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28 June 2018
Beaver County Man Pleads Guilty to Distributing Fentanyl that Caused a Fatal OverdoseRead the Press Release
PITTSBURGH - A resident of Hopewell Township, PA, pleaded guilty in federal court to one count of distribution of fentanyl, which he acknowledged caused the death of a victim identified as L.K., United States Attorney Scott W. Brady announced today.
Corey Bargerstock, age 43, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on July 6, 2016, Bargerstock sold stamp bags of fentanyl to L.K., which caused L.K. to fatally overdose.
Judge Fischer scheduled sentencing for November 16, 2018, at 11 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed 1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense/offensesoffense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorneys Tonya Sulia Goodman and Timothy Lanni are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Beaver County District Attorney’s Office, Detectives Bureau, and the Hopewell Township Police Department conducted the investigation that led to the prosecution of Bargerstock.
Baton Rouge-Based Health Care Fraud Strike Force Announces Charges Against Twenty-Six Individuals as Part of National Health Care Fraud and Opioid TakedownRead the Press Release
WASHINGTON - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Of those charged, more than 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty (30) state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Inspector General Daniel R. Levinson of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation, Administrator Seema Verma of the Centers for Medicare and Medicaid Services (CMS), and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).
As part of the National Health Care Fraud and Opioid Takedown, in Baton Rouge, Louisiana, United States Attorney Brandon J. Fremin announced new charges against 26 individuals for health care fraud, opioid-related crimes, and related offenses. The Medicare Fraud Strike Force is part of the joint initiative announced in May 2009 between the U.S. Department of Justice and the U.S. Department of Health and Human Services to reduce and prevent Medicare and Medicaid fraud through enhanced cooperation. In December 2009, a Medicare Fraud Strike Force team was deployed in the U.S. Attorney’s Office in Baton Rouge, Louisiana. Over the past eight years, the team has continued working in Baton Rouge and expanded across southern Louisiana.
Christopher Armstrong / Louisiana Spine & Sports
In the first case, a federal grand jury has returned an indictment charging Christopher William ARMSTRONG, age 43, of Prairieville, Louisiana, with health care fraud, conspiracy to violate the federal Controlled Substances Act, and possession with intent to distribute a controlled substance. According to the indictment, ARMSTRONG was a licensed physician’s assistant and was employed by Louisiana Spine & Sports LLC, a pain management clinic in Baton Rouge from approximately August 2004 through approximately January 2014. In that role, ARMSTRONG allegedly logged into the clinic’s electronic computer system and, without authorization, created fraudulent prescriptions for controlled substances such as oxycodone and hydrocodone and then either forged the signatures of the clinic’s physicians on the prescriptions or surreptitiously caused physicians to unwittingly sign the prescriptions.
According to the indictment, ARMSTRONG would provide the fraudulent prescriptions to other individuals, who would fill the prescriptions and return the controlled substances to ARMSTRONG. At this point, according to the indictment, in an effort to conceal the scheme, ARMSTRONG would delete the records of the fraudulent prescriptions from the clinic’s computer system. Through this alleged scheme, the indictment alleges that the defendant caused local pharmacies to submit false and fraudulent claims to TRICARE, a federal health benefit program; that the defendant conspired with others to obtain controlled substances such as oxycodone and hydrocodone by misrepresentation and fraud, and to possess the substances with the intent to distribute them; and that, on various dates in 2013, the defendant actually possessed such substances with intent to distribute them.
This ongoing investigation is being handled by the Drug Enforcement Administration, the U.S. Department of Health and Human Services—Office of Inspector General (HHS-OIG), and the Federal Bureau of Investigation. The investigation was further developed by the East Baton Rouge District Attorney’s Office. The prosecution is being led by Christopher B. Brinson, a Trial Attorney with the Department of Justice’s Criminal Division—Fraud Section, Assistant U.S. Attorney Demetrius D. Sumner, and Dustin Davis, Assistant Chief of the Fraud Section.
Gretchen Duplantis / Spine & Body
In the second case, the court has unsealed a bill of information charging Gretchen DUPLANTIS, age 44, of Prairieville, Louisiana, with two counts of health care fraud. According to the bill and related documents that the defendant has signed, DUPLANTIS was the owner, operator, and managing employee of Spine and Body, LLC (“Spine and Body”), a physical therapy clinic located in Baton Rouge. Beginning in March of 2012 and continuing through March of 2014, DUPLANTIS, through Spine and Body, submitted fraudulent claims to Medicare and Blue Cross Blue Shield of Louisiana (BCBSLA) for physical therapy treatments she had purportedly provided to individuals at her clinic. Specifically, DUPLANTIS allegedly (1) billed Medicare and BCBSLA for therapy sessions when the patients had not received any treatment; (2) billed BCBSLA for therapy sessions purportedly performed on Spine and Body employees, who had not received any such treatment; and (3) billed for treatments that had been provided by unlicensed employees, contrary to representations made to BCBSLA and Medicare in the claims. From March of 2012 through March of 2014, DUPLANTIS, through Spine and Body, submitted approximately $1.6 million in claims to Medicaid and BCBSLA and was paid more than $470,000. The ongoing investigation is being handled by HHS-OIG and the FBI and the prosecution is being led by Dustin Davis, who serves as Assistant Chief of the Department of Justice’s Criminal Division—Fraud Section, and Assistant U.S. Attorney Demetrius D. Sumner.
Mark Stephan Immasche
In the third case, the United States has filed a bill of information charging Mark Stephan IMMASCHE, age 44, of Prairieville, Louisiana, with conspiracy to possess with the intent to distribute oxycodone. According to the bill of information, beginning in approximately 2012 and continuing through April 2017, IMMASCHE conspired with others to possess with the intent to distribute oxycodone, a Schedule II controlled substance. The ongoing investigation is being handled by HHS-OIG and the FBI and the prosecution is being led by DOJ Trial Attorney Christopher B. Brinson and AUSA Demetrius D. Sumner.
Michael Gaines
In the fourth case, a federal grand jury has returned an indictment charging Michael Dan GAINES, age 65, of Baker, Louisiana, with three counts of health care fraud. GAINES was a supervisory-level licensed clinical social worker at St. Gabriel Health Clinic, Inc. (St. Gabriel), a federally qualified health center in St. Gabriel, Louisiana, which contracted with the Iberville Parish School Board to provide medical services within the school district. FQHCs such as St. Gabriel could also provide services related to the diagnosis and treatment of mental illnesses, or Axis I disorders, provided that any such treatment was medically necessary, among other requirements. According to the indictment, however, St. Gabriel would provide character development seminars and other educational, character-building programs to entire classrooms of students during regular class periods, and then submit claims to Medicaid as though St. Gabriel had performed group psychotherapy, which St. Gabriel represented was medically necessary to treat the students’ purported actual Axis I disorders. According to the indictment, GAINES and others caused St. Gabriel practitioners to falsely record that students who attended the seminars had been diagnosed with Axis I disorders, and then, after each classroom visit, GAINES and others would create, complete, and certify progress notes that reiterated the previously diagnosed Axis I disorder and described the nature of the services that GAINES and others had purportedly provided as part of St. Gabriel’s treatment. According to the indictment, during the relevant time period, St. Gabriel’s claims for group psychotheraphy totaled more than $1.8 million. The indictment charges GAINES with causing the submission of numerous false claims to Medicaid for purported group psychotherapy in connection with the alleged scheme.
The case is being investigated by HHS-OIG, the Louisiana Attorney General’s Medicaid Fraud Control Unit, and the FBI. The case is being prosecuted by DOJ Trial Attorney Jared Hasten and Assistant U.S. Attorneys Jessica M.P. Thornhill and M. Patricia Jones.
Randy Lamartiniere
In another case, a federal grand jury has returned an indictment charging Randy Lamartiniere, age 59, a physician in Baton Rouge, Louisiana, with 55 counts of distribution of controlled substances (opioids and Adderall). Nine of the counts involve Lamartiniere allegedly dispensing prescriptions after his license to practice medicine was suspended by the Louisiana State Board of Medical Examiners, with the suspension including a prohibition on prescribing controlled substances. The remaining forty-six counts involve Lamartiniere dispensing prescriptions for Adderall and opioids outside the scope of his medical practice and not for a legitimate medical purpose. According to the indictment, Lamartiniere’s unlawful prescriptions subjected at least 25 patients to serious injury and addiction. The case is being investigated by the DEA—Baton Rouge District Office’s Tactical Diversion Squad, the Iberville Parish Sheriff’s Office, the West Baton Rouge Sheriff’s Office, the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, and the Louisiana State Police. The prosecution is being led by AUSA Paul Pugliese.
Hot Off The Press
In the final case, the United States Attorney announced the unsealing of an indictment in Operation Hot Off The Press, an extensive, multi-year investigation that targeted an illegal drug trafficking network in the Baton Rouge area. The indictment names a total of twenty-one (21) defendants—Byron ROBBINS, Shanard Zelron BANKS, Reuben Maurice CRAWFORD, Toddriquez Deangelo BRADLEY, Chris D. DAVIS, Michael Wayne BROWN, Jr., Le’Alan Dequan BANKS, Ricky Elvis JOSEPH, Rodrick Demond HARRIS, Charlene Latrice BROCK, Darlene Patrice BROCK, Latasha Nicole BROCK, Nakia Martell BROCK, Stanley Renard LIAS, Jr., Kentrell Dontay AUGUSTUS, Zion HURST, Tremayne DABNEY, Daryl Joseph ADAMS, Jonathan Latard BOOTH, Clinton Keith CHAFFOLD, Jr., and Marjoe SANCHEZ HOLMES—all of whom are alleged to be residents of Baton Rouge, Zachary, Baker, and River Ridge, Louisiana.
The sixty-eight (68) count indictment charges the defendants with a wide variety of offenses, such as conspiracy; distribution of heroin, furanyl fentanyl, methamphetamine, and clonazolam; distribution of counterfeit substances; possession of punches and dies for counterfeiting controlled substances; and several additional controlled substance offenses. The indictment also charges several defendants with possession of firearms by convicted felons, possessing firearms in furtherance of drug-trafficking crimes, engaging in unlawful monetary transactions, and failure to file IRS Form 8300s. The ongoing investigation is being led by Assistant U.S. Attorney Cam T. Le.
The extensive investigation was led by the DEA, working in partnership with the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, the Internal Revenue Service—Criminal Investigations Division, the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, and the Louisiana State Police, with valuable assistance from the Los Angeles County Sheriff’s Office. This operation was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged more than 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion. In Baton Rouge, since 2009, the Baton Rouge-based Medicare Fraud Strike Force has charged more than 90 defendants with health care fraud and related offenses, achieving a 95% conviction rate.
U.S. Attorney Brandon Fremin stated: “Today’s historic announcement illustrates the top to bottom commitment by those in the U.S. Department of Justice to fight healthcare fraud and the opioid epidemic. My office shares this commitment and dedication, as illustrated by the successful results we have secured with our outstanding federal, state, and local partners. The South Louisiana Healthcare Fraud Strike Force started in 2009 and continues to be an enormous success in rooting out fraudsters stealing off the backs of hard-working taxpayers, the elderly, and the infirm. I commend our prosecutors and our strike force partners – the U.S. DOJ Fraud Section, HHS-OIG, FBI, and Attorney General Landry’s Medicaid Fraud Control Unit – for their tenacity in bringing the cheats and the scammers to justice. I similarly applaud the outstanding efforts of our many federal, state, and local partners who have joined us in the ongoing battle against an opioid epidemic that has touched far too many lives in our communities. In particular, today’s announcement highlights the extraordinary efforts of the DEA in working with our office and our state and local partners to combat opioid trafficking. Score one for the good guys today. Our fight continues tomorrow.”
Special Agent-in-Charge C.J. Porter of the United States Department of Health and Human Services, Office of Inspector General’s (OIG) Dallas Regional Office, stated, “This takedown is a warning to fraudsters and to those who illegally obtain and distribute opioid drugs that their crimes will be uncovered.” “Along with our law enforcement partners, we will work to ensure that criminals who orchestrate these schemes are brought to justice.”
Eric J. Rommal, Special Agent-in-Charge of the New Orleans Division of the Federal Bureau of Investigation, stated, “Countless Americans are dependent on Medicare and Medicaid as a means to receive essential medical care. Unfortunately, there are individuals and entities who aim to abuse and exploit these programs in the name of greed and selfishness. The FBI, alongside our local, state, and federal partners will continue to aggressively pursue those who commit this fraud especially as it pertains to the ever growing abuse of opioid prescriptions.”
“Today our nation is experiencing a deadly drug epidemic made possible by violent drug traffickers and prescription drug diversion,” said DEA Assistant Special Agent in Charge Brad L. Byerley. “The arrests made over the course of these operations, include doctors, nurses, and pharmacists, as well as street-level dealers. DEA is committed to stopping the abuse of prescription pills at every level. The announcement today should signal to those in the medical community and elsewhere that we will aggressively seek to prosecute anyone who violates our drug laws. These drug traffickers will be brought to justice thanks to the cooperative success of this investigation with our federal, state and local law enforcement partners.”
Louisiana Attorney General Jeff Landry stated, “Medicaid fraud is a devastating crime that steals from our taxpayers and jeopardizes care for our vulnerable who really need assistance. Following our joint investigation with HHS-OIG and the FBI, the U.S. Attorney’s Office was able to achieve an indictment against Mr. Gaines for his alleged illegal activity. I applaud my Medicaid Fraud Control Unit for working to uncover fraudsters and U.S. Attorney Brandon Fremin for joining us to bring criminals to justice.”
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Attorney General Sessions, Secretary Azar and Other Law Enforcement Officials to Announce National Health Care Fraud and Opioid TakedownRead the Press Release
WASHINGTON – Attorney General Jeff Sessions, Department of Health and Human Services (HHS) Secretary Alex M. Azar III and other law enforcement officials will hold a press conference THURSDAY, JUNE 28, 2018, at 10:30 a.m. EDT, to announce a nation-wide health care fraud and opioid enforcement action. Attorney General Sessions and Secretary Azar will leave the press conference before conclusion. Questions may be answered by other law enforcement officials on stage following remarks.
WHO: Attorney General Jeff Sessions, Justice Department
Secretary Alex M. Azar, HHS
Deputy Director David L. Bowdich, FBI
Assistant Administrator John Martin, Drug Enforcement Administration
Inspector General Daniel R. Levinson, HHS
Acting Assistant Attorney General John P. Cronan, Justice Department’s Criminal Division
Deputy Chief Eric Hylton, IRS-Criminal Investigation
Director Alec Alexander, Centers for Medicare and Medicaid Services Center for Program Integrity
Director Dermot F. O’Reilly, Defense Criminal Investigative Service
WHAT: Announcement of significant law enforcement actionsWHEN: THURSDAY, JUNE 28, 2018 10:30 a.m. EDT
WHERE: Department of Justice
7th Floor Press Conference Room
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS
LIVESTREAMED ON JUSTICE.GOV/LIVE-STREAMNOTE: Please RSVP to [email protected] and Sarah Sutton at [email protected]. All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Media must enter the department at the visitor’s entrance on Constitution Avenue NW between 9th and 10th Streets. Media may begin arriving at 8:30 a.m. EDT and cameras must be pre-set by 9:15 a.m. EDT. Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007.
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
As Part of National Healthcare Fraud Sweep, Los Angeles-Based Prosecutors Filed 16 Cases Alleging $660 Million in Fraudulent BillsRead the Press Release
LOS ANGELES – In another massive law enforcement action targeting health care fraud, federal authorities here announced today criminal cases naming a total of 33 defendants – including doctors, pharmacists and an attorney – who have been charged in a wide-range of schemes that collectively attempted to bilk public and private insurance programs out of more than $660 million.
The defendants charged locally are among hundreds of people charged across the United States in cases that cumulatively allege approximately $2 billion in false billings. The nationwide sweep includes charges against 165 doctors, nurses and other licensed medical professionals who allegedly participated in health care fraud schemes
In the Central District of California, most of the defendants were charged for their roles in schemes to defraud health insurance programs such as Medicare. The cases allege health care fraud and kickback schemes involving surgeries, compounded drugs, home health services, Medicare Part D prescription drugs and hospice care.
“Health care fraud schemes cost Americans billions of dollars every year through higher premiums and tax money stolen from public programs, such as Medicare,” said First Assistant United States Attorney Tracy L. Wilkison. “There is an incredible array of scams, some of which involve services that are simply never provided, and some of which use complicated and sophisticated ruses to conceal illegal acts, such as bribes. Today’s announcement of the far-reaching law enforcement actions targeting a wide range of schemes and a large number of defendants demonstrates the excellent work by our law enforcement partners. Together, we will continue the hard work necessary to identify and hold accountable corrupt health care professionals and fraudsters seeking to line their pockets with your hard-earned money.”
"Health care fraud occurs quietly and behind the scenes on a regular basis in Southern California, which makes detecting it very challenging," said Paul Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "The charges we've brought in Los Angeles against physicians and pharmacists are particularly disturbing since these individuals are placed in a position of trust by victims simply trying to navigate a complicated insurance system. A great deal of investigative ability went into each one of these cases, and I'm proud that the work of our agents and law enforcement partners will ebb the flow of the destructive fraud that plagues Southern California.”
9 new defendants charged in Operation “Spinal Cap”
This week, prosecutors unsealed charges against nine new defendants being charged as part of Operation “Spinal Cap,” which targets a long-running health care fraud scheme that generated nearly $1 billion in fraudulent claims to federal government, California state, and private insurers. The scheme – which was spearheaded by Michael Drobot, the former owner of Pacific Hospital in Long Beach – involved more than $40 million in illegal kickbacks paid to doctors and other medical professionals in exchange for referring thousands of patients who received surgeries and other services at Pacific Hospital.
In the cases announced today in Operation Spinal Cap:
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Daniel Capen, 68, of Manhattan Beach, an orthopedic surgeon, has agreed to plead guilty to conspiracy and illegal kickback charges. Capen accounted for approximately $142 million of Pacific Hospital’s claims to insurers, on which the hospital was paid approximately $56 million.
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Timothy Hunt, 53, of Palos Verdes Estates, another orthopedic surgeon who referred spinal surgery patients to Capen and other doctors, has agreed to plead guilty to a conspiracy charge involving his receipt of illegal kickbacks stemming from various financial relationships with Pacific Hospital and related entities.
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George William Hammer, 65, of Palm Desert, the former chief financial officer of the physician management arm of Pacific Hospital, has agreed to plead guilty to tax charges based on the fraudulent classification of illegal kickbacks in hospital-related corporate tax filings.
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Lauren Papa, 52, of Tarzana, a chiropractor, has agreed to plead guilty to a conspiracy charge involving her receipt of illegal kickbacks to refer patients to a neurosurgeon with the understanding that the neurosurgeon would perform the surgeries at Pacific Hospital.
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Tiffany Rogers, 53, of Palos Verdes Estates, an orthopedic surgeon, was named in an indictment unsealed Wednesday in connection with receiving illegal kickbacks to refer patients for spinal surgeries at Pacific Hospital.
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Brian Carrico, 64, of Redondo Beach, a chiropractor – along with Performance Medical & Rehab Center, Inc., which was partially owned by Carrico; and One Accord Management, Inc., which Carrico wholly owned – were charged in connection with the receipt of illegal kickbacks to influence the referral of patients to Pacific Hospital. An indictment unsealed Wednesday alleges that these defendants and other co-conspirators were responsible for approximately $80 million in claims submitted to the federal workers’ compensation program and were paid approximately $56 million in connection with patients that Performance Medical referred to Pacific Hospital.
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William Parker, 64, of Redondo Beach, was charged in a separate indictment unsealed on Wednesday in connection with the same kickback scheme involving Carrico and his companies.
With the new cases being filed in Operation Spinal Cap, the fraudulent claims related to this scheme now span a 15-year period and cumulatively total more than $950 million.
The investigation into the spinal surgery kickback scheme is being conducted by the Federal Bureau of Investigation; IRS Criminal Investigation; the California Department of Insurance; and the United States Postal Service, Office of Inspector General.
“Public health insurance programs – whether a workers’ compensation program or Medicare – are not a personal pocketbook for criminals seeking to exploit government programs designed to help those who need these plans the most,” stated R. Damon Rowe, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office. “Taxpayers rightly expect individuals working in the healthcare industry that receive payments from taxpayer-funded programs to scrupulously follow the rules. IRS Criminal Investigation will continue to protect the integrity of public health insurance programs and ensure that doctors, pharmacists and medical service providers who profit from these illicit schemes are held accountable.”
The new cases were filed by Assistant United States Attorney Ashwin Janakiram of the Major Frauds Section, and will be prosecuted by AUSA Janakiram and Assistant United States Attorneys Joseph T. McNally and Scott D. Tenley of the Santa Ana Branch Office.
The nine new defendants charged in this investigation will be summoned to appear for arraignments in United States District Court in Santa Ana next month.
Investigation into compound prescription kickback scheme at TYY Consulting
An indictment unsealed on Wednesday outlines a wide-ranging conspiracy that was responsible for more than $250 million in fraudulent claims for prescriptions that were filled by compounding pharmacies in Nevada and Southern California. The indictment charges Irena Shut, 41, an attorney who resides in Hidden Hills, with paying kickbacks to two podiatrists to authorize prescriptions written on pre-printed prescription pads designed to maximize insurance payments, regardless of the medical need for an expensive compounded formulary for each “patient.”
The scheme was operated through TYY Consulting, a Las Vegas, Nevada-based outfit that used a nationwide network of marketers to refer prescriptions to TYY-affiliated pharmacies in exchange for kickbacks. As a result of the fraudulent claims, the victim health care plans paid out nearly $175 million. Shut, who worked as a marketer for TYY, received approximately $6.8 million in kickbacks, some of which was, in turn, given to the charged podiatrists.
The charged podiatrists, Domenic Signorelli, 51, of Irvine, and Robert Joseph, 51, of Huntington Beach, along with several other unnamed co-conspirator doctors, allegedly received kickbacks for “writing” the prescriptions. Once the prescriptions were filled, members of the conspiracy submitted fraudulent claims to federal, state and private insurers for the compounded drugs.
The victims of the scheme include the Department of Defense’s TRICARE program – which provides civilian health benefits for U.S Armed Forces military personnel, military retirees, and their dependents – as well as federal and state workers’ compensation programs.
In addition to paying kickbacks to the charged podiatrists and other medical professionals, TYY induced other doctors to participate in the scheme by offering prostitutes, fancy meals, and expensive event tickets, according to the indictment.
This case is being investigated by the FBI and the United State Postal Service, Office of Inspector General (USPS-OIG).
USPS-OIG Special Agent in Charge Brian Washington stated, “Today’s indictments should send a clear message to all health care providers that health care fraud is a federal crime that carries serious consequences and will not be tolerated. The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service.”
This case is being prosecuted by Assistant United States Attorney Ashwin Janakiram of the Major Frauds Section.
Shut, Signorelli and Joseph will be directed to appear for arraignments next month in federal court in Los Angeles.
Distribution of prescription opioids
Angela Gillespie-Shelton, 48, of Houston, was arrested Wednesday in her hometown after being indicted last week in Los Angeles on federal drug trafficking and money laundering charges. The six-count indictment alleges that Gillespie-Shelton was one of the leaders of a narcotics trafficking ring based in Los Angeles that sold illegal prescriptions for cash and obtained opioids and other drugs that were shipped from Los Angeles to Texas for sale on the black market.
Gillespie-Shelton allegedly laundered over $1 million of the black market cash proceeds through numerous accounts both to conceal the proceeds and to further the narcotics trafficking conspiracy, including by paying rent for the clinic where the illegal prescriptions were written. The indictment further alleges that Gillespie-Shelton paid more than $200,000 to one of the doctors who wrote the illegal prescriptions.
The doctor, Madhu Garg and numerous other co-conspirators have already been convicted in this matter.
The case against Gillespie-Shelton is being investigated by the Drug Enforcement Administration, IRS Criminal Investigation, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the California Department of Justice, and the Texas Department of Public Safety.
The prosecution of Gillespie-Shelton is being handled by Assistant United States Attorney Michael G. Freedman of the Organized Crime Drug Enforcement Task Force.
SoCal residents charged in compound drug scheme
A group of pharmacists, doctors and marketers worked together to defraud the TRICARE program by submitting more than $40 million in claims for medically unnecessary compounded medications prescriptions, according to an indictment unsealed Wednesday that also alleges AMPLAN, the Amtrak employee health benefit plan, was victimized.
Marketers that participated in the scheme solicited beneficiaries of the health plans through misleading cold calls that promised free compounded medications, as well as through “wellness” programs that included gym memberships, fitness tracking devices and supplements. The marketers used sensitive personal and insurance information gathered from the beneficiaries to generate fraudulent prescriptions for compounded medications.
The marketers paid doctors to authorize prescriptions by misleading the doctors into believing that the marketers operated legitimate telemedicine businesses or by paying the doctors to write the prescriptions.
The six defendants charged in this case are:
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Thu Van Le, aka Tony Le, 40, of Yorba Linda, a licensed pharmacist and owner of TC Medical Pharmacy (TCMP) in Pomona and a silent owner of Mars Hill Pharmacy (MHP) in North Carolina;
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Chau Nguyen, aka Cindy Le, 36, of Yorba Linda, a licensed pharmacist and co-operator of TCMP;
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Truong Giang Le, 31, of Pomona, a co-operator of MHP;
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Chan Van Le, aka Kevin Le, 39, of Chino, the manager of MHP;
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Nha Le Tuan Truong, 36, of Fountain Valley, a pharmacist who laundered fraudulently obtained proceeds through a charity; and
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Jeffery Lawrence, 55, of Los Angeles, the owner of Wellytics Inc., an entity through which he fraudulently solicited insurance information from beneficiaries of AMPLAN.
Through TCMP, the defendants submitted approximately $13 million in claims, and TRICARE paid reimbursements of more than $10 million, according to the indictment. Through MHP, the defendants submitted approximately $28 million in claims, and TRICARE paid more than $21 million. Nha Le Tuan Truong allegedly laundered more than $1 million in Tricare reimbursements through a charitable foundation.
Lawrence allegedly solicited Amtrak employees to participate in a wellness program that Lawrence claimed would be reimbursement by AMPLAN. Several employees gave Lawrence their AMPLAN beneficiary information, which he then used to procure compounded medications prescriptions submitted to TCMP in exchange for more than $600,000 in kickbacks.
“These cases reinforce our commitment and determination to pursue those who would defraud Amtrak’s health care programs and target such vulnerable populations,” said Amtrak Inspector General Tom Howard. “Our agents will continue to hold perpetrators accountable and to protect Amtrak, its employees and their dependents.”
This case is being investigated by the Defense Criminal Investigative Service, the FBI, IRS Criminal Investigation, Amtrak’s Office of Inspector General, the Office of Personnel Management’s Office of Inspector General, the Department of Labor’s Office of Inspector General, and the California Department of Insurance.
This case is being prosecuted by Assistant United States Attorneys Mark Aveis, Paul G. Stern and Cassie Palmer of the Major Frauds Section.
The six defendants charged in this case were arrested on Tuesday and each pleaded not guilty at their arraignments in United States District Court. A trial in this case was scheduled for August 21 in Santa Ana.
Medicare Fraud Strike Force Cases
Seven of the cases announced this week were filed by DOJ trial attorneys working in Los Angeles under the aegis of the Medicare Fraud Strike Force in conjunction with the United States Attorney’s Office. Strike Force operations are part of a joint initiative between the Department of Justice and the U.S. Department of Health & Human Services to prevent and deter fraud and enforce current anti-fraud laws around the country.
“We will not tolerate criminals stealing precious dollars from our federal health care programs,” said Christian J. Schrank, Special Agent in Charge for the U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG). “Today’s announcement shows our commitment to working with our state and federal law enforcement partners to swiftly investigate these fraud schemes and bring criminals to justice.”
Strike Force prosecutors unsealed seven criminal cases this week.
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Seven people were named in an indictment that alleges multiple health care fraud conspiracies in which the owner of two pharmacies submitted claims to Medicare and Medi-Cal for expensive, brand-name prescription drugs that were never dispensed to patients. Rather, the drugs were provided to co-conspirators to sell to third parties, thereby generating a profit from each prescription drug twice – first from the reimbursement from Medicare or Medi-Cal, and second from the sale of the prescription drugs diverted to the black market.
The defendants named in the indictment are:
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Irina Sadovsky, 48, of Woodland Hills, the owner and pharmacist-in-charge of Five Star and Ultimate pharmacies;
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Yigal Keren, 36, of Los Angeles, who owns and operates transitional housing centers;
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Mikhail Khanukhov, 38, of Sherman Oaks, the manager at Five Star and Ultimate pharmacies;
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Shahriar “Michael” Kalantari, 51, of Los Angeles, who was a marketer;
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Andrei Sotnikov, 47, of Northridge, a marketer;
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Nida Rosales, 62, of Bellflower, a marketer; and
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Juan Carlos Enriquez, 31, of Van Nuys, a pharmacy technician and marketer
The indictment alleges that Sadovsky paid kickbacks to marketers in exchange for patient referrals from facilities that treated Medicare and/or Medi-Cal patients. Sadovsky also paid kickbacks directly to Medicare beneficiaries in exchange for filling their prescriptions at Five Star Pharmacy.
Five Star and Ultimate Pharmacies were collectively paid more than $54 million by Medicare and Medi-Cal between January 2014 and September 2017.
This matter is being investigated by the FBI and HHS-OIG, and the case is being prosecuted by DOJ Trial Attorney Alexis Gregorian.
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Armen Pogossian, 69, of Pasadena, the owner of L.A. Nova Pharmacy, was indicted for his role in the submission of $2.9 million in claims to Medicare Part D sponsors for prescription drugs that were never dispensed to Medicare beneficiaries; indeed, they were never even ordered from a wholesaler. The five-count indictment alleges that Pogossian attempted to conceal the fraudulent claims from auditors through the use of fake invoices that purported to show the drugs had been obtained from wholesalers and thus were in the pharmacy’s inventory. This case is being investigated by the FBI and HHS-OIG and is being prosecuted by DOJ Trial Attorney Alexis Gregorian.
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Tamar Tatarian, 37, of Pasadena, the owner of Akhtamar Pharmacy, was named in a three-count indictment that alleges she participated in a scheme that submitted $1.3 million in claims to Medicare Part D sponsors for prescription drugs that were never ordered from wholesalers, and thus never dispensed to Medicare beneficiaries, which Tatarian attempted to conceal from auditors through the use of fake invoices. This case is being investigated by the FBI and HHS-OIG and is being prosecuted by DOJ Trial Attorney Alexis Gregorian.
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Ruben Filian, 33, of Glendale, a physician’s assistant, was indicted for allegedly participating in a $58 million scheme to certify patients to home health care in exchange for illegal kickbacks. Filian is charged with one count of conspiracy to commit health care fraud, four counts of health care fraud, one count of conspiracy to pay and receive kickbacks, five counts of paying and receiving kickbacks, and three counts of money laundering. This case is being investigated by the FBI and HHS-OIG and is being prosecuted by DOJ Trial Attorney Emily Culbertson.
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Dr. Stephen Levine, 74, of North Hollywood, a referring physician to home health agencies, was named in a criminal information for his role in the $58 million fraud scheme that also involved Filian. Levine allegedly certified numerous beneficiaries for home health services, without regard to whether the beneficiaries were homebound or whether the services were medically necessary. Levine was paid cash kickbacks for his referrals. Using Levine’s referrals as support, owners and operators at multiple home health agencies billed Medicare for home health services, and Medicare suffered losses of at least $6.5 million. This case is being investigated by the FBI and HHS-OIG and is being prosecuted by DOJ Trial Attorney Emily Culbertson.
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Sarkis Manukyan, 76, of Panorama City, and Eduard Terosipyan, 67, of Montebello, both of whom are managers of medical clinics in Los Angeles and Burbank, were indicted in a $1.9 million Medicare fraud involving kickbacks and outpatient physician services not rendered or not medically necessary. This matter is being investigated by the FBI, the California Department of Justice and the Los Angeles Sheriff’s Department. This case is being prosecuted by DOJ Trial Attorney Niall O’Donnell.
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Lucille Lam, 54, of Burbank, co-owner and managing employee of Bliss Hospice, was charged in a criminal information for allegedly participating in a scheme to pay kickbacks in exchange for Medicare beneficiaries referred to Bliss for hospice services. As part of the scheme, Lam and the co-owners of the hospice falsely categorized the illegal kickbacks as payroll expenses. Based on the referrals that Lam and her co-conspirators obtained through illegal kickbacks, Bliss submitted claims to Medicare and was paid approximately $2.4 million. This matter is being investigated by the FBI, HHS-OIG, and the California Department of Justice. This case is being prosecuted by DOJ Trial Attorney Claire Yan.
Indictments and criminal informations contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Armed Felon Sentenced on Drug and Gun ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Willie James Tunstall, 36, of Spanish Fort, Alabama, was sentenced this morning to 100 months’ imprisonment on gun and drug charges. Court documents show that Tunstall was involved in the distribution of crack cocaine and cocaine powder, and that he was also a convicted felon who was caught with a gun by law enforcement officers on one occasion. Investigators also conducted some controlled purchases of drugs from Tunstall, and when they attempted to arrest him on those charges, he led officers on a high speed chase down Highway 98 and into the Daphmont community in Daphne. Tunstall abandoned his vehicle and attempted to hide in an adjacent wooded area, but officers located him and some cocaine and crack cocaine he attempted to conceal in the underbrush. The investigation reflected that Tunstall was involved in the distribution of cocaine, crack cocaine, marijuana, Xanax, Lortab, codeine syrup and methamphetamine ice. Tunstall pled guilty to possession with intent to distribute crack cocaine and felon in possession of a firearm in January of 2018.
United States District Court Judge William Steele sentenced Tunstall to 100 months’ imprisonment on each count, with the sentences to run concurrently, noting that Tunstall had significant criminal history. Tunstall was also ordered to undergo drug and alcohol treatment and counseling while serving his sentence. The judge also ordered that Tunstall serve a six-year term of supervised release when he is discharged from his custody sentence, during which he will undergo further drug and alcohol abuse treatment. Williams was also ordered to pay $200 in mandatory special assessments, but no fine was imposed.
The case was investigated by the Daphne Police Department, the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the FBI Safe Streets Task Force. It was prosecuted in the United States Attorney’s Office by Assistant United Sates Attorney Gloria Bedwell.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Alabama at http://www.justice.gov/usao/als/
Arkansas Man Sentenced to over 9 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Issac Johnson, age 25, of Royal, Arkansas was sentenced today to 110 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, In February of 2016, law enforcement officers arranged and conducted a controlled delivery of methamphetamine between an undercover officer and Johnson in the Western District of Arkansas. After the controlled delivery, Johnson was arrested and taken into custody. During the search of his person, officers located a .380 caliber pistol. The substance delivered was sent to the Arkansas State Crime lab where it tested positive for methamphetamine, with an actual weight of 178 grams.
Johnson was indicted in October 2016 and pleaded guilty in November 2017.
This case was investigated by the Arkansas State Police and the Hot Springs Police Department. Assistant United States Attorney David Harris prosecuted this case for the United States.
Akron man indicted on firearms and methamphetamine chargesRead the Press Release
An Akron man was indicted on federal drug and firearms charges.
A federal grand jury returned a three-count indictment charging Anthony D. Gelfo, 32, with possession with intent to distribute a controlled substance, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
The indictment alleges that on or about March 8, 2017, Gelfo did knowingly and intentionally possess with intent to distribute and to distribute at least five grams of a mixture and substance containing a detectable amount of methamphetamine.
The indictment further alleges that on or about March 8, 2017, Gelfo knowingly possessed a Walther pistol, model P22, .22 caliber, serial number obliterated, in furtherance of a drug trafficking crime.
The indictment further alleges that on or about March 8, 2017, Gelfo, having been previously convicted of rape in 2004 in the Medina County Court of Common Pleas, did knowingly possess in and affect interstate and foreign commerce, a firearm, specifically, a Walther pistol.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
27 June 2018
Worcester Man Sentenced to More Than 11 Years in Federal Prison for Sex TraffickingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MOHAMED H. ABDI, also known as “Vic,” 26, of Worcester, Massachusetts, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 135 months of imprisonment, followed by five years of supervised release, for sex trafficking.
According to court documents and statements made in court, between late December 2016 and January 5, 2017, ABDI and his girlfriend used threats, force and coercion to cause a female victim to engage in prostitution. ABDI and his girlfriend advertised the victim’s prostitution services on Backpage.com and other websites, rented Connecticut hotel rooms where the victim engaged in prostitution, and transported the victim to engage in sexual acts with customers at the hotels and private residences in Connecticut and elsewhere. In addition, ABDI provided the victim with heroin, but withheld the drug from the victim until after she provided sexual services to additional customers. ABDI and his girlfriend also warned the victim not to contact police and made threats against the victim and her child.
ABDI has been detained since his arrest on related state charges on January 5, 2017. On April 4, 2018, he pleaded guilty to one count of conspiracy to commit sex trafficking by force, fraud or coercion.
As a condition of his supervised release, ABDI will be required to register as a sex offender.
This matter was investigated by the Connecticut Human Trafficking Task Force, Federal Bureau of Investigation and Connecticut State Police, with the assistance of the Wethersfield Police Department and the Worcester Police Department. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
U.S. Attorney Durham thanked the State’s Attorney for the Judicial District of Tolland and the Worcester County District Attorney’s Office for their cooperation and assistance in the prosecution of this matter.
Worcester Man Pleads Guilty to Gun ChargeRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday in federal court in Boston to being a felon in possession of a firearm.
Franklin Safo-Agyare, 25, pleaded guilty to being a felon in possession of a firearm and ammunition. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Sept. 26, 2018.
Following a two-year investigation, Safo-Agyare and eight others were charged in January 2018 in connection with illegal activity within and near the Mildred C. Hailey Apartments in Jamaica Plain, formerly known as the Bromley Heath Housing Development. On June 6, 2018, Safo-Agyare, who was previously convicted of a crime punishable by more than one year in prison, sold a Jennings Model J22 .22 caliber pistol containing five rounds of ammunition to another individual in the vicinity of the housing development.
The investigation and arrests sought to reduce violence and improve the quality of life in and around the Mildred C. Hailey Apartments for residents by removing individuals who engaged in criminal activity. Safo-Agyare is the fifth defendant to plead guilty in this case.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Verbena Man Sentenced to Life in Prison for Federal Drug Trafficking and Firearms CrimesRead the Press Release
Montgomery, Ala. – - James Calvin Talley, Jr., 37, of Verbena, Alabama, was sentenced to life in prison for possession with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute marijuana, using a phone to facilitate a drug crime, and being a felon in possession of a firearm, announced U.S. Attorney Louis Franklin. Talley’s conviction for distribution of methamphetamine carried a mandatory life sentence because he had two prior felony drug convictions. There is no parole in the federal system.
Evidence presented at trial showed that on December 3, 2016, a drug courier delivered more than 100 pounds of marijuana to Talley’s home in Verbena. When the courier arrived at Talley's home, he got out of the car and Talley drove the car alone to another house in Marbury, Alabama. There, Talley backed the car up to the front door of the house and opened the trunk. Law enforcement, who had knowledge of the drug delivery, followed Talley from his home to the house in Marbury. Talley ran into the house when law enforcement arrived but was arrested as he was running out of the backdoor. Inside the house, which belonged to co-defendant Richie Dale Murphy, law enforcement officers found two pistols, more than 3 pounds of methamphetamine, over $20,000 in cash, marijuana, and drug paraphernalia used for packaging and selling narcotics.
Following the search at Murphy's house, law enforcement searched Talley's home and found two more pistols, along with more than $50,000 in cash, a currency counter, drug ledgers and receipts for wire transfers of large amounts of money.
Murphy, who previously pled guilty to possession with intent to distribute marijuana, possession with intent to distribute methamphetamine, and possessing a firearm in furtherance of a drug trafficking crime, testified at trial that he and Talley were in business together, and that Talley used Murphy's home as his stash house for marijuana and methamphetamine. Murphy is facing at least 15 years in prison for his charges. A date for his sentencing has not yet been set.
The case was investigated by the Drug Enforcement Administration (DEA), the Autauga County Sheriff’s Office, and the Chilton County Sheriff’s Office. The Alabama Attorney General’s Office, Millbrook Police Department, Montgomery Police Department, and Prattville Police Department all assisted with this case. Assistant U.S. Attorneys John Geer and Kevin Davidson prosecuted the case.
VA Fraudster Pleads Guilty After Falsely Claiming Combat Service in Order to Get VA BenefitsRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Keith R. Hudson, 70, from Charleston, South Carolina, pled guilty in federal court before United States District Court Judge Richard M. Gergel. He had been indicted for defrauding the VA by receiving $197,237 in benefits after falsely claiming to be a military veteran of combat in Vietnam. This is a violation of Title 18, United States Code, § 1347(a)(1). He faces a potential ten year sentence.
Court documents presented during the hearing established that in 2015, Mr. Hudson applied to the VA in Charleston for benefits. He used a falsified form from the Department of Defense, called a DD-214, (“Report of Separation from Active Duty”) which is a Department of Defense form given to members of the military who are separating from service. In the form, he said that was a veteran of the war in Vietnam. He represented that he was in the Navy and saw combat as a medic, suffering wounds and other trauma. He claimed that he served from August 1, 1967 through October 31, 1971 and said that he received two Purple Hearts.
The investigation conducted by the Veterans Affairs Office of Inspector General (OIG) showed that this DD-214 was forged and false. For instance, Mr. Hudson’s rank was listed as HN and E-4 (in the United States Navy, HN is actually the equivalent of E-3). In the awards section, it stated that he received a Combat Medic Badge. However, this is an award which is only given for service in the United States Army. It also did not list the proper citation for a Purple Heart. And the form stated Mr. Hudson received the Fleet Marine Force Medal with Marine Device. There is no such medal. It also had a stamp from the Alaska State Defense Force, which is suspicious as that group is not an official military organization, being comprised of volunteers. Additionally, the service branches do not permit their records to be combined with or loaned to other entities, including National Guard units. And, the typeset of the Social Security number on the DD-214 was different from the rest of the document.
In fact, Mr. Hudson never was in the military. The investigation conclusively showed that there were no records in the National Personnel Records Center in St Louis, Missouri for him from any branch of service.
Additionally, employment records for him from 1967 through 1971 established that he worked at a variety of jobs in New York and in Maine. In two of them, he applied for employment and was fingerprinted. These fingerprints were still on file and matched his prints. As such, he was in the United States during the years 1967 through 1971. Therefore, Mr. Hudson was never in the United States Navy nor did he ever see combat in Vietnam.
The investigation also showed that he had previously been prosecuted for the same scheme using the same DD-214 form in 2005 in Connecticut, where he had been placed in a pretrial diversionary program.
United States Attorney Lydon said that these cases are very important for our country and for our community. “This is a particularly awful type of white collar crime. Veteran health benefits are for those who served our nation in the military. The VA has limited numbers of physicians and resources. There is not much to spare. Every dollar and every minute of time stolen from the VA is something that is stolen from a veteran. VA fraud is on the increase and so we are grateful for the work of the Veterans Affairs Office of Inspector General for their investigative work on the case.”
Statistics bear out what the United States Attorney said. Between April of 2017 and October of 2017 alone, the VA Office of Investigations made 80 arrests, and recovered $2.9 million in restitution, fines and penalties relating to things like VA health-care benefits fraud. This is more than twice the amount recovered in the same period a decade ago.
The Resident Agent in Charge for the IG in Asheville is G. Scott Bailey, who said “we aggressively investigate cases where individuals defraud the VA and take benefits meant for our nation’s veterans.” He noted that the VA Office of Inspector General has a hotline, staffed weekdays between 8:30 a.m. .and 2 p.m. Eastern time, at 1-800-488-8244. He said “If anyone has any knowledge of fraud going on at the VA, please call. We’ll investigate.”
Assistant United States Attorney Sean Kittrell of the Charleston office prosecuted the case.
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U.S. Attorney’s Office Reaches Out to Local Youth Under Project EJECTRead the Press Release
Jackson, Miss - The United States Attorney’s Office for the Southern District of Mississippi is kicking off the prevention piece of Project EJECT with various speaking engagements, interactions and engaging dialogue with our local youth, beginning with the Boys and Girls Club of Jackson at 4350 Raymond Road, on Thursday, June 28, 2018 at 11:15 a.m.
The U.S. Attorney’s Office will continue its prevention work under Project EJECT, speaking to the local youth in Jackson, on the following dates and locations:
• July 23, 2018, Boys and Girls Club of Jackson, 1450 W. Capitol Street
• July 26, 2018, Boys and Girls Club of Jackson, 470 Sykes Road
As a part of its prevention efforts under Project EJECT, the U.S. Attorney’s Office is continuing the school outreach program started by former U.S. Attorney Greg Davis entitled the L.E.A.D. Program ("Legal Enrichment and Decision Making"). The L.E.A.D. program is an effort to educate and inform students about the value of an education, the relationship between education and their future, as well as the long term consequences of gun violence and criminal activity. Under Project EJECT, the L.E.A.D. Program will provide students with a roadmap to success through setting goals, staying focused, avoiding negative influences, giving back to the community, and bouncing back after disappointment.
"Prosecuting crime alone is not enough. We must do everything we can to prevent crime before it happens. And one way to prevent crime is to reach out to our young people and let them know we care about them, that there is hope and there are much better alternatives to crime. I want to thank former U.S. Attorney Greg Davis for developing the L.E.A.D. program and for his work with the youth. I think it is only fitting that we begin our prevention work where former U.S. Attorney Dunn Lampton poured a lot of his time and resources into – the Boys and Girls Club of Jackson. The foundations set by these men and many others have laid the groundwork for being able to make our communities and citizens in Jackson and throughout the state safer and more secure," said U.S. Attorney Hurst.
The U.S. Attorney’s Office expects to reach over 400 students in the metro area during the Summer of 2018. The L.E.A.D. program will continue into the school year as well.
Project EJECT is an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney’s Holds Seminar Focusing on Medication Assisted Treatment and the Americans with Disabilities ActRead the Press Release
United States Attorney Duane A. Evans announced today that the U.S. Attorney’s Office for the Eastern District of Louisiana organized and hosted a seminar for local sheriffs and drug-court judges on the availability of medication-assisted treatment (MAT) as means to combat the crisis of opioid addiction in local prison populations and the larger community. “It is well beyond reasonable dispute that opioid proliferation and addiction are at crisis levels both locally and nationwide,” U.S. Attorney Evans stated. He continued: “Combating this crisis with all available resources is a top DOJ priority.”
Representatives of six parishes in the Eastern District of Louisiana attended the June 27th seminar, which opened with a keynote address from Dr. John Morrison, Medical Director for the Louisiana Department of Public Safety and Corrections. AUSA David Howard Sinkman, the U.S. Attorney’s civil-rights coordinator, next provided an overview of the interaction between the Americans with Disabilities Act (ADA) and the use of MAT in correctional facilities, specialty courts, and other public entities. A panel discussion on the practical aspects of MAT use in prison populations featured testimonials from national experts Dr. Josiah Rich, a professor from Brown University, Dr. Jonathan Giftos, the Clinical Director of Substance Use Treatment at the Rikers Island Correctional Facility in New York, and officials from the Philadelphia Department of Prisons.
A panel of state officials next addressed the use of MAT locally. Featured state officials included: Dr. Janice Petersen from the Louisiana Department of Health and Hospitals, Gary Young and Tracy Falgout from the Louisiana State Penitentiary at Angola, and Kerry Lentini, the Director of the Louisiana Drug Court Program. A final address from Ms. Tara Kunkel, Senior Drug Policy Advisor from the Department of Justice, Bureau of Justice Assistance, highlighted potential grant and funding opportunities available to local providers to institute MAT programs in their respective facilities and courts. An open question-and-answer session concluded the event.
U.S. Attorney Evans commented on the interest in the seminar:
A collaborative, multi-faceted approach is necessary to attack opioid addiction from both supply and demand angles. We set an ambitious agenda to cover medical, legal, practical, and financial aspects of MAT in prisons, but found receptive local partners ready to implement new ideas and strategies.
The United States Attorney’s Office anticipates holding future meetings and possibly implementing a working group to further pursue this initiative. Assistant United States Attorneys David Howard Sinkman and Sharon Smith organized the event.
U.S. Attorney Jessie K. Liu to Host Youth Summit on June 29 at Friendship Collegiate Academy in Northeast WashingtonRead the Press Release
WASHINGTON - U.S. Attorney Jessie K. Liu, the U.S. Attorney’s Office for the District of Columbia, and numerous local and federal law enforcement agencies and community-based organizations are teaming up to host the Eighth Annual “Breaking the Silence on Youth Violence Youth Summit” on Friday, June 29, 2018, at Friendship Collegiate Academy.
The focuses this year will be gun violence, sexual assault, and bullying prevention. The event will feature dynamic speakers, entertainment, and invaluable information and resources.
For the past seven years, the U.S. Attorney’s Office has joined its many partners to host the Youth Summit. The Youth Summits have kicked off with plenary sessions that highlighted subjects such as the causes and consequences of youth violence, challenged youth participants to make better decisions, and emphasized the importance of cooperating with law enforcement. The plenary sessions have been followed by breakout sessions that have focused on public safety issues facing our youth, such as teen domestic violence, heroin and opiate abuse, and human trafficking. The summits have concluded with an educational entertainment segment, which reinforced the positive messages of the Youth Summit.
Additionally, the summits have included a youth informational fair in which numerous non-profits have provided information on youth development programs, mentoring programs, and educational youth activities. More than 500 youths participated in the event last year, and thousands have participated in the activities since the first event in 2011.
The eighth annual “Breaking the Silence on Youth Violence Summit” will be held from 9 a.m. to 3 p.m., east of the Anacostia River, at Friendship Collegiate Public Charter Senior High School, 4095 Minnesota Avenue NE. The location is directly across the street from the Minnesota Avenue Metro station.
The Summit is a part of the Department of Justice’s Project Safe Neighborhood Program, a nationwide effort to reduce violent crime.
The many collaborative partners include East of the River Family Collaborative, Collaborative Solutions for Communities, Men Can Stop Rape, the District of Columbia Department of Parks and Recreation, Hillcrest Children and Family Services, Howard University Hospital, the District of Columbia Office of Neighborhood Safety and Engagement, the Metropolitan Police Department, the Mayor Marion S. Barry Summer Youth Employment Program, the Court Services and Offender Supervision Agency, Go-Go Fitness and a Foundation for a Drug-Free World. People with questions may contact Executive Assistant U.S. Attorney for External Affairs, Wendy Pohlhaus at (202)-252-6930 or [email protected].
Two Aliens Indicted on Illegal Reentry ChargesRead the Press Release
WILMINGTON – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Wilmington has returned indictments charging RICARDO NOEL AYALA-AMAYA, age 32, of Honduras, and JOSE ANTONIO DANIA-MALDONADO, age 35, of the Dominican Republic, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, AYALA-AMAYA, found in Wake County and previously deported three times, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
DANIA-MALDONADO is alleged to have been deported from the United States subsequent to an aggravated felony conviction (conspiracy to sell and deliver a schedule II controlled substance). If convicted, DANIA-MALDONADO, found in Wake County, would face maximum penalties of 20 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations.
Twenty-five people indicted for their roles in conspiracy to traffic drugs in Elyria, including fentanyl, carfentanil, heroin, cocaine, crack cocaine and fentanyl analogues pressed to look like PercocetRead the Press Release
Twenty-five people were indicted in federal court for their roles in a conspiracy to traffic drugs in Elyria and the surrounding area, including fentanyl, carfentanil, heroin, cocaine, crack cocaine and fentanyl analogues pressed to look like pills of Percocet.
Everyone indicted is from Elyria unless otherwise noted. They are: Troy Davis, 37; Reginald Jenkins, 40; Stephen Phares, 25; Deondre Vaughn, 35, of Cleveland; Jarell Davis, 29, of Cuyahoga Falls; Leon Lamont Washington, 42; Raymond Trenell Oliver, 43; Anthony Rodgers, 35, of Cleveland; Elonzo Davis, 44; Quadron Johnson, 31; William Solomon, 43; Malik Hobson, 38; Johnnie Lawrence, 38; Richard Fluker, 59; Troy Martin, 37, of Cleveland; Myron L. Pryor, 47, of Cleveland; Alvin Fennell, 48,; Terrance Williams, 25,; Aaron White, 22,; Alkeem Fennell, 25; Cassandra Studebaker, 25,; Courtney Warrens, 25; Tommie Richardson, 27; Arthur Solomon, 45, and Mickey Tramaine Wright, 25.
According to the 59-count indictment unsealed in U.S. District Court in Cleveland:
Troy Davis traveled to South Carolina to buy from Jenkins pills that were laced with furanyl fentanyl and pressed to look like 30 mg Percocet pills. Davis brought the pills to Ohio, where he sold them to Phares and others.
Troy Davis sold cocaine, crack cocaine, heroin, fentanyl and various fentanyl analogues to other drug dealers and customers in the Elyria area. Troy and Elonzo Davis, who are uncle and nephew, were supplied by Vaughn, Jarell Davis, Washington, Oliver and Rogers. The Davis’ then resold the drugs to Lawrence, White, Pryor, Hobson and others.
The Davis’ and others used homes in Elyria to store and sell the drugs. They also used numerous vehicles, including rental cars, as well as multiple pre-paid cellular telephones, to facilitate the shipment and sale of drugs.
“These defendants brought lots of deadly drugs into Elyria, including carfentanil and fentanyl,” U.S. Attorney Justin Herdman said. “Law enforcement worked together to dismantle this organization and the lives of countless Elyria residents will be better because of those efforts.”
“Today’s indictment and arrests shut off a pipeline of dangerous drugs that have killed so many of our friends and neighbors and caused pain and destruction in our community,” said DEA Special Agent in Charge Timothy Plancon. “This case is the result of a long joint investigation between DEA, Elyria police, the Lorain County HIDTA and many others. DEA will continue to work to reduce the supply of illegal narcotics hitting our streets.”
Elyria Police Chief Duane Whitely said: “The events today are the culmination of nine months of work aimed at attacking the drug trade in Elyria and surrounding areas. This investigation was initiated by the Elyria Police Narcotics Unit who partnered with the DEA Cleveland’s Office and the Lorain HIDTA. We are grateful for the excellent working relationship between all the Lorain County law enforcement agencies. We will continue working together to attack the illegal drug trade throughout Lorain County.”
“Through the cooperation of local, state and federal law enforcement agencies working together to share their resources, intelligence and manpower we can aggressively investigate drug trafficking organizations,” said Lorain County Sheriff Phil Stammitti. “These organizations from the street level dealer to the main source suppliers are drastically having a devastating effect on our communities. In conjunction with the newly formed Lorain County HIDTA, we are proud of all the units that work together to aggressively investigate and pursue these drug trafficking organizations.”
Ohio High Intensity Drug Trafficking Area Program Executive Director Derek Siegle said: “This case is an example of HIDTA’s ability to help coordinate investigations that span several city, county and state boundaries. We are building off our successes in other parts of Ohio to help make Lorain County and the entire region safer.”
Lorain Police Capt. Roger Watkins said: “We have always been appreciative of the level of cooperation between the local, State, and Federal law enforcement agencies in this area in combating the drug issues that plague our communities.”
“Opioids are killing people every single day in Ohio, and I firmly believe that those trafficking drugs into our communities have no regard for human life,” said Attorney General DeWine. “This case is yet another example of our commitment to stopping drug traffickers who are fueling the opioid epidemic, and I applaud the state, local, and federal authorities who aggressively worked on this case.”
This case was investigated by the DEA’s Cleveland office, Elyria Police Department, the Lorain County HIDTA -- which is comprised of the Sheriff’s Lorain County Drug Task Force, DEA, Ohio Adult Patrol Authority, Ohio State Highway Patrol, Avon Lake Police Department, Avon Police Department, Amherst Police Department, Oberlin Police Department and Vermilion Police Department -- Lorain Police Department, Lorain Prosecutor’s Office, the Ohio Bureau of Criminal Investigation and U.S. Marshal Service. It is being prosecuted by Assistant U.S. Attorneys Marisa T. Darden and Vasile C. Katsaros.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Twenty Members of Reno Drug Trafficking and Firearms Organization Indicted for Conspiracy to Distribute Large Amounts of Methamphetamine, Cocaine, and Heroin and Firearms OffensesRead the Press Release
RENO, Nev. – A federal grand jury returned four-related indictments today charging 20 alleged members of a Reno drug trafficking and firearms organization for their roles in a large-scale drug distribution ring that operated in the Reno area. Seventeen defendants are charged with conspiracy to possess and distribute methamphetamine, cocaine, and heroin, and three defendants are charged with firearms-related offenses.
United States Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas office made the announcement.
The 17 defendants charged for their alleged roles in the drug conspiracy are Jose Valentin Mora, aka Cholo and Magic, 36; Sandy Diaz Tavares, 33; Jose Vega, aka Panda, 33; Angel Diaz, 21; Javier Chavez, 58; Shawn Curl, 35; Marcos Hernandez, aka Bigotes, 58; Roberto Mora-Mora, 52; Juana Baca, aka Sneaky, 44; Elizabeth Reyes-Delacerda, aka Chavela, 26; Richard Rossall, aka Monopoly, 52; Ciara Hernandez, 18; Marco Antonio Ramirez, aka Anthony, 35; Kelsea Barbara Riley, 26; Leon DeJesus Munera, 27; and Jorge Ayala-Chavez, 43, all of Reno, Nevada; and Francisco Meza Recio, 31, of Simi Valley, California. Each defendant faces the maximum statutory penalty of life in prison and a fine of $10,000,000.
According to allegations contained in the 14-count drug conspiracy indictment and criminal complaint, from January 25, 2018 to June 14, 2018, the defendants conspired with each other to possess and distribute large amounts of methamphetamine, cocaine, and heroin in Reno and elsewhere. On several occasions, Jose Valentin Mora, the alleged leader, sold the drugs to his co-conspirators who would then resell the drugs in Reno. To date, more than 18 pounds of methamphetamine has been seized from this drug conspiracy. This amount has an approximate street value of over $300,000.
The three-related indictments charge Jose Valentin Mora, Jose Vega, Jose Mora-Silva, Dagoberto Mora-Silva, and Alberto Acosta-Macias with firearms offenses. Felons Jose Mora and Jose Vega are charged with unlawful possession of a firearm after having a prior felony conviction in Nevada. Jose Mora-Silva is charged with unlawful possession of a firearm while being an alien unlawfully in the United States. Dagoberto Mora-Silva is charged with aiding and abetting the possession of a firearm by prohibited persons Jose Mora and Jose Mora-Silva. Jose Mora and Acosta-Macias are charged with possession of a stolen .22 caliber Marlin rifle. Each defendant faces the maximum statutory penalty of 10 years in prison and a fine of $250,000.
“As alleged, these defendants trafficked large amounts of methamphetamine, cocaine, and heroin in Reno,” said U.S. Attorney Dayle Elieson. “Today’s indictments are the latest example of our steadfast commitment to fighting drug trafficking and reducing violent crime in Nevada’s communities. Together with our law enforcement partners we are committed to protecting Nevadans and making our communities safe.”
“Law enforcement partnerships made this operation a success,” said Special Agent in Charge Aaron C. Rouse. “Drug trafficking organizations bring gun violence to our neighborhoods and take advantage of the addiction problem our community and our nation faces. Working together with our partners enabled us to identify key elements of the organization and effectively shut it down. I am very proud of the hard work of the Northern Nevada Safe Street’s Task Force. As a result of this large scale operation, a well-organized drug trafficking operation has effectively been dismantled, and the community of Reno is safer.”
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
These charges stem from an investigation by the FBI’s Safe Streets Task Force with significant assistance by federal, state, and local law enforcement partners including the Reno Police Department, Sparks Police Department, and the Washoe County Sheriff’s Office. Assistant U.S. Attorney James E. Keller is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop, locally-based strategies to reduce violent crime. For more information about PSN, visit www.justice.gov/usao-nv.
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Twenty Defendants Indicted for Heroin, Methamphetamine and Cocaine TraffickingRead the Press Release
Assistant U. S. Attorney A. Dale Blankenship (619) 546-6705
NEWS RELEASE SUMMARY – June 27, 2018
SAN DIEGO – Two federal indictments unsealed in San Diego today charge 20 defendants with heroin, methamphetamine, cocaine, and marijuana trafficking.
In a two-day sweep, members of the Homeland Security Investigations Gangs & Weapons Group, plus other law enforcement agencies around the county made numerous arrests and searched two locations in Spring Valley and Lemon Grove.
The yearlong investigation involved months of federal wiretaps, numerous undercover drug and gun buys and extensive surveillance. Many of the defendants are associates of criminal street gangs such as Skyline Piru, Florencia 13, Ysidro, Shelltown, Logan Heights Red Steps, Vario and Chula Vista. The investigation revealed that some of these defendants have ties to Mexican Mafia and Mexican Drug Cartels.
As of today at noon, sixteen of the twenty defendants are either in federal or state custody. Authorities are continuing to search for two defendants. Six of the defendants were arraigned before U.S. Magistrate Clinton Averitte yesterday.
“Drugs are destroying lives and families and bringing violence to our communities, and we are more committed than ever to prosecuting these cases,” said U.S. Attorney Adam Braverman. “Gangs are most often the distributors of these deadly poisons, and we have a special resolve to go after them.”
HSI Special Agent in Charge David Shaw said, “Homeland Security Investigations remains committed in keeping our communities safe from drug trafficking and associated dangerous criminal activity,” said David Shaw, Special Agent in Charge for HSI in San Diego. “The arrests over the last two days demonstrate the unwavering dedication between HSI and our law enforcement partners, to address these dangerous threats facing our community.”
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The United States is represented in court by Assistant U.S. Attorney A. Dale Blankenship.
DEFENDANT Criminal Case No: 18CR2278-CAB
Name
Age
Hometown
JOSE VARGAS-MEZA (1)
25
San Diego
JESSE RAMIREZ (2),
aka “Junior,”
27
Chula Vista
MARTIN VILLAFANA (3),
Aka “Gato,”
25
San Diego
SERGIO GARCIA (4),
aka “Checko,”
27
San Diego
JAMAAR RASHAAD CODRINGTON (5),
aka “Buzz,”
38
San Diego
CHRISTIAN RAMIREZ (6)
28
Chula Vista
JENNIFER LIEGH ZAYAS (7)
37
El Cajon
24
San Diego
PRENTICE TAULAUO TEO (9)
46
San Diego
RICKY RICARDO SIMMONS (10),
aka “Daz,”
38
Spring Valley
JERMAINE SAYLES (11)
38
San Diego
LARON WALLACE (12),
aka “Skinny,”
38
San Diego
ALEXANDER AGENCIA SANTOS (13),
aka “Lex,
35
San Diego
LAMONT CHARLES YOUNG (14)
20
San Diego
TARA LYNN JONES (15)
34
San Diego
RICO WELCH (16)
46
San Diego
SUMMARY OF CHARGES
Conspiracy to Distribute Cocaine (Title 21, U.S.C., Secs. 841(a)(1), 846);
Conspiracy to Distribute Methamphetamine (Title 21, U.S.C., Secs. 841(a)(1), 846);
Conspiracy to Distribute Marijuana (Title 21, U.S.C., Secs. 841(a)(1), 846); Possession of Methamphetamine with Intent to Distribute (Title 21, U.S.C, Secs. 841(a)(1)).
Maximum Penalties: Maximum Penalties: For cocaine and methamphetamine charges: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine; for marijuana charge:40 years in prison, with a mandatory minimum sentence of 5 years and a $5 million fine.
DEFENDANTS Criminal Case No: 18CR2970-CAB
Name
Age
Hometown
VICTOR CARRASCO (1),
aka “Mico,”
54
San Diego
24
San Diego
MARIO ZUNIGA-BARRAGAN (3),
49
San Diego
CESAR AGUILAR RODRIGUEZ (4),
26
San Diego
SUMMARY OF CHARGES
Conspiracy to Distribute Methamphetamine (Title 21, U.S.C., Secs. 841(a)(1) and 846);
Conspiracy to Distribute Methamphetamine (Title 21, U.S.C., Secs. 841(a)(1) and 846);
Possession of Methamphetamine with Intent to Distribute (Title 21, U.S.C. Secs. 841(a)(1));
Possession of Heroin with Intent to Distribute (Title 21, U.S.C. Secs. 841(a)(1))..
Maximum Penalties: For cocaine and methamphetamine charges: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine; for heroin charge:
20 years in prison and a $1 million fine.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
AGENCIES
Homeland Security Investigations – Gang and Weapons Group
San Diego Police Department
San Diego County Sheriff’s Department
Chula Vista Police Department
San Diego County Probation Department
San Diego District Attorney’s Office
California Department of Corrections and Rehabilitation
San Diego Fugitive Task Force
United States Bureau of Prisons – Joint Intelligence Sharing Initiative
ICE Enforcement and Removal Operations
United States Border Patrol K-9
Customs and Border Protection Air and Marine Operations
Federal Bureau of Investigation
Three Men Indicted for Conspiracy to Distribute Fentanyl and HeroinRead the Press Release
ALEXANDRIA, Va. – A federal indictment was unsealed late yesterday charging three members of an alleged Washington, D.C., area drug crew with drug and firearms offenses.
According to allegations in the second superseding indictment, Donnell Leroy Williams, aka “Bubbles,” his son, Antonio Donnell Shelton, aka “Little Bubbles,” and Demetrius Antonio Johnson, aka “Bake,” worked together to distribute several types of controlled substances, including fentanyl, a highly dangerous synthetic opioid.
During the course of the drug conspiracy, Donnell Williams resided in Hyattsville, Maryland. Donnell Williams coordinated drug transactions with customers over the phone, and he drove to locations in Arlington, Maryland, and Washington, D.C. to meet customers and distribute fentanyl. When Williams was unavailable, he directed his customers to other members of his crew, including his son, Shelton, and Johnson.
According to allegations in the indictment, beginning in May 2017, an undercover Fairfax County detective conducted several deals with Williams, eventually working his way to purchasing approximately 1/2 kilogram of fentanyl from Williams for $40,000. On November 7, 2017, the FBI arrested Williams and searched his apartment in Hyattsville. Inside the apartment, FBI agents found a large quantity of fentanyl packaged in small baggies for distribution. Agents also found large quantities of crack cocaine and marijuana, as well as a loaded handgun.
Name
Age
Charges
Maximum Penalty
Donnell Leroy Williams
54
Conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and 28 grams or more of crack cocaine
Possession of a firearm in furtherance of a drug trafficking crime
Life in prison
Antonio Donnell Shelton
30
Conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and 28 grams or more of crack cocaine
Life in prison
Demetrius Antonio Johnson
37
Conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and 28 grams or more of crack cocaine
Life in prison
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement. Assistant U.S. Attorney J. Tyler McGaughey and Special Assistant U.S. Attorney David A. Peters 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-30.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Three Massachusetts State Troopers ArrestedRead the Press Release
BOSTON – Three members of the Massachusetts State Police (MSP) were arrested and charged today with theft from an agency receiving government funds, as part of an ongoing investigation. Two recently retired, one recently suspended.
Former Lieutenant David Wilson, 57, of Charlton; Trooper Gary Herman, 45, of Chester; and Former Trooper Paul Cesan, 50, of Southwick, were charged in three separate criminal complaints unsealed today. All three men were assigned to Troop E, which is responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. They will appear in U.S. District Court in Boston later today.
Wilson, who served as the Officer-in-Charge of several overtime shifts, along with Troopers Herman and Cesan are alleged to have received overtime pay for hours they either did not actually work at all, or shifts in which they departed one to seven hours early.
The alleged conduct involves overtime pay for selective enforcement initiatives, including the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative. Both initiatives are intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds. Wilson, Herman and Cesan were required to work the entire duration of the shifts – either four or eight hours – and truthfully report the date, time and sector of deployment on the citations issued during the shift. As alleged, they concealed the fraud by submitting citations that were issued previously, altered to create the appearance that the citation was issued during the overtime shift, and/or submitted citations that were never issued and never took place.
According to court documents, investigators were able to corroborate the alleged conduct through spreadsheets compiled during MSP’s audit of Troop E’s overtime, along with data from MSP cruiser radios and other MSP records, to observe individual Trooper radio activity/inactivity patterns, as well as radio transmission location patterns.
In 2016, Lt. Wilson earned approximately $230,000, claiming to have worked approximately 170 AIRE overtime shifts – equating to about $68,000 in overtime pay. The investigation revealed that out of those overtime hours worked in 2016, Lt. Wilson earned approximately $12,450 in overtime pay that he in fact, did not work. Trooper Herman earned $227,826 in 2016, which included approximately $63,000 in overtime, of which $12,468 was attributable to AIRE and X-Team shifts for which Herman either left early or did not show up to work. Trooper Cesan earned approximately $163,500, which included approximately $50,866 in overtime pay, $29,000 of which included pay for AIRE and X-Team overtime shifts that Cesan did not work.
In 2015 and 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit and Neil Gallagher of Lelling’s Economic Crimes Unit are prosecuting the case.
Three Jackson Men Sentenced under Project EJECT for Business Robbery and Illegally Discharging a Firearm During RobberyRead the Press Release
Jackson, Miss. – Willie Evans, Gino Banks, and Devonta Jimmerson, all of Jackson, were sentenced yesterday before United States Chief District Judge Daniel P. Jordan III for the robbery of a local Jackson convenience store and illegal discharge of a firearm during said robbery, announced U.S. Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge, Federal Bureau of Investigations.
Evans was sentenced to serve 40 months for the robbery and 120 months for illegally discharging a firearm to run consecutive to the robbery for a total sentence of 160 months in federal prison, followed by five years of supervised release.
Banks was sentenced to 15 months for the robbery and 120 months for discharging a firearm to run consecutive for a total sentence of 135 months in federal prison, followed by 5 years of supervised release.
Jimmerson, the getaway driver, was sentenced to 70 months for the robbery, followed by 3 years of supervised release.
On January 14, 2016, Devonta Jimmerson entered the store and conducted a surveillance of the Stop and Shop store located on Beasley Road and informed the other defendants of the store conditions and whether theywould be able to access the register and the store clerk. After receiving the report from Jimmerson, Banks and Ellis entered the Stop and Shop store dressed in dark clothing. They assaulted the clerk, demanded money, and fired several shots at the store safe in an attempt to open it. The suspects fled the store and were met by Jimmerson who drove them away from the scene.
Jackson Police Department officers stopped a vehicle matching the getaway car and upon a search of the vehicle they found several items including a .40 caliber handgun, the clerk’s stolen cell phone, U.S. currency, and the clothing that matched the description of the clothing worn by the suspects seen on the surveillance and described by the victim.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with FBI agents and Project EJECT task force members. This case was prosecuted by Assistant U.S. Attorney Abe McGlothin, Jr.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Walt Disney Company Required to Divest Twenty-Two Regional Sports Networks in Order to Complete Acquisition of Certain Assets from Twenty-First Century FoxRead the Press Release
The Department of Justice announced today that it will require The Walt Disney Company to divest 22 Regional Sports Networks (“RSNs”) as a condition of its $71.3 billion acquisition of certain assets from Twenty-First Century Fox, Inc.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the Southern District of New York to block the proposed acquisition. At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit. The Department said that without the required divestitures, the proposed acquisition would likely result in higher prices for cable sports programming licensed to multichannel video programming distributors (“MVPDs”) in each of the local markets that the RSNs serve. To streamline agency clearance, Disney agreed to divest the 22 RSNs rather than continue with the Antitrust Division’s ongoing merger investigation.
“American consumers have benefitted from head-to-head competition between Disney and Fox’s cable sports programming that ultimately has prevented cable television subscription prices from rising even higher,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that sports programming competition is preserved in the local markets where Disney and Fox compete for cable and satellite distribution.”
According to the Department’s complaint, Disney and Fox compete to sell cable sports programming to MVPDs in various local markets across the United States. Because of this competition, the complaint alleges that the proposed acquisition would likely result in MVPDs paying higher prices for cable sports programming in those local markets. The proposed settlement requires Disney to divest 22 RSNs, currently owned by Fox, to a buyer acceptable to the Department. The Department has determined that the divestitures would resolve antitrust concerns arising from Disney’s acquisition of certain assets from Fox.
The Walt Disney Company is incorporated in Delaware with its principal place of business in Burbank, Calif. It is a diversified worldwide entertainment company that, among other things, owns cable and broadcast television networks, television production and distribution operations, broadcast television stations and motion picture production and distribution operations. Its revenues were approximately $55 billion for its 2017 fiscal year.
Twenty-First Century Fox, Inc. is incorporated in Delaware with its principal place of business in New York, NY. It is a diversified global media and entertainment company that, among other things, owns cable and broadcast television networks, broadcast television stations and motion picture production and distribution operations. Its revenues were approximately $28.5 billion for its 2017 fiscal year. The Fox assets that Disney is acquiring, including the Fox RSNs, generated $19 billion in 2017 revenues.
As required by the Tunney Act, the proposed settlement and the Department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen M. Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 4000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Southern District of New York may enter the proposed consent decree upon finding that it serves the public interest.
Texas Man Admits to Enticing Minors to Engage in Sexual Activity over the InternetRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, announced that TRAVIS W. MCCOY, 24, of Houston, Texas, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of enticement of a minor to engage in sexual activity.
According to court documents and statements made in court, between approximately August 2015 and March 2017, while he was attending college and living in New London, McCOY used internet-based video chatting services, including Kik and Google Hangouts, and internet-based gaming systems, such as Xbox Live, to entice four minor males between the ages of 9 and 14 to engage in sexually explicit conduct over video-chatting services, such as Skype. McCOY either took screen shots of the minors engaged in sexual activity, or requested and received from the minors digital images and videos in which the minors are depicted engaging in sexual activity. McCOY also sent sexually explicit images and videos of himself to the minor victims.
The investigation revealed that McCOY initially met one of the minor victims at a summer camp in Texas where McCOY had worked as a camp counselor.
The investigation also revealed that McCOY maintained three Dropbox accounts and gave the password to one of the accounts to a person living in Los Angeles as a way to share and receive child pornography. The Dropbox accounts contained 120 images and 158 videos of child pornography. There is no evidence that McCOY distributed any of the images or videos he received from the four minor victims he enticed.
Judge Shea scheduled sentencing for September 24, 2018, at which time McCOY faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
McCOY was arrested on a federal criminal complaint on June 28, 2017. He is detained pending sentencing.
This matter has been investigated by Homeland Security Investigations, the New London Police Department and the Houston Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Subcontractor Sentenced for Violating an OSHA Regulation Causing Death to an EmployeeRead the Press Release
DALLAS —Design Plastering West LLC, a New Mexico domestic limited liability company (LLC), was sentenced today before United States District Judge Ed Kinkeade of an Occupational Safety and Health Act (OSHA) violation causing death to an employee, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas. As a part of Design Plastering West LLC’s sentencing, the company was ordered to pay a $150,000 criminal fine and $100,000 civil penalty, admit to eight willful violations of OSHA regulations, and be monitored for four years by an OSHA compliance expert.
According to court documents filed, on May 24, 2018, Design Plastering West LLC pled guilty to a one-count information.Design Plastering West LLC, a subcontractor, contracted to complete work at the Maple District Loft, a project in Dallas, Texas. Design Plastering West LLC employed Jorge Carrion Torres to complete stuccowork. On May 14, 2015, Mr. Torres died when he fell approximately 23 feet from the third floor balcony of that project. Design Plastering West LLC admitted the third floor balcony where Mr. Torres was working did not have the proper fall protections, such as guardrail systems, safety net systems, or personal fall arrest systems. Design Plastering West LLC admitted to failing to provide fall protection and that such failure caused the death of Mr. Torres.
The investigation was conducted by Department of Labor, Occupational Safety and Health Administration. Assistant U.S. Attorney Kate Rumsey is in charge of the prosecution and was assisted by attorneys from the Department of Labor, Office of the Solicitor.# # #
Statement from Solicitor General Noel Francisco on the retirement of Supreme Court Justice Anthony KennedyRead the Press Release
Today, Solicitor General Noel Francisco issued the following statement on the retirement of Supreme Court Justice Anthony Kennedy: “As Solicitor General of the United States and on behalf of this Office, we are grateful and appreciative for Justice Kennedy’s tireless years of public service in our federal judiciary and on our Nation’s highest Court. His jurisprudence has left an indelible mark and his commitment to our cherished First Amendment freedom of speech will be a legacy for generations to come. I count it a privilege to have argued before him and wish him and his family all the best in the years ahead.”
South Carolina Man Pleads Guilty to Federal Wire Fraud Charge, Admits Using Forged Deeds to Steal HomesRead the Press Release
WASHINGTON – Robert McCloud, 39, most recently of Warrenville, S.C., pled guilty today to a federal wire fraud charge stemming from a real estate scheme in which he and others used forged deeds and fake driver’s licenses to fraudulently transfer ownership of District of Columbia homes from the rightful owners.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
McCloud pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, McCloud faces a likely range of 27 to 33 months in prison and a fine of up to $60,000. He also has agreed to pay $200,488 in restitution to two title insurance companies, as well as a forfeiture money judgment of $57,965. The Honorable Amit P. Mehta scheduled sentencing for Oct. 19, 2018.
According to the government’s evidence, McCloud and others identified vacant or seemingly abandoned residential properties in the District of Columbia, and then prepared and filed forged deeds with the District of Columbia’s Recorder of Deeds transferring the properties into fictitious names. Next, they agreed to sell these properties to legitimate purchasers and arranged with unsuspecting title and escrow companies to finalize the sale and transfer ownership. Finally, they shared the fraudulently-obtained sales proceeds amongst themselves.
In his guilty plea, McCloud admitted taking part in two such fraudulent transactions within a two-month period of 2015, which generated a total of $580,482 in proceeds.
In the first, in April 2015, McCloud filed a forged Intra-Family deed with the District of Columbia’s Recorder of Deeds purporting to show that a home in the unit block of K Street NW was transferred from the true owners to a fictitious person. The true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to transfer their home. McCloud then appeared at the title company pretending to be the owner in order to close the transaction, presenting a California driver’s license with his photograph but in the name of the fictitious person, signing the settlement documents and selling the property. The title company sent by wire transfer $195,527 to a bank account opened in the name of the fictitious person. McCloud withdrew approximately $43,000 of the funds before the crime was discovered; the rest of the funds were returned to the title company.
In the second transaction, in May 2015, a conspirator arranged for a forged deed with respect to another home, in the 6400 block of 16th Street NW, to be filed with the Recorder of Deeds. As with the other property, the true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to sell the residence. In June 2015, McCloud appeared at the title company pretending to be the owner and using another fake California driver’s license with his photograph. He again signed the settlement documents in the fictitious name. The title company sent by wire transfer $384,955 to a bank account opened in the name of the fictitious person. McCloud was arrested the following day.
Although McCloud received $580,482 in proceeds from his wire fraud scheme regarding both real properties, law enforcement seized a total of $369,990, which was later administratively forfeited. These forfeited funds, and the partial return of funds to the title company from the K Street transaction, reduced the amount owed in forfeiture to $57,965, which is the amount of the forfeiture money judgment.
The harm caused to the owners, buyers, and title companies was covered by title insurance; the restitution amount of $200,488 is the amount due and owing to the title insurance companies after giving credit to the forfeited funds, which were returned to the victims.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work performed by those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Stephanie Miller, former Paralegal Specialist Christopher Toms, Paralegal Specialist Aisha Keys, and Litigation Technology Specialist Leif Hickling. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Second Executive Pleads Guilty to Participating in Capacitors Price-Fixing ConspiracyRead the Press Release
Tokuo Tatai, an executive of Japan-based capacitor manufacturer Elna Co. Ltd., pleaded guilty for his role in a conspiracy to fix prices and rig bids for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.
A December 2016 indictment, filed in the U.S. District Court of the Northern District of California, charged Tatai with participating in a conspiracy to suppress and eliminate competition of electrolytic capacitors by fixing prices and rigging bids. The charge alleges that Tatai participated in the conspiracy from January 2009 to January 2012. In addition to pleading guilty, Tatai has agreed to serve a prison term of a year and a day and to cooperate with the Antitrust Division’s ongoing investigation.
“The Antitrust Division will hold accountable foreign nationals who participate in conspiracies that harm American consumers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This capacitors conspiracy affected millions of American consumers who use electronic devices in their everyday lives.”
Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment.
Today’s charges result from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the electrolytic capacitors industry. Eight companies and 10 individuals have been charged in the division’s ongoing investigation. The investigation is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office.
Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the capacitors industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at 415-553-7400.
Saratoga County Man Arrested for Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – Robert Gibeault, Jr., age 49, of Gansevoort, New York, appeared today in federal court on charges that he distributed child pornography over the internet.
The announcement was made by 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, Gibeault used the file-sharing program BitTorrent to distribute child pornography to other BitTorrent users from January 2017 through September 2017. His laptop computer contained approximately 390 video files and 85 image files depicting child pornography. These included files that Gibeault had previously distributed over the BitTorrent network. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Gibeault 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, Gibeault would be required to register as a sex offender.
Gibeault appeared today before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending a detention hearing scheduled for June 29, 2018.
This case is being investigated by HSI, with assistance from the New York State Police and Colonie Police Department, and is being prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Emmet O’Hanlon.
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.
Salem County, New Jersey, Woman Sentenced to 12 Months in Prison for Filing False Corporate Tax ReturnsRead the Press Release
NEWARK, N.J. – A Salem County, New Jersey, woman was sentenced today to one year and one day in prison for signing false tax returns for shell companies resulting in $286,742 in fraudulent refunds, U.S. Attorney Craig Carpenito announced.
Marilyn Crespo, 50, of Carney’s Point, New Jersey, previously pleaded guilty before U.S. Chief District Judge Jose L. Linares to an information charging her one count of filing a false corporate tax return for tax year 2009. Judge Linares imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Crespo previously resided in Guttenberg, New Jersey. At the direction of her husband, José Crespo, she signed under penalty of perjury numerous false corporate tax returns, Forms 1120, for fake businesses, knowing that the businesses were not real and that the credits claimed on the tax returns were false.
In signing these false tax returns, Marilyn Crespo took advantage of fuel excise tax credits offered under federal tax law. The federal government taxes gasoline, diesel fuel, and certain other types of fuel, but certain commercial uses of these fuels are nontaxable. Businesses that purchase fuel for a nontaxable use can claim a tax credit by filing Form 4136 entitled “Credit for Federal Tax Paid on Fuels.”
Marilyn Crespo signed a federal corporate tax return for 2009 for Magnum Cleaning Service Corp. that claimed gross receipts of $115,027, a fuel excise tax credit of $20,859 and a resulting refund of $15,750. In fact, Magnum was a shell company and the gross receipts and fuel excise tax credit numbers were false. Marilyn Crespo received and cashed the $15,750 refund check at a check-cashing facility in Guttenberg. She cashed many other refund checks for similar false tax returns at this same check-cashing facility.
José Crespo pleaded guilty on Sept. 11, 2017, before Judge Linares, to engaging in the fuel excise tax credit scheme and another tax fraud scheme and causing an anticipated loss to the IRS of nearly $1.5 million. He was sentenced Dec. 20, 2017, to three years in prison.
In addition to the prison term, Judge Linares sentenced Marilyn Crespo to one year of supervised release and ordered her to pay restitution of $286,742.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Kenneth W. Kayser Esq., East Hanover, New Jersey
Rockland Man Charged with Health Care Fraud and EmbezzlementRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Michael A. Morrison, 41, of Rockland, Maine, was charged by criminal complaint in U.S. District Court with health care fraud and embezzlement from a health care benefit program arising out of his employment at the Trade Winds Health, Swim and Tan Club (“Trade Winds”) in Rockland.
According to court documents, from 2005 until July 2016, Morrison was the Executive Director of the health club at Trade Winds, which included a physical therapy business known as Coastal Physical Therapy. Between 2014 and 2016, Morrison allegedly submitted over $177,000 worth of fraudulent claims to Medicare, MaineCare, the Veterans Administration Fee Basis health care program, and Anthem Blue Cross and Blue Shield by inflating the length of time procedures lasted, and by submitting claims for services not rendered or for services he rendered even though he was not a licensed Physical Therapist (PT) or a PT Assistant.
The complaint also alleged that from 2011 to 2016, Morrison embezzled over $70,000 from the health club by making unauthorized purchases for himself and his family using a business credit card and by stealing and cash from the business.
The defendant faces up to ten years in prison and a fine of up to $250,000 on each count.
This case originated from a referral from the Rockland Police Department and the Maine Attorney General’s Healthcare Crimes Unit (“MeHCU”) and was investigated by the U.S. Department of Health and Human Services (“HHS”), Office of Investigations, Office of Inspector General, with assistance from the MeHCU, and the U.S. Department of Veterans Affairs, Office of Inspector General.
Re-entry Simulation Will Highlight Challenges Facing Those Returning Home from PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William McSwain announced today that his Office is co-hosting an outreach event aimed at educating criminal justice professionals and the public about the obstacles and challenges ex-offenders face when returning home from prison.
On Friday, June 29 at 9:00 a.m., as part of Re-entry Awareness Month in Philadelphia, several agencies are joining forces to host a prisoner re-entry simulation at the Strawbridge Building in Philadelphia. The event is hosted by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, U.S. Department of Health and Human Services Administration for Children & Families, Office of Child Support Enforcement, The MENTOR Program, and the National Workforce Opportunity Network. The simulation is intended to educate the public and criminal justice system professionals who assist with re-entry transition about the complex challenges prisoners face when they return home from prison. The simulation will provide a way for participants to stand in the shoes of individuals just released from prison, which in turn will help them better anticipate and meet their needs.
Titled Get Ready, Get Set, Get Out: A Day in the Life of a Returning Citizen, the program will ask participants to assume identities of ex-offenders and to participate in activities designed to simulate the first month of an individual’s release. Throughout the course of two hours, participants complete various tasks such as getting a driver’s license, reporting to probation, attending drug treatment and counseling, and attending to other basic life requirements to become a productive citizen and avoid re-incarceration.
The simulation is open to the public, and the details are provided below:
WHEN: Friday, June 29, 2018, from 9:00 a.m. to 12:00 p.m.
WHERE: The Strawbridge Building, Ben Franklin Conference Center, 801 Market Street, Suite 9101-9102, Philadelphia, PA 19107
Registration is required.
To register visit: https://www.eventbrite.com/e/get-ready-get-set-get-out-a-day-in-the-life-of-a-returning-citizen-tickets-46985480838.
Randolph Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
BOSTON – A Randolph man pleaded guilty today in federal court in Boston to being a previously convicted felon in possession of a firearm.
Dararong James Heang, 28, pleaded guilty to being a convicted felon in possession of a firearm and ammunition. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Oct. 3, 2018.
Shortly after midnight on June 16, 2017, law enforcement officers stopped Heang and two other individuals in the area of Shirley Avenue in Revere, which had been the scene of recent gang violence. Heang was known to officers as being previously involved with gang activity. During a subsequent search, Heang was found to be in possession of a semi-automatic firearm and seven rounds of ammunition. At the time, Heang was on state probation and had previously been convicted of multiple felonies in state court, including assault and battery and possession with intent to distribute drugs.
The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Suffolk County District Attorney Daniel F. Conley; and Revere Police Chief James R. Guido made the announcement today. Assistant U.S. Attorney Kunal Pasricha of Lelling’s Organized Crime & Gang Unit is prosecuting the case.
Project Safe Neighborhoods Grant AnnouncementRead the Press Release
U.S. Attorney Duane A. Evans announced the availability of approximately $133,879 in Project Safe Neighborhoods (PSN) funds for the Eastern District of Louisiana. The U.S. Department of Justice (DOJ), Office of Justice Programs (OJP), and Bureau of Justice Assistance (BJA) is seeking applications for funding under the Violent Gang and Gun Crime Reduction Program, also known as Project Safe Neighborhoods (PSN). PSN furthers the Department’s mission and violent crime strategy by providing support to state, local and tribal efforts to reduce violent crime, which includes, firearm crimes and criminal gang violence.
Applicants must register in the OJP Grants Management System (GMS) prior to submitting an application. The GMS website is https://grants.ojp.usdoj.gov. All registrations and applications are due by 11:59 pm EST on July 19, 2018.
The FY 2018 PSN Grant Announcement, OMB No. 1121-0329, can be referenced at www.bja.gov/funding/PSNFormula18.pdf. Please visit www.bja.gov/programs/psn for more information on the PSN solicitation.
Plymouth Woman Sentenced to One Year and One Day Imprisonment for Conspiring to Distribute Heroin, Crack, and FentanylRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on June 26, 2018, United States District Judge Malachy E. Mannion sentenced Kristyna Shotwell, age 30, of Plymouth, Pennsylvania, to one year and one day imprisonment for conspiring to distribute heroin, crack cocaine, and fentanyl.
According to United States Attorney David J. Freed, Shotwell pleaded guilty to conspiring to distribute controlled substances in Pennsylvania between approximately July 2015 through February 2017. Shotwell admitted to serving as a courier for other members of the conspiracy, allowing members of the conspiracy to use her resident to package and sell narcotics, and selling heroin herself. Shotwell admitted that she trafficked in excess of 22.4 grams of crack cocaine and in excess of 80 grams of heroin, the latter of which is the equivalent of 3,200 potentially fatal doses of heroin.
Shotwell was charged in June 2017 with 14 other individuals. All of her co-defendants have pleaded guilty, with two others having already been sentenced:
- Kassandra Martin of Wilkes-Barre, Pennsylvania, was sentenced to 60 months’ imprisonment; and
- Joshua Lenchick of Luzerne, Pennsylvania, was sentenced to 60 months’ imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kingston Police Department, and by the Luzerne County Drug Task Force. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Pittsfield Businessman Pleads Guilty to $4 Million Conspiracy to Defraud a Credit UnionRead the Press Release
BOSTON – A businessman, who owned and operated five real estate development companies in Pittsfield, pleaded guilty today in federal court in Springfield to defrauding a credit union.
Jeffrey Pierce, 51, of Pittsfield, pleaded guilty to one count of conspiracy to receive money through transactions of a credit union with intent to defraud the credit union and to make false statements to a federal credit union. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 3, 2018.
Between 2005 and 2008, a former Vice President of Greylock Federal Credit Union (GFCU) authorized approximately $4 million in various loans and modifications to Pierce and his companies in violation of GFCU’s loan policies. By circumventing GFCU’s policies, the Vice President caused GFCU to provide Pierce and his companies with funds far in excess of what Pierce and his companies could reasonably receive or repay. In exchange for improperly authorizing these loans, Pierce agreed to provide - and did provide - the Vice President with $134,773 in check payments from Pierce’s companies derived from GFCU loans that were paid to a front company created by the employee; the free use of a home constructed by one of Pierce’s companies with a GFCU loan; and the free use of a BMW automobile purchased by one of Pierce’s companies with a GFCU loan. Around March 2010, at the Vice President’s direction and for the purpose of influencing the action of GFCU upon the loans, Pierce falsely stated to GFCU that the money paid by his companies to the front company were payments for design work that the Vice President’s wife provided to Pierce’s construction projects.
The conspiracy charge provides for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division, made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
Paterson Police Officer Admits Assaulting Hospital Patient, Distributing NarcoticsRead the Press Release
NEWARK, N.J. – A City of Paterson police officer today admitted violating an individual’s civil rights by assaulting him at a hospital and repeatedly distributing narcotics, including drugs he stole from a crime scene while on duty, U.S. Attorney Craig Carpenito announced.
Ruben McAusland, 26, of Paterson, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with possessing with intent to distribute narcotics and deprivation of civil rights under color of law.
“McAusland’s conduct breached his duties as an officer of the law and violated the public trust,” U.S. Attorney Carpenito said. “He dealt drugs, stole from a crime scene, and viciously attacked an individual who contacted the Paterson Police Department rightfully expecting to receive assistance and protection from McAusland and his partner. The people of Paterson, and all of New Jersey, deserve better. This Office remains strongly committed to identifying and rooting out corrupt police officers and bringing them to justice under federal law.”
“Police Officers take a solemn oath to uphold the law and to protect the public. The few who take advantage of this public trust, at any level, will be investigated by the FBI and prosecuted to the fullest extent of the law. This officer not only violated his pledge but tarnished the reputation of all law enforcement by his grievous lawlessness,” said Special Agent in Charge Gregory W. Ehrie of the Newark FBI Field Office.
According to documents filed in this and another case, and statements made in court:
Between October 2017 and April 2018, McAusland sold various types and quantities of narcotics to an individual who was cooperating with law enforcement. In October 2017, McAusland sold the individual approximately 35 grams of marijuana, 48 grams of heroin, 31 grams of cocaine, and 31 grams of crack cocaine. McAusland admitted that he stole these narcotics from a crime scene while on duty and in uniform as a police officer.
McAusland also sold the individual two pounds of marijuana between November 2017 and January 2018. In addition, on multiple occasions between February 2018 and April 2018, McAusland sold pills that were made to resemble Percocet doses but were actually made of heroin.
On March 5, 2018, McAusland and his partner, Roger Then, 29, of Paterson, were on duty and responded to a call from an attempted suicide victim. McAusland and Then first went to the victim’s house but were told the victim had been transported to St. Joseph’s Medical Center in Paterson.
McAusland first met the victim, who was in a wheelchair, in the hospital waiting room. McAusland admitted that during the encounter, he pushed the victim and punched him in the face. In addition, Then allegedly grabbed the victim by the neck and pushed him into the ground. Afterwards, the victim was taken to a hospital patient room.
McAusland and Then had another encounter with the victim in the hospital room, which Then recorded on his cellphone. McAusland admitted that, while the victim was on his back in a hospital bed, he put on a pair of hospital gloves and violently struck the victim twice across the face.
McAusland and Then filed a false police report in connection with the foregoing events. McAusland admitted that they purposely omitted from the repot the fact that McAusland violently struck the victim multiple times and that Then grabbed the victim by the neck and pushed him into the ground.
The victim suffered multiple injuries to his face, including an eye injury that required surgery, as a result of these assaults.
The distribution of narcotics charge carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. The deprivation of civil rights count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 9, 2018.
Then was arrested May 30, 2018 and charged by complaint with conspiring to violate an individual’s civil rights and with misprision of felony for concealing civil rights violations. The charges and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s plea. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the U.S. Attorney’s Office Criminal Division.
Defense counsel: John C. Whipple Esq., Morristown
Olathe Man Sentenced to 18 Years for Trafficking in MethamphetamineRead the Press Release
ANSAS CITY, KAN. – An Olathe man was sentenced Tuesday to 18 years in federal prison for trafficking in methamphetamine, U.S. Attorney Stephen McAllister said.
David C. True, 32, Olathe, Kan., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted he was a member of a drug trafficking organization that distributed meth in the Johnson County area. He admitted to regularly handling up to 10 pounds of methamphetamine a week, acting as both a buyer and a seller. In addition, he possessed firearms, which he was prohibited from doing because of a previous felony conviction.
McAllister commended the Miami County Sheriff’s Office, the Olathe Police Department, the Kansas City, Kan., Police Department, the Secret Service, the Kansas Bureau of Investigation, the Johnson County Sheriff’s Office, and Special Assistant U.S. Attorney James Ward for their work on the case.
Ohio Man Charged with Federal Hate Crimes Related to August 2017 Rally in CharlottesvilleRead the Press Release
James Alex Fields Jr. Indicted on 30 Counts Including Hate Crime Resulting in the Death of Heather Heyer
A federal grand jury sitting in the U.S. District Court for the Western District of Virginia in Charlottesville today charged an Ohio man with federal hate crimes, including a hate crime act that resulted in the death of Heather Heyer, for his actions during the Aug. 12, 2017 “Unite the Right Rally” in Charlottesville. Attorney General Jeff Sessions, FBI Director Christopher Wray, Acting Assistant Attorney General John Gore of the Civil Rights Division, United States Attorney Thomas T. Cullen of the Western District of Virginia, and Special Agent in Charge of the FBI’s Richmond Division Adam S. Lee, made the announcement.
James Alex Fields Jr., 21, of Maumee, Ohio, was charged in an indictment returned earlier today with:
- one count of a hate crime act resulting in the death of Heather Heyer (18 U.S.C. § 249);
- 28 counts of hate crime acts causing bodily injury and involving an attempt to kill (18 U.S.C. § 249); and
- one count of racially motivated violent interference with a federally protected activity (18 U.S.C. § 245(b)(2)), resulting in the death of Heather Heyer, for driving his car into a crowd of protestors on a downtown street in Charlottesville, Virginia.
“At the Department of Justice, we remain resolute that hateful ideologies will not have the last word and that their adherents will not get away with violent crimes against those they target,” Attorney General Jeff Sessions said. “Last summer’s violence in Charlottesville cut short a promising young life and shocked the nation. Today’s indictment should send a clear message to every would-be criminal in America that we aggressively prosecute violent crimes of hate that threaten the core principles of our nation. I want to thank the FBI as well as our fabulous prosecutors Stephen Curran, Christopher Kavanaugh, and Rachel Kincaid for their hard work on this case.”
“As this case indicates, our office will aggressively prosecute hate crimes and other civil-rights offenses committed because of the actual or perceived race, color, religion, or national origin of any individual or group,” U.S. Attorney Thomas T. Cullen stated. “We are grateful to the FBI and our state and local law-enforcement colleagues who conducted the parallel federal and state investigations in a cooperative fashion, enabling us to vindicate this critical federal interest.”
"Hatred and violence have no place in our communities," said FBI Director Christopher Wray. “The investigation of hate crimes is a top priority of the FBI, and we will continue to work with our partners to ensure those who perpetrate such despicable acts are held accountable.”
“The events of Aug. 12, 2017, in Charlottesville are a grim reminder of why the FBI prioritizes its investigations of civil rights violations among the top of its criminal programs. I hope today will also be a reminder to those who are motivated by hate and intent on committing violence; we are going to be there, just as we were in this case,” said FBI Special Agent in Charge Adam S. Lee of the Richmond Division, who also oversees the office in Charlottesville. “I want to thank the Civil Rights Division and the United States Attorney’s Office for their outstanding partnership, my team of FBI agents and analysts who worked tirelessly to put the case together, and the business owners and residents of Charlottesville who worked with us and provided a massive volume of evidence in this case.”
According to the indictment, on or before Aug. 8, 2017, Fields decided to attend the Unite the Right Rally in Charlottesville, Virginia. The Unite the Right rally was scheduled to occur on Aug. 12, 2017, at Emancipation Park and was widely publicized on social media and internet sites associated with white supremacist individuals and groups.
On the morning of Aug. 12, 2017, Fields arrived in and around the vicinity of Emancipation Park in Charlottesville. Multiple groups and individuals, including Fields, engaged in chants promoting or expressing white supremacist and other racist and anti-Semitic views. After an “unlawful assembly” was declared, rally participants, including Fields, dispersed the area. Fields returned to his vehicle and soon after drove to the vicinity of the intersection of Fourth and East Market streets in downtown Charlottesville.
As alleged in the indictment, Fields drove his car onto Fourth Street, a narrow, downhill, one-way street in downtown Charlottesville. At around the same time, a racially and ethnically diverse crowd of individuals was gathered at the bottom of the hill, at the intersection of Fourth and East Water streets. The indictment alleges that Fields slowly proceeded in his vehicle toward the crowd, stopped, and then observed the crowd while idling in his vehicle. Many of the individuals in the crowd were chanting and carrying signs promoting equality and protesting against racial and other forms of discrimination. With no vehicle behind him, Fields slowly reversed his vehicle to the top of the hill near the intersection of Fourth and Market streets. Fields then rapidly accelerated, ran through a stop sign and across a raised pedestrian mall, and drove directly into the crowd, striking numerous individuals, killing Heather Heyer, and injuring many others. Fields’s vehicle stopped only when it struck another vehicle near the intersection of Fourth and Water streets. He then rapidly reversed his vehicle and fled the scene.
The investigation of the case was conducted by the Federal Bureau of Investigation. United States Attorney Thomas T. Cullen, Assistant United States Attorney Christopher Kavanaugh and Stephen Curran and Rachel Kincaid, trial attorneys with the Civil Rights Division of the Department of Justice, are prosecuting the case for the United States.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Ohio Man Charged with Federal Hate Crimes Related to August 2017 Rally in CharlottesvilleRead the Press Release
Charlottesville, VIRGINIA – A federal grand jury sitting in the U.S. District Court for the Western District of Virginia in Charlottesville today charged an Ohio man with federal hate crimes, including a hate crime act that resulted in the death of Heather Heyer, for his actions during the Aug. 12, 2017 “Unite the Right Rally” in Charlottesville. Attorney General Jeff Sessions, FBI Director Christopher Wray, Acting Assistant Attorney General John Gore of the Civil Rights Division, United States Attorney Thomas T. Cullen of the Western District of Virginia, and Special Agent in Charge of the FBI’s Richmond Division Adam S. Lee, made the announcement.
James Alex Fields Jr., 21, of Maumee, Ohio, was charged in an indictment returned earlier today with:
- one count of a hate crime act resulting in the death of Heather Heyer (18 U.S.C. § 249);
- 28 counts of hate crime acts causing bodily injury and involving an attempt to kill (18 U.S.C. § 249); and
- one count of racially motivated violent interference with a federally protected activity (18 U.S.C. § 245(b)(2)), resulting in the death of Heather Heyer, for driving his car into a crowd of protestors on a downtown street in Charlottesville, Virginia.
“At the Department of Justice, we remain resolute that hateful ideologies will not have the last word and that their adherents will not get away with violent crimes against those they target,” Attorney General Jeff Sessions said. “Last summer’s violence in Charlottesville cut short a promising young life and shocked the nation. Today’s indictment should send a clear message to every would-be criminal in America that we aggressively prosecute violent crimes of hate that threaten the core principles of our nation. I want to thank the FBI as well as our fabulous prosecutors Stephen Curran, Christopher Kavanaugh, and Rachel Kincaid for their hard work on this case.”
“As this case indicates, our office will aggressively prosecute hate crimes and other civil-rights offenses committed because of the actual or perceived race, color, religion, or national origin of any individual or group,” U.S. Attorney Thomas T. Cullen stated. “We are grateful to the FBI and our state and local law-enforcement colleagues who conducted the parallel federal and state investigations in a cooperative fashion, enabling us to vindicate this critical federal interest.”
"Hatred and violence have no place in our communities," said FBI Director Christopher Wray. “The investigation of hate crimes is a top priority of the FBI, and we will continue to work with our partners to ensure those who perpetrate such despicable acts are held accountable.”
“The events of Aug. 12, 2017, in Charlottesville are a grim reminder of why the FBI prioritizes its investigations of civil rights violations among the top of its criminal programs. I hope today will also be a reminder to those who are motivated by hate and intent on committing violence; we are going to be there, just as we were in this case,” said FBI Special Agent in Charge Adam S. Lee of the Richmond Division, who also oversees the office in Charlottesville. “I want to thank the Civil Rights Division and the United States Attorney’s Office for their outstanding partnership, my team of FBI agents and analysts who worked tirelessly to put the case together, and the business owners and residents of Charlottesville who worked with us and provided a massive volume of evidence in this case.”
According to the indictment, on or before Aug. 8, 2017, Fields decided to attend the Unite the Right Rally in Charlottesville, Virginia. The Unite the Right rally was scheduled to occur on Aug. 12, 2017, at Emancipation Park and was widely publicized on social media and internet sites associated with white supremacist individuals and groups.
On the morning of Aug. 12, 2017, Fields arrived in and around the vicinity of Emancipation Park in Charlottesville. Multiple groups and individuals, including Fields, engaged in chants promoting or expressing white supremacist and other racist and anti-Semitic views. After an “unlawful assembly” was declared, rally participants, including Fields, dispersed the area. Fields returned to his vehicle and soon after drove to the vicinity of the intersection of Fourth and East Market streets in downtown Charlottesville.
As alleged in the indictment, Fields drove his car onto Fourth Street, a narrow, downhill, one-way street in downtown Charlottesville. At around the same time, a racially and ethnically diverse crowd of individuals was gathered at the bottom of the hill, at the intersection of Fourth and East Water streets. The indictment alleges that Fields slowly proceeded in his vehicle toward the crowd, stopped, and then observed the crowd while idling in his vehicle. Many of the individuals in the crowd were chanting and carrying signs promoting equality and protesting against racial and other forms of discrimination. With no vehicle behind him, Fields slowly reversed his vehicle to the top of the hill near the intersection of Fourth and Market streets. Fields then rapidly accelerated, ran through a stop sign and across a raised pedestrian mall, and drove directly into the crowd, striking numerous individuals, killing Heather Heyer, and injuring many others. Fields’s vehicle stopped only when it struck another vehicle near the intersection of Fourth and Water streets. He then rapidly reversed his vehicle and fled the scene.
The investigation of the case was conducted by the Federal Bureau of Investigation. United States Attorney Thomas T. Cullen, Assistant United States Attorney Christopher Kavanaugh and Stephen Curran and Rachel Kincaid, trial attorneys with the Civil Rights Division of the Department of Justice, are prosecuting the case for the United States.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Oakdale prisoner pleads guilty to attempting to escape correctional centerRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a federal prisoner in Oakdale pleaded guilty Tuesday to attempting to escape by climbing over a razor wire perimeter fence.
Lucas Gregory Woodard, 41, an inmate at the Federal Correctional Center in Oakdale, Louisiana, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of attempted escape. The plea will become final when accepted by U.S. District Judge Robert G. James. According to the guilty plea’s factual basis, U.S. Bureau of Prison staff at the Federal Correctional Center in Oakdale discovered two inmates, Woodard and codefendant Nicholas Bickle, 40, ensnared in razor wire on the perimeter fence and ground that encompassed the correction center on October 11, 2017. Staff had to pry open and cut the coils of razor wire in several places in order to remove Woodard and Bickle.
The defendants face up to five years in prison, three years of supervised release and a $250,000 fine. Bickle pleaded guilty on June 6, 2018 to one count of attempted escape. The defendants are scheduled to be sentenced October 1, 2018
The FBI and U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
North Bay Resident Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
SAN FRANCISCO – Lara Karakasevic, aka Lara Castle, pleaded guilty in federal court yesterday to conspiring to defraud the United States, announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation (IRS-CI), Acting Special Agent in Charge Tara Sullivan. The plea was accepted by the Honorable Vince Chhabria, U.S. District Judge.
According to her plea agreement, Karasevic, 48, of St. Helena, Calif., admitted that between July 2008 and June of 2009, she and a coconspirator agreed to defraud the United States by obstructing the lawful function of the IRS by deceitful or dishonest means.
Karakasevic owned an internet-based consulting business called TTF Consulting, LLC, which operated out of a home in Petaluma. In exchange for a fee, TTF Consulting electronically transmitted for its clients certain forms to the IRS, including Forms 1099-OID. Form 1099-OID is a form used to report annual interest on certain types of securities. As part of the scheme, Karakasevic’s coconspirator received information from TTF Consulting clients, reviewed the information, and provided the information to Karakasevic so Karakasevic could complete the forms and submit the forms to the IRS. Between April 2009 and June 2009, Karakasevic prepared six forms for TTF Consulting clients knowing that the forms were false. Specifically, the forms reported false amounts of interest income and tax withholdings from certain financial institutions. In addition, after filing the false forms, TTF Consulting informed its clients that the clients could later file tax returns based on those forms. Karakasevic acknowledged that she was aware of a high probability that the purpose of the conspiracy was to obstruct and defeat the IRS’s efforts to collect income taxes and that, after October 2008, when she knew the purpose of the conspiracy was unlawful, she nevertheless continued with the scheme. In addition, Karakasevic submitted a 2005 federal income tax return on her own behalf requesting a $291,836 refund based on a false and fraudulent Form 1099-OID. Karakasevic admitted that, in sum, the intended tax refunds from the false and fraudulent tax returns submitted to the IRS based on her conduct amounted to $1,231,578.
On June 24, 2014, a federal grand jury handed down an indictment charging Karakasevic with one count of conspiracy to defraud the United States, in violation of 18 U.S.C. § 371, and one count of filing a false tax return, in violation of 26 U.S.C. § 7206(1). Karakasevic pleaded guilty to the first charge. The second charge will be dismissed at the time of sentencing if Karakasevic complies with the terms of the plea agreement.
Karakasevic is currently free on bond. Judge Chhabria scheduled her sentencing hearing for October 2, 2018. Karakasevic faces a maximum statutory penalty of five years in prison and a fine of $250,000 for the conspiracy charge. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the IRS-CI.
New York Man Charged with Illegal Possession of a FirearmRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Timothy Ortiz, a/k/a “Tyson,” 25, of New York, was charged by criminal complaint in U.S. District Court with possession of a firearm by a felon.
According to court documents, on September 26, 2016, Ortiz was involved in an argument which led to his fatal shooting of Jonathan Methot using a silver Ruger, new model Blackhawk, .357 revolver at a duplex apartment building in Biddeford. Ortiz was prohibited from possessing the firearm as the result of 2016 Maine felony convictions for aggravated sex trafficking and heroin distribution.
Ortiz faces up to ten years in prison and a fine of up to $250,000 on the charge. His initial appearance is scheduled for 2:30 today in U.S. District Court.
This case was investigated by the Biddeford Police Department; the Maine State Police; the Maine Attorney General’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the FBI; and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
New Orleans man sentenced to 57 months in prison for viewing child pornography onlineRead the Press Release
NEW ORLEANS, La. – United States Attorney David C. Joseph announced today that a New Orleans man was sentenced to four years and nine months in prison for viewing child pornography.
Michael Calagna, 66, of New Orleans, Louisiana, was sentenced by U.S. District Judge Martin L.C. Feldman on one count of accessing or viewing child pornography. He was also sentenced to five years of supervised release. According to the guilty plea, law enforcement began investigating an online video teleconferencing service in 2015 that specialized in sharing child pornography to its viewers. The agents recorded the presentations and noted that Calagna was a viewer at his New Orleans home. During the video chats, Calagna expressed his interest in pornography showing children ages five and up.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security conducted the investigation. Assistant U.S. Attorneys John Luke Walker and David J. Ayo prosecuted the case.
New Haven Gang Member Sentenced to 15 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KEITH YOUNG, also known as “Capo,” “Bapo” and “Poncho,” 28, of Hamden, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 180 months of imprisonment, followed by five years of supervised release, for his role in a violent New Haven street gang.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. YOUNG was a member and leader of the RSGB. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms and used drug addicts as straw purchasers of firearms. Members then brought the firearms back to New Haven and distributed them to gang members.
YOUNG had a role in three gang-related murders in 2011. On June 24, 2011, Donell Allick was shot and killed as he stood in his New Haven home. The investigation revealed that, on that date, Benton, YOUNG, Luis Padilla and Kavon Rogers drove in a car searching for a rival gang leader that Benton intended to murder. Instead, Benton encountered Allick, with whom Benton was angry over a drug transaction. After Benton, Padilla and YOUNG exited the car, Benton fired multiple shots through an open kitchen window, killing Allick. Benton, Padilla and YOUNG then returned the car, where Rogers had been waiting. Rogers then drove to a location where Benton hid the gun.
In September 2011, RSGB leadership ordered Robert Short, also known as “Santana,” to murder Darrick Cooper, who was a leader of a rival gang and seen as a threat. In the early morning hours of September 19, 2011, Short lured Cooper to a location in Hamden and shot Cooper in the back of the head as Cooper walked up a staircase. The investigation revealed that YOUNG had offered to help Short kill Cooper. YOUNG was with Short and Cooper shortly before Cooper’s murder and, after the murder, YOUNG drove Short to a location to dispose of the firearm used in the murder.
In December 2011, YOUNG and Trevor Murphy, also known as “Snookie,” planned a robbery of drugs and cash from Joseph Zargo, and YOUNG provided a firearm for Murphy to use. Murphy ordered a quantity of ecstasy from Zargo and, just after midnight on December 23, 2011, Murphy met Zargo on Houston Street in New Haven. After Murphy took ecstasy pills from Zargo, he pulled out a firearm. When Zargo reached into his pocket, Murphy shot Zargo once in the chest. Zargo died later that morning. After the murder, Murphy fled the scene and met up with YOUNG, who had watched the robbery and murder unfold from a nearby location.
YOUNG has been detained since his arrest on September 30, 2015. On February 13, 2017, he pleaded guilty to one count of engaging in a pattern of racketeering activity, and one count of money laundering related to the transferring of drug proceeds from Maine to Connecticut through Western Union.
As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine. The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.
Benton, Padilla, Rogers, Short and Murphy pleaded guilty to various offenses stemming from this investigation. On October 4, 2017, Benton and Short were sentenced to 40 years of imprisonment and 30 years of imprisonment, respectively; on October 5, 2017, Murphy was sentenced to 30 years of imprisonment, and on April 9, 2018, Rogers was sentenced to 12 years of imprisonment. Padilla awaits sentencing.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Jocelyn Kaoutzanis and Peter Markle. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
New Castle Man Conspired to Distribute Crack CocaineRead the Press Release
PITTSBURGH - A resident of New Castle, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to distribute 28 grams or more of crack cocaine, United States Attorney Scott W. Brady announced today.
Waverly Primm, age 30, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that in 2015, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and other agencies joined forces in a long-term wiretap investigation of drug trafficking in New Castle. The investigation revealed that Primm conspired with others to distribute crack cocaine, which was transported from Buffalo, NY, to the New Castle area for further distribution.
Judge Fischer scheduled sentencing for November 20, 2018 at 1 p.m. 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 offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department, and the Lawrence County Drug Task Force conducted the investigation that led to the prosecution of Primm.
Multiple convictions in federal sex trafficking casesRead the Press Release
PRESS RELEASE
Indianapolis B Josh J. Minkler, the United States Attorney for the Southern District of Indiana, announced today the convictions of multiple offenders in two separate sex trafficking cases.
“Sex trafficking, particularly of children, has no place in this country,” said Minkler. “Our children should be able to grow up without being offered for sale by adults who seek to profit from their vulnerability.”
In the first case, United States v. James Young, four offenders were sentenced for their varying roles in trafficking four minors and other adults over a two-year period beginning in 2013. Young’s trafficking did not end until he was arrested in 2015. While he was on home detention and probation for promoting prostitution, Young trafficked teenagers and prostituted adults out of a motel on the Eastside of Indianapolis using online sex trafficking forums. IMPD and the FBI first focused on Young when a child was arrested for prostitution and she disclosed the ways in which Young had trafficked her. From there, investigators put together their case using social media, online sex trafficking advertisements, historical police reports, and motel records.
Young pleaded guilty to the sex trafficking of three minor girls, operating a business enterprise that prostituted adults and children, and illegal possession of a firearm. Chief Judge Jane Magnus-Stinson sentenced Young to 26 years in prison and a lifetime of supervised release. Young was also ordered to pay a total of $450,000 in restitution to five victims. Defendant Raheem Simmons pleaded guilty to interstate travel and transportation in aid of racketeering activity, specifically the sex trafficking of a minor child. He was also sentenced by Magnus-Stinson to a term of two years imprisonment, three years of supervised release and ordered to pay $2000 in restitution to an identified victim. Another defendant, in a sealed case, pleaded guilty to her role in conspiring to prostitute adults and minors.
In the second case, United States v. Nahtahna Garcia Herrera, four offenders were sentenced for their roles in trafficking two identified minor children and prostituting other adults. Using two houses on the Westside of Indianapolis, Garcia-Herrera and her co-defendants trafficked children and prostituted adults in the fall of 2016. The FBI and IMPD, working together, discovered that properties known as “the building” and “the sugar shack” were places were illegal drugs were bought and sold, and that the purchase and sale of these drugs was facilitated by prostitution. More concerning, investigators found that teenage girls were being offered up online for commercial sex acts. Their investigation led to the arrest of Garcia-Herrera and her co-defendants on varying charges stemming from the criminal enterprise.
Defendant Garcia-Herrera was sentenced to 20 years in prison for trafficking two minor girls by Judge Tanya Walton-Pratt. Defendant Vaughn Isom pleaded guilty to interstate transportation and travel in aid of racketeering for his role in promoting prostitution and the sale of illegal narcotics. Judge Walton-Pratt sentenced him to a prison term of four years and three years of supervised release. Defendant Rhonda Badger has also pleaded guilty to the same charge as Isom and is awaiting sentencing. Finally, defendant Tyrece Jones pleaded guilty to the sex trafficking of a minor child and will be sentenced on July 27, 2018, by Judge Sarah Evans Barker.
"The exploitation of vulnerable youth is, unfortunately, a very real and growing issue in our country and one the FBI simply will not tolerate,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “We will continue to work with our partners to identify and investigate those who engage in this predatory behavior in order to ensure the safety of our children.”
IMPD Chief Bryan Roach stated, "The physiological and physical damage borne by the victims of this horrific crime is truly unimaginable and heartbreaking and deserves the full attention of law enforcement." Because of the tremendous investigative efforts and collaborative spirit of both IMPD detectives and our federal partners, together we hope to help victims restore their dignity and a greater sense of hope and prosperity."
Minkler further stated, “Teenagers are some of our most vulnerable population. Caught between the innocence of childhood and on the brink of being an adult, we must assure that teens do not fall prey to adults with malicious intentions. The children in our community are not for sale, and forcing or coercing adults to engage in acts of prostitution is repugnant. These convictions should serve as a warning not only to sex traffickers, but also to adults trying to pay for sex acts. It is a federal crime and we will not stop seeking justice for these victims.”
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 and harm children and other vulnerable victims. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1
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Moss Point Man Pleads Guilty to Illegally Possessing Methamphetamine and FirearmRead the Press Release
Gulfport, Miss. – Edward Corneilus Bridges, 37, of Moss Point, pled guilty yesterday before U.S. District Judge Sul Ozerden to possession with intent to distribute 500 grams or more of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI).
On March 22, 2018, a state search warrant was executed at Bridges’ home in Moss Point. Upon entering the home, agents located more than 500 grams of methamphetamine, cocaine, scales, large amounts of cash, marijuana, ecstasy pills, a ledger, ammunition cases and an SKS rifle.
Later that day, Bridges met with the FBI and admitted he owned the narcotics and gun, and he further admitted to intending to distribute the methamphetamine. He said he destroyed his phone prior to meeting with the FBI by throwing it into the Escatawpa River.
Bridges will be sentenced on October 12, 2018, by Judge Ozerden, and faces a maximum penalty of life in prison and a $10 million fine for possessing the methamphetamine and five consecutive years and a $250,000 fine for possessing the SKS in furtherance of the drug trafficking crime.
The case was investigated by FBI Safe Streets Task Force and prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Monroe Area Doctor Charged with Illegal Distribution of Prescription Drugs and Health Care FraudRead the Press Release
DR. POMPY WAS ACQUITTED OF THE CHARGES ALLEDGED IN THE INDICTMENT DESCRIBED IN THE PRESS RELEASE BELOW
A grand jury returned an indictment yesterday charging Dr. Lesly Pompy, 57, of Monroe, Michigan with unlawful distribution of prescription drugs and health care fraud, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Timothy J. Plancon, U.S. Drug Enforcement Administration, Detroit Field Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
The 37-count Indictment charges that between 2012 and 2016, Dr. Pompy unlawfully distributed more than 4,221,892 dosage units of Schedule II controlled substances and over 6,196,642 total dosage units of all controlled substances outside the course of professional medical practice. During that time frame, he also submitted claims to Medicare, Medicaid and Blue Cross Blue Shield totaling approximately $16,856,683. The majority of these fraudulent claims were seeking reimbursement for the costs of office visits and other services that were not medically necessary and that Dr. Pompy never rendered.
“The damage that the proliferation of opioid distribution has done to our community, like many across the United States has been devastating,” stated United States Attorney Schneider. “It’s particularly disturbing when the distributor is a medical professional
DEA Special Agent in Charge Plancon stated, “This investigation was only possible because of the collaborative efforts of our federal and local law enforcement partners including but not limited to the Monroe Area Narcotics and Investigation Team. The indictment of Pompy reminds the citizens we serve that collectively we are ridding the community of crime one drug dealer at a time.”
Dr. Pompy was arraigned this afternoon in federal court and was released on bond.
This case is being prosecuted by Assistant United States Attorney Brandy R. McMillion and Health Care Fraud Chief Wayne F. Pratt. McMillion serves as the Opioid Fraud Abuse and Detection Unit Prosecutor for the Eastern District of Michigan. This Department of Justice initiative uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit.
The case was investigated by the U.S. Drug Enforcement Administration and the U.S. Department of Health and Human Services, Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Milford Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
A man who received child pornography pled guilty on June 26, 2018, in federal court in Sioux City.
Joe Elliott Sinnott, 27, from Milford, Iowa, was convicted of one count of receiving child pornography.
In a plea agreement, Sinnott admitted that from January 2018 until April 27, 2018, he knowingly used KiK messenger to receive child pornography. Sinnott also admitted to receiving fully nude photographs of a 15-year-old female that he had met in person in Minnesota last year.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Sinnott remains in custody of the United States Marshal pending sentencing. Sinnott faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and 5 years to life of supervised release following any imprisonment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case is being prosecuted by Assistant United States Attorney Ajay J. Alexander and was investigated by the Iowa Division of Criminal Investigations and Spirit Lake Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-4033.
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Mexican National Sentenced to More Than 7 Years in Prison for Trafficking Heroin into ConnecticutRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE DAVID SILVA PESTANO, 33, a citizen of Mexico, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 87 months of imprisonment for trafficking heroin.
According to court documents and statements made in court, SILVA PESTANO and others conspired to traffic multi-kilogram quantities of heroin from Mexico to the Bridgeport, Connecticut area. On multiple occasions between approximately April 2015 and March 2017, SILVA PESTANO personally transported more than 30 kilograms of heroin into Connecticut.
On February 14, 2017, SILVA PESTANO was arrested in Nogales, Arizona, after he crossed the border on a motorcycle carrying 11.94 kilograms of heroin in a concealed compartment.
On March 16, 2017, a grand jury in Hartford returned an indictment charging SILVA PESTANO and six other individuals with conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and related offenses. SILVA PESTANO also was charged in the District of Arizona with possession with intent to distribute one kilogram or more of heroin. The Arizona case was transferred to the District of Connecticut for further prosecution.
SILVA PESTANO has been detained since his arrest. On December 22, 2017, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin, and one count of possession with intent to distribute heroin.
SILVA PESTANO will be deported to Mexico when he completes his prison term.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.