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Friday 6 April 2018
Former Union Official Pleads Guilty to EmbezzlementRead the Press Release
TRENTON, N.J. - A former official for a union headquartered in Edison, New Jersey, today admitted embezzling funds from the union’s employee benefit plan, U.S. Attorney Craig Carpenito announced.
Sergio Acosta, 65, of Utuado, Puerto Rico, formerly of Passaic, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging him with one count of theft, embezzlement and conversion to his own use, or to the use of another, money and funds of an employee welfare benefit fund.According to documents filed in this case and statements made court:
Acosta was the former president and a representative of United Auto Workers Local 2326, as well as a trustee of its health and welfare fund. Lawrence Ackerman, 53, of Old Tappan, New Jersey, allegedly formed Atlantic Business Associates (ABA) and other shell companies in 2001 in order use the Local 2326 welfare fund to provide medical insurance coverage to individuals who were not employees of ABA and therefore ineligible to participate in the union’s welfare fund. These individuals were willing to pay excessive monthly premiums to obtain medical coverage provided by Local 2326 welfare fund because they were unable to get similar coverage elsewhere.
Local 2326 was also obligated to pay contributions for its own staff employees to the welfare fund, which would in turn pay premiums to Blue Cross Blue Shield. However, based on the hundreds of ineligible enrollees that were recruited by Ackerman and permitted to use the Local 2326 fund, Acosta failed to pay premiums for his own staff employees that were still due to the fund from July 2011 through October 2012.
Acosta faces a maximum potential penalty of five years in prison and a $250,000 fine. Restitution will be determined at his sentencing, which is scheduled for Sept. 21, 2018.
Acosta and Ackerman were originally charged by indictment with conspiracy to defraud Horizon Blue Cross Blue Shield and the Local 2326 health and welfare fund with fraudulent health care claims. Those charges against Acosta will be dismissed at sentencing.The charges and allegations against Ackerman are still pending, and he is considered innocent unless and until proven guilty. Ackerman is scheduled for trial on Oct. 22, 2018.
U.S. Attorney Craig Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York; and the Office of Employee Benefit Security Act (EBSA), under the direction of Acting Regional Director Thomas Licetti in New York, with the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Organized Crime\Gangs Unit.
Defense counsel: Alan Silber Esq., Hackensack, New Jersey.
Former Union General Hospital CEO, ER director, and Blairsville physician indicted for illegally prescribing and obtaining prescription pain pillsRead the Press Release
GAINESVILLE, Ga. - John Michael Gowder, Dr. David Gowder, and Dr. James Heaton, have been indicted as part of Operation SCOPE on federal charges for illegally prescribing and obtaining thousands of doses of prescription pain medications outside the usual course of professional medical practice and for no legitimate medical purpose. They are expected to appear in federal court in Gainesville, Georgia to be arraigned on the charges on April 9, 2018.
“These defendants allegedly abused their positions as medical professionals to obtain illegitimately thousands of doses of prescription pain medications and now face serious federal charges,” said U.S. Attorney Byung J. “BJay” Pak. “The Department of Justice is committed to fighting the opioid epidemic through the aggressive investigation and prosecution of licensed medical practitioners who abuse their positions of trust to engage in illegal conduct.”
“Americans rely on healthcare providers, many of whom are medical doctors, to use their training to help patients and to ‘do no harm.’ The physicians and the hospital CEO in this case violated the law and betrayed their responsibilities by unlawfully obtaining and dispensing prescription opioids,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The moment these individuals decided to engage in this criminal behavior, they became nothing more than traditional drug traffickers. DEA, its law enforcement partners and the U.S. Attorney’s Office are committed to stemming the tide against the current opioid epidemic.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: From 2011 to 2015 John Michael “Mike” Gowder was the Chief Executive Officer of Union General Hospital in Blairsville, Dr. David Gowder was the Emergency Room Director at Union General, and Dr. James Heaton operated a family practice clinic in Blairsville, Georgia.
Mike Gowder and Dr. David Gowder allegedly conspired together to illegally obtain oxycodone, hydrocodone, and alprazolam. Dr. David Gowder unlawfully obtained these controlled substances from patients that he treated at the hospital. He also illegally issued prescriptions for oxycodone, hydrocodone, and alprazolam in the names of his and Mike Gowder’s family members, existing hospital patients, and fictitious patients. The prescriptions were issued outside the usual course of professional practice and Mike Gowder and Dr. David Gowder knew the drugs obtained with the prescriptions were not intended for the persons for whom the prescriptions were allegedly written. The drugs obtained with the illegal prescriptions were not for any legitimate medical purpose.
Dr. David Gowder would direct Union General Hospital employees to fill the prescriptions at local pharmacies. He would provide cash to the employees to pay for the drugs and would direct the employees to return the drugs they obtained to him. Mike Gowder used his position as the chief administrator at Union General Hospital to fire hospital employees who tried to expose Dr. David Gowder’s illegal prescribing and obtaining of oxycodone, hydrocodone, and alprazolam. He also used his position to intimidate other employees into concealing Dr. David Gowder’s unlawful acquisition of controlled substances.
Between April 2013, and April 2015, Dr. David Gowder issued at least 19 illegal prescriptions for oxycodone pills, 21 illegal prescriptions for hydrocodone pills, and five illegal prescriptions for alprazolam pills, including by forging the names of other physicians.
Dr. Heaton illegally prescribed oxycodone and other controlled substances to Mike Gowder, Mike Gowder’s family members, and others, knowing that the prescriptions were issued outside the usual course of professional practice and that the pills obtained with the prescriptions had no legitimate medical purpose. Dr. Heaton violated standards of medical practice by prescribing thousands of doses of oxycodone and other controlled substances to Mike Gowder, Mike Gowder’s family members, and others without adequately documenting the medical need for the prescriptions in patient files and without monitoring patient abuse of the pills they obtained.
Mike Gowder obtained oxycodone by fraud, subterfuge, and deception by filling the illegal prescriptions that Dr. Heaton issued for oxycodone at different pharmacies in Georgia, Tennessee, and North Carolina in an effort to conceal the large numbers of oxycodone pills that Dr. Heaton was prescribing to him.
Between May 1, 2013, and June 16, 2015, Dr. Heaton wrote at least 74 illegal prescriptions for oxycodone to Mike Gowder. In addition to filling the prescriptions at pharmacies in Georgia, Mike Gowder often travelled to North Carolina and Tennessee to fill multiple prescriptions a month at pharmacies in those states. On multiple occasions, Dr. Heaton wrote two prescriptions for oxycodone for Mike Gowder on the same day. On other occasions, Mike Gowder would travel to North Carolina to fill one prescription and Tennessee to fill the second prescription to conceal the fact that multiple prescriptions were written to him on the same day.
Oxycodone and hydrocodone are powerful pain medications that are listed as controlled substances under federal law because each has a high potential for psychological and physical abuse and dependence. Oxycodone, which may be combined with acetaminophen, is sold generically under brand names including Percocet, Endocet, Oxycontin, and Roxicodone. Hydrocodone is sold generically or under brand names including Lortab, Vicodin, and Norco. Alprazolam is commonly prescribed to treat anxiety. It is sold generically and under the brand name Xanax.
John Michael Gowder, 60, Dr. David Gowder, 61, and Dr. James Heaton, 61, all of Blairsville, Georgia, are expected to be arraigned April 9, 2018, at the federal courthouse in Gainesville, Georgia. Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration, and members of the Union County (Georgia) Sheriff's Office, Cherokee County (North Carolina) Sheriff’s Office, Georgia Drugs and Narcotics Agency and Zell Miller Mountain Parkway Drug Task Force.
Assistant U.S. Attorneys William L. McKinnon, Jr., and Laurel R. Boatright are prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Georgia is Strategically Combatting Opioids through Prosecution and Enforcement (SCOPE). We also recommend parents and children learn about the dangers of drugs at www.justthinktwice.gov.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former U.S. Bureau of Prisons Employee Sentenced to over 11 Years in Prison for Sex TraffickingRead the Press Release
SACRAMENTO, Calif. — Charles Carstersen, 55, of Manteca, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 11 years and three months in prison to be followed by 10 years of supervised release, for sex trafficking a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, beginning in April 2014, while employed as an information technology technician at the Bureau of Prisons, Carstersen met the 16-year-old victim and engaged in sex acts with her for money. Between February and March 2015, knowing the victim was underage, he pursued a romantic relationship with her and encouraged her to participate in prostitution, renting hotel rooms for her in the Sacramento area and helping her to post online prostitution advertisements. He also encouraged her to engage in prostitution with two other females that he knew.
“Charles Carstersen’s illegal activities were in direct opposition to the core values of the Federal Bureau of Prisons, a system that holds its employees to a high standard of character and conduct,” said Special Agent in Charge Sean Ragan. “Commercial sexual exploitation of a minor is a serious crime that preys upon vulnerable young men and women in our community. As Carstersen’s victim discovered, there is hope. We encourage anyone who may be a victim to reach out to the National Human Trafficking Resource Center by calling 888-373-7888 or their local FBI office to obtain help and ensure the exploiter faces justice.”
This case was the product of an investigation by the Federal Bureau of Investigation’s Sacramento Child Exploitation Task Force, with assistance from the Sacramento Police Department, the U.S. Department of Justice, Office of the Inspector General, and the Roseville Police Department. Assistant U.S. Attorney Michele Beckwith prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Police Officer Indicted for Deprivation of Civil Rights and Falsification of RecordsRead the Press Release
A former police officer with the Village of Biscayne Park had his initial appearance today on an indictment in Miami for deprivation of civil rights under color of law against two individuals on separate occasions and for falsifying records in a federal investigation. Acting Assistant Attorney General John Gore of the Civil Rights Division, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.
Guillermo Ravelo, 37, of Miami, Florida, is charged with depriving persons of their civil rights under color of law, in violation of Title 18, United States Code, Section 242 (Counts 1 and 3), and falsifying records in a federal investigation, in violation of Title 18, United States Code, Section 1519 (Counts 2 and 4). If convicted of all charges, Ravelo faces a statutory maximum sentence of 60 years in prison.
According to the allegations contained in the indictment, on April 7, 2013, officer Ravelo responded to a request for assistance from another Biscayne Park police officer who had conducted a traffic stop. During the arrest of the driver, officer Ravelo struck the driver with his fist. In a separate incident, on June 14, 2013, while still employed as a police officer with the Biscayne Park Police Department, officer Ravelo responded to a call concerning an ongoing vehicle burglary in Biscayne Park and struck the suspect with a blunt object. Both assaults resulted in bodily injury, and on both occasions officer Ravelo falsified the police reports by misstating the circumstances of the arrests and by omitting that he struck both of the victims.
The investigation was led by the FBI, including the FBI Miami Area Corruption Task Force, FDLE, and the Miami-Dade State Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
An indictment merely contains accusations. A defendant is presumed innocent, unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Former Police Officer Appears in Federal Court on Indictment for Deprivation of Civil Rights and Falsification of Records in a Federal InvestigationRead the Press Release
A former police officer with the Village of Biscayne Park had his initial appearance today on an indictment in Miami for deprivation of civil rights under color of law against two individuals on separate occasions and for falsifying records in a federal investigation.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Katherine Fernandez Rundle, Miami-Dade State Attorney; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.
Guillermo Ravelo, 37, of Miami, Florida, is charged by indictment with depriving persons of their civil rights under color of law, in violation of Title 18, United States Code, Section 242 (Counts 1 and 3); and falsifying records in a federal investigation, in violation of Title 18, United States Code, Section 1519 (Counts 2 and 4). If convicted of all charges, Ravelo faces a statutory maximum sentence of twenty years in prison, three years of supervised release, and up to a $250,000 fine.
According to the allegations contained in the indictment, on April 7, 2013, officer Ravelo responded to a request for assistance from another Biscayne Park police officer who had conducted a traffic stop. During the arrest of the driver, officer Ravelo struck the driver with his fist. In a separate incident, on June 14, 2013, while still employed as a police officer with the Biscayne Park Police Department, officer Ravelo responded to a call concerning an ongoing vehicle burglary in Biscayne Park and struck the suspect with a blunt object. Both assaults resulted in bodily injury, and on both occasions officer Ravelo falsified the police reports by misstating the circumstances of the arrests and by omitting that he struck both of the victims.
Mr. Greenberg commended the investigative efforts of the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and thanked the Miami-Dade State Attorney’s Office for its assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
An indictment merely contain accusations. A defendant is presumed innocent unless and until proven guilty in a court of law.
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.
Former Dover Charter School Principal Sentenced to PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that Noel Rodriguez, age 56, formerly of Dover, Del., was sentenced by U.S. District Court Judge Richard G. Andrews to 13 months of imprisonment and ordered to pay $145,480 in restitution. The sentencing came after Rodriguez pleaded guilty to one count of federal program theft on November 20, 2017.
According to court records and statements made in open court, between 2011 and 2014, while serving as Principal of the Academy of Dover, a charter school in Dover, Del., Rodriguez embezzled $145,480 from the school. He did so by charging personal expenses to four unauthorized credit cards that he opened in the name of the school, abusing the voucher program, and using the charter-school issued procurement credit card for his own personal purchases. Rodriguez used the embezzled funds to purchase camping equipment, electronics, personal travel, and home improvement items, among other things.
U.S. Attorney Weiss said, “Mr. Rodriguez betrayed the public trust by using his position as Principal of the Academy of Dover to further his own interests. The sentence imposed today holds Mr. Rodriguez accountable for stealing $145,000 meant for the children and school he was hired to serve, and it should serve as a warning to others contemplating misappropriating public funds.”
"Mr. Rodriguez defrauded America's taxpayers and the children he promised to serve in a deliberate and methodical way," said Geoffrey Wood, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office. "His sentence should serve as a warning to anyone who intentionally steals or misappropriates Federal education funds for their own selfish purpose: you will be caught and held accountable for your unlawful actions."
"Principals are in positions of public trust and have an obligation to act in the best interest of their schools and the children for which they represent," said Special Agent Gordon B. Johnson of the FBI’s Baltimore Division. “Mr. Rodriguez violated this trust. The FBI will vigorously investigate any official who attempts to use their position to enrich themselves.”
This case is the result of an investigation conducted by the Federal Bureau of Investigation, the U.S. Department of Education – Office of the Inspector General, and the Delaware Attorney General’s Office, with assistance from the Delaware Office of Auditor of Accounts.
Felon Receives 10 Years After Being Found Guilty at TrialRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that United States District Court Senior Judge Callie V. S. Granade sentenced Joseph W. Rohe, Jr. to 117 months (defendant given 3 months credit for the time served in jail since his trial) in prison on April 4, 2018, for the crime of Possession of a Firearm by a Prohibited Person (a felon), a violation of Title 18 U.S.C. section 922(g)(1). Rohe’s sentence was the maximum permitted by law.
On August 8, 2017, the Baldwin County Drug Task Force executed a search warrant at Rohe’s residence in Foley, Alabama, in search of narcotics. Members of the Task Force located nine firearms, in addition to controlled substances and other drug paraphernalia, inside the residence with Rohe. The guns ranged from handguns to shotguns and assault-style rifles. Police were able to determine that all of the firearms had been reported stolen.
Rohe was on probation at the time of his arrest, and had previously been convicted for the felony offense of Manufacturing a Controlled Substance in Baldwin County in 2013.
The Baldwin County Task Force, the Baldwin County Sheriff’s Office, the Bay Minette Police Department and the Federal Bureau of Investigation, Mobile Field Office all contributed in the investigation of this case. Assistant United States Attorney Christopher Baugh prosecuted the case for the Southern District of Alabama.
Federal jury finds former Pollock detention facility corrections officer guilty of briberyRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a federal jury found a former corrections officer at the Federal Correctional Complex in Pollock, Louisiana, guilty of accepting bribes to smuggle contraband.
Byron A. Wyatt, 38, of Marksville, Louisiana, was found guilty of two counts of bribery of public officials and witnesses. United States District Judge Dee D. Drell presided over the trial, which started Tuesday and ended Thursday. The jury returned a guilty verdict after deliberating for approximately an hour and a half. Evidence admitted at trial revealed that Wyatt worked as a corrections officer at the Federal Correctional Complex in Pollock where he accepted thousands of dollars in bribes from a prisoner in 2014 in exchange for smuggling contraband into the prison.
The defendant faces up to 15 years in prison, five years of supervised release and a $250,000 fine for each count. Sentencing has been set for July 13, 2018.
The U.S. Department of Justice Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Earl M. Campbell and Tiffany E. Fields are prosecuting the case.
Farmington Felon Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Gerald Soliz, 42, of Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to drug trafficking and firearms charges in three separate criminal cases. Soliz’s plea agreement recommends a sentence within the range of 100 to 125 months of imprisonment.
Soliz and two other Farmington residents were charged in three separate indictments filed in July 2017, alleging drug trafficking and firearms offenses. The indictments were the result of a multi-agency investigation into a drug trafficking organization allegedly trafficking methamphetamine, heroin and firearms in San Juan County, N.M.
The investigation, which was led by the FBI and the HIDTA Region II Task Force was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The first indictment charges Soliz with distributing methamphetamine on Nov. 3, 2016, Jan. 4, 2017, Jan. 17, 2017, and Jan. 30, 2017. The second indictment charges Soliz and co-defendant Chad McKinney, 31, with being felons in possession of firearms and ammunition and possessing and transferring a machine gun on Dec. 14, 2016. According to the second indictment, Soliz was prohibited from possessing firearms or ammunition because he had previously been convicted of possession of a controlled substance and child sexual assault, and McKinney was prohibited from possessing firearms and ammunition because he had previously been convicted of forgery, unlawful taking of a vehicle and importing more than 50 kilograms of marijuana. The third indictment charges Soliz and co-defendant Marcus McGee, 43, with conspiring to distribute methamphetamine from Dec. 1, 2016 through Dec. 3, 2016, and distributing methamphetamine on Dec. 3, 2016. McGee was charged individually with distributing methamphetamine and heroin, possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm and ammunition on May 23, 2017. McGee was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of a controlled substance.
During today’s proceedings, Soliz entered a guilty plea to charges in the three separate indictments. Specifically, Soliz pled guilty to two counts of distributing methamphetamine and to being a felon in possession of a firearm and ammunition.
In entering the guilty plea, Soliz admitted that he distributed approximately 91.2 grams of methamphetamine to an undercover law enforcement agent on Dec. 3, 2016, and approximately 249 grams of methamphetamine to an undercover law enforcement agent on Jan. 4, 2017. Soliz also admitted that on Dec. 14, 2016, he acted as the middleman to arrange the sale of a machinegun and participated in the sale of the machinegun to an undercover law enforcement agent. Soliz acknowledged that he was prohibited from possessing firearms and ammunition because he had previously been convicted of at least three separate felony offenses. Soliz remains in custody pending a sentencing hearing that has yet to be scheduled.
McKinney and McGee have both entered pleas of not guilty to the charges against them. Charges in indictments are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
These cases were investigated by the Farmington office of the FBI and the HIDTA Region II Task Force. Assistant U.S. Attorney Peter J. Eicker is prosecuting the three cases.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of 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.
Drug Dealer Charged with Overdose Death of Public School Teacher in the BronxRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest and unsealing of a Complaint charging KASHAWN LYONS with distributing the fentanyl that resulted in the death of Matthew Azimi, a public school teacher in the Bronx. The Complaint also alleges that LYONS and a co-defendant, TERRICK WHITAKER, distributed heroin and fentanyl together between February and March 2018 in the Bronx. LYONS was arrested yesterday by the NYPD, and will be presented later today before U.S. Magistrate Judge Henry B. Pitman in Manhattan federal court. TERRICK WHITAKER remains at large.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Kashawn Lyons and Terrick Whitaker peddled potentially lethal heroin and fentanyl near the grounds of a Bronx public school. Additionally, Lyons allegedly sold a dose that was in fact lethal and resulted in the overdose death of a teacher at the school. Working with the NYPD we will continue to combat the epidemic of lethal opioids that is killing people from all walks of life.”
According to the allegations in the Complaint[1]:
On November 30, 2017, Matthew Azimi, a 36-year-old teacher, was found dead inside a faculty bathroom at a special education public school in the Bronx (the “School”) where Mr. Azimi was a teacher. The NYPD responded to the School and began investigating Azimi’s death. An autopsy conducted following Mr. Azimi’s death revealed that he died from a lethal dose of fentanyl. NYPD officers recovered a syringe and a pink glassine bag with no stamp or other distinctive marking next to Mr. Azimi’s body. The NYPD also recovered Mr. Azimi’s cellphone.
As detailed in the Complaint, the NYPD was able to trace the last three completed calls that Mr. Azimi made before he overdosed on November 30, 2017, to a cellphone used by LYONS. Through surveillance, the NYPD learned that LYONS continued to sell heroin and fentanyl in the vicinity of the School. In February 2018, the NYPD made undercover buys of heroin and fentanyl from LYONS and WHITAKER, who was dealing drugs with LYONS, in close proximity to the School. The heroin and fentanyl purchased from LYONS and WHTIAKER were packaged in the same unique pink glassine bags as the one found next to Mr. Azimi’s body.
* * *
LYONS, 31, of the Bronx, was charged with distribution and possession with intent to distribute heroin and fentanyl, and with conspiring to distribute heroin and fentanyl with WHITAKER. LYONS faces a maximum sentence of life in prison and a mandatory minimum sentence of 20 years in prison based upon his distribution of the fentanyl that killed Mr. Azimi.
WHITAKER, 31, of the Bronx, was charged with distribution and possession with intent to distribute heroin and fentanyl, and with conspiring to distribute heroin and fentanyl with LYONS, each of which carries a statutory maximum sentence of 20 years in prison.
The statutory maximum and minimum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD in this case.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Jacob Warren is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Springfield for illegally reentering the United States after being deported.
Francisco Siri, a/k/a Javier Ciravello Perez, 48, was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months in prison. Siri will be subject to deportation proceedings. In January 2018, Siri pleaded guilty to one count of unlawful reentry of a deported alien.
In 1983, Siri was admitted to the United States as an immigrant or lawful permanent resident. Siri lost that status in 1989 after being convicted in Essex County Superior Court of trafficking cocaine. On Nov. 9, 1992, Siri was deported to the Dominican Republic. In October 2017, law enforcement officers in Springfield encountered Siri at the Hampden County Jail and determined him to be unlawfully present in the United States. Siri is currently facing state charges for distributing and trafficking cocaine.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
Department of Justice and Health and Human Services Return $2.6 Billion in Taxpayer Savings from Efforts to Fight Healthcare FraudRead the Press Release
Health and Human Services Secretary Alex Azar and Attorney General Jeff Sessions today released a fiscal year (FY) 2017 Health Care Fraud and Abuse Control Program report showing that for every dollar the federal government spent on healthcare related fraud and abuse investigations in the last three years, the government recovered $4. Additionally, the report shows that the departments’ FY 2017 Takedown event was the single largest healthcare fraud enforcement operation in history.
In FY 2017, the government’s healthcare fraud prevention and enforcement efforts recovered $2.6 billion in taxpayer dollars from individuals and entities attempting to defraud the federal government and Medicare and Medicaid beneficiaries. Some of these fraudulent practices include:- Providers operating “pill mills” out of their medical offices.
- Providers submitting false claims to Medicare for ambulance transportation services.
- Clinics submitting false claims to Medicare and Medicaid for physical and occupational therapy.
- Drug companies paying kickbacks to providers to prescribe their drugs, and pharmacies soliciting and receiving kickbacks from pharmaceutical companies for promoting their drugs.
- Companies misrepresenting capabilities of their electronic health record software to customers.
“Taxpayers work hard every day to help fund government programs for our fellow Americans,” Attorney General Sessions said. “But too many trusted medical professionals like doctors, nurses and pharmacists have chosen to violate their oaths and exploit this generosity to line their pockets, sometimes for millions of dollars. At the Department of Justice, we have taken historic new actions to incarcerate these criminals and recover stolen funds, including executing the largest healthcare fraud enforcement action in American history. These achievements are important, but the department's work is not finished. We will keep up this pace and continue to prosecute fraudsters so that we can give financial relief to taxpayers.”
“Today’s report highlights the success of HHS and DOJ’s joint fraud-fighting efforts,” said HHS Secretary Azar. “By holding individuals and entities accountable for defrauding our federal health programs, we are protecting the programs’ beneficiaries, safeguarding billions in taxpayer dollars, and, in the case of pill mills, helping stem the tide of our nation’s opioid epidemic.”
The Departments of Justice (DOJ) and Health and Human Services (HHS), through the Health Care Fraud Prevention and Enforcement Action Team (HEAT) effort, use data analytics and surveillance to crack down on, prevent and prosecute healthcare fraud. While the program continues to be very successful, the return on investment fluctuates from year to year, in part because cases resulting in large settlements take multiple years to complete. Additionally, there has been a reduction in large monetary settlements as many of the large pharmaceutical manufacturers have entered into Corporate Integrity Agreements with the HHS Office of the Inspector General to establish protections against fraudulent activities.
With teams comprised of law enforcement agents, prosecutors, attorneys, auditors, evaluators and other staff, last year DOJ opened 967 new criminal healthcare fraud investigations of which federal prosecutors filed criminal charges in 439 cases involving 720 defendants. A total of 639 defendants were convicted of healthcare fraud related crimes. In FY 2017, the DOJ and HHS joint Medicare Fraud Strike Force filed 253 indictments and charges against 478 defendants who allegedly billed federal healthcare programs more than $2.3 billion. The Strike Force obtained more than 290 guilty pleas, litigated 33 jury trials and won guilty verdicts against 40 defendants. The Fraud Strike Force secured prison sentences for more than 300 defendants, with an average sentence of 50 months. Since its inception in 2007, Strike Force prosecutors filed more than 1,660 cases charging more than 3,490 defendants who collectively billed the Medicare program more than $13 billion.
Beyond criminal prosecution, the HHS Office of Inspector General (OIG) remains vigilant in excluding providers and suppliers who committed fraud or engaged in the abuse or neglect of patients in federal health programs. A total of 3,244 individuals and entities were excluded in FY 2017. Others were excluded as a result of licensure revocations. These exclusions help to safeguard beneficiaries from future harm that could otherwise be inflicted by such convicted individuals or entities. HHS can also suspend Medicare payments to providers during investigations of credible allegations of fraud. During FY 2017, there were 551 related payment suspensions. More than 4 million claims are reviewed by Medicare each day; resulting in more than one billion claims processed annually for timely payments to healthcare providers and suppliers. Given the volume of claims processed by Medicare each day and the significant cost associated with conducting medical review of an individual claim, the Centers for Medicare and Medicaid Services uses automated edits to help prevent improper payments without the need for manual intervention. The National Correct Coding Initiative consists of edits designed to reduce improper payments in Medicare Part B, and this program saved Medicare $186.9 million during the first nine months of FY 2017.
As the opioid epidemic continues to devastate communities and families across the nation, both DOJ and HHS are responding with new approaches. One out of every three beneficiaries received prescription opioids through Medicare Part D in 2016. Additionally, 401 prescribers were found to have questionable prescribing patterns for beneficiaries at serious risk of opioid misuse or overdose, based on an OIG analysis. Last July, DOJ and HHS announced the largest ever healthcare fraud enforcement action, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in healthcare schemes involving approximately $1.3 billion in false billings. Of those charged, more than 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.
In August, Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a new DOJ pilot program that will use data to help combat and prosecute individuals and entities involved in illegal activities that fuel the crisis. As part of that task force, the department funded 12 experienced assistant United States attorneys for a three-year term to focus solely on investigating and prosecuting healthcare fraud related to prescription opioids, including pill mill schemes and pharmacies that unlawfully divert or dispense prescription opioids for illegitimate purposes. Those prosecutors have already charged several with unlawful distribution of opioids, and their continued success is crucial in combatting this deadly epidemic.
For more details on the Health Care Fraud and Abuse Control Program and today’s report, visit: https://oig.hhs.gov/publications/docs/hcfac/FY2017-hcfac.pdfDavenport Man Sentenced to Prison for Firearm Offense and Supervised Release ViolationRead the Press Release
DAVENPORT, Iowa – On April 5, 2018, United States District Court Chief Judge John A. Jarvey sentenced Darion Daquan Gardner, age 22, of Davenport, to 80 months in prison for a felon in possession of a firearm charge, announced United States Attorney Marc Krickbaum. Gardner was ordered to serve three years of supervised release following his term of imprisonment, pay $100 to the Crime Victims’ Fund, and forfeit the firearm he possessed. He was also sentenced to an additional 15 months in prison for violating the terms of his supervised release. That term of supervision was imposed on November 19, 2015, when he was sentenced in the Southern District of Iowa to 30 months in prison for Fugitive in Possession of a Firearm.
On November 9, 2017, Gardner pleaded guilty to the charge. On March 3, 2017, Davenport police officers attempted to stop a vehicle driven by Gardner, who was known to have a warrant for violating the terms of his federal supervised release. Gardner fled from officers in the vehicle and then ran from the vehicle once it was disabled. A stolen, loaded handgun was found in the vehicle.
This matter was investigated by the Davenport Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Chico Man Sentenced to 15 Years in Prison for Filming his Sexual Abuse of a ChildRead the Press Release
SACRAMENTO, Calif. — Nathan Alexander Drury, 39, of Chico, was sentenced today by Senior U.S. District Judge Garland E. Burrell Jr. to 15 years in prison for production of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between January 1, 2012, and December 1, 2014, Drury filmed images of a child engaged in sexually explicit conduct, including a 47-second video of a nude child who was under the age of 12. That video that Drury produced shows Drury sexually abusing the child.
“Homeland Security Investigations will do whatever it takes to investigate these people who are a scourge to society and prey on innocent children,” said Ryan L. Spradlin, Special Agent in Charge for HSI in Northern California and Northern Nevada. “This type of crime is way too prevalent; but let this serve as a warning for any of those engaged in this illicit and egregious activity – the investigators of the federal government will hold you responsible for your actions.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, and the Chico Police Department. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Chester Man Charged in Overdose DeathRead the Press Release
PHILADELPHIA – Robert Atkins, 28, of Chester, PA, has been charged by indictment with distribution of fentanyl resulting in death, announced United States Attorney Louis D. Lappen and Delaware County District Attorney Katayoun Copeland. Atkins has also been charged with five counts of distributing fentanyl and one count of distributing fentanyl within 1,000 feet of a school. The death charge results from the September 9, 2017 fatal overdose of an Upper Darby Township resident from fentanyl that was allegedly sold to him by Atkins.
“We have a public health crisis in this country involving opioid abuse that is exacerbated by individuals who continue to distribute these deadly substances,” said Lappen. “The impact on our community is immeasurable and tragic. Our office will continue to work with our federal and local partners through the Eastern District of Pennsylvania’s Opioid Law Enforcement Task Force to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.”
“The defendant had no regard for the people to whom he peddled his poison, and continued to distribute this deadly venom on our streets even after causing the death of one of our Delaware County residents,” said Copeland. “Any drug trafficker who distributes these lethal drugs on our streets shall be on notice that we will hold you accountable for the devastation of our communities.”
The case was investigated by the Drug Enforcement Administration, the Delaware County Drug Task Force, and the Folcroft Borough and Upper Darby Police Departments. It is being prosecuted by Assistant United States Attorney Faithe Moore Taylor and, from the Delaware County District Attorney’s Office, Special Assistant United States Attorney Sharon H. McKenna.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bristol Man Indicted in Connection with Distributing Heroin to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on March 29, 2018, a grand jury in Hartford returned an indictment charging ROGER TUSCANO, 47, of Bristol, with distributing heroin.
TUSCANO was arrested on a federal criminal complaint on October 25, 2017, and was released on a $100,000 bond into an inpatient drug treatment program. He absconded from the treatment program on March 12 and was at large until he was located and apprehended on April 4. He appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and was ordered detained.
As alleged in court documents, on April 26, 2017, the Southington Police Department and emergency medical personnel responded to a residence for an unresponsive 54-year-old female who had suffered an apparent drug overdose. Responders attempted lifesaving measures on the victim, including administering naloxone, with minimal effect. The victim was then transported to the hospital.
At the scene, officers seized drug and non-drug evidence, including four wax folds that contained heroin.
The victim died on April 28. The Connecticut Office of the Chief Medical Examiner has determined that the victim’s death was caused by a combination of heroin and clonazepam.
It is alleged that on the morning of April 26, the victim purchased heroin from TUSCANO at a gas station in New Britain.
The indictment charges TUSCANO with possession with intent to distribute, and distribution of, heroin, an offense that carries 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 the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, Southington Police Department and Bristol Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
Bethel Park Man Sentenced for Violating the Federal Hate Crimes Prevention ActRead the Press Release
PITTSBURGH, Pa. – Jeffrey Allen Burgess has been sentenced in federal court to three years’ probation, to include the following special conditions: four months of home detention; continued alcohol treatment through Pyramid Healthcare, Inc., or as directed by the U.S. Probation Office; 50 hours of community service; full participation in a restorative justice program administered by Center for Victims; and restitution in an amount to be determined by the Court at a later date, on a charge of violating the Hate Crimes Prevention Act, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Jeffrey Allen Burgess, age 56.
According to information presented to the Court, on or about November 22, 2016, Burgess violated the Hate Crimes Prevention Act by willfully causing bodily injury to A.M. because of A.M.’s actual and perceived race, color, and national origin.
Assistant U.S. Attorneys Cindy K. Chung and Rachael L. Dizard of the Western District of Pennsylvania and Civil Rights Division Trial Attorney Tona Boyd prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Bethel Park Police Department for conducting the investigation leading to the successful prosecution of Burgess.
Attorney General Sessions Names David Muhlhausen Executive Director of Federal Interagency Council on Crime Prevention and Improving ReentryRead the Press Release
Attorney General Jeff Sessions today named Director of the National Institute of Justice Dr. David Muhlhausen as Executive Director of Federal Interagency Council on Crime Prevention and Improving Reentry (FIRC) and announced that Ja’Ron Smith, Domestic Policy Council Director of Urban Affairs and Revitalization, was also announced as the White House liaison to the FIRC.
"Recidivism rates in this country are unacceptably high," Attorney General Sessions said. "That means more costs for society, more dangerous work for our law enforcement officers, and more crime. That's why, under President Trump's leadership, the Department of Justice is committed to improving outcomes for those reintegrating into society who want to abide by our laws. The FIRC plays a critical role in making that progress possible, and so I want to thank Director Muhlhausen for his willingness to serve and for his hard work on this issue already. I am confident that he will be a success in this new position."
The FIRC was established in response to Executive Order 13826 on March 7, 2018 and is co-chaired by Attorney General Sessions, the Assistant to the President for Domestic Policy Andrew P. Bremberg, and the Senior Advisor to the President in charge of the White House Office of American Innovation Jared Kushner. The FIRC is part of President Trump’s effort to encourage prison reform, reduce recidivism, combat crime, and improve public safety.
Director Muhlhausen joined the National Institute of Justice in 2017. Previously, he served as a research fellow in empirical policy analysis at the Heritage Foundation, where he worked since 1999. Dr. Muhlhausen has testified frequently before Congress on the efficiency and effectiveness of various Federal programs. He has been called by the House and Senate Committees on the Judiciary to discuss how to improve policing strategies, prisoner reentry programs, and other important criminal justice programs.
The National Institute of Justice is dedicated to improving knowledge and understanding of crime and justice issues. The Institute provides objective and independent research and tools to inform the decision-making of policymakers in order to reduce crime and advance justice, particularly at the state and local levels.
More information about the National Institute of Justice can be found at www.nij.gov. More information about OJP can be found at www.ojp.gov.Attorney General Announces Zero-Tolerance Policy for Criminal Illegal EntryRead the Press Release
Attorney General Jeff Sessions today notified all U.S. Attorney’s Offices along the Southwest Border of a new “zero-tolerance policy” for offenses under 8 U.S.C. § 1325(a), which prohibits both attempted illegal entry and illegal entry into the United States by an alien. The implementation of the Attorney General’s zero-tolerance policy comes as the Department of Homeland Security reported a 203 percent increase in illegal border crossings from March 2017 to March 2018, and a 37 percent increase from February 2018 to March 2018—the largest month-to-month increase since 2011.
“The situation at our Southwest Border is unacceptable. Congress has failed to pass effective legislation that serves the national interest—that closes dangerous loopholes and fully funds a wall along our southern border. As a result, a crisis has erupted at our Southwest Border that necessitates an escalated effort to prosecute those who choose to illegally cross our border,” said Attorney General Jeff Sessions. “To those who wish to challenge the Trump Administration’s commitment to public safety, national security, and the rule of law, I warn you: illegally entering this country will not be rewarded, but will instead be met with the full prosecutorial powers of the Department of Justice. To the Department’s prosecutors, I urge you: promoting and enforcing the rule of law is vital to protecting a nation, its borders, and its citizens. You play a critical part in fulfilling these goals, and I thank you for your continued efforts in seeing to it that our laws—and as a result, our nation—are respected.”
On April 11, 2017, Attorney General Jeff Sessions announced a renewed commitment to criminal immigration enforcement. As part of that announcement, the Attorney General issued a memorandum to all federal prosecutors and directed them to prioritize the prosecution of certain criminal immigration offenses.
Today’s zero-tolerance policy further directs each U.S. Attorney’s Office along the Southwest Border (i.e., Southern District of California, District of Arizona, District of New Mexico, Western District of Texas, and the Southern District of Texas) to adopt a policy to prosecute all Department of Homeland Security referrals of section 1325(a) violations, to the extent practicable.
***Media Advisory***Read the Press Release
LAW ENFORCEMENT AND CRIME VICTIM ADVOCATES JOIN TO COMMEMORATE NATIONAL CRIME VICTIMS' RIGHTS WEEK
Back the Blue: Honoring Our Fallen Heroes, and Celebrating Law Enforcement’s Contributions to Crime Victims and Service
CHARLESTON, W.Va. – Federal, state and local law enforcement and advocates of crime victims’ rights will join United States Attorney Mike Stuart in hosting an opening ceremony on Thursday, April 12, 2018, in the Robert C. Byrd United States Courthouse in Charleston, and a Walk/Run for Justice on Friday, April 13, 2018, at Haddad Riverfront Park in Charleston. Both events are being held in recognition of National Crime Victims' Rights Week.
This year’s local theme is “Back the Blue: Law Enforcement’s Contributions to Crime Victims and Service.” The ceremony and walk/run will honor and remember fallen law enforcement who paid the ultimate sacrifice, and celebrate those who continue to serve crime victims and the community. As part of the event, the United States Attorney and the West Virginia Fraternal Order of Police will unveil a statewide tribute to our men and women in blue.
United States Attorney Mike Stuart has called for and West Virginia Governor James “Jim” Justice, II has issued a Proclamation ordering on April 13th: (i) a statewide moment of silence at noon; (ii) simultaneous tolling of the bells at houses of worship across the state; and, (iii) flags flown at half-staff for the entire day.
This years’ events mark the 18th Annual Operation Reach Out event. Operation Reach Out is a collaborative group of federal, state and local agencies and organizations that work to raise awareness about the rights, protections, and services available to crime victims in West Virginia. This event is being held in conjunction with the nationwide observance of National Crime Victims' Rights Week, which begins on April 8 and runs through April 14, 2018.
OPENING CEREMONY:
WHO: United States Attorney Mike Stuart
West Virginia Fraternal Order of Police
Operation Reach Out committee members
Other federal, state and local officials
Staff of United States Attorney's Office, Southern District of West Virginia
WHAT: Operation Reach Out Opening Ceremony for National Crime Victims’ Rights Week – Back the Blue
WHERE: Robert C. Byrd United States Courthouse – Fifth Floor
300 Virginia Street, East
Charleston, WV 25301WHEN: Thursday, April 12, 2018, at noon. The ceremony will immediately follow a reception and lunch beginning at 11:30 a.m.
WALK/RUN FOR JUSTICE & PRE-RACE CEREMONY:
WHO: United States Attorney Mike Stuart
James Bailey, Senior Counsel to Governor Jim Justice
Major General James A. Hoyer, West Virginia National Guard
Operation Reach Out committee members
Survivors of Crime
Other federal, state and local officials
Staff of United States Attorney’s Office, Southern District of West Virginia
WHAT: Walk/Run for Justice and Pre-Race Ceremony
WHERE: Haddad Riverfront Park, Kanawha Boulevard, Charleston, WV
WHEN: Friday, April 13, 2018. Registration to begin at 11:00 a.m. Ceremony at 11:30 a.m. Race at noon.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Thursday 5 April 2018
Wheeling man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Tysaun A. Pugh, of Wheeling, West Virginia, was arrested today and appeared in federal court to face drug charges after being indicted by a federal grand jury on April 3, 2018, United States Attorney Bill Powell announced.
Pugh, also known as “Chubbs,” age 20, was indicted on two counts of “Distribution of Heroin within 1,000 Feet of a Protected Location,” and one count of “Aiding and Abetting the Distribution of Heroin.” Pugh is accused of selling heroin near Jensen Playground and Wilson Playground in January 2018 in Ohio County.
Pugh faces up 40 years incarceration and a fine of up to $2,000,000 for each of the distribution counts and faces up to 20 years incarceration and a fine of up to $1,000,000 for the aiding and abetting 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 Stephen L. Vogrin is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, are investigating. The United States Marshals Service made the arrest.
U.S. Magistrate Judge James E. Seibert presided.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
West Tennessee Man Sentenced to 110 Months in Federal Prison for Possession and Receipt of Child PornographyRead the Press Release
Memphis, TN – A Cottage Grove, Tenn, man has been sentenced to 110 months in federal prison for possession and receipt 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, in February 2017, law enforcement officers in Henry County, Tenn, received a lead out of Belvidere, Illinois, regarding Russell Jann, 44, of Cottage Grove. Based on that lead and the ensuing investigation, agents learned that Jann had been engaging in sexually explicit online chats and conversations via text messages with at least four minor victims ranging in age from 15 to 17 years old.
U.S. Attorney D. Michael Dunavant said, "Sexual predators who victimize children cannot hide from ultimate detection and aggressive prosecution by this office. This significant sentence will ensure accountability and incapacitation for the offender, promote deterrence of others who seek to prey upon children, and accomplish justice for the vulnerable victims in this disturbing case."
Jann exchanged messages with the victims containing pictures of his genitalia and videos of himself masturbating and received similar sexually explicit images and/or videos of at least 3 of the 4 minor victims. Agents also recovered a laptop computer and external hard drive from Jann’s home that contained thousands of images and videos of child pornography depicting children as young as infants. Jann pleaded guilty to receipt and possession of child pornography in November 2017.
On April 4, 2018, the Honorable J. Daniel Breen sentenced Jann to 110 months imprisonment and 5 years supervised release to begin after incarceration. He was also ordered to pay $4,000 in restitution.
This case was brought 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 sexually exploitation and abuse. Led by the United States Attorney’s 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 visits www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources."
This case was investigated by the FBI, Belvidere Police Department, Belvidere, Illinois; and Henry County Sheriff’s Office.
Assistant U.S. Attorney Kasey Weiland prosecuted this case on the government’s behalf.
Wentzville Man Indicted for Impersonating an FBI AgentRead the Press Release
St. Louis, MO – Mark Van Ronzelen, 45, of Wentzville, was arrested today on an indictment charging him with impersonation of a Federal Bureau of Investigation (FBI) special agent and possession of a fraudulent FBI identification card.
The indictment alleges that on March 5, 2018, Van Ronzelen followed J.W.’s vehicle to J.W.’s residence and displayed to J.W. a fraudulent FBI identification card and law enforcement badge. Van Ronzelen advised J.W. that he was employed by the FBI.
If convicted, false impersonation of an officer carries a maximum penalty of 3 years in prison and a $250,000 fine. Possession of a fake government-issued card or badge carries a maximum penalty of 6 months in prison and a fine of $5,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
The FBI encourages anyone who has any information concerning this investigation to contact the FBI at 314-589-2500.
This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Waterville Man Sentenced Two Years for Illegal Receipt and Shipment of FirearmsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Iulian Petre, a/k/a “Julian Petre,” 51, of Waterville, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to two years in prison and three years of supervised release for illegally receiving and shipping firearms. He was convicted of these charges on August 28, 2017, following a six-day jury trial.
Court records and trial evidence revealed that in 2012 and 2013, Petre purchased and received firearms from out-of-state sellers intending to unlawfully export them. He shipped some of these firearms to Romania. The export of these firearms required authorization from the U.S. Department of State, which the defendant knowingly failed to obtain.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the U.S. Department of Commerce’s Bureau of Industry and Security.
Washington D.C. Woman Pleads Guilty to Providing Contraband to InmateRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tianna Thompson, age 26, of Washington D.C., pleaded guilty on April 4, 2018, before U.S. District Court Judge James M. Munley to the charge of providing contraband to an inmate at the United States Penitentiary at Canaan.
According to United States Attorney David J. Freed, Thompson admitted to providing several small packages of marijuana to inmate Charles Elegalam, age 30, formerly of Washington D.C., on July 1, 2017, during a social visit at the United States Penitentiary at Canaan. The marijuana packages were subsequently seized from Elegalam by prison staff members. Thompson and Elegalam were indicted by a grand jury in September 2017. The charges against Elegalam are currently pending.
Judge Munley ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Valley, Alabama Woman Indicted for Filing False Tax Returns and Stealing from Her EmployerRead the Press Release
Montgomery, Ala. – A federal grand jury has returned an indictment, which was unsealed today, charging a woman with filing false tax returns and wire fraud, announced U.S. Attorney Louis V. Franklin, Sr. for the Middle District of Alabama, and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, from February 2007 through May 2014, Alita Baker Edeker (48) of Valley, Alabama stole over $500,000 of her employer’s funds for her own personal benefit and the benefit of others, by directing customer payments to debit and credit cards she controlled. The indictment further alleges that Edeker made false statements and representations in the company’s books and records in order to conceal her misappropriation. After misappropriating the funds, the indictment further alleges that Edeker willfully filed false U.S. individual income tax returns for tax years 2011, 2012, and 2013 that did not report the money.
If convicted Edeker faces a statutory maximum sentence of 20 years in prison for each wire fraud count and three years in prison for each count of filing a false tax return. Edeker also faces a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Attorney Franklin and Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and the Auburn Police Department, who investigated the case, and Tax Division Trial Attorney Grace Albinson and Assistant U.S. Attorney Ben Baxley, who are prosecuting this case.
United States Obtains $30.5 Million Fraud Judgment Against Texas-Based Lab Services Company and CEORead the Press Release
HOUSTON – A federal judge has ruled that BestCare Laboratory Services LLC and its founder and CEO Karim Maghareh defrauded Medicare by billing for thousands of miles that were not actually travelled, announced U.S. Attorney Ryan Patrick.
U.S. District Judge Lynn Hughes of the Southern District of Texas awarded the United States $30,571.635 in damages from the Webster, Texas - based company. BestCare serves nursing homes throughout Texas, including San Antonio, Dallas, Austin, Waco and El Paso.
Dr. Richard Drummond discovered the fraud after hiring a former BestCare employee and learning of their billing practices. Drummond filed suit under the False Claims Act which allows private citizens who know of fraud to file suit on behalf of the United States.
As detailed in that lawsuit, Medicare compensates laboratories which serve nursing home patients approximately a dollar per mile for technician travel. The travel must be for the purpose of collecting a specimen from a home-bound or nursing home-bound patient, not for the purpose of picking up and transporting specimens already collected. The miles are supposed to be pro-rated among the number of patients from whom they are collected.
The court found that BestCare not only failed to prorate miles, but shipped batches of specimens by air freight to Houston at a cost of approximately $100 per batch then billed Medicare for the round-trip distance between the nursing home and the lab in Webster.
The court found BestCare billed Medicare for $10.1 million in claims for miles which no lab tech traveled. The False Claims Act mandates trebling of the damages, resulting in a judgment of $30.5 million.
The FBI, U.S. Department of Health and Human Services – Office of Inspector General investigated the case along with the U.S. Attorney’s Office and Civil Division of the U.S. Department of Justice. Assistant U.S. Attorneys Michelle Zingaro and Daniel David Hu and Trial Attorney Richard Nicholson handled the matter.
Uniontown Man Facing Fraud and Tax Charges Related to His Embezzlement from His EmployerRead the Press Release
PITTSBURGH, PA -- A Fayette County resident has been indicted by a federal grand jury in Pittsburgh on charges alleging that he committed mail fraud, tax evasion, and willful failure to file income tax returns, United States Attorney Scott W. Brady announced today.
The four-count indictment, returned on April 4, named Eugene Traficante, 42, of Uniontown, Pennsylvania.
According to the indictment, Traficante was charged with one count of mail fraud, one count of tax evasion, and two counts of willful failure to file an income tax return, all based on his having embezzled more than $340,000 from his employer, Doyle Refrigeration Inc., a commercial refrigeration repair and maintenance services provider.
The law provides for a maximum total sentence of up to 20 years in prison and a fine of up to $250,000 for the mail fraud offense, up to five years in prison and a fine of up to $250,000 for tax evasion and up to one year in prison and up to a $100,000 fine for each count of conviction of failure to file tax returns. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Internal Revenue Service and the United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Postal Worker Pleads Guilty to Making Fraudulent Claims for Federal Workers’ Compensation BenefitsRead the Press Release
U.S. Attorney Duane A. Evans announces the guilty plea today by LEXY LOPEZ-BATEMAN, age 40, of Slidell, before U.S. District Judge Lance M. Africk.
According to court documents, LOPEZ-BATEMAN was an employee of the United States Postal Service when she suffered an on-the-job ankle injury in 2015. She was therefore entitled to workers compensation benefits, including costs of travel to and from medical appointments. However, beginning in 2015, she submitted fraudulent requests for reimbursement to the U.S. Department of Labor. Moreover, even though LOPEZ-BATEMAN completed her treatment in January 2016, she continued to submit fraudulent reimbursement requests through June 2017. LOPEZ-BATEMAN filed over 300 fraudulent claims in which she either exaggerated her mileage or where no medical appointment occurred. In total, LOPEZ-BATEMAN defrauded the U.S. government of $16,851.10.
LOPEZ-BATEMAN pleaded guilty to a bill of information charging her with making false statements in connection with receiving federal workers compensation benefits. She faces a minimum of 5 years in prison, a maximum $250,000.00 fine, and up to three years of supervised release. Sentencing is scheduled for June 28, 2018 at 1:30 p.m. before U.S. District Judge Lance M. Africk.
U.S. Attorney Evans praised the investigative efforts of the U.S. Postal Services Office of Inspector General. The prosecution is being handled by Assistant United States Attorney Matthew Payne.
U.S. Attorney’s Office Reaches Settlement with Gymnastics Center to Ensure Equal Access for Children with DisabilitiesRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office today reached an Americans with Disabilities Act (ADA) settlement with a Hammonton-based gymnastics program to ensure equal access for individuals with disabilities in its classes, U.S. Attorney Craig Carpenito announced.
The agreement resolves an ADA complaint filed by parents of a six year-old child with medical disabilities, including one that requires the use of a gastrointestinal feeding tube. The child’s parents alleged that Youth Fitness and Fun LLC d/b/a Flyers’ Team, Flyers’ Academy and Flyers Gymnastics Academy (“Flyers”) refused to make reasonable modifications to its program for the child and then excluded the child because of her disabilities. The child was active in other physically-demanding, age-appropriate sports, and was allowed by her physician to participate in Flyers’ program.
After conducting an investigation, the U.S. Attorney’s Office determined that Flyers excluded the child from its program in violation of the ADA. Flyers cooperated with the investigation and has agreed to develop and amend its policies and practices to comply with the ADA and the Department of Justice’s implementing regulations. Flyers has also agreed to pay $1,000 in damages to the child.
The Justice Department, including the nation’s U.S. Attorneys, plays a critical role in enforcing the ADA. Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public, including gymnasiums and other places of exercise and recreation. The law requires that these places of public accommodation make reasonable modifications to their policies, practices, and procedures when necessary to avoid discrimination on the basis of disability, unless the entity can show that making the modifications would fundamentally alter the nature of the service, program, or activity.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S. Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
Additional information about the ADA can be found at www.ada.gov or by calling the Department of Justice’s toll-free information line at 800-514-0301 and 800-514-0383.
This government is represented by Assistant U.S. Attorney David V. Simunovich of the U.S. Attorney’s Office Civil Division.
Two Indicted in Seizure of More Than $300,000 Worth of FentanylRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Ramon DeJesus Magana, 40, of Paramont, and Maurilio Serrano-Cardenas, 27, of Fontana, charging them with conspiring and possessing fentanyl with intent to distribute, U.S. Attorney McGregor W. Scott announced.
According to court documents, Magana and Serrano-Cardenas were arrested on February 21, 2018 after delivering five kilograms of fentanyl and one kilogram of a chemical that is an immediate precursor to fentanyl (4-ANPP) to an undercover officer in Turlock, California. The undercover officer had negotiated to pay $30,000 for each kilogram of the controlled substances.
This case is the product of an investigation by the Drug Enforcement Administration and TRIDENT, a federally supported task force that is composed of agents from the El Dorado County Sheriff’s Department, Auburn Police Department, Rocklin Police Department, Placer County Sheriff’s Department, Placer County District Attorney’s Office, California Highway Patrol, California Department of Corrections and Rehabilitation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bureau of Land Management, and California National Guard. Assistant U.S. Attorney Kathleen A. Servatius is prosecuting the case.
Magana is scheduled to be arraigned on the indictment on April 6, 2018. Serrano-Cardenas will make his initial appearance on April 19, 2018. Both men have been released on bond.
If convicted, the defendants face a maximum statutory penalty of life in prison and a $10 million dollar fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two District Men Found Guilty of Murder in 2014 Shooting in Southeast WashingtonRead the Press Release
WASHINGTON – Tyrone Michael Hight, 26, and James Young, 25, both of Washington, D.C., were found guilty by a jury today of murder and other charges stemming from the slaying of a man in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Hight and Young were found guilty of first-degree felony murder while armed, second-degree murder while armed, armed robbery, first-degree burglary while armed, tampering with evidence, obstruction of justice, and related weapons offenses. The verdicts followed a trial in the Superior Court of the District of Columbia. The defendants are scheduled to be sentenced on June 22, 2018 by the Honorable Milton C. Lee.
According to the government’s evidence, on the morning of Aug. 31, 2014, the victim, Willard Carlos Shelton, drove to the 2500 block of Pomeroy Road SE to purchase narcotics. About10 minutes after Mr. Shelton arrived, Hight and Young produced firearms, attempted to rob him, and then pistol-whipped him. Hight and Young then fired several shots at Mr. Shelton, who attempted to escape the onslaught of bullets.
One of the bullets struck Mr. Shelton in the abdomen, knocking him to the ground. Once the gunshots ended, Young went over to Mr. Shelton and took his personal effects, including his wallet and keys. Young then pointed a gun at Mr. Shelton’s head, but this time he did not fire. Mr. Shelton, 38, of Alexandria, Va., later died from his injuries.
Following the shooting, Hight and Young fled the scene, broke into a nearby apartment, and hid the firearms used to shoot Mr. Shelton. Young later attempted to obstruct justice by making threatening statements directed at a government witness. Hight later attempted to obstruct justice by convincing someone who was not a witness to the shooting to make false statements to law enforcement about the murder.
Hight and Young were arrested in September 2014 and have been in custody ever since.
In announcing the verdicts, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Liaison and Operations Manager Linda McDonald; Paralegal Specialists Debra Joyner, Sharon Newman, and Kelly Blakeley; Criminal Investigators John Marsh and Zachary McMenamin; Litigation Technology Specialists Leif Hickling, Anisha Bhatia, and Jeanie Latimore-Brown; Victim/Witness Services Coordinators M. Laverne Perry, Wanda Queen, Tanya Via, La June Thames and Katina Adams-Washington, and Victim/Witness Advocate Marcia Rinker.
Finally, she expressed appreciation for the work of Assistant U.S. Attorneys Richard Barker and Laura Crane, who investigated and prosecuted the case, as well as Assistant U.S. Attorneys Kendra Briggs, Jeffrey Nestler, Thomas Saunders, and former Assistant U.S. Attorney Robert Eckert, who investigated and indicted the case.
Three People Charged in Stolen Identity Refund Fraud SchemeRead the Press Release
CAMDEN, N.J. – Three people were arrested today for their alleged roles in an extensive scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Craig Carpenito announced.
Jorge Gutierrez, 39, of Merchantville, New Jersey; Alberto Sanchez, 34, of Camden; and Roque Bisono, 29, of Maple Shade, New Jersey, were indicted by a grand jury for conspiring to defraud the United States, theft of government funds, and aggravated identity theft. Sanchez was additionally indicted on witness tampering charges, and Bisono was indicted for making false statements to federal law enforcement officials in connection with the investigation. They appeared before U.S. Magistrate Judge Joel Schneider in Camden federal court.
A fourth defendant, Awilda Henriquez, 32, of Camden, remains at large.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.
For the 2013 tax year, in excess of 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico, where the refunds were directed to be mailed to a small section of Pennsauken, New Jersey. Of the 3,300 returns filed, several refund checks were issued and ultimately cashed at check cashing agencies in New Jersey, Philadelphia, and New York using false and fraudulent identifications, including fake New Jersey driver's licenses, fake Social Security cards, and fake Department of Homeland Security Permanent Resident Identification cards.
Gutierrez, Bisono, Sanchez, and their conspirators allegedly obtained stolen identities of residents of Puerto Rico and used them to file fraudulent income tax returns seeking refunds to which they were not entitled. The conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. The conspirators paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in and around Camden, New Jersey. The check couriers presented fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks. In total, the scheme caused $565,091 in losses to the U.S. Treasury.
The counts of conspiracy to steal government funds are punishable by up to five years in prison. The counts of theft of government funds are punishable by a maximum potential penalty of 10 years in prison. The count of false statements is punishable by imprisonment of up to five years. The witness tampering count is punishable by up to 20 years in prison. The count of aggravated identity theft is punishable a statutory mandatory prison sentence of two years that must be served consecutively to any term of imprisonment imposed for the violation of any other count. All the counts are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark and Special Agent in Charge Vicki S. Duane in Philadelphia, and special agents of the U.S. Postal Service Office of Inspector General, with assistance from the U.S. Postal Inspection Service, under the direction of Inspector in Charge Daniel B. Brubaker, Philadelphia Division, with the investigation leading to today’s charges and arrests.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Christina O. Hud of the Criminal Division, Camden.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three O.C. Men Face Federal Narcotics Charges that Allege Distribution of Counterfeit Opioid Pills Containing FentanylRead the Press Release
SANTA ANA, California – Three Orange County men have been charged in a scheme to use the synthetic opioid fentanyl and a similar drug to manufacture and distribute counterfeit pharmaceutical pills designed to look like brand-name oxycodone pills.
A criminal complaint filed Wednesday in United States District Court alleges that the men obtained fentanyl and an analogue called cyclopropyl fentanyl through internet suppliers, used a pill press to make counterfeit pills, and distributed the narcotics through the mails, often arranging sales through a darknet marketplace.
The complaint alleges one count of conspiracy to distribute controlled substances. The three defendants named in the complaint are:
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Wyatt Pasek, 21, of Santa Ana;
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Isaiah Suarez, 22, of Newport Beach; and
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Duc Cao, 20, of Orange.
All three men were taken into custody Tuesday afternoon in conjunction with the execution of federal search warrants across Orange County. They were charged in federal court on Wednesday and made their initial court appearances on Wednesday afternoon. All three defendants remain in custody at this time.
When the defendants were arrested, authorities seized a pill press lab in Suarez’s apartment, along with bags that contained nearly 3 kilograms of what appear to be counterfeit oxycodone and Xanax pills, and bags that contained approximately 4.5 kilograms of white and blue powders that are currently being tested. A search of Pasek’s residence revealed approximately 13,000 pills that appeared to be counterfeit oxycodone and bundles of United States currency.
“Fentanyl is an extremely powerful drug that is further complicating the severe problems we are seeing in relation to this nation’s opioid epidemic,” said United States Attorney Nicola T. Hanna. “Using fentanyl in a counterfeit pill that appears to look like a less-lethal opioid dramatically increases the possibility of overdoses – and deaths that we see far too often.”
“Our country is facing a multifaceted threat: dangerous opioids such as fentanyl and its analogues are inundating our mail system and are being pressed into counterfeit pharmaceutical pills that are flooding our streets,” said DEA Special Agent in Charge David J. Downing. “These are alarming trends, and multi-agency coordination is paramount to combating this epidemic.”
“We recognize that the opioid epidemic transcends the boundaries of our Costa Mesa community and this case is a prime example of that. Fentanyl is a highly dangerous opioid that contributes heavily to the epidemic,” said Costa Mesa Police Chief Rob Sharpnack. “We want to thank the agencies involved for partnering with us on the investigation that got these three individuals off the streets.”
During a six-month investigation led by the DEA and the Costa Mesa Police Department, authorities recovered blue pills stamped “A 215” that resemble 30 mg. pills of the opioid oxycodone. The pills, which were linked to Pasek, were later tested and determined to contain fentanyl or cyclopropyl fentanyl, according to the affidavit in support of the complaint.
On March 5, Cao was observed depositing seven packages into a Postal Service collection box. When those packages were searched pursuant to a court order, authorities discovered approximately 1,400 blue pills with “A 215” markings that were being shipped to addresses across the United States, according to the affidavit, which noted that pills from all seven parcels tested positive for fentanyl.
On April 2, Cao visited Pasek’s residence, then travelled to the pill press lab in Newport Beach, and then drove to a Post Office in Santa Ana, where authorities later recovered 13 boxes that were similar to those seized on March 5. The 13 boxes contained over 4,000 “A 215” pills.
The affidavit describes intelligence obtained during the investigation that “indicated that Pasek only sells narcotics through the internet and ships his products through the mail.” Authorities believe that Pasek’s drug trafficking activities are done through “darknet marketplaces where the primary currency of doing business is bitcoin.”
During his court appearance on Wednesday, Cao was ordered detained as he is a citizen of Vietnam and his student visa has expired. A preliminary hearing was scheduled for April 18, and an arraignment was set for April 23.
Suarez’s detention hearing was continued until this afternoon, and Pasek is due back in court Friday afternoon.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If they were to be convicted of the charge of conspiracy to distribute controlled substances, each defendant would face a statutory maximum sentence of 20 years in federal prison.
This matter is being investigated by the Drug Enforcement Administration, the Costa Mesa Police Department, the United States Postal Inspection Service, IRS Criminal Investigation, the Food and Drug Administration - Office of Criminal Investigations, and the United States Marshals Service.
This case is being prosecuted by Assistant United States Attorney Brett Sagel of the Santa Ana Branch Office.
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Three Gang Members Agree to Plead Guilty to Federal Hate Crime Charges Related to Firebombing of African-American ResidencesRead the Press Release
The Justice Department today announced that three East Los Angeles men have agreed to plead guilty to federal civil rights and racketeering charges for participating in the 2014 firebombing of African-American residences inside the Ramona Gardens Housing Development.
On the night of May 11, 2014, eight members of the Big Hazard street gang, which claims Ramona Gardens as its territory, assembled, prepared Molotov cocktails, drove outside of Ramona Gardens, then reentered the housing development on foot to avoid its security cameras. Once the gang members located their pre-selected targets, they smashed the windows of four apartments and threw lit Molotov cocktails into the residences, according to the plea agreements. Three of the four targeted apartments were occupied by African-American families, including women and children, who were sleeping at the time of the unprovoked attack.
In plea agreements filed today in the Central District of California, the three defendants – Jose Saucedo, aka “Lil’ Moe,” 24, Edwin Felix, aka “Boogie,” 26, and Jonathan Portillo, aka “Pelon,” 23, all members of the Big Hazard street gang – admitted that they targeted the apartments because of the occupants’ race and color, and with the intent to force the victims to move away from the federally funded housing complex in the Boyle Heights section of Los Angeles.
“The defendants’ racially motivated and unprovoked attack on families sleeping peacefully in their homes caused fear and destruction,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to vigorously prosecute violent acts of hate.”
“It was a miracle that no one was injured in these racially motivated attacks,” said United States Attorney Nicola T. Hanna. “These defendants have admitted their goal was to drive African Americans out of this housing facility. This simply will not be tolerated, and we will take any and all steps necessary to protect the civil rights of every person who lives in the United States.”
"The innocent victims of this cold-blooded attack were targeted based on the color of their skin," said Paul D. Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "I'm proud of the agents, detectives and prosecutors who identified the defendants and continue to investigate this very challenging case. These plea agreements are the first step in delivering justice to the victims, as well as delivering the universal message that there is no place for racially motivated hatred or violence in the United States."
All three defendants have agreed to plead guilty to conspiring to violate the civil rights of the African-American families, specifically the constitutional right to live in a residence free from “injury, intimidation and interference based on race.”
The three defendants have also agreed to plead guilty to using force – a dangerous weapon, namely, explosives, and fire – to injure, intimidate and interfere with the African-American residents because of their race and because they were living in the Ramona Gardens Housing Development. They also agreed to plead guilty to committing a violent crime in aid of racketeering on behalf of the Hazard gang.
In addition, Portillo has agreed to plead guilty to a charge of using fire to commit another federal felony. Saucedo and Felix have agreed to plead guilty to a charge of attempted malicious damage of federal property through the use of fire. Once they enter their guilty pleas, all three defendants will face potential sentences of over 30 years in federal prison.
Three other members of the Big Hazard gang who were charged in this case – Francisco Farias, aka “Bones,” 27, Joel Matthew Monarrez, aka “Gallo,” 23; and Jose Zamora, aka “Fresco,” 28 – previously pleaded guilty to federal hate crimes and related offenses. These defendants are pending sentencing.
The final two defendants charged in this case, Carlos Hernandez, aka “Rider,” 33, and Josue Garibay, aka “Malo,” 24, are scheduled for trial before United States District Judge Christina A. Snyder on July 31.
According to an indictment unsealed in the summer of 2016, Hernandez instructed the other defendants to meet at a location in Hazard gang territory on Mother’s Day in 2014, to prepare for the attack. At the meeting, Hernandez allegedly distributed materials to be used during the firebombing, including disguises, gloves, and other materials. Hernandez explained that the order for the racially motivated attack had come from the Mexican Mafia, a prison gang that controls the majority of Hispanic gangs in Southern California.
Furthermore, according to the indictment, Hernandez instructed the other defendants to break the victims’ windows, allowing the Molotov cocktails to make a clean entry, ignite the firebombs, and throw them into the victims’ residences in order to maximize damage. One of the victims, a mother sleeping on her couch with her infant child in her arms, narrowly missed being struck by one of the defendants’ firebombs.
The investigation into the firebombing is being conducted by agents and detectives with the Federal Bureau of Investigation; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Justice Department Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section.
Three Gang Members Agree to Plead Guilty to Federal Hate Crime Charges Related to Firebombing of African-American ResidencesRead the Press Release
LOS ANGELES – Three East Los Angeles men have agreed to plead guilty to federal civil rights and racketeering charges for participating in the 2014 firebombing of African-American residences inside the Ramona Gardens Housing Development.
On the night of May 11, 2014, eight members of the Big Hazard street gang, which claims Ramona Gardens as its territory, assembled, prepared Molotov cocktails, drove outside of Ramona Gardens, then reentered the housing development on foot to avoid its security cameras. Once the gang members located their pre-selected targets, they smashed the windows of four apartments and threw lit Molotov cocktails into the residences, according to the plea agreements. Three of the four targeted apartments were occupied by African-American families, including women and children, who were sleeping at the time of the unprovoked attack.
In plea agreements filed today in United States District Court, the three defendants – Jose Saucedo, aka “Lil’ Moe,” 24, Edwin Felix, aka “Boogie,” 26, and Jonathan Portillo, aka “Pelon,” 23, all members of the Big Hazard street gang – admitted that they targeted the apartments because of the occupants’ race and color, and with the intent to force the victims to move away from the federally funded housing complex in the Boyle Heights section of Los Angeles.
“It was a miracle that no one was injured in these racially motivated attacks,” said United States Attorney Nicola T. Hanna. “These defendants have admitted their goal was to drive African Americans out of this housing facility. This simply will not be tolerated, and we will take any and all steps necessary to protect the civil rights of every person who lives in the United States.”
“The innocent victims of this cold-blooded attack were targeted based on the color of their skin,” said Paul D. Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “I’m proud of the agents, detectives and prosecutors who identified the defendants and continue to investigate this very challenging case. These plea agreements are the first step in delivering justice to the victims, as well as delivering the universal message that there is no place for racially motivated hatred or violence in the United States.”
“The defendants’ racially motivated and unprovoked attack on families sleeping peacefully in their homes caused fear and destruction,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to vigorously prosecute violent acts of hate.”
All three defendants have agreed to plead guilty to conspiring to violate the civil rights of the African-American families, specifically the constitutional right to live in a residence free from “injury, intimidation and interference based on race.”
The three defendants have also agreed to plead guilty to using force – a dangerous weapon, namely, explosives and fire – to injure, intimidate and interfere with the African-American residents because of their race and because they were living in the Ramona Gardens Housing Development. They also agreed to plead guilty to committing a violent crime in aid of racketeering on behalf of the Hazard gang.
In addition, Portillo has agreed to plead guilty to a charge of using fire to commit another federal felony. Saucedo and Felix have agreed to plead guilty to a charge of attempted malicious damage of federal property through the use of fire.
Once they enter their guilty pleas, all three defendants will face potential sentences of over 30 years in federal prison.
Three other members of the Big Hazard gang who were charged in this case – Francisco Farias, aka “Bones,” 27, Joel Matthew Monarrez, aka “Gallo,” 23; and Jose Zamora, aka “Fresco,” 28 – previously pleaded guilty to federal hate crimes and related offenses. These defendants are pending sentencing.
The final two defendants charged in this case, Carlos Hernandez, aka “Rider,” 33, and Josue Garibay, aka “Malo,” 24, are scheduled for trial before United States District Judge Christina A. Snyder on July 31.
According to an indictment unsealed in the summer of 2016, Hernandez instructed the other defendants to meet at a location in Hazard gang territory on Mother’s Day in 2014, to prepare for the attack. At the meeting, Hernandez allegedly distributed materials to be used during the firebombing, including disguises, gloves and other materials. Hernandez explained that the order for the racially motivated attack had come from the Mexican Mafia, a prison gang that controls the majority of Hispanic gangs in Southern California.
Furthermore, according to the indictment, Hernandez instructed the other defendants to break the victims’ windows, allowing the Molotov cocktails to make a clean entry, ignite the firebombs, and throw them into the victims’ residences in order to maximize damage. One of the victims, a mother sleeping on her couch with her infant child in her arms, narrowly missed being struck by one of the defendants’ firebombs.
The investigation into the firebombing is being conducted by agents and detectives with the Federal Bureau of Investigation; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, Justice Department Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section, and Assistant United States Attorney MiRi Song of the General Crimes Section.
The Estate of A Scranton Physician Agrees to Pay $625,000 to Settle False Claims Act ViolationsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Estate of Dr. Leroy Pelicci has agreed to pay the United States $625,000 to settle False Claims Act allegations.
According to United States Attorney David J. Freed, Leroy J. Pelicci was a physician and owner of the Pelicci Pain Relief Center in Scranton, Pennsylvania until his death in March 2014. The United States alleged that Dr. Pelicci submitted numerous improper claims for payment to the Department of Labor Office of Workers’ Compensation Programs under the Federal Employees Compensation Act and the Federal Employees Health Benefits Program for trigger point injections, which were upcoded to receive a higher reimbursement amount than permitted, between June 11, 2003 and March 4, 2014. The settlement reflects the amount of loss to the Government as a result of these allegations, as well as the costs of the investigation.
The United States Postal Service Office of Inspector General (USPS OIG) Special Agent in Charge Kenneth G. Cleevely, Pittsburgh, stated, “The U.S. Postal Service pays about $3 billion per year in workers compensation costs. USPS OIG special agents, along with our law enforcement partners, conduct investigations of those individuals who choose to take advantage of the system. I want to thank the U.S. Attorney’s Office for their diligence in pursuit of this civil settlement, and for recovering what the government is due.”
Scott Rezendes, Special Agent in Charge, Office of Personnel Management Office of Inspector General (OPM OIG) said, “Today’s settlement should serve as a warning to those who would attempt to defraud the Government. The OPM OIG is committed to protecting the integrity of the Federal Employees Health Benefits Program, and we will continue to investigate and prosecute illegal billing practices that waste taxpayer dollars and increase the cost of medical care.”
This case was investigated by the Office of Personnel Management Office of Inspector General, the United States Postal Service Office of Inspector General and the United States Department of Labor Office of Inspector General. The civil settlement was handled by Assistant United States Attorney Melissa Swauger.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Texas Man Pleads Guilty to Making Interstate ThreatsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Shae Ryan Estes, 41, previously of McKinney, Texas, pleaded guilty today in U.S. District Court to transmitting threats in interstate commerce.
According to court records, in the summer of 2017, the defendant, while living in Texas, made two threatening telephone calls to his ex-girlfriend, who was then in Maine. The calls were recorded on her answering machine. In the calls, the defendant threatened that he would “hunt” her down, that she was “next,” that she would “suffer,” and that if he ever got back to Maine he would kill her current boyfriend, various members of her family, and “anyone that gets in my [expletive] way.”
The defendant faces up to 5 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the FBI and the Cumberland County Sheriff’s Office.
Takoma Park Man Sentenced to 14 and a Half Years in Prison for Drug and Firearm OffensesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge George J. Hazel sentenced Stanley Eugene Green, Jr., age 42, of Takoma Park, Maryland, to fourteen and a half years in prison, followed by five years of supervised release for Distribution of Heroin and Possession of Firearms in Furtherance of a Drug Trafficking Crime.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr., of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Baltimore Field Division; and Police Chief Antonio DeVaul of the Takoma Park Police Department.
According to his plea agreement, between in or about February 2015, and continuing through April 27, 2017, Green distributed, conspired to distribute, and possessed with intent to distribute heroin and fentanyl. During the conspiracy, Green obtained distribution quantities of heroin (that contained fentanyl), and redistributed those drugs to users in Montgomery County, Maryland, and elsewhere.
In August 2016, law enforcement officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Takoma Park Police Department received information from a confidential informant about narcotics distribution in Takoma Park, Maryland. Between August 2016 and April 2017, ATF and local law enforcement identified and investigated someone named “Rico” who was selling heroin (later found to contain fentanyl). Law enforcement identified “Rico” as Green.
In late January 2017, a victim who obtained heroin from Green suffered an overdose and required emergency medical attention. The victim fell into a coma and thereafter required hospitalization and physical rehabilitation, and was hospitalized for approximately 2 and a half months.
As part of his plea agreement, Green will be required to forfeit the firearms, ammunition, and $37,592.00 seized during the search of his residence.
Acting United States Attorney Stephen M. Schenning praised the ATF Baltimore Field Division, Takoma Park Police Department, and Montgomery County Police Department for their work in the investigation. He also recognized the assistance Harford County Sheriff’s Office and the Drug Enforcement Administration provided to the lead investigating agencies. Mr. Schenning thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.
Tad Cummins Pleads Guilty to Transporting A Minor Across State Lines and Obstruction of JusticeRead the Press Release
NASHVILLE, Tenn. – April 5, 2018 – Tad Cummins, 51, of Columbia, Tennessee, pleaded guilty today in U.S. District Court to charges of transporting a minor across state lines for the purpose of engaging in criminal sexual conduct and obstruction of justice, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
“The Government has been ready and eager to try Mr. Cummins on the charges brought by the grand jury,” said U.S. Attorney Don Cochran. “In view of today’s development and Mr. Cummins’ decision to plead guilty, we are pleased that the victim no longer faces the possibility of enduring a lengthy trial. We applaud the efforts of the FBI, the Tennessee Bureau of Investigation, the Maury County Sheriff’s Department and the many law enforcement agencies across the country that contributed to the search and ultimate rescue of the victim and the arrest of Mr. Cummins. We now look forward to the sentencing of Mr. Cummins and bringing closure to this case.”
Cummins was initially charged in a criminal complaint on April 20, 2017, after being located in Cecilville, California with the 15-year-old female victim. Cummins and the 15-year old had been the subject of a nationwide search by law enforcement, after leaving the Columbia, Tennessee area on March 13, 2017. Cummins was returned to the Middle District of Tennessee on May 9, 2017, and was indicted by a federal grand jury in Nashville on May 18, 2017. He has been in federal custody while awaiting trial.
Cummins faces a mandatory minimum of 10 years in prison when he is sentenced by U.S. District Judge Aleta Trauger on September 24, 2018.
Assistant U.S. Attorneys Sara Beth Myers and Philip Wehby are prosecuting the case.
Spencer Woman Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced, April 3, 2018, to ten years in federal prison.
Alauna Gaye Morris, 58, from Spencer, Iowa, received the prison term after a September 8, 2017, guilty plea to one count of conspiracy to distribute methamphetamine.
During prior court proceedings, the government presented evidence that on September 8, 2016, law enforcement arrested Morris on a statewide warrant for an unrelated matter. After executing search warrants on her residence and vehicle, officers seized close to 200 grams of actual (pure) methamphetamine, $10,108.82 in cash, a digital scale, and multiple electronic devices.
At sentencing, the government presented evidence that, during the course of the conspiracy, two co-conspirators reached an agreement with Morris in which they would pay $50,000 for ten pounds of methamphetamine. Morris intended to recruit family members out of Utah to manufacture the ten-pound quantity.
Morris was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Morris was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Morris is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Ajay J. Alexander and investigated by the Iowa Great Lakes Drug Task Force, including the Clay County Sheriff’s Office, O’Brien County Sheriff’s Office, and the Department of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-4096-LTS.
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South Florida Doctor Indicted for Tax Evasion and Disability FraudRead the Press Release
A federal grand jury sitting in Fort Pierce, Florida, has returned an indictment, which was unsealed today, charging a Hobe Sound, Florida, resident with tax evasion, mail fraud, wire fraud, theft of government funds, and Social Security disability fraud announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Arthur John Kranz, was a doctor specializing in psychiatry. Beginning in 2002, Kranz allegedly made a claim on his private disability policy that he was unable to work, and began receiving disability payments from his insurance company. The indictment further alleges that in December 2003 Kranz submitted an application to the Social Security Administration (SSA) for disability benefits, which was approved. As part of his application, Kranz agreed to notify the SSA if he returned to work.
The indictment charges that between 2006 and 2013, Kranz worked as a psychiatrist at a hospital in Pennsylvania and earned over $1.6 million in income, but did not report this fact to the SSA or the insurance company. Moreover, Kranz is alleged to have taken steps to conceal his income from the insurance company, the SSA, and the Internal Revenue Service (IRS) by directing that his income be paid to two nominee corporations, and by not reporting the income from his work as a psychiatrist on his personal tax returns.
The indictment further alleges that during the time Kranz was working, he submitted documents to the insurance company on which he falsely stated that he was not working in order to continue to receive disability payments. The indictment alleges that in total, Kranz received over $700,000 in fraudulent disability payments from SSA and the insurance company.
If convicted, Kranz faces a statutory maximum sentence of five years in prison for each count of tax evasion, 20 years in prison for each count of mail and wire fraud, 10 years in prison for theft of public money, and five years in prison for Social Security fraud. Kranz also faces a period of supervised release, restitution and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and SSA Office of Inspector General, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr., Michael C. Boteler, and Terri-Lei O’Malley of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Seven Kings County and Tennessee Residents Indicted for Firearms Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today charging seven Tennessee and California residents with various firearms offenses, including conspiracy to traffic in firearms by an unlicensed person, illegal transportation of firearms, and being a felon in possession of firearms, U.S. Attorney McGregor W. Scott announced. None of the defendants is licensed to deal or import firearms.
Rafael Sanchez Jr., 38, of Kettleman City, Califorinia, is charged with one count of conspiracy to traffic in firearms by an unlicensed person, three counts of illegal transportation of firearms and three counts of being a felon in possession of a firearm.
Alexis Sanchez, 19, of Kettleman City; and Tennessee residents Juan Daniel Gonzalez-Vazquez, 24; Victor Luna, 23; Ashley Sanchez, 22; and Elvia Sanchez, 40, are all charged with one count of conspiracy to traffic in firearms by an unlicensed person and three counts of illegal transportation of firearms
Veronica Ramirez, 38, of Lemoore, California, was charged with one count of conspiracy to traffic in firearms by an unlicensed person.
According to court documents, between April 2016 and March 2018, Rafael Sanchez conspired to have firearms purchased in Tennessee and shipped to him in California. Rafael Sanchez and Alexis Sanchez then transferred money to the Tennessee co-conspirators. With the assistance of Ramirez, Rafael Sanchez identified California-based purchasers and offered to sell them the firearms he received from Tennessee.
According to the indictment, the Tennessee co-conspirators shipped numerous firearms to California, including .45, .40 and 9 mm caliber handguns, as well as ammunition and firearms accessories, including extended magazines. In November 2017, Rafael Sanchez offered to sell to an associate in California an AR-15-style rifle with two 30-round magazines for $1,000.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City Police Department in Tennessee, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case in the Eastern District of California.
If convicted, the defendants face a maximum statutory penalty of five years in prison and $250,000 fine for each of the conspiracy and firearms offenses. Rafael Sanchez faces an a maximum statutory penalty of 10 years in prison and $250,000 fine if convicted of the separate felon in possession of firearms counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sentencings for April 2 & April 4, 2018Read the Press Release
JOSEPH EDWARD MILLER, 41, of Arapahoe, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 4, 2018, for conspiracy to distribute methamphetamine. Miller was arrested in Arapahoe, Wyoming. He received 36 months of probation and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Fremont County Sheriff’s Office, the Wyoming Division of Criminal Investigation, the Tribal Fish and Game, the Bureau of Indian Affairs, the Federal Bureau of Investigation and the U.S. Drug Enforcement Administration.
WOLF ELKINS DURAN, 25, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 2, 2018, for possession of child pornography. Duran was arrested in Casper, Wyoming. He received 57 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay $8,500.00 in restitution and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Seminole County Man Sentenced to 17 Years for Possessing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Joseph Charles Desorbo, Jr. (58, Seminole County) to 17 years in federal prison for possessing child pornography. The court also ordered him to serve a life term of supervision, made a recommendation for a reevaluation prior to his release, and required him to register as a sex offender. In addition, he was ordered to forfeit the cellphone he had used to facilitate the offense.
Desorbo pleaded guilty on January 11, 2018.
According to court documents, on September 8, 2017, deputies from the Seminole County Sheriff’s Office arrived at Desorbo’s residence in response to a shooting incident. Desorbo was interviewed as a witness to the shooting and voluntarily provided written consent to search his cellphone as part of the investigation. During a forensic analysis of the phone, agents found 118 videos and 18 images of child pornography on the phone’s SD card. The videos included sadistic depictions of infants and young children being sexually assaulted by adult men. The phone also contained Desorbo’s communications with others regarding the rape of children. Desorbo admitted that he had used a social media application to obtain the child pornography and had participated in sex group chats about “little boys.” He also described himself as a sex addict.
The investigation further revealed that Desorbo was convicted in 1998 in St. Johns County, Florida for possessing child pornography and for using the internet to solicit a child for sex.
This case was investigated by the Seminole County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
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 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 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.
Roundtable Commemorates 50th Anniversary of Fair Housing ActRead the Press Release
PROVIDENCE, RI – United States Attorney Stephen G. Dambruch hosted a roundtable discussion in his office on Wednesday with nearly two-dozen local housing activists to commemorate the 50th anniversary of the Fair Housing Act. The Fair Housing Act was signed into law on April 11, 1968 by President Lyndon B. Johnson.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability.
The roundtable opened with welcoming remarks from U.S. Attorney Dambruch and featured an overview of the Justice Department’s work combatting housing discrimination, and a commitment of resources from the Department of Justice Civil Rights Division and the U.S. Attorney’s Office to hold accountable landlords who violate the Fair Housing Act.
During the event, participants from legal services, fair housing organizations, shelters, housing policy organizations, disability rights advocates, and state and local housing offices had the opportunity to voice their views and identify the most pressing housing discrimination issues facing their clients in Rhode Island. Attendees concluded the meeting by sharing goals that aim to advance enforcement efforts and ensure equal protections under the law.
"On this, the 50th anniversary of the death of Dr. Martin Luther King, Jr., and the enactment of the Fair Housing Act, it is important that we clearly restate our commitment to work together to ensure that discrimination in Rhode Island not be tolerated," said U.S. Attorney Stephen G. Dambruch. “Discrimination in housing situations is often underreported and may be less visible than discrimination in the workplace, but it is an egregious violation of a person’s right to fair housing. My office is committed to uncovering patterns and practice of housing discrimination where they exist in Rhode Island and vigorously enforcing the law.”
Individuals or agencies wishing to report alleged cases of housing discrimination may do so by contacting Assistant U.S. Attorney Amy R. Romero at [email protected]
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Resident of Grapevine, Texas Pleads Guilty to Fraud and Weapons ChargesRead the Press Release
CONCORD - Steven Orr, 53, of Grapevine, Texas, pleaded guilty to defrauding victims in New Hampshire and Illinois and unlawfully possessing a firearm, United States Attorney Scott W. Murray announced today.
According to court documents, in June of 2017, Orr offered to sell four loaders to a company in Windham, New Hampshire for $120,000. Unaware that Orr did not own or have authority to sell the loaders, the New Hampshire company arranged for a third party to inspect the loaders and had $120,000 electronically transferred from its bank account in New Hampshire to Orr’s personal bank account in Grapevine, Texas. After the deposit was made, Orr used the money for his personal benefit.
In August of 2017, Orr agreed to sell 21 cranes owned by a company in Joliet, Illinois to a different company in Lemont, Illinois for $2.2 million. Orr did not own the cranes or have the authority to sell them. At Orr’s direction, the company in Lemont wire transferred a $550,000 deposit for the transaction from its bank account in Chicago, Illinois, to Orr’s personal bank account in Texas. After that deposit was made, Orr used the money for his personal benefit.
According to other court documents, it was unlawful for Orr to possess a firearm because he was a convicted felon. Nevertheless, when Special Agents from the FBI arrested Orr in Texas last September, they found a Sig Sauer .40 caliber pistol and a Taurus .380 caliber pistol in a safe that was inside a recreational vehicle that Orr was renting.
Orr pleaded guilty to two counts of wire fraud and one count of possession of a firearm by a convicted felon. He is scheduled to be sentenced on July 17, 2018.
“This prosecution will put an end to this defendant’s fraud schemes,” said U.S. Attorney Murray. “I commend the FBI for its hard work in tracking down this fraudster and bringing him to justice. This case also demonstrates our ongoing commitment to prosecuting those who possess firearms unlawfully.”
“Mr. Orr is finally accepting responsibility for stealing hundreds of thousands of dollars from hard-working businesses that trusted him. He conned them into purchasing equipment he did not own for his own personal benefit,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “Financial fraud is not a victimless crime, and the FBI will continue to do everything it can to root out individuals like Mr. Orr whose behavior threatens the financial security of others.”
The cases were investigated by the Federal Bureau of Investigation and are being prosecuted by Assistant United States Attorney Robert M. Kinsella.
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Plattsburgh Man Admits Role in FraudRead the Press Release
ALBANY, NEW YORK – Thomas J. Howe, age 38, of Plattsburgh, New York, pled guilty yesterday to fraud and identity theft charges.
The announcement was made by United States Attorney Grant C. Jaquith; Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation; and Plattsburgh Police Lieutenant Levi Ritter.
As part of his plea, Howe admitted that he and Jared R. Hudson devised a scheme to defraud banks, merchants and individual consumers by purchasing information including credit card numbers, bank account numbers, expiration dates, security codes, answers to security questions, and other personal identification information, and to using that information to electronically purchase goods, and to fraudulently transfer and attempt to transfer funds electronically, between October 2009 and December 2014.
Initially, Howe used stolen credit card numbers belonging to others to order merchandise online and had the merchandise shipped to him. Howe then used other people’s personal identification information to sign up for credit cards. He then opened investment accounts in his name, which were funded with money taken from other people’s bank accounts using stolen account numbers, routing numbers, identification, and bank security information. Howe admitted that his conduct caused at least $508,053.33 in losses.
Howe has been detained on the charges since January 18, 2018. He faces at least 2 years and up to 20 years in prison, and a fine of up to $250,000, when he is sentenced on July 25, 2018 by Senior United States District Judge Lawrence E. Kahn. A sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
Hudson, a former Plattsburgh resident who has also resided in Florida and Texas, pled guilty to his role in the scheme and was sentenced on January 10, 2018 to 79 months in prison.
This case was investigated by the FBI and the Plattsburgh Police Department, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Pittsburgh Man Indicted in Armed Robbery Spree of Allegheny and Beaver County BanksRead the Press Release
PITTSBURGH – Bryan Campbell, age 27, of Pittsburgh, Pennsylvania, has been charged with conspiring to rob three area banks, armed bank robbery, and brandishing a firearm during and in relation to a crime of violence, United States Attorney Scott W. Brady announced today.
According to the April 4 indictment, Campbell conspired to rob the S&T Bank in Verona, PA, on March 7, 2017; the First National Bank in Verona, PA, on May 1, 2017; and the Huntington Bank in Baden, PA, on July 22, 2017. Additionally, Campbell is charged with the March 7, 2017 armed bank robbery of the S&T Bank in Verona, PA, on March 7, 2017; the armed bank robbery of the First National Bank in Verona, PA, on May 1, 2017; and the attempted armed bank robbery of the Huntington Bank in Baden, PA, on July 22, 2017. Campbell is also charged with brandishing a firearm during and in relation to a crime of violence for using a silver revolver during the March 7, 2017 robbery.
The law provides for a maximum total sentence of not less than seven years and up to life 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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the Government.
The FBI Pittsburgh’s Violent Crimes Task Force, with assistance from the Plum Police Department, Verona Police Department, Economy Borough Police, Allegheny County Sherriff’s Department, and Shaler Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Admits He Illegally Possessed and Sold Firearms to Undercover Law Enforcement AgentsRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Dalton Douglas Duschl, 22, of Pittsburgh, Pennsylvania, pleaded guilty to all six counts in the indictment against him before United States District Judge Mark Hornak.
In connection with the guilty plea, the court was advised that between January 3, 2017, and February 13, 2017, Duschl knowingly possessed and sold four firearms (a .45 caliber Kahr Arms pistol, a 9mm Taurus pistol, a 20-gauge shotgun, and a .380 caliber Bryco Arms pistol) to undercover law enforcement agents. Federal law prohibits Duschl from possessing a firearm due to his 2015 convictions in Allegheny County for the crimes of receiving stolen property and criminal conspiracy. The court was further advised that on two of those occasions, Duschl knowingly possessed and sold the .45 caliber Kahr Arms pistol and the 9mm Taurus pistol, both of which he knew or had reasonable cause to believe were stolen.
Judge Hornak scheduled sentencing for August 3, 2018, at 1:30 p.m. The law provides for a maximum total sentence of 60 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant. Indicate relevant bond/detention information if known
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
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.
Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and detectives from the Allegheny County Police Department conducted the investigation that led to the Indictment in this case.