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Thursday 28 June 2018
Former Local State Senator Pleads Guilty to Public Corruption Charge Involving Incident with A Staff MemberRead 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 former New York State Senator Marc Panepinto, 53, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to promise of employment, compensation, or other benefit for political activity. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that the defendant served as the New York State Senator for the 60th Senate District between January 1, 2015, and December 31, 2016. In that position, Panepinto employed a young woman as a staff member in his district office.
On January 7, 2016, the defendant and the staff member traveled together to New York City to attend a fundraiser for Panepinto. Following the event, the staff member took possession of the donations from the fundraiser. Later that evening, the defendant suggested that he and the staff member go to her hotel room to count the donations together.
While in the staff member’s hotel room, Panepinto made a series of unwanted, verbal, and physical sexual advances which were rebuffed by the staff member. The defendant eventually complied with the staff member’s request that he leave, although he did return to the staffer member’s hotel room during the early morning hours in an unsuccessful attempt to get back into her hotel room. The following morning, Panepinto and the staff member returned to Buffalo together. However, the two did not discuss the events that took place the night before.
Upset by what occurred in her hotel room, the staff member subsequently resigned from her position in Panepinto’s district office. Following her resignation, the New York State Senate conducted an investigation into what had occurred, and, as a result of the investigation, referred the matter to the New York State Joint Commission on Public Ethics (JCOPE) for further investigation.
The defendant was concerned that the JCOPE investigation would jeopardize his 2016 campaign for re-election. As a result, Panepinto directed a senior staff member to meet with the staff member and offer her money and/or new employment if she refused to participate in the JCOPE investigation. It was suggested that the new employment would be political in nature and funded in whole or in part by an Act of Congress. The meeting took place on March 7, 2016, at which time the staff member did not accept or refuse the offer. On March 9, 2016, the senior staff member contacted the staff member to arrange a follow-up meeting but the staff member did not agree to a follow-up meeting. Subsequently, on March 15, 2016, Panepinto announced that he would not be seeking re-election to the New York State Senate.
“While the defendant’s behavior in the hotel room was bad, his efforts to cover-up that behavior constituted a federal crime,” stated U.S. Attorney Kennedy. “In behaving as he did, the defendant not only abused the trust of a young female staffer over whom he held a position of authority, but he also betrayed the trust of those he was elected to serve. Today’s plea makes clear that this Office will not allow elected officials who abuse their position for personal gain to escape justice.”
“Today, Marc Panepinto admitted he directed a senior staff member to promise a financial payment or new employment to another Panepinto staffer if she would refuse to participate in a New York State Joint Commission on Public Ethics investigation,” said Gary Loeffert, Special Agent-in-Charge of the FBI's Buffalo office. “Panepinto's admitted criminal misconduct -- behavior that he engaged in while he served in public office -- epitomizes why public corruption at all levels is the FBI’s top criminal investigative priority.”
The plea is the result of an investigation by the Buffalo Division of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the New York State Joint Commission on Public Ethics, under the direction of Executive Director Seth H. Agata.
Sentencing will be scheduled at a later date.
Former ICE Chief Counsel Sentenced to Four Years in Prison for Wire Fraud and Aggravated Identity Theft SchemeRead the Press Release
Former Chief Counsel Raphael A. Sanchez of the U.S. Immigration and Customs Enforcement’s (ICE) Office of Principal Legal Advisor (OPLA) was sentenced to 48 months in prison for a wire fraud and aggravated identity theft scheme involving the identities of numerous aliens, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and ICE Principal Legal Advisor Tracy Short.
Sanchez, 44, of Seattle, Washington, pleaded guilty on Feb. 24, to one count of wire fraud and one count of aggravated identity theft. In addition to the prison term, U.S. District Court Judge Robert S. Lasnik of the Western District of Washington ordered Sanchez to pay $190,345.63 in restitution.
“Raphael Sanchez was entrusted with overseeing the honest enforcement of our country’s immigration laws,” said Acting Assistant Attorney General Cronan. “Instead, Sanchez abused that trust, and capitalized on his position at ICE to exploit his victims and line his own pockets.”
“ICE employees are required to ensure honest enforcement of more than 400 laws,” said ICE Principal Legal Advisor Short. “We cannot let one bad actor detract from the work the agency’s dedicated employees in Seattle and across the world are doing to ensure our national security and uphold public safety. Our employees are held to the highest standards of professional conduct. Individuals who violate the public’s trust will face consequences for their actions, as Mr. Sanchez did in this case. Corruption will not be tolerated.”
Sanchez, who was responsible for immigration removal proceedings in Alaska, Oregon and Washington, admitted in his plea agreement that he intentionally devised a scheme to defraud aliens in various stages of immigration removal proceedings with ICE. Sanchez used the personally identifiable information of those aliens to open lines of credit and personal loans in their names, manipulate their credit bureau files, transfer funds to himself and to purchase goods for himself using credit cards issued in their names.
Sanchez admitted that he obtained personally identifiable information of the victim aliens by using ICE’s official computer database systems and by accessing their official, hard-copy immigration A-files. He then used his work computer to forge identification documents, including Social Security cards and Washington State driver’s licenses, in the victims’ names. Sanchez used these forged documents to open credit card and bank accounts subject to his own control in the names of the aliens.
To further the scheme, Sanchez listed his residence as the aliens’ home addresses on account paperwork. In some cases, he created public utility account statements in their names to provide the necessary proof of residence to open lines of credit in their names or to conceal the scheme. He also opened e-mail and online financial accounts in the names of several aliens, and manufactured a false earnings-and-leave statement in the name of an alien and registered a car in her name.
Once the accounts were approved and opened, Sanchez made charges or drew payments totaling more than $190,000 in the names of aliens to himself or entities that he controlled, often using PayPal and mobile point-of-sale devices from Amazon, Square, Venmo and Coin to process the fraudulent transactions. In a number of cases, Sanchez purchased goods online in the names of aliens and had them shipped to his residence. Sanchez also employed credit-monitoring services and corresponded with credit bureaus in the names of aliens to conceal his fraud scheme. Sanchez also claimed three aliens as relative dependents on his tax returns for 2014, 2015, and 2016.
ICE’s Office of Professional Responsibility, the FBI, and the U.S. Postal Inspection Service investigated the case. Trial Attorneys Luke Cass and Jessica C. Harvey of the Criminal Division’s Public Integrity Section prosecuted the case.
Former DuPont Employee Charged with Theft of Trade Secrets and Lying to the FBIRead the Press Release
Josh Harry Isler, age 55, from St. Ansgar, Iowa, has been charged with one count of trade secret theft and one count of making a false statement to the Federal Bureau of Investigation. The charges are contained in an Information filed today in the United States District Court in Cedar Rapids.
The Information alleges that, during at least August 2013, while employed by DuPont and after having accepted an offer of employment with a competitor, Isler stole trade secrets of DuPont. After Isler accepted employment with a competitor of DuPont in the ethanol fuel enzyme business, he allegedly transferred hundreds of DuPont’s electronic files to an external storage device. It is also alleged Isler knew the files he downloaded contained proprietary information and trade secrets of DuPont and many related to customers of DuPont who were also customers of the competitor or whose business was being sought by the competitor. It is alleged Isler retained the files in his new job and transferred some to his new employer.
The Information also alleges that when he was interviewed by the FBI in November 2013, Isler falsely denied he had downloaded the files containing proprietary information of DuPont.
If convicted on both charges, Isler faces a maximum combined sentence of 15 years’ imprisonment, a fine of up to $500,000, and eight years of supervised release after any imprisonment. Isler could also be ordered to pay restitution to DuPont.
Isler’s initial appearance in federal court in Cedar Rapids has been scheduled for 11:30 a.m. on July 5, 2018.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Federal Bureau of Investigation. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-2032.
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Former Chief Financial Officer of Bankrate Inc. Pleads Guilty to Orchestrating Complex $25 Million Accounting and Securities Fraud SchemeRead the Press Release
The former chief financial officer of Bankrate Inc., a publicly traded financial services and marketing company formerly headquartered in North Palm Beach, Florida, pleaded guilty today for his role in orchestrating an accounting and securities fraud scheme that caused more than $25 million in shareholder losses.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin Greenberg of the Southern District of Florida and Criminal Investigations Group Inspector in Charge Daniel Adame of the U.S. Postal Inspection Service made the announcement.
Edward J. DiMaria, 53, of Fairfield County, Connecticut, pleaded guilty to one count of conspiracy to make false statements to a public company’s accountants, falsify a public company’s books, records and accounts, and commit securities fraud; and one count of making materially false statements to the Securities and Exchange Commission (SEC). DiMaria pleaded guilty before U.S. Magistrate Judge Simonton of the Southern District of Florida. DiMaria is scheduled to be sentenced on Sept. 11.
“Edward DiMaria used his position as Bankrate’s CFO to inflate the company’s earnings and mislead shareholders, auditors, and the SEC, resulting in over $25 million in losses to innocent investors,” said Acting Assistant Attorney General Cronan. “DiMaria’s conviction and the restitution in this case will hopefully provide some solace to Bankrate’s shareholders, while also reminding potential bad actors of the Department’s commitment to hold individuals accountable for their involvement in complex accounting and securities fraud schemes that harm investors and undermine our markets.”
“The consequences of this type of financial fraud scheme are far reaching, affecting not only the economy in the United States, but also the world’s financial markets,” said Inspector in Charge Adame. “Those who engage in this type of abuse of power while in positions of authority should know they cannot escape detection. They will be found and they will be held accountable for their actions. The U.S. Postal Inspection Service has a long history of investigating complex financial fraud schemes, like this one, in order to protect investors and the integrity of the financial marketplace.”
As part of his guilty plea, DiMaria admitted that between 2010 and 2014, he directed and conspired to commit a complex scheme to artificially inflate Bankrate’s earnings through so-called “cookie jar” or “cushion” accounting, where millions of dollars in unsupported expense accruals were purposefully left on Bankrate’s books and then selectively reversed in later quarters to boost earnings. In addition, DiMaria admitted that he conspired with other Bankrate employees to misrepresent certain company expenses as “deal costs” in order to artificially inflate publicly reported adjusted earnings metrics. DiMaria also admitted that he made materially false statements to Bankrate’s independent auditors to conceal the improper accounting entries, and that he caused Bankrate’s financial statements filed with the SEC to be materially misstated.
DiMaria further admitted that the scheme caused more than $25 million in losses to Bankrate’s shareholders. Pursuant to the terms of the plea agreement, DiMaria is required to pay approximately $21 million in restitution to Bankrate’s shareholders.
Hyunjin Lerner, Bankrate’s former vice president of finance, previously pleaded guilty for his role in the conspiracy. Lerner was sentenced earlier this year to 60 months in prison by U.S. District Court Judge K. Michael Moore of the Southern District of Florida.
The U.S. Postal Inspection Service’s National Headquarters Fraud Team investigated the case. Assistant Chief Henry Van Dyck and Trial Attorneys Emily Scruggs and Jason Covert of the Criminal Division’s Fraud Section are prosecuting the case with assistance from the U.S Attorney’s Office for the Southern District of Florida. The SEC also provided assistance in this matter.
Florida Man Sentenced to 32 Months for Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Jose Castillo Febles, 31, of Doral, Florida, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 32 months in prison and three years of supervised release for conspiracy to commit access device fraud and aggravated identity theft. He was also ordered to pay over $25,000 in restitution. He pleaded guilty on August 25, 2017.
Court records show that between about November 2015 and June 2016, the defendant and others used stolen credit and debit card numbers to purchase merchandise. In May 2016, as part of the conspiracy, the defendant and others traveled to Maine. On May 29, 2016, the defendant purchased over $500 worth of merchandise at a Portland Walgreens using a stolen card number belonging to a victim from Auburn.
On June 15, 2016, after two co-conspirators, Yaisder Herrera Gargallo and Meylisi Rueda, purchased merchandise at a Portland Walgreens using a stolen card number, store personnel notified the police and provided a license plate number. On June 18, 2016, a Cumberland County Sheriff’s Office deputy stopped a vehicle matching the description provided by Walgreens personnel. The defendant and two of his co-conspirators were in the vehicle. The stop led to their arrest and the discovery of merchandise, numerous fraudulent credit cards and a laptop computer. The laptop computer was later found to contain credit card numbers and related data.
Yaisder Herrera Gargallo was sentenced to 40 months in prison and three years of supervised release on November 14, 2017. Another co-defendant, Juan Carlos Febles, was sentenced to 34 months in prison and three years of supervised release on January 3, 2018. Meylisi Rueda has pleaded guilty and awaits sentencing.
The case was investigated by the Cumberland County Sheriff’s Office, the Portland Police Department and the U.S. Secret Service.
Five Tennessee Health Care Executives Charged in $2.5 Million Dollar Kickback SchemeRead the Press Release
An 11-count indictment was unsealed yesterday, charging five Tennessee health care executives with one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute and several substantive counts of violating the Anti-Kickback Statute, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Those charged are:
Brenda Montgomery, 70, of Camden, Tenn.;
Beau Jones, 50, of Loudon, Tenn.;
Sarah Dacus, 36; Greg Lawson, 42; and Josh Wiley, 35, all of Knoxville, Tenn.
The charges stem from a multi-level kickback scheme led and financed by Brenda Montgomery and the durable medical equipment (DME) company she owned and operated, CCC Medical, Inc. (CCC). Jones, Lawson, Wiley, and Dacus were arrested yesterday as part of a national healthcare fraud takedown. Montgomery, who is currently facing other federal charges connected to a previous $4.6 million dollar Medicare kickback scheme, must appear in the Middle District of Tennessee to be arraigned on the new case.
According to the indictment, Beau Jones, in his role as a sales representative for a large national DME manufacturer, recruited individuals in a position to make referrals of Medicare DME orders to CCC. The indictment alleges that in exchange for the referrals, he received kickbacks in excess of $400,000.
The indictment further alleges that Greg Lawson and Josh Wiley, sales representatives of the same company that employed Jones, were among the individuals recruited by Jones. The indictment alleges that Lawson received over $250,000 in kickbacks and Wiley received over $93,000 in kickbacks for DME referrals and orders to CCC.
According to other allegations in the indictment, Lawson recruited Sarah Dacus, a sales representative of a large international medical device manufacturer, and Dacus received kickbacks and bribes in excess of $52,000 for sending DME orders and referrals to CCC.
Finally, the indictment alleges that, from in or around January 2012 until in or around December 2017, Montgomery paid Jones, Lawson, Wiley, Dacus and other co-conspirators over $1 million in illegal kickbacks; billed Medicare for over $2.5 million in tainted DME claims; and collected in excess of $1.2 million in reimbursement for those claims.
The defendants face up to five years in federal prison on each charge as well as substantial monetary fines and penalties.
This case was investigated by the U.S. Department of Health & Human Services - Office of Inspector General; the Defense Criminal Investigative Service; and the Tennessee Bureau of Investigation - Medicaid Fraud Control Unit. Assistant United States Attorney Ryan R. Raybould of the Middle District of Tennessee and Trial Attorney Anthony Burba from the DOJ’s Fraud Section are prosecuting the case on behalf of the United States.
An indictment is merely an accusation and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.
This enforcement action is part of a nationwide health care fraud initiative of the Department of Justice being announced today by Attorney General Jeff Sessions.
Five Nashville-Area Men Indicted in Conspiracy to Fraudulently Obtain OxycodoneRead the Press Release
A federal grand jury in Nashville, Tennessee, returned a 12-count indictment on June 13, 2018, charging five individuals with various offenses, including wire fraud and aggravated identity theft, relating to a conspiracy to fraudulently obtain and distribute oxycodone, in the middle Tennessee area, announced U.S. Attorney Don Cochran, for the Middle District of Tennessee.
The indictment charges the following individuals with conspiring to fraudulently use a DEA registration number issued to another person to obtain oxycodone between January 2017 and September 2017:
Simbarashe Kanjanda, aka Simba, 37, of Hermitage, Tennessee;
William Afari, 24, of Antioch, Tennessee;
Robert Pride, Jr., 31, of Nashville, Tennessee;
AbdulNasar Nour, 24, of Antioch, Tennessee; and
Kudakawashe Mandishona, aka Kuda, 23, of Antioch, Tennessee.
According to the indictment, the five individuals were part of a conspiracy to steal the DEA registration numbers of area physicians, as well as the personal identifying information of patients, from medical and dental clinics in the middle Tennessee area. The indictment alleges the DEA registration numbers were then used to create fraudulent prescriptions for oxycodone in the names of patients whose identities had been stolen. The fraudulent prescriptions were then presented to area pharmacies by co-conspirators, who obtained the oxycodone and then conspired to possess and distribute the oxycodone in middle Tennessee.
The indictment also alleges that the defendants sent text messages to other co-conspirators to facilitate and request fraudulent prescriptions.
If convicted of the drug conspiracy, the defendants face a maximum sentence of 20 years in prison. The defendants face up an additional mandatory consecutive sentence of at least 2 years in prison for the aggravated identity theft offenses.
This case was investigated by the Drug Enforcement Administration; the Tennessee Office of Inspector General; and the Smyrna Police Department. The case is being prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
An indictment is merely an accusation and is not evidence of guilt. All defendants are presumed innocent until proven guilty in a court of law.
This enforcement action is part of a nationwide health care fraud initiative of the Department of Justice being announced today by Attorney General Jeff Sessions.
Five NW Alabama Compounding Pharmacy Employees Charged in Multi-Million Dollar Prescription Fraud Conspiracy during National Health Care Fraud TakedownRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office for the Northern District of Alabama this week charged five employees, including a district and an operations manager, of an Alabama-based compounding pharmacy with participating in a conspiracy to generate prescriptions and defraud health care insurers and prescription drug administrators out of tens of millions of dollars.
U.S. Attorney Jay E. Town announced the charges against employees of Northside Pharmacy, based in Haleyville and doing business as Global Compounding Pharmacy, as part of a nationwide health care fraud takedown. Global’s compounding and shipping facility was in Haleyville, but the pharmacy did its prescription processing, billing and customer service at its “call center” in Clearwater, Florida.
Attorney General Jeff Sessions and Department of Health and Human Services Secretary Alex M. Azar III today announced 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 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, FBi Deputy Director David L. Bowdich, Drug Enforcement Administration Assistant Administrator John Martin, HHS-Office of Inspector General Deputy Inspector General Gary Cantrell, IRS Criminal Investigation Deputy Chief Eric Hylton, Centers for Medicare and Medicaid Services Deputy Administrator and Director of the Center for Program Integrity Alec Alexander, and Defense Criminal Investigative Service Director Dermot F. O’Reilly.
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 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 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.”
U.S. Attorney Town said, “The defendants in the north Alabama case helped their employer, Global Compounding Pharmacy, defraud millions from Medicare, Blue Cross Blue Shield of Alabama and other insurance systems by pushing unnecessary medications and billing for reimbursement. The greed of these defendants, and this company, resulted in the distribution of medication when there was no need, with the primary focus on profit rather than the efficacy of care. The costs are not just monetary, but have social and health impacts on us all.”
“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, defendants from the national sweep allegedly participated in schemes to submit claims to Medicare, Medicaid and TRICARE for treatments that were medically unnecessary and often never provided. In many cases, the charges are that patient recruiters, beneficiaries and other co-conspirators were 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 more than $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 Global Compounding Pharmacy case in north Alabama, the defendants are charged with taking part in a multi-faceted, multi-million dollar scheme to defraud multiple insurance plans and their third-party pharmacy benefit managers by billing for fraudulent, often high-dollar prescriptions that Global would fill and bill for reimbursement. To maximize proceeds, Global engaged in additional fraudulent practices including automatically refilling and billing for prescriptions, regardless of patient need, and routinely waiving co-pays to incentivize patients to accept unnecessary medications and refills, according to charges and plea agreements in the case.
The U.S. Attorney’s Office, through separate informations filed in U.S. District Court, and all with associated plea agreements, charged Global Operations Manager JEFFREY SOUTH, District Manager ANGIE NELSON, sales representatives RODDRICK BOYKIN and DAWN WHITTEN, and biller STACEY CARDOZO. The informations charge each of the defendants with one count of conspiracy to commit wire fraud, mail fraud and health care fraud. South, Nelson, Boykin and Whitten also are charged with varying counts of health care fraud, and Whitten also faces a charge of aggravated identity theft.
The charges against South, 47, of Florence, Alabama, Nelson, 40, of Santa Rosa Beach, Florida, Boykin, 45, of San Antonio, Texas, Whitten, 55, of Columbus, Georgia, and Cardozo, 28, of Largo, Florida, add to eight Global sales representatives previously charged by the U.S. Attorney’s Office and who all have pled guilty to the conspiracy and scheme.
“These defendants, motivated by pure greed, helped conduct a complicated scheme to obtain unnecessary, high-priced medications, purely to gain the insurance reimbursement,” said Birmingham FBI Field Office Special Agent in Charge Johnnie Sharp Jr. “Rooting out health care fraud is central to the well-being of both our citizens and the overall economy. Health care fraud costs the country tens of billions of dollars a year, and the FBI seeks to identify and pursue investigations against the most egregious offenders involved in health care fraud through investigative partnerships with other federal agencies.”
According to court documents, Global hired sales representatives who were located in various states and were responsible for generating prescriptions from physicians and other prescribers. To generate a high volume of prescriptions, Global hired representatives who were married or related to doctors and other prescribers, and encouraged sales representatives to volunteer at doctors’ offices where they would review patient files and push Global’s products to patients, according to court documents.
The FBI, U.S. Postal Inspection Service, HHS-OIG, DCIS and IRS-CI, investigated the Global cases, which Assistant U.S. Attorneys Chinelo Dike-Minor, Don Long and Nicole Grosnoff are prosecuting.
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 10 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 more than $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.
Five Doctors and Eight Healthcare Professionals Charged as Part of National Healthcare Fraud TakedownRead the Press Release
Thirteen individuals, including five doctors, a chiropractor, three licensed physical and occupational therapists and two pharmacy owners have been charged for their participation in fraudulent schemes in connection with which Medicare and Medicaid programs were billed more than $163 million. The charges filed in federal court in Brooklyn and Central Islip, New York, are part of a nationwide health care fraud takedown, led by the Medicare Fraud Strike Force, which resulted in criminal charges against 601 individuals for their alleged participation in health care fraud schemes involving approximately $2 billion in fraudulent claims.
The charges were announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York; John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services - Office of Inspector General, Office of Investigations, New York Regional Office (HHS-OIG); James D. Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI); and Dennis Rosen, Inspector General, New York State Office of the Medicaid Inspector General (OMIG). The results of the nationwide takedown were announced today by Attorney General Jeff Sessions; Alex M. Azar II, Secretary, HHS; Christopher Wray, Director, FBI; Robert W. Patterson, Acting Administrator, Drug Enforcement Administration (DEA); Daniel Levinson, Inspector General, HHS-OIG; Don Fort, Chief, IRS-CI; Seema Verna, Administrator, Centers for Medicare and Medicaid Services.
“As alleged, the defendants charged throughout the Eastern District of New York as a part of the nationwide health care takedown abused their positions to enrich themselves, while bilking Medicare and Medicaid. They did so without regard to the elderly and vulnerable citizens whose health depends upon these essential programs. Licensed medical professionals and others who cheat the system will be investigated and prosecuted to the full extent of the law,” stated United States Attorney Donoghue. Mr. Donoghue extended his grateful appreciation to the U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), the New York City Police Department (NYPD), the New York Attorney General’s Medicaid Fraud Control Unit (MFCU), the New York City Human Resources Administration and the New York City Health and Hospitals Corporation, Office of Inspector General, for their assistance in the investigations in this district.
“Turning a blind eye to the needs of Medicare and Medicaid recipients,
these medical officials set their sights on personal gain,” stated FBI Assistant Director-in-Charge Sweeney. “Our doctors and healthcare professionals are entrusted to serve those in need, but these individuals used their occupations as leverage to fulfill their fraudulent scheme. By allegedly billing Medicare and Medicaid more than $163 million, the defendants selfishly diverted funds allocated to our most vulnerable citizens. Devoted to protecting the welfare of our citizens, we will continue to uproot those who blatantly take advantage these programs.”
“Health care fraud depletes funds intended to provide care for our most vulnerable citizens,” stated HHS-OIG Special Agent-in-Charge Lampert. “This takedown sends a clear message that criminals who engage in health care fraud schemes will be caught and face consequences for their actions.”
“Medical doctors and medical professionals should be some of the most trusted people in our lives,” stated IRS-CI Special Agent-in-Charge James Robnett. “The financial expertise of IRS-Special Agents is needed to not only decipher the tax violations, but is necessary to unravel the sophisticated widespread financial fraud perpetrated against the safety net millions of Americans rely upon on a daily basis.”
“Medicaid fraud is not a victimless crime. Those engaged in schemes like this prey on the most vulnerable New Yorkers, rob the health care system of vital resources, and waste taxpayer dollars,” stated OMIG Inspector General Rosen. “My office will continue to work closely with our federal partners to hold wrongdoers fully accountable.”
The schemes charged in the Eastern District of New York, detailed in eight indictments and one criminal information, are as follows:
United States v. Wael Bakry, et al.: The superseding indictment charges five health care professionals for their role in a wide-ranging health care fraud scheme in Brooklyn and Queens that billed the Medicare program for more than $116 million. Wael Bakry, a physical therapist, Abraham Demoz, a physician, Victor Genkin, an occupational therapist, Mayura Kanekar, an occupational therapist, and Alexander Khavash, a chiropractor, were each charged with conspiracy to commit health care fraud, conspiracy to commit money laundering, conspiracy to pay health care kickbacks, conspiracy to defraud the United States by obstructing the lawful functions of the Internal Revenue Service, and subscribing to a false and fraudulent tax return. Additionally, Bakry, Kanekar and Khavash were each separately charged with two false claims counts. The charges stem from the defendants’ involvement in a scheme, run through multiple medical practices, in which the defendants paid illegal kickbacks for the referral of patients to their clinics. These patients, in turn, subjected themselves to purported physical and occupational therapy and other services in return for kickbacks. The superseding indictment was filed on June 20, 2018. The case, which is pending before United States District Judge Sterling Johnson, Jr., is being prosecuted by Assistant Chief A. Brendan Stewart and Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section.
United States v. Artem Ashirov: The indictment charges Artem Ashirov, a pharmacist and sole proprietor of ABO Pharmacy in Brooklyn, with five counts of violating the Anti-Kickback Statute. The charges stem from a scheme in which Ashirov paid and offered to pay kickbacks for prescriptions filled at his pharmacy. Between 2015 and 2018, Ashirov, through ABO Pharmacy, billed more than $14.9 million to Medicare and Medicaid. Ashirov was arrested, and arraigned earlier today before United States Magistrate Judge Ramon E. Reyes, Jr., at the federal courthouse in Brooklyn. The case is being prosecuted by Assistant United States Attorney Erin E. Argo of the U.S. Attorney’s Office for the Eastern District of New York.
United States v. Gary Peresiper: The indictment charges Gary Peresiper, a medical clinic business manager, with conspiracy to pay health care kickbacks. The charge stems from Peresiper’s role at two Brooklyn clinics, Pulmonary Solutions, P.C., and Multi Care Medical NY PLLC. Peresiper and co-conspirators submitted claims through these clinics for purported diagnostic testing and other services for beneficiaries who had been directed to the clinics in return for kickbacks. From November 2010 to June 2013, the clinics billed Medicare approximately $10.2 million in claims, and were paid approximately $4.7 million on those claims. Peresiper was arrested, and arraigned before United States Magistrate Judge Peggy Kuo at the federal courthouse in Brooklyn on June 4, 2018. The case is being prosecuted by Trial Attorney Sarah Wilson Rocha of the Criminal Division’s Fraud Section.
United States v. Iouri Winogradov: Iouri Winogradov, the operator of Brooklyn ambulette company Ambulette Star Trans, was charged with one count of conspiracy to violate the Anti-Kickback Statute and one count of conspiracy to commit money laundering. The charges stem from Winogradov’s role in a kickback and money laundering scheme in which Winogradov and co-conspirators received and paid illegal kickbacks for the referral of patients to medical clinics. The patients, who were transported to and from the clinics by Ambulette Star Trans, subjected themselves to purported physical and occupational therapy and other services. Between 2010 and 2014, Ambulette Star Trans was paid approximately $7 million as a result of claims submitted to Medicaid. The indictment was unsealed on June 27, 2018, and the defendant remains at large. The case is being prosecuted by Andrew Estes of the Criminal Division’s Fraud Section.
United States v. Yuriy Barayev: Yuriy Barayev, a pharmacy owner, was indicted on one count of health care fraud. The charge stems from Barayev’s ownership of a Queens pharmacy, Woodhaven Rx Inc., through which he submitted claims for medications that were purportedly dispensed by his pharmacy, but in fact were never dispensed to beneficiaries. From November 2013 to December 2015, Medicare reimbursed the pharmacy approximately $6.6 million for pharmaceutical claims. Barayev was arrested, and arraigned before United States Magistrate Judge Steven L. Tiscione at the federal courthouse in Brooklyn on June 26, 2018. The case is being prosecuted by Trial Attorney Sarah Wilson Rocha of the Criminal Division’s Fraud Section.
United States v. Yong Jun Kim: The indictment charges Yong Jun Kim, a medical doctor who operated My Health Wellness Center in Flushing, New York, with one count of conspiracy to commit health care fraud and one count of violating the Anti-Kickback Statute. The charges stem from Dr. Kim’s role in a scheme in which claims were submitted to Medicare for physical therapy services that were not medically necessary, not provided, or otherwise did not qualify for reimbursement. Between 2012 and 2015, Dr. Kim billed Medicare approximately $5.6 million and was paid approximately $3.5 million on those claims. Dr. Kim was arrested, and arraigned before United States Magistrate Judge Steven L. Tiscione at the federal courthouse in Brooklyn on June 27, 2018. The case is being prosecuted by Senior Litigation Counsel Patricia Notopoulos of the U.S. Attorney’s Office for the Eastern District of New York.
United States v. Yekaterina Kleydman: The indictment charges Yekaterina Kleydman, a medical doctor, with one count of health care fraud and three counts of making false claims. The charges stem from a scheme in which Dr. Kleydman fraudulently billed Medicare and Medicaid for cosmetic dermatological procedures that did not qualify for reimbursement. Between January 2015 and March 2018, Dr. Kleydman billed Medicare and Medicaid approximately $2.5 million and was paid approximately $700,000 on those claims. Dr. Kleydman was arrested, and arraigned before United States Magistrate Judge Steven L. Tiscione at the federal courthouse in Brooklyn on June 25, 2018. The case is being handled by Trial Attorney Debra Jaroslawicz of the Criminal Division’s Fraud Section.
United States v. Harold Bendelstein: The indictment charges Harold Bendelstein, a medical doctor, with one count of health care fraud and two counts of making false claims. The charges stem from a scheme in which Dr. Bendelstein billed Medicare and Medicaid for incision procedures to patients’ ears, when, in fact, Dr. Bendelstein either did not perform the procedure specified or performed no procedure at all. Between January 2014 and February 2018, Dr. Bendelstein billed Medicare and Medicaid approximately $585,000 and was paid approximately $200,000 on those claims. Dr. Bendelstein was arrested, and arraigned before United States Magistrate Judge Steven L. Tiscione at the federal courthouse in Brooklyn on June 27, 2018. The case is being prosecuted by Trial Attorney Debra Jaroslawicz of the Criminal Division’s Fraud Section.
United States v. Hal Abrahamson: The information charges Hal Abrahamson, a licensed podiatrist, with one count of health care fraud. The charges stem from a scheme in which Dr. Abrahamson submitted claims to Medicare and private insurance companies for procedures he did not perform, including skin grafts and wound packing, among other false billings. Between 2013 and 2017, Dr. Abrahamson caused a loss of approximately $869,000 to the Medicare program and other insurers. Dr. Abrahamson was arraigned and pleaded guilty before United States District Judge Denis R. Hurley at the federal courthouse in Central Islip on June 26, 2018. The case is being prosecuted by Assistant United States Attorney Charles Kelly of the U.S. Attorney’s Office for the Eastern District of New York.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The Defendants:
WAEL BAKRY
Age: 46
Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-0353 (SJ)
Dr. Abraham Demoz
Age: 58
Oceanside, New YorkE.D.N.Y. Docket No. 17-CR-0353 (SJ)
Victor Genkin
Age: 49
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-0353 (SJ)
Mayura Kanekar
Age: 43
Bayside, New YorkE.D.N.Y. Docket No. 17-CR-0353 (SJ)
Alexander Khavash
Age: 41
Parkland, FloridaE.D.N.Y. Docket No. 17-CR-0353 (SJ)
Artem Ashirov
Age: 42
Rego Park, New YorkE.D.N.Y. Docket No. 18-CR-0321 (WFK)
Gary Peresiper
Age: 52
East Rockaway, New YorkE.D.N.Y. Docket No. 18-CR-0280 (SJ)
Iouri Winogradov
Age: 51
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-0317 (JBW)
Yuriy Barayev
Age: 43
Briarwood, New YorkE.D.N.Y. Docket No. 18-CR-0318 (FB)
Dr. Yong Jun Kim
Age: 48
Roslyn, New YorkE.D.N.Y. Docket No. 18-CR-0320 (ARR)
Dr. Yekaterina Kleydman
Age: 35
Staten Island, New YorkE.D.N.Y. Docket No. 18-CR-0310 (NGG)
Dr. Harold Bendelstein
Age: 57
Far Rockaway, New YorkE.D.N.Y. Docket No. 18-CR-0309 (SJ)
Dr. Hal Abrahamson
Age: 55
Melville, New YorkE.D.N.Y. Docket No. 18-CR-0314 (DRH)
Federal Prosecutors Targeting Violent Crime in Wichita, Garden CityRead the Press Release
WICHITA, KAN. – Federal prosecutors are teaming up with local and state law enforcement agencies to target violent crime in Wichita and Garden City, U.S. Attorney Stephen McAllister said today.
The Project Safe Neighborhoods (PSN) initiative will prioritize federal prosecutions of repeat offenders and convicted criminals who carry firearms in the two cities, where violent crime rates are higher than average for Kansas.
“Violent crime rates are on the rise in both cities,” U.S. Attorney Stephen McAllister said. “By working together, we can size up the problems and concentrate our resources where we get the best results. Our goal is to make both communities safer.”
Drug trafficking, gang activity and other factors drive violent crime rates and make each city’s problems unique, McAllister said. The PSN program is aimed at directing federal resources – including federal prosecutors as well as investigators from the Bureau of Alcohol, Tobacco, Firearms and Explosives and other agencies – to support the work of local police departments, sheriffs and district attorneys.
Both Garden City and Wichita have reported increased gang activity that fuels violent crime. Law enforcement officials in both cities, McAllister said, have been very receptive to working with the U.S. Attorney’s office on the PSN program.
According to the KBI’s most recent report, the violent crime rate for Kansas is 3.7 per 1,000 people. That compares to a rate of 5.1 in Garden City and a rate of 10.6 in Wichita, according to the KBI report, which was based on 2016 figures.
In Wichita, a PSN Task Force will be formed, including two agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Assistant U.S. Attorney Matt Treaster and Assistant District Attorney Mandee Schauf from the Sedgwick County District Attorney’s Office, as well as officers from the Wichita Police Department and the Sedgwick County Sheriff’s Department.
McAllister said a federal prosecutor and an assistant district attorney will meet regularly to review cases and discuss prosecution strategies.
In Garden City, PSN prosecutors are targeting gang members, repeat offenders and known drug traffickers.
McAllister said he recently received authorization from the Justice Department to hire two new federal prosecutors in Kansas to concentrate on violent crime cases. Those prosecutors will work with the PSN 2.0 program, as well as tackle violent crime in Topeka, which also has suffered a surge in violent crimes recently.
The new PSN initiative is based on a 2001 program of the same name that proved successful in reducing violent crime, McAllister said. One of the keys to the program is targeted enforcement. U.S. Attorneys in collaboration with their partners are working to identify the most violent locations in their districts and to concentrate enforcement there.
The PSN program also calls for prosecutors to work with local communities to prevent crime by supporting programs to engage teenagers in constructive ways that promote respect for law enforcement and steer them away from crime, as well as programs that reduce recidivism.
Etna Man Sentenced to One Year and a Day for Marijuana ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that James Mansfield, 33, of Etna, was sentenced today in U.S. District Court by Judge Jon D. Levy to one year and a day in prison and three years of supervised release for conspiring to manufacture, distribute, and possess with intent to distribute marijuana. Mansfield pleaded guilty on February 15, 2018.
According to court records, during a period between October 2010 and August 2016, the defendant conspired with others to illegally manufacture and distribute marijuana. The defendant grew marijuana at a large, sophisticated indoor growing facility in Frankfort, Maine which he was told was an illegal medical marijuana grow. In May 2016, law enforcement officers executed a search warrant at the facility and seized about 400 marijuana plants, 295 marijuana root balls, and paraphernalia used to manufacture and process marijuana. According to the search warrant affidavit, the defendant and his co-conspirators were not registered as medical marijuana caregivers with the Maine Department of Health and Human Services (DHHS), and the location of the facility was not reported to DHHS.
The investigation was conducted by the U.S. Drug Enforcement Administration.
Eagle Butte Woman Sentenced for Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine, was sentenced on June 27, 2018, by U.S. District Judge Roberto A. Lange.
Cherae Runs After, age 23, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Runs After was indicted by a federal grand jury on November 9, 2016. She pled guilty on April 19, 2018.
On or about August 1, 2015, and continuing through November 9, 2016, Runs After knowingly and intentionally combined, conspired, confederated and agreed with others to distribute and possess with the intent to distribute 500 grams or more of methamphetamine on the Cheyenne River Indian Reservation.
Runs After met Alfredo Chavez-Mendoza in Utah through her family. Chavez-Mendoza told Runs After that he wanted to come to South Dakota in order to make money selling methamphetamine. However, he did not know anybody in South Dakota, and more specifically, on the Cheyenne River Indian Reservation who either used, or distributed, methamphetamine. He asked Runs After to introduce him to drug dealers in the Eagle Butte area.
Runs After introduced Chavez-Mendoza to Kristina Lofton, Stephanie Lofton, and Robert "Blue" Lofton for the purpose of linking him with locals who could sell methamphetamine supplied by Chavez-Mendoza. Chavez-Mendoza worked together with the Lofton family to distribute methamphetamine on Cheyenne River.
In addition to being the party that introduced Chavez-Mendoza to the Cheyenne River area, Runs After also distributed methamphetamine for him. Runs After owed Chavez-Mendoza several thousand dollars for previous fronts of methamphetamine he made to her.
Alfredo Chavez-Mendoza, Christina Lofton, Stephanie Lofton, Robert Lofton, Tyler and Ashley Peterson, Roy Antrim, Braxtyn Garreau, and Charlie Marshall have all previously been convicted for their involvement in this narcotics trafficking conspiracy.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, and Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Runs After was immediately turned over to the custody of the U.S. Marshals Service.
Dose of reality - fighting the opioid epidemicRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia, in partnership with the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA) Program, have released an opioid public service announcement to remind Georgians that the opioid epidemic demands the urgent attention of everyone in our community.
“Fighting this epidemic remains our highest priority and we will continue to prosecute criminals who threaten our communities with these dangerous drugs,” said U.S. Attorney Byung J. “BJay” Pak. “This public service announcement is a renewed call to remain vigilant in our efforts, as we continue to confront the challenges of this public health emergency. We must continue to work together – parents, children, teachers, neighbors, stakeholders, businesses and community leaders – to fight this epidemic and save lives.
“Georgians unfortunately have gotten a dose of reality about the dangers of opioids,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “In 2017, too many Georgians (nearly 1,050) died as a result of opioid overdoses. Atlanta-Carolinas HIDTA is committed to forming strategic partnerships with law enforcement and community partners in an effort to combat this crisis.”
The public service announcement highlights Joseph Abraham, a 19-year-old from Gwinnett County, Georgia, who struggled with addiction and its consequences for several years. He first experimented with drugs in the 8th grade. Throughout the years, his parents, David and Kathi Abraham, intervened by providing Joe with drug treatment, sober living, therapy services, and participation in Alcoholics Anonymous / Narcotics Anonymous (AA/NA). On May 26, 2017, Joe lost his battle with drug addiction minutes after taking a fatal mixture of heroin and fentanyl. Joe is not alone. In 2017, an estimated 1,043 Georgians also lost their lives to opioid overdoses.
“My son has a name and he is more than a statistic. Joe made a mistake. A fatal mistake. One that could not be fixed. Our lives are forever changed because of the opioid problem that is devastating so many families like ours,” said Kathi Abraham. “Addiction does not discriminate. The opioid crisis and the rise of heroin use is not purely for people living in the inner city. Silence is not the solution. We must increase awareness, decrease the stigma of addiction, and educate both our parents and our children. It’s up to us to act in order to save others.”
The public service announcement is currently being shown in 17 theaters within the Northern District of Georgia as a reminder of the reality of this epidemic. To view the public service announcement, please visit our website at https://www.justice.gov/usao-ndga/video/dose-reality-georgia. For additional information and resources, please visit www.doseofrealityga.org/get-support.
This education campaign is part of Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), which is an initiative launched by the U.S. Attorney’s Office to partner with federal and local law enforcement to fight the devastating effects that illegally-prescribed painkillers, heroin, and synthetic opioids, such as fentanyl have on our neighborhoods.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Document Fraud Leads to Federal Prison for Illegal AlienRead the Press Release
A Guatemalan man who unlawfully used a fraudulent identification document was sentenced today to almost three months in federal prison.
Miguel Abel Raymundo-Perez, age 25, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a May 17, 2018 guilty plea to one count of unlawful use of identification documents.
At the guilty plea, Raymundo-Perez, an illegal alien, admitted that on May 24, 2014, he used a fraudulent Green Card when completing employment forms to get a job in Cedar Rapids. The social security account number and the Green Card number used by Raymundo-Perez belonged to other people. Raymundo-Perez also used the same fraudulent Green Card and social security account number when applying for work in Cedar Rapids in October 2014.
Raymundo-Perez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Raymundo-Perez was sentenced to 84 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Raymundo-Perez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-26-LRR.
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District of Idaho Participates in National Health Care Fraud TakedownRead the Press Release
BOISE – 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.
U.S. Attorney for the District of Idaho Bart M. Davis announced the District of Idaho’s participation in the National Health Care Fraud Takedown. In the District of Idaho, three defendants, all of whom are medical professionals, were charged for their roles in three separate fraud schemes involving controlled substances.
Jennifer Fanopoulos, 40, of Meridian, Idaho, is a registered nurse who pleaded not guilty on June 26, 2018, to an indictment charging her with multiple counts of obtaining controlled substances by fraud and identity theft. Fanopoulos’ trial is set for August 21, 2018, in front of Senior U.S. District Court Judge Edward J. Lodge at the federal courthouse in Boise.
Benjamin Hurley, 37, of Rigby, Idaho, is a pharmacist who pleaded not guilty on June 26, 2018, to an indictment charging him with two counts of obtaining controlled substances by fraud. Hurley’s trial will be set for a later date in front of U.S. District Court Judge David C. Nye at the federal courthouse in Boise.
John Steiner, 35, of Lewiston, Idaho, is a pharmacist who is charged in an indictment with multiple counts of obtaining controlled substances by fraud. Steiner is set to appear in court on July 3, 2018, before Chief U.S. Magistrate Judge Ronald E. Bush at the federal courthouse in Coeur d’Alene.
The charge of obtaining controlled substances by fraud is punishable by up to four years in prison, a maximum fine of $250,000 and one year of supervised release. The charge of identity theft is punishable by up to twenty years in prison, a maximum fine of $250,000, and three years of supervised release.
These three cases were investigated by the Drug Enforcement Agency Tactical Diversion Squad. The Department of Health and Human Services Office of Inspector General also assisted with the investigation of Fanopoulos.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Dexter Man Pleads Guilty to Marijuana ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Terrence Sawtelle, a/k/a “Terry,” 49, of Dexter, Maine pleaded guilty today in U.S. District Court to conspiring to manufacture, distribute, and possess with intent to distribute marijuana.
According to court records, during a period of time between October 2010 and August 2016, the defendant conspired with others to illegally manufacture and distribute marijuana at a facility in Frankfort, Maine and to distribute it at the Owl’s Club, in Bangor in violation of federal law, and under the cover of, but in violation of, Maine’s Medical Marijuana program.
In May 2016, agents searched the Frankfort facility and seized marijuana in various stages of harvest and cultivation, together with paraphernalia and items used to manufacture and process marijuana. In August 2016, agents searched property in downtown Bangor, including the Owl’s Club, and seized processed marijuana. At the time of the searches, the location of the Frankfort facility was not reported to DHHS as required.
The defendant faces up to 20 years in prison, between three years and life of supervised release, and a $1,000,000 fine. The defendant will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Drug Enforcement Administration.
Des Moines Man Sentenced to Prison for Firearms OffensesRead the Press Release
David Marken Aikoriegie sentenced to 96 months for stealing firearms from area gun retailers
DES MOINES, Iowa – On June 27, 2018, David Marken Aikoriegie, age 23, of Des Moines, appeared before United States District Court Senior Judge Robert W. Pratt and was sentenced to 96 months in prison for three counts of stealing a firearm from a federal firearm licensee and unlawful sale of a stolen firearm, announced United States Attorney Marc Krickbaum. Aikoriegie was ordered to serve three years of supervised release to follow his prison term.
According to court documents, Aikoriegie admitted he stole three firearms from JLM Gun Shoppe in Urbandale on November 16, 2017; ten firearms from Rangemasters in Clive on December 2, 2017; and eleven firearms from Rangemasters on December 14, 2017. He also admitted to selling one of those stolen firearms to another person on December 16, 2017.
This investigation was conducted by the Clive Police Department; United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Des Moines Police Department; and Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as 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.
Department of Justice Announces New Immigration Compliance Requirements for FY 2018 GrantsRead the Press Release
The Department of Justice today posted solicitations for four public safety grants. Applicants for these FY 2018 grants will be required to certify compliance with new conditions to these grants that will increase information sharing and other cooperation between federal, state, and local law enforcement. These new grant conditions will ensure that federal immigration authorities have the information they need to enforce immigration laws and keep our communities safe.
The new conditions require recipient jurisdictions to certify that they: (1) comply with 8 USC 1373 and 1644, which promote information sharing and other cooperation between state and local law enforcement and federal immigration authorities; (2) when practicable, provide advance notice before releasing a criminal alien from a state or local detention center; (3) permit Department of Homeland Security personnel to access criminal detention facilities in order to meet to conduct interviews of criminal aliens in state or local custody; and (4) comply with federal criminal laws related to the harboring of illegal aliens.
The grants also allow for preferential consideration of a grant application where the applicant plans to use immigration-cooperation tactics to address public safety in their jurisdiction.
"So-called 'sanctuary' policies make all of us less safe because they intentionally undermine our laws and protect illegal aliens who have committed crimes,” Attorney General Jeff Sessions said. “As part of accomplishing the Department of Justice's top priority of reducing violent crime, we must encourage these 'sanctuary' jurisdictions to change their policies that undermine public safety, and to partner with federal law enforcement to remove criminals.”
More details on these grants are below:
- Supporting Innovation: Field-Initiated Programs to Improve Officer and Public Safety
This grant solicitation invites applicants to pilot, assess, and implement original approaches that target emerging or chronic crime problems facing the country and placing our officers and public at risk.
- Justice Accountability Initiative (JAI): Pilot Projects Using Data-driven Systems to Reduce Crime and Recidivism
This grant solicitation invites applicants to reduce recidivism and crime by improving the effectiveness of risk assessments and to provide a more data-driven approach system-wide.
- Gang Suppression Planning: Build Capacity for a Multilateral Data-Driven Strategy to Promote Public Safety
This grant solicitation seeks to understand a jurisdiction’s gang landscape and be able to use data to develop effective gang control strategies. It will aim to reduce and sustain reductions in community youth violence, particularly gun and gang violence, and victimization; prevent violence and promote healing from victimization and exposure to violence in the home, school, and community; and increase the safety, well-being, and healthy development of children, youth, and families.
- A Law Enforcement and Prosecutorial Approach To Address Gang Recruitment of Unaccompanied Alien Children program:
This grant solicitation invites jurisdictions that have high levels of youth- perpetrated gun crime and gang violence and that can demonstrate a willingness and readiness to develop fully comprehensive community- and data-driven responses. Funding will support selected jurisdictions to undertake strategic planning and capacity-building work through multidisciplinary and community partnerships.
Defendants sentenced for an attempted armed carjacking at a Sam’s ClubRead the Press Release
ATLANTA - Arsalan Khalid Khan and Patrick Davis Gegenheimer have been sentenced to 10 years in federal prison for attempting to commit an armed carjacking in a busy Sam’s Club parking lot in Chamblee, Georgia.
“Khan and Gegenheimer showed no regard for life when they brazenly attempted to carjack an innocent shopper,” said U.S. Attorney Byung J. “BJay” Pak. “These criminals will no longer threaten the safety of our citizens, but will now serve lengthy prison sentences that reflect the serious and violent nature of their crimes.”
“This case is the product of a concerted collaborative effort on the part of ATF, the U.S. Attorney’s Office and the Chamblee Police Department to identify, investigate, and prosecute the perpetrators of this violent crime.” said Special Agent in Charge Arthur Peralta. “Khan and Gegenheimer chose to commit this act and use a gun. These sentences ensure that they will not have an opportunity to terrorize anyone for a long time.”
“We want to thank our partner law enforcement agencies for their efforts that resulted in the removal of two dangerous individuals from society,” said Chamblee Police Chief Donny Williams. “The reckless disregard for the safety of innocent bystanders demonstrated the necessity of a severe penalty in this instance. I am proud of the quick response of our officers on the street. They didn’t give up searching for these dangerous individuals when it appeared they had gotten away, and that made the difference.”
According to U.S. Attorney Pak, the charges and other information presented in court: On September 1, 2017, Khan and Gegenheimer approached a shopper as he was loading goods into his minivan in the parking lot of a Sam’s Club in Chamblee, Georgia. Khan aimed a pistol at the shopper and demanded his car keys. After the shopper complied, Khan ordered the victim to get into the minivan. At that point, the shopper grabbed the pistol and wrestled it away from Khan. The pistol discharged during the struggle, injuring Khan’s hand. Khan and Gegenheimer then fled the parking lot, however, Chamblee police officers found and arrested the defendants a few minutes later.
Arsalan Khalid Khan, 27, of Cumming, Georgia, and Patrick Davis Gegenheimer, 24, of Atlanta, Georgia were each sentenced to 10 years in prison, to be followed by five years of supervised release by U.S. District Judge Timothy C. Batten, Sr. The defendants were convicted of these charges on March 19, 2018, after pleading guilty to aiding and abetting each other in using a firearm to commit a violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Chamblee Police Department.
Assistant U.S. Attorney William G. Traynor prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Defendant sentenced to prison for Ponzi scheme in which over 160 investors lost approximately $11 millionRead the Press Release
ATLANTA - Billy Wayne McClintock has been sentenced to prison for his role in a Ponzi scheme that garnered approximately $20 million and cost over 160 investors in excess of $11 million.
“McClintock and his co-conspirator promised investors a profitable and successful return on their investments, when in fact they were compensating investors with funds raised from other investors,” said U.S. Attorney Byung J. “BJay” Pak. “Investors should be cautious when offers that sound too good to be true are wrapped with promises of high rates of returns.”
“The victims who invested in this scheme may never be made whole again, but hopefully they can take some solace in the FBI’s commitment to hold McClintock, and anyone else who is motivated by greed, accountable for their actions,” said J. C. Hacker, Acting Special Agent in Charge of FBI Atlanta. “Unfortunately this case is a sad reminder to investors to be very careful where they entrust their hard earned money.”
According to U.S. Attorney Pak, the charges and other information presented in court: McClintock and a co-conspirator, Diane Alexander, operated a Ponzi scheme until being shut down by the U.S. Securities and Exchange Commission in the fall of 2012. McClintock and Alexander began the scheme as early as 2003, when McClintock signed up the first investors. McClintock was portrayed as the U.S. National Director of the “Trust,” a European based entity that purportedly engaged in various banking activities. Alexander first participated as an investor, and then became McClintock’s salesperson, portrayed as a “Regional Director” (although there is no evidence of any other directors).
McClintock and Alexander ultimately raised over $20 million from approximately 220 people nationwide for loans to the Trust. They offered 38 percent annual returns and told potential investors that their funds were sent to Europe for use in a variety of banking activities that purportedly generated profits sufficient to pay the promised returns. McClintock and Alexander also offered referral fees to investors as an incentive to recruit new investors.
In reality, McClintock pooled money from investors in U.S. bank accounts and used it to pay the promised returns and referral fees. In addition, McClintock and Alexander used investor funds for their personal benefit. McClintock took approximately $1.5 million in investor funds, withdrawing $285,000 in cash and also using funds to purchase a car, gold coins, solar panels for his home, costumes for a musical show, and other personal uses, including payment of property taxes.
There was no evidence that any money went to or came back from Europe, or of any real returns or profits from any actual investment, much less in amounts necessary to meet promises made to investors. When their scheme was terminated, over 160 investors incurred losses in excess of $11 million.
Billy Wayne McClintock, 76, of Bradenton, Florida has been sentenced to 10 years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $10,100,111.76. McClintock was found guilty by a jury on January 25, 2018.
This case was investigated by the Federal Bureau of Investigation.
Douglas W. Gilfillan, Chief of the Cyber and Intellectual Property Section, and Assistant U.S Attorney Alex R. Sistla prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Davenport Man Pleads Guilty to Heroin DistributionRead the Press Release
Larry Lazell Bolden admitted to distributing heroin involved in overdose deaths
DAVENPORT, IA – On Wednesday, June 27, 2018, Larry Lazell Bolden, age 50, of Davenport, appeared before United States Magistrate Judge Stephen B. Jackson, Jr. and pleaded guilty to Distribution of a Controlled Substance Resulting in Death announced United States Attorney Marc Krickbaum.
According to the plea agreement, Bolden admitted to distributing heroin to a confidential informant beginning in December 2016. Bolden also admitted to distributing heroin in January 2017 to an individual at a hotel in Davenport. That individual supplied the heroin to a friend, who died shortly after ingesting the substance. Lab results confirmed the substance contained fentanyl. Bolden admitted several days after the overdose death, he distributed heroin to an another individual at the same hotel. That person died shortly after ingesting the substance.
Sentencing is scheduled for October 23, 2018, at 10:00 a.m. before United States District Court Judge Stephanie M. Rose. Bolden faces a mandatory minimum term of imprisonment of twenty years, a maximum term of imprisonment of life, and a maximum fine of $2,000,000.
This matter was investigated by the Davenport, Rock Island, and Moline Police Departments. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Dallas Man Pleads Guilty to Methamphetamine-Trafficking ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that MICHAEL LEVERIDGE, age 45, of Dallas, Texas, pled guilty today to one count of conspiring to traffic 500 grams or more of methamphetamine. For this offense, LEVERIDGE faces a mandatory minimum sentence of 10 years in prison, a maximum life sentence, a fine of up to $10,000,000 and at least five years of supervised release. U.S. District Judge Jane Triche Milazzo set sentencing for LEVERIDGE on September 27, 2018.
According to court documents, in 2014, during the New Orleans Decadence Festival, LEVERIDGE traveled to New Orleans with approximately 21 ounces (over one-half kilogram) of a mixture containing methamphetamine. LEVERIDGE intended to resell the methamphetamine in the New Orleans area. Agents recovered the 21 ounces of methamphetamine, along with other contraband, during a search warrant of LEVERIDGE’s room at the Bourbon Orleans Hotel in the French Quarter over Decadence Festival weekend.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Louisiana State Police in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Convicted Felon Sentenced to More than Five Years in Federal Prison After Throwing a Loaded Gun out a Car Window in Cedar RapidsRead the Press Release
A convicted felon who threw a loaded gun out a car window during a traffic stop in Cedar Rapids was sentenced today to more than five years in federal prison.
Iviontae Jackson, age 24, from Cedar Rapids, Iowa, received the prison term after a January 4, 2018 guilty plea to one count of being a felon in possession of a firearm.
Information at sentencing showed that Jackson was riding in a car on October 22, 2017, when the Cedar Rapids police initiated a traffic stop of the car. Jackson threw a loaded gun out the window, but officers were able to find it. Jackson had previously been convicted of assault with a dangerous weapon in 2011. In that case, Jackson had stolen $8,000 in jewelry from a jewelry store in the Coral Ridge mall in Coralville, Iowa. An employee of the store tried to chase him, but Jackson swung a knife at and threatened to cut the employee. Jackson was also convicted of conspiracy in 2015, which resulted in a victim being struck with a gun. Jackson was discharged from probation on the 2015 conviction on October 8, 2017, only two weeks before being caught with the loaded gun he threw out the window. In sentencing Jackson, the court noted he had been treated leniently in past criminal convictions, his history of violence starting at age 11, and that he was at a high risk to recidivate.
Jackson was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Clark was sentenced to 64 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Jackson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-91.
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Convicted Felon Charged in a Federal Indictment in Connection with Two Armed Robberies in the Central West EndRead the Press Release
St. Louis, MO – Brandon Mardell Woods, 33, of St. Louis, was charged in a federal indictment charging him with two felony count of interference with commerce by threats or violence; two felony counts of brandishing a firearm in furtherance of a crime of violence; two felony counts of carjacking; and one felony count of felon in possession of a firearm.
According to the court documents, on or about June 17, 2018, Robbery victim “R.C.” was walking to her vehicle in the 4400 block of Maryland when an individual later determined to be Brandon Mardell Woods (“Woods”) approached her from behind. Woods stuck a gun in her stomach and demanded that R.C. give him her money. When R.C. advised Woods that she didn’t have any money, Woods ordered her to take him to an ATM.
Woods pointed the firearm at her as he drove her car to a U.S. Bank ATM in the 3500 block of North Kingshighway. Woods attempted to use R.C.’s ATM card but the ATM didn’t work. He drove to an Action Banking ATM at a BP Gas Station in the 5000 block of Natural Bridge and used R.C’s ATM card to withdraw $500.00. Woods eventually got out of the car and R.C. was able to drive away. Security photographs show Woods using R.C.’s ATM card.
On June 19, 2018, Woods approached robbery victim “M.F.” with a gun and ordered her to take money out of the same ATM as the June 17th victim.
On June 20, 2018, St. Louis Police officers spotted Woods walking in the 5100 block of Natural Bridge. Seeing the police, Woods dropped the backpack he was carrying and fled. Woods was soon after taken into custody nearby. He was found to be in possession of more than 30 rounds of ammunition. The police seized and searched his backpack. In it, they found a .38 special handgun.
If convicted, the charge of interference with commerce by threat or violence carries a maximum penalty of 20 years in prison and a $250,000 fine; the charge of brandishing a firearm in furtherance of a crime of violence carries a penalty of not less than 7 years, not more than life, consecutive to all other counts, and a $250,000 fine; the charge of carjacking carries a maximum penalty of 15 years in prison and a $250,000 fine; and the charge of felon in possession of a firearm carries a maximum penalty of 10 years in prison and a $250,000 fine.
“I am grateful that an armed robber has been taken off the streets as a result of continued cooperation between the St. Louis Police Department and our federal law enforcement partners” said U.S. Attorney Jeffrey B. Jensen. “This is another case made through the courageous cooperation of crime victims. This type of cooperation is essential to effectively addressing our community’s gun violence.”
As is always the case, charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
This case is being investigated by the St. Louis Metropolitan Police Department, the Federal Bureau of Investigation and the Circuit Attorney’s Office. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
Colorado Power Company Executive Sentenced to Prison, Fined, Ordered to Pay Restitution for Defrauding the Department of EnergyRead the Press Release
PITTSBURGH, PA - A Colorado power company executive has been sentenced in federal court to 18 months’ imprisonment, three years supervised release, a $50,000 fine and $2 million dollars in restitution on his conviction of filing a false claim against the United States Department of Energy, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed sentence yesterday on Michael J. Ruffatto, 72, of Englewood, CO.
In connection with the sentencing, the court was advised that on December 8, 2009, the Department of Energy’s National Energy Technology Laboratory, located in Pittsburgh, Pennsylvania, awarded a multi-million dollar cooperative agreement to North American Power Group Ltd. (NAPG), a corporation headquartered in Denver, Colorado, that is owned and controlled by Ruffatto, an attorney and graduate of Stanford University.
The purpose of the agreement was to study the carbon sequestration potential of an 880-acre site in Campbell County, Wyoming. The agreement required NAPG to conduct seismic studies and to drill wells necessary for the studies. Instead of performing the work required under the cooperative agreement, Ruffatto fraudulently transferred millions of dollars of award monies into his personal bank account and used the award monies to fund an extravagant lifestyle. Ruffatto secretly filtered millions of dollars of award monies through Ruffatto’s wholly owned subsidiary, North American Land and Livestock, LLC, while falsely representing to the Department of Energy that the subsidiary was doing work on the project.
At Ruffatto’ s direction, NAPG submitted twelve invoices to the Department of Energy that were false and fraudulent, resulting in the wrongful payment of over $5,700,000 in award monies as a result of the fraud. As part of the terms of the plea agreement, Ruffatto accepted responsibility for all twelve false claims filed with the Department of Energy and agreed to make full restitution of over 2 million dollars currently owed as restitution to the Department of Energy. Ruffatto has already paid $3.7 million to the government toward his restitution.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Department of Energy, Office of Inspector General, for the investigation leading to the conviction in this case.
Colorado Doctor Arrested and Charged with Selling Oxycodone Prescriptions for CashRead the Press Release
DENVER – John Van Wu, age 48, of Golden, was arrested today pursuant to a warrant issued in connection with an indictment charging him with violations of the Controlled Substances Act, mail fraud, and falsification of records, announced U.S. Attorney Bob Troyer, Drug Enforcement Administration Special Agent in Charge William T. McDermott, and Department of Labor Employee Benefits Security Administration Regional Director James Purcell.
As described in the indictment, the defendant operated a medical clinic at locations in Lakewood and Denver between January 2011 and March 2015. During that time period the defendant devised a scheme in which he billed employee benefit programs and insurers for services that were never actually rendered and not medically necessary. For example, the defendant billed insurance programs for expensive, time-consuming office visits when his patients had relatively routine ailments. He also billed those programs for injections that he did not actually perform. The defendant also claimed to have provided office visits to patients who were outside of the country on the day the visits purportedly took place.
The indictment also alleges that the defendant sold oxycodone prescriptions for cash when presented with the driver’s license of others to whom he could issue the prescription. He then created fake medical files containing false information about the services purportedly provided to those patients.
Today’s arrest is part of the National Health Care Fraud Takedown announced by the Department of Justice. The defendant is one of seventy-six doctors charged in opioid cases prosecuted around the country. https://www.justice.gov/opa/pr/national-health-care-fraud-takedown-results-charges-against-601-individuals-responsible-over. This case was unsealed this morning after the defendant’s arrest.
The case was jointly investigated by the Drug Enforcement Administration and the U.S. Department of Labor Employee Benefits Security Administration. The defendant is being prosecuted by Assistant United States Attorney Bryan D. Fields.
The defendant is presumed innocent unless and until proven guilty in a court of law.
Cleveland woman indicted for making straw purchase of rifle used in attempted robbery of Willoughby credit unionRead the Press Release
A Cleveland woman was indicted in federal court for making a straw purchase from a gun store in Eastlake of a rifle that was later used in the attempted robbery of a credit union.
Marshyia S. Ligon, 20, was indicted on one count of making a false statement in the acquisition of a firearm.
Ligon made false statements on Oct. 4, 2017 when she purchased a Smith & Wesson M&P 15, 556 caliber rifle bearing the serial number TH11301 from Sherwin Shooting Sports, 33140 Vine Street in Eastlake. Ligon falsely stated she was the actual buyer of the rifle when, in fact, she was not the actual buyer of the firearms, according to the indictment.
The firearm was recovered one week later at the Willoughby Eastlake Schools Credit Union, where it was used in an attempt to rob the credit union.
This case was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Willoughby Police Department, with assistance from the Cuyahoga County Prosecutor’s Crime Strategies Unit. It is being prosecuted by Assistant U.S. Attorney Scott Zarzycki.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cheshire Man Admits to Distributing Narcotics to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS J. HALLERAN, 36, of Cheshire, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of possession with intent to distribute, and distribution of, heroin and/or fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on July 25, 2017, Southington Police and emergency medical personnel responded to a residence in Southington where they encountered an unresponsive 31-year-old female on the floor. The female was pronounced deceased. Investigators seized five folds of suspected heroin/fentanyl, two empty folds, other drug paraphernalia, and the victim’s cellphone.
The Office of the Chief Medical Examiner for the State of Connecticut concluded that the victim’s death was caused by the combined effects of fentanyl, acetyl fentanyl, methadone, alprazolam and alcohol.
Analysis of the seized cellphone revealed that HALLERAN had been supplying heroin/fentanyl to the victim for approximately six weeks, and that he delivered heroin/fentanyl to the victim at her residence on the night of July 24, 2017.
HALLERAN is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on September 21, 2018. The offense carries a maximum term of imprisonment of 20 years.
HALLERAN is detained pending sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Southington Police Department. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Charges filed against second defendant for insider trading related to the Equifax data breachRead the Press Release
ATLANTA - Sudhakar Reddy Bonthu, a former software development manager for Equifax, was arraigned today on federal charges of insider trading for allegedly using information entrusted to him to purchase put options and turn a profit when the news of the data breach was made public. A grand jury previously indicted Jun Ying, a former chief information officer of Equifax U.S. Information Solutions, on charges of insider trading relating to the data breach. Ying pleaded not guilty on March 15, 2018.
“Bonthu allegedly took advantage of his position to profit while members of the public were unaware of the data breach at Equifax,” said U.S. Attorney Byung J. “BJay” Pak. “The integrity of the stock markets are jeopardized when greedy individuals who are entrusted with nonpublic information use the knowledge for their benefit.”
“Company insiders must follow the same rules that govern investors, otherwise their actions undermine the public’s confidence in the nation’s stock markets,” said J. C. Hacker, Acting Special Agent in Charge of FBI Atlanta. “To maintain a fair and equitable stock market for everyone, the FBI will do everything in its power to hold those accountable who would choose to take advantage of their inside knowledge.”
“As alleged in our complaint, Bonthu used confidential information to determine that his company had suffered a massive data breach and then illegally profited from it,” said Richard R. Best, Director of the Securities and Exchange Commission’s Atlanta Regional Office. “Corporate employees cannot take advantage of their access to sensitive information and unlawfully benefit from it.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Equifax Inc. is a consumer credit reporting agency headquartered in Atlanta. During the summer of 2017, Equifax was the victim of a data breach, where hackers acquired names, Social Security numbers, birth dates, and addresses of over 145 million consumers.
Sudhakar Reddy Bonthu was a software development manager for Equifax’s Global Consumer Services team in August 2017. In that role, he was entrusted with information that allegedly resulted in him concluding that Equifax was the victim of a data breach. On August 25, 2017, Bonthu and other Equifax employees were asked to assist in responding to the breach, although he was not directly informed that Equifax had been breached. On August 25, 2017, Bonthu was informed that the target date for announcing the breach publicly was September 6, 2017. Around August 30, 2017, Bonthu learned that approximately 100 million individuals’ information was exposed as part of the breach and that the data included names and Social Security numbers. The next day, Bonthu received an email related to his work on the breach with a file attached named “EFXDatabreach.postman_collection.” “EFX” is the stock ticker symbol for Equifax.
On September 1, 2017, Bonthu bought 86 put options in Equifax stock that expired on September 15, 2017. Those put options allowed him to profit if the value of Equifax stock dropped within that two-week period. Equifax publicly disclosed the data breach on September 7, 2017, and its stock fell the next day. Bonthu then exercised his put options, realizing a profit of more than $75,000.
Sudhakar Reddy Bonthu, 44, of Atlanta, Georgia was arraigned on a criminal information before U.S. Magistrate Judge Alan J. Baverman, after waiving his right to be indicted by a federal grand jury.
Members of the public are reminded that an information and an indictment only contain charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the U.S. Securities and Exchange Commission.
Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Assistant U.S. Attorney Lynsey M. Barron are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
CVS Pharmacy, Inc. to Pay $1.5 Million to Settle Civil Penalty Claims for Violations of the Controlled Substances ActRead the Press Release
CVS Pharmacy, Inc. (“CVS”) has agreed to pay $1.5 million to resolve the United States’ investigation that certain of its pharmacy stores located in Nassau and Suffolk counties on Long Island violated the federal Controlled Substances Act (“CSA”) by failing to timely report the loss or theft of controlled substances, including hydrocodone, an opioid that is one of the most commonly diverted controlled substances. The CSA requires pharmacies, such as CVS, to timely report the loss or theft of controlled substances so that DEA can promptly investigate.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, U.S. Drug Enforcement Administration, New York Division (DEA), announced the settlement.
“The failure to promptly report the loss or theft of prescription drugs as required by law contributes to the opioid epidemic, which has caused devastating harm to individuals and our community,” stated United States Attorney Donoghue. “The settlement with CVS demonstrates the resolve by this Office and the DEA to use all available tools to address this crisis at every level and reduce the availability of highly addictive, dangerous drugs.”
“This year, it is estimated that more than two million Americans will suffer from opioid addiction,” stated DEA Special Agent-in-Charge Hunt. “Law enforcement, treatment professionals and educators are arming ourselves with strategies and actions to combat this growing crisis. Through regulatory actions, DEA Diversion investigators and the EDNY identified that CVS violated the Controlled Substances Act. This settlement is significant because it shows that big chain pharmacies, like CVS, are taking responsibility for violating federal law, which is a step in the right direction for curbing the opioid epidemic.”
CVS is a Rhode Island corporation with its corporate headquarters in Woonsocket, Rhode Island. CVS, directly or through its retail pharmacy subsidiaries and affiliates, operates retail pharmacies in the State of New York that dispense prescription drugs, including controlled substances, to retail consumers.
Opioid abuse has reached epidemic proportions throughout the United States. According to the United States Department of Health & Human Services Centers for Disease Control and Prevention (“CDC”), on average 46 Americans died every day from an overdose involving prescription opioids in 2016. In response to the overwhelming number of prescriptions, and the mounting number of overdoses and deaths, two months ago the CDC issued new guidelines recommending that doctors prescribe less addictive and less powerful pain relievers before prescribing highly addictive drugs, and that they prescribe limited amounts.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA’s Long Island District Office Diversion Group D-11, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department and New York State Police, along with other key federal, state and local government partners, launched the Initiative to mount a comprehensive response to the increase in opioid abuse. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 22 health care professionals. The Initiative also has resulted in civil enforcement actions against a hospital, a pharmacy and a pharmacy chain, the removal of prescription authority from numerous doctors and the expansion of information sharing among enforcement agencies to better target and pursue drug traffickers.
The United States’ case is being handled by Assistant United States Attorney Diane C. Leonardo of the Office’s Civil Division.
Today, the Department of Justice also announced a national healthcare fraud takedown that resulted in charges against 601 individuals responsible for over $2 billion in fraud losses, which can be viewed at: https://www.justice.gov/opa/pr/national-health-care-fraud-takedown-results-charges-against-601-individuals-responsible-over.
Boston-Area Investment Adviser Sentenced for FraudRead the Press Release
BOSTON – A Boston-area investment adviser was sentenced today in federal court in Boston for using his clients’ funds to make his own investments and to pay personal expenses.
Cornelius Peterson, 29, of Newton, was senteced by U.S. District Court Judge Nathaniel M. Gorton to 20 months in prison, two years of supervised release and ordered to pay restitution in the amount of $462,000. Peterson previously pleaded guilty to one count of conspiracy and investment adviser fraud and three counts of bank fraud. Co-defendant James Polese, 51, of Wenham, pleaded guilty in April 2018 to one count of conspiracy and investment adviser fraud, eight counts of bank fraud, and one count of aggravated identity theft. He is scheduled to be sentenced on Aug. 2, 2018.
From approximately 2014 to June 2017, Polese and Peterson misappropriated approximately half a million dollars from their clients by transferring funds out of their clients’ accounts without their knowledge or consent. Specifically, on Aug. 20, 2014, Polese and Peterson used $100,000 from a client’s account to invest in a wind farm project despite the fact that it was not an investment opportunity authorized by their company. On May 15, 2015, Polese and Peterson used $400,000 from another client’s account to back a letter of credit in support of the wind farm project. On multiple occasions in 2017, Polese transferred funds from a client’s account to pay personal expenses, including college tuition payments and credit card bills. Polese and Peterson were terminated from the company in June 2017.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Securities & Exchange Commission also provided valuable assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit prosecuted the case.
Bergen County, New Jersey, Man Admits Conspiring to Defraud the IRS by Filing False Corporate Tax ReturnsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted conspiring with his father to file false federal tax returns for shell companies, resulting in $191,953 in fraudulent refunds, U.S. Attorney Craig Carpenito announced.
Jason Crespo, 35, of Elmwood Park, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiring with Jose Crespo, his father, to defraud the IRS by filing false corporate tax returns and cashing the resulting fraudulent refund checks.
According to the documents filed in this case and statements made in court:
Between 2010 and 2012, Jason and Jose Crespo filed numerous false federal corporate tax returns – IRS Forms 1120 – for fake businesses, knowing that the businesses were not real and that the credits claimed on the tax returns were false. The Crespos took advantage of fuel excise tax credits offered under federal tax law. The federal government taxes gasoline, diesel fuel, and certain other types of fuel, but certain commercial uses of these fuels are nontaxable. Businesses that purchase fuel for a nontaxable use can claim a tax credit by filing a “Credit for Federal Tax Paid on Fuels” – IRS Form 4136.
In one instance Jason and Jose Crespo filed a federal corporate tax return for 2008 for Jason Cleaning Service Corp. that falsely claimed a fuel excise tax credit of $14,556 and a resulting refund of $10,592. In fact, Jason Cleaning Service Corporation was a shell company and the fuel excise tax credit and other tax return numbers were false. Jason Crespo received and cashed the $10,592 refund check at a check-cashing facility in Guttenberg, New Jersey. He cashed many other refund checks for similar false tax returns at this same facility.
Jose Crespo pleaded guilty on Sept. 11, 2017, before Judge Linares to engaging in the fuel excise tax credit scheme and another tax fraud scheme, both of which claimed fraudulent refunds from the IRS of approximately $1.5 million. Jose Crespo was sentenced on Dec. 20, 2017, to three years in prison.
Marilyn Crespo, Jose Crespo’s wife, pleaded guilty on March 1, 2018, before Judge Linares to engaging in the same fuel excise tax credit scheme and causing a loss to the IRS of $286,742. She was sentenced June 27, 2018, to one year and one day in prison.
The filing a false tax return count carries a maximum potential penalty of three years in prison, and a potential $250,000 fine, or twice the gross gain or loss from the offense. Jason Crespo’s sentencing is set for Oct. 4, 2018.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division in Newark.
Defense counsel: Rubin Sinins Esq., Springfield, New Jersey
Beaver County Man Pleads Guilty to Distributing Fentanyl that Caused a Fatal OverdoseRead the Press Release
PITTSBURGH - A resident of Hopewell Township, PA, pleaded guilty in federal court to one count of distribution of fentanyl, which he acknowledged caused the death of a victim identified as L.K., United States Attorney Scott W. Brady announced today.
Corey Bargerstock, age 43, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on July 6, 2016, Bargerstock sold stamp bags of fentanyl to L.K., which caused L.K. to fatally overdose.
Judge Fischer scheduled sentencing for November 16, 2018, at 11 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed 1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense/offensesoffense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorneys Tonya Sulia Goodman and Timothy Lanni are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Beaver County District Attorney’s Office, Detectives Bureau, and the Hopewell Township Police Department conducted the investigation that led to the prosecution of Bargerstock.
Baton Rouge-Based Health Care Fraud Strike Force Announces Charges Against Twenty-Six Individuals as Part of National Health Care Fraud and Opioid TakedownRead 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 by the Medicare Fraud Strike Force, 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 approximately $2 billion in false billings. Of those charged, more than 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty (30) 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 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, Administrator Seema Verma of the Centers for Medicare and Medicaid Services (CMS), and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).
As part of the National Health Care Fraud and Opioid Takedown, in Baton Rouge, Louisiana, United States Attorney Brandon J. Fremin announced new charges against 26 individuals for health care fraud, opioid-related crimes, and related offenses. The Medicare Fraud Strike Force is part of the joint initiative announced in May 2009 between the U.S. Department of Justice and the U.S. Department of Health and Human Services to reduce and prevent Medicare and Medicaid fraud through enhanced cooperation. In December 2009, a Medicare Fraud Strike Force team was deployed in the U.S. Attorney’s Office in Baton Rouge, Louisiana. Over the past eight years, the team has continued working in Baton Rouge and expanded across southern Louisiana.
Christopher Armstrong / Louisiana Spine & Sports
In the first case, a federal grand jury has returned an indictment charging Christopher William ARMSTRONG, age 43, of Prairieville, Louisiana, with health care fraud, conspiracy to violate the federal Controlled Substances Act, and possession with intent to distribute a controlled substance. According to the indictment, ARMSTRONG was a licensed physician’s assistant and was employed by Louisiana Spine & Sports LLC, a pain management clinic in Baton Rouge from approximately August 2004 through approximately January 2014. In that role, ARMSTRONG allegedly logged into the clinic’s electronic computer system and, without authorization, created fraudulent prescriptions for controlled substances such as oxycodone and hydrocodone and then either forged the signatures of the clinic’s physicians on the prescriptions or surreptitiously caused physicians to unwittingly sign the prescriptions.
According to the indictment, ARMSTRONG would provide the fraudulent prescriptions to other individuals, who would fill the prescriptions and return the controlled substances to ARMSTRONG. At this point, according to the indictment, in an effort to conceal the scheme, ARMSTRONG would delete the records of the fraudulent prescriptions from the clinic’s computer system. Through this alleged scheme, the indictment alleges that the defendant caused local pharmacies to submit false and fraudulent claims to TRICARE, a federal health benefit program; that the defendant conspired with others to obtain controlled substances such as oxycodone and hydrocodone by misrepresentation and fraud, and to possess the substances with the intent to distribute them; and that, on various dates in 2013, the defendant actually possessed such substances with intent to distribute them.
This ongoing investigation is being handled by the Drug Enforcement Administration, the U.S. Department of Health and Human Services—Office of Inspector General (HHS-OIG), and the Federal Bureau of Investigation. The investigation was further developed by the East Baton Rouge District Attorney’s Office. The prosecution is being led by Christopher B. Brinson, a Trial Attorney with the Department of Justice’s Criminal Division—Fraud Section, Assistant U.S. Attorney Demetrius D. Sumner, and Dustin Davis, Assistant Chief of the Fraud Section.
Gretchen Duplantis / Spine & Body
In the second case, the court has unsealed a bill of information charging Gretchen DUPLANTIS, age 44, of Prairieville, Louisiana, with two counts of health care fraud. According to the bill and related documents that the defendant has signed, DUPLANTIS was the owner, operator, and managing employee of Spine and Body, LLC (“Spine and Body”), a physical therapy clinic located in Baton Rouge. Beginning in March of 2012 and continuing through March of 2014, DUPLANTIS, through Spine and Body, submitted fraudulent claims to Medicare and Blue Cross Blue Shield of Louisiana (BCBSLA) for physical therapy treatments she had purportedly provided to individuals at her clinic. Specifically, DUPLANTIS allegedly (1) billed Medicare and BCBSLA for therapy sessions when the patients had not received any treatment; (2) billed BCBSLA for therapy sessions purportedly performed on Spine and Body employees, who had not received any such treatment; and (3) billed for treatments that had been provided by unlicensed employees, contrary to representations made to BCBSLA and Medicare in the claims. From March of 2012 through March of 2014, DUPLANTIS, through Spine and Body, submitted approximately $1.6 million in claims to Medicaid and BCBSLA and was paid more than $470,000. The ongoing investigation is being handled by HHS-OIG and the FBI and the prosecution is being led by Dustin Davis, who serves as Assistant Chief of the Department of Justice’s Criminal Division—Fraud Section, and Assistant U.S. Attorney Demetrius D. Sumner.
Mark Stephan Immasche
In the third case, the United States has filed a bill of information charging Mark Stephan IMMASCHE, age 44, of Prairieville, Louisiana, with conspiracy to possess with the intent to distribute oxycodone. According to the bill of information, beginning in approximately 2012 and continuing through April 2017, IMMASCHE conspired with others to possess with the intent to distribute oxycodone, a Schedule II controlled substance. The ongoing investigation is being handled by HHS-OIG and the FBI and the prosecution is being led by DOJ Trial Attorney Christopher B. Brinson and AUSA Demetrius D. Sumner.
Michael Gaines
In the fourth case, a federal grand jury has returned an indictment charging Michael Dan GAINES, age 65, of Baker, Louisiana, with three counts of health care fraud. GAINES was a supervisory-level licensed clinical social worker at St. Gabriel Health Clinic, Inc. (St. Gabriel), a federally qualified health center in St. Gabriel, Louisiana, which contracted with the Iberville Parish School Board to provide medical services within the school district. FQHCs such as St. Gabriel could also provide services related to the diagnosis and treatment of mental illnesses, or Axis I disorders, provided that any such treatment was medically necessary, among other requirements. According to the indictment, however, St. Gabriel would provide character development seminars and other educational, character-building programs to entire classrooms of students during regular class periods, and then submit claims to Medicaid as though St. Gabriel had performed group psychotherapy, which St. Gabriel represented was medically necessary to treat the students’ purported actual Axis I disorders. According to the indictment, GAINES and others caused St. Gabriel practitioners to falsely record that students who attended the seminars had been diagnosed with Axis I disorders, and then, after each classroom visit, GAINES and others would create, complete, and certify progress notes that reiterated the previously diagnosed Axis I disorder and described the nature of the services that GAINES and others had purportedly provided as part of St. Gabriel’s treatment. According to the indictment, during the relevant time period, St. Gabriel’s claims for group psychotheraphy totaled more than $1.8 million. The indictment charges GAINES with causing the submission of numerous false claims to Medicaid for purported group psychotherapy in connection with the alleged scheme.
The case is being investigated by HHS-OIG, the Louisiana Attorney General’s Medicaid Fraud Control Unit, and the FBI. The case is being prosecuted by DOJ Trial Attorney Jared Hasten and Assistant U.S. Attorneys Jessica M.P. Thornhill and M. Patricia Jones.
Randy Lamartiniere
In another case, a federal grand jury has returned an indictment charging Randy Lamartiniere, age 59, a physician in Baton Rouge, Louisiana, with 55 counts of distribution of controlled substances (opioids and Adderall). Nine of the counts involve Lamartiniere allegedly dispensing prescriptions after his license to practice medicine was suspended by the Louisiana State Board of Medical Examiners, with the suspension including a prohibition on prescribing controlled substances. The remaining forty-six counts involve Lamartiniere dispensing prescriptions for Adderall and opioids outside the scope of his medical practice and not for a legitimate medical purpose. According to the indictment, Lamartiniere’s unlawful prescriptions subjected at least 25 patients to serious injury and addiction. The case is being investigated by the DEA—Baton Rouge District Office’s Tactical Diversion Squad, the Iberville Parish Sheriff’s Office, the West Baton Rouge Sheriff’s Office, the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, and the Louisiana State Police. The prosecution is being led by AUSA Paul Pugliese.
Hot Off The Press
In the final case, the United States Attorney announced the unsealing of an indictment in Operation Hot Off The Press, an extensive, multi-year investigation that targeted an illegal drug trafficking network in the Baton Rouge area. The indictment names a total of twenty-one (21) defendants—Byron ROBBINS, Shanard Zelron BANKS, Reuben Maurice CRAWFORD, Toddriquez Deangelo BRADLEY, Chris D. DAVIS, Michael Wayne BROWN, Jr., Le’Alan Dequan BANKS, Ricky Elvis JOSEPH, Rodrick Demond HARRIS, Charlene Latrice BROCK, Darlene Patrice BROCK, Latasha Nicole BROCK, Nakia Martell BROCK, Stanley Renard LIAS, Jr., Kentrell Dontay AUGUSTUS, Zion HURST, Tremayne DABNEY, Daryl Joseph ADAMS, Jonathan Latard BOOTH, Clinton Keith CHAFFOLD, Jr., and Marjoe SANCHEZ HOLMES—all of whom are alleged to be residents of Baton Rouge, Zachary, Baker, and River Ridge, Louisiana.
The sixty-eight (68) count indictment charges the defendants with a wide variety of offenses, such as conspiracy; distribution of heroin, furanyl fentanyl, methamphetamine, and clonazolam; distribution of counterfeit substances; possession of punches and dies for counterfeiting controlled substances; and several additional controlled substance offenses. The indictment also charges several defendants with possession of firearms by convicted felons, possessing firearms in furtherance of drug-trafficking crimes, engaging in unlawful monetary transactions, and failure to file IRS Form 8300s. The ongoing investigation is being led by Assistant U.S. Attorney Cam T. Le.
The extensive investigation was led by the DEA, working in partnership with the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, the Internal Revenue Service—Criminal Investigations Division, the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, and the Louisiana State Police, with valuable assistance from the Los Angeles County Sheriff’s Office. This operation was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
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 more than 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion. In Baton Rouge, since 2009, the Baton Rouge-based Medicare Fraud Strike Force has charged more than 90 defendants with health care fraud and related offenses, achieving a 95% conviction rate.
U.S. Attorney Brandon Fremin stated: “Today’s historic announcement illustrates the top to bottom commitment by those in the U.S. Department of Justice to fight healthcare fraud and the opioid epidemic. My office shares this commitment and dedication, as illustrated by the successful results we have secured with our outstanding federal, state, and local partners. The South Louisiana Healthcare Fraud Strike Force started in 2009 and continues to be an enormous success in rooting out fraudsters stealing off the backs of hard-working taxpayers, the elderly, and the infirm. I commend our prosecutors and our strike force partners – the U.S. DOJ Fraud Section, HHS-OIG, FBI, and Attorney General Landry’s Medicaid Fraud Control Unit – for their tenacity in bringing the cheats and the scammers to justice. I similarly applaud the outstanding efforts of our many federal, state, and local partners who have joined us in the ongoing battle against an opioid epidemic that has touched far too many lives in our communities. In particular, today’s announcement highlights the extraordinary efforts of the DEA in working with our office and our state and local partners to combat opioid trafficking. Score one for the good guys today. Our fight continues tomorrow.”
Special Agent-in-Charge C.J. Porter of the United States Department of Health and Human Services, Office of Inspector General’s (OIG) Dallas Regional Office, stated, “This takedown is a warning to fraudsters and to those who illegally obtain and distribute opioid drugs that their crimes will be uncovered.” “Along with our law enforcement partners, we will work to ensure that criminals who orchestrate these schemes are brought to justice.”
Eric J. Rommal, Special Agent-in-Charge of the New Orleans Division of the Federal Bureau of Investigation, stated, “Countless Americans are dependent on Medicare and Medicaid as a means to receive essential medical care. Unfortunately, there are individuals and entities who aim to abuse and exploit these programs in the name of greed and selfishness. The FBI, alongside our local, state, and federal partners will continue to aggressively pursue those who commit this fraud especially as it pertains to the ever growing abuse of opioid prescriptions.”
“Today our nation is experiencing a deadly drug epidemic made possible by violent drug traffickers and prescription drug diversion,” said DEA Assistant Special Agent in Charge Brad L. Byerley. “The arrests made over the course of these operations, include doctors, nurses, and pharmacists, as well as street-level dealers. DEA is committed to stopping the abuse of prescription pills at every level. The announcement today should signal to those in the medical community and elsewhere that we will aggressively seek to prosecute anyone who violates our drug laws. These drug traffickers will be brought to justice thanks to the cooperative success of this investigation with our federal, state and local law enforcement partners.”
Louisiana Attorney General Jeff Landry stated, “Medicaid fraud is a devastating crime that steals from our taxpayers and jeopardizes care for our vulnerable who really need assistance. Following our joint investigation with HHS-OIG and the FBI, the U.S. Attorney’s Office was able to achieve an indictment against Mr. Gaines for his alleged illegal activity. I applaud my Medicaid Fraud Control Unit for working to uncover fraudsters and U.S. Attorney Brandon Fremin for joining us to bring criminals to justice.”
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Attorney General Sessions, Secretary Azar and Other Law Enforcement Officials to Announce National Health Care Fraud and Opioid TakedownRead the Press Release
WASHINGTON – Attorney General Jeff Sessions, Department of Health and Human Services (HHS) Secretary Alex M. Azar III and other law enforcement officials will hold a press conference THURSDAY, JUNE 28, 2018, at 10:30 a.m. EDT, to announce a nation-wide health care fraud and opioid enforcement action. Attorney General Sessions and Secretary Azar will leave the press conference before conclusion. Questions may be answered by other law enforcement officials on stage following remarks.
WHO: Attorney General Jeff Sessions, Justice Department
Secretary Alex M. Azar, HHS
Deputy Director David L. Bowdich, FBI
Assistant Administrator John Martin, Drug Enforcement Administration
Inspector General Daniel R. Levinson, HHS
Acting Assistant Attorney General John P. Cronan,
Justice Department’s Criminal Division
Deputy Chief Eric Hylton, IRS-Criminal Investigation
Director Alec Alexander, Centers for Medicare and Medicaid Services Center for Program Integrity
Director Dermot F. O’Reilly, Defense Criminal Investigative Service
WHAT: Announcement of significant law enforcement actionsWHEN: THURSDAY, JUNE 28, 2018 10:30 a.m. EDT
WHERE: Department of Justice
7th Floor Press Conference Room
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS
LIVESTREAMED ON JUSTICE.GOV/LIVE-STREAMNOTE: Please RSVP to [email protected] and Sarah Sutton at [email protected]. All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Media must enter the department at the visitor’s entrance on Constitution Avenue NW between 9th and 10th Streets. Media may begin arriving at 8:30 a.m. EDT and cameras must be pre-set by 9:15 a.m. EDT. Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007.
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
As Part of National Healthcare Fraud Sweep, Los Angeles-Based Prosecutors Filed 16 Cases Alleging $660 Million in Fraudulent BillsRead the Press Release
LOS ANGELES – In another massive law enforcement action targeting health care fraud, federal authorities here announced today criminal cases naming a total of 33 defendants – including doctors, pharmacists and an attorney – who have been charged in a wide-range of schemes that collectively attempted to bilk public and private insurance programs out of more than $660 million.
The defendants charged locally are among hundreds of people charged across the United States in cases that cumulatively allege approximately $2 billion in false billings. The nationwide sweep includes charges against 165 doctors, nurses and other licensed medical professionals who allegedly participated in health care fraud schemes
In the Central District of California, most of the defendants were charged for their roles in schemes to defraud health insurance programs such as Medicare. The cases allege health care fraud and kickback schemes involving surgeries, compounded drugs, home health services, Medicare Part D prescription drugs and hospice care.
“Health care fraud schemes cost Americans billions of dollars every year through higher premiums and tax money stolen from public programs, such as Medicare,” said First Assistant United States Attorney Tracy L. Wilkison. “There is an incredible array of scams, some of which involve services that are simply never provided, and some of which use complicated and sophisticated ruses to conceal illegal acts, such as bribes. Today’s announcement of the far-reaching law enforcement actions targeting a wide range of schemes and a large number of defendants demonstrates the excellent work by our law enforcement partners. Together, we will continue the hard work necessary to identify and hold accountable corrupt health care professionals and fraudsters seeking to line their pockets with your hard-earned money.”
"Health care fraud occurs quietly and behind the scenes on a regular basis in Southern California, which makes detecting it very challenging," said Paul Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "The charges we've brought in Los Angeles against physicians and pharmacists are particularly disturbing since these individuals are placed in a position of trust by victims simply trying to navigate a complicated insurance system. A great deal of investigative ability went into each one of these cases, and I'm proud that the work of our agents and law enforcement partners will ebb the flow of the destructive fraud that plagues Southern California.”
9 new defendants charged in Operation “Spinal Cap”
This week, prosecutors unsealed charges against nine new defendants being charged as part of Operation “Spinal Cap,” which targets a long-running health care fraud scheme that generated nearly $1 billion in fraudulent claims to federal government, California state, and private insurers. The scheme – which was spearheaded by Michael Drobot, the former owner of Pacific Hospital in Long Beach – involved more than $40 million in illegal kickbacks paid to doctors and other medical professionals in exchange for referring thousands of patients who received surgeries and other services at Pacific Hospital.
In the cases announced today in Operation Spinal Cap:
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Daniel Capen, 68, of Manhattan Beach, an orthopedic surgeon, has agreed to plead guilty to conspiracy and illegal kickback charges. Capen accounted for approximately $142 million of Pacific Hospital’s claims to insurers, on which the hospital was paid approximately $56 million.
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Timothy Hunt, 53, of Palos Verdes Estates, another orthopedic surgeon who referred spinal surgery patients to Capen and other doctors, has agreed to plead guilty to a conspiracy charge involving his receipt of illegal kickbacks stemming from various financial relationships with Pacific Hospital and related entities.
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George William Hammer, 65, of Palm Desert, the former chief financial officer of the physician management arm of Pacific Hospital, has agreed to plead guilty to tax charges based on the fraudulent classification of illegal kickbacks in hospital-related corporate tax filings.
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Lauren Papa, 52, of Tarzana, a chiropractor, has agreed to plead guilty to a conspiracy charge involving her receipt of illegal kickbacks to refer patients to a neurosurgeon with the understanding that the neurosurgeon would perform the surgeries at Pacific Hospital.
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Tiffany Rogers, 53, of Palos Verdes Estates, an orthopedic surgeon, was named in an indictment unsealed Wednesday in connection with receiving illegal kickbacks to refer patients for spinal surgeries at Pacific Hospital.
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Brian Carrico, 64, of Redondo Beach, a chiropractor – along with Performance Medical & Rehab Center, Inc., which was partially owned by Carrico; and One Accord Management, Inc., which Carrico wholly owned – were charged in connection with the receipt of illegal kickbacks to influence the referral of patients to Pacific Hospital. An indictment unsealed Wednesday alleges that these defendants and other co-conspirators were responsible for approximately $80 million in claims submitted to the federal workers’ compensation program and were paid approximately $56 million in connection with patients that Performance Medical referred to Pacific Hospital.
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William Parker, 64, of Redondo Beach, was charged in a separate indictment unsealed on Wednesday in connection with the same kickback scheme involving Carrico and his companies.
With the new cases being filed in Operation Spinal Cap, the fraudulent claims related to this scheme now span a 15-year period and cumulatively total more than $950 million.
The investigation into the spinal surgery kickback scheme is being conducted by the Federal Bureau of Investigation; IRS Criminal Investigation; the California Department of Insurance; and the United States Postal Service, Office of Inspector General.
“Public health insurance programs – whether a workers’ compensation program or Medicare – are not a personal pocketbook for criminals seeking to exploit government programs designed to help those who need these plans the most,” stated R. Damon Rowe, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office. “Taxpayers rightly expect individuals working in the healthcare industry that receive payments from taxpayer-funded programs to scrupulously follow the rules. IRS Criminal Investigation will continue to protect the integrity of public health insurance programs and ensure that doctors, pharmacists and medical service providers who profit from these illicit schemes are held accountable.”
The new cases were filed by Assistant United States Attorney Ashwin Janakiram of the Major Frauds Section, and will be prosecuted by AUSA Janakiram and Assistant United States Attorneys Joseph T. McNally and Scott D. Tenley of the Santa Ana Branch Office.
The nine new defendants charged in this investigation will be summoned to appear for arraignments in United States District Court in Santa Ana next month.
Investigation into compound prescription kickback scheme at TYY Consulting
An indictment unsealed on Wednesday outlines a wide-ranging conspiracy that was responsible for more than $250 million in fraudulent claims for prescriptions that were filled by compounding pharmacies in Nevada and Southern California. The indictment charges Irena Shut, 41, an attorney who resides in Hidden Hills, with paying kickbacks to two podiatrists to authorize prescriptions written on pre-printed prescription pads designed to maximize insurance payments, regardless of the medical need for an expensive compounded formulary for each “patient.”
The scheme was operated through TYY Consulting, a Las Vegas, Nevada-based outfit that used a nationwide network of marketers to refer prescriptions to TYY-affiliated pharmacies in exchange for kickbacks. As a result of the fraudulent claims, the victim health care plans paid out nearly $175 million. Shut, who worked as a marketer for TYY, received approximately $6.8 million in kickbacks, some of which was, in turn, given to the charged podiatrists.
The charged podiatrists, Domenic Signorelli, 51, of Irvine, and Robert Joseph, 51, of Huntington Beach, along with several other unnamed co-conspirator doctors, allegedly received kickbacks for “writing” the prescriptions. Once the prescriptions were filled, members of the conspiracy submitted fraudulent claims to federal, state and private insurers for the compounded drugs.
The victims of the scheme include the Department of Defense’s TRICARE program – which provides civilian health benefits for U.S Armed Forces military personnel, military retirees, and their dependents – as well as federal and state workers’ compensation programs.
In addition to paying kickbacks to the charged podiatrists and other medical professionals, TYY induced other doctors to participate in the scheme by offering prostitutes, fancy meals, and expensive event tickets, according to the indictment.
This case is being investigated by the FBI and the United State Postal Service, Office of Inspector General (USPS-OIG).
USPS-OIG Special Agent in Charge Brian Washington stated, “Today’s indictments should send a clear message to all health care providers that health care fraud is a federal crime that carries serious consequences and will not be tolerated. The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service.”
This case is being prosecuted by Assistant United States Attorney Ashwin Janakiram of the Major Frauds Section.
Shut, Signorelli and Joseph will be directed to appear for arraignments next month in federal court in Los Angeles.
Distribution of prescription opioids
Angela Gillespie-Shelton, 48, of Houston, was arrested Wednesday in her hometown after being indicted last week in Los Angeles on federal drug trafficking and money laundering charges. The six-count indictment alleges that Gillespie-Shelton was one of the leaders of a narcotics trafficking ring based in Los Angeles that sold illegal prescriptions for cash and obtained opioids and other drugs that were shipped from Los Angeles to Texas for sale on the black market.
Gillespie-Shelton allegedly laundered over $1 million of the black market cash proceeds through numerous accounts both to conceal the proceeds and to further the narcotics trafficking conspiracy, including by paying rent for the clinic where the illegal prescriptions were written. The indictment further alleges that Gillespie-Shelton paid more than $200,000 to one of the doctors who wrote the illegal prescriptions.
The doctor, Madhu Garg and numerous other co-conspirators have already been convicted in this matter.
The case against Gillespie-Shelton is being investigated by the Drug Enforcement Administration, IRS Criminal Investigation, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the California Department of Justice, and the Texas Department of Public Safety.
The prosecution of Gillespie-Shelton is being handled by Assistant United States Attorney Michael G. Freedman of the Organized Crime Drug Enforcement Task Force.
SoCal residents charged in compound drug scheme
A group of pharmacists, doctors and marketers worked together to defraud the TRICARE program by submitting more than $40 million in claims for medically unnecessary compounded medications prescriptions, according to an indictment unsealed Wednesday that also alleges AMPLAN, the Amtrak employee health benefit plan, was victimized.
Marketers that participated in the scheme solicited beneficiaries of the health plans through misleading cold calls that promised free compounded medications, as well as through “wellness” programs that included gym memberships, fitness tracking devices and supplements. The marketers used sensitive personal and insurance information gathered from the beneficiaries to generate fraudulent prescriptions for compounded medications.
The marketers paid doctors to authorize prescriptions by misleading the doctors into believing that the marketers operated legitimate telemedicine businesses or by paying the doctors to write the prescriptions.
The six defendants charged in this case are:
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Thu Van Le, aka Tony Le, 40, of Yorba Linda, a licensed pharmacist and owner of TC Medical Pharmacy (TCMP) in Pomona and a silent owner of Mars Hill Pharmacy (MHP) in North Carolina;
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Chau Nguyen, aka Cindy Le, 36, of Yorba Linda, a licensed pharmacist and co-operator of TCMP;
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Truong Giang Le, 31, of Pomona, a co-operator of MHP;
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Chan Van Le, aka Kevin Le, 39, of Chino, the manager of MHP;
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Nha Le Tuan Truong, 36, of Fountain Valley, a pharmacist who laundered fraudulently obtained proceeds through a charity; and
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Jeffery Lawrence, 55, of Los Angeles, the owner of Wellytics Inc., an entity through which he fraudulently solicited insurance information from beneficiaries of AMPLAN.
Through TCMP, the defendants submitted approximately $13 million in claims, and TRICARE paid reimbursements of more than $10 million, according to the indictment. Through MHP, the defendants submitted approximately $28 million in claims, and TRICARE paid more than $21 million. Nha Le Tuan Truong allegedly laundered more than $1 million in Tricare reimbursements through a charitable foundation.
Lawrence allegedly solicited Amtrak employees to participate in a wellness program that Lawrence claimed would be reimbursement by AMPLAN. Several employees gave Lawrence their AMPLAN beneficiary information, which he then used to procure compounded medications prescriptions submitted to TCMP in exchange for more than $600,000 in kickbacks.
“These cases reinforce our commitment and determination to pursue those who would defraud Amtrak’s health care programs and target such vulnerable populations,” said Amtrak Inspector General Tom Howard. “Our agents will continue to hold perpetrators accountable and to protect Amtrak, its employees and their dependents.”
This case is being investigated by the Defense Criminal Investigative Service, the FBI, IRS Criminal Investigation, Amtrak’s Office of Inspector General, the Office of Personnel Management’s Office of Inspector General, the Department of Labor’s Office of Inspector General, and the California Department of Insurance.
This case is being prosecuted by Assistant United States Attorneys Mark Aveis, Paul G. Stern and Cassie Palmer of the Major Frauds Section.
The six defendants charged in this case were arrested on Tuesday and each pleaded not guilty at their arraignments in United States District Court. A trial in this case was scheduled for August 21 in Santa Ana.
Medicare Fraud Strike Force Cases
Seven of the cases announced this week were filed by DOJ trial attorneys working in Los Angeles under the aegis of the Medicare Fraud Strike Force in conjunction with the United States Attorney’s Office. Strike Force operations are part of a joint initiative between the Department of Justice and the U.S. Department of Health & Human Services to prevent and deter fraud and enforce current anti-fraud laws around the country.
“We will not tolerate criminals stealing precious dollars from our federal health care programs,” said Christian J. Schrank, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG). “Today’s announcement shows our commitment to working with our state and federal law enforcement partners to swiftly investigate these fraud schemes and bring criminals to justice.”
Strike Force prosecutors unsealed seven criminal cases this week.
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Seven people were named in an indictment that alleges multiple health care fraud conspiracies in which the owner of two pharmacies submitted claims to Medicare and Medi-Cal for expensive, brand-name prescription drugs that were never dispensed to patients. Rather, the drugs were provided to co-conspirators to sell to third parties, thereby generating a profit from each prescription drug twice – first from the reimbursement from Medicare or Medi-Cal, and second from the sale of the prescription drugs diverted to the black market.
The defendants named in the indictment are:
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Irina Sadovsky, 48, of Woodland Hills, the owner and pharmacist-in-charge of Five Star and Ultimate pharmacies;
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Yigal Keren, 36, of Los Angeles, who owns and operates transitional housing centers;
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Mikhail Khanukhov, 38, of Sherman Oaks, the manager at Five Star and Ultimate pharmacies;
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Shahriar “Michael” Kalantari, 51, of Los Angeles, who was a marketer;
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Andrei Sotnikov, 47, of Northridge, a marketer;
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Nida Rosales, 62, of Bellflower, a marketer; and
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Juan Carlos Enriquez, 31, of Van Nuys, a pharmacy technician and marketer
The indictment alleges that Sadovsky paid kickbacks to marketers in exchange for patient referrals from facilities that treated Medicare and/or Medi-Cal patients. Sadovsky also paid kickbacks directly to Medicare beneficiaries in exchange for filling their prescriptions at Five Star Pharmacy.
Five Star and Ultimate Pharmacies were collectively paid more than $54 million by Medicare and Medi-Cal between January 2014 and September 2017.
This matter is being investigated by the FBI and HHS-OIG, and the case is being prosecuted by DOJ Trial Attorney Alexis Gregorian.
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Armen Pogossian, 69, of Pasadena, the owner of L.A. Nova Pharmacy, was indicted for his role in the submission of $2.9 million in claims to Medicare Part D sponsors for prescription drugs that were never dispensed to Medicare beneficiaries; indeed, they were never even ordered from a wholesaler. The five-count indictment alleges that Pogossian attempted to conceal the fraudulent claims from auditors through the use of fake invoices that purported to show the drugs had been obtained from wholesalers and thus were in the pharmacy’s inventory. This case is being investigated by the FBI and HHS-OIG and is being prosecuted by DOJ Trial Attorney Alexis Gregorian.
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Tamar Tatarian, 37, of Pasadena, the owner of Akhtamar Pharmacy, was named in a three-count indictment that alleges she participated in a scheme that submitted $1.3 million in claims to Medicare Part D sponsors for prescription drugs that were never ordered from wholesalers, and thus never dispensed to Medicare beneficiaries, which Tatarian attempted to conceal from auditors through the use of fake invoices. This case is being investigated by the FBI and HHS-OIG and is being prosecuted by DOJ Trial Attorney Alexis Gregorian.
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Ruben Filian, 33, of Glendale, a physician’s assistant, was indicted for allegedly participating in a $58 million scheme to certify patients to home health care in exchange for illegal kickbacks. Filian is charged with one count of conspiracy to commit health care fraud, four counts of health care fraud, one count of conspiracy to pay and receive kickbacks, five counts of paying and receiving kickbacks, and three counts of money laundering. This case is being investigated by the FBI and HHS-OIG and is being prosecuted by DOJ Trial Attorney Emily Culbertson.
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Dr. Stephen Levine, 74, of North Hollywood, a referring physician to home health agencies, was named in a criminal information for his role in the $58 million fraud scheme that also involved Filian. Levine allegedly certified numerous beneficiaries for home health services, without regard to whether the beneficiaries were homebound or whether the services were medically necessary. Levine was paid cash kickbacks for his referrals. Using Levine’s referrals as support, owners and operators at multiple home health agencies billed Medicare for home health services, and Medicare suffered losses of at least $6.5 million. This case is being investigated by the FBI and HHS-OIG and is being prosecuted by DOJ Trial Attorney Emily Culbertson.
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Sarkis Manukyan, 76, of Panorama City, and Eduard Terosipyan, 67, of Montebello, both of whom are managers of medical clinics in Los Angeles and Burbank, were indicted in a $1.9 million Medicare fraud involving kickbacks and outpatient physician services not rendered or not medically necessary. This matter is being investigated by the FBI, the California Department of Justice and the Los Angeles Sheriff’s Department. This case is being prosecuted by DOJ Trial Attorney Niall O’Donnell.
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Lucille Lam, 54, of Burbank, co-owner and managing employee of Bliss Hospice, was charged in a criminal information for allegedly participating in a scheme to pay kickbacks in exchange for Medicare beneficiaries referred to Bliss for hospice services. As part of the scheme, Lam and the co-owners of the hospice falsely categorized the illegal kickbacks as payroll expenses. Based on the referrals that Lam and her co-conspirators obtained through illegal kickbacks, Bliss submitted claims to Medicare and was paid approximately $2.4 million. This matter is being investigated by the FBI, HHS-OIG, and the California Department of Justice. This case is being prosecuted by DOJ Trial Attorney Claire Yan.
Indictments and criminal informations contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Armed Felon Sentenced on Drug and Gun ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Willie James Tunstall, 36, of Spanish Fort, Alabama, was sentenced this morning to 100 months’ imprisonment on gun and drug charges. Court documents show that Tunstall was involved in the distribution of crack cocaine and cocaine powder, and that he was also a convicted felon who was caught with a gun by law enforcement officers on one occasion. Investigators also conducted some controlled purchases of drugs from Tunstall, and when they attempted to arrest him on those charges, he led officers on a high speed chase down Highway 98 and into the Daphmont community in Daphne. Tunstall abandoned his vehicle and attempted to hide in an adjacent wooded area, but officers located him and some cocaine and crack cocaine he attempted to conceal in the underbrush. The investigation reflected that Tunstall was involved in the distribution of cocaine, crack cocaine, marijuana, Xanax, Lortab, codeine syrup and methamphetamine ice. Tunstall pled guilty to possession with intent to distribute crack cocaine and felon in possession of a firearm in January of 2018.
United States District Court Judge William Steele sentenced Tunstall to 100 months’ imprisonment on each count, with the sentences to run concurrently, noting that Tunstall had significant criminal history. Tunstall was also ordered to undergo drug and alcohol treatment and counseling while serving his sentence. The judge also ordered that Tunstall serve a six-year term of supervised release when he is discharged from his custody sentence, during which he will undergo further drug and alcohol abuse treatment. Williams was also ordered to pay $200 in mandatory special assessments, but no fine was imposed.
The case was investigated by the Daphne Police Department, the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the FBI Safe Streets Task Force. It was prosecuted in the United States Attorney’s Office by Assistant United Sates Attorney Gloria Bedwell.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Alabama at http://www.justice.gov/usao/als/
Arkansas Man Sentenced to over 9 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Issac Johnson, age 25, of Royal, Arkansas was sentenced today to 110 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, In February of 2016, law enforcement officers arranged and conducted a controlled delivery of methamphetamine between an undercover officer and Johnson in the Western District of Arkansas. After the controlled delivery, Johnson was arrested and taken into custody. During the search of his person, officers located a .380 caliber pistol. The substance delivered was sent to the Arkansas State Crime lab where it tested positive for methamphetamine, with an actual weight of 178 grams.
Johnson was indicted in October 2016 and pleaded guilty in November 2017.
This case was investigated by the Arkansas State Police and the Hot Springs Police Department. Assistant United States Attorney David Harris prosecuted this case for the United States.
Akron man indicted on firearms and methamphetamine chargesRead the Press Release
An Akron man was indicted on federal drug and firearms charges.
A federal grand jury returned a three-count indictment charging Anthony D. Gelfo, 32, with possession with intent to distribute a controlled substance, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
The indictment alleges that on or about March 8, 2017, Gelfo did knowingly and intentionally possess with intent to distribute and to distribute at least five grams of a mixture and substance containing a detectable amount of methamphetamine.
The indictment further alleges that on or about March 8, 2017, Gelfo knowingly possessed a Walther pistol, model P22, .22 caliber, serial number obliterated, in furtherance of a drug trafficking crime.
The indictment further alleges that on or about March 8, 2017, Gelfo, having been previously convicted of rape in 2004 in the Medina County Court of Common Pleas, did knowingly possess in and affect interstate and foreign commerce, a firearm, specifically, a Walther pistol.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wednesday 27 June 2018
Worcester Man Sentenced to More Than 11 Years in Federal Prison for Sex TraffickingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MOHAMED H. ABDI, also known as “Vic,” 26, of Worcester, Massachusetts, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 135 months of imprisonment, followed by five years of supervised release, for sex trafficking.
According to court documents and statements made in court, between late December 2016 and January 5, 2017, ABDI and his girlfriend used threats, force and coercion to cause a female victim to engage in prostitution. ABDI and his girlfriend advertised the victim’s prostitution services on Backpage.com and other websites, rented Connecticut hotel rooms where the victim engaged in prostitution, and transported the victim to engage in sexual acts with customers at the hotels and private residences in Connecticut and elsewhere. In addition, ABDI provided the victim with heroin, but withheld the drug from the victim until after she provided sexual services to additional customers. ABDI and his girlfriend also warned the victim not to contact police and made threats against the victim and her child.
ABDI has been detained since his arrest on related state charges on January 5, 2017. On April 4, 2018, he pleaded guilty to one count of conspiracy to commit sex trafficking by force, fraud or coercion.
As a condition of his supervised release, ABDI will be required to register as a sex offender.
This matter was investigated by the Connecticut Human Trafficking Task Force, Federal Bureau of Investigation and Connecticut State Police, with the assistance of the Wethersfield Police Department and the Worcester Police Department. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
U.S. Attorney Durham thanked the State’s Attorney for the Judicial District of Tolland and the Worcester County District Attorney’s Office for their cooperation and assistance in the prosecution of this matter.
Worcester Man Pleads Guilty to Gun ChargeRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday in federal court in Boston to being a felon in possession of a firearm.
Franklin Safo-Agyare, 25, pleaded guilty to being a felon in possession of a firearm and ammunition. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Sept. 26, 2018.
Following a two-year investigation, Safo-Agyare and eight others were charged in January 2018 in connection with illegal activity within and near the Mildred C. Hailey Apartments in Jamaica Plain, formerly known as the Bromley Heath Housing Development. On June 6, 2018, Safo-Agyare, who was previously convicted of a crime punishable by more than one year in prison, sold a Jennings Model J22 .22 caliber pistol containing five rounds of ammunition to another individual in the vicinity of the housing development.
The investigation and arrests sought to reduce violence and improve the quality of life in and around the Mildred C. Hailey Apartments for residents by removing individuals who engaged in criminal activity. Safo-Agyare is the fifth defendant to plead guilty in this case.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Verbena Man Sentenced to Life in Prison for Federal Drug Trafficking and Firearms CrimesRead the Press Release
Montgomery, Ala. – - James Calvin Talley, Jr., 37, of Verbena, Alabama, was sentenced to life in prison for possession with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute marijuana, using a phone to facilitate a drug crime, and being a felon in possession of a firearm, announced U.S. Attorney Louis Franklin. Talley’s conviction for distribution of methamphetamine carried a mandatory life sentence because he had two prior felony drug convictions. There is no parole in the federal system.
Evidence presented at trial showed that on December 3, 2016, a drug courier delivered more than 100 pounds of marijuana to Talley’s home in Verbena. When the courier arrived at Talley's home, he got out of the car and Talley drove the car alone to another house in Marbury, Alabama. There, Talley backed the car up to the front door of the house and opened the trunk. Law enforcement, who had knowledge of the drug delivery, followed Talley from his home to the house in Marbury. Talley ran into the house when law enforcement arrived but was arrested as he was running out of the backdoor. Inside the house, which belonged to co-defendant Richie Dale Murphy, law enforcement officers found two pistols, more than 3 pounds of methamphetamine, over $20,000 in cash, marijuana, and drug paraphernalia used for packaging and selling narcotics.
Following the search at Murphy's house, law enforcement searched Talley's home and found two more pistols, along with more than $50,000 in cash, a currency counter, drug ledgers and receipts for wire transfers of large amounts of money.
Murphy, who previously pled guilty to possession with intent to distribute marijuana, possession with intent to distribute methamphetamine, and possessing a firearm in furtherance of a drug trafficking crime, testified at trial that he and Talley were in business together, and that Talley used Murphy's home as his stash house for marijuana and methamphetamine. Murphy is facing at least 15 years in prison for his charges. A date for his sentencing has not yet been set.
The case was investigated by the Drug Enforcement Administration (DEA), the Autauga County Sheriff’s Office, and the Chilton County Sheriff’s Office. The Alabama Attorney General’s Office, Millbrook Police Department, Montgomery Police Department, and Prattville Police Department all assisted with this case. Assistant U.S. Attorneys John Geer and Kevin Davidson prosecuted the case.
VA Fraudster Pleads Guilty After Falsely Claiming Combat Service in Order to Get VA BenefitsRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Keith R. Hudson, 70, from Charleston, South Carolina, pled guilty in federal court before United States District Court Judge Richard M. Gergel. He had been indicted for defrauding the VA by receiving $197,237 in benefits after falsely claiming to be a military veteran of combat in Vietnam. This is a violation of Title 18, United States Code, § 1347(a)(1). He faces a potential ten year sentence.
Court documents presented during the hearing established that in 2015, Mr. Hudson applied to the VA in Charleston for benefits. He used a falsified form from the Department of Defense, called a DD-214, (“Report of Separation from Active Duty”) which is a Department of Defense form given to members of the military who are separating from service. In the form, he said that was a veteran of the war in Vietnam. He represented that he was in the Navy and saw combat as a medic, suffering wounds and other trauma. He claimed that he served from August 1, 1967 through October 31, 1971 and said that he received two Purple Hearts.
The investigation conducted by the Veterans Affairs Office of Inspector General (OIG) showed that this DD-214 was forged and false. For instance, Mr. Hudson’s rank was listed as HN and E-4 (in the United States Navy, HN is actually the equivalent of E-3). In the awards section, it stated that he received a Combat Medic Badge. However, this is an award which is only given for service in the United States Army. It also did not list the proper citation for a Purple Heart. And the form stated Mr. Hudson received the Fleet Marine Force Medal with Marine Device. There is no such medal. It also had a stamp from the Alaska State Defense Force, which is suspicious as that group is not an official military organization, being comprised of volunteers. Additionally, the service branches do not permit their records to be combined with or loaned to other entities, including National Guard units. And, the typeset of the Social Security number on the DD-214 was different from the rest of the document.
In fact, Mr. Hudson never was in the military. The investigation conclusively showed that there were no records in the National Personnel Records Center in St Louis, Missouri for him from any branch of service.
Additionally, employment records for him from 1967 through 1971 established that he worked at a variety of jobs in New York and in Maine. In two of them, he applied for employment and was fingerprinted. These fingerprints were still on file and matched his prints. As such, he was in the United States during the years 1967 through 1971. Therefore, Mr. Hudson was never in the United States Navy nor did he ever see combat in Vietnam.
The investigation also showed that he had previously been prosecuted for the same scheme using the same DD-214 form in 2005 in Connecticut, where he had been placed in a pretrial diversionary program.
United States Attorney Lydon said that these cases are very important for our country and for our community. “This is a particularly awful type of white collar crime. Veteran health benefits are for those who served our nation in the military. The VA has limited numbers of physicians and resources. There is not much to spare. Every dollar and every minute of time stolen from the VA is something that is stolen from a veteran. VA fraud is on the increase and so we are grateful for the work of the Veterans Affairs Office of Inspector General for their investigative work on the case.”
Statistics bear out what the United States Attorney said. Between April of 2017 and October of 2017 alone, the VA Office of Investigations made 80 arrests, and recovered $2.9 million in restitution, fines and penalties relating to things like VA health-care benefits fraud. This is more than twice the amount recovered in the same period a decade ago.
The Resident Agent in Charge for the IG in Asheville is G. Scott Bailey, who said “we aggressively investigate cases where individuals defraud the VA and take benefits meant for our nation’s veterans.” He noted that the VA Office of Inspector General has a hotline, staffed weekdays between 8:30 a.m. .and 2 p.m. Eastern time, at 1-800-488-8244. He said “If anyone has any knowledge of fraud going on at the VA, please call. We’ll investigate.”
Assistant United States Attorney Sean Kittrell of the Charleston office prosecuted the case.
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U.S. Attorney’s Office Reaches Out to Local Youth Under Project EJECTRead the Press Release
Jackson, Miss - The United States Attorney’s Office for the Southern District of Mississippi is kicking off the prevention piece of Project EJECT with various speaking engagements, interactions and engaging dialogue with our local youth, beginning with the Boys and Girls Club of Jackson at 4350 Raymond Road, on Thursday, June 28, 2018 at 11:15 a.m.
The U.S. Attorney’s Office will continue its prevention work under Project EJECT, speaking to the local youth in Jackson, on the following dates and locations:
• July 23, 2018, Boys and Girls Club of Jackson, 1450 W. Capitol Street
• July 26, 2018, Boys and Girls Club of Jackson, 470 Sykes Road
As a part of its prevention efforts under Project EJECT, the U.S. Attorney’s Office is continuing the school outreach program started by former U.S. Attorney Greg Davis entitled the L.E.A.D. Program ("Legal Enrichment and Decision Making"). The L.E.A.D. program is an effort to educate and inform students about the value of an education, the relationship between education and their future, as well as the long term consequences of gun violence and criminal activity. Under Project EJECT, the L.E.A.D. Program will provide students with a roadmap to success through setting goals, staying focused, avoiding negative influences, giving back to the community, and bouncing back after disappointment.
"Prosecuting crime alone is not enough. We must do everything we can to prevent crime before it happens. And one way to prevent crime is to reach out to our young people and let them know we care about them, that there is hope and there are much better alternatives to crime. I want to thank former U.S. Attorney Greg Davis for developing the L.E.A.D. program and for his work with the youth. I think it is only fitting that we begin our prevention work where former U.S. Attorney Dunn Lampton poured a lot of his time and resources into – the Boys and Girls Club of Jackson. The foundations set by these men and many others have laid the groundwork for being able to make our communities and citizens in Jackson and throughout the state safer and more secure," said U.S. Attorney Hurst.
The U.S. Attorney’s Office expects to reach over 400 students in the metro area during the Summer of 2018. The L.E.A.D. program will continue into the school year as well.
Project EJECT is an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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.
U.S. Attorney’s Holds Seminar Focusing on Medication Assisted Treatment and the Americans with Disabilities ActRead the Press Release
United States Attorney Duane A. Evans announced today that the U.S. Attorney’s Office for the Eastern District of Louisiana organized and hosted a seminar for local sheriffs and drug-court judges on the availability of medication-assisted treatment (MAT) as means to combat the crisis of opioid addiction in local prison populations and the larger community. “It is well beyond reasonable dispute that opioid proliferation and addiction are at crisis levels both locally and nationwide,” U.S. Attorney Evans stated. He continued: “Combating this crisis with all available resources is a top DOJ priority.”
Representatives of six parishes in the Eastern District of Louisiana attended the June 27th seminar, which opened with a keynote address from Dr. John Morrison, Medical Director for the Louisiana Department of Public Safety and Corrections. AUSA David Howard Sinkman, the U.S. Attorney’s civil-rights coordinator, next provided an overview of the interaction between the Americans with Disabilities Act (ADA) and the use of MAT in correctional facilities, specialty courts, and other public entities. A panel discussion on the practical aspects of MAT use in prison populations featured testimonials from national experts Dr. Josiah Rich, a professor from Brown University, Dr. Jonathan Giftos, the Clinical Director of Substance Use Treatment at the Rikers Island Correctional Facility in New York, and officials from the Philadelphia Department of Prisons.
A panel of state officials next addressed the use of MAT locally. Featured state officials included: Dr. Janice Petersen from the Louisiana Department of Health and Hospitals, Gary Young and Tracy Falgout from the Louisiana State Penitentiary at Angola, and Kerry Lentini, the Director of the Louisiana Drug Court Program. A final address from Ms. Tara Kunkel, Senior Drug Policy Advisor from the Department of Justice, Bureau of Justice Assistance, highlighted potential grant and funding opportunities available to local providers to institute MAT programs in their respective facilities and courts. An open question-and-answer session concluded the event.
U.S. Attorney Evans commented on the interest in the seminar:
A collaborative, multi-faceted approach is necessary to attack opioid addiction from both supply and demand angles. We set an ambitious agenda to cover medical, legal, practical, and financial aspects of MAT in prisons, but found receptive local partners ready to implement new ideas and strategies.
The United States Attorney’s Office anticipates holding future meetings and possibly implementing a working group to further pursue this initiative. Assistant United States Attorneys David Howard Sinkman and Sharon Smith organized the event.
U.S. Attorney Jessie K. Liu to Host Youth Summit on June 29 at Friendship Collegiate Academy in Northeast WashingtonRead the Press Release
WASHINGTON - U.S. Attorney Jessie K. Liu, the U.S. Attorney’s Office for the District of Columbia, and numerous local and federal law enforcement agencies and community-based organizations are teaming up to host the Eighth Annual “Breaking the Silence on Youth Violence Youth Summit” on Friday, June 29, 2018, at Friendship Collegiate Academy.
The focuses this year will be gun violence, sexual assault, and bullying prevention. The event will feature dynamic speakers, entertainment, and invaluable information and resources.
For the past seven years, the U.S. Attorney’s Office has joined its many partners to host the Youth Summit. The Youth Summits have kicked off with plenary sessions that highlighted subjects such as the causes and consequences of youth violence, challenged youth participants to make better decisions, and emphasized the importance of cooperating with law enforcement. The plenary sessions have been followed by breakout sessions that have focused on public safety issues facing our youth, such as teen domestic violence, heroin and opiate abuse, and human trafficking. The summits have concluded with an educational entertainment segment, which reinforced the positive messages of the Youth Summit.
Additionally, the summits have included a youth informational fair in which numerous non-profits have provided information on youth development programs, mentoring programs, and educational youth activities. More than 500 youths participated in the event last year, and thousands have participated in the activities since the first event in 2011.
The eighth annual “Breaking the Silence on Youth Violence Summit” will be held from 9 a.m. to 3 p.m., east of the Anacostia River, at Friendship Collegiate Public Charter Senior High School, 4095 Minnesota Avenue NE. The location is directly across the street from the Minnesota Avenue Metro station.
The Summit is a part of the Department of Justice’s Project Safe Neighborhood Program, a nationwide effort to reduce violent crime.
The many collaborative partners include East of the River Family Collaborative, Collaborative Solutions for Communities, Men Can Stop Rape, the District of Columbia Department of Parks and Recreation, Hillcrest Children and Family Services, Howard University Hospital, the District of Columbia Office of Neighborhood Safety and Engagement, the Metropolitan Police Department, the Mayor Marion S. Barry Summer Youth Employment Program, the Court Services and Offender Supervision Agency, Go-Go Fitness and a Foundation for a Drug-Free World. People with questions may contact Executive Assistant U.S. Attorney for External Affairs, Wendy Pohlhaus at (202)-252-6930 or [email protected].
Two Aliens Indicted on Illegal Reentry ChargesRead the Press Release
WILMINGTON – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Wilmington has returned indictments charging RICARDO NOEL AYALA-AMAYA, age 32, of Honduras, and JOSE ANTONIO DANIA-MALDONADO, age 35, of the Dominican Republic, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, AYALA-AMAYA, found in Wake County and previously deported three times, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
DANIA-MALDONADO is alleged to have been deported from the United States subsequent to an aggravated felony conviction (conspiracy to sell and deliver a schedule II controlled substance). If convicted, DANIA-MALDONADO, found in Wake County, would face maximum penalties of 20 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations.
Twenty-five people indicted for their roles in conspiracy to traffic drugs in Elyria, including fentanyl, carfentanil, heroin, cocaine, crack cocaine and fentanyl analogues pressed to look like PercocetRead the Press Release
Twenty-five people were indicted in federal court for their roles in a conspiracy to traffic drugs in Elyria and the surrounding area, including fentanyl, carfentanil, heroin, cocaine, crack cocaine and fentanyl analogues pressed to look like pills of Percocet.
Everyone indicted is from Elyria unless otherwise noted. They are: Troy Davis, 37; Reginald Jenkins, 40; Stephen Phares, 25; Deondre Vaughn, 35, of Cleveland; Jarell Davis, 29, of Cuyahoga Falls; Leon Lamont Washington, 42; Raymond Trenell Oliver, 43; Anthony Rodgers, 35, of Cleveland; Elonzo Davis, 44; Quadron Johnson, 31; William Solomon, 43; Malik Hobson, 38; Johnnie Lawrence, 38; Richard Fluker, 59; Troy Martin, 37, of Cleveland; Myron L. Pryor, 47, of Cleveland; Alvin Fennell, 48,; Terrance Williams, 25,; Aaron White, 22,; Alkeem Fennell, 25; Cassandra Studebaker, 25,; Courtney Warrens, 25; Tommie Richardson, 27; Arthur Solomon, 45, and Mickey Tramaine Wright, 25.
According to the 59-count indictment unsealed in U.S. District Court in Cleveland:
Troy Davis traveled to South Carolina to buy from Jenkins pills that were laced with furanyl fentanyl and pressed to look like 30 mg Percocet pills. Davis brought the pills to Ohio, where he sold them to Phares and others.
Troy Davis sold cocaine, crack cocaine, heroin, fentanyl and various fentanyl analogues to other drug dealers and customers in the Elyria area. Troy and Elonzo Davis, who are uncle and nephew, were supplied by Vaughn, Jarell Davis, Washington, Oliver and Rogers. The Davis’ then resold the drugs to Lawrence, White, Pryor, Hobson and others.
The Davis’ and others used homes in Elyria to store and sell the drugs. They also used numerous vehicles, including rental cars, as well as multiple pre-paid cellular telephones, to facilitate the shipment and sale of drugs.
“These defendants brought lots of deadly drugs into Elyria, including carfentanil and fentanyl,” U.S. Attorney Justin Herdman said. “Law enforcement worked together to dismantle this organization and the lives of countless Elyria residents will be better because of those efforts.”
“Today’s indictment and arrests shut off a pipeline of dangerous drugs that have killed so many of our friends and neighbors and caused pain and destruction in our community,” said DEA Special Agent in Charge Timothy Plancon. “This case is the result of a long joint investigation between DEA, Elyria police, the Lorain County HIDTA and many others. DEA will continue to work to reduce the supply of illegal narcotics hitting our streets.”
Elyria Police Chief Duane Whitely said: “The events today are the culmination of nine months of work aimed at attacking the drug trade in Elyria and surrounding areas. This investigation was initiated by the Elyria Police Narcotics Unit who partnered with the DEA Cleveland’s Office and the Lorain HIDTA. We are grateful for the excellent working relationship between all the Lorain County law enforcement agencies. We will continue working together to attack the illegal drug trade throughout Lorain County.”
“Through the cooperation of local, state and federal law enforcement agencies working together to share their resources, intelligence and manpower we can aggressively investigate drug trafficking organizations,” said Lorain County Sheriff Phil Stammitti. “These organizations from the street level dealer to the main source suppliers are drastically having a devastating effect on our communities. In conjunction with the newly formed Lorain County HIDTA, we are proud of all the units that work together to aggressively investigate and pursue these drug trafficking organizations.”
Ohio High Intensity Drug Trafficking Area Program Executive Director Derek Siegle said: “This case is an example of HIDTA’s ability to help coordinate investigations that span several city, county and state boundaries. We are building off our successes in other parts of Ohio to help make Lorain County and the entire region safer.”
Lorain Police Capt. Roger Watkins said: “We have always been appreciative of the level of cooperation between the local, State, and Federal law enforcement agencies in this area in combating the drug issues that plague our communities.”
“Opioids are killing people every single day in Ohio, and I firmly believe that those trafficking drugs into our communities have no regard for human life,” said Attorney General DeWine. “This case is yet another example of our commitment to stopping drug traffickers who are fueling the opioid epidemic, and I applaud the state, local, and federal authorities who aggressively worked on this case.”
This case was investigated by the DEA’s Cleveland office, Elyria Police Department, the Lorain County HIDTA -- which is comprised of the Sheriff’s Lorain County Drug Task Force, DEA, Ohio Adult Patrol Authority, Ohio State Highway Patrol, Avon Lake Police Department, Avon Police Department, Amherst Police Department, Oberlin Police Department and Vermilion Police Department -- Lorain Police Department, Lorain Prosecutor’s Office, the Ohio Bureau of Criminal Investigation and U.S. Marshal Service. It is being prosecuted by Assistant U.S. Attorneys Marisa T. Darden and Vasile C. Katsaros.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Twenty Members of Reno Drug Trafficking and Firearms Organization Indicted for Conspiracy to Distribute Large Amounts of Methamphetamine, Cocaine, and Heroin and Firearms OffensesRead the Press Release
RENO, Nev. – A federal grand jury returned four-related indictments today charging 20 alleged members of a Reno drug trafficking and firearms organization for their roles in a large-scale drug distribution ring that operated in the Reno area. Seventeen defendants are charged with conspiracy to possess and distribute methamphetamine, cocaine, and heroin, and three defendants are charged with firearms-related offenses.
United States Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas office made the announcement.
The 17 defendants charged for their alleged roles in the drug conspiracy are Jose Valentin Mora, aka Cholo and Magic, 36; Sandy Diaz Tavares, 33; Jose Vega, aka Panda, 33; Angel Diaz, 21; Javier Chavez, 58; Shawn Curl, 35; Marcos Hernandez, aka Bigotes, 58; Roberto Mora-Mora, 52; Juana Baca, aka Sneaky, 44; Elizabeth Reyes-Delacerda, aka Chavela, 26; Richard Rossall, aka Monopoly, 52; Ciara Hernandez, 18; Marco Antonio Ramirez, aka Anthony, 35; Kelsea Barbara Riley, 26; Leon DeJesus Munera, 27; and Jorge Ayala-Chavez, 43, all of Reno, Nevada; and Francisco Meza Recio, 31, of Simi Valley, California. Each defendant faces the maximum statutory penalty of life in prison and a fine of $10,000,000.
According to allegations contained in the 14-count drug conspiracy indictment and criminal complaint, from January 25, 2018 to June 14, 2018, the defendants conspired with each other to possess and distribute large amounts of methamphetamine, cocaine, and heroin in Reno and elsewhere. On several occasions, Jose Valentin Mora, the alleged leader, sold the drugs to his co-conspirators who would then resell the drugs in Reno. To date, more than 18 pounds of methamphetamine has been seized from this drug conspiracy. This amount has an approximate street value of over $300,000.
The three-related indictments charge Jose Valentin Mora, Jose Vega, Jose Mora-Silva, Dagoberto Mora-Silva, and Alberto Acosta-Macias with firearms offenses. Felons Jose Mora and Jose Vega are charged with unlawful possession of a firearm after having a prior felony conviction in Nevada. Jose Mora-Silva is charged with unlawful possession of a firearm while being an alien unlawfully in the United States. Dagoberto Mora-Silva is charged with aiding and abetting the possession of a firearm by prohibited persons Jose Mora and Jose Mora-Silva. Jose Mora and Acosta-Macias are charged with possession of a stolen .22 caliber Marlin rifle. Each defendant faces the maximum statutory penalty of 10 years in prison and a fine of $250,000.
“As alleged, these defendants trafficked large amounts of methamphetamine, cocaine, and heroin in Reno,” said U.S. Attorney Dayle Elieson. “Today’s indictments are the latest example of our steadfast commitment to fighting drug trafficking and reducing violent crime in Nevada’s communities. Together with our law enforcement partners we are committed to protecting Nevadans and making our communities safe.”
“Law enforcement partnerships made this operation a success,” said Special Agent in Charge Aaron C. Rouse. “Drug trafficking organizations bring gun violence to our neighborhoods and take advantage of the addiction problem our community and our nation faces. Working together with our partners enabled us to identify key elements of the organization and effectively shut it down. I am very proud of the hard work of the Northern Nevada Safe Street’s Task Force. As a result of this large scale operation, a well-organized drug trafficking operation has effectively been dismantled, and the community of Reno is safer.”
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
These charges stem from an investigation by the FBI’s Safe Streets Task Force with significant assistance by federal, state, and local law enforcement partners including the Reno Police Department, Sparks Police Department, and the Washoe County Sheriff’s Office. Assistant U.S. Attorney James E. Keller is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop, locally-based strategies to reduce violent crime. For more information about PSN, visit www.justice.gov/usao-nv.
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Twenty Defendants Indicted for Heroin, Methamphetamine and Cocaine TraffickingRead the Press Release
Assistant U. S. Attorney A. Dale Blankenship (619) 546-6705
NEWS RELEASE SUMMARY – June 27, 2018
SAN DIEGO – Two federal indictments unsealed in San Diego today charge 20 defendants with heroin, methamphetamine, cocaine, and marijuana trafficking.
In a two-day sweep, members of the Homeland Security Investigations Gangs & Weapons Group, plus other law enforcement agencies around the county made numerous arrests and searched two locations in Spring Valley and Lemon Grove.
The yearlong investigation involved months of federal wiretaps, numerous undercover drug and gun buys and extensive surveillance. Many of the defendants are associates of criminal street gangs such as Skyline Piru, Florencia 13, Ysidro, Shelltown, Logan Heights Red Steps, Vario and Chula Vista. The investigation revealed that some of these defendants have ties to Mexican Mafia and Mexican Drug Cartels.
As of today at noon, sixteen of the twenty defendants are either in federal or state custody. Authorities are continuing to search for two defendants. Six of the defendants were arraigned before U.S. Magistrate Clinton Averitte yesterday.
“Drugs are destroying lives and families and bringing violence to our communities, and we are more committed than ever to prosecuting these cases,” said U.S. Attorney Adam Braverman. “Gangs are most often the distributors of these deadly poisons, and we have a special resolve to go after them.”
HSI Special Agent in Charge David Shaw said, “Homeland Security Investigations remains committed in keeping our communities safe from drug trafficking and associated dangerous criminal activity,” said David Shaw, Special Agent in Charge for HSI in San Diego. “The arrests over the last two days demonstrate the unwavering dedication between HSI and our law enforcement partners, to address these dangerous threats facing our community.”
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The United States is represented in court by Assistant U.S. Attorney A. Dale Blankenship.
DEFENDANT Criminal Case No: 18CR2278-CAB
Name
Age
Hometown
JOSE VARGAS-MEZA (1)
25
San Diego
JESSE RAMIREZ (2),
aka “Junior,”
27
Chula Vista
MARTIN VILLAFANA (3),
Aka “Gato,”
25
San Diego
SERGIO GARCIA (4),
aka “Checko,”
27
San Diego
JAMAAR RASHAAD CODRINGTON (5),
aka “Buzz,”
38
San Diego
CHRISTIAN RAMIREZ (6)
28
Chula Vista
JENNIFER LIEGH ZAYAS (7)
37
El Cajon
24
San Diego
PRENTICE TAULAUO TEO (9)
46
San Diego
RICKY RICARDO SIMMONS (10),
aka “Daz,”
38
Spring Valley
JERMAINE SAYLES (11)
38
San Diego
LARON WALLACE (12),
aka “Skinny,”
38
San Diego
ALEXANDER AGENCIA SANTOS (13),
aka “Lex,
35
San Diego
LAMONT CHARLES YOUNG (14)
20
San Diego
TARA LYNN JONES (15)
34
San Diego
RICO WELCH (16)
46
San Diego
SUMMARY OF CHARGES
Conspiracy to Distribute Cocaine (Title 21, U.S.C., Secs. 841(a)(1), 846);
Conspiracy to Distribute Methamphetamine (Title 21, U.S.C., Secs. 841(a)(1), 846);
Conspiracy to Distribute Marijuana (Title 21, U.S.C., Secs. 841(a)(1), 846);
Possession of Methamphetamine with Intent to Distribute (Title 21, U.S.C, Secs. 841(a)(1)).
Maximum Penalties: Maximum Penalties: For cocaine and methamphetamine charges: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine; for marijuana charge:40 years in prison, with a mandatory minimum sentence of 5 years and a $5 million fine.
DEFENDANTS Criminal Case No: 18CR2970-CAB
Name
Age
Hometown
VICTOR CARRASCO (1),
aka “Mico,”
54
San Diego
24
San Diego
MARIO ZUNIGA-BARRAGAN (3),
49
San Diego
CESAR AGUILAR RODRIGUEZ (4),
26
San Diego
SUMMARY OF CHARGES
Conspiracy to Distribute Methamphetamine (Title 21, U.S.C., Secs. 841(a)(1) and 846);
Conspiracy to Distribute Methamphetamine (Title 21, U.S.C., Secs. 841(a)(1) and 846);
Possession of Methamphetamine with Intent to Distribute (Title 21, U.S.C. Secs. 841(a)(1));
Possession of Heroin with Intent to Distribute (Title 21, U.S.C. Secs. 841(a)(1))..
Maximum Penalties: For cocaine and methamphetamine charges: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine; for heroin charge:
20 years in prison and a $1 million fine.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
AGENCIES
Homeland Security Investigations – Gang and Weapons Group
San Diego Police Department
San Diego County Sheriff’s Department
Chula Vista Police Department
San Diego County Probation Department
San Diego District Attorney’s Office
California Department of Corrections and Rehabilitation
San Diego Fugitive Task Force
United States Bureau of Prisons – Joint Intelligence Sharing Initiative
ICE Enforcement and Removal Operations
United States Border Patrol K-9
Customs and Border Protection Air and Marine Operations
Federal Bureau of Investigation