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2 July 2018
Carbondale Man Charged with Making a False Threat to Blow up a U.S. Military Recruiting CenterRead the Press Release
On July 2, 2018, George Rita II, 42, of Carbondale, Illinois, appeared in United States District Court on a Complaint charging him with falsely making a threat to blow up a Carbondale, Illinois Military Recruiting Center, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Rita was arrested and charged on June 29, 2018, for posting a threatening anonymous message to a Federal Bureau of Investigation (FBI) tip line located in Clarksburg, West Virginia. The message claimed that the sender planned to go to a recruitment center and blow it up and that no one could stop him. No location was given for the threatened recruitment center.
Agents of the FBI were able to determine that the threat received in West Virginia originated in Southern Illinois and ultimately tracked the internet connection that was the source of the threat back to Rita’s Carbondale apartment. Agents also determined that the threat was against a U.S. Military Recruiting Center in Carbondale, close to Rita’s apartment.
The complaint charges Rita with Maliciously Conveying False Information Regarding a Bomb Threat in violation to Title 18, United States Code, Section 844(e). This violation carries possible penalties of up to 10 years imprisonment and a fine of up to $250,000. Rita was ordered detained in federal custody by a United States Magistrate Judge pending further court proceedings.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the FBI, with assistance from the Carbondale, Illinois Police Department and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Border Patrol Agent Arrested for Distribution of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Keith E. Hook, age 54, of Oswego, New York, appeared in federal court today on a charge that he distributed child pornography over the internet, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the federal criminal complaint, Hook, a United States Border Patrol Agent, used the Kik Messenger application to distribute child pornography to other Kik users from April 30, 2018 through May 4, 2018. As alleged in the complaint, an initial forensic review of his personally owned iPod revealed that it contained approximately 34 image files and 2 video files depicting child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Hook appeared today before United States Magistrate Judge Andrew T. Baxter, who ordered him detained pending a hearing scheduled for July 6, 2018.
If convicted, Hook faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, if convicted, Hook would be required to register as a sex offender.
This case is being investigated by HSI Syracuse with assistance from the U.S. Department of Homeland Security, Office of Inspector General (DHS/OIG); U.S. Customs and Border Protection, Office of Professional Responsibility; the New York State Police Computer Crimes Unit; and the New York State Police (Fulton station). The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Bolivian Man Pleads Guilty to Obtaining U.S. Citizenship by FraudRead the Press Release
ALEXANDRIA, Va. – A Bolivian national pleaded guilty today to obtaining his naturalized citizenship through fraud by failing to disclose his arrest and other criminal conduct committed prior to becoming a United States citizen.
According to court documents, Pablo Marin Llanos Martinez, 36, appeared for a naturalization ceremony in November 2008 at the federal courthouse in Alexandria. As part of his application process, Llanos Martinez was required to disclose to the government any criminal conduct or arrests. Llanos Martinez falsely responded that he had no such criminal activity. He then took an Oath of Allegiance to become a United States citizen.
According to the statement of facts filed with the plea agreement, nearly two months prior to the ceremony, in September 2008, Llanos Martinez committed destruction of property and grand larceny offenses in Arlington. In late September 2008, Llanos Martinez had also been arrested in Arlington for a separate incident involving attempted grand larceny, grand larceny, and possession of burglary tools. He was later convicted in July 2009 of these felony offenses. Had Llanos Martinez admitted the truth concerning his criminal conduct and arrest, he would not have been allowed to become a United States citizen just two months later.
Llanos Martinez pleaded guilty to unlawful procurement of naturalization and faces a maximum penalty of 10 years in prison as well as automatic revocation of his U.S. citizenship when sentenced on September 21. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict. Special Assistant U.S. Attorney Raizza Ty and Assistant U.S. Attorney Ronald L. Walutes, Jr. are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-216.
Blood Gang Member Sentenced to More Than 17 Years After Conviction for Felon in Possession ChargesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today, Senior United States District Judge W. Earl Britt sentenced BAKARI MAURICE TEACHEY aka “Double R”, 27 a Rocky Mount resident, to 210 months imprisonment followed by 3 years of supervised release. On February 9, 2018, TEACHEY was convicted in a three-day jury trial of 3-counts of Possession of a Firearm and/or Ammunition by a Convicted Felon.
The evidence at trial showed that TEACHEY pistol-whipped a man on May 9, 2017, and the victim received medical treatment. Two days later, TEACHEY was found in possession of a stolen Ruger 9mm pistol during a traffic stop by the Rocky Mount Police Department. On August 4, 2017, Rocky Mount Police Officers executed a search warrant on the home that TEACHEY shared with his fiancée after a reported shooting on South Vyne Street in Rocky Mount. The officers located numerous firearms and ammunition including a Smith and Wesson M&P AR 15 rifle, a Century Arms 7.62x39 AK 47 rifle, a Glock 9mm pistol with an extended magazine, a .357 Taurus revolver, and assorted ammunition including ammunition for the caliber of firearms recovered and other ammunition. The officers also located drug paraphernalia, marijuana, and counterfeit U.S. currency.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Rocky Mount Police Department, the Cumberland County Sheriff’s Office, the North Carolina State Crime Laboratory, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette represented the government in this case.
Beckley Woman Sentenced to Federal Prison for Her Role in Drug Trafficking ConspiracyRead the Press Release
Defendant is latest to be sentenced out of nearly two dozen defendants after long-term narcotics investigation
BECKLEY, W.Va. – A Beckley woman was sentenced to federal prison on drug charges, announced United States Attorney Mike Stuart. Detria Carter, 33, of Beckley, previously entered a guilty plea to possession with intent to distribute more than 500 grams of cocaine. Carter was sentenced to 151 months, or 12 years and 7 months, in federal prison. U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies, led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service also provided assistance throughout the investigation.
“Instead of learning a lesson from her brother who was locked up on unrelated drug charges, Detria Carter decides to maintain his drug business,” said United States Mike Stuart. “Now she’ll be spending almost 13 years in federal prison.”
Carter previously admitted that between October 2016 and June 28, 2017, she took part in a drug trafficking conspiracy with multiple participants. During this time period, she was assisting her brother in maintaining a drug trafficking organization while he was incarcerated on unrelated drug charges. The drug trafficking organization was responsible for distributing cocaine, crack cocaine, and heroin in and around Raleigh County. During the course of the conspiracy, Carter admitted to having other participants in the conspiracy cook cocaine into cocaine base or “crack” at her house and to distributing the controlled substances in and around Southern West Virginia.
Additionally, Carter admitted that on May 25, 2017, she was stopped by an officer with the Beckley Police Department. At this time, Carter possessed 996 grams of cocaine, approximately 454 grams of cocaine base, or “crack,” and a quantity of fentanyl. Carter admitted that it was her intent, and the intent of the drug trafficking organization, to distribute these controlled substances in Raleigh County. Police officers also found two firearms within the same bag the controlled substances were found.
Several individuals implicated as a result of this investigation have entered guilty pleas to drug charges and are awaiting sentencing. Six defendants have been sentenced for their involvement in the drug conspiracy. Cheyenne Fragale and Macon Fragale, brothers from Boomer in Fayette County, have been sentenced by United States District Judge Irene C. Berger. Cheyenne Fragale received a sentence of 12 years in federal prison while Macon Fragale will serve 16 years and 8 months. Judge Berger also sentenced Rory White of Montgomery to 125 months in federal prison. Tiffany Ramsey, also from Boomer, was sentenced to 46 months in federal prison by Judge Berger. Dominic Copney of Beckley, has been sentenced to two years in federal prison by Senior United States District Judge David A. Faber. Donald Scalise, of Montgomery, was sentenced to three years in federal prison for conspiring to distribute oxycodone. He was also sentenced by United States District Judge Irene C. Berger. Others still awaiting sentencing include Velarian Carter, of Beckley, who faces a mandatory minimum of not less than 20 years and up to life in federal prison when he is sentenced on July 10, 2018. Detria Carter, of Beckley, faces a mandatory minimum sentence of not less than five and up to 40 years in federal prison when she is sentenced on July 2, 2018. Shawn Akiem Anderson, of Mt. Hope, faces up to 10 years in federal prison when he is sentenced on July 11, 2018.
Karl Funderburk, of Teays Valley, who previously pled guilty to a gun charge, faces at least 5 years and up to life in federal prison for using and carrying a firearm during a drug trafficking crime when he is sentenced on July 10, 2018.
Shaun Jones has entered a guilty plea to possession with intent to distribute more than 100 grams of heroin. Jonathan Moore has entered a guilty plea to possession with intent to distribute more than 500 grams of cocaine. Each faces at least five years and up to 40 years in federal prison when they are sentenced on July 11, 2018.
Corey Larkin previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and more than 100 grams of heroin. He also faces at least five years and up to 40 years in federal prison when he is sentenced on July 11, 2018.
Esau Burnette, of Beckley, has entered a plea to conspiracy to manufacture, distribute, and possess with intent to distribute more than 28 grams of cocaine base and a quantity of cocaine. He faces at least five years and up to 40 years in federal prison when he is sentenced on July 10, 2018. James Rodney Staples, of Woodbridge, Virginia, faces at least 10 years in federal prison and up to life when he is sentenced on July 10, 2018 after entering a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin.
George E. Brockman, II, of Montgomery, entered a plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of cocaine, and a quantity of oxycodone. Charles Hill, aka “Unc,” of Beckley, entered a guilty plea to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, and a quantity of cocaine. They both face at least five years and up to 40 years in federal prison when they are sentenced on July 11, 2018.
Jonathan O. Brockman of Kimberly, Fayette County, previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of fentanyl, a quantity of oxycodone, and a quantity of marijuana for remuneration. David Shaun Coleman of Fayette County entered his plea to conspiracy to distribute more than 100 grams of heroin and a quantity of oxycodone. Rashaun Carter, aka “Show,” of Raleigh County, pled guilty to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, more than 100 grams of heroin, and a quantity of cocaine, and a quantity of fentanyl. Each of these defendants face at least five years and up to 40 years in federal prison when they are sentenced on July 24, 2018.
Derrick L. Staples, of Charleston, entered a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin and faces a minimum of 10 years and up to life in federal prison when he is sentenced on July 24, 2018. Shaun L. Givens, of Beckley, entered his guilty plea to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and faces at least five years and up to 40 years in federal prison when he is sentenced on July 25, 2018.
Assistant United States Attorney Timothy D. Boggess handled the prosecutions. Senior United States District Judge David A. Faber imposed the sentence.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###Bailey Boys Associate Member Pleads Guilty to MurderRead 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 Raymel Weeden, 25, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to discharge of a firearm causing death. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life, and a $250,000 fine.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that on February 9, 2012, the defendant, a Bailey Boys Gang associate, along with Bailey Boys Gang member Rayshod Washington, attempted to rob Fred Rozier of drugs and money. During the course of the attempted robbery, when Fred Rozier resisted the robbery attempt, Weeden shot and killed Rozier.
The Bailey Boys Gang is a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street.
Rayshod Washington was previously convicted.
Today’s plea is the result of an ongoing investigation on the part of the U.S. Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Buffalo Police Department, under direction of Police Commissioner Byron Lockwood; the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Special Agent-in-Charge Gary Loeffert; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for October 10, 2018 at 9:00 a.m. before Judge Skretny.
Attorney General Jeff Sessions Announces Uttam Dhillon as New Acting Administrator of Drug Enforcement AdministrationRead the Press Release
Today, Attorney General Jeff Sessions announced the appointment of Uttam Dhillon as Acting Administrator of the Drug Enforcement Administration. Dhillon will replace Robert Patterson, who has retired after 30 years of service.
"With one American dying of a drug overdose every nine minutes, there can be no doubt that we are facing the deadliest drug epidemic in our history," Attorney General Sessions said. "The work of the Drug Enforcement Administration is critical to fighting this crisis, and President Trump and I are committed to continuing to give it the strong leadership it deserves. That is why I am pleased to appoint Uttam Dhillon as Acting Administrator. Uttam is a dedicated public servant who has served with distinction in the White House, the Department of Justice, the Department of Homeland Security, Congress, and as a career federal prosecutor taking on drug traffickers at the highest levels. I would also like to thank my good friend Robert Patterson for his exemplary service throughout his 30 years with the Drug Enforcement Administration, most recently as Acting Administrator."
Dhillon began serving in the role of Acting Administrator today.
Dhillon has had a long career battling drug traffickers and violent crime. In 2006, Dhillon was confirmed by the Senate as the first Director of the Office of Counternarcotics Enforcement at the Department of Homeland Security. In that role, Dhillon served as the primary policy advisor on counternarcotics issues, focused on combating the connections between illegal drug trafficking and terrorism and developed regional counternarcotics strategies for DHS.
Prior to DHS, Dhillon served as an Associate Deputy Attorney General in the Department of Justice, where he chaired the Attorney General’s Anti-Gang Coordination Committee, and led efforts to formulate and implement Department of Justice policies and programs to combat violent crime and criminal gangs. Earlier in his career, Dhillon worked as an Assistant United States Attorney in the Central District of California for 6 ½ years. During that period, Dhillon was appointed to the Department of Justice’s Organized Crime Drug Enforcement Task Force, and worked with federal and local law enforcement agencies to direct complex investigations of violent gangs and major narcotics trafficking organizations.
More recently, Dhillon has served as Deputy Counsel and Deputy Assistant to the President. Dhillon also has significant experience in the Legislative Branch, holding several senior roles including Chief Oversight Counsel for the House Financial Services Committee, Chief Counsel and Deputy Staff Director for the House Select Committee on Homeland Security, and Senior Investigative Counsel for the House Committee on Oversight and Government Reform. Both prior to and subsequent to his public service, Dhillon worked for several large law firms.
Dhillon received his law degree from Boalt Hall School of Law at the University of California, Berkeley, an M.A. from the University of California, San Diego, and a B.A. from California State University, Sacramento.Arizona Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
Jackson, Miss. – Marco Antonio Munguia, Jr., 43, of Arizona, pled guilty today before U.S. District Judge Carlton W. Reeves to possession with the intent to distribute 50 grams or more of actual methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
On May 25, 2017, Meridian Police Department conducted a traffic stop of a vehicle. Munguia was the registered owner of the vehicle and seated in the passenger seat. The officer noticed that the passenger airbag comportment had been modified. A consensual search of the vehicle resulted in the seizure of approximately 1.5 pounds of heroin and 1.25 pounds of methamphetamine from the hidden compartment. Munguia’s fingerprints were confirmed on that package containing the methamphetamine and heroin.
Munguia will be sentenced by Judge Reeves on September 24, 2018, at 1:30 p.m. and faces a maximum penalty of life in prison followed by a $10 million fine.
The case was a joint investigation by the Meridian Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Chris Wansley.
Arizona Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Todd Sinclair, 50, of Cape Creek, AZ, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to being an unlawful user of a controlled substance in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case stated that between November 1, 2015, and January 8, 2016, the defendant was unlawfully using heroin. During that time, Sinclair possessed a Glock handgun.
The plea is the result of an investigation by the Department of Justice Office of the Inspector General, under the direction of Special Agent-in-Charge Guido Modano, New York Field Office.
Sentencing is scheduled for October 12, 2018, at 11:00 a.m.
Allentown Man Pleads Guilty to Heroin Distribution ChargeRead the Press Release
JOHNSTOWN, Pa. – A Lehigh County resident pleaded guilty in federal court in Johnstown to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Clayton D. Dudley, 31 of Allentown, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 30, 2017, Dudley distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Oct. 31, 2018, at 1:00 p.m. The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Dudley.
Acoma Pueblo Man Sentenced to 15 Years for Federal Voluntary Manslaughter and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Darius L. James, 41, an enrolled member and resident of Acoma Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 15 years in prison for his conviction on voluntary manslaughter and firearms charges. James will be on supervised release for three years after completing his prison sentence.
James was arrested on Aug. 24, 2017, on a criminal complaint charging him with killing an Acoma Pueblo man by shooting him on the Acoma Pueblo Indian Reservation in Cibola County, N.M. According to the complaint, James found the victim hidden in a bedroom closet in his [James’] residence. As the victim fled the scene, James followed him into a nearby field and fired several shots, hitting the victim three times and killing him. At the time, James was prohibited from possessing firearms or ammunition because he was a convicted felon.
On Jan. 11, 2018, James pled guilty to a felony information charging him with voluntary manslaughter and brandishing a firearm during a crime of violence. In entering the guilty plea, James admitted that on July 24, 2017, he shot the victim with a rifle. James acknowledged that he was prohibited from possessing firearms because he was a convicted felon, and agreed to forfeit his firearms and ammunition.
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA Office of Justice Services and the Acoma Pueblo Tribal Police Department. Assistant U.S. Attorney Nicholas J. Marshall prosecuted the case.
30 June 2018
High school assistant track coach faces federal child sexual exploitation and pornography chargesRead the Press Release
Defendant is alleged to have had hundreds of videos and other images on his cell phone
PRESS RELEASE
Indianapolis-Josh J. Minkler, the United States Attorney for the Southern District of Indiana, announced today that an Attica Indiana High School assistant boys and girls track coach was arrested on child exploitation charges. Jeremy Kelley, 39, from the town of Attica, was arrested yesterday and faces charges of sexual exploitation of a child, receipt of child pornography and possession of child pornography.
“Protecting and advocating for our most vulnerable has always been a top priority of my office,” said Minkler. “Those who take advantage of this district’s children can expect the full hammer of federal prosecution.”
In January 2018, law enforcement officials from the Montgomery County Sheriff’s Office received a tip from the National Center for Missing and Exploited Children. The follow-up investigation lead officials to a social media account owned by Kelley. Montgomery County deputies obtained search warrants for Kelley’s accounts and found over 16,000 images, most of which contained child pornography and over 500 video files.
On June 29, 2018, federal and local law enforcement served a search warrant at Kelley’s residence and found 451 videos and 27,000 images, most of which contained child pornography on his telephone.
Kelley was arrested and remains in the custody of the U.S. Marshal’s Service. He will have an initial hearing in Indianapolis on Monday, July 2, 2018.
The public is encouraged to call law enforcement officials if they have any reason to believe Kelley may have had inappropriate contact with their children or other youth in the community. The toll-free number is 800-CALLFBI (225-5324) or www.fbi.gov/tips
This case was investigated by the FBI, Indianapolis Metropolitan Police Department and the Montgomery County Sheriff’s Office.
According to Assistant United States Attorney Tiffany J. Preston, Kelley could face decades in prison if convicted.
A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proved otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who exploit children through the use of social media and to work closely with Project Safe Childhood. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1 and 4.2
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29 June 2018
York Gang Member Sentenced to 30 Years in PrisonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that U.S. District Court Judge Yvette Kane sentenced Anthony Sistrunk, a/k/a “Kanye,” age 30, a member of a gang that has operated for a decade or more in the City of York, to 30 years’ imprisonment for racketeering and drug distribution conspiracies.
According to United States Attorney David J. Freed, Sistrunk was identified as a member of the “Southside” street gang and the “Bloods.” The United States presented evidence at the sentencing hearing on Sistrunk’s involvement in the violent gang activity that was the subject of the two-month long trial. Judge Kane was reminded that in November 2012, Sistrunk and his fellow gang members were involved in the assault and killing of a patron at a local restaurant.
In addition, Sistrunk was involved in the July 8, 2007, murder of Michael Concepcion in the City of York. While evidence of this murder was not presented at Sistrunk’s federal racketeering trial, the United States introduced evidence of this event at his sentencing. The evidence presented showed that on that Sunday morning Sistrunk and a fellow gang member drove through back alleys of a rival’s neighborhood. Sistrunk’s companion shot an assault rifle at rivals, killing one and injuring a four-year old girl who was sitting in her home. Juan Henriquez, who was the shooter, is currently serving a 20-40 year sentence in state prison for third degree murder.
Judge Kane noted that the violence associated with the gang was some of the worst the city had ever scene. Even with the prospect of a life sentence pending before him in this federal case, Sistrunk continued with his associations and activities. While facing sentencing, prison guards searched Sistrunk’s cell and found him in possession of a cellular telephone that had been smuggled into the prison. They also found marijuana under his bed. Judge Kane noted that while Sistrunk fully deserved a life sentence, she was concerned about sentencing disparity with other defendants. The judge found that 30 years in prison was enough time in prison to reform Sistrunk and protect the public.
In November 2015, a jury convicted Sistrunk of racketeering conspiracy, drug trafficking conspiracy, and drug trafficking after a seven-week trial. It included over 100 witnesses called by the government, including York City Police officers and detectives, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI and gang members who had previously pleaded guilty and featured the presentation of over 500 exhibits. Among the exhibits were videos of violent incidents involving the Southside Gang, drugs, cash and property seized by police and ATF agents as part of the investigation.
The jury also convicted the other 11 men who went to trial with Atkinson.
Overall, the jury found seven of the 12 men on trial guilty of racketeering conspiracy and conspiracy to distribute drugs, mainly cocaine base (crack) and cocaine, but including heroin in some instances. Two others were found not guilty of the racketeering charge but were found guilty of the drug distribution conspiracy count of the indictment. Three of the defendants were found not guilty of either of the conspiracy counts. The jury found all 12 defendants guilty of possession of illegal drugs with the intent to distribute. Two defendants were also charged and found guilty of, possession of firearms in furtherance of drug trafficking.
The principal defendants, specifically the most violent and those in leading roles, were found guilty of the racketeering conspiracy charges. The individual defendants and the charges on which they were sentenced:
Rolando Cruz, Jr., “Mico,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 3, 2017, to life in prison.
Marc Hernandez, a/k/a “Marky D,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 25, 2017, to life in prison.
Douglas Kelly, a/k/a “Killer,” age 39, racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on December 12, 2017, to life in prison.
Maurice Atkinson, a/k/a “Mo,” age 30; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on February 12, 2018, to life in prison.
Roscoe Villega, a/k/a “P Shawn,” age 44; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 25 years in prison.
Eugene Rice, a/k/a “B Mor,” age 29; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 200 months in jail on December 7, 2017,
Angel Schueg, a/k/a “Pocko,” age 28; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 165 months in jail on December 21, 2017,
Richard Nolden, age 28; racketeering conspiracy was sentenced to 25 years in prison on December 21, 2017,
Jalik Frederick, a/k/a “Murder Cat,” age 22; drug possession with intent to deliver was sentenced to 33 months in prison on June 5, 2017,
Brandon Orr, a/k/a “B Or,” age 23; drug possession with intent to deliver was sentenced to 34 months in prison on November 10, 2016,
Jabree Williams, a/k/a “Minute,” age 24; drug possession with intent to deliver was sentenced to 60 months in prison on May 15, 2017.
The individual defendants and the charges on which they are awaiting sentencing:
Tyree Eatmon, a/k/a “Ree,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Anthony Sistrunk, a/k/a “Kanye,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Southside gang members who pleaded guilty to racketeering conspiracy prior to the trial are and who are awaiting sentencing are:
James Abney, a/k/a “Doocs,” age 31.
Malik Sturdivant, a/k/a “Base,” age 25.
Jahkeem Abney, a/k/a “Foo,” age 27.
Ronald Payton, a/k/a “Ron Ron,” age 25.
Cordaress Rogers, a/k/a “Tank,” age 31.
Marquis Williams, a/k/a “Quis,” age 29.
Jerrod Brown, a/k/a “Boogie,” age 28.
Quintez Hall, a/k/a “Q,” age 25.
The case included the participation and assistance of the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, the Federal Bureau of Investigation, and the U.S. Marshals Service. Assistant U.S. Attorneys Michael A. Consiglio, William Houser, and Joseph Terz prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Wisconsin Man Indicted in 30 Million Dollar Fraud SchemeRead the Press Release
United States Attorney Matthew D. Krueger announced that on June 26, 2018, a federal grand jury in Milwaukee returned an indictment charging Albert Golant, aka Alex Golant, (age: 37) of Wales, Wisconsin with twelve counts of wire fraud and bank fraud. Golant is charged with seven counts of wire fraud, in violation of Title 18, United States Code, Section 1341 and five counts of bank fraud in violation of Title 18, United States Code, Section 1344. Each of the wire fraud charges contained in the indictment carries a maximum penalty of up to twenty years in prison and a fine of up to $250,000, or both. Each of the bank fraud charges contained in the indictment carries a maximum penalty of thirty years in prison and a fine of up to $1 million, or both.
The indictment alleges that Golant has been involved in the business of purchasing luxury vehicles in the United States using straw buyers and shipping them overseas to individual foreign buyers both directly and through vehicle brokers. Golant, and others, knowingly devised and participated in a scheme to defraud. The indictment alleges that it was part of the scheme that Golant obtained funds from third parties, including vehicle brokers, investors, and lenders, by representing that the funds would be used to purchase specific luxury vehicles. Instead, Golant diverted tens of millions of dollars to his own personal use. Golant used the funds to gamble at casinos, to pay off gambling debts, to provide funds to professional gamblers to gamble on his behalf, to pay off prior loans, and to satisfy obligations to other clients.
It was further part of the scheme that Golant fraudulently sold luxury vehicles, which he knew had previously been sold and exported to China, to dealerships in Wisconsin and Illinois. After the vehicle was fraudulently sold to the dealership, Golant represented that he had a customer who would buy the vehicle back from the dealership using financing. Golant submitted false and fraudulent financing applications on behalf of his customers to obtain the financing for the vehicles.
Through his scheme, Golant fraudulently obtained at least $30 million from at least 40 different victims. This matter was investigated by the Internal Revenue Service-Criminal Investigations and the Federal Bureau of Investigation and has been assigned to Assistant United States Attorney Laura S. Kwaterski for prosecution.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Wine Lover Developed a Taste for Embezzlement - Sentenced to 63 Months on Fraud and Money Laundering ConvictionsRead the Press Release
St. Louis, MO – Jason Arnold was sentenced to 63 months imprisonment and five years supervised release for his bank fraud and money laundering convictions related to a scheme to defraud a financial institution and the company he worked for as a controller out of more than $7.6 million. He was also ordered to pay restitution in excess of $6.4 million.
According to court documents, Arnold created a company that had the same name as his employer. He then opened a sham bank account for that company. Between October 2009 and November 2017, Arnold fraudulently deposited into the sham bank account more than 50 checks totaling more than $7.6 million. Arnold then used the proceeds from his scheme to defraud for his personal gain, including to purchase artwork and nearly one million dollars’ worth of rare wine.
Arnold appeared before U.S. District Judge Catherine D. Perry, who noted that “greed” appeared to be the sole motivator for Arnold’s malfeasance.
In addition to the criminal prosecution, extensive forfeiture activities have been undertaken to facilitate the payment of restitution. More than $2.8 million dollars in property including financial accounts has been forfeited by the government. The victim company recovered more than $1.2 million directly from Arnold in the form of wine, watches, coins and firearms.
“This sentence combines incarceration, forfeiture and post-prison supervision. It is a comprehensive response to this significant economic crime,” said U.S. Attorney Jeff Jensen.
This case was investigated by the United States Secret Service. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Wife of Big Island Capital Fraudster Sentenced to 24 Months in Prison for Her Role in Million Dollar Ponzi SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ALEX REAVES LUNDIN, 26, to 24 months in prison for her role in a $1.1 million Ponzi scheme orchestrated by her husband, Jeremy Lundin. LUNDIN, who pleaded guilty on February 15, 2018, was sentenced yesterday before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minnesota. When announcing the sentence, the Honorable Judge Wright told LUNDIN, “You assisted your husband in a lengthy and complex fraud scheme at the expense of others. Your victims worked hard for their money; for some it was their life savings. You spent victims’ money on yourself, motivated by selfishness and greed to live a lavish lifestyle that you could not afford.”
U.S. Attorney Erica MacDonald said, “Jeremy Lundin swindled hundreds of thousands of dollars from his friends and associates so that he and Alex Lundin could buy luxury cars and take expensive trips. When Alex Lundin found out about her husband’s fraud, rather than taking steps to stop him or make things right, she helped him keep it going for several more months. The Lundins lied to and stole from honest, hard-working individuals who trusted them. Today’s sentence was another step towards justice for those victims.”
“Alex Lundin used investor money for her personal, financial gain. The Lundin’s spent their client’s investment money to enjoy an extravagant and luxurious lifestyle,” stated Special Agent in Charge Gabe Grchan. “Today’s sentencing illustrates that there are consequences for those who use deceit to enrich themselves at the expense of others. IRS Criminal Investigators will continue to pursue individuals who engage in this type of criminal behavior.”
“Today’s sentencing of Ms. Lundin serves as a reminder of the potential penalty for violating the public’s trust in the U.S. mail”, said Craig Goldberg, Postal Inspector in Charge of the Denver Division which covers the Twin Cities.
“Alex Lundin and her husband defrauded friends and neighbors who trusted them with their life savings,” said Minnesota Commerce Commissioner Jessica Looman. “Investment fraud is a serious crime and this case shows that if you commit fraud in Minnesota, you will be prosecuted.”
According to the defendant’s guilty plea and documents filed in court, from approximately December 2014 through May 2017, Jeremy Lundin claimed that he conducted “options trading” through his business Big Island Capital. He worked through a network of the couple’s associates and friends to solicit investors by promising to generate exponential growth through options trading, and obtained $1.1 million from 51 investors over a roughly two-year period. Between May 2015 and May 2017, at least $992,000 in investor funds was deposited into Jeremy Lundin’s “Big Island Capital” bank account. During roughly the same time period, however, Jeremy Lundin transferred $933,950 from the business account directly into his and LUNDIN’s personal checking account. The couple then used the majority of those investor funds on their personal expenses including travel, luxury automobiles, a boat, jewelry, retail purchases, and more than $366,000 in credit card payments.
According to LUNDIN’s guilty plea and documents filed in court, LUNDIN admitted that by October 2016, she became aware that her husband was not conducting options trading as he promised investors, and that she and Jeremy Lundin had spent all of the investor funds on personal expenses. However, LUNDIN continued to assist her husband in carrying out the scheme for another eight months by soliciting new investors and drafting text messages and emails intended to lull current victim-investors into believing their money was safe. During those final eight months when LUNDIN knowingly participated in the scheme, investors gave Jeremy Lundin another $315,000.
Jeremy Lundin pleaded guilty to one count of mail fraud and one count of money laundering. On February 22, 2018, he was sentenced to 110 months in prison.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Federal Bureau of Investigation, United States Postal Inspection Service, and Minnesota Department of Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan prosecuted the case.
Defendant Information:
ALEX REAVES LUNDIN, 26
Mound, Minn.
Convicted:
- Conspiracy to commit mail fraud, 1 count
Sentenced:
- 24 months in prison
- 3 years of supervised release
- $315,000 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney Statement Regarding Conclusion of Investigation into Incident Involving Former Asheville Police OfficerRead the Press Release
The U.S. Attorney’s Office for the Western District of North Carolina announced today that federal charges will not be filed against former Asheville Police Department Officer Christopher Hickman, following an investigation into the August 25, 2017, arrest incident involving Officer Hickman and Mr. Johnnie Rush.
In making today’s announcement, U.S. Attorney Andrew Murray stated, “The U.S. Attorney’s Office for the Western District of North Carolina, the Justice Department’s Civil Rights Division, and the Federal Bureau of Investigation conducted a thorough and independent review of all evidence related to this case. After careful examination, the U.S. Attorney’s Office has determined that the evidence does not give rise to a prosecutable violation of the federal criminal civil rights laws.”
The U.S. Attorney’s Office takes allegations of civil rights violations involving law enforcement officers very seriously and we ensure such allegations are investigated fully and completely.
Two Stockton Men Indicted on Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned two indictments this week charging Stockton residents Somnang Chea, 34, with being a felon in possession of ammunition and Phirum Phin, 30, with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Stockton Police officers arrested Chea and Phin after they ran following an attempted a traffic stop. Court documents allege that Chea possessed a fully automatic handgun with a laser sight and a high-capacity magazine with 22 rounds of ammunition, and that Phin possessed a stolen Glock handgun with a laser sight and high-capacity magazine.
Chea and Phin have previously been convicted of felonies and are prohibited from possessing firearms or ammunition.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stockton Police Department, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
If convicted, Chea and Phin each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants arepresumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Two Lawyers Sentenced in Federal Court for Wire Fraud Scheme Against Johnson ControlsRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced today that Scott Hess, a 54-year old resident of Menominee Falls, Wisconsin, and Craig Hilborn, a 55-year old resident of Birmingham, Michigan, were sentenced by the Honorable J.P. Stadtmueller for their participation in a wire fraud scheme.
Until late 2015, Hess was an in-house attorney at Johnson Controls, Inc., in Milwaukee, Wisconsin. Hilborn ran his own law firm in Michigan. Together, Hess and Hilborn devised and executed a scheme to defraud Johnson Controls: Hess created fraudulent invoices for legal work purportedly completed by Hilborn’s law firm. Hess then approved those invoices on behalf of his employer, causing Johnson Controls to pay Hilborn’s law firm the invoiced amounts. In reality, Hilborn’s law firm did not perform any meaningful legal work for Johnson Controls. Hess and Hilborn carried out the scheme from 2000 through 2015, in the process stealing approximately $4.5 million from Johnson Controls.
In March and April of 2018, Hess and Hilborn both pleaded guilty to two counts of wire fraud, in violation of Title 18 United States Code § 1343. On June 15, 2018, the Honorable J.P. Stadtmueller sentenced Hess to 32 months in prison, three years supervised release and a $90,000 fine. On June 28, 2018, the Honorable J.P. Stadtmueller sentenced Hilborn to 21 months in prison, two year’s supervised release and a $60,000 fine. Both Hess and Hilborn were ordered to pay full restitution to Johnson Controls.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rebecca Taibleson.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Two Broward County Residents Sentenced to Prison for Selling Fentanyl, Heroin and CocaineRead the Press Release
The ringleader of a fentanyl, heroin and cocaine distribution center was sentenced to 24 years in prison. His co-defendant was sentenced to more than 4 years in prison, for helping to distribute the controlled substances.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Rick Maglione, Chief, Fort Lauderdale Police Department and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
On April 18, 2018, Lenden Pendergrass, 54, and Heather Loiola, 30, both of Fort Lauderdale, previously plead guilty to conspiring to possess with intent to distribute fentanyl, in violation of Title 21, United States Code, Section 846 and possession with intent to distribute fentanyl and crack cocaine, in violation of Title 21, United States Code, Section 841. Pendergrass also plead guilty to being a felon unlawfully in possession of a firearm and ammunition, in violation of Title 18, United States Code, Section 922(g). United States District Judge Federico A. Moreno sentenced Pendergrass to 292 months in prison and Loiola to 57 months in prison. In addition, both defendants were sentenced to 3 years of supervised release.
According to the court record, from on or about July 26, 2017, through on or about February 23, 2018, Pendergrass and Loiola were engaged in a conspiracy to distribute fentanyl. Pendergrass operated the narcotics distribution center from his residence in Fort Lauderdale, Florida. He would sell what he claimed to be heroin, but in fact was either fentanyl or a mixture of fentanyl and cocaine. He also sold crack cocaine. Loiola worked as a drug distributor for Pendergrass, who possessed and caused the distribution of approximately four ounces of fentanyl a week.
On December 23, 2017, a victim purchased purported heroin, from Loiola, that had been supplied by Pendergrass. The victim ingested the purported heroin that same day and overdosed. On December 26, 2107, the victim passed away. The medical examiner ruled it a possible opioid overdose.
On January 31, 2018, the Fort Lauderdale Police Department stopped a vehicle driven by an individual who resided at Pendergrass’s house. A deceased adult male was found in the backseat of the vehicle. The victim purchased purported heroin from Pendergrass’s residence.
On February 23, 2018, during the execution of a search warrant at Pendergrass’s residence, law enforcement recovered approximately four ounces of fentanyl, containing no heroin, a 9mm semi-automatic handgun with 6 rounds of ammunition, approximately half an ounce of crack cocaine, two scales and $1,596.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Greenberg commends the investigative efforts of the DEA, Fort Lauderdale Police Department and FBI. Mr. Greenberg thanked the Sunrise Police Department and Coral Springs Police Department for their assistance with this matter. This case was prosecuted by Assistant United States Attorneys Francis I. Viamontes and Neil Karadbil. Assistant United States Attorney Robert J. Brady, Jr. also provided assistance.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Twenty-Four Alleged MS-13 Members Facing Federal Indictment for Violent Racketeering, Murder, and Money Laundering ConspiraciesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a third superseding indictment charging twenty-four alleged members and associates of the gang MS-13. The indictment was returned on June 27, 2018 and unsealed yesterday.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Chief Edward G. Hargis of the Frederick City Police Department; Frederick County State’s Attorney J. Charles Smith, III; Chief Timothy J. Altomare of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Wes Adams; Chief Henry P. Stawinski, III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
United States Attorney for the District of Maryland Robert K. Hur stated “MS-13 is one of the most violent and ruthless gangs on the streets today. Working with our state and local partners, and using the tools of our Organized Crime Drug Enforcement Task Forces, we are determined to dismantle this organization to make our communities in Maryland safer.”
“MS-13 is ravaging communities throughout the United States with brutal violence, recruiting children to their murderous ranks, destroying families, and leaving behind countless victims,” said Acting Assistant Attorney General Cronan. “This indictment — which charges two dozen alleged MS-13 members with senseless acts of violence — is the latest example of the Department of Justice’s unwavering commitment to combatting violent gangs that prey on communities, whether in Maryland or elsewhere in our country.”
“This indictment is a direct result of the hard work and dedication shared by state, local and federal authorities in their efforts to combat violent gangs in our Maryland communities,” said Special Agent in Charge Gordon B. Johnson, of the FBI's Baltimore Division. “We are committed to combating this epidemic of violence that often takes young lives and creates fear in our communities. The FBI and our partners will aggressively pursue gangs wherever they surface and are steadfast to making Maryland a safe place for our citizens.”
“We will not allow MS-13 and its members or their affiliates to bring their nefarious and deadly activities into our neighborhoods,” said Acting Special Agent in Charge Cardell T. Morant. “I am proud of the dedicated agents who have duly executed their duties in our collective pursuit of law, order and justice.”
Twenty-one defendants are charged with conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13, including:
Jorge Raul Guerra Castillo, a/k/a “Pelon,” age 36; Carlos Hernandez Diaz, a/k/a “Positivo,” age 25; Milton Portillo Rodriguez, a/k/a “Little Gangster,” and “Seco,” age 23; Juan Carlos Sandoval Rodriguez, a/k/a “Picaro,” age 19; Francisco Ramirez Pena, a/k/a “Tepo,” and “Advertencia,” age 24; Jose Alberto Sibrian Garcia, a/k/a “Chango,” age 26; Darwin Arias Mejia, a/k/a “City,” and “City Boy,” age 25; Miguel Lopez Abrego, a/k/a “Timido,” age 30; Albaro Rosa Moreno, a/k/a “Slow,” age 23; Ervin Arrue Figureoa, a/k/a “Tricky,” age 19; Ronald Mendez Sosa, age 20; Edwin Ruiz Urrutia, a/k/a “Sylvestre,” age 19; Brenda Argueta Argueta, a/k/a “Prima,” age 19; Carlos Ventura Morales, a/k/a “Pantaya,” age 30; and
Danny Hernandez Solorzano, a/k/a “Titre,” age 20.The names of six other defendants charged in the racketeering conspiracy remain sealed.
In addition, Darvin Guerra Zacarias, a/k/a “Chapin,” age 26, and Luis Fernando Cruz Rodriguez, a/k/a “Catra,” age 21, are charged with conspiracy to commit murder in aid of racketeering, along with Guerra Castillo, Hernandez Diaz, Portillo Rodriguez, Sandoval Rodriguez, Ramirez Pena, Arias Mejia, Rosa Moreno, Arrue Figueroa, Mendez Sosa, Ruiz Urrutia, and Argueta Argueta.
Samuel Diaz-Ramos, a/k/a “Pequeno,” age 32, is charged with money laundering conspiracy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. All of the defendants except for Rosa Moreno were allegedly members and associates of the Fulton Locotes Salvatrucha clique of MS-13. The indictment alleges that Rosa Moreno was a member and associate of the Parkview Locos Salvatrucha clique of MS-13.
The six-count indictment alleges that from 2015 and continuing through 2017, MS-13 members and associates engaged in racketeering activity that included murders, conspiracies to commit murder, attempted murders, extortion, robbery, kidnapping, drug trafficking, and money laundering.
Specifically, the indictment alleges that the defendants murdered five individuals in Frederick, Anne Arundel, and Montgomery Counties, dismembering three of the victims. In addition, the defendants allegedly conspired to murder eight individuals, maiming and assaulting one of the individuals with a machete, shooting one individual in the head, and kidnapping and threatening another individual with a firearm to extract payment for extortion.
The maximum sentence for the racketeering conspiracy is 20 years in prison, or up to life if special circumstances are proven; a maximum of 10 years in prison for conspiracy to commit murder in aid of racketeering; and a maximum of 20 years in prison for money laundering conspiracy. Initial appearances for the defendants began on June 28, 2018, in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI; HSI; the Frederick City Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark and Matthew DellaBetta, and Trial Attorney Catherine K. Dick of the Department of Justice’s Organized Crime and Gang Section who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Twenty-Four Alleged MS-13 Members Facing Federal Indictment for Violent Racketeering, Murder, and Money Laundering ConspiraciesRead the Press Release
A federal grand jury has returned a third superseding indictment charging 24 alleged members and associates of the gang MS-13. The indictment was returned on June 27, and unsealed yesterday.
The indictment was announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland; Special Agent in Charge Gordon B. Johnson of the FBI, Baltimore Field Office; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Chief Edward G. Hargis of the Frederick City Police Department; Frederick County State’s Attorney J. Charles Smith III; Chief Timothy J. Altomare of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Wes Adams; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department and Montgomery County State’s Attorney John McCarthy.
“MS-13 is ravaging communities throughout the United States with brutal violence, recruiting children to their murderous ranks, destroying families, and leaving behind countless victims,” said Acting Assistant Attorney General Cronan. “This indictment — which charges two dozen alleged MS-13 members with senseless acts of violence — is the latest example of the Department of Justice’s unwavering commitment to combatting violent gangs that prey on communities, whether in Maryland or elsewhere in our country.”
“MS-13 is one of the most violent and ruthless gangs on the streets today,” said U.S. Attorney Hur. “Working with our state and local partners, and using the tools of our Organized Crime Drug Enforcement Task Forces, we are determined to dismantle this organization to make our communities in Maryland safer.”
“This indictment is a direct result of the hard work and dedication shared by state, local and federal authorities in their efforts to combat violent gangs in our Maryland communities,” said Special Agent in Charge Gordon B. Johnson, of the FBI's Baltimore Division. “We are committed to combating this epidemic of violence that often takes young lives and creates fear in our communities. The FBI and our partners will aggressively pursue gangs wherever they surface and are steadfast to making Maryland a safe place for our citizens.”
“We will not allow MS-13 and its members or their affiliates to bring their nefarious and deadly activities into our neighborhoods,” said Acting Special Agent in Charge Cardell T. Morant. “I am proud of the dedicated agents who have duly executed their duties in our collective pursuit of law, order and justice.”
Twenty-one defendants are charged with conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including:
- Jorge Raul Guerra Castillo, aka “Pelon,”36;
- Carlos Hernandez Diaz, aka “Positivo,” 25;
- Milton Portillo Rodriguez, aka “Little Gangster,” and “Seco,” 23;
- Juan Carlos Sandoval Rodriguez, aka “Picaro,” 19;
- Francisco Ramirez Pena, aka “Tepo,” and “Advertencia,” 24;
- Jose Alberto Sibrian Garcia, aka “Chango,” 26;
- Darwin Arias Mejia, aka “City,” and “City Boy,” 25;
- Miguel Lopez Abrego, aka “Timido,” 30;
- Albaro Rosa Moreno, aka “Slow,” 23;
- Ervin Arrue Figureoa, aka “Tricky,” 19;
- Ronald Mendez Sosa, 20;
- Edwin Ruiz Urrutia, aka “Sylvestre,” 19:
- Brenda Argueta Arguete, aka “Prima,” 19;
- Carlos Ventura Morales, aka “Pantaya,” 30; and
- Danny Hernandez Solorzano, aka “Titre,” 20.
The names of six other defendants charged in the racketeering conspiracy remain sealed.
In addition, Darvin Guerra Zacarias, aka “Chapin,” 26, and Luis Fernando Cruz Rodriguez, aka “Catra,” 21, are charged with conspiracy to commit murder in aid of racketeering, along with Guerra Castillo, Hernandez Diaz, Portillo Rodriguez, Sandoval Rodriguez, Ramirez Pena, Arias Mejia, Rosa Moreno, Arrue Figueroa, Mendez Sosa, Ruiz Urrutia, and Argueta Argueta.
Samuel Diaz-Ramos, aka “Pequeno,” 32, is charged with money laundering conspiracy.
According to the indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, allegedly operate throughout Frederick County, Anne Arundel County, Prince George’s County and Montgomery County, Maryland. All of the defendants except for Rosa Moreno were allegedly members and associates of the Fulton Locotes Salvatrucha Fulton clique of MS-13. Rosa Moreno was an alleged member and associate of the Parkview Locos Salvatrucha clique Parkview of MS-13.
The six-count indictment alleges that from 2015 and continuing through 2017, MS-13 members and associates engaged in racketeering activity that included murders, conspiracies to commit murder, attempted murders, extortion, robbery, kidnapping, drug trafficking and money laundering.
Specifically, the indictment alleges that the defendants murdered five individuals in Frederick, Anne Arundel, and Montgomery Counties, Maryland, dismembering three of them. In addition, the defendants allegedly conspired to murder eight individuals, maiming and assaulting one of the individuals with a machete, shooting one individual in the head, and kidnapping and threatening another individual with a firearm to extract payment for extortion.
Initial appearances for the defendants were scheduled in U.S. District Court in Baltimore starting yesterday.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by FBI Baltimore Field Office; HSI Baltimore; the Frederick City Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County States Attorneys with assistance from the Baltimore County Police Department. Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kenneth S. Clark and Matthew Dellabetta of the District of Maryland are prosecuting this Organized Crime Drug Enforcement Task Force case.
Trial Date Set for Four Defendants Indicted on Meth Trafficking Charges in PanaRead the Press Release
SPRINGFIELD, Ill. – Trial has been scheduled on Aug. 3, 2018, for three Pana, Ill., defendants and a Missouri man charged with trafficking methamphetamine. Claudette Borders, 46; Jesse Stoldorf, 43, Randy Hammond, 39, all of rural Pana; and Raymond Toth, 60, of Cuba, Mo., were arraigned in federal court in Springfield on June 28.
The defendants were previously charged by complaint and arrested on May 24, 2018. Each of the four defendants has been ordered detained in the custody of the U.S. Marshals Service. A federal grand jury returned the indictment against the four on June 20.
The indictment charges Borders and Stoldorf with one count of conspiracy to distribute and possession with intent to distribute methamphetamine and one count of distribution of methamphetamine, which was obtained from Missouri, from their Pana home on May 3, 2018. Hammond is charged with one count of possession with intent to distribute methamphetamine on May 22, 2018. Toth is charged with possession with intent to distribute 500 grams or more of meth on May 22, and possession of a firearm in furtherance of a drug trafficking crime.
If convicted, the charges against Borders, Stoldorf, and Hammond carry statutory penalties of up to 30 years in prison. If convicted, the drug charge against Toth carries a statutory penalty of 10 years to life in prison. For possession of a firearm in furtherance of a drug crime, the penalty is a mandatory five years in prison to be served consecutive to any sentence ordered for the underlying drug crime.
The charges are the result of an investigation by DEA and the Central Illinois Enforcement Group (CIEG) with the assistance of the Pana Police Department and the Christian County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Crystal Correa.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Traffic Stop Leads to Convicted Felon Being Sentenced to 18 Months in Federal Prison for the Illegal Possession of FirearmsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that Chief United States District Court Judge Kristi K. DuBose sentenced Anthony Letom McCann on June 29, 2018 to serve a term of imprisonment of 18 months followed by 3 years of supervised release for illegally possessing two firearms. The defendant possessed the firearms in Mobile, Alabama on May 18, 2017 in violation of 18 USC § 922(g)(1). The defendant entered a guilty plea before the Court on March 22, 2018.
On the date of incident, a trooper with the Alabama Law Enforcement Agency (ALEA) initiated a traffic stop of the defendant’s vehicle for speeding after the trooper observed the defendant traveling 73mph in a 55mph zone. During the traffic stop, the trooper asked the defendant if there were any weapons in the vehicle. The defendant did not answer right away and did not make eye contact with the trooper. The defendant’s hesitation made the trooper suspicious and the defendant was asked to exit the vehicle. After exiting the vehicle, the defendant admitted that there was a firearm between the front seats. A search of the vehicle was conducted and the authorities located a Norinco, Model 54-1, 9 mm pistol between the front seats and a Ruger, Model AR-556, 5.56 mm rifle in the trunk of the vehicle.
This case was investigated by the Federal Bureau of Investigation (FBI) Safe Streets Task Force, and the Alabama Law Enforcement Agency (ALEA). The case was prosecuted by Assistant United States Attorneys Michael D. Anderson and Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Three Members of “Central Divisadero Players” Gang Sentenced to 12 Years or More in Prison for RacketeeringRead the Press Release
SAN FRANCISCO – Adrian Gordon (aka “Tit”), Esau Ferdinand (aka “Sauce”), and Monzell Harding, Jr., were each sentenced today for their respective roles in a racketeering conspiracy, announced Acting United States Attorney Alex Tse and FBI Special Agent in Charge John F. Bennett. Gordon was sentenced to 27 years in prison, Ferdinand was sentenced to 20 years, and Harding was sentenced to 12 years. The sentences were handed down by the Honorable William Orrick, U.S. District Judge. The defendants were tried for crimes committed on behalf of the San Francisco gang referred to as Central Divisadero Players, aka Central Divis Playas, aka CDP.
“Eradicating violent gang crime is one of the top priorities of the Justice Department,” said Acting US Attorney Tse. “The substantial federal sentences ordered today against convicted gang members is a true warning that the criminal justice system will be used to the fullest extent to punish the menace of gang conduct.”
“For years, the Central Divisadero Players terrorized San Francisco through acts of murder, assault, robbery, and pimping,” said FBI Special Agent in Charge Bennett. “The FBI and our partners used the full force of the federal justice system to bring an end to these racketeering activities and bring these five defendants to justice. We especially want to thank the SFPD and the San Pablo Police Department for their hard work in investigating these crimes.”
After a 14-week trial ending on March 5, 2018, a federal jury convicted Gordon, 29, Ferdinand, 35, and Harding, 26, as well as co-defendants Charles Heard (aka “Cheese”), 33, and Jaquain Young (aka “Loc”), 44, of various charges in connection with a racketeering conspiracy. The defendants were the first five to stand trial for crimes alleged in an eleven-defendant, 22-count second superseding indictment filed on August 14, 2014. The indictment described CDP as a racketeering organization that worked collectively with other gangs in the Western Addition of San Francisco to preserve and protect power, territory, reputation, and profits of the enterprise through the use of intimidation, violence, assaults, and murder. During the trial, the jury heard evidence that the five defendants, all from San Francisco, each played a role in the racketeering conspiracy whose crimes ranged from pimping to murder.
Each defendant was found guilty of participating in the conspiracy. In addition, Gordon was convicted of attempted murder for shooting at a victim during a nighttime ambush in San Pablo, Calif., on May 20, 2011. Further, the evidence at trial showed the defendants’ involvement in a number of violent crimes, including Ferdinand’s and Young’s roles in the murder of Jelvon Helton at the Gravity bar in the Marina District of San Francisco on November 1, 2010, and Gordon’s and Harding’s involvement in a series of nine armed robberies throughout San Francisco between September 23, 2011, and October 5, 2011. In sum, the five defendants were convicted of the following specific charges:
Defendant
Found Guilty of the Following Charges
All Five Defendants
Racketeering conspiracy
in violation of 18 U.S.C. § 1962(d)
Racketeering, including murder,
in violation of 18 U.S.C. § 1962(d)
Gordon
Attempted racketeering murder of Victim 3 on May 20, 2011, in violation of 18 U.S.C. § 1959(a)(5)
Racketeering assault with a dangerous weapon May 20, 2011, on Victim 3, in violation of 18 U.S.C. § 1959(a)(3)
Use, carry, brandishing, or discharge of a firearm during a crime of violence during the May 20, 2011, assault with a deadly weapon of Victim 3, in violation of 18 U.S.C. § 924(c)
Heard
Racketeering murder of Andre Helton on August 14, 2008, in violation of 18 U.S.C. § 1959(a)(1)
Racketeering murder of Isiah Turner on August 14, 2008, in violation of 18 U.S.C. § 1959(a)(1)
Use of a firearm in aid of the August 14, 2008, racketeering murders of Andre Helton and Isiah Turner, in violation of 18 U.S.C. § 924(j)(1)
Young
Racketeering murder of Jelvon Helton on November 1, 2010, in violation of 18 U.S.C. § 1959(a)(1)
Use, carry, brandishing, or discharge of a firearm in connection with November 1, 2010, murder in aid of racketeering of Jelvon Helton, in violation of 18 U.S.C. § 924(c)
Use of a firearm in aid of the November 1, 2010, racketeering murder of Jelvon Helton, in violation of 18 U.S.C. § 924(j)(1)
Attempting to entice and persuade an individual to travel for prostitution (from August 9, 2012, to March 11, 2013), in violation of 18 U.S.C. § 2422(a)
Attempting to entice and persuade a minor to engage in prostitution (from August 9, 2012, to March 11, 2013), in violation of 18 U.S.C. § 2422(b)
In addition to the prison terms, Judge Orrick sentenced Gordon, Ferdinand, and Harding each to 5 years of supervised release to follow their prison terms.
On June 8, 2018, Judge Orrick sentenced Heard to four life sentences for his role in the conspiracy, including the murders of Andre Helton and Isiah Turner in a double-homicide that took place by the University of San Francisco on August 14, 2008. Judge Orrick also sentenced Young to four life sentences for his role in the conspiracy, including the murder of Jelvon Helton and the attempted pimping of a minor; to an additional ten-year sentence to run consecutively for a related firearms charge; and an additional 20 years in prison for attempting to persuade an individual to travel for prostitution.
The defendants currently are in custody and will begin serving their sentences immediately.
The prosecution is the result of joint investigation by the Federal Bureau of Investigation; San Francisco Police Department, including the Gang Task Force, Homicide Detail, Robbery Detail, Special Victims Unit, Night Investigations Unit, and the Northern, Park, Bayview, Mission, Central, and Taraval Stations; San Francisco District Attorney’s Office; and the San Pablo Police Department.
Three Facing Federal Firearms Charges in Music City Pawn RobberyRead the Press Release
Three Nashville men are facing federal firearms charges relating to the armed robbery of Music City Pawn on Tuesday, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal complaint obtained yesterday afternoon charged James Horton, 24, Hakeem Mannie, 29, and Herbert Marsh, 28, all of Nashville, with robbery affecting commerce and using and carrying a firearm during and in relation to a crime of violence. Mannie and Marsh are also charged with being convicted felons in possession of firearms.
“This is yet another example of our commitment to act swiftly to reduce violent crime in middle Tennessee,” said U.S. Attorney Cochran. “As we continue to remind the public, the U.S. Attorney’s Office and our law enforcement partners are serious about removing violent offenders from our communities. With these individuals, 23 violent offenders have been charged and taken off the streets in June and this follows similar patterns in preceding months. Lengthy prison sentences will follow upon conviction and there is no parole in the federal system.”
The complaint alleges that on June 26, 2018, the trio robbed Music City Pawn on Nolensville Pike, taking 14 firearms and more than $8,000 cash. The trio entered the store wearing masks and gloves and one was armed with a handgun equipped with an extended magazine and a weapon-mounted light. Two employees were then ordered to the ground and bound with cable and one employee was dragged to the rear of the store and ordered to open the safe. After taking the firearms and cash, the assailants fled the store in a U-Haul van.
According to the complaint, Metropolitan Nashville police officers stopped a BMW at the intersection of 24th Ave. N. and Rosa Parks Blvd. for a traffic violation. Officers identified James Horton as the driver and Mannie and Marsh as two of the three passengers. During the subsequent investigation, five stolen firearms were recovered from the vehicle, four of which were taken during the robbery at Music City Pawn. The complaint also describes video surveillance and witness statements linking the trio to the robbery as well as the recovery of the U-Haul van at Marsh’s sister’s house, which was used during the getaway.
Hakeem Mannie was found to have six prior felony convictions for forgery and Herbert Marsh has three prior felony convictions for forgery.
If convicted, all defendants face up to 20 years in prison on the robbery charge, with an additional mandatory minimum consecutive sentence of five years on the charge of using and carrying a firearm during a crime of violence. Mannie and Marsh also face up to 10 years in prison for being a convicted felon in possession of firearms.
U.S. Attorney Cochran commended the work of the Metro Nashville Police Department and the Bureau of Alcohol Tobacco, Firearms & Explosives for the swift apprehension of those responsible and the subsequent investigation of this case. Assistant U.S. Attorneys Brooke Schiferle and Phillip Wehby are prosecuting the case.
A criminal complaint is merely an accusation and is not evidence of guilt. All defendant are presumed innocent until proven guilty in a court of law.
Tampa Man Sentenced to More Than Nine Years in Federal Prison for Tax and Identity Theft CrimesRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Tyrone Devlin (30, Tampa) to nine years and eight months in federal prison for conspiracy, theft of government property, access device fraud, and aggravated identity theft, related to his involvement in a stolen identity refund fraud scheme. The court ordered that this sentence be served consecutive to the 10-year prison term Devlin is currently serving in Florida state prison for unrelated crimes. The court also ordered Devlin to repay the IRS $435,499, which are the proceeds from the conspiracy. Devlin had pleaded guilty on March 26, 2018.
According to court documents, between May 2012 and June 2013, Devlin, Marquis Thornton, and others conspired to commit tax fraud and identity theft offenses. As part of the conspiracy, they obtained stolen identities, including Department of Veterans Affairs medical records, and used them to file fraudulent federal income tax returns. The fraudulent tax returns claimed refunds to which the conspirators knew they were not entitled. Devlin, Thornton, and their coconspirators obtained debit cards issued and/or registered in their own and other people’s names and directed that the debit cards be loaded with the fraudulently obtained tax refunds. They then used the debit cards to make ATM withdrawals and for other purchases and shared in the proceeds of the fraud. The conspirators filed more than 400 fraudulent tax returns claiming refunds that totaled more than $2.5 million and received more than $435,000 in proceeds.
Thornton previously pleaded guilty for his role in the scheme and was sentenced to six years and six months in federal prison.
“Identity thieves represent one of the greatest evils of our time. The damage they inflict on individuals and our economy cannot be overstated,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “Criminals should know we are paying attention. IRS Special Agents are uniquely qualified and distinctly engaged in spearheading the effort to bring those like Mr. Devlin to justice. Devlin’s sentence buoys up the IRS mandate to protect the U.S. Treasury from would-be thieves, but, more importantly, this result we hope will provide some sense of relief to the victims.”
This case was investigated by the Internal Revenue Service Criminal Investigation, the Tampa Police Department, and the Department of Veterans Affairs Office of Inspector General. It was prosecuted by Assistant United States Attorneys Megan Kistler and Simon Gaugush.
South Florida Man Pleads Guilty to Hate Crime for Threatening to Blow up MosqueRead the Press Release
The Justice Department today announced that Dustin Allen Hughes, 26, of Cutler Bay, Florida, pleaded guilty yesterday in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs through the threatened use of a dangerous weapon and explosive, in connection with making a phone call in which he threatened to detonate a bomb at a mosque in Pembroke Pines, Florida.
During the plea hearing, Hughes admitted that on May 5, he called an emergency contact for the Jamaat Ul Muttaqeen Mosque of Pembroke Pines, Florida, and left a hate-filled and profanity-laden voicemail message denigrating Islam and threatening to blow up the mosque. Hughes further admitted that in his message he specifically stated that he had a detonator, that he was “going to blow your . . . temple up,” and that “you guys are all going to be up in flames after I’m done with you.”
Following the threatening voice message, law enforcement was contacted and immediately responded, but no bomb was uncovered after an extensive exterior and interior sweep of the mosque was conducted.
Sentencing is scheduled for Sept. 6 before U.S. District Judge Federico A. Moreno in Miami. Hughes faces a maximum sentence of 20 years in prison.
“The Justice Department will not tolerate threats of hate violence, which threaten an entire community’s sense of safety and security,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter how they worship, can live their lives freely and without fear.”
“Our office is committed to protecting the right to freely exercise one’s religious beliefs,” said United States Attorney Benjamin Greenberg for the Southern District of Florida. “Obstructing this right, by force or threat of force, constitutes a hate crime that we will continue to prosecute to the fullest extent of the law.”
“Freedom of religion is a fundamental right for every American,” said Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office. “The FBI and its partners will work tirelessly to ensure anyone who threatens those rights is held accountable.”
This case was investigated by the FBI’s Miami Area Corruption Task Force and the FBI’s Joint Terrorism Task Force (JTTF). The Pembroke Pines Police Department, Miami-Dade Police Department and the City of Miami Police Department also provided assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Michael Davis of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
South Florida Man Pleads Guilty to Hate Crime for Threatening to Blow up MosqueRead the Press Release
The Justice Department today announced that Dustin Allen Hughes, 26, of Cutler Bay, Florida, pleaded guilty yesterday in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs through the threatened use of a dangerous weapon and explosive, in connection with making a phone call in which he threatened to detonate a bomb at a mosque in Pembroke Pines, Florida.
During the plea hearing, Hughes admitted that on May 5, he called an emergency contact for the Jamaat Ul Muttaqeen Mosque of Pembroke Pines, Florida, and left a hate-filled and profanity-laden voicemail message denigrating Islam and threatening to blow up the mosque. Hughes further admitted that in his message he specifically stated that he had a detonator, that he was “going to blow your . . . temple up,” and that “you guys are all going to be up in flames after I’m done with you.”
Following the threatening voice message, law enforcement was contacted and immediately responded, but no bomb was uncovered after an extensive exterior and interior sweep of the mosque was conducted.
Sentencing is scheduled for Sept. 6 before U.S. District Judge Federico A. Moreno in Miami. Hughes faces a maximum sentence of 20 years in prison.
“Our office is committed to protecting the right to freely exercise one’s religious beliefs,” said United States Attorney Benjamin Greenberg for the Southern District of Florida. “Obstructing this right, by force or threat of force, constitutes a hate crime that we will continue to prosecute to the fullest extent of the law.”
“The Justice Department will not tolerate threats of hate violence, which threaten an entire community’s sense of safety and security,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter how they worship, can live their lives freely and without fear.”
“Freedom of religion is a fundamental right for every American,” said Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office. “The FBI and its partners will work tirelessly to ensure anyone who threatens those rights is held accountable.”
This case was investigated by the FBI’s Miami Area Corruption Task Force and the FBI’s Joint Terrorism Task Force (JTTF). The Pembroke Pines Police Department, Miami-Dade Police Department and the City of Miami Police Department also provided assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Michael Davis of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Doctor Convicted of Participating in a Conspiracy to Illegally Dispense Opioids and Other DrugsRead the Press Release
Dr. Andres Mencia, 64, of Fort Lauderdale, Florida was convicted today by a federal jury in Fort Lauderdale, of participating in a conspiracy to distribute a controlled substance.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division; Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
According to evidence admitted at trial, Dr. Mencia ran Adult & Geriatric Institute of Florida lnc, d/b/a AG1 Medical & Dental (AG1), in Oakland Park, Florida. Beginning in or around January 2014 and continuing through October 2017, Dr. Mencia, and office personnel Oscar Luis Ventura-Rodriguez, 41, of Ft. Lauderdale, Nadira Sampath-Grant, 51, of Margate, and John Mensah, 50, of Miami, conspired to perform sham consultations with cash-paying patients. The evidence showed that the true and intended purpose of the consultations was to improperly issue the patients’ prescriptions for opioids and narcotics, such as Oxycodone, OxyContin and Percocet, in exchange for cash payments. Pursuant to Dr. Mencia’s instructions, co-conspirators kept track of the drug-seeking patients by identifying them as “CS” (controlled substance) “patients.” On occasion, Dr. Mencia provided his co-conspirators pre-signed prescriptions to issue the “CS” patients prescriptions for controlled substances in his name. During the course of the conspiracy, Dr. Mencia was not providing a medically meaningful consultation but was in fact acting outside the scope of his professional practice and without legitimate medical purpose.
Dr. Mencia is scheduled to be sentenced by U.S. District Judge William P. Dimitrouleas on Sept. 7, at 1:30 p.m. in Fort Lauderdale.
Ventura-Rodriguez, Sampath-Grant and Mensah previously pleaded guilty to conspiracy to defraud the United States by unlawfully distributing controlled substances. Judge Dimitrouleas sentenced Ventura-Rodriguez to serve 60 months in prison, to be followed by three years of supervised release. A re-scheduled sentencing date has not yet been set for Sampath-Grant. Sentencing is set for John Mensah on Aug. 24, at 2:15 p.m.
The investigation was conducted by DEA, HHS-OIG and ICE-HSI. The Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, and Miami Gardens Police Department assisted in the investigation. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb of the Southern District of Florida and Trial Attorney Adam G. Yoffie of the Criminal Division’s Fraud Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
South Florida Doctor Convicted of Participating in a Conspiracy to Illegally Dispense Opioids and Other DrugsRead the Press Release
Dr. Andres Mencia, 64, of Fort Lauderdale, Florida was convicted today by a federal jury in Fort Lauderdale, of participating in a conspiracy to distribute a controlled substance.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida; Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division; Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
According to evidence admitted at trial, Dr. Mencia ran Adult & Geriatric Institute of Florida lnc, d/b/a AGI Medical & Dental (AGI), in Oakland Park, Florida. Beginning in or around January 2014 and continuing through October 2017, Dr. Mencia, and office personnel Oscar Luis Ventura-Rodriguez, 41, of Ft. Lauderdale, Nadira Sampath-Grant, 51, of Margate, and John Mensah, 50, of Miami, conspired to perform sham consultations with cash-paying patients. The evidence showed that the true and intended purpose of the consultations was to improperly issue the patients’ prescriptions for opioids and narcotics, such as Oxycodone, OxyContin and Percocet, in exchange for cash payments. Pursuant to Dr. Mencia’s instructions, co-conspirators kept track of the drug-seeking patients by identifying them as “CS” (controlled substance) “patients.” On occasion, Dr. Mencia provided his co-conspirators pre-signed prescriptions to issue the “CS” patients prescriptions for controlled substances in his name. During the course of the conspiracy, Dr. Mencia was not providing a medically meaningful consultation but was in fact acting outside the scope of his professional practice and without legitimate medical purpose.
Dr. Mencia is scheduled to be sentenced by U.S. District Judge William P. Dimitrouleas on Sept. 7, at 1:30 p.m. in Fort Lauderdale.
Ventura-Rodriguez, Sampath-Grant and Mensah previously pleaded guilty to conspiracy to defraud the United States by unlawfully distributing controlled substances. Judge Dimitrouleas sentenced Ventura-Rodriguez to serve 60 months in prison, to be followed by three years of supervised release. A re-scheduled sentencing date has not yet been set for Sampath-Grant. Sentencing is set for John Mensah on Aug. 24, at 2:15 p.m.
The investigation was conducted by DEA, HHS-OIG and ICE-HSI. The Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, and Miami Gardens Police Department assisted in the investigation. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb of the Southern District of Florida and Trial Attorney Adam G. Yoffie of the Criminal Division’s Fraud Section.
Skilled Nursing Facility, Management Company, and Owner Agree to Pay $540,000 to Resolve Allegations of Providing Worthless Services and UpcodingRead the Press Release
LEXINGTON, Ky. – Preferred Care Inc. (Preferred Care); its Stanton, Kentucky skilled nursing facility, Stanton Nursing and Rehabilitation Center (Stanton Nursing); owner, Thomas D. Scott; Preferred Care Partners Management Group (PCPMG); and certain other affiliated entities have agreed to pay $540,000 to the United States and the Commonwealth of Kentucky, to resolve allegations that Stanton Nursing billed Medicare and the Kentucky Medicaid program for fraudulently inflated skilled nursing services and providing materially substandard care, in violation of the False Claims Act.
Preferred Care and its related entities own or operate approximately one-hundred skilled nursing facilities throughout the United States, including Stanton Nursing and twenty other facilities in Kentucky. Preferred Care’s facilities, including Stanton Nursing, are managed by PCPMG and related entities. Preferred Care, Stanton Nursing, and PCPMG, along with related entities in Kentucky and New Mexico, declared Chapter 11 bankruptcy, in November 2017, in the Bankruptcy Court for the Northern District of Texas. The respective bankruptcy courts approved the settlement on June 26, 2018.
The United States alleged that Preferred Care, PCPMG, Stanton Nursing, and certain related entities violated the False Claims Act by submitting, or causing the submission of, false claims to Medicare and Medicaid. Medicare reimburses skilled nursing facilities based on a patient’s resource utilization group, or RUG level, which is determined based on the anticipated amount of skilled therapy and skilled nursing services required by the patient. The United States alleged that, from July 1, 2012 through October 31, 2017, Preferred Care, PCPMG, and Stanton Nursing improperly coded patients for higher amounts of skilled nursing services than they needed or received, resulting in higher payments from Medicare.
The Settlement also resolves the government’s allegations that, from July 1, 2012 through April 30, 2015, certain patients at Stanton Nursing received materially substandard or worthless services.
“The United States is committed to protecting our senior community by ensuring that taxpayer dollars are not misspent and nursing facility residents are receiving appropriate, high quality care,” said Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky. “This settlement, reached in cooperation with our partners at the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse, highlights our efforts to combat healthcare fraud, waste, and abuse, and hold accountable those who fraudulently deprive government health care programs of vital resources.”
“Protecting the health and safety of Medicare and Medicaid patients is our top priority,” said Derrick L. Jackson, the Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Settlements like this one hold skilled nursing facilities responsible for providing the best possible care to our beneficiaries.”
“My office works every day to protect Kentucky’s most vulnerable citizens and to seek justice for our seniors who have been physically abused,” Kentucky Attorney General Andy Beshear said. “Our work on this case is an example of our ongoing commitment and the commitment of our federal partners to stop those who harm our seniors by not giving them the very best care and service.”
The allegations were originally brought in lawsuits filed by defendants’ former employees Susan Helton and Joseph Donchatz, under the qui tam provisions of the False Claims Act. Under the Act, private parties may bring suit on behalf of the government and may receive a portion of any federal recovery.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
This matter was handled as part of the Elder Justice Initiative of the Department of Justice (https://www.justice.gov/elderjustice/). In June 2016, the United States Attorney’s Offices for the Eastern District and Western District of Kentucky formed an Elder Justice Task Force (https://www.justice.gov/usao-edky/elder-justice-task-force). The Task Force was assembled to foster a collaborative working relationship among federal, state, and local agencies charged with protecting the elderly. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions, or involves financial fraud schemes. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
This settlement is the result of an investigation by the U.S. Attorney’s Office for the Eastern District of Kentucky, U.S. Department of Justice Civil Division’s Commercial Litigation Branch, Office of Inspector General of the U.S. Department of Health and Human Services, and Kentucky Attorney General’s Office of Medicaid Fraud and Abuse. The cases are captioned U.S. ex rel. Doe v. Preferred Care Inc., et al. (E.D. Ky.) and U.S. ex rel. Donchatz v. Stanton Health Facilities, L.P., et al. (E.D. Ky.).
Sioux Falls Man Sentenced to 25 Years in for Role in Methamphetamine ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that Quadiri Ayodele, age 38, of Sioux Falls, South Dakota, was sentenced to 25 years in prison on June 19, 2018, by U.S. District Court Judge Karen E. Schreier. Ayodele was convicted of conspiracy to distribute a controlled substance, 500 grams or more of methamphetamine, and of violating the supervised release conditions stemming from his 2008 federal conviction for conspiracy to distribute and possession with intent to distribute a controlled substance.
Ayodele’s time in prison will be followed by ten years of supervised release. He was also ordered to pay $100 to the Federal Crime Victim’s Fund. Ayodele was indicted by a federal grand jury on October 11, 2017. He pled guilty on January 25, 2018.
The investigation of Ayodele revealed his leadership of a drug ring that was responsible for transporting several pounds of of methamphetamine from Phoenix, Arizona, to South Dakota. A search warrant was executed Ayodele’s motel room in Sioux Falls, and at which law enforcement located approximately 100 grams of methamphetamine. Ayodele was later apprehended in Nebraska, where law enforcement located approximately 294 grams of methamphetamine in his backback. The District Court found that Ayodele’s drug dealing scheme involved several participants traveling to and from Arizona for the purpose of transporting illegal drugs to sell in South Dakota, and that the drug ring was Ayodele’s primary source of income while he was involved.
This case was investigated by the Sioux Falls Area Drug Task Force, the South Dakota Highway Patrol, the Arizona Department of Public Safety, the Arizona Highway Patrol, the Nebraska State Patrol, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Schuele Boys Gang Member Involved in Homicide Sentenced to Serve 20 Years in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Marcel Worthy, aka Cheese, 32, of Buffalo, NY, who was convicted of racketeering conspiracy involving five kilograms or more of cocaine and murder, and conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced by U.S. District Judge Richard J. Arcara to serve 240 months in federal prison.
Assistant U.S. Attorneys Wei Xiang and Paul Parisi, who handled the case, stated that on December 17, 2006, Worthy and an associate were involved in a confrontation with a group of individuals at a gas station at Grider Street and East Delavan Avenue in Buffalo. As the individuals walked away, the defendant drove after them. Seeing the individuals in the vicinity of 82 Durham Avenue, Worthy stopped his vehicle and his associate shot and killed Kevin Gray. In addition to participating in the murder of Kevin Gray, the defendant also sold marijuana.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, was responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana. The Schuele Boys Gang was also responsible for the murder of Quincy Balance in August 2012.
Worthy is one of 28 Schuele Boys Gang members and associates arrested and convicted in this case.
The sentencing is the result of an investigation by the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the New York State Police, under the direction of Major Edward Kennedy. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Edinboro University Police Department in Pennsylvania; the West Tennessee Judicial Drug Task Force; the City of McAllen, Texas Police Department; HSI Harlingen, Texas; and the FBI offices in Houston, Texas and Jackson, Mississippi.
Sacramento Man Indicted for Illegal Firearm PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment this week against Dominic Raymond Orozco, 38, of Sacramento, charging him with being a felon in possession of a firearm, United States Attorney McGregor Scott announced.
According to court documents, on May 16, 2018, Orozco was found in possession of a Smith & Wesson 9 mm handgun. Orozco has at least one prior felony convictions, making it illegal for him to possess a firearm.
This case was the product of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, the Sacramento County District Attorney’s Office, the Sacramento Police Department, and the Sacramento County Sheriff’s Department. Assistant United States Attorneys David W. Spencer and Justin L. Lee are prosecuting the case.
If convicted, Orozco faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Sacramento County Man Sentenced to 10 Years for Attempted Enticement of A MinorRead the Press Release
SACRAMENTO, Calif. — George Hristovski, 59, of Elverta, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 10 years in prison for attempted enticement of a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, Hristovski posted an online advertisement seeking a mother who was willing to allow him to have sex with her daughter. An undercover agent with the Placer County Sheriff’s Department responded to the advertisement and began to correspond with Hristovski, posing as a mother and eventually her 13-year-old daughter. Hristovski was arrested on August 4, 2014, after making explicit demands for pornographic images of the 13-year-old girl that he believed he was communicating with, and for attempting to arrange a meeting with the girl for the purpose of having sex with her.
This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Placer County Sheriff’s Department. Assistant U.S. Attorney Michele Beckwith prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rochester Man Sentenced for Lying to an FBI AgentRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Michael Beers, 68, of Rochester, NY, who was convicted of making a false statement to an FBI special agent, was sentenced to serve 60 months in federal prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that in February 2017, the FBI conducted a child pornography investigation during which an undercover agent downloaded four videos of child pornography directly from a device using an IP address belonging to the defendant at his residence on Lake Avenue in Rochester.
On March 10, 2017, the FBI executed a search warrant at Beers’ residence. Agents located a computer which contained file titles consistent with child pornography. The defendant was questioned regarding his use of the computer, at which point Beers willfully made materially false statements to FBI Agents. Specifically, the defendant denied having access to or using the computer, denied knowing the password for the computer, and denied that child pornography had been accessed, inadvertently or otherwise, on the computer. In reality, the defendant used the computer, personally set the password for computer, and had seen child pornography on the computer.
The sentencing is the culmination of an investigation on the part of Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Rochester Man Charged with Hacking Online Accounts of Young WomenRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Justin Potts, 36, of Rochester, NY, was charged by criminal complaint with unauthorized access of a protected computer. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, in March 2017, the Rochester Police Department alerted the FBI’S Cyber Task Force about the defendant who had been arrested for using his mobile phone to take pictures of women in various stages of undress at multiple tanning salons in Rochester.
Subsequent investigation determined that Potts’s computer storage devices contained approximately 450 computer files which contained indications that the defendant gained unauthorized access into various women’s password protected digital accounts.
Potts conducted a multi-year, multi-state, campaign to access the online accounts primarily associated with young women. Once the defendant successfully gained access to a victim’s online account, he would routinely continue accessing additional accounts for the same victim. Potts appeared to target university and personal email accounts, Facebook accounts, Apple iCloud accounts, and online password managers. An examination of one of the defendant’s hard drives found many files that contained nude or partially nude or revealing images of some of the young women whose accounts he hacked. Investigators also found nude images of celebrities, images believed to be downloaded from file sharing sites.
Investigators believe 150 victims were targeted as a result of the computer intrusion scheme orchestrated by Potts.
The defendant made an initial appearance on June 28, 2018, before U.S. Magistrate Judge Marian W. Payson and is being detained.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Ridgeview Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Ridgeview, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
William Fielder, age 55, was indicted on June 19, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 26, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 2 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 19, 2017, Fielder assaulted an individual with a dangerous weapon and said assault resulted in serious bodily injury.
The charges are merely accusations and Fielder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Fielder was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Red Bud Resident to Serve 25 Years in Prison for Production of Child PornographyRead the Press Release
On June 29, 2018, Michael B. Stephens, Jr., 43, of Red Bud, Illinois, was sentenced to 25
years in federal prison for producing child pornography, United States Attorney for the Southern
District of Illinois, Donald S. Boyce, announced today. Stephens previously pled guilty on March
22 to a two-count indictment charging him with sexually exploiting a minor on two occasions in
November 2016.
The charges arose from an investigation conducted by the Federal Bureau of Investigation
and the Waterloo, Illinois, Police Department. Evidence at the plea and sentencing hearings
established that on numerous occasions in 2016, Stephens videotaped himself engaging in sexual
intercourse with a minor female at his residence in Waterloo, Illinois. The evidence also
established that Stephens was both physically and verbally abusive to the minor female during this
time.
In addition to the 25 year sentence, United States District Judge Michael J. Reagan imposed
a ten-year term of supervised release and ordered Stephens to pay a $500 fine. As a result of his
conviction, Stephens will also have to register as a sex offender after he is released from prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched
in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation
and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child
Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local
resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to
identify and rescue victims. For more information about Project Safe Childhood, please visit
www.usdoj.gov/psc. For more information about internet safety education, please visit
www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Federal Bureau of Investigation’s Springfield Child
Exploitation Task Force and the Waterloo, Illinois, Police Department. The case was prosecuted
by Assistant United States Attorney Daniel T. Kapsak with assistance fromMonroe County State’s
Attorney Christopher Hitzemann.
Rapid City Man Sentenced on Drug Conspiracy in Operation Broken Wing - Large Methamphetamine ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine) was sentenced on June 25, 2018, by Chief Judge, Jeffrey L. Viken, U.S. District Court.
Arrow Lynn Curry, age 25, was sentenced to 96 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Curry was previously found guilty by a federal jury to Conspiracy to Distribute a Controlled Substance, on April 20, 2017.
Beginning December 2014, Curry conspired and agreed with other persons, to intentionally distribute methamphetamine in western South Dakota.
Also in connection with this conspiracy, dubbed Operation Broken Wing, James Lahoe, Timothy Bluehorse, Stanley Bluehorse, Sara Cordova, Elizabeth Cordova, Reymundo Cordova, Jose Rivera, Marion Orozco, Porshe Sansberry, Susie Hubner, Albert Nagel, Dionisio Munoz-Torres, and Cory Tobacco, were charged and pleaded guilty to various drug and firearm charges.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case was investigated by the United States Postal Inspection Service, Unified Narcotics Enforcement Team, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, South Dakota Division of Criminal Investigation, and Pennington County Sheriff’s Office. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Curry was immediately turned over to the custody of the U.S. Marshals Service.
Rangeley Man Sentenced to Two Years for Fentanyl DistributionRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Steven Butler, 25, of Rangeley, Maine, was sentenced today by U.S. District by Chief Judge Nancy Torresen to two years in prison and three years of supervised release for distribution of fentanyl.
According to court records, between March and June 2017, the defendant distributed fentanyl three times to a confidential informant in Rangeley.
The case was investigated by the U.S. Drug Enforcement Administration; the Franklin County Sheriff’s Office; the Bureau of Alcohol Tobacco Firearms and Explosives; the Maine State Police; and the Rangeley Maine Police Department, with assistance provided by the Maine Office of the Attorney General. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Portland Man Indicted for Attempting to Bribe ICE Deportation OfficerRead the Press Release
Downloadable file: INDICTMENT-Burgos-Final.pdf
PORTLAND, Ore. – Antonio Oswaldo Burgos, 48, of Portland, made an initial appearance today in federal court before U.S. Magistrate Judge Paul Papak.
The court unsealed a three-count indictment alleging Burgos, on three separate occasions, attempted to bribe a U.S. Immigration and Customs Enforcement (ICE) deportation officer. Burgos is accused of offering to pay the officer in order to facilitate the deportation of his estranged wife and daughter.
Burgos was released pending trial. A two-day jury trial is scheduled for August 28, 2018 before U.S. District Court Judge Michael H. Simon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was jointly investigated by ICE’s Office of Professional Responsibility and Homeland Security Investigations.
Pennsylvania Woman Sentenced for Smuggling Drugs into U.S. on Commercial FlightRead the Press Release
BOSTON – A Pennsylvania woman was sentenced yesterday in federal court in Boston for smuggling drugs into the United States on a commercial flight from the Dominican Republic.
Natalia Alexander Duran, 23, was sentenced by U.S. District Court Judge Rya W. Zobel to one year and one day in prison and three years of supervised release. In March 2018, Duran pleaded guilty to two counts of importation of a controlled substance - heroin and cocaine, and two counts of possession of a controlled substance with the intent to distribute - heroin and cocaine. The U.S. Attorney’s Office sought a sentence of 30 months in prison, followed by three years of supervised release.
“Trafficking drugs is risky enough, but swallowing dozens of pellets full of heroin and cocaine is just reckless,” said United States Attorney Andrew E. Lelling. “Moreover, it didn’t work, because of the diligence and professionalism of the U.S. Customs and Border Protection officers who encountered Ms. Duran when she arrived at Logan. These officers stopped nearly a kilogram of cocaine and over 100 grams of heroin from hitting our streets.”
“This arrest exemplifies the drastic and dangerous means criminals will take to smuggle illicit drugs into our country,” said William A. Ferrara, Director of Field Operations, U.S. Customs and Border Protection. “The experience, training and constant vigilance of the CBP Officers here in Boston prevented these dangerous drugs from reaching our communities and I commend their great work.”
On May 30, 2017, Duran arrived at Logan International Airport on a flight from the Dominican Republic. Upon arrival, Duran, a U.S. citizen, was referred for a secondary baggage examination. Duran stated that she needed to use the restroom and was told that she would have to be “pat frisked” before she could do so. Duran was then pat frisked by a female U.S. Customs and Border Protection officer, who felt an abnormality in Duran’s groin area. Duran subsequently admitted that she had drugs concealed in her clothing. 41 pellets of suspected cocaine were removed from a bodysuit worn by Duran. Concerned that Duran may have ingested additional pellets of drugs, she was transported to a local hospital and given an x-ray, which revealed numerous pellets inside her abdominal area. While at the hospital, Duran excreted an additional 68 pellets. A combined total of 109 pellets were recovered, tested and determined to be approximately 971 grams of cocaine and approximately 109 grams of heroin.
During a subsequent interview, Duran admitted that in April 2017 she smuggled 75 pellets of drugs from the Dominican Republic into the United States in the same way. On the first trip, Duran flew into New York City and spent two days in a hotel passing the pellets through her digestive tract. In total, Duran smuggled approximately 1,720 grams of cocaine and 109.3 grams of heroin into the United States.
U.S. Attorney Lelling and CBP Director of Field Operations Ferrara made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Newark Man Conspired to Possess and Distribute HeroinRead the Press Release
PITTSBURGH, PA - A resident of Newark, New Jersey, pleaded guilty in federal court to charges of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin, United States Attorney Scott W. Brady announced today.
Shawn Robinson, age 36, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Robinson conspired with other individuals to possess with intent to distribute, and possessed with intent to distribute over 100 grams of heroin.
The Court was further advised that on October 14, 2015, one of Robinson’s co-conspirators made arrangements to sell 100 bricks of heroin for $14,500 to another individual. Robinson’s co-conspirator also agreed to advance an additional 50 bricks of heroin. Robinson and another of his co-conspirators arrived at the Hyatt Place in Robinson Township to deliver the heroin. When they arrived, Robinson was carrying a black plastic shopping bag. Inside of the shopping bag, officers recovered a clear plastic vacuum-sealed bag containing 150 bricks of heroin, weighing 185.92g.
Judge Bissoon scheduled sentencing for November 6, 2018. The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Robinson remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Robinson.
New Vineyard Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Jordan Richard, 24, of New Vineyard, Maine, pleaded guilty today in U.S. District Court to conspiracy to distribute cocaine, heroin, fentanyl, and oxycodone and discharging a firearm during, in relation to, and in furtherance of, a drug trafficking crime.
According to court records, between January 2016 and September 2017, the defendant and others conspired to distribute cocaine, heroin, fentanyl, and oxycodone from the defendant’s residences in Rangeley and New Sharon, Maine. On July 28, 2016, the defendant shot and killed one of two men who came to his Rangeley residence to rob him. The second man fled the scene and was subsequently captured. Officers investigating the shooting discovered cocaine, heroin, fentanyl, oxycodone, cash, drug paraphernalia and the semiautomatic handgun used in the shooting in the residence.
The defendant faces up to 20 years in prison, three years supervised release, and a $1,000,000 fine on the drug charge. He faces a mandatory consecutive term of between 10 years and life in prison, five years of supervised release, and a $250,000 fine on the gun charge.
The case was investigated by the U.S. Drug Enforcement Administration; the Franklin County Sheriff’s Office; the Bureau of Alcohol Tobacco Firearms and Explosives; the Maine State Police; and the Rangeley Maine Police Department; with assistance provided by the Maine Office of the Attorney General. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Orleans Woman Charged with Identity Theft and Attempted FraudRead the Press Release
U.S. Attorney Duane A. Evans announced that KEYIRA GABLE, age 31, a resident of New Orleans, was charged today by a federal grand jury with attempted access device fraud and aggravated identity theft.
If convicted, GABLE faces the following penalties. If convicted of attempted access device fraud, she faces a sentence of up to 10 years in prison, a $250,000.00 fine, and up to three years of supervised release after imprisonment, pursuant to Title 18, United States Code, Section 1029(a)(2). If convicted of aggravated identity theft, she would receive a mandatory two-year prison sentence consecutive to any other term of imprisonment, a $250,000.00 fine, and up to one year of supervised release.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Secret Service New Orleans Field Office and the Slidell Police Department in investigating this matter. U.S. Attorney Evans thanked the District Attorney’s Office for the 22nd Judicial District for its assistance in this prosecution. Assistant U.S. Attorney Matthew R. Payne is in charge of the prosecution.
National Healthcare Fraud Takedown Results in Charges Against 601 Individuals Responsible for More Than $2 Billion in Fraud LossesRead the Press Release
Largest Health Care Fraud Enforcement Action in Department of Justice History Resulted in 76 Doctors Charged and 84 Opioid Cases Involving More Than 13 Million Illegal Dosages of Opioids
WASHINGTON - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced yesterday the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Inspector General Daniel R. Levinson of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Director Alec Alexander of the Centers for Medicare and Medicaid Services (CMS) Center for Program Integrity and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).
Yesterday’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
The charges announced yesterday aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
Cases that have been indicted in the Eastern District of Kentucky are:
- United States v. Kimberly Jones (6:18-cr-00030 E.D. Ky.): Kimberly Jones, a licensed pharmacist in Williamsburg, Kentucky, is charged with 26 counts of distributing oxycodone or oxymorphone, one count of maintaining a drug involved premises, and one count of health care fraud. The Indictment alleges that Jones, the owner of Kim’s Hometown Pharmacy in Williamsburg, repeatedly filled prescriptions for oxycodone and oxymorphone outside the scope of professional practice, while also billing insurers for prescription drugs that were never dispensed to patients. The Indictment was unsealed following Jones’s arrest on June 26, 2018. The case is assigned to United States District Judge Gregory F. Van Tatenhove and is set for trial on August 21, 2018. Jones faces a maximum sentence of 20 years imprisonment if convicted on the controlled substance offenses and 10 years if convicted of health care fraud.
- United States v. Gary McPherson (6:18-cr-00031 E.D. Ky.): Gary McPherson, a licensed pharmacist, is charged with theft of pre-retail medical products in violation of 18 U.S.C. § 670. The charge stems from McPherson’s theft of pharmaceutical drugs from Kim’s Hometown Pharmacy in Williamsburg, Kentucky, in May 2018. The Indictment was unsealed on June 26, 2018, and McPherson will appear in court on July 11, 2018, for arraignment. The case is assigned to United States District Judge Gregory F. Van Tatenhove. McPherson faces a maximum sentence of five years imprisonment if convicted.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
- United States v. Kimberly Jones (6:18-cr-00030 E.D. Ky.): Kimberly Jones, a licensed pharmacist in Williamsburg, Kentucky, is charged with 26 counts of distributing oxycodone or oxymorphone, one count of maintaining a drug involved premises, and one count of health care fraud. The Indictment alleges that Jones, the owner of Kim’s Hometown Pharmacy in Williamsburg, repeatedly filled prescriptions for oxycodone and oxymorphone outside the scope of professional practice, while also billing insurers for prescription drugs that were never dispensed to patients. The Indictment was unsealed following Jones’s arrest on June 26, 2018. The case is assigned to United States District Judge Gregory F. Van Tatenhove and is set for trial on August 21, 2018. Jones faces a maximum sentence of 20 years imprisonment if convicted on the controlled substance offenses and 10 years if convicted of health care fraud.
National Healthcare Fraud Takedown Results in Charges Against 601 Individuals Responsible for $2 Billion in Fraud LossesRead the Press Release
WASHINGTON - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Deputy Inspector General Gary Cantrell of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity Alec Alexander and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).
Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
In Winamac, Indiana, two individuals involved with the operation of Transport Loving Care (also known as Alliance EMS) allegedly submitted false claims to Medicare and Medicaid. Michael Wilson and Jaqueline “Jay” Podell – allegedly claimed they provided transportation of recipients to dialysis by ambulance service when in fact the recipients were ambulatory, did not require ambulance transportation and were not eligible for ambulance transportation. The Indictment claims the loss to Indiana Medicaid is in excess of $10,000. Charges include conspiracy to commit health care fraud (Medicare); health care fraud (Medicare); Medicaid health care fraud; and forfeiture.
In Gary, Indiana, two individuals involved in the operation of Lending a Helping Hand Transportation -- Felicia Blount and Charlotte Hunter -- allegedly billed Indiana Medicaid for services not rendered, inflating mileage for trips from Northwest Indiana to Indianapolis by approximately 100 miles per trip. The total fraud to the Indiana Medicaid program is in excess of $100,000. The two defendants are charged with health care fraud and the indictment also seeks forfeiture.
In San Pierre, Indiana, four individuals involved in United Mobile Care – Edward Kerr, Brenda Kerr, Mark Estrada and Tammy Estrada – allegedly submitted false claims to the Medicare and Medicaid program. They allegedly claimed they provided transportation of recipients to dialysis by ambulance service when in fact the recipients were ambulatory, did not require ambulance transportation and were not eligible for ambulance transportation. The Indictment claims the losses in excess of $100,000. Charges include 1 count of conspiracy to commit health care fraud and 10 counts of health care fraud.
US Attorney Kirsch said, “The defendants indicted in these cases are charged with stealing tax payer money by defrauding our health care funds. The victims are the taxpayers. Working with our law enforcement partners we will continue to investigate and prosecute perpetrators of these fraudulent schemes.”
"Health care fraud is a threat to this country, both in terms of the well-being of patients and the integrity of government health care programs,” said Lamont Pugh, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General. “Our agents will continue to work with our law enforcement partners to ensure these criminals are held accountable for their actions.”
“Medicaid fraud leaves in its wake many victims,” Attorney General Hill said. “Any licensed providers who commit this offense are taking advantage of those for whom they are supposed to provide care, including the disabled and less fortunate who rely on Medicaid. In addition, they are also fleecing all taxpayers whose hard-earned money is used to fund these programs. The investigators and lawyers in our Medicaid Fraud Control Unit are doing good work to help bring lawbreakers to justice. At the same time, we respect the due process to which all are entitled, and all those who stand accused of this crime are certainly presumed innocent until a court finds otherwise.”
The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois, Middle District of Louisiana, and the Middle District of Florida; and agents from the FBI, HHS-OIG, DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and state Medicaid Fraud Control Units.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Additional documents related to this announcement will shortly be available here:
https://www.justice.gov/opa/documents-and-resources-june-28-2018.
This operation also highlights the great work being done by the Department of Justice’s Civil Division. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2 billion in judgements and settlements related to matters alleging health care fraud.
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National Health Care Fraud Takedown Results in Charges Against 590 Individuals Responsible for $2+ Billion in Fraud LosesRead the Press Release
Roanoke, VIRGINIA – Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced yesterday the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 590+ charged defendants across 56 federal districts, including 150+ doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Of those charged, over 150 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Twenty-nine state Medicaid Fraud Control Units also participated in today’s arrests.
Yesterday’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
In the Western District of Virginia, two indictments returned this week were included in the nationwide takedown. In both cases, the United States Attorney’s Office collaborated with the Department of Health and Human Services-Office of the Inspector General and the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit.
In a 73-count indictment returned earlier this week and announced yesterday, East Mental Health, LLC, Christopher Dean East, Joann Kathleen Patterson, Alfred Lloyd Robrecht, William Barclay Allison and Ryan Thomas Greene were charged with conspiracy to commit health care fraud, and other related charges.
According to the indictment, the defendants operated East Mental Health, also known as East Wellness Center, located in Roanoke. The defendants allegedly conspired to fraudulently obtain $45 million from Medicaid over a ten-year period by falsifying mental health progress notes and billing Medicaid based on those false notes for services that were not rendered as described and allowed. East Mental Health, a facility that provided support to individuals with mental illnesses, abruptly closed their facility in October 2017 after becoming the target of a federal whistleblower lawsuit that was filed in 2013.
In a separate 17-count indictment returned this week, Vickie Phanelson Adams and Latoya Litchel Preston were charged with health care fraud. According to the indictment, Adams owned and operated MPowering Kids, a therapeutic day treatment center for children and adolescents and Golden Touch Home Health Care, a home based personal care service facilitation company assisting elderly and disabled adults. The indictment alleges that Adams and Preston falsified multiple Weekly Progress Notes for mental health services that were never provided and Adams falsified Golden Touch Home Assessments notes for services which were never provided.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.