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16 May 2018
Dubuque Clinic Agrees to Pay $40,000 in False Claims Penalties to Resolve Allegations Related to 8 Controlled Substance RefillsRead the Press Release
Crescent Community Health Center, a non-profit health center in Dubuque, Iowa, agreed to pay $40,000 in penalties to resolve False Claims Act allegations that, during a five month period in 2013, Crescent employees who lacked the requisite credentials or authority issued 8 controlled substance refills that were paid for by Medicare or Medicaid. The Center also agreed to pay $7,503.80 to resolve allegations that, during this same period, Crescent employees improperly issued 71 prescriptions or prescription refills for non-controlled substances that were eventually paid for by Medicare or Medicaid.
The Center did not concede liability as part of the agreement but did admit that the 8 controlled substance refills were not supported by documentation that the prescriptions were authorized by qualified practitioners.
“Health care providers should be on notice that our office will use every appropriate enforcement tool to curb the availability of unauthorized or misused prescription drugs,” said United States Attorney Peter E. Deegan, Jr. “This office takes seriously its obligation to enforce the nation’s laws aimed at protecting public health and taxpayer dollars.”
The allegations resolved by the settlement arose from an investigation jointly conducted by the Department of Health and Human Services Office of Inspector General and the State of Iowa’s Medicaid Fraud Control Unit. False Claims Act cases also arise under the qui tam or whistleblower provisions of the Act, which permit a private party with knowledge of false claims to bring suit on behalf of the United States and then share in any recovery.
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District Man Pleads Guilty to Federal Firearms Offense Following Discovery of Guns and Drugs in His ApartmentRead the Press Release
WASHINGTON – Leroy Jones, 32, of Washington, D.C., pled guilty today to one count of possessing firearms, including a short-barreled rifle, in furtherance of a drug trafficking offense, announced U.S. Attorney Jessie K. Liu, Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jones pled guilty in the U.S. District Court for the District of Columbia. The charge carries a mandatory-minimum sentence of 10 years in prison and a statutory maximum of life. The plea, which is subject to the Court’s approval, calls for an agreed-upon sentence of 10 years in prison, to be followed by five years of supervised release. The Honorable Senior Judge Reggie B. Walton scheduled sentencing for Aug. 10, 2018.
According to a statement of offense submitted at the time of the plea, on June 28, 2017, Deputy U.S. Marshals came to an apartment building in the 1300 block of Kenyon Street NW to conduct an eviction. Building management provided them with the keys to the apartment. The deputy marshals announced their arrival for an eviction and entered the unit. No one was inside. The deputy marshals observed suspected narcotics, ammunition, and a firearm in plain view and reported the discovery to the Metropolitan Police Department.
Officers from the Metropolitan Police Department secured the apartment while a search warrant was sought. The officers who secured the apartment locked the front door and waited inside the apartment. While they waited, Jones returned to the apartment and unlocked the front door. Officers came to the front of the unit and detained Mr. Jones in the hallway.
Officers then searched the apartment pursuant to a search warrant. They found, among other things a duffel-style bag containing a Wyndham Weaponry .223-caliber short-barreled rifle, a rifle-pistol, two handguns, several high-capacity magazines and various types of ammunition. They also discovered in the apartment a ballistic vest, loose ammunition, a loaded magazine, suspected narcotics, and $3,409 in cash.
The suspected narcotics were submitted to the U.S. Drug Enforcement Administration (DEA) and a lab analysis determined them to be mixtures of substances containing cocaine.
In announcing the plea, U.S. Attorney Liu, Marshal Hughes, and Chief Newsham commended the work of those who investigated the case from the U.S. Marshals Service and Metropolitan Police Department. They also expressed appreciation for the assistance provided by the DEA. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Catherine O’Neil, Legal Assistant Peter Gaboton, and Criminal Investigator Derek Starliper. Finally, they commended the work of Assistant U.S. Attorneys C.B. Buente, Steven B. Wasserman, Emory V. Cole, and Vincent W. Caputy, who investigated and prosecuted the case.
Detroit Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was caught with a firearm after a bar fight in Huntington in April of 2013 pled guilty today to a federal gun charge, announced United States Attorney Mike Stuart. James Anthony Mitchell, 25, entered his guilty plea to prohibited possession of a firearm by a felon. U.S. Attorney Stuart commended the investigative efforts of the Huntington Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives.
“Unfortunately, there’s nothing unusual about a felon from Detroit involved in violence in Huntington,” said United States Attorney Mike Stuart. “But make no mistake, we will continue to aggressively prosecute these cases until it is unusual.”
At approximately 3:00 a.m. on April 7, 2013, officers with the Huntington Police Department were dispatched to the Rehab bar located in the 1200 block of 4th Avenue in Huntington to respond to a large fight in the bar’s parking lot. The caller also reported that an individual was injured at the scene. When an officer arrived at Rehab, a bystander provided a description of a male who had just left the area of the fight in possession of a gun. The officer radioed the description to other officers in the area and a separate officer observed Mitchell, who matched the suspect description, walking in front of the Greyhound bus station away from Rehab. The officer conducted a frisk of Mitchell and located a loaded Taurus .38 caliber pistol that Mitchell had concealed in his waistband. Officers also discovered that Mitchell had previously been convicted of multiple felony offenses, including the offense of assault during the commission of a felony in Cabell County Circuit Court, and was prohibited from possessing a firearm.
Mitchell faces up to 10 years in federal prison when he is sentenced on August 27, 2018.
Assistant United States Attorneys Joseph F. Adams and Clint Carte are responsible for the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Dayton Man Sentenced to Six Years in Prison for Receipt of Child PornographyRead the Press Release
RENO, Nev. – A Dayton, Nevada, man was sentenced today to 78 months in federal prison for receiving approximately 850 photos and videos of child pornography, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Monte Chaix, 48, pleaded guilty on February 20, to one count of receipt of child pornography. In addition to the prison term, U.S. District Judge Howard D. McKibben sentenced him to lifetime supervised release. Chaix is also required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
According to information contained in the plea agreement and other court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Twitter about a user posting possible child pornography. Task Force Officers from the Northern Nevada Online Child Exploitation Task Force identified the user as Chaix and executed a search warrant at his residence. A forensic examination of the seized electronic devices revealed approximately 700 images and 150 videos of children being sexually abused by adults and engaged in explicit sexual conduct. During a consensual interview, Chaix admitted to searching for and downloading child pornography from the internet.
The case was investigated by the Northern Nevada Online Child Exploitation Task Force which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. Assistant U.S. Attorney Sue Fahami prosecuted the case.
If you have information regarding possible child sexual exploitation, make a report to NCMEC’s CyberTipline at www.cybertipline.org.
The 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Cyber-Criminal Residing in Latvia Convicted for Role in Operation of Counter Antivirus Service “Scan4you”Read the Press Release
A federal jury today convicted a Latvian “non-citizen,” meaning a citizen of the former USSR who had been residing in Riga, Latvia, of three counts related to his operation of “Scan4you,” an online counter antivirus service that helped computer hackers to determine whether the computer viruses and other malicious software they created would be detected by antivirus software, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracey Doherty-McCormick of the Eastern District of Virginia and Special Agent in Charge Matthew J. DeSarno of the FBI Washington Field Office’s Criminal Division.
Ruslans Bondars, 37, was convicted after a five-day jury trial of one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of conspiracy to commit wire fraud, and one count of computer intrusion with intent to cause damage and aiding and abetting. Sentencing is scheduled for Sept. 21.
“Ruslans Bondars helped hackers test and improve the malware they then used to inflict hundreds of millions of dollars in losses on American companies and consumers,” said Acting Assistant Attorney General Cronan. “Today’s verdict should serve as a warning to those who aid and abet criminal hackers: the Criminal Division and our law enforcement partners consider you to be just as culpable as the hackers whose crimes you enable—and we will work tirelessly to identify you, prosecute you, and seek stiff sentences that reflect the seriousness of your crimes.”
“Ruslan Bondars designed and operated a service that provided essential aid to some of the world’s most destructive hackers,” said Acting U.S. Attorney Doherty-McCormick. “This verdict demonstrates our commitment to holding such actors accountable. I commend the work of the agents and prosecutors, both in the United States and in Latvia, who worked together to bring him to justice.”
According to testimony at trial and court documents, from at least 2009 until 2016, Bondars operated Scan4you, which for a fee provided computer hackers with information they used to determine whether their malware would be detected by antivirus software, including and especially by antivirus software used to protect major U.S. retailers, financial institutions and government agencies from computer intrusions.
For example, one Scan4you customer used the service to test malware that was subsequently used to steal approximately 40 million credit and debit card numbers, as well as approximately 70 million addresses, phone numbers and other pieces of personal identifying information, from retail store locations throughout the United States, causing one retailer approximately $292 million in expenses resulting from the intrusion.
Another Scan4you customer used the service to assist the development of “Citadel,” a widely used malware strain that was used to infect over 11 million computers worldwide, including in the United States, and resulted in over $500 million in fraud-related losses. The Citadel developer took advantage of a special feature of Scan4you that allowed its integration directly into the Citadel malware toolkit through an Application Programming Interface, or API. The API tool allowed Scan4you users the flexibility to scan malware without the need to directly submit the malware to Scan4you’s website.
At its height, Scan4you was one of the largest services of its kind and had at least thousands of users. Malware developed with the assistance of Scan4you included some of the most prolific malware known to the FBI and was used in major computer intrusions committed against American businesses.
Scan4you differed from legitimate antivirus scanning services in multiple ways. For example, while legitimate scanning services share data about uploaded files with the antivirus community and notify their users that they will do so, Scan4you instead informed its users that they could upload files anonymously and promised not to share information about the uploaded files with the antivirus community.
The FBI Washington Field Office investigated the case. Trial Attorneys C. Alden Pelker and Ryan Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Kellen Dwyer and Laura Fong of the Eastern District of Virginia are prosecuting the case. The Government of Latvia, including the Latvia State Police International Cooperation Department, the Latvia State Police Cybercrime Unit, and the General Prosecutor’s Office of the Republic of Latvia – International Cooperation Division, provided assistance and support during the investigation. Additional assistance was provided by the Criminal Division’s Office of International Affairs, the FBI’s Atlanta and Minneapolis Field Offices and the Operational Technology Division, and the U.S. Attorney’s Offices for the District of Minnesota and the Northern District of Georgia.
Corpus Man Convicted of Downloading Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old Corpus Christi resident has admitted he possessed child pornography, announced U.S. Attorney Ryan K. Patrick. Joe Perez admitted he downloaded sexually explicit content involving prepubescent minors
In February 2016, an undercover FBI agent from the Dallas Child Exploitation Task Force was conducting an online investigation into file sharing program looking for potential offenders sharing child pornography. The agent was eventually able to download multiple files of potential child pornography from a device later associated with Perez in Corpus Christi.
A search warrant was executed at his residence, at which time authorities advised Perez he had downloaded a video approximately two hours in length. One of the screenshots of the video was entitled “PEDOPHILIA Volume 1.” He admitted he was familiar with the video and that he believed that he had recently downloaded it, claiming he had accidentally downloaded the images of child pornography as well.
Law enforcement also seized various electronic devices during the search and a forensic analysis on those devices revealed that the his smartphone contained 15 images and nine videos of child pornography. The titles of some of those images and videos clearly indicate sexually-explicit content. One of the videos depicts a prepubescent minor engaged in sexually explicit conduct.
U.S. District Court Judge John D. Rainey accepted the guilty plea today and set sentencing for Aug. 21, 2018. At that time, Perez faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Perez also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the internet.
The FBI Task Child Exploitation Task Force conducted the investigation with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Elsa Salinas is prosecuting the case which 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."
Connecticut Man Sentenced to 25 Years for Drug Conspiracy and Illegal Possession of FirearmsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Erick Adams, also known as “X,” 40, of Taftville, Connecticut, was sentenced today in U.S. District Court by Judge George Z. Singal to 25 years in prison and 5 years of supervised release for a conspiracy to distribute, and possess with intent to distribute, 280 grams or more of cocaine base, commonly known as crack, cocaine, and heroin, and being an armed career criminal in possession of firearms.
Adams pled guilty to the two offenses on June 2, 2017.
Court records reveal that between about December 2014 and January 2016, Adams and his co-conspirators distributed crack, cocaine and heroin from “trap houses” in Biddeford, Maine, and used a storage unit to store drugs and firearms. On January 6, 2016, law enforcement agents arrested Adams and an armed co-conspirator at a hotel room in Saco, Maine, and seized about 103 grams of crack, 33 grams of cocaine, 6 grams of heroin, and $26,000 in U.S. currency. The following day, agents seized about 685 grams of crack, 69 grams of cocaine, 50 grams of heroin, and four handguns from the storage unit. Adams had multiple prior felony convictions and was prohibited from possessing firearms.
The investigation was conducted by the Maine Drug Enforcement Agency, the U.S. Drug Enforcement Administration, the FBI, the Biddeford Police Department, and the U.S. Marshals Service, and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Collierville Man Sentenced to 80 Months’ Imprisonment for Possession of Child PornographyRead the Press Release
Memphis, TN – A Collierville man was sentenced to 80 months in federal prison for possession of child pornography. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on November 21, 2014, Detective Robert Erdely of the Western Pennsylvania Crimes Against Children Task Force was working in an undercover capacity, using specialized software to identify individuals possessing and sharing known images of child pornography using peer-to-peer file-sharing software. Erdely’s program identified a computer utilizing an I.P. address, which was later identified as being assigned to Patrick Harris of Collierville, Tennessee. A search of Harris’ residence yielded numerous electronic devices containing thousands of images of child pornography. Harris pleaded guilty to possession of child pornography in December 2017. On May 14, 2018, U.S. District Judge Sheryl H. Lipman sentenced Harris to 80 months in federal prison.
U.S. Attorney D. Michael Dunavant said: “With new and ever-changing technology, criminals are finding new and increasingly disturbing ways to victimize and exploit child victims. This case demonstrates that no matter where offenders are located, our Project Safe Childhood initiative and FBI partners will find them and hold them accountable for internet crimes against children.”
This case was investigated by the FBI and the Western Pennsylvania Crimes Against Children Task Force as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.
Assistant U.S. Attorney Kasey A. Weiland prosecuted this case on the government’s behalf.
Cleveland man with multiple violent felonies convicted of stealing handgun from gun show in BereaRead the Press Release
A jury convicted a Cleveland man of stealing a firearm from a gun show in Berea.
Anthony Lett, 40, was convicted on one count of being a felon in possession of a firearm and one count of being in possession of a stolen firearm following a two-day trial in U.S. District Court.
"This is a person with a long history of violence who has no business having a firearm," U.S. Attorney Justin Herdman said. "Our community is safer with him behind bars."
Lett is scheduled to be sentenced on Aug. 29.
Lett stole a Kahr Arms .45-caliber pistol from a gun show in Berea on April 30, 2016. Lett has prior convictions that make it illegal for him to have a firearm, including convictions for kidnapping, felonious assault, carrying a concealed weapon, drug trafficking and other crimes, according to court documents.
Lett is currently serving 20 years in state prison for unrelated convictions including rape, attempted murder, aggravated robbery and other crimes, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Kelly Galvin and Elliot Morrison following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berea Police Department, with assistance from the Cleveland Division of Police.
Cleveland man pleads guilty to stealing $77,000 in federal grants designed to help Native AmericansRead the Press Release
A Cleveland man pleaded guilty to stealing more than $77,000 in federal grants designed to help Native Americans.
Robert Roche, 71, pleaded guilty two counts of theft from programs receiving federal funds. He is scheduled to be sentenced Aug. 29.
“This defendant stole from taxpayers and betrayed the Native American families he purported to help,” U.S. Attorney Justin E. Herdman said. “He took tens of thousands of dollars designated for mental health and wellness programs and put the money in his own pockets.”
“Mr. Roche stole federal grant funds that were intended to assist tribal and urban American Indian communities with the tools and resources needed to plan and design coordinated systems of care to support mental health and wellness for children, youth and families,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General - Chicago Region. “Mr. Roche's actions deprived needy families of precious resources and squandered vital taxpayer dollars. The OIG will continue to work with our law enforcement partners to identify, investigate and seek prosecution of individuals who seek to defraud HHS programs.”
Roche served as executive director of the American Indian Education Center (AIEC), a Parma-based nonprofit established in 1995 to support Native American causes in Northeast Ohio, according to court documents.
Craig McGuire operated McGuire & Associates LLC, a company that wrote grant applications and provided evaluation services. Roche entered into an agreement with McGuire & Associates in April 2011 to draft grant proposals on behalf of the AIEC. Later that year, McGuire submitted an application on behalf of the AIEC to receive a Circle of Care grant, offered through the Substance Abuse and Mental Health Services Administration (SAMHSA). The grant was designed to provide Native American communities with the tools and resources to design programs to support mental health and wellness for children and families, according to court documents.
The AIEC’s application contained numerous false statements including: misrepresenting the date the AIEC was established; falsely claiming the AIEC had a wellness department and a “Positive Paths” afterschool program serving 500 children when no such department or program existed; fraudulently listing people the AIEC allegedly employed and mischaracterizing the description of the AIEC’s building and alleged physical amenities, according to court documents.
SAMHSA awarded the AIEC a Circle of Care grant on Sept. 1, 2012 of approximately $302,340 for FY 2012. On June 26, 2012, SAMHSA awarded the second year of a Circle of Care grant in the amount of $308,040 for FY 2013, according to court documents.
The AIEC received approximately $482,766 from SAMHSA from 2011 through 2013. The AIEC did not receive full funding because SAMHSA placed it in “high risk” status, according to court documents.
Roche paid himself through AIEC on several occasions as a project coordinator for the Circle of Care project. Roche was not identified as the project coordinator on the grant application and such payments were precluded by regulation, according to court documents.
Roche converted approximately $77,097 of that money for his own personal use, according to court documents.
McGuire pleaded guilty to theft and is awaiting sentencing.
This case is being prosecuted by Assistant United States Attorneys Robert J. Patton and Alejandro A. Abreu following an investigation by the Department of Health and Human Services – Office of Inspector General.
Clairton Man Sentenced to 41 Months in Prison for Conspiring to Distribute Heroin and CocaineRead the Press Release
PITTSBURGH, PA – A former resident of Clairton, Pennsylvania, has been sentenced in federal court to 41 months of imprisonment on his conviction of conspiracy to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Malcolm Howard, 26.
According to information presented to the court at the time he entered a guilty plea, Howard, from March through June 2017, purchased 10 "bricks" of heroin and three ounces of cocaine twice per month from his codefendant, Skylar Carter, and was personally responsible for the distribution of more than 60 grams of heroin and more than 500 grams of cocaine in the Clairton area. He was the first of the 21 defendants charged in the conspiracy to be sentenced. In imposing sentence, Judge Schwab highlighted Howard’s prior criminal history, which included a felony drug trafficking conviction, and his repeated disregard for the law.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Career Criminal Sentenced to Federal Prison for Firearms and DrugsRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old Robstown resident has been ordered to federal prison following his conviction for possessing a firearm during a drug trafficking offense and being a felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Isaiah Ryan Cantu pleaded guilty Feb. 14, 2018.
Today, U.S. District Judge Nelva Gonzalez Ramos sentenced Cantu to a total of 168 months imprisonment – 80 and 88 months, respectively, for the possessing a firearm during a drug trafficking crime and being a felon in possession. He was further ordered to serve five years of supervised release. Cantu had previously been convicted in state court for numerous felonies and was determined to be career offender by the court.
In October 2016, narcotics officers with the Robstown Police Department executed a search warrant at Cantu’s residence. During the search, the officers recovered a backpack that contained multiple small baggies of cocaine, 25 packages of synthetic cannabinoids, several packages of crack cocaine and a loaded .45 caliber semi-automatic handgun. As a previously convicted felon, Cantu is prohibited from possessing firearms and ammunition per federal law.
Cantu will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Robstown Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Carbondale Woman Sentenced on Healthcare Fraud ChargesRead the Press Release
On May 16, 2018, Stephanie L. Patterson, of Carbondale, Illinois, was sentenced in the U.S. District Court in Benton, Illinois on the charge that she engaged in a scheme to steal from a health care program. The district court sentenced Patterson to five years of probation with the first four months to be served in home detention. She was also ordered to pay $81,131.20 in restitution to the Home Services Program and a $100.00 special assessment.
Court records indicate that Patterson defrauded the State of Illinois Medicaid Home Services Program by falsely claiming and taking payments for personal assistant services not actually performed. The Home Services Program is a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Patterson falsely billed the program between January 2011 to June 2016, when she falsely claimed that a relative purportedly rendered personal assistant services to a customer when, in fact, the relative was incarcerated at the time services were claimed to be performed. As a result, Patterson improperly billed hundreds of hours of services and obtained $81,131.20 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, and the Illinois State Police, Medicaid Fraud Control Bureau. The case was prosecuted by Assistant United States Attorney Michael J. Quinley.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Bumble Bee CEO Indicted for Price FixingRead the Press Release
A federal grand jury returned an indictment against Christopher Lischewski, the President and Chief Executive Officer of Bumble Bee Foods LLC, for participating in a conspiracy to fix prices for packaged seafood sold in the United States, the Department of Justice announced today.
The indictment, filed in the U.S. District Court for the Northern District of California in San Francisco, charges Lischewski with participating in a conspiracy to fix prices of packaged seafood beginning in or about November 2010 until December 2013.
“The Antitrust Division is committed to prosecuting senior executives who unjustly profit at the expense of their customers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “American consumers deserve free enterprise, not fixed prices, so the Department will not tolerate crimes like the one charged in today’s indictment.”
“This indictment demonstrates the personal accountability of senior leadership at corporations,” said Special Agent in Charge John F. Bennett. “The FBI and the Department of Justice will hold corporate leaders accountable for criminal actions that defraud American families.”
The one-count felony indictment charges that Lischewski carried out the conspiracy by agreeing to fix the prices of packaged seafood during meetings and other communications. The co-conspirators issued price announcements and pricing guidance in accordance with these agreements. Bumble Bee has already pleaded guilty and been sentenced to pay a criminal fine of at least $25 million as a result of the government’s ongoing investigation.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Lischewski is the fourth individual to be charged as a result of the ongoing federal antitrust investigation into the packaged seafood industry, which 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 packaged-seafood industry should contact the Antitrust Division’s San Francisco Office at (415) 934-5300, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at (415) 553-7400.
Buffalo Man Pleads Sentenced for Distributing FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeremy Jorge, 21, of Buffalo, NY, who was convicted of distribution of fentanyl, was sentenced to 24 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Scott S. Allen, Jr., and Wei Xiang, who handled the case, stated that on at least seven occasions, between December 2016 and September 2017, the defendant sold what he marketed as heroin in exchange for sums of money between $300 and $1,300. A forensic analysis later determined that the substances contained a mixture of various controlled substances including heroin, fentanyl, butyryl fentanyl, furanyl fentanyl, and U-47700. In total, Jorge distributed over 24 grams of fentanyl in the community.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Bronx Man Convicted of 2010 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOSE SANTIAGO-ORTIZ was found guilty of murder, participating in a narcotics conspiracy, and firearms offenses yesterday after a one-week jury trial before the Honorable Lewis A. Kaplan.
U.S. Attorney Geoffrey S. Berman said: “A unanimous jury convicted Jose Santiago-Ortiz of killing Jerry Tide in cold blood. In addition, Santiago-Ortiz was convicted of narcotics conspiracy and firearms offenses. We hope today’s verdict will bring some solace to the victim’s family, while also taking a violent offender off the street.”
According to the allegations contained in the Complaint and the Indictment and the evidence presented in court during the trial:
On September 11, 2010, SANTIAGO-ORTIZ shot and killed Jerry Tide in the vicinity of Jerome Avenue and 182nd Street in the Bronx. Between 2010 and November 2015, SANTIAGO-ORTIZ was the leader of a violent heroin trafficking enterprise that trafficked kilogram quantities of heroin, stamped “Flow,” in the Bronx and to Rutland, Vermont. SANTIAGO-ORTIZ killed Jerry Tide in part to increase SANTIAGO-ORTIZ’s position within the Flow Heroin Enterprise. In addition, in 2015, members of the Flow Heroin Enterprise engaged in several shootings with rival drug dealers in the Bronx.
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SANTIAGO-ORTIZ, 27, of the Bronx, New York, was found guilty of one count of murder in aid of racketeering, which carries a mandatory sentence of life in prison; one count of murder while engaged in a narcotics conspiracy, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison; one count of conspiring to distribute one kilogram and more of heroin, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and one count of using firearms in furtherance of a narcotics conspiracy, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendant will be determined by the judge.
SANTIAGO-ORTIZ is scheduled to be sentenced on September 18, 2018.
Mr. Berman thanked the FBI’s New York Field Division for their work on the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Shawn Crowley, Lauren Schorr, and George Turner are in charge of the prosecution.
Broken Arrow Man Sentenced to 30 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
Chief District Judge Gregory K. Frizzell sentenced Noel McFadden, 71, of Broken Arrow, to 30 years in prison followed by a lifetime of supervised release for sexual exploitation of a child. McFadden must also pay restitution in the amount of $18,365.94.
On February 16, 2018, McFadden pleaded guilty to one count of sexual exploitation of a child. In April 2017, McFadden knowingly coerced a minor under the age of 12 to take pictures of her genitals with a cellphone he had given her.
United States Attorney Shores stated, “I applaud the hard work of the FBI and the Broken Arrow police department in bringing this child predator to justice. But most importantly, it was due to the courageous efforts of two small children and their family who made sure Noel McFadden will never harm another child. They stood up to their abuser and ended it.”
Assistant United States Attorney Jeffrey A. Gallant said, “At sentencing, several relatives of the victim spoke about the harm inflicted by McFadden. One of his victims, only 9 years old, made a powerful statement in open court where she emphasized she was not a victim, but a strong survivor. She stood up to McFadden and ensured no other children would ever be harmed again by him.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The charges are the result of an investigation by the Federal Bureau of Investigation and the Broken Arrow Police Department. Assistant United States Attorney Jeffrey A. Gallant handled the prosecution of this case.
Berkeley County man facing firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shawn D. Schell, of Hedgesville, West Virginia, appeared before a federal magistrate judge today after being indicted by a federal grand jury sitting in Martinsburg on May 15, 2018, on a firearms charge, United States Attorney Bill Powell announced.
Schell, also known as “Shaun D. Schell,” age 36, was indicted on one count of “Unlawful Possession of a Firearm.” Schell, having previously been convicted of three felonies, is accused of having a .22 caliber rifle in November 2017 in Berkeley County.
Schell faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Armed Drug Trafficker Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Phillip Taylor, 28, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to possession with intent to distribute cocaine and possession of a firearm and ammunition by a convicted felon. The charges carry a maximum penalty of 30 years in prison, and a fine of $2,000,000 or both.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that Taylor, a two-time convicted felon, was arrested following a police investigation which took Rochester Police officers to 173 Anderson Avenue to investigate a report of a person dropping a handgun in the parking lot of the business located there. When officers arrived, they saw a person, later identified as Taylor, get into the driver’s seat of a blue Ford Escape and drive off after officers went to speak with him about the reported handgun. The defendant drove his car in the direction of one of the responding officers, coming within inches before driving away. Taylor also struck a brick structure with his vehicle as he exited the parking lot and continued traveling westbound on Anderson Avenue as officers pursued him. Officers followed Taylor in police cars onto College Avenue where the defendant struck a tree. Undeterred, Taylor continued to flee on foot with officers in pursuit. During the chase, officers could see the defendant holding the right side of his pants while making several attempts to remove something from his pants pocket. Taylor was taken into custody in the area of 100 College Avenue. Officers searched the defendant and recovered a loaded .380 caliber semiautomatic handgun in his pocket, $704 in cash, and 12 vials containing cocaine.The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict.
Sentencing is scheduled for September 4, 2018 at 3:30 p.m. before Judge Geraci.
Another Corpus Christi Man Sent to Prison on Child Pornography ChargeRead the Press Release
CORPUS CHRISTI, Texas - A 26-year-old Corpus Christi man has been sent to after authorities discovered he possessed more than 22,000 child pornography images, announced U.S. Attorney Ryan K. Patrick. Nicolas Hamm pleaded guilty to possession of child pornography on Feb. 13, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Hamm to 108 months in prison. He was further ordered to serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. At the hearing, the court heard evidence that Hamm admitted to sexually assaulting a four-year-old family member when he was a juvenile.
In January 2017, authorities in Oklahoma were investigating an individual for sex trafficking charges. A search of that person’s cellular telephone revealed communications via a messenger application with another person with a user name of “jax1821.” The communications involved the sexual exploitation of children and user name of “jax1821” was later linked to Hamm
In December 2017, law enforcement executed a search warrant at Hamm’s residence and seized several digital devices which led to the discovery of more than 22,000 images and 3,600 videos of child pornography. Many of the videos portrayed prepubescent females involved in sexually explicit conduct with adult males.
Hamm has been and will remain in custody pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which 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."
A Former North Texas Mayor and a Land Developer Indicted on Public Corruption Charges in Zoning ConspiracyRead the Press Release
PLANO, Texas –The former mayor of Richardson, Texas and a land developer who she eventually married, have been indicted on federal conspiracy violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Laura Jordan, also known as Laura Maczka, 53, and Mark Jordan, 51, both of Plano, Texas were named in a seven-count indictment charging them with conspiracy to commit honest services wire fraud, honest services wire fraud, conspiracy to commit bribery, and bribery concerning programs receiving federal funds. A federal grand jury returned the indictment on May 10, 2018. Maczka and Jordan made initial appearances before U.S. Magistrate Judge Kimberly Priest Johnson today.
According to the indictment, from May 2013 through April 2015, Maczka was the mayor of Richardson, Texas, and Jordan was a land developer. The indictment alleges that Maczka and Jordan conspired to devise and execute a scheme to defraud and deprive City of Richardson residents of the honest services of the Mayor through bribery. Maczka, contrary to her campaign promises, supported and repeatedly voted for controversial zoning changes sought by Jordan ultimately allowing for the construction of over 1,000 new apartments in Richardson near Richardson neighborhoods. The indictment alleges that, in exchange, Jordan paid Maczka over $18,000 in cash and $40,000 by check, paid for over $24,000 in renovations to Maczka’s home, paid for Maczka’s luxury hotel stays and airfare upgrades, and provided Maczka lucrative employment at one of Jordan’s companies. According to the indictment, Maczka and Jordan failed to disclose to the public that they had coordinated to effect the zoning changes Jordan wanted and that Jordan had provided a stream of benefits to Maczka.
“These are the kinds of things that make the public distrust government officials,” said U.S. Attorney Joseph D. Brown. “Public servants should not be for sale, and this indictment clearly indicates that that Ms. Maczka’s vote was for sale, and Mr. Jordan certainly was willing to buy it.”
"With the indictment and arrest of Maczka and Jordan, the FBI will continue its efforts to identify and bring to justice those public servants who use their positions of trust to benefit themselves personally and conspire with others to violate federal corruption laws," said Erick K. Jackson, FBI Dallas Special Agent-In-Charge.
If convicted, both Maczka and Jordan face up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
15 May 2018
“John Doe” Sentenced to 42 Months in Prison for Passport Fraud, Social Security Fraud, Aggravated Identity Theft, and Two Counts of Voter FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Ellen L. Hollander sentenced defendant “John Doe,” whose true identity remains unknown, to 42 months in prison, followed by three years of supervised release, for charges of passport fraud, social security fraud, aggravated identity theft, and two counts of voter fraud.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Richard J. Ingram for the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of the Inspector General, Philadelphia Field Division.
According to evidence presented at the five-day trial, beginning at an unknown time, the defendant has lived under the assumed identity of a United States Citizen born in the United States Virgin Islands.
Beginning no later than the summer of 1997, the defendant used the victim’s personally identifiable information to obtain a series of driver’s licenses and identification cards, including a Maryland state identification card and multiple Maryland driver’s licenses. Building upon these documents, the defendant also obtained a United States passport and a Social Security card, and registered to vote.
On June 21, 2015, the defendant was interviewed by Diplomatic Security Service (DSS) investigators about his passport applications and claims to be Cheyenne Moody Davis. The defendant falsely claimed to have served as a Military Police officer in the 200th Military Police Command at Fort Meade from 2005 through 2008, and told agents that he completed his military police training at Fort Knox and Fort Hood. He was unable to produce a military identification card and stated that he lost it, but during the interview showed State Department investigators military-standard dog tags bearing the name “Cheyenne M Davis,” and the real Davis’ Social Security number.
The government later learned that John Doe purchased these dog tags online, along with a number of other military-related items, including patches for the 200th Military Police Command, military police, and uniform patches bearing the name “Davis.”
A review of the contents of the defendant’s social media accounts showed that he made statements to multiple other users that he was in the U.S. Army or Army Reserve, and worked at the Fort Meade military base in Maryland. The U.S. Army 200th Military Police Command at Fort Meade confirmed that no one ever served in the U.S. Army under the name or PII of Cheyenne Moody Davis. The U.S. Army also confirmed that military police are not trained at Fort Knox or Fort Hood.
Finally, defendant John Doe voted in the 2016 Presidential Election using the stolen identity.
United States Attorney Robert K. Hur commended the Department of State’s Diplomatic Security Service and the Social Security Administration - Office of the Inspector General for their work in the investigation. Mr. Hur acknowledged the assistance of the Acting United States Attorney Joycelyn Hewlett in the District of the Virgin Islands and the Howard County Police Department, and thanked Assistant U.S. Attorneys Zachary A. Myers and Phil Selden, who prosecuted this case.
If anyone has any information on the identity of “John Doe,” who has used the name Cheyenne Moody Davis, they are asked to e-mail the Diplomatic Security Service (DSS) at [email protected].
According to DSS, John Doe is approximately 41-44 years old, 5’8”, with light brown eyes and has previously gone by the pseudonyms “Chris” or “Richie.” John Doe may be from Antigua, Barbuda, the Dominican Republic, Haiti, or Jamaica. According to evidence introduced at trial, he has a Jamaican accent. According to DSS, John Doe would have been between 20 to 25 years old when he left disappeared from his community around June of 1997. More information can be found at https://www.state.gov/m/ds/rls/274463.htm.
Wooster men sentenced to prison for selling heroin that contributed to woman's deathRead the Press Release
Two Wooster men were sentenced to prison for distributing heroin that contributed to the fatal overdose of a Wayne County woman.
Jamie Curtis, 37, was sentenced to seven years in prison. Theodore Alleman, 28, was sentenced to four years in prison. Both previously pleaded guilty to distribution of heroin. Curtis also pleaded guilty to being a felon in possession of a firearm.
Curtis sold heroin and cocaine to Alleman from June 2016 through January 2017, according to court documents.
Alleman, on Nov. 12, 2016, contacted a Wayne County woman identified in court documents as H.C. H.C. was 21 years old and a recovering drug addict. Alleman repeatedly attempted to persuade H.C. to inject heroin with him, but she refused, according to court documents.
Alleman purchased drinks for H.C. throughout the evening at a local pub and continued to ask her to inject heroin with him. In the early morning hours of Nov. 13, H.C. agreed. Alleman went to an ATM to get money and texted Curtis “I need a g” (gram of heroin), according to court documents.
A friend identified in the indictment as G.C. fought with Alleman and H.C. about getting heroin. C.G. was forcefully removed from the vehicle. Alleman and H.C. met with Curtis and purchased heroin and cocaine, according to court documents.
On Nov. 13, Alleman prepared a mixture of heroin and cocaine that he and H.C. injected. H.C. then overdosed and died, according to court documents.
“This case demonstrates the terrible toll taken on our community by this epidemic,” U.S. Attorney Justin Herdman said. “We will continue to prosecute dealers who profit from pain caused to families while trying to get help for those who are ready to change their lives.”
DEA Special Agent in Charge Timothy J. Plancon said: “Today, our justice system was at its best. The successful investigation and prosecution of individuals who pollute our neighborhoods with deadly drugs is a victory for the Wooster community. The DEA will continue to target the most heinous drug traffickers in efforts remove them from the streets of America.”
“The continued collaborative efforts of the Medway Drug Task Force and the Cleveland DEA to investigate these opiate overdoses, truly sends a message to our community that people will be held accountable,” said MEDWAY Director Don Hall.
This case is prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the DEA, ATF, MEDWAY Drug Enforcement Agency, Wooster Police Department, Wayne County Sheriff's Office, Wayne County Coroner's Office and Ohio BCI.
Woodlands Man Guilty in Eastern District of Texas Wire Fraud ConspiracyRead the Press Release
PLANO, Texas – A 52-year-old, The Woodlands, Texas, man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Arlando Jacobs pleaded guilty to conspiracy to commit wire fraud on May 14, 2018, before U.S. Magistrate Judge Kimberly Priest Johnson.
According to information presented in court, from October 2011 through April 2017, Jacobs conspired with others to create and submit fraudulent mortgage lien documents to title companies and financial institutions in order to receive transfers of funds they were not entitled to receive. Jacobs was indicted by a federal grand jury in October 2017. Co-defendant, Clarence Roland, is scheduled for trial in September 2018.
Under federal statutes, Jacobs faces up to 30 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Housing Finance Agency-Office of Inspector General, Federal Bureau of Investigation, and Housing & Urban Development-Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Christopher Eason.
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West Virginia Man Sentenced on Fraud ChargesRead the Press Release
BOSTON – A Beckley, W.Va., man was sentenced today in federal court in Boston in connection with a scheme in which he purported to sell paintings stolen from the Isabella Stewart Gardner Museum in 1990, on Craigslist.
Todd Andrew Desper, a/k/a “Mordokwan,” 48, was sentenced by U.S. District Court Judge Rya W. Zobel to time served and three years of supervised release, three months of which is to be served in home confinement. In February 2018, Desper pleaded guilty to four counts of wire fraud and attempted wire fraud. In May 2017, Desper was arrested in West Virginia and charged in a criminal complaint.
Desper, acting under the pseudonym “Mordokwan,” solicited foreign buyers on Craigslist for both the Rembrandt’s Storm on the Sea of Galilee and Vermeer’s The Concert, two paintings that were stolen from the Isabella Steward Gardner Museum in 1990. Desper directed interested buyers to create an encrypted email account to communicate with him. Authorities were notified of the foreign Craigslist notices by individuals seeking to assist in the recovery of the artwork, as well as those seeking the multi-million dollar reward offered by the Museum.
At the direction of federal authorities, the security director for the Gardner Museum engaged in encrypted communications with Desper in an attempt to determine whether Desper had access to the stolen masterpieces. Desper instructed the security director to send a cashier’s check for $5 million to a location in West Virginia and that the Storm on the Sea of Galilee would then be sent in return, concealed behind another painting. The investigation ultimately revealed that Desper had no access to, nor information about, the stolen paintings, but was instead engaged in a multi-million dollar fraud scheme targeting foreign art buyers.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was provided the Isabella Stewart Gardner Museum, the U.S. Attorney’s Office for the Southern District of West Virginia, the FBI Pittsburgh Field Division and the Beckley Police Department. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Criminal Division prosecuted the case.
West Palm Beach Return Preparer Sentenced to over 5 Years in Prison and Ordered to Pay More Than Half a Million for Filing False Tax Returns with the IRSRead the Press Release
Today, Manuel Antonio Severino, a West Palm Beach tax preparer, was sentenced to over 5 years in prison and ordered to pay $524,556 in restitution, after having been convicted at trial of filing false tax returns with the IRS.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Severino, 44, of West Palm Beach, was sentenced to 65 months in prison, 3 years of supervised release (to include 6 months of home confinement), and ordered to pay $524,556 in restitution, by Senior U.S. District Judge Paul C. Huck. Additionally, while on supervised release the defendant is ordered to complete community service - 1,000 hours a year if unemployed and 300 hours a year if employed. On February 23, 2018, a jury found Severino guilty of thirteen counts of aiding and assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2); two counts of wire fraud, in violation of Title 18, United States Code, Section 1343; and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to the evidence presented at trial, Severino operated a purported tax preparation business from his home in West Palm Beach. He unjustly enriched himself and others by submitting individual tax returns to the IRS on behalf of other individuals claiming false and fraudulent credits and deductions. Severino falsely reported that the taxpayers were entitled to receive a tax credit under the American Opportunity Credit, when the defendant knew that the taxpayers did not have qualified education expenses and were not entitled to receive this credit. Without his clients’ knowledge or consent, Severino diverted portions of his clients’ tax refunds to bank accounts that he controlled. Over the three years that Severino engaged in this fraudulent tax return business, he sought over $1.6 million in refunds from the IRS on behalf of himself and his clients, and diverted tens of thousands of dollars of IRS tax refunds into his own bank accounts.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorneys Daniel J. Marcet and Lisa H. Miller.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Waterbury Man Charged with Child Pornography OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging YEHUDI MANZANO, 33, of Waterbury, with production and transportation of child pornography.
As alleged in the indictment, on or about August 21, 2016, MANZANO sexually assaulted a 15-year-old female victim in Connecticut, video recorded the assault with his cell phone, and uploaded the video to his Google account.
The indictment was returned on May 3, 2018, and was unsealed yesterday when MANZANO surrendered to authorities. MANZANO appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport yesterday afternoon and entered a plea of not guilty to the charges. He was released on a $300,000 bond and electronic GPS monitoring.
On November 10, 2016, MANZANO was arrested on related state charges.
The charge of production of child pornography carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and the charge of transportation of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Wasilla Teen Sentenced for Providing Marijuana to MinorsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Devin Lee Peterson, 19, resident of Wasilla, Alaska, was sentenced yesterday by U.S. District Judge Ralph R. Beistline to three years in prison, to be followed by four years of supervised release, for distribution of marijuana to minors.
The federal sentence will be consecutive to a pending state sentence of six-years to be imposed for Petersons’ role in obstructing the investigation into David Grunwald’s murder in November 2016, and his tampering of evidence from that case.
On the night of Nov. 13, 2016, four men assaulted and murdered David Grunwald in a secluded area near the Knik River off Old Glenn Highway. Following the murder, the men drove to Peterson’s house. Once there, Peterson took possession of the weapons used to assault and murder David Grunwald, and provided gas cans to the group that they used to burn Grunwald’s vehicle.
Alaska State Troopers subsequently obtained a search warrant to search Peterson’s phone. During this examination, Troopers located a photograph of a 16-year-old female performing oral sex on Peterson. In a subsequent examination, Troopers located a 10-second video showing the sexual assault of an incapacitated 15-year-old girl. This video was taken at a party attended by Peterson and others in July 2016. During the party, Peterson gave the girl marijuana, contributing to her extreme intoxication and subsequent assault.
At sentencing, Judge Beistline addressed Peterson’s role in the 15-year-old girl’s sexual assault, as well as his crimes in the Grunwald case. “You’ve done great damage to the community,” said Judge Beistline. Addressing Peterson’s criminal acts to that point in his young life, and his prospects going forward, Judge Beistline said, “You can’t ever pay back the families of these people you’ve injured, but you can demonstrate that you can be a better person than you have been in the past,” commented Judge Beistline. Judge Beistline warned Peterson in no uncertain terms about the consequences of failing to change his ways, “You mess up again its pretty much over…no one is going to be thinking about mercy.”
The Alaska State Troopers (AST) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Kyle Reardon.
United States Intervenes in False Claims Act Lawsuits Accusing Insys Therapeutics of Paying Kickbacks and Engaging in Other Unlawful Practices to Promote Subsys, A Powerful Opioid PainkillerRead the Press Release
On April 13, 2018, the United States intervened in five lawsuits accusing Insys Therapeutics Inc., of violating the False Claims Act in connection with the marketing of Subsys, an opioid painkiller manufactured and sold by Insys, the Department of Justice announced today. Subsys is a sublingual spray form of fentanyl, a powerful, but highly addictive, opioid painkiller. In 2012, Subsys was approved by the Food and Drug Administration for the treatment of persistent breakthrough pain in adult cancer patients who are already receiving, and tolerant to, around-the-clock opioid therapy.
As stated in the complaint, which was unsealed today, the United States alleges that Insys, headquartered in Arizona, paid kickbacks to induce physicians and nurse practitioners to prescribe Subsys for their patients. Many of these kickbacks took the form of speaker program payments for speeches to physicians that were, in fact, shams; jobs for the prescribers’ relatives and friends; and lavish meals and entertainment. The United States also alleges that Insys improperly encouraged physicians to prescribe Subsys for patients who did not have cancer, and that Insys employees lied to insurers about patients’ diagnoses in order to obtain reimbursement for Subsys prescriptions that had been written for Medicare and TRICARE beneficiaries.
“Improper financial relationships between physicians and drug companies can distort a physicians’ best judgment for their patients, in addition to undermining patient health and trust. This is especially troubling when the drugs are opioids,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Lying to federal health programs about patients’ medical diagnoses is also completely unacceptable. The Justice Department will pursue these illegal actions and continue to hold drug companies and doctors accountable for their roles in contributing to this deadly epidemic.”
"Insys allegedly bribed doctors who are more concerned with profits than patients," said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. "Encouraging the inappropriate use of this too-often deadly opioid is intolerable enough, but the abuse is compounded when taxpayers are forced to pick up the bill."
"I applaud the Civil Division and the U.S. Attorney for their untiring efforts to hold health care providers accountable to the American taxpayer," said Vice Adm. Raquel Bono, director of the Defense Health Agency. "The Department of Justice's efforts safeguard the health care benefit for American service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate those who participate in fraudulent practices."
“Our intervention in these cases is just one part of the Justice Department’s multi-pronged efforts to combat the opioid crisis,” said United States Attorney Nicola T. Hanna. “The illegal marketing activities alleged in the government’s case helped fuel the crisis by improperly introducing opioids into the market. We are committed to hold accountable corporations and individuals who use kickbacks, off-label promotions and other illegal activities to sell lethal and highly addictive narcotics. Our goal is bring about an end to the tragic epidemic that is harming untold numbers of people across the United States.”
The qui tam provisions of the False Claims Act allow whistleblowers to file lawsuits on behalf of the United States when they believe that a party has submitted false claims for government funds, and to receive a share of any recovery. The United States has the right to intervene and take over responsibility for litigating these cases. Here, the United States has intervened in five separate lawsuits that have been consolidated together in the Central District of California. They are: United States, et al., ex rel. Guzman v. Insys Therapeutics, Inc., et al., 13-cv-5861; United States ex rel. Andersson v. Insys Therapeutics, Inc., 14-cv-9179; United States ex rel. John Doe and ABC, LLC v. Insys Therapeutics, Inc., et al., 14-cv-3488; United States ex rel. Erickson and Lueken v. Insys Therapeutics, Inc., 16-cv-2956; and United States ex rel. Jane Doe, et al. v. Insys Therapeutics, et al., 16-cv-7937.
The United States has separately pursued a number of criminal cases against Insys employees and Subsys prescribers. Some of these cases have resulted in criminal convictions or guilty pleas, while others are currently pending.
These cases are being handled by the Justice Department’s Civil Division, the United States Attorney’s Office for the Central District of California, the Office of Inspector General of the Department of Health and Human Services, and the Defense Health Agency. The claims asserted against Insys are allegations only, and there has been no determination of liability.
United States Attorney Peter E. Deegan, Jr. Recognizes Police Week and Thanks All Law Enforcement Officers Serving Iowa CommunitiesRead the Press Release
Each day, thousands of law enforcement officers serve the public across the state of Iowa. These officers stand on the front lines in our communities. Every time an officer goes on duty, that officer accepts a measure of personal risk that few in our society face in their everyday jobs. They do so in order to continue the fight against violent crime. They do so in order to combat the dangers of the opioid epidemic. But these officers also risk their lives in ways that are often too easily taken for granted. They patrol our neighborhoods to safeguard our families and our property. They protect our schools. They investigate crimes from theft to murder. They assist those who have lost their way and they provide help to those in need.
How often do we stop and think about the dedication and courage that it takes for an officer to perform even seemingly routine duties – like conducting a traffic stop on a busy highway after dark? The vast majority of law enforcement officers accept these risks - not for personal reward or recognition – but simply wanting to serve their communities well. And when they do so, they are doing far more than their fair share to help establish and maintain a safe and just society. For this, every one of us owes a debt of gratitude.
Toward that end, in 1962, President John F. Kennedy signed a proclamation designating May 15 as Peace Officers Memorial Day and the week surrounding as Police Week. This year, Police Week runs from May 13 to May 19. During this week especially, the United States Attorney’s Office for the Northern District of Iowa wishes to recognize and thank each and every federal, state, and local law enforcement officer in Iowa for making so many sacrifices to keep us safe.
It is also important to recognize and thank our law enforcement officers’ families for the sacrifices they make every day. For every officer putting his or her life on the line, there are people back home, worried for their loved one’s safety. Without the strength and dedication of their families, these officers would not be able to do what they do each day to protect us and our families. And for the families of those officers who have given their lives in the line of duty, there is little that words can do to ease the suffering of their loss. But we can pledge to honor their loved ones by cherishing the freedoms we enjoy.
The United States Attorney’s Office is dedicated to supporting our law enforcement partners at every level. We do this, first and foremost, through a commitment to our common goal of enhancing public safety. Through our Project Safe Neighborhoods program, we work together to take dangerous criminals and guns off our streets. Through our Heroin Initiative, we work together to attack the opioid crisis through enforcement and community outreach.
This Police Week, we are asking the public to join us in saying “thank you” to our friends in law enforcement. We can do this by taking any opportunity to make their jobs just a little easier. We can also say “thank you” by taking the time to share a story about a friendly interaction with an officer, or about a time when we were in need and it was an officer who was there to help. Finally, we can simply and sincerely say “thank you” to the next officer we see.
To our friends on the force, the United States Attorney’s Office thanks you for your service.
Follow us on Twitter @USAO_NDIA.
U.S. Intervenes in ‘Whistleblower’ Lawsuits Alleging Insys Therapeutics Paid Illegal Kickbacks to Promote SubsysRead the Press Release
LOS ANGELES – The United States has intervened in five “whistleblower” lawsuits that accuse Insys Therapeutics, Inc. of paying illegal kickbacks and defrauding federal health programs in connection with the marketing of Subsys, an opioid painkiller manufactured and sold by the Arizona-based company, the Department of Justice announced today.
The five cases brought pursuant to the False Claims Act were ordered unsealed late last week, as was the government’s complaint in intervention. The government learned the cases had been unsealed Monday afternoon.
The cases allege illegal marketing tactics related to Subsys, a sublingual spray form of fentanyl, a highly addictive opioid painkiller. In 2012, Subsys was approved by the Food and Drug Administration for the treatment of persistent breakthrough pain in adult cancer patients who are already receiving, and tolerant to, around-the-clock opioid therapy.
The government’s complaint alleges that Insys paid kickbacks to induce physicians and nurse practitioners to prescribe Subsys for their patients. Many of these kickbacks allegedly took the form of sham speaker fees to physicians, jobs for the prescribers’ relatives and friends, and lavish meals and entertainment.
The United States also alleges that Insys improperly encouraged physicians to prescribe Subsys for patients who did not have cancer, and that Insys employees lied to insurers about patients’ diagnoses in order to obtain reimbursement for Subsys prescriptions that had been written for Medicare and TRICARE beneficiaries.
“Our intervention in these cases is just one part of the Justice Department’s multi-pronged efforts to combat the opioid crisis,” said United States Attorney Nicola T. Hanna. “The illegal marketing activities alleged in the government’s case helped fuel the crisis by improperly introducing opioids into the market. We are committed to hold accountable opioid manufacturers who use kickbacks, off-label promotions and other illegal activities to sell lethal and highly addictive narcotics. Our goal is to bring about an end to the tragic epidemic that is harming untold numbers of people across the United States.”
“Improper financial relationships between physicians and drug companies can distort a physicians’ best judgment for their patients, in addition to undermining patient health and trust. This is especially troubling when the drugs are opioids,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Lying to federal health programs about patients’ medical diagnoses is also completely unacceptable. The Justice Department will pursue these illegal actions and continue to hold drug companies and doctors accountable for their roles in contributing to this deadly epidemic.”
“Insys allegedly bribed doctors who are more concerned with profits than patients,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Encouraging the inappropriate use of this too-often deadly opioid is intolerable enough, but the abuse is compounded when taxpayers are forced to pick up the bill.”
“I applaud the Civil Division and the U.S. Attorney for their untiring efforts to hold health care providers accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The Department of Justice's efforts safeguard the health care benefit for American service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate those who participate in fraudulent practices.”
The qui tam provisions of the False Claims Act allow whistleblowers to file lawsuits on behalf of the United States when they believe that a party has submitted false claims for government funds, and to receive a share of any recovery.
The United States has the right to intervene and take over responsibility for litigating these cases. Here, the United States has intervened in five separate lawsuits that have been consolidated in United States District Court in Los Angeles.
The civil claims asserted against Insys are allegations only, and there has been no determination of liability.
The United States has separately pursued a number of criminal cases against Insys employees and Subsys prescribers.
The cases announced today are being handled by the United States Attorney’s Office for the Central District of California, the Justice Department’s Civil Division, the Office of Inspector General of the Department of Health and Human Services, and the Defense Health Agency.
U.S. Attorney’s Office Honors Commitment of Law Enforcement During Ceremonies Commemorating National Police WeekRead the Press Release
WASHINGTON – U.S. Attorney Jessie K. Liu is joining Principal Assistant U.S. Attorney Alessio D. Evangelista and other leaders of the U.S. Attorney’s Office for the District of Columbia in commemorating National Police Week by attending various events in honor of the sacrifice and contributions made by law enforcement officers here and across the nation.
The week honors the law enforcement community with special recognition of those who have been killed or disabled in the line of duty. In 1962, Congress created National Police Week and designated May 15th as National Peace Officers Memorial Day. Attorney General Jeff Sessions will be among officials attending today's 37th Annual National Peace Officers’ Memorial Service at the United States Capitol, one of the largest gatherings of the week.
On May 13, 2018, U.S. Attorney Liu attended the 30th Annual Candlelight Vigil on the National Mall, in honor of fallen officers. Attorney General Sessions spoke at the event. Earlier, she attended a memorial service on May 8, 2018, at the U.S. Capitol honoring four United States Capitol Police officers who have died over the years in the line of duty. This year’s ceremony was especially poignant, with speakers recalling the heroism of Officer Jacob J. Chestnut and Detective John M. Gibson, who died 20 years ago while protecting the U.S. Capitol from a gunman’s attack. U.S. Attorney Liu and Principal Assistant U.S. Attorney Evangelista also attended the 24th Annual Blue Mass on May 1, 2018 at Saint Patrick’s Catholic Church.
“National Police Week is a time to reflect on the courage and commitment shown by law enforcement officers here in the District of Columbia and across the nation,” said U.S. Attorney Liu. “The citizens of the District of Columbia are especially fortunate to be kept safe by thousands of dedicated men and women from a wide array of federal and District of Columbia law enforcement agencies. Their devotion to duty comes at great risk and sacrifice. The ceremonies this week give all of us an opportunity to remember those who died serving their communities and a chance to thank those who work around the clock to protect us. ”
This year, National Police Week is observed from Sunday, May 13 to Saturday, May 19, 2018.
“One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the newly released 2017 edition of Law Enforcement Officers Killed and Assaulted. To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
The names of all 93 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018.
For more information about other National Police Week events, please visit www.policeweek.org.
U.S. Attorney's Office Joins in Recognizing National Police Week, May 13-19, 2018Read the Press Release
PORTLAND, Ore. – Attorney General Jeff Sessions and Billy J. Williams, U.S. Attorney for the District of Oregon, recognize the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.
“One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
“Working with federal, state, local, and tribal law enforcement officers in Oregon is a distinct honor and one of the highlights of my job,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “During National Police Week, we honor the 93 men and women who lost their lives protecting their communities as well as the countless others who continue to serve with unfailing dedication and an unwavering commitment to excellence. Supporting police and fostering strong relationships between our communities and law enforcement is top priority for the U.S. Attorney’s Office.”
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
The names of all 93 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. One District of Oregon officer was added this year: John Edward Lawrence, City of Bend Police Department, End of Watch: December 4, 2014.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.
For more information about other National Police Week events, please visit www.policeweek.org.
To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
U.S. Attorney Attends Investiture of U.S. Magistrate JudgeRead the Press Release
Rapid City, SD – On May 11, 2018, United States Attorney Ron Parsons attended the Investiture of United States Magistrate Judge Daneta Wollmann. Judge Wollmann is the first person to serve in the newly created full-time federal magistrate position in the Western Division of the District of South Dakota.
The ceremony, held at the Andrew W. Bogue Federal Building and United States Courthouse in Rapid City, opened with celebratory music before the Hon. Jeffrey L. Viken, Chief Judge, welcomed the attendees with some opening remarks. Additional remarks were presented by the Hon. Karen E. Schreier, United States District Judge. Chief Judge Viken then administered the oath of office. The ceremony concluded with comments from Judge Wollmann.
Judge Wollmann was appointed by the United States District Court to serve an eight-year term of office effective April 1, 2018. She had been serving as a part-time magistrate judge since March 2015. She is a graduate of Purdue University and the University of South Dakota School of Law.
Two Nashville Men Receive Lengthy Prison Sentences for Violent Crime and Drug OffensesRead the Press Release
NASHVILLE, Tenn. – May 15, 2018 – Two Nashville, Tennessee men have been sentenced in U.S. District Court to more than 20 years in prison for committing crimes involving drugs and violence, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Michael D. Bright, aka Groove, 27, was sentenced on May 11, 2018, to 23 years in prison, for his involvement in two armed robberies of Nashville businesses. Yesterday, Emmanuel Thirkill, aka Hot Boy, 36, was sentenced to 21 years and 10 months in prison on firearms and drug offenses.
According to court documents, Michael Bright was one of four participants in the armed robbery of the Express Market, located at 2408 Antioch Pike in Nashville, on June 3, 2015. During that robbery, Bright acted as the driver while the other participants, Dominique Cordell Wallace, aka DeuceFace, Robert Dewayne Brooks, aka YG, and Demontay Thomas entered the store with guns. Thomas crawled under the counter while Brooks was climbing over the counter. Brooks became startled by Thomas and began firing his pistol, striking Thomas and killing him. Wallace then shot a clerk in the head before fleeing the store with Brooks and Bright.
On June 21, 2015, Bright again participated in an armed robbery of the Jack in the Box, located at 622 McGavock Pike in Nashville. During this robbery, Bright and Corin Porter forced several female employees at gunpoint, into the office area and took money from the safe, while threatening them with the firearms. Michael Wilson acted as the driver for this robbery.
Bright pleaded guilty on December 12, 2017. All other defendants have also pleaded guilty and are awaiting sentencing.
In an unrelated case, Emmanuel Thirkill, aka Hot Boy, 36, was sentenced yesterday to 21 years and 10 months in prison on firearms and drug offenses.
Court documents reflect that beginning in May 2016, after being released from prison, Thirkill began selling cocaine in the Tony Sudekem Public Housing Development on a daily basis. Thirkill became the subject of a criminal investigation by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives as part of a concerted effort to reduce crime in the city’s public housing areas.
The investigation determined that Thirkill was receiving a supply of cocaine on a weekly basis, which he stored in his Antioch home located near Thomas Edison Elementary School. On December 6, 2016, Metro Nashville police officers attempted to stop Thirkill as he was leaving his home, but Thirkill fled and temporarily escaped capture. A search warrant was subsequently obtained and executed at Thirkill’s home and officers found five ounces of cocaine, $15,000 cash and a loaded Glock 9mm pistol, which was determined to have been stolen during a home burglary in Sumner County, Tennessee in 2013. Metro Police located and arrested Thirkill the following day at a hotel in West Nashville.
Thirkill pleaded guilty to these offenses on October 23, 2017.
Thirkill has four prior felony convictions in state court, since 2001, for trafficking cocaine; two prior felony convictions for being a convicted felon in possession of a firearm; and a conviction for attempted reckless aggravated assault.
These investigations were conducted by the Metropolitan Nashville Police Department’s Gang Division and the ATF. Assistant U.S. Attorneys Sunny A.M. Koshy and Philip H. Wehby prosecuted the cases.
Two Local Men Head to the Pen for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Two residents of Corpus Christi have been ordered to federal prison following their respective convictions of possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Rogelio Castaneda, 61, and Jose Ivan Davila, 54, pleaded guilty Jan. 23, 2018, in separate, but similar cases.
Today, Senior U.S. District Judge John D. Rainey sentenced Castaneda to 121 months in prison. Davila received a 70-month term of imprisonment. Both men were further ordered to serve 10 years of supervised release following completion of the prison terms, during which time they will have to comply with numerous requirements designed to restrict access to children and the internet. They will also be ordered to register as sex offenders.
In imposing Castaneda’s sentencing, Judge Rainey noted that it was “disturbing” that he was a repeat offender.
The investigation into Castaneda began after authorities discovered he had uploaded images of child pornography to his email accounts. Law enforcement learned Castaneda had a prior conviction related to child pornography and, as such, is required to register as a sex offender. However, he had failed to do so and was taken into custody in February 2017. Law enforcement seized several digital devices at the time of his arrest which led to the discovery of approximately 2,500 images and 700 videos of child pornography. At the time of his arrest, Castaneda admitted to having an interest in adolescent girls.
In Davila’s case, authorities were investing a file sharing program in February 2017, during which they identified a computer as a potential source of at least 41 files of known images of child pornography. That computer was later linked to Davila.
The next month, law enforcement executed a search warrant at his residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 296 images and approximately 260 videos child pornography. Two of those videos included images of young girls, approximately nine and 11 years of age, performing oral sex on an adult male.
Both men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted both investigations with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez prosecuted the cases, which were 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."
Two Delaware Residents Charged with Sex Trafficking of MinorsRead the Press Release
Dkyle Jamal Bridges, 32, and Kristian Jones, 24, both of Claymont, Delaware, have been charged with multiple counts of sex trafficking of minors in an indictment unsealed May 11, announced United States Attorney William M. McSwain.
Specifically, the defendants are charged with conspiracy to engage in forcible sex trafficking of minors, two counts of forcible sex trafficking, and three counts of forcible sex trafficking of minors. According to the indictment, Bridges and Jones committed the various sex trafficking offenses between 2012 and 2017.
“The indictment alleges that the defendants and their associates operated a violent sex-trafficking enterprise in which women and several minor children were sold for commercial sex,” said U.S. Attorney McSwain. “Stopping human exploitation, and particularly child exploitation, is a priority for the Department of Justice, and we are working very hard with our law enforcement partners to find and prosecute all such offenders. In this case, we worked with the FBI and local police in both Pennsylvania and Delaware. That’s what it’s going to take to stop the unconscionable exploitation of these young victims.”
If convicted as charged, each defendant faces a maximum possible sentence of 1life imprisonment, a mandatory minimum term of fifteen years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $1,500,000 dollar fine, mandatory restitution, and a maximum $30,600 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, the Tinicum Township Police Department, and the Newark (DE) Police Department. The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.
Treatment Center Owners Sentenced to Prison for Multi-Million Dollar Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Two treatment center owners were sentenced to prison for their participation in a multi-million dollar health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
Tovah Lynn Jasperson, a/k/a Tara, 48, of Wellington, was sentenced to 78 months in prison, to be followed by 3 years of supervised release. Alan Martin Bostom, 75, of Wellington, was sentenced to 30 months in prison, to be followed by 3 years of supervised release. Both were also ordered to pay restitution of $4,045,364.98. Jasperson previously pled guilty to one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1347; all in violation of Title 18, United States Code, Section 1349. Bostom previously pled guilty to one count of making false statements related to a health care matter, in violation of Title 18, United States Code, Section 1035(a)(1).
According to court documents, Jasperson and Bostom were the owners of Angel’s Recovery, a business with multiple locations in Palm Beach County that purportedly operated as a licensed substance abuse service provider (or treatment center) offering clinical treatment services for persons suffering from alcohol and drug addiction. Angel’s Recovery also offered medication-based treatment for opioid addiction.
At different times, the defendants managed all aspects of Angel’s Recovery, including hiring and firing personnel, admitting and discharging patients, and making financial decisions. To secure a steady stream of patients, the defendants established illegal kickback/bribe relationships with owners of sober homes, in exchange for referring the sober homes’ insured residents to Angel’s Recovery for treatment. Sober homes were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. The defendants provided the money used to purchase or rent several properties used as “sober homes,” although the purchase agreements or leases would bear the names of third parties.
The defendants and co-conspirators provided kickbacks and bribes, in the form of free or reduced rent, insurance premium payments, and other benefits to individuals with insurance who agreed to reside at the sober homes and attend drug treatment, which included regular and random drug testing (typically three or more times per week), so that members of the conspiracy could bill the testing and treatment to the residents’ insurance plans. To disguise kickbacks and bribes to patients, the defendants used a separate entity to pay insurance premiums for patients of Angel’s Recovery so that Angel’s Recovery could continue to bill the patients’ insurance companies for treatment expenses.
Jasperson and Bostom hired a doctor to serve as the medical director of Angel’s Recovery who frequently pre-signed prescriptions that were used to dispense controlled substances to patients of Angel’s Recovery by other employees. After the doctor’s medical license was suspended, the defendants continued to employ him and failed to inform the Florida Department of Children and Families because it could not continue to operate as a licensed facility without a licensed medical director.
The defendants and co-conspirators caused the submission of insurance claims that: falsely stated the testing and treatment were medically necessary, failed to disclose that patients were referred to Angel’s Recovery in exchange for kickbacks and bribes, failed to disclose that patients were not asked to pay kickbacks and deductibles, failed to disclose that the defendants paid some patients’ insurance premiums, and failed to disclose that the prescribing physician’s license was suspended.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak-OIG, DOL-EBSA, and NICB. This matter and related cases are being prosecuted by Assistant United States Attorneys A. Marie Villafaña and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Men Charged in Scheme to Purchase Firearms in Kentucky and Illegally Re-Sell Them in Chicago AreaRead the Press Release
CHICAGO — Three men have been charged with federal firearms violations for scheming to purchase dozens of guns in Kentucky and illegally re-sell them in the Chicago area.
On several occasions in 2016 and 2017, CHRISTOPHER HENDERSON and JOHN L. PHILLIPS purchased firearms from private sellers in Kentucky and brought them to the Chicago area, according to a criminal complaint and affidavit filed in federal court in Chicago. The pair then worked with JAIQAIL WRIGHT to re-sell the guns to buyers in Chicago and the surrounding suburbs, the charges allege. Many of the guns were recovered by law enforcement during criminal investigations, the complaint states. Authorities estimate that 80 to 90 firearms recovered by law enforcement in the Chicago area are associated with the defendants’ firearms trafficking.
All three defendants were arrested last week. The complaint charges Henderson, 23, of Louisville, Ky., Phillips, 23, of Hillside, and Wright, 23, of Chicago, with dealing firearms without a license. Phillips, who was previously convicted of a firearm-related felony, also faces a charge of illegal possession of a firearm by a felon. Detention hearings are scheduled for May 17, 2018, at 11:00 a.m., before U.S. Magistrate Judge Maria Valdez.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Valuable assistance was provided by the Louisville, Ky., ATF Field Division, Chicago Police Department, Illinois State Police, and the Chicago High Intensity Drug Trafficking Area (HIDTA).
According to the charges, Henderson and Phillips bought the guns in Kentucky from individuals they met on Armslist.com, a website dedicated to the sale or trade of firearms and firearm-related items, such as ammunition and gun parts. Using various names and email addresses, the pair contacted sellers on the website and arranged to meet them in Kentucky, the complaint states. After the purchases, Phillips and Henderson transported the guns to the Chicago area, where they worked with Wright to re-sell them, the charges allege.
Wright allegedly acted as a broker, using Facebook and other means to advertise the weapons. In one transaction described in the complaint, Wright brokered a deal to sell six handguns to a documented gang member. The complaint also describes a purchase by Henderson of a .45-caliber pistol on or about Dec. 23, 2016. The gun was recovered by law enforcement less than three months later while investigating a vehicular hijacking in the western suburbs, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Dealing firearms without a license is punishable by a maximum sentence of five years in prison. The felon-in-possession charge against Phillips carries a maximum sentence of ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Elizabeth Pozolo and Kalia Coleman.
Ten Individuals Charged for Conspiring to Traffic Contraband Through the Dallas/Ft. Worth International AirportRead the Press Release
DALLAS — A federal grand jury has returned an Indictment charging ten individuals for their role in conspiring to traffic contraband through Dallas Fort Worth International (DFW) Airport, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas, at a press conference today. The law enforcement operation was led by the Federal Bureau of Investigation, the Dallas Police Department, the Internal Revenue Service Criminal Investigation, and the Dallas Fort Worth International Airport Police Department.
The Indictment, returned last week and unsealed this morning, charges Nelson Pabon, 47, Jean Loui Vargas-Malave, 28, Juan Camacho Melendez, aka “Kendo Kaponi” and “Anthony,” 22, Ruben Benitez-Matienzo, 45, Jose Luis Gaston-Rolon, 24, Joshua Israel Pagan Zapata, 21, Domingo Villafane Martinez, III, 30, Luis Javier Collazo Rosado, aka “Luisito,” 21, Michael LNU, and Cristian David Cruz-Rodriguez, 23, with one count of conspiracy to possess with intent to distribute a schedule II controlled substance. The defendants were arrested yesterday and will make their initial appearances before a United States Magistrate Judge later this week.
“We have zero tolerance for employees who seek to undermine and evade the security protocols at airports,” said U.S. Attorney Erin Nealy Cox. “Smugglers are constantly seeking new ways to move illegal contraband across the country and we will do whatever necessary to thwart these criminals at every turn. Working together with federal and local law enforcement partners, we continue to prioritize efforts to help mitigate the insider threat to aviation security.”
According to the Indictment and beginning in August 2016, the defendants acquired a substance that they believed to be methamphetamine. They arranged for the transportation and delivery of the counterfeit drugs through the DFW Airport and onto commercial airline flights. The defendants utilized their position of employment with companies at DFW Airport to bypass security measures and in return, they accepted payment for the transportation and delivery of the counterfeit drugs. The defendants would also act as “look-outs” or engage in counter-surveillance to undermine police presence.
Also during the investigation, one of the defendants stated he could transport guns via commercial airlines. There were also discussions about transporting C-4 but the fees for transporting this type of contraband would be higher than what was charged for the smuggling of illegal narcotics. All told, the defendants facilitated the transportation of 66 kilograms of counterfeit drugs. The counterfeit drugs were transported to various locations throughout the United States, including Newark Liberty International Airport in Newark, New Jersey, Charlotte Douglas International Airport in Charlotte, North Carolina, and Sky Harbor Airport in Phoenix, Arizona.
“The FBI would like to thank its local and federal partners that assisted in this investigation. This joint operation allowed us to successfully arrest ten individuals who used their positions of employment and access to compromise an aspect of airport security,” said Eric K. Jackson, FBI Dallas Special Agent-In-Charge. “We at the FBI will continue to work diligently with our partners to ensure we aggressively investigate anyone who poses a threat to or attempts to compromise any aspect of U.S. aviation security.”
"DFW and the FBI have a strong partnership that is focused on keeping our customers and employees safe and secure, and these arrests demonstrate how well we work together,” said DFW Airport Police Chief Charles Cinquemani. “There will always be people who attempt to access the airport for illegal activities, but we will remain vigilant by investing in security and collaboratively sharing information and resources with the FBI, TSA, Customs and Border Protection and other federal, state and local agencies.”
A federal criminal Indictment is a written statement of the essential facts of the offense charged. A defendant is entitled to the presumption of innocence until proven guilty. If convicted, the defendants’ sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
Assistant U.S. Attorneys George Leal, John De La Garza and John Kull are prosecuting the case.
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Taylor County Convicted Felon Pleads Guilty to Narcotics and Gun Charges Under Project Safe NeighborhoodsRead the Press Release
COLUMBUS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on May 14, 2018, Andre Hendricks, aged 39, of Woodland, Georgia, entered a guilty plea to Possession with Intent to Distribute Cocaine Base and Possession of a Firearm by a Convicted Felon before Chief United States District Judge Clay D. Land in Columbus.
At his plea hearing, Mr. Hendricks admitted that he sold narcotics from his residence to a confidential informant on two occasions in December 2016. A subsequent search of his residence revealed nine (9) firearms, ammunition, crack cocaine, a quantity of pills containing methamphetamine, hydrocodone pills, powder cocaine, marijuana and drug paraphernalia.
Mr. Hendricks is prohibited from possessing a firearm after having been convicted of Possession of Cocaine with Intent to Distribute in Superior Court in Talbot County in 2003; Possession of Cocaine with Intent to Distribute Cocaine in Superior Court in Meriwether County in 2005; Possession of a Firearm by a Convicted Felon, Possession of Ecstasy and Possession of Cocaine in Muscogee County Superior Court in 2006; and Possession of a Firearm by a Convicted Felon in Talbot County Superior Court in 2009.
Mr. Hendricks faces a maximum penalty of forty (40) years imprisonment, a $5 million fine, or both, for the narcotics charge and a maximum of ten (10) years imprisonment, a $250,000 fine or both, on the firearms charge. His sentencing hearing will take place following a pre-sentence investigation. There is no parole in the federal system.
“Mr. Hendricks had both a virtual pharmacy and arsenal when arrested. His past record of drug and weapons possession charges, together with his current charges, make it clear that only incarceration will prevent the same conduct from him in the future. Fortunately, that is what he now faces,” said United States Attorney Peeler.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Taylor County Sheriff’s Office, the Georgia Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Crawford Seals is prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Sumter Men Sentenced on Federal Firearm and Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Brandon Leroid Cummings, age 28, and Brandon Christopher Craft, age 31, both of Sumter, were both sentenced today in federal court in Columbia by Chief United States District Judge Terry L. Wooten after pleading guilty earlier this year to various firearm and drug charges.
Cummings was sentenced to a total of 108 months imprisonment with 6 years of supervised release on charges of possession with intent to distribute and distribution of heroin and cocaine base (commonly known as “crack cocaine”) and conspiracy to use/carry/possess a firearm during a drug trafficking crime, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and Title 18, United States Code, Section 924(o).
Craft was sentenced to a total of 63 months imprisonment with 3 years of supervised release to follow on charges of felon in possession of a firearm and conspiracy to use/carry/possess a firearm during a drug trafficking crime, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(o).
Evidence presented in court during the guilty plea hearings established that May 17, 2017, Cummings distributed crack cocaine and four baggies of heroin to a confidential informant and undercover officer in exchange for $400. The transaction, which occurred in Sumter, was recorded on audio/video. Thereafter, on May 25, 2017, Cummings made arrangements to sell a firearm and heroin to the confidential informant in exchange for $800. When Cummings arrived to meet the confidential informant and the undercover officer, he was accompanied by Craft. Cummings provided the confidential informant what he said was heroin. Craft produced a Taurus .38 caliber revolver from a bag hidden in his waistband and gave it to the confidential informant. The investigation revealed that the firearm had been previously reported as stolen. Additionally, the heroin sold by Cummings on this occasion, while packaged like the previously sold heroin, was found to be cocaine during a laboratory analysis.
Cummings had prior state convictions for possession with distribution of marijuana, possession of crack cocaine (2 counts), and possession schedule I/schedule II controlled substance 2nd offense. Craft had prior state convictions for burglary 2nd degree (2 counts), possession of crack cocaine, possession of a firearm, assault and battery 2nd degree, and forgery (2 counts).
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and the Sumter County Sheriff’s Department and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Statement of United States Attorney Mike Stuart on the Appointment of Hank Dial as Chief of Police for the Huntington Police DepartmentRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement:
“I congratulate Hank Dial on the removal of the word “Interim” from his official title and his appointment as Chief of Police for the Huntington Police Department,” said United States Attorney Mike Stuart. “Hank has done an excellent job while serving as Interim Chief, and I expect nothing less from him and his Department moving forward. I look forward to our continued partnership and making Huntington the safest city in America. Mayor Steve Williams has placed the Huntington Police Department in good hands.”
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Statement of United States Attorney Mike Stuart on Passing of W. Warren Upton, former United States Attorney for the Southern District of West Virginia (1970 – 1972)Read the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement:
“It is a sad day for West Virginia and the Department of Justice family to learn about the passing of our esteemed colleague, W. Warren Upton. I offer prayers and condolences to his family and friends. Upton served as an Assistant United States Attorney in the Southern District of West Virginia from 1965 to 1970 before being appointed as Acting United States Attorney, and honorably served in that position from 1970 to 1972. I have the utmost respect and gratitude for his service to the United States and the Southern District of West Virginia.”
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Statement of U.S. Attorney John H. Durham in Recognition of National Police WeekRead the Press Release
In my 40-year career as a state and federal prosecutor, I have had the pleasure of working side by side with hundreds of federal, state and local law enforcement officers in the cause of justice. As a group, they are the finest people anyone could hope to know and work with. I have the greatest respect and admiration for these men and women, whose mission encompasses the most dangerous work undertaken in our communities.
A quote attributed to George Orwell reminds us of the debt we owe to members of law enforcement: “We sleep safe in our beds because rough men stand ready in the night to visit violence on those who would do us harm.”
In 1962, President Kennedy signed a proclamation designating today, May 15, as Peace Officers Memorial Day, and the week surrounding this date as National Police Week, to honor federal, state and municipal officers who made the ultimate sacrifice in the line of duty. So far this year, 53 brave men and women of law enforcement have lost their lives in service to the citizens of the United States. That figure includes Connecticut State Police Trooper First Class Kevin M. Miller, who was tragically killed in a vehicle crash on I-84 in Tolland on March 29.
Please take a moment today to remember them, and their families and loved ones who live with their loss.
I also encourage all to take some time this year to visit the Connecticut Law Enforcement Memorial, located at the Connecticut Police Academy in Meriden. The Memorial, which was dedicated in 1989, recognizes the sacrifice of 139 men and women of law enforcement who died in service to the people of Connecticut. This year, three more names will be added to the memorial, including Trooper Miller.
While most of us are fortunate to be able to live our lives freely without fear for our physical safety, too many of us take for granted that, in times of trouble, the police will be there to protect us from harm. For this, we owe a debt of gratitude to all officers, detectives, troopers and agents, who put themselves at risk every day for the safety of our communities, for our peace of mind, and for the security of our loved ones. It has been, and continues to be, my great honor to be able to work with all of them.
Statement from U.S. Attorney Bob Troyer in Support of National Police WeekRead the Press Release
“The partnerships among federal, state and local law enforcement in Colorado are unparalleled and set a gold standard of which we all can be proud,” said U.S. Attorney Bob Troyer. “The U.S. Attorney’s Office is truly thankful for everything Colorado Law Enforcement does to make this state such a great place to live.” National Police Week runs from May 13 through May 19. For information about National Police Week events, please visit www.policeweek.org.
Statement by U.S. Attorney Andrew E. Lelling Regarding Peace Officer’s Memorial DayRead the Press Release
BOSTON – Today marks the 55th anniversary of Peace Officer’s Memorial Day. It is the one day of the year when we are called upon to recognize those who preserve law and order, particularly those who have been injured in the line of duty or who have made the ultimate sacrifice to keep our communities safe. In truth, we should be keeping our peace officers – federal agents, state troopers, police officers, probation officers, corrections officers and others – in our daily thoughts and prayers.
Being a peace officer is neither easy nor without risk. The number of firearms-related law enforcement officer fatalities is up 56% in comparison to this time last year. This is a trend that we must stop, through aggressive enforcement and by encouraging respect for the law.
Our peace officers are also at a higher risk than ever of exposure to traumatic events, resulting in a steady increase in post-traumatic stress and suicidal behavior among those who keep us safe. I cannot over-emphasize the need for improved support, training and equipment for these brave men and women. The least we can do is give them the resources they need to do their jobs. While the federal government will do its part in this area, state and local government must also prioritize the safety and well-being of their officers. Local law enforcement agencies cannot bear this responsibility alone.
To the peace officers in this Commonwealth – today and every day – you have my deepest regard and admiration. The U.S. Attorney’s Office supports you, respects you and has the greatest appreciation for what you do. To the families and loved ones of those who have died or been injured in the line of duty, we remember, and we will not forget the sacrifices that have been made on our behalf.
Somerset County Man Possessed Sexual Images and Videos of Prepubescent MinorsRead the Press Release
JOHNSTOWN, Pa. – A Somerset County resident pleaded guilty in federal court in Johnstown to a charge of possession of child pornography, United States Attorney Scott W. Brady announced today.
Robert G. Landsbach, 36, of Stoystown, Pa., pleaded guilty before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on October 5, 2016, Landsbach knowingly possessed pictures and videos in individual computer graphic files, which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for Oct. 1, 2018, at 1:30 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
The Department of Homeland Security, Child Exploitation, the Pennsylvania Attorney General’s Office, and the Pennsylvania State Police, Somerset, conducted the investigation that led to the prosecution of Landsbach.
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 better 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.justice.gov/psc.
Roswell Felon Pleads Guilty to Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Shane Mann, 30, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms laws by being a felon in possession of a firearm and ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosive arrested Mann in Feb. 2018, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Aug. 9, 2017, in Chaves County, N.M. According to the complaint, law enforcement officers found multiple firearms and ammunition, and drug paraphernalia in Mann’s residence while executing a state search warrant. Mann was prohibited from possessing firearms or ammunition because of his prior felony convictions for shooting from a motor vehicle, aggravated fleeing a law enforcement officer, and possession of a controlled substance.
During today’s proceedings, Mann pled guilty to a felony information charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Mann admitted that on Aug. 9, 2017, law enforcement officers found firearms and ammunition in his residence, including a loaded handgun that was under a pillow in the bed in which Mann was laying, during the execution of the warrant. Mann acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Mann faces a maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Roswell Police Department and the HIDTA Chaves County Metro Narcotics Task Force. The case is being prosecuted by Assistant U.S. Attorney Alfred J. Perez of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Recidivist Securities Fraudster Edward Durante Sentenced to 18 Years in Prison for Securities Fraud, Money Laundering, and Perjury OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that EDWARD DURANTE, a/k/a “Ted Wise,” a/k/a “Efran Eisenberg,” a/k/a “Yulia,” a/k/a “Ed Simmons,” was sentenced today to 216 months in prison for defrauding at least 100 investors of more than $15 million. DURANTE was also sentenced for his perjurious testimony during an SEC deposition. DURANTE pled guilty on August 23, 2016, to conspiracy to commit securities fraud, securities fraud, money laundering, and perjury. DURANTE was sentenced today by United States District Judge Andrew L. Carter Jr.
U.S. Attorney Geoffrey S. Berman said: “The fraud scheme for which Edward Durante was sentenced today began while he was still in prison from a prior securities fraud conviction. Durante returned to what he knew best, lying to investors – many of whom were retirees who lost their life savings – about how their money would be used, and concealing his manipulation of the securities market. Edward Durante is now a twice-sentenced securities fraud felon.”
According to the allegations contained in the Indictment filed against DURANTE and his co-conspirators, and statements made in related court filings and proceedings:
2001 Securities Fraud Conviction
In December 2001, DURANTE was convicted in federal court of conspiracy to commit securities fraud, wire fraud, and money laundering, as well as making false statements in connection with a market manipulation scheme in which the defendant also used the alias “Ed Simmons.” The defendant was sentenced to 121 months in prison and was released in or about 2009, the year he began the current scheme. In connection with that scheme, DURANTE was ordered to pay disgorgement and prejudgment interest totaling over $39 million. DURANTE was also barred from certain activities in connection with the securities industry, including the sale of securities.
Private Placement Securities Fraud Involving VGTL
After being released from prison, between 2009 and in or about March 2015, DURANTE and his co-conspirators fraudulently induced victims to invest in private shares of VGTL by, among other things, concealing from investors that DURANTE controlled the entities selling the shares; that DURANTE was prohibited from any association with the sale of securities; and that DURANTE was previously convicted of crimes related to a similar scheme to defraud. Furthermore, DURANTE and certain of his co-conspirators lied to investors by (a) representing that their investments would be used to fund the operations and growth of VGTL in connection with potential reverse mergers, when in reality no reverse mergers were ever consummated and investor funds were instead used primarily to benefit the defendants personally; and (b) representing that the investors would receive an eight percent dividend on their investments until their private shares could be sold at a promised premium on the public market, when, in reality, no interest payments were ever provided to the investors and many investors never obtained VGTL stock certificates or the ability to sell the stock. In order to fund his illegal scheme, DURANTE used a network of brokers, including co-conspirators Larry Werbel and Abida Khan, investment advisers in Cleveland, Ohio, and Los Angeles, California, respectively, to induce investors to buy shares of VGTL.
Manipulation of the Market for Shares of VGTL
DURANTE also engaged in a scheme to control and manipulate the publicly traded stock of VGTL in order to artificially inflate the stock price and trading volume so as to profit from his own sales of VGTL stock and to further induce investments in private shares of VGTL. To that end, through entities he controlled, DURANTE held a majority of the publicly traded stock of VGTL. DURANTE recruited co-conspirator Christopher Cervino, a broker, to open brokerage accounts associated with DURANTE-controlled entities and investors who were clients of Werbel and Khan, many of whom did not know that brokerage accounts under their names had been opened with Cervino. Werbel and Khan, along with DURANTE, induced their clients to purchase VGTL stock through Cervino – sometimes without the clients’ knowledge or permission – while DURANTE and Cervino ensured that many of these purchases were matched with sales of VGTL stock by DURANTE-controlled accounts. The result of these transactions was that DURANTE and his co-conspirators were effectively taking both sides of a single transaction in VGTL stock in order to artificially control VGTL’s stock price. The efforts of DURANTE and his co-conspirators to artificially inflate the market for VGTL increased the stock price from approximately $.25 per share in April 2012 to as much as $1.90, and dramatically inflated the trading volume, which increased DURANTE’s ability to raise private investments in VGTL. To compensate Cervino for his efforts to control and manipulate the market in VGTL, DURANTE made at least two cash payments to Cervino totaling $35,000. Moreover, DURANTE then laundered proceeds from the scheme to accounts controlled by him and his co-conspirators, concealing the true nature of these transactions by utilizing wire transfers among multiple accounts in the names of other individuals.
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In addition to the 18-year prison term, DURANTE, 64, was sentenced to three years of supervised release and ordered to forfeit $15,404,231.
Abida Khan and Christopher Cervino, each of whom was found guilty after trial of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and wire fraud, and – with respect to Khan only – aggravated identity theft and investment adviser fraud, were sentenced on January 18, 2018. Khan was sentenced to 53 months in prison; Cervino was sentenced to one year and one day in prison. Larry Werbel, who pled guilty to conspiracy to commit securities fraud and to investment adviser fraud, does not have a final date for sentencing. Walter Reissman, another co-conspirator, pled guilty to conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, and making false statements to federal officers. Co-conspirator Kenneth Wise pled guilty to conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Reissman and Wise were sentenced, on February 23, 2018, and March 6, 2018, respectively, to time served.
Mr. Berman praised the work of the Federal Bureau of Investigation and the U.S. Postal Inspection Service, and thanked the Securities and Exchange Commission for its assistance. He added that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold and Rebecca Mermelstein are in charge of the prosecution.