ravaging communities throughout the United States with brutal violence, recruiting children to their murderous ranks, destroying families, and leaving behind countless victims,” said Acting Assistant Attorney General Cronan. “This indictment — which charges two dozen alleged MS-13 members with senseless acts of violence — is the latest example of the Department of Justice’s unwavering commitment to combatting violent gangs that prey on communities, whether in Maryland or elsewhere in our country.”
“MS-13 is one of the most violent and ruthless gangs on the streets today,” said U.S. Attorney Hur. “Working with our state and local partners, and using the tools of our Organized Crime Drug Enforcement Task Forces, we are determined to dismantle this organization to make our communities in Maryland safer.”
“This indictment is a direct result of the hard work and dedication shared by state, local and federal authorities in their efforts to combat violent gangs in our Maryland communities,” said Special Agent in Charge Gordon B. Johnson, of the FBI's Baltimore Division. “We are committed to combating this epidemic of violence that often takes young lives and creates fear in our communities. The FBI and our partners will aggressively pursue gangs wherever they surface and are steadfast to making Maryland a safe place for our citizens.”
“We will not allow MS-13 and its members or their affiliates to bring their nefarious and deadly activities into our neighborhoods,” said Acting Special Agent in Charge Cardell T. Morant. “I am proud of the dedicated agents who have duly executed their duties in our collective pursuit of law, order and justice.”
Twenty-one defendants are charged with conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including:
- Jorge Raul Guerra Castillo, aka “Pelon,”36;
- Carlos Hernandez Diaz, aka “Positivo,” 25;
- Milton Portillo Rodriguez, aka “Little Gangster,” and “Seco,” 23;
- Juan Carlos Sandoval Rodriguez, aka “Picaro,” 19;
- Francisco Ramirez Pena, aka “Tepo,” and “Advertencia,” 24;
- Jose Alberto Sibrian Garcia, aka “Chango,” 26;
- Darwin Arias Mejia, aka “City,” and “City Boy,” 25;
- Miguel Lopez Abrego, aka “Timido,” 30;
- Albaro Rosa Moreno, aka “Slow,” 23;
- Ervin Arrue Figureoa, aka “Tricky,” 19;
- Ronald Mendez Sosa, 20;
- Edwin Ruiz Urrutia, aka “Sylvestre,” 19:
- Brenda Argueta Arguete, aka “Prima,” 19;
- Carlos Ventura Morales, aka “Pantaya,” 30; and
- Danny Hernandez Solorzano, aka “Titre,” 20.
The names of six other defendants charged in the racketeering conspiracy remain sealed.
In addition, Darvin Guerra Zacarias, aka “Chapin,” 26, and Luis Fernando Cruz Rodriguez, aka “Catra,” 21, are charged with conspiracy to commit murder in aid of racketeering, along with Guerra Castillo, Hernandez Diaz, Portillo Rodriguez, Sandoval Rodriguez, Ramirez Pena, Arias Mejia, Rosa Moreno, Arrue Figueroa, Mendez Sosa, Ruiz Urrutia, and Argueta Argueta.
Samuel Diaz-Ramos, aka “Pequeno,” 32, is charged with money laundering conspiracy.
According to the indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, allegedly operate throughout Frederick County, Anne Arundel County, Prince George’s County and Montgomery County, Maryland. All of the defendants except for Rosa Moreno were allegedly members and associates of the Fulton Locotes Salvatrucha Fulton clique of MS-13. Rosa Moreno was an alleged member and associate of the Parkview Locos Salvatrucha clique Parkview of MS-13.
The six-count indictment alleges that from 2015 and continuing through 2017, MS-13 members and associates engaged in racketeering activity that included murders, conspiracies to commit murder, attempted murders, extortion, robbery, kidnapping, drug trafficking and money laundering.
Specifically, the indictment alleges that the defendants murdered five individuals in Frederick, Anne Arundel, and Montgomery Counties, Maryland, dismembering three of them. In addition, the defendants allegedly conspired to murder eight individuals, maiming and assaulting one of the individuals with a machete, shooting one individual in the head, and kidnapping and threatening another individual with a firearm to extract payment for extortion.
Initial appearances for the defendants were scheduled in U.S. District Court in Baltimore starting yesterday.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by FBI Baltimore Field Office; HSI Baltimore; the Frederick City Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County States Attorneys with assistance from the Baltimore County Police Department. Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kenneth S. Clark and Matthew Dellabetta of the District of Maryland are prosecuting this Organized Crime Drug Enforcement Task Force case.
Trial Date Set for Four Defendants Indicted on Meth Trafficking Charges in PanaRead the Press Release
SPRINGFIELD, Ill. – Trial has been scheduled on Aug. 3, 2018, for three Pana, Ill., defendants and a Missouri man charged with trafficking methamphetamine. Claudette Borders, 46; Jesse Stoldorf, 43, Randy Hammond, 39, all of rural Pana; and Raymond Toth, 60, of Cuba, Mo., were arraigned in federal court in Springfield on June 28.
The defendants were previously charged by complaint and arrested on May 24, 2018. Each of the four defendants has been ordered detained in the custody of the U.S. Marshals Service. A federal grand jury returned the indictment against the four on June 20.
The indictment charges Borders and Stoldorf with one count of conspiracy to distribute and possession with intent to distribute methamphetamine and one count of distribution of methamphetamine, which was obtained from Missouri, from their Pana home on May 3, 2018. Hammond is charged with one count of possession with intent to distribute methamphetamine on May 22, 2018. Toth is charged with possession with intent to distribute 500 grams or more of meth on May 22, and possession of a firearm in furtherance of a drug trafficking crime.
If convicted, the charges against Borders, Stoldorf, and Hammond carry statutory penalties of up to 30 years in prison. If convicted, the drug charge against Toth carries a statutory penalty of 10 years to life in prison. For possession of a firearm in furtherance of a drug crime, the penalty is a mandatory five years in prison to be served consecutive to any sentence ordered for the underlying drug crime.
The charges are the result of an investigation by DEA and the Central Illinois Enforcement Group (CIEG) with the assistance of the Pana Police Department and the Christian County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Crystal Correa.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Traffic Stop Leads to Convicted Felon Being Sentenced to 18 Months in Federal Prison for the Illegal Possession of FirearmsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that Chief United States District Court Judge Kristi K. DuBose sentenced Anthony Letom McCann on June 29, 2018 to serve a term of imprisonment of 18 months followed by 3 years of supervised release for illegally possessing two firearms. The defendant possessed the firearms in Mobile, Alabama on May 18, 2017 in violation of 18 USC § 922(g)(1). The defendant entered a guilty plea before the Court on March 22, 2018.
On the date of incident, a trooper with the Alabama Law Enforcement Agency (ALEA) initiated a traffic stop of the defendant’s vehicle for speeding after the trooper observed the defendant traveling 73mph in a 55mph zone. During the traffic stop, the trooper asked the defendant if there were any weapons in the vehicle. The defendant did not answer right away and did not make eye contact with the trooper. The defendant’s hesitation made the trooper suspicious and the defendant was asked to exit the vehicle. After exiting the vehicle, the defendant admitted that there was a firearm between the front seats. A search of the vehicle was conducted and the authorities located a Norinco, Model 54-1, 9 mm pistol between the front seats and a Ruger, Model AR-556, 5.56 mm rifle in the trunk of the vehicle.
This case was investigated by the Federal Bureau of Investigation (FBI) Safe Streets Task Force, and the Alabama Law Enforcement Agency (ALEA). The case was prosecuted by Assistant United States Attorneys Michael D. Anderson and Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Three Members of “Central Divisadero Players” Gang Sentenced to 12 Years or More in Prison for RacketeeringRead the Press Release
SAN FRANCISCO – Adrian Gordon (aka “Tit”), Esau Ferdinand (aka “Sauce”), and Monzell Harding, Jr., were each sentenced today for their respective roles in a racketeering conspiracy, announced Acting United States Attorney Alex Tse and FBI Special Agent in Charge John F. Bennett. Gordon was sentenced to 27 years in prison, Ferdinand was sentenced to 20 years, and Harding was sentenced to 12 years. The sentences were handed down by the Honorable William Orrick, U.S. District Judge. The defendants were tried for crimes committed on behalf of the San Francisco gang referred to as Central Divisadero Players, aka Central Divis Playas, aka CDP.
“Eradicating violent gang crime is one of the top priorities of the Justice Department,” said Acting US Attorney Tse. “The substantial federal sentences ordered today against convicted gang members is a true warning that the criminal justice system will be used to the fullest extent to punish the menace of gang conduct.”
“For years, the Central Divisadero Players terrorized San Francisco through acts of murder, assault, robbery, and pimping,” said FBI Special Agent in Charge Bennett. “The FBI and our partners used the full force of the federal justice system to bring an end to these racketeering activities and bring these five defendants to justice. We especially want to thank the SFPD and the San Pablo Police Department for their hard work in investigating these crimes.”
After a 14-week trial ending on March 5, 2018, a federal jury convicted Gordon, 29, Ferdinand, 35, and Harding, 26, as well as co-defendants Charles Heard (aka “Cheese”), 33, and Jaquain Young (aka “Loc”), 44, of various charges in connection with a racketeering conspiracy. The defendants were the first five to stand trial for crimes alleged in an eleven-defendant, 22-count second superseding indictment filed on August 14, 2014. The indictment described CDP as a racketeering organization that worked collectively with other gangs in the Western Addition of San Francisco to preserve and protect power, territory, reputation, and profits of the enterprise through the use of intimidation, violence, assaults, and murder. During the trial, the jury heard evidence that the five defendants, all from San Francisco, each played a role in the racketeering conspiracy whose crimes ranged from pimping to murder.
Each defendant was found guilty of participating in the conspiracy. In addition, Gordon was convicted of attempted murder for shooting at a victim during a nighttime ambush in San Pablo, Calif., on May 20, 2011. Further, the evidence at trial showed the defendants’ involvement in a number of violent crimes, including Ferdinand’s and Young’s roles in the murder of Jelvon Helton at the Gravity bar in the Marina District of San Francisco on November 1, 2010, and Gordon’s and Harding’s involvement in a series of nine armed robberies throughout San Francisco between September 23, 2011, and October 5, 2011. In sum, the five defendants were convicted of the following specific charges:
Defendant
Found Guilty of the Following Charges
All Five Defendants
Racketeering conspiracy
in violation of 18 U.S.C. § 1962(d)
Racketeering, including murder,
in violation of 18 U.S.C. § 1962(d)
Gordon
Attempted racketeering murder of Victim 3 on May 20, 2011, in violation of 18 U.S.C. § 1959(a)(5)
Racketeering assault with a dangerous weapon May 20, 2011, on Victim 3, in violation of 18 U.S.C. § 1959(a)(3)
Use, carry, brandishing, or discharge of a firearm during a crime of violence during the May 20, 2011, assault with a deadly weapon of Victim 3, in violation of 18 U.S.C. § 924(c)
Heard
Racketeering murder of Andre Helton on August 14, 2008, in violation of 18 U.S.C. § 1959(a)(1)
Racketeering murder of Isiah Turner on August 14, 2008, in violation of 18 U.S.C. § 1959(a)(1)
Use of a firearm in aid of the August 14, 2008, racketeering murders of Andre Helton and Isiah Turner, in violation of 18 U.S.C. § 924(j)(1)
Young
Racketeering murder of Jelvon Helton on November 1, 2010, in violation of 18 U.S.C. § 1959(a)(1)
Use, carry, brandishing, or discharge of a firearm in connection with November 1, 2010, murder in aid of racketeering of Jelvon Helton, in violation of 18 U.S.C. § 924(c)
Use of a firearm in aid of the November 1, 2010, racketeering murder of Jelvon Helton, in violation of 18 U.S.C. § 924(j)(1)
Attempting to entice and persuade an individual to travel for prostitution (from August 9, 2012, to March 11, 2013), in violation of 18 U.S.C. § 2422(a)
Attempting to entice and persuade a minor to engage in prostitution (from August 9, 2012, to March 11, 2013), in violation of 18 U.S.C. § 2422(b)
In addition to the prison terms, Judge Orrick sentenced Gordon, Ferdinand, and Harding each to 5 years of supervised release to follow their prison terms.
On June 8, 2018, Judge Orrick sentenced Heard to four life sentences for his role in the conspiracy, including the murders of Andre Helton and Isiah Turner in a double-homicide that took place by the University of San Francisco on August 14, 2008. Judge Orrick also sentenced Young to four life sentences for his role in the conspiracy, including the murder of Jelvon Helton and the attempted pimping of a minor; to an additional ten-year sentence to run consecutively for a related firearms charge; and an additional 20 years in prison for attempting to persuade an individual to travel for prostitution.
The defendants currently are in custody and will begin serving their sentences immediately.
The prosecution is the result of joint investigation by the Federal Bureau of Investigation; San Francisco Police Department, including the Gang Task Force, Homicide Detail, Robbery Detail, Special Victims Unit, Night Investigations Unit, and the Northern, Park, Bayview, Mission, Central, and Taraval Stations; San Francisco District Attorney’s Office; and the San Pablo Police Department.
Three Facing Federal Firearms Charges in Music City Pawn RobberyRead the Press Release
Three Nashville men are facing federal firearms charges relating to the armed robbery of Music City Pawn on Tuesday, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal complaint obtained yesterday afternoon charged James Horton, 24, Hakeem Mannie, 29, and Herbert Marsh, 28, all of Nashville, with robbery affecting commerce and using and carrying a firearm during and in relation to a crime of violence. Mannie and Marsh are also charged with being convicted felons in possession of firearms.
“This is yet another example of our commitment to act swiftly to reduce violent crime in middle Tennessee,” said U.S. Attorney Cochran. “As we continue to remind the public, the U.S. Attorney’s Office and our law enforcement partners are serious about removing violent offenders from our communities. With these individuals, 23 violent offenders have been charged and taken off the streets in June and this follows similar patterns in preceding months. Lengthy prison sentences will follow upon conviction and there is no parole in the federal system.”
The complaint alleges that on June 26, 2018, the trio robbed Music City Pawn on Nolensville Pike, taking 14 firearms and more than $8,000 cash. The trio entered the store wearing masks and gloves and one was armed with a handgun equipped with an extended magazine and a weapon-mounted light. Two employees were then ordered to the ground and bound with cable and one employee was dragged to the rear of the store and ordered to open the safe. After taking the firearms and cash, the assailants fled the store in a U-Haul van.
According to the complaint, Metropolitan Nashville police officers stopped a BMW at the intersection of 24th Ave. N. and Rosa Parks Blvd. for a traffic violation. Officers identified James Horton as the driver and Mannie and Marsh as two of the three passengers. During the subsequent investigation, five stolen firearms were recovered from the vehicle, four of which were taken during the robbery at Music City Pawn. The complaint also describes video surveillance and witness statements linking the trio to the robbery as well as the recovery of the U-Haul van at Marsh’s sister’s house, which was used during the getaway.
Hakeem Mannie was found to have six prior felony convictions for forgery and Herbert Marsh has three prior felony convictions for forgery.
If convicted, all defendants face up to 20 years in prison on the robbery charge, with an additional mandatory minimum consecutive sentence of five years on the charge of using and carrying a firearm during a crime of violence. Mannie and Marsh also face up to 10 years in prison for being a convicted felon in possession of firearms.
U.S. Attorney Cochran commended the work of the Metro Nashville Police Department and the Bureau of Alcohol Tobacco, Firearms & Explosives for the swift apprehension of those responsible and the subsequent investigation of this case. Assistant U.S. Attorneys Brooke Schiferle and Phillip Wehby are prosecuting the case.
A criminal complaint is merely an accusation and is not evidence of guilt. All defendant are presumed innocent until proven guilty in a court of law.
Tampa Man Sentenced to More Than Nine Years in Federal Prison for Tax and Identity Theft CrimesRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Tyrone Devlin (30, Tampa) to nine years and eight months in federal prison for conspiracy, theft of government property, access device fraud, and aggravated identity theft, related to his involvement in a stolen identity refund fraud scheme. The court ordered that this sentence be served consecutive to the 10-year prison term Devlin is currently serving in Florida state prison for unrelated crimes. The court also ordered Devlin to repay the IRS $435,499, which are the proceeds from the conspiracy. Devlin had pleaded guilty on March 26, 2018.
According to court documents, between May 2012 and June 2013, Devlin, Marquis Thornton, and others conspired to commit tax fraud and identity theft offenses. As part of the conspiracy, they obtained stolen identities, including Department of Veterans Affairs medical records, and used them to file fraudulent federal income tax returns. The fraudulent tax returns claimed refunds to which the conspirators knew they were not entitled. Devlin, Thornton, and their coconspirators obtained debit cards issued and/or registered in their own and other people’s names and directed that the debit cards be loaded with the fraudulently obtained tax refunds. They then used the debit cards to make ATM withdrawals and for other purchases and shared in the proceeds of the fraud. The conspirators filed more than 400 fraudulent tax returns claiming refunds that totaled more than $2.5 million and received more than $435,000 in proceeds.
Thornton previously pleaded guilty for his role in the scheme and was sentenced to six years and six months in federal prison.
“Identity thieves represent one of the greatest evils of our time. The damage they inflict on individuals and our economy cannot be overstated,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “Criminals should know we are paying attention. IRS Special Agents are uniquely qualified and distinctly engaged in spearheading the effort to bring those like Mr. Devlin to justice. Devlin’s sentence buoys up the IRS mandate to protect the U.S. Treasury from would-be thieves, but, more importantly, this result we hope will provide some sense of relief to the victims.”
This case was investigated by the Internal Revenue Service Criminal Investigation, the Tampa Police Department, and the Department of Veterans Affairs Office of Inspector General. It was prosecuted by Assistant United States Attorneys Megan Kistler and Simon Gaugush.
South Florida Man Pleads Guilty to Hate Crime for Threatening to Blow up MosqueRead the Press Release
The Justice Department today announced that Dustin Allen Hughes, 26, of Cutler Bay, Florida, pleaded guilty yesterday in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs through the threatened use of a dangerous weapon and explosive, in connection with making a phone call in which he threatened to detonate a bomb at a mosque in Pembroke Pines, Florida.
During the plea hearing, Hughes admitted that on May 5, he called an emergency contact for the Jamaat Ul Muttaqeen Mosque of Pembroke Pines, Florida, and left a hate-filled and profanity-laden voicemail message denigrating Islam and threatening to blow up the mosque. Hughes further admitted that in his message he specifically stated that he had a detonator, that he was “going to blow your . . . temple up,” and that “you guys are all going to be up in flames after I’m done with you.”
Following the threatening voice message, law enforcement was contacted and immediately responded, but no bomb was uncovered after an extensive exterior and interior sweep of the mosque was conducted.
Sentencing is scheduled for Sept. 6 before U.S. District Judge Federico A. Moreno in Miami. Hughes faces a maximum sentence of 20 years in prison.
“The Justice Department will not tolerate threats of hate violence, which threaten an entire community’s sense of safety and security,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter how they worship, can live their lives freely and without fear.”
“Our office is committed to protecting the right to freely exercise one’s religious beliefs,” said United States Attorney Benjamin Greenberg for the Southern District of Florida. “Obstructing this right, by force or threat of force, constitutes a hate crime that we will continue to prosecute to the fullest extent of the law.”
“Freedom of religion is a fundamental right for every American,” said Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office. “The FBI and its partners will work tirelessly to ensure anyone who threatens those rights is held accountable.”
This case was investigated by the FBI’s Miami Area Corruption Task Force and the FBI’s Joint Terrorism Task Force (JTTF). The Pembroke Pines Police Department, Miami-Dade Police Department and the City of Miami Police Department also provided assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Michael Davis of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
South Florida Man Pleads Guilty to Hate Crime for Threatening to Blow up MosqueRead the Press Release
The Justice Department today announced that Dustin Allen Hughes, 26, of Cutler Bay, Florida, pleaded guilty yesterday in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs through the threatened use of a dangerous weapon and explosive, in connection with making a phone call in which he threatened to detonate a bomb at a mosque in Pembroke Pines, Florida.
During the plea hearing, Hughes admitted that on May 5, he called an emergency contact for the Jamaat Ul Muttaqeen Mosque of Pembroke Pines, Florida, and left a hate-filled and profanity-laden voicemail message denigrating Islam and threatening to blow up the mosque. Hughes further admitted that in his message he specifically stated that he had a detonator, that he was “going to blow your . . . temple up,” and that “you guys are all going to be up in flames after I’m done with you.”
Following the threatening voice message, law enforcement was contacted and immediately responded, but no bomb was uncovered after an extensive exterior and interior sweep of the mosque was conducted.
Sentencing is scheduled for Sept. 6 before U.S. District Judge Federico A. Moreno in Miami. Hughes faces a maximum sentence of 20 years in prison.
“Our office is committed to protecting the right to freely exercise one’s religious beliefs,” said United States Attorney Benjamin Greenberg for the Southern District of Florida. “Obstructing this right, by force or threat of force, constitutes a hate crime that we will continue to prosecute to the fullest extent of the law.”
“The Justice Department will not tolerate threats of hate violence, which threaten an entire community’s sense of safety and security,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter how they worship, can live their lives freely and without fear.”
“Freedom of religion is a fundamental right for every American,” said Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office. “The FBI and its partners will work tirelessly to ensure anyone who threatens those rights is held accountable.”
This case was investigated by the FBI’s Miami Area Corruption Task Force and the FBI’s Joint Terrorism Task Force (JTTF). The Pembroke Pines Police Department, Miami-Dade Police Department and the City of Miami Police Department also provided assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Michael Davis of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Doctor Convicted of Participating in a Conspiracy to Illegally Dispense Opioids and Other DrugsRead the Press Release
Dr. Andres Mencia, 64, of Fort Lauderdale, Florida was convicted today by a federal jury in Fort Lauderdale, of participating in a conspiracy to distribute a controlled substance.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division; Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
According to evidence admitted at trial, Dr. Mencia ran Adult & Geriatric Institute of Florida lnc, d/b/a AG1 Medical & Dental (AG1), in Oakland Park, Florida. Beginning in or around January 2014 and continuing through October 2017, Dr. Mencia, and office personnel Oscar Luis Ventura-Rodriguez, 41, of Ft. Lauderdale, Nadira Sampath-Grant, 51, of Margate, and John Mensah, 50, of Miami, conspired to perform sham consultations with cash-paying patients. The evidence showed that the true and intended purpose of the consultations was to improperly issue the patients’ prescriptions for opioids and narcotics, such as Oxycodone, OxyContin and Percocet, in exchange for cash payments. Pursuant to Dr. Mencia’s instructions, co-conspirators kept track of the drug-seeking patients by identifying them as “CS” (controlled substance) “patients.” On occasion, Dr. Mencia provided his co-conspirators pre-signed prescriptions to issue the “CS” patients prescriptions for controlled substances in his name. During the course of the conspiracy, Dr. Mencia was not providing a medically meaningful consultation but was in fact acting outside the scope of his professional practice and without legitimate medical purpose.
Dr. Mencia is scheduled to be sentenced by U.S. District Judge William P. Dimitrouleas on Sept. 7, at 1:30 p.m. in Fort Lauderdale.
Ventura-Rodriguez, Sampath-Grant and Mensah previously pleaded guilty to conspiracy to defraud the United States by unlawfully distributing controlled substances. Judge Dimitrouleas sentenced Ventura-Rodriguez to serve 60 months in prison, to be followed by three years of supervised release. A re-scheduled sentencing date has not yet been set for Sampath-Grant. Sentencing is set for John Mensah on Aug. 24, at 2:15 p.m.
The investigation was conducted by DEA, HHS-OIG and ICE-HSI. The Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, and Miami Gardens Police Department assisted in the investigation. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb of the Southern District of Florida and Trial Attorney Adam G. Yoffie of the Criminal Division’s Fraud Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
South Florida Doctor Convicted of Participating in a Conspiracy to Illegally Dispense Opioids and Other DrugsRead the Press Release
Dr. Andres Mencia, 64, of Fort Lauderdale, Florida was convicted today by a federal jury in Fort Lauderdale, of participating in a conspiracy to distribute a controlled substance.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida; Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division; Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
According to evidence admitted at trial, Dr. Mencia ran Adult & Geriatric Institute of Florida lnc, d/b/a AGI Medical & Dental (AGI), in Oakland Park, Florida. Beginning in or around January 2014 and continuing through October 2017, Dr. Mencia, and office personnel Oscar Luis Ventura-Rodriguez, 41, of Ft. Lauderdale, Nadira Sampath-Grant, 51, of Margate, and John Mensah, 50, of Miami, conspired to perform sham consultations with cash-paying patients. The evidence showed that the true and intended purpose of the consultations was to improperly issue the patients’ prescriptions for opioids and narcotics, such as Oxycodone, OxyContin and Percocet, in exchange for cash payments. Pursuant to Dr. Mencia’s instructions, co-conspirators kept track of the drug-seeking patients by identifying them as “CS” (controlled substance) “patients.” On occasion, Dr. Mencia provided his co-conspirators pre-signed prescriptions to issue the “CS” patients prescriptions for controlled substances in his name. During the course of the conspiracy, Dr. Mencia was not providing a medically meaningful consultation but was in fact acting outside the scope of his professional practice and without legitimate medical purpose.
Dr. Mencia is scheduled to be sentenced by U.S. District Judge William P. Dimitrouleas on Sept. 7, at 1:30 p.m. in Fort Lauderdale.
Ventura-Rodriguez, Sampath-Grant and Mensah previously pleaded guilty to conspiracy to defraud the United States by unlawfully distributing controlled substances. Judge Dimitrouleas sentenced Ventura-Rodriguez to serve 60 months in prison, to be followed by three years of supervised release. A re-scheduled sentencing date has not yet been set for Sampath-Grant. Sentencing is set for John Mensah on Aug. 24, at 2:15 p.m.
The investigation was conducted by DEA, HHS-OIG and ICE-HSI. The Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, and Miami Gardens Police Department assisted in the investigation. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb of the Southern District of Florida and Trial Attorney Adam G. Yoffie of the Criminal Division’s Fraud Section.
Skilled Nursing Facility, Management Company, and Owner Agree to Pay $540,000 to Resolve Allegations of Providing Worthless Services and UpcodingRead the Press Release
LEXINGTON, Ky. – Preferred Care Inc. (Preferred Care); its Stanton, Kentucky skilled nursing facility, Stanton Nursing and Rehabilitation Center (Stanton Nursing); owner, Thomas D. Scott; Preferred Care Partners Management Group (PCPMG); and certain other affiliated entities have agreed to pay $540,000 to the United States and the Commonwealth of Kentucky, to resolve allegations that Stanton Nursing billed Medicare and the Kentucky Medicaid program for fraudulently inflated skilled nursing services and providing materially substandard care, in violation of the False Claims Act.
Preferred Care and its related entities own or operate approximately one-hundred skilled nursing facilities throughout the United States, including Stanton Nursing and twenty other facilities in Kentucky. Preferred Care’s facilities, including Stanton Nursing, are managed by PCPMG and related entities. Preferred Care, Stanton Nursing, and PCPMG, along with related entities in Kentucky and New Mexico, declared Chapter 11 bankruptcy, in November 2017, in the Bankruptcy Court for the Northern District of Texas. The respective bankruptcy courts approved the settlement on June 26, 2018.
The United States alleged that Preferred Care, PCPMG, Stanton Nursing, and certain related entities violated the False Claims Act by submitting, or causing the submission of, false claims to Medicare and Medicaid. Medicare reimburses skilled nursing facilities based on a patient’s resource utilization group, or RUG level, which is determined based on the anticipated amount of skilled therapy and skilled nursing services required by the patient. The United States alleged that, from July 1, 2012 through October 31, 2017, Preferred Care, PCPMG, and Stanton Nursing improperly coded patients for higher amounts of skilled nursing services than they needed or received, resulting in higher payments from Medicare.
The Settlement also resolves the government’s allegations that, from July 1, 2012 through April 30, 2015, certain patients at Stanton Nursing received materially substandard or worthless services.
“The United States is committed to protecting our senior community by ensuring that taxpayer dollars are not misspent and nursing facility residents are receiving appropriate, high quality care,” said Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky. “This settlement, reached in cooperation with our partners at the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse, highlights our efforts to combat healthcare fraud, waste, and abuse, and hold accountable those who fraudulently deprive government health care programs of vital resources.”
“Protecting the health and safety of Medicare and Medicaid patients is our top priority,” said Derrick L. Jackson, the Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Settlements like this one hold skilled nursing facilities responsible for providing the best possible care to our beneficiaries.”
“My office works every day to protect Kentucky’s most vulnerable citizens and to seek justice for our seniors who have been physically abused,” Kentucky Attorney General Andy Beshear said. “Our work on this case is an example of our ongoing commitment and the commitment of our federal partners to stop those who harm our seniors by not giving them the very best care and service.”
The allegations were originally brought in lawsuits filed by defendants’ former employees Susan Helton and Joseph Donchatz, under the qui tam provisions of the False Claims Act. Under the Act, private parties may bring suit on behalf of the government and may receive a portion of any federal recovery.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
This matter was handled as part of the Elder Justice Initiative of the Department of Justice (https://www.justice.gov/elderjustice/). In June 2016, the United States Attorney’s Offices for the Eastern District and Western District of Kentucky formed an Elder Justice Task Force (https://www.justice.gov/usao-edky/elder-justice-task-force). The Task Force was assembled to foster a collaborative working relationship among federal, state, and local agencies charged with protecting the elderly. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions, or involves financial fraud schemes. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
This settlement is the result of an investigation by the U.S. Attorney’s Office for the Eastern District of Kentucky, U.S. Department of Justice Civil Division’s Commercial Litigation Branch, Office of Inspector General of the U.S. Department of Health and Human Services, and Kentucky Attorney General’s Office of Medicaid Fraud and Abuse. The cases are captioned U.S. ex rel. Doe v. Preferred Care Inc., et al. (E.D. Ky.) and U.S. ex rel. Donchatz v. Stanton Health Facilities, L.P., et al. (E.D. Ky.).
Sioux Falls Man Sentenced to 25 Years in for Role in Methamphetamine ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that Quadiri Ayodele, age 38, of Sioux Falls, South Dakota, was sentenced to 25 years in prison on June 19, 2018, by U.S. District Court Judge Karen E. Schreier. Ayodele was convicted of conspiracy to distribute a controlled substance, 500 grams or more of methamphetamine, and of violating the supervised release conditions stemming from his 2008 federal conviction for conspiracy to distribute and possession with intent to distribute a controlled substance.
Ayodele’s time in prison will be followed by ten years of supervised release. He was also ordered to pay $100 to the Federal Crime Victim’s Fund. Ayodele was indicted by a federal grand jury on October 11, 2017. He pled guilty on January 25, 2018.
The investigation of Ayodele revealed his leadership of a drug ring that was responsible for transporting several pounds of of methamphetamine from Phoenix, Arizona, to South Dakota. A search warrant was executed Ayodele’s motel room in Sioux Falls, and at which law enforcement located approximately 100 grams of methamphetamine. Ayodele was later apprehended in Nebraska, where law enforcement located approximately 294 grams of methamphetamine in his backback. The District Court found that Ayodele’s drug dealing scheme involved several participants traveling to and from Arizona for the purpose of transporting illegal drugs to sell in South Dakota, and that the drug ring was Ayodele’s primary source of income while he was involved.
This case was investigated by the Sioux Falls Area Drug Task Force, the South Dakota Highway Patrol, the Arizona Department of Public Safety, the Arizona Highway Patrol, the Nebraska State Patrol, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Schuele Boys Gang Member Involved in Homicide Sentenced to Serve 20 Years in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Marcel Worthy, aka Cheese, 32, of Buffalo, NY, who was convicted of racketeering conspiracy involving five kilograms or more of cocaine and murder, and conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced by U.S. District Judge Richard J. Arcara to serve 240 months in federal prison.
Assistant U.S. Attorneys Wei Xiang and Paul Parisi, who handled the case, stated that on December 17, 2006, Worthy and an associate were involved in a confrontation with a group of individuals at a gas station at Grider Street and East Delavan Avenue in Buffalo. As the individuals walked away, the defendant drove after them. Seeing the individuals in the vicinity of 82 Durham Avenue, Worthy stopped his vehicle and his associate shot and killed Kevin Gray. In addition to participating in the murder of Kevin Gray, the defendant also sold marijuana.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, was responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana. The Schuele Boys Gang was also responsible for the murder of Quincy Balance in August 2012.
Worthy is one of 28 Schuele Boys Gang members and associates arrested and convicted in this case.
The sentencing is the result of an investigation by the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the New York State Police, under the direction of Major Edward Kennedy. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Edinboro University Police Department in Pennsylvania; the West Tennessee Judicial Drug Task Force; the City of McAllen, Texas Police Department; HSI Harlingen, Texas; and the FBI offices in Houston, Texas and Jackson, Mississippi.
Sacramento Man Indicted for Illegal Firearm PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment this week against Dominic Raymond Orozco, 38, of Sacramento, charging him with being a felon in possession of a firearm, United States Attorney McGregor Scott announced.
According to court documents, on May 16, 2018, Orozco was found in possession of a Smith & Wesson 9 mm handgun. Orozco has at least one prior felony convictions, making it illegal for him to possess a firearm.
This case was the product of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, the Sacramento County District Attorney’s Office, the Sacramento Police Department, and the Sacramento County Sheriff’s Department. Assistant United States Attorneys David W. Spencer and Justin L. Lee are prosecuting the case.
If convicted, Orozco faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Sacramento County Man Sentenced to 10 Years for Attempted Enticement of A MinorRead the Press Release
SACRAMENTO, Calif. — George Hristovski, 59, of Elverta, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 10 years in prison for attempted enticement of a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, Hristovski posted an online advertisement seeking a mother who was willing to allow him to have sex with her daughter. An undercover agent with the Placer County Sheriff’s Department responded to the advertisement and began to correspond with Hristovski, posing as a mother and eventually her 13-year-old daughter. Hristovski was arrested on August 4, 2014, after making explicit demands for pornographic images of the 13-year-old girl that he believed he was communicating with, and for attempting to arrange a meeting with the girl for the purpose of having sex with her.
This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Placer County Sheriff’s Department. Assistant U.S. Attorney Michele Beckwith prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rochester Man Sentenced for Lying to an FBI AgentRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Michael Beers, 68, of Rochester, NY, who was convicted of making a false statement to an FBI special agent, was sentenced to serve 60 months in federal prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that in February 2017, the FBI conducted a child pornography investigation during which an undercover agent downloaded four videos of child pornography directly from a device using an IP address belonging to the defendant at his residence on Lake Avenue in Rochester.
On March 10, 2017, the FBI executed a search warrant at Beers’ residence. Agents located a computer which contained file titles consistent with child pornography. The defendant was questioned regarding his use of the computer, at which point Beers willfully made materially false statements to FBI Agents. Specifically, the defendant denied having access to or using the computer, denied knowing the password for the computer, and denied that child pornography had been accessed, inadvertently or otherwise, on the computer. In reality, the defendant used the computer, personally set the password for computer, and had seen child pornography on the computer.
The sentencing is the culmination of an investigation on the part of Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Rochester Man Charged with Hacking Online Accounts of Young WomenRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Justin Potts, 36, of Rochester, NY, was charged by criminal complaint with unauthorized access of a protected computer. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, in March 2017, the Rochester Police Department alerted the FBI’S Cyber Task Force about the defendant who had been arrested for using his mobile phone to take pictures of women in various stages of undress at multiple tanning salons in Rochester.
Subsequent investigation determined that Potts’s computer storage devices contained approximately 450 computer files which contained indications that the defendant gained unauthorized access into various women’s password protected digital accounts.
Potts conducted a multi-year, multi-state, campaign to access the online accounts primarily associated with young women. Once the defendant successfully gained access to a victim’s online account, he would routinely continue accessing additional accounts for the same victim. Potts appeared to target university and personal email accounts, Facebook accounts, Apple iCloud accounts, and online password managers. An examination of one of the defendant’s hard drives found many files that contained nude or partially nude or revealing images of some of the young women whose accounts he hacked. Investigators also found nude images of celebrities, images believed to be downloaded from file sharing sites.
Investigators believe 150 victims were targeted as a result of the computer intrusion scheme orchestrated by Potts.
The defendant made an initial appearance on June 28, 2018, before U.S. Magistrate Judge Marian W. Payson and is being detained.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Ridgeview Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Ridgeview, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
William Fielder, age 55, was indicted on June 19, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 26, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 2 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 19, 2017, Fielder assaulted an individual with a dangerous weapon and said assault resulted in serious bodily injury.
The charges are merely accusations and Fielder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Fielder was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Red Bud Resident to Serve 25 Years in Prison for Production of Child PornographyRead the Press Release
On June 29, 2018, Michael B. Stephens, Jr., 43, of Red Bud, Illinois, was sentenced to 25
years in federal prison for producing child pornography, United States Attorney for the Southern
District of Illinois, Donald S. Boyce, announced today. Stephens previously pled guilty on March
22 to a two-count indictment charging him with sexually exploiting a minor on two occasions in
November 2016.
The charges arose from an investigation conducted by the Federal Bureau of Investigation
and the Waterloo, Illinois, Police Department. Evidence at the plea and sentencing hearings
established that on numerous occasions in 2016, Stephens videotaped himself engaging in sexual
intercourse with a minor female at his residence in Waterloo, Illinois. The evidence also
established that Stephens was both physically and verbally abusive to the minor female during this
time.
In addition to the 25 year sentence, United States District Judge Michael J. Reagan imposed
a ten-year term of supervised release and ordered Stephens to pay a $500 fine. As a result of his
conviction, Stephens will also have to register as a sex offender after he is released from prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched
in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation
and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child
Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local
resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to
identify and rescue victims. For more information about Project Safe Childhood, please visit
www.usdoj.gov/psc. For more information about internet safety education, please visit
www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Federal Bureau of Investigation’s Springfield Child
Exploitation Task Force and the Waterloo, Illinois, Police Department. The case was prosecuted
by Assistant United States Attorney Daniel T. Kapsak with assistance fromMonroe County State’s
Attorney Christopher Hitzemann.
Rapid City Man Sentenced on Drug Conspiracy in Operation Broken Wing - Large Methamphetamine ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine) was sentenced on June 25, 2018, by Chief Judge, Jeffrey L. Viken, U.S. District Court.
Arrow Lynn Curry, age 25, was sentenced to 96 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Curry was previously found guilty by a federal jury to Conspiracy to Distribute a Controlled Substance, on April 20, 2017.
Beginning December 2014, Curry conspired and agreed with other persons, to intentionally distribute methamphetamine in western South Dakota.
Also in connection with this conspiracy, dubbed Operation Broken Wing, James Lahoe, Timothy Bluehorse, Stanley Bluehorse, Sara Cordova, Elizabeth Cordova, Reymundo Cordova, Jose Rivera, Marion Orozco, Porshe Sansberry, Susie Hubner, Albert Nagel, Dionisio Munoz-Torres, and Cory Tobacco, were charged and pleaded guilty to various drug and firearm charges.
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 was investigated by the United States Postal Inspection Service, Unified Narcotics Enforcement Team, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, South Dakota Division of Criminal Investigation, and Pennington County Sheriff’s Office. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Curry was immediately turned over to the custody of the U.S. Marshals Service.
Rangeley Man Sentenced to Two Years for Fentanyl DistributionRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Steven Butler, 25, of Rangeley, Maine, was sentenced today by U.S. District by Chief Judge Nancy Torresen to two years in prison and three years of supervised release for distribution of fentanyl.
According to court records, between March and June 2017, the defendant distributed fentanyl three times to a confidential informant in Rangeley.
The case was investigated by the U.S. Drug Enforcement Administration; the Franklin County Sheriff’s Office; the Bureau of Alcohol Tobacco Firearms and Explosives; the Maine State Police; and the Rangeley Maine Police Department, with assistance provided by the Maine Office of the Attorney General. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Portland Man Indicted for Attempting to Bribe ICE Deportation OfficerRead the Press Release
Downloadable file: INDICTMENT-Burgos-Final.pdf
PORTLAND, Ore. – Antonio Oswaldo Burgos, 48, of Portland, made an initial appearance today in federal court before U.S. Magistrate Judge Paul Papak.
The court unsealed a three-count indictment alleging Burgos, on three separate occasions, attempted to bribe a U.S. Immigration and Customs Enforcement (ICE) deportation officer. Burgos is accused of offering to pay the officer in order to facilitate the deportation of his estranged wife and daughter.
Burgos was released pending trial. A two-day jury trial is scheduled for August 28, 2018 before U.S. District Court Judge Michael H. Simon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was jointly investigated by ICE’s Office of Professional Responsibility and Homeland Security Investigations.
Pennsylvania Woman Sentenced for Smuggling Drugs into U.S. on Commercial FlightRead the Press Release
BOSTON – A Pennsylvania woman was sentenced yesterday in federal court in Boston for smuggling drugs into the United States on a commercial flight from the Dominican Republic.
Natalia Alexander Duran, 23, was sentenced by U.S. District Court Judge Rya W. Zobel to one year and one day in prison and three years of supervised release. In March 2018, Duran pleaded guilty to two counts of importation of a controlled substance - heroin and cocaine, and two counts of possession of a controlled substance with the intent to distribute - heroin and cocaine. The U.S. Attorney’s Office sought a sentence of 30 months in prison, followed by three years of supervised release.
“Trafficking drugs is risky enough, but swallowing dozens of pellets full of heroin and cocaine is just reckless,” said United States Attorney Andrew E. Lelling. “Moreover, it didn’t work, because of the diligence and professionalism of the U.S. Customs and Border Protection officers who encountered Ms. Duran when she arrived at Logan. These officers stopped nearly a kilogram of cocaine and over 100 grams of heroin from hitting our streets.”
“This arrest exemplifies the drastic and dangerous means criminals will take to smuggle illicit drugs into our country,” said William A. Ferrara, Director of Field Operations, U.S. Customs and Border Protection. “The experience, training and constant vigilance of the CBP Officers here in Boston prevented these dangerous drugs from reaching our communities and I commend their great work.”
On May 30, 2017, Duran arrived at Logan International Airport on a flight from the Dominican Republic. Upon arrival, Duran, a U.S. citizen, was referred for a secondary baggage examination. Duran stated that she needed to use the restroom and was told that she would have to be “pat frisked” before she could do so. Duran was then pat frisked by a female U.S. Customs and Border Protection officer, who felt an abnormality in Duran’s groin area. Duran subsequently admitted that she had drugs concealed in her clothing. 41 pellets of suspected cocaine were removed from a bodysuit worn by Duran. Concerned that Duran may have ingested additional pellets of drugs, she was transported to a local hospital and given an x-ray, which revealed numerous pellets inside her abdominal area. While at the hospital, Duran excreted an additional 68 pellets. A combined total of 109 pellets were recovered, tested and determined to be approximately 971 grams of cocaine and approximately 109 grams of heroin.
During a subsequent interview, Duran admitted that in April 2017 she smuggled 75 pellets of drugs from the Dominican Republic into the United States in the same way. On the first trip, Duran flew into New York City and spent two days in a hotel passing the pellets through her digestive tract. In total, Duran smuggled approximately 1,720 grams of cocaine and 109.3 grams of heroin into the United States.
U.S. Attorney Lelling and CBP Director of Field Operations Ferrara made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Newark Man Conspired to Possess and Distribute HeroinRead the Press Release
PITTSBURGH, PA - A resident of Newark, New Jersey, pleaded guilty in federal court to charges of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin, United States Attorney Scott W. Brady announced today.
Shawn Robinson, age 36, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Robinson conspired with other individuals to possess with intent to distribute, and possessed with intent to distribute over 100 grams of heroin.
The Court was further advised that on October 14, 2015, one of Robinson’s co-conspirators made arrangements to sell 100 bricks of heroin for $14,500 to another individual. Robinson’s co-conspirator also agreed to advance an additional 50 bricks of heroin. Robinson and another of his co-conspirators arrived at the Hyatt Place in Robinson Township to deliver the heroin. When they arrived, Robinson was carrying a black plastic shopping bag. Inside of the shopping bag, officers recovered a clear plastic vacuum-sealed bag containing 150 bricks of heroin, weighing 185.92g.
Judge Bissoon scheduled sentencing for November 6, 2018. The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, 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.
Pending sentencing, the court ordered that Robinson remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Robinson.
New Vineyard Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Jordan Richard, 24, of New Vineyard, Maine, pleaded guilty today in U.S. District Court to conspiracy to distribute cocaine, heroin, fentanyl, and oxycodone and discharging a firearm during, in relation to, and in furtherance of, a drug trafficking crime.
According to court records, between January 2016 and September 2017, the defendant and others conspired to distribute cocaine, heroin, fentanyl, and oxycodone from the defendant’s residences in Rangeley and New Sharon, Maine. On July 28, 2016, the defendant shot and killed one of two men who came to his Rangeley residence to rob him. The second man fled the scene and was subsequently captured. Officers investigating the shooting discovered cocaine, heroin, fentanyl, oxycodone, cash, drug paraphernalia and the semiautomatic handgun used in the shooting in the residence.
The defendant faces up to 20 years in prison, three years supervised release, and a $1,000,000 fine on the drug charge. He faces a mandatory consecutive term of between 10 years and life in prison, five years of supervised release, and a $250,000 fine on the gun charge.
The case was investigated by the U.S. Drug Enforcement Administration; the Franklin County Sheriff’s Office; the Bureau of Alcohol Tobacco Firearms and Explosives; the Maine State Police; and the Rangeley Maine Police Department; with assistance provided by the Maine Office of the Attorney General. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Orleans Woman Charged with Identity Theft and Attempted FraudRead the Press Release
U.S. Attorney Duane A. Evans announced that KEYIRA GABLE, age 31, a resident of New Orleans, was charged today by a federal grand jury with attempted access device fraud and aggravated identity theft.
If convicted, GABLE faces the following penalties. If convicted of attempted access device fraud, she faces a sentence of up to 10 years in prison, a $250,000.00 fine, and up to three years of supervised release after imprisonment, pursuant to Title 18, United States Code, Section 1029(a)(2). If convicted of aggravated identity theft, she would receive a mandatory two-year prison sentence consecutive to any other term of imprisonment, a $250,000.00 fine, and up to one year of supervised release.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Secret Service New Orleans Field Office and the Slidell Police Department in investigating this matter. U.S. Attorney Evans thanked the District Attorney’s Office for the 22nd Judicial District for its assistance in this prosecution. Assistant U.S. Attorney Matthew R. Payne is in charge of the prosecution.
National Healthcare Fraud Takedown Results in Charges Against 601 Individuals Responsible for More Than $2 Billion in Fraud LossesRead the Press Release
Largest Health Care Fraud Enforcement Action in Department of Justice History Resulted in 76 Doctors Charged and 84 Opioid Cases Involving More Than 13 Million Illegal Dosages of Opioids
WASHINGTON - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced yesterday the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Inspector General Daniel R. Levinson of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Director Alec Alexander of the Centers for Medicare and Medicaid Services (CMS) Center for Program Integrity and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).
Yesterday’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
The charges announced yesterday aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
Cases that have been indicted in the Eastern District of Kentucky are:
- United States v. Kimberly Jones (6:18-cr-00030 E.D. Ky.): Kimberly Jones, a licensed pharmacist in Williamsburg, Kentucky, is charged with 26 counts of distributing oxycodone or oxymorphone, one count of maintaining a drug involved premises, and one count of health care fraud. The Indictment alleges that Jones, the owner of Kim’s Hometown Pharmacy in Williamsburg, repeatedly filled prescriptions for oxycodone and oxymorphone outside the scope of professional practice, while also billing insurers for prescription drugs that were never dispensed to patients. The Indictment was unsealed following Jones’s arrest on June 26, 2018. The case is assigned to United States District Judge Gregory F. Van Tatenhove and is set for trial on August 21, 2018. Jones faces a maximum sentence of 20 years imprisonment if convicted on the controlled substance offenses and 10 years if convicted of health care fraud.
- United States v. Gary McPherson (6:18-cr-00031 E.D. Ky.): Gary McPherson, a licensed pharmacist, is charged with theft of pre-retail medical products in violation of 18 U.S.C. § 670. The charge stems from McPherson’s theft of pharmaceutical drugs from Kim’s Hometown Pharmacy in Williamsburg, Kentucky, in May 2018. The Indictment was unsealed on June 26, 2018, and McPherson will appear in court on July 11, 2018, for arraignment. The case is assigned to United States District Judge Gregory F. Van Tatenhove. McPherson faces a maximum sentence of five years imprisonment if convicted.
The Medicare Fraud Strike Force operations are 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 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
- United States v. Kimberly Jones (6:18-cr-00030 E.D. Ky.): Kimberly Jones, a licensed pharmacist in Williamsburg, Kentucky, is charged with 26 counts of distributing oxycodone or oxymorphone, one count of maintaining a drug involved premises, and one count of health care fraud. The Indictment alleges that Jones, the owner of Kim’s Hometown Pharmacy in Williamsburg, repeatedly filled prescriptions for oxycodone and oxymorphone outside the scope of professional practice, while also billing insurers for prescription drugs that were never dispensed to patients. The Indictment was unsealed following Jones’s arrest on June 26, 2018. The case is assigned to United States District Judge Gregory F. Van Tatenhove and is set for trial on August 21, 2018. Jones faces a maximum sentence of 20 years imprisonment if convicted on the controlled substance offenses and 10 years if convicted of health care fraud.
National Healthcare Fraud Takedown Results in Charges Against 601 Individuals Responsible for $2 Billion in Fraud LossesRead the Press Release
WASHINGTON - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Deputy Inspector General Gary Cantrell of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity Alec Alexander and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).
Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
In Winamac, Indiana, two individuals involved with the operation of Transport Loving Care (also known as Alliance EMS) allegedly submitted false claims to Medicare and Medicaid. Michael Wilson and Jaqueline “Jay” Podell – allegedly claimed they provided transportation of recipients to dialysis by ambulance service when in fact the recipients were ambulatory, did not require ambulance transportation and were not eligible for ambulance transportation. The Indictment claims the loss to Indiana Medicaid is in excess of $10,000. Charges include conspiracy to commit health care fraud (Medicare); health care fraud (Medicare); Medicaid health care fraud; and forfeiture.
In Gary, Indiana, two individuals involved in the operation of Lending a Helping Hand Transportation -- Felicia Blount and Charlotte Hunter -- allegedly billed Indiana Medicaid for services not rendered, inflating mileage for trips from Northwest Indiana to Indianapolis by approximately 100 miles per trip. The total fraud to the Indiana Medicaid program is in excess of $100,000. The two defendants are charged with health care fraud and the indictment also seeks forfeiture.
In San Pierre, Indiana, four individuals involved in United Mobile Care – Edward Kerr, Brenda Kerr, Mark Estrada and Tammy Estrada – allegedly submitted false claims to the Medicare and Medicaid program. They allegedly claimed they provided transportation of recipients to dialysis by ambulance service when in fact the recipients were ambulatory, did not require ambulance transportation and were not eligible for ambulance transportation. The Indictment claims the losses in excess of $100,000. Charges include 1 count of conspiracy to commit health care fraud and 10 counts of health care fraud.
US Attorney Kirsch said, “The defendants indicted in these cases are charged with stealing tax payer money by defrauding our health care funds. The victims are the taxpayers. Working with our law enforcement partners we will continue to investigate and prosecute perpetrators of these fraudulent schemes.”
"Health care fraud is a threat to this country, both in terms of the well-being of patients and the integrity of government health care programs,” said Lamont Pugh, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General. “Our agents will continue to work with our law enforcement partners to ensure these criminals are held accountable for their actions.”
“Medicaid fraud leaves in its wake many victims,” Attorney General Hill said. “Any licensed providers who commit this offense are taking advantage of those for whom they are supposed to provide care, including the disabled and less fortunate who rely on Medicaid. In addition, they are also fleecing all taxpayers whose hard-earned money is used to fund these programs. The investigators and lawyers in our Medicaid Fraud Control Unit are doing good work to help bring lawbreakers to justice. At the same time, we respect the due process to which all are entitled, and all those who stand accused of this crime are certainly presumed innocent until a court finds otherwise.”
The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois, Middle District of Louisiana, and the Middle District of Florida; and agents from the FBI, HHS-OIG, DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and state Medicaid Fraud Control Units.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Additional documents related to this announcement will shortly be available here:
https://www.justice.gov/opa/documents-and-resources-june-28-2018.
This operation also highlights the great work being done by the Department of Justice’s Civil Division. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2 billion in judgements and settlements related to matters alleging health care fraud.
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National Health Care Fraud Takedown Results in Charges Against 590 Individuals Responsible for $2+ Billion in Fraud LosesRead the Press Release
Roanoke, VIRGINIA – Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced yesterday the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 590+ charged defendants across 56 federal districts, including 150+ doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Of those charged, over 150 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Twenty-nine state Medicaid Fraud Control Units also participated in today’s arrests.
Yesterday’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
In the Western District of Virginia, two indictments returned this week were included in the nationwide takedown. In both cases, the United States Attorney’s Office collaborated with the Department of Health and Human Services-Office of the Inspector General and the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit.
In a 73-count indictment returned earlier this week and announced yesterday, East Mental Health, LLC, Christopher Dean East, Joann Kathleen Patterson, Alfred Lloyd Robrecht, William Barclay Allison and Ryan Thomas Greene were charged with conspiracy to commit health care fraud, and other related charges.
According to the indictment, the defendants operated East Mental Health, also known as East Wellness Center, located in Roanoke. The defendants allegedly conspired to fraudulently obtain $45 million from Medicaid over a ten-year period by falsifying mental health progress notes and billing Medicaid based on those false notes for services that were not rendered as described and allowed. East Mental Health, a facility that provided support to individuals with mental illnesses, abruptly closed their facility in October 2017 after becoming the target of a federal whistleblower lawsuit that was filed in 2013.
In a separate 17-count indictment returned this week, Vickie Phanelson Adams and Latoya Litchel Preston were charged with health care fraud. According to the indictment, Adams owned and operated MPowering Kids, a therapeutic day treatment center for children and adolescents and Golden Touch Home Health Care, a home based personal care service facilitation company assisting elderly and disabled adults. The indictment alleges that Adams and Preston falsified multiple Weekly Progress Notes for mental health services that were never provided and Adams falsified Golden Touch Home Assessments notes for services which were never provided.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Nashville Man Convicted of Human Trafficking CrimesRead the Press Release
Brittan Ezekiel Kettles, aka “Low Low,” 26, of Nashville, Tennessee, was convicted yesterday by a federal jury of conspiracy to sex traffic a person under the age of 14 and sex trafficking a person under the age of 14, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
According to evidence and testimony at trial, on or about June 15, 2016, Stormy Whittemore met Kettles after he contacted her through Instagram, a photo and video-sharing social networking site. Within approximately 24 hours of meeting with him, Kettles disclosed information to her regarding his prostitution enterprise. Using promises of a money, cars, mansions, and other materialistic things, Kettles recruited Whittemore into working for him as a prostitute. Shortly thereafter, Whittemore began prostituting for Kettles in the Nashville area. At the time, Whittemore was 18 years old, and prior to meeting Kettles, she had never prostituted herself before.
To facilitate Whittemore’s prostitution activities, Kettles rented a room at a motel by the Nashville International Airport from June 16, 2016, through June 19, 2016. Kettles also utilized the website www.Backpage.com to advertise her services. The advertisements on Backpage.com sometimes displayed photographs of other female individuals and sometimes of Whittemore. When a male individual, commonly referred to as a “john” responded to the advertisement, Kettles would arrange the sexual encounter between the john and Whittemore. Following the encounter, Whittemore provided the money she made to the defendant, typically between $150 and $200 for each encounter.
Between June 16 and June 19, 2016, during the same time that Kettles was prostituting Whittemore in Nashville, he met a 13-year old friend of Whittemore’s. Shortly after meeting the 13-year-old, Kettles, through Whittemore, recruited and enticed her to engage in commercial sex acts: i.e., prostitute herself in exchange for money. Over the course of the next couple of days, the 13-year-old prostituted herself on behalf of Ketttles and Whittemore. Following each sexual encounter, she provided the money she earned to Whittemore and Kettles, usually by handing the money directly to Whittemore, who would then give the money to Kettles.
During the course of the weekend, Kettles purchased clothing, food, and beverages for Whittemore and the 13-year-old female and also paid for them to receive nail services at a salon, using the money that they had earned to pay for these items and services. At the end of the weekend, Whittemore and Kettles dropped the 13-year-old off at her residence. She subsequently contacted Whittemore and Kettles via text message, asking for $200 of the $800 that she had earned for them based on the prostitution she had performed. They agreed to give her $60, but in fact only left $15 in the mailbox at her house.
Shortly after all of the above, the 13-year-old’s mother contacted a non-governmental organization and reported that her daughter had been a victim of human trafficking. The non-governmental organization reported the information to the Metropolitan Nashville Police Department, which then conducted an investigation into the allegations. The 13-year-old subsequently identified Kettles and Whittemore as the individuals who trafficked her between June 16 and June 19, 2016.
Kettles faces a mandatory minimum of at least 15 years, up to life in prison when he is sentenced on October 15, 2018. Whittemore pleaded guilty in August 2017 and is awaiting sentencing.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Katy Risinger and Siji Moore prosecuted the case.
Munhall Drug Dealer Guilty of Trafficking Deadly FentanylRead the Press Release
PITTSBURGH – William Harvey Scott, Jr., aka "PacMan", pleaded guilty in federal court to multiple charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Scott, age 27, formerly of Munhall, Pennsylvania, pleaded guilty to three felony counts before United States District Judge Cathy Bissoon.
The court was advised that Scott sold the manmade opiate fentanyl, in stamp bags marked "LIZZ" to a female on July 13, 2016 and that this woman died as a result. Law enforcement located the victim’s cellphone and determined that she had been purchasing drugs from a person she labelled as "Chris Man." Law enforcement used the victim’s phone to text "Chris Man" and asked him to meet and sell more of the drugs. When Scott appeared at the prearranged location, he was found to possess more stamp bags of fentanyl marked "LIZZ".
During his guilty plea, the defendant specifically admitted to selling the fentanyl and to causing the July 2016 death of the young woman. During the guilty plea hearing, the defendant specifically agreed to pay restitution to the victim’s family.
Judge Bissoon scheduled sentencing for October 22, 2018, at 10 a.m. The defendant was remanded to jail, pending his sentencing hearing.
Defendants charged with these types of felony drug offenses face a maximum sentence of 20 years in prison and at least six years of supervision by the United States Probation Office. The actual sentence imposed will be based upon information that includes the defendant’s criminal, family, educational and work histories.
Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor with the Violent Crime and Major Crime Sections of the U.S. Attorney’s Office, is prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration, and law enforcement officers from the Duquesne Police Department, Homestead Police Department, and Allegheny County Sheriff’s Office, conducted the investigation that led to the prosecution of the defendant.
United States Attorney Brady noted that the investigation was funded by the federal Organized Crime Drug Enforcement Task Force program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal, state, and local agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
More Than 50 Defendants Charged in Joint Federal and State Narcotics Investigation Centered on West Side of ChicagoRead the Press Release
CHICAGO — More than 50 individuals, including a reputed gang member, are facing criminal charges as part of a joint federal and state investigation into heroin and fentanyl sales in Chicago.
The investigation, dubbed “Operation Fat Chance,” centered on drug sales on the city’s West Side and resulted in the seizures of more than three kilograms of heroin, more than a kilogram of cocaine, and more than 230 grams of fentanyl. Authorities also seized eight illegal firearms, including a semi-automatic assault rifle with a drum barrel magazine, and more than $100,000 in narcotics proceeds. As part of the investigation, law enforcement shut down two open-air drug markets in the city’s North Lawndale and East Garfield Park neighborhoods.
The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies, whose principal mission is to identify, disrupt and dismantle the most serious drug trafficking organizations.
Criminal complaints and affidavits filed in U.S. District Court in Chicago charge 15 defendants with various drug offenses. Two of the federal targets were arrested on Tuesday and several more were arrested Thursday. Detention hearings for some of the federal defendants will be held today and next week in U.S. District Court in Chicago.
Forty two other defendants were charged in state complaints, and many of them were also arrested Thursday. They have begun making initial appearances in Cook County Criminal Court.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; Kimberly M. Foxx, Cook County State’s Attorney; and Eddie Johnson, Superintendent of the Chicago Police Department. Substantial assistance was provided by the U.S. Marshals Service. Assistant U.S. Attorneys Nani Gilkerson and Jeannice Appenteng are representing the government.
According to the federal complaints, THOMAS BARFIELD, 36, of Chicago, is a reputed street-gang member who operated a drug trafficking organization that utilized street-level distributors (known as “pack workers”) to sell heroin and fentanyl to customers. Many of the deals were carried out at an open-air drug market near the intersection of Homan Avenue and Douglas Boulevard in Chicago, the complaints state. The sales were allegedly overseen by high-ranking members of Barfield’s organization, including CHARELLE THOMPSON, 28, of Chicago; NICOLE GREEN, 34, of Chicago; GLORIA ANDERSON, 60, of Chicago; and THOMAS SMITH, 65, of Chicago. QUIERA WALLS, 35, of Chicago, and JARVIS PAYNE, 30, or Chicago, are alleged to have assisted Barfield with the packaging and distribution of narcotics.
From December 2017 to April 2018, according to the complaints, law enforcement conducted numerous undercover drug purchases from Smith, Anderson, and the pack workers, including MICHAEL JACKSON, 44, of Chicago; ANTON BROWN, 46, of Chicago; and ALFRED JOHNSON, 54, of Chicago. Last month, agents searched Barfield’s home and three alleged stash houses on the West Side of Chicago, seizing heroin, cocaine, a rifle, two handguns, and drug-packaging materials, the complaints state.
The federal complaints also describe an April 2018 narcotics transaction in front of a grocery store in 4400 block of West Armitage Avenue in the Hermosa neighborhood of Chicago. According to the charges, JOSE HERNANDEZ, 48, of Chicago, delivered a kilogram of cocaine to OBED ORNELAS, 36, of Chicago, inside Ornelas’ Ford Mustang. When officers attempted to pull over the Mustang, Ornelas allegedly sped off and tossed the bag of cocaine out of the driver’s side window. Officers recovered the bag in the 2400 block of North Kedzie Avenue in Chicago, the complaints state. The complaints also allege that Ornelas supplied Barfield with narcotics.
Also charged in the federal complaints is another reputed gang member, WILLIE KELLEY, 26, of Chicago. Kelley allegedly managed heroin sales at an open-air drug market near the intersection of Lexington Street and Sacramento Avenue in Chicago’s East Garfield Park neighborhood.
The federal complaints also charge DARIUS FRANKLIN, 34, of Algonquin, and JONATHAN HARRIS, 26, of Cicero. According to the complaints, Franklin and Harris are alleged to have distributed heroin to various narcotics customers. Agents searched Franklin’s alleged stash house and recovered over two kilograms of heroin and drug-packaging materials. Franklin is also alleged to have provided heroin to Willie Kelley.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Moore Man Pleads Guilty to Firearm Possession by Prohibited PersonRead the Press Release
OKLAHOMA CITY – JEREMY SHAWN PARKE, 46, of Moore, Oklahoma, pleaded guilty yesterday to possession of a firearm by a prohibited person, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to court records, on the afternoon of May 5, 2018, the Moore Police Department received a report of shots fired in a Moore residential neighborhood. Officers made contact with a neighborhood resident who said she heard loud bangs from a nearby home. Police went to the home of Parke, where they had responded to previous incidents, and discovered a Ruger, Model AR 556 rifle and numerous spent shell casings on Parke’s back patio and in the yard. There were apparent bullet holes in his backyard fence. Officers eventually discovered a shotgun and additional rounds of ammunition inside Parke’s home.
On May 6, 2018, a Moore resident, whose home was in the adjacent neighborhood to Parke’s home, reported to the Moore Police Department that she discovered a bullet near her infant son’s crib. An officer responded to her home, where she explained that on the afternoon of May 5—at the time that the police department received a separate report of shots being fired—she heard a loud noise. She went upstairs to check on her sleeping baby. She noticed his crib railing was broken, but she thought the baby had perhaps chewed on it. The next day, however, while cleaning behind his crib, the mother noticed a bullet hole that aligned with the piece of broken crib railing. On the floor, she discovered the bullet. Law enforcement determined that it was the same caliber that could be fired from the AR 556 rifle that was seized from Parke the day before.
Parke’s possession of the firearms and ammunition was illegal because he was subject to a Cleveland County protective order that prohibited him from harassing, stalking, or threatening a former intimate partner. It also advised him that he was prohibited from possessing firearms and ammunition. According to records obtained from a local gun dealership, Parke purchased the AR 556 on March 21, 2018. When he completed the paperwork required to purchase the rifle, Parke checked "No" in answer to the question: "Are you subject to a court order restraining you from harassing, stalking, or threatening your . . . intimate partner?"
Parke was charged by criminal complaint on May 21, 2018, and arrested shortly thereafter. On June 28, 2018, he pleaded guilty to possession of a firearm by a prohibited person before United States District Court Judge Timothy D. DeGuisti. Parke remains in custody and will be sentenced in approximately 90 days.
This case is the result of an investigation by the Moore Police Department and the Bureau of Alcohol Tobacco and Firearms. Assistant U.S. Attorneys Brandon Hale and Jacquelyn Hutzell, prosecuted the case.
Reference is made to court filings for further information.
Monroe County Woman Sentenced to 2 ½ Years in Prison for Role in Heroin and Cocaine Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shawnette Isaac, age 41, of East Stroudsburg, Pennsylvania, was sentenced to serve 30 months’ imprisonment today by Senior U.S. District Court Judge James M. Munley, for her role in a heroin and cocaine trafficking conspiracy that operated in Monroe County during 2012 through 2015.
According to United States Attorney David J. Freed, Isaac previously pleaded guilty to conspiracy to distribute heroin and cocaine. Isaac admitted to traveling to New Jersey on several occasions to obtain a total of more than 80 grams of heroin, which is equivalent to approximately 3,000 retail bags of heroin, for distribution to others in the Monroe County area. Isaac also distributed heroin for the conspiracy in Monroe County.
Isaac was one of seven defendants indicted by a federal grand jury in March 2015. Six of those defendants have entered guilty pleas, including Daryl Trent who was sentenced earlier this week to 90 months’ imprisonment by Judge Munley.
Judge Munley also ordered Isaac to serve three years on supervised release following her prison sentence.
The charges against Isaac and the other defendants resulted from an investigation by special agents of the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Mobile County Man Sentenced to 240 Months in Prison for Two Carjacking Crimes, Two Possession of a Firearm During a Crime of Violence Crimes and Ordered to Pay Restitution in the Amount of $21,000.00Read the Press Release
The United States Attorney, Richard W. Moore, announces that, Jaquail Busby, a 26 year old resident of Mobile, Alabama was sentenced to 240 months of incarceration for a carjacking that occurred on January, 5 2017, a carjacking that occurred on April 13, 2017, and separate convictions for possession of a firearm in furtherance of each carjacking. He was also ordered to pay $21,000.00 in restitution to Easy Money Store located on Dauphin Island Parkway in Mobile, Alabama.
According to the factual statement Busby signed in connection with his guilty plea, on January 5, 2017, Busby took by force and threats of death the vehicle of R.W. using a firearm. Busby and an accomplice followed R.W. around Mobile in a vehicle as she traveled home from work in her Mazda. At the opportune time, Busby jumped out of the vehicle he was traveling in with a handgun after his vehicle cut in front of the Mazda. Busby beat on the window with the handgun and told R.W. to unlock the door. When she hesitated, he fired two shots into the air. R.W. then opened the door and Busby got into the back seat of the Mazda and told R.W. to drive. He continued to threaten R.W. as she drove to a local cemetery. After several hours, Busby told R.W to drive back to her place of employment - Easy Money located on Dauphin Island Parkway – because he intended to steal money from the business. R.W. complied. When they arrived at Easy Money, Busby stole approximately $21,000 from R.W. Busby then ordered R.W. to drive him to another location in Mobile and he then exited her vehicle and threw her keys away. R.W. retrieved the keys and called the police.
On April 13, 2017, Jaquail Busby and Calvin Harris devised a plan to steal money from Easy Money, a local title loan business. The plan included using an unknowing employee of the business. Later that day, J. P. (Easy Money employee/ victim) left Easy Money, located at 7740 Airport Blvd, Mobile, AL at about 9:00pm, got into her vehicle for the drive home. Unbeknownst to her, Harris and Busby were following her in Harris’ vehicle. After she had been driving about 15 minutes, Harris drove his vehicle around in front of J. P’s. vehicle and positioned it to where she had to stop or hit Harris’ vehicle. She chose to stop.
Busby then exited the vehicle and beat on her window with a firearm, telling J. P. to open the door. When she complied, Busby then told the victim to get out of the car, then ordered her back in the car, and Busby got in the rear driver side seat. Harris then sped away. As J. P. drove slowly on the city streets, Busby fired a shot out the window and told her to drive the speed limit. Busby forced J. P. to drive into an old cemetery. Busby told her to pull to the back and park facing out.
Busby then told J. P. to call her husband and tell him that she was staying with her mother. J. P. told Busby that if she called her husband, he would not believe her and Busby became angry and fired a second shot in the air. Busby then told J. P. to call her husband and tell him that she had to stay with her mother. Busby told J. P. that if she did not make the call that his associates would kill everyone there including her grandchild. Busby communicated with Harris via cell phone and told Harris to shoot anyone who came to the house. J. P. stated that throughout the night she kept praying that Busby would not kill her and tried to talk to him in an attempt to keep him calm.
At approximately 6:30am the next day, J. P. and Busby left the cemetery and drove back to Easy Money. During the drive, Busby and Harris communicated again and this time via text messages. In the text messages, Busby sought confirmation that the coast was clear to return to the business and steal the approximately $12,000 that was in the safe. Harris confirmed in return text messages that he would be positioned outside of Easy Money looking out to make sure no police were in sight. When they arrived, Busby told J. P. that they were going to sit outside until 7:00am because he knew that's what time she had to be in the store and that was 30 minutes before the timer on the safe would unlock. At 7:00am, Busby told J.P. to go inside and sit at the desk directly in front of where they parked so he could watch her.
At approximately 7:25am, J. P.’s co-worker, B. J. (the second victim) arrived at the location and was confronted by Busby who forced her inside at gunpoint and then made both of them go into the room where the safe was located. Once inside the room, Busby realized that he did not have his cellphone to communicate with Harris so he told J. P. to go get it from her vehicle. Busby told J. P. if she did anything funny he would blow B. J.’s brains out. When J. P. walked outside, a police car simultaneously pulled in the parking lot so she ran over to the vehicle and began explaining to an officer what was happening. Busby saw the police outside, and fled the scene in J. P.’s vehicle leaving the gun in his haste. A K9 Officer was dispatched to the location to track Busby. Busby was located a short time later hiding under a house. He was arrested and confessed giving written permission to search his cell phone Texts on his cell phone between he and Harris discussing the robbery and kidnapping were located. Busby pled guilty on January 25, 2018.
Officers of the Mobile, AL Police Department along with special agents of the Federal Bureau of Investigation investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.
Mobile County Man Sentenced to 240 Months in Prison for Two Carjacking Crimes, Two Possession of a Firearm During a Crime of Violence Crimes and Ordered to Pay Restitution in the Amount of $21,000.00Read the Press Release
The United States Attorney, Richard W. Moore, announces that, Jaquail Busby, a 26 year old resident of Mobile, Alabama was sentenced to 240 months of incarceration for a carjacking that occurred on January, 5 2017, a carjacking that occurred on April 13, 2017, and separate convictions for possession of a firearm in furtherance of each carjacking. He was also ordered to pay $21,000.00 in restitution to Easy Money Store located on Dauphin Island Parkway in Mobile, Alabama.
According to the factual statement Busby signed in connection with his guilty plea, on January 5, 2017, Busby took by force and threats of death the vehicle of R.W. using a firearm. Busby and an accomplice followed R.W. around Mobile in a vehicle as she traveled home from work in her Mazda. At the opportune time, Busby jumped out of the vehicle he was traveling in with a handgun after his vehicle cut in front of the Mazda. Busby beat on the window with the handgun and told R.W. to unlock the door. When she hesitated, he fired two shots into the air. R.W. then opened the door and Busby got into the back seat of the Mazda and told R.W. to drive. He continued to threaten R.W. as she drove to a local cemetery. After several hours, Busby told R.W to drive back to her place of employment - Easy Money located on Dauphin Island Parkway – because he intended to steal money from the business. R.W. complied. When they arrived at Easy Money, Busby stole approximately $21,000 from R.W. Busby then ordered R.W. to drive him to another location in Mobile and he then exited her vehicle and threw her keys away. R.W. retrieved the keys and called the police.
On April 13, 2017, Jaquail Busby and Calvin Harris devised a plan to steal money from Easy Money, a local title loan business. The plan included using an unknowing employee of the business. Later that day, J. P. (Easy Money employee/ victim) left Easy Money, located at 7740 Airport Blvd, Mobile, AL at about 9:00pm, got into her vehicle for the drive home. Unbeknownst to her, Harris and Busby were following her in Harris’ vehicle. After she had been driving about 15 minutes, Harris drove his vehicle around in front of J. P’s. vehicle and positioned it to where she had to stop or hit Harris’ vehicle. She chose to stop.
Busby then exited the vehicle and beat on her window with a firearm, telling J. P. to open the door. When she complied, Busby then told the victim to get out of the car, then ordered her back in the car, and Busby got in the rear driver side seat. Harris then sped away. As J. P. drove slowly on the city streets, Busby fired a shot out the window and told her to drive the speed limit. Busby forced J. P. to drive into an old cemetery. Busby told her to pull to the back and park facing out.
Busby then told J. P. to call her husband and tell him that she was staying with her mother. J. P. told Busby that if she called her husband, he would not believe her and Busby became angry and fired a second shot in the air. Busby then told J. P. to call her husband and tell him that she had to stay with her mother. Busby told J. P. that if she did not make the call that his associates would kill everyone there including her grandchild. Busby communicated with Harris via cell phone and told Harris to shoot anyone who came to the house. J. P. stated that throughout the night she kept praying that Busby would not kill her and tried to talk to him in an attempt to keep him calm.
At approximately 6:30am the next day, J. P. and Busby left the cemetery and drove back to Easy Money. During the drive, Busby and Harris communicated again and this time via text messages. In the text messages, Busby sought confirmation that the coast was clear to return to the business and steal the approximately $12,000 that was in the safe. Harris confirmed in return text messages that he would be positioned outside of Easy Money looking out to make sure no police were in sight. When they arrived, Busby told J. P. that they were going to sit outside until 7:00am because he knew that's what time she had to be in the store and that was 30 minutes before the timer on the safe would unlock. At 7:00am, Busby told J.P. to go inside and sit at the desk directly in front of where they parked so he could watch her.
At approximately 7:25am, J. P.’s co-worker, B. J. (the second victim) arrived at the location and was confronted by Busby who forced her inside at gunpoint and then made both of them go into the room where the safe was located. Once inside the room, Busby realized that he did not have his cellphone to communicate with Harris so he told J. P. to go get it from her vehicle. Busby told J. P. if she did anything funny he would blow B. J.’s brains out. When J. P. walked outside, a police car simultaneously pulled in the parking lot so she ran over to the vehicle and began explaining to an officer what was happening. Busby saw the police outside, and fled the scene in J. P.’s vehicle leaving the gun in his haste. A K9 Officer was dispatched to the location to track Busby. Busby was located a short time later hiding under a house. He was arrested and confessed giving written permission to search his cell phone Texts on his cell phone between he and Harris discussing the robbery and kidnapping were located. Busby pled guilty on January 25, 2018.
Officers of the Mobile, AL Police Department along with special agents of the Federal Bureau of Investigation investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.
Member of Drug Trafficking Organization that Distributed High Grade Marijuana Throughout New Mexico Pleads Guilty to Marijuana Trafficking and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – Joaquin Alaniz, 41, of Carlsbad, N.M., pled guilty in federal court in Albuquerque, N.M., to marijuana trafficking and money laundering charges. Alaniz’s plea agreement recommends a prison sentence of 42 months followed by a period of supervised release to be determined by the court.
Alaniz is one of ten defendants charged as the result of a two-year investigation by the FBI and IRS-Criminal Investigation into a drug trafficking organization led by Enrique Cavazos, 32, of Tijeras, N.M., that distributed high-grade marijuana throughout New Mexico and across the country. The investigation revealed that the Cavazos drug trafficking organization cultivated and purchased high-grade marijuana in California, distributed the marijuana throughout the country, and laundered its drug proceeds through a number of businesses and bank accounts in New Mexico.
Alaniz, Enrique Cavazos, his wife Lindsey Cavazos, 33, his father Felix Cavazos, 59, of Albuquerque, Daniel Nieto, 40, of Carlsbad, Eliberto Nava, 36, of Madera, Calif., Antonio Ruelas, 32, of Rio Rancho, N.M., and Robert D. Moreno, 38, of Ukiah, Calif., were charged by indictment in Nov. 2015, with marijuana trafficking and money laundering offenses. The indictment charged the co-conspirators with participating in a marijuana trafficking conspiracy that existed from at least Jan. 2008 through Nov. 2015, and operated in the District of New Mexico and elsewhere.
According to court filings, Enrique Cavazos operated a marijuana trafficking business by directing his co-conspirators to purchase large quantities of marijuana in California and distribute the marijuana in New Mexico and other destinations across the country. Lindsey Cavazos was responsible for keeping the books on businesses she and her husband established with proceeds from their marijuana trafficking activities and for the purpose of laundering their drug proceeds. The couple engaged in a money laundering conspiracy and used bank accounts in the names of several of their businesses, including a restaurant and a car dealership, to launder their drug proceeds.
The indictment was superseded in Aug. 2016, to add money laundering charges against three new defendants: Steven Becerra, 62, the owner of the Becerra Group Tax and Accounting Firm in Albuquerque, who previously was employed by the IRS for 18 years; Deborah Gutierrez, 55, who operated Automated Financial Technologies, which is no longer in business; and Glen F. Lucero, 66, a retired school teacher. The superseding indictment also removed Felix Cavazos, Enrique Cavazos’s father who passed away after the original indictment was filed, from the list of defendants.
During today’s proceedings, Alaniz pled guilty to a felony information charging him with conspiracy to distribute marijuana and conspiracy to commit money laundering. In entering the guilty plea, Alaniz admitted that from at least Jan. 1, 2008 through Nov. 17, 2015, he participated in a conspiracy to cultivate, ship and sell marijuana to wholesalers and users by purchasing marijuana from Enrique Cavazos and distributing the marijuana in New Mexico for approximately a decade. Alaniz further admitted that from at least April 10, 2013 through Nov. 17, 2015, he conspired with his codefendants to launder cash proceeds from the marijuana distribution conspiracy by transferring at least $50,850 of funds derived from the illegal sale of marijuana from his bank accounts to accounts controlled by Enrique and Lindsey Cavazos. A sentencing hearing has yet to be scheduled.
Six of Alaniz’s co-defendants have entered guilty pleas, and four have been sentenced. Nieto pled guilty on May 25, 2017, and was sentenced on June 26, 2018 to 36 months in prison followed by three years of supervised release. Lindsey A. Cavazos pled guilty on May 24, 2017, and was sentenced on June 27, 2018 to five years of probation. Enrique Cavazos pled guilty on May 24, 2017, and was sentenced on May 9, 2018, to 72 months in federal prison followed by three years of supervised release. Ruelas pled guilty on Sept. 8, 2017, and was sentenced on May 2, 2018, to 30 months in federal prison followed by three years of supervised release. Navia pled guilty on May 22, 2018, and Moreno pled guilty on June 12, 2018. Sentencing hearings for Navia and Moreno are currently scheduled for Sept. 13, 2018.
The remaining three defendants, who have entered not guilty pleas to the superseding indictment, are pending trial, which is currently scheduled for July 2018. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The investigation of this case was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. It was conducted by the Albuquerque offices of the FBI and IRS Criminal Investigation and the Albuquerque Police Department. Assistant U.S. Attorneys Jennifer M. Rozzoni, Timothy S. Vasquez and Joel R. Meyers are prosecuting the case, and Assistant U.S. Attorney Stephen R. Kotz is handling the forfeiture matters.
Massachusetts Man Pleads Guilty to Conspiracy to Distribute FentanylRead the Press Release
CONCORD - Juan Garcia, 34, of Roxbury, Massachusetts, pleaded guilty on Thursday in federal court to conspiracy to distribute fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in early 2016, the FBI received information regarding a drug dealer known as “Tony,” who was distributing drugs in Nashua and elsewhere. “Tony” was later identified as the defendant, who has used multiple names, including Juan Garcia. In February and March of 2016, the FBI used a cooperating individual to buy over 40 grams of fentanyl from the defendant and his associates in Lawrence, Massachusetts. The defendant was subsequently arrested in April 2017.
Garcia is scheduled to be sentenced on October 10, 2018.
“Fentanyl trafficking poses a grave danger to the health and safety of our citizens,” said U.S. Attorney Murray. “In order to protect the public, we will aggressively target and prosecute those who are distributing this lethal drug in the Granite State.”
"This defendant had no regard for the people to whom he peddled his poison, and the FBI Safe Streets Gang Task Force will continue to do work with our law enforcement partners to do everything it can to put a stop to drug dealers like him in an effort to make our communities safer, " said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division
This matter was investigated by the FBI New Hampshire Safe Streets Gang Task Force, which is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Hudson, Manchester, and Nashua. Assistance was provided by the FBI North Shore Gang Task Force. The case is being prosecuted by Assistant U.S. Attorney Shane Kelbley and First Assistant U.S. Attorney John J. Farley.
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Maryland Woman Indicted for Alien Harboring and Withholding Immigration Documents to Maintain Labor and Services of Zimbabwean NationalRead the Press Release
An indictment was unsealed today in the U.S. District Court of Maryland charging Shingaizdo Nhekairo, 49, of Arnold, Maryland, with one count of alien harboring for financial gain and one count of unlawful conduct with respect to immigration documents. The indictment was announced by Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Robert K. Hur.
According to the indictment, between 2006 and 2014, the defendant harbored the victim, a national of Zimbabwe. The indictment further alleges that the defendant concealed the victim’s immigration status for purposes of financial gain and confiscated the victim’s passport to maintain her labor and services.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted of alien harboring, the defendant faces a maximum sentence of 10 years in prison. The crime of unlawful conduct with respect to immigration documents carries a maximum sentence of one year in prison and requires mandatory restitution.
The case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Baltimore Division, with assistance from the Department of Labor’s Wage and Hour Division. It is being prosecuted by Assistant United States Attorney Ayn Ducao of the District of Maryland and Trial Attorneys Vasantha Rao and Emily Savner of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Maplewood, New Jersey, Man Indicted on New Counts for Alleged Phony Debt Elimination SchemeRead the Press Release
Daniel K. Dxrams, 39, of Maplewood, New Jersey, was indicted today on one count of conspiracy to commit mail fraud and nine substance counts of mail fraud in connection with an alleged debt elimination scheme to unlawfully discharge his obligations for a Rolls Royce, a Bentley and two Mercedes Benz vehicles. He was originally charged by complaint with one count of conspiracy to commit mail fraud when he was arrested with four other individuals who allegedly used phony money orders, cashier’s checks, receipts and other fabricated documents to fraudulently discharge mortgages, student loans, and other financial obligations, as described in the press release of March 20, 2018.
Manchester Man Pleads Guilty to Scheme to Defraud State of New Hampshire in Connection with Untaxed Tobacco ProductsRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Imtiaz Shaikh, 46, of Manchester pleaded guilty to one count of wire fraud in connection with a scheme to defraud the State of New Hampshire.
According to court documents and statements made in court, Shaikh’s scheme involved the purchase of tobacco products other than cigarettes, referred to as “other tobacco products” or “OTP,” from various suppliers located in Pennsylvania. Shaikh and others then transported the products to New Hampshire for sale to retail businesses. In New Hampshire, wholesale distributors of OTP must be licensed and are required to file reports identifying the quantity of OTP sold each month. During the period of the scheme identified in the charging document, New Hampshire taxed OTP at 65.03 percent of the wholesale sales price. Shaikh avoided most of the licensing and reporting requirements by conducting business through a number of shell corporations. Except for a single report filed in September 2014, Shaikh and the entities he created failed to pay the taxes owed to the State of New Hampshire. The state lost an estimated $1.5 million in tax revenue as a result of the scheme.
A sentencing hearing has been scheduled for October 16, 2018.
“Although no one likes to pay taxes, we all are required to follow the law,” said U.S. Attorney Murray. “This defendant’s fraud scheme deprived the state of lawful tax revenue in order to enhance his personal income. Those who choose to engage in schemes like this should understand that we are committed to the aggressive prosecution of individuals who engage in fraudulent conduct.”
“The guilty plea entered today by Mr. Shaikh brings an end to his elaborate scheme to avoid paying taxes through the sale and distribution of tobacco products. The state of New Hampshire and its taxpayers are the really the ones who have suffered the consequences of his actions. The FBI is committed to working with our law enforcement partners to stop this type of criminal activity, and make sure the taxpayers are made whole,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division.
Mr. Shaikh’s tax evasion scheme increased the burden on New Hampshire’s law-abiding citizens, forcing them to make up the difference,” said Kristina O’Connell, Special Agent in Charge, IRS Criminal Investigation, Boston. "Today, honest taxpayers have been reassured that no one is above the law. We will continue to collaborate with our law enforcement partners on these important investigations to protect the integrity of the American tax system."
The Federal Bureau of Investigation, the IRS Criminal Investigation, Boston, the New Hampshire State Police, the Manchester Police Department, the Salem New Hampshire Police Department, the Massachusetts State Police and the New Hampshire Department of Revenue Administration all participated in the investigation of this case. Assistant United States Attorney Donald A. Feith prosecuted the case.
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Man Illegally Residing in Lexington Sentenced to Nearly 30 Years for Drug Trafficking, Firearms, and Immigration OffensesRead the Press Release
LEXINGTON, Ky. – Fernando Rafael Lara Salas, age 40, who had previously used the aliases of Jesus Ruiz Vega, Francisco Garcia and Cristobal Palacios Garcia, was sentenced today, to 353 months in prison, by U.S. District Judge Danny C. Reeves. In January, Lara Salas was tried and convicted of multiple offenses, including drug trafficking, firearms and immigration offenses. His drug trafficking convictions included conspiracy to distribute more than five kilograms of cocaine, possession with intent to distribute more than five kilograms of cocaine, and possession with intent to distribute fentanyl, methamphetamine, and tramadol. Lara Salas’ firearms convictions included possession of a firearm in furtherance of a drug-trafficking crime, possession of a firearm as a convicted felon, and possession of a firearm by an alien. Lara Salas was also convicted of unlawfully re-entering the United States after previously being deported for a felony drug offense.
Two co-defendants in the case, Jorge De Jesus Macias Pedroza and Nestor Barron, were also convicted and previously sentenced by Judge Reeves, to terms respective terms of imprisonment of 188 and 120 months. All three men will be required to serve 85% of their sentences.
The joint investigation by federal and state law enforcement into the drug trafficking activities of Lara Salas began in August 2016 and culminated with the execution of search warrants at Lara Salas’ residence in Lexington and a cargo trailer located in a remote location in Franklin County. The search of Lara Salas’ home resulted in the seizure of 6 kilograms of cocaine, more than 50 grams of methamphetamine, a 9 mm firearm and $110,000 in U.S. currency. Evidence found in the cargo trailer revealed that Lara Salas and others utilized the trailer for the preparation of fentanyl for distribution. Agents located packaging material consistent with a kilogram quantity of a controlled substance. The packaging contained a residual amount of fentanyl, an extremely potent opioid. Also located in the trailer were five kilograms of tramadol, a Schedule IV controlled substance that is commonly used by drug traffickers as a cutting agent for fentanyl and heroin, and boxes of latex gloves. The investigation was a cooperative effort led by investigators with the Drug Enforcement Administration (DEA); the Department of Homeland Security, Immigration and Customs Enforcement (ICE); and the Lexington Police Department.
“Without the outstanding work of our law enforcements partners, this prosecution would not have been possible. Their efforts removed dangerous drugs from our streets, made our community safer, and saved lives. Prosecuting those who sell drugs in our community will continue to be a core priority of our Office,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.
United States Attorney Duncan; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Kristoffer Cortex, Acting Assistant Field Office Director, ICE; and Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police, jointly announced the sentence.
Man Arrested for Threatening to Murder Family of FCC ChairmanRead the Press Release
ALEXANDRIA, Va. – A California man was arrested today in Los Angeles on charges of threatening to kill the family of Ajit Pai, Chairman of the Federal Communications Commission, for Pai’s role in repealing regulations relating to net neutrality.
According to court documents, on or about Dec. 19 and 20, 2017, Markara Man, 33, of Norwalk, allegedly sent three emails to Chairman Pai’s email accounts. The first email accused Chairman Pai of being responsible for a child who allegedly had committed suicide because of the repeal of net neutrality regulations. The second email listed three locations in or around Arlington, and threatened to kill the Chairman’s family members. The third email had no message in its body, but included an image depicting Chairman Pai and, in the foreground and slightly out of focus, a framed photograph of Chairman Pai and his family. The FBI traced the emails to Man’s residence in Norwalk, California, and when initially confronted in May 2018, Man admitted to the FBI that he sent the email threatening Chairman Pai’s family because he was “angry” about the repeal of the net neutrality regulations and wanted to “scare” Chairman Pai.
Man is charged with a threatening to murder a member of the immediate family of a U.S. official with the intent to intimidate or interfere with such official while engaged in the performance of official duties, or with the intent to retaliate against such official on account of the performance of official duties. If convicted, Man faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorney Alexander P. Berrang is prosecuting the case.
The FBI’s Los Angeles Field Office, the Federal Protective Service, and the Arlington County Police Department provided significant assistance in this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-mj-289.
Lower Brule Woman Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on June 27, 2018, by U.S. District Judge Roberto A. Lange.
Megan Crazy Bull, age 22, was sentenced to 24 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Crazy Bull was indicted by a federal grand jury on February 14, 2018. She pled guilty on April 19, 2018.
The conviction stems from an incident on November 10, 2017, when while an inmate in the Lower Brule Detention Center, Megan Crazy Bull, began to act out in her cell. When correctional officers went to her cell to have her calm down, they observed she was holding a pencil over her head “like a knife” and shouting she was going to harm herself. Officers opened the door and Crazy Bull dropped the pencil and climbed up on her bunk. Officers ordered her to come down off the bunk and exit her cell, but she refused to do so and a restraint chair was brought outside the cell. Correctional officers entered the cell in order to remove her and place her in the restraint chair, at which point Crazy Bull stiffened up and began to actively resist the officers. During the struggle, she began to spit and kick at the officers. She was eventually secured in the chair and a spit hood was placed on her before being placed back in her cell.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Crazy Bull was immediately turned over to the custody of the U.S. Marshals Service.
Lincoln Man Sentenced for Production, Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Kenneth Joseph Jacobsen, 44, formerly of Lincoln, Nebraska, was sentenced today in Lincoln, Nebraska, to 30 years in prison by United States District Judge John M. Gerrard, for the production, distribution and receipt of child pornography. In addition to his prison sentence, Jacobsen will serve 20 years on supervised release and be required to register as a sex offender. Jacobsen was also ordered to pay $1,000 in restitution to his victims.
In December, 2016, Homeland Security Investigations (HSI) received a request from an agent in Boston asking for assistance in identifying victims of child sexual abuse believed to reside in Lincoln, Nebraska. Upon a review of the images provided and additional investigation by law enforcement, investigators of the Lincoln Police Department and HSI were led to the residence of Jacobsen, and in December, 2016, executed a search warrant at Jacobsen’s residence. When interviewed, Jacobsen admitted to taking sexually explicit digital videos and images of minor children, including prepubescent minors, and posting those pictures, through emails and internet-based web services. He also admitted to possessing images of child porn.
Forensic examination of items of computer storage media found at Jacobsen’s residence uncovered approximately 16,374 images and approximately 1,444 videos of child pornography, including images of prepubescent minors engaged in sexually explicit conduct. Of that number, approximately 1,918 images and 125 videos appear to have been produced by the Defendant. Of the videos produced by the Defendant, seven of the eleven victims have been identified from the investigation. Investigation also determined that the Defendant used the Internet, a means and facility of interstate and foreign commerce, to receive and distribute images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Department of Homeland Security and the Lincoln Police Department.
Lexington Man Sentenced to 15 Years for Trafficking in Fentanyl and Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
LEXINGTON, Ky.— Melvin Tremayne Mahone, 31, of Lexington, was sentenced to 15 years in federal prison by Chief United States District Judge Karen Caldwell for Trafficking in more than 40 grams of Fentanyl and Possession of Firearms in Furtherance of Drug Trafficking.
On October 20, 2016, a search warrant was executed at Mahone’s residence, on American Avenue in Lexington. During the arrest and search of Mahone, officers located approximately 60 grams of fentanyl concealed in his underwear. Fentanyl can be lethal in the 2 milligram range. In close proximity to Mahone were two loaded firearms. Mahone has a prior federal felony conviction for drug trafficking. Mahone pleaded guilty to the charges in March.
Under federal law, Mahone must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for 8 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowery, Special Agent in Charge, ATF; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the Lexington Police Department and the ATF. The United States was represented by Assistant United States Attorney Roger W. West.
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 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, local strategies to reduce violent crime.
Kyle Man Found Guilty of Assault on a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that Ramone McBride, age 20, was found guilty of Assault on a Federal Officer following a federal trial in Rapid City, South Dakota.
The charge carries a maximum sentence of 8 years in federal prison, and/or a $250,000 fine, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established McBride assaulted a law enforcement officer employed by the Oglala Sioux Tribe Department of Public Safety on September 4, 2017, by punching and tasing him with a taser.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted and tried the case.
A sentencing date was set for October 3, 2018. McBride was remanded to the custody of the U.S. Marshals Service pending sentencing.