Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 30 March 2018
Bolivar Man Sentenced to over 22 years in Federal PrisonRead the Press Release
Jackson, TN – A Bolivar, Tenn., man has been sentenced to federal prison for conspiracy to distribute 50 grams or more of actual methamphetamine (ICE). U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
On March 29, 2018, Deon Brown, Sr., 49, a/k/a/ "Pleezy," was sentenced to 275 months in United States District Court in Jackson, Tenn., by the Honorable J. Daniel Breen. Brown participated in a conspiracy that from August 29, 2014 through March 19, 2016 was distributing ICE in the Western District of Tennessee and elsewhere.
U.S. Attorney D. Michael Dunavant said: "Use and trafficking of methamphetamine continues to destroy lives, families, and communities across West Tennessee. The joint cooperation between federal, state, and local law enforcement in this OCDETF case demonstrates our ability and resolve to dismantle drug trafficking organizations, including those that distribute narcotics from locations across the country. The significant sentence in this case sends a clear message to those drug dealers who distribute poison in the Western District of Tennessee: You cannot prey upon our citizens for your selfish personal gain with impunity; there will be a reckoning."
Facts introduced at the sentencing hearing revealed that during the time period of the conspiracy, Brown was responsible for distributing 10.89 kilos of actual methamphetamine. Agents conducted undercover purchases of the ICE from Brown. At sentencing, proof of airline trips made by Brown to Las Vegas to purchase the product for himself and others was introduced. Brown and the co-conspirators were purchasing the illegal narcotics in Las Vegas for $200 to $300 per ounce and were reselling it in Tennessee and Mississippi for $1200 to $1600 an ounce.
On May 11, 2015, agents purchased 82 grams of 97.5% pure methamphetamine from Brown for $2700. On May 14, 2015, Agents purchased 56 grams of 96.9% pure methamphetamine from Brown for $1800. On June 3, 2015, Agents purchased 27.87 grams of methamphetamine from Brown for $900. Finally, on July 22, 2015, Agents purchased 112.4 grams of 99.1% pure methamphetamine from Brown for $3200.
This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt and dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration; Tennessee Bureau of Investigation; 24th Judicial District Drug Task Force; and Jackson-Madison County Metro Narcotics.
Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.
Atlantic Beach Drug Dealer Sentenced to More Than Three Years in PrisonRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Sunshine Marie McEwen (43, Atlantic Beach) to three years and five months in federal prison for failing to register as a sex offender.
According to court documents, on August 20, 1998, McEwen was convicted of sexual battery on a 12-year-old child in Jacksonville. After her release from state prison in September 2013, she resided in Atlantic Beach. On May 15, 2015, McEwen sold drugs to an individual in Atlantic Beach and later fled to California without updating her sex offender registration. She also failed to register in California as required by the Sex Offender Registration and Notification Act. On November 28, 2015, McEwen was arrested in Palm Springs and extradited to Florida to face her drug charges. On July 6, 2016, she was convicted for selling cocaine within 1,000 feet of a church and sentenced to 78 months in state prison.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the U.S. Marshals Service, the Jacksonville Sheriff’s Office, the Atlantic Beach Police Department, the Florida Department of Law Enforcement, and the Palm Springs Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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, 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.
Amarillo Man Sentenced to 212 Months in Federal Prison on Drug ChargeRead the Press Release
AMARILLO — U.S. District Judge Sidney A. Fitzwater sentenced Jose Santillan, 25, of Amarillo, Texas, earlier this week to 212 months’ in federal prison. Santillan was convicted in December 2017, following a three-day trial, on one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of pure methamphetamine The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Santillan has been in custody since the time of his arrest in April 2017.
According to evidence presented at trial, on February 2, 2016, a Texas Department of Public Safety agent working in an undercover capacity arranged to purchase eight ounces of methamphetamine from Guadalupe Vargas-Mayorga. Through surveillance and recorded telephone calls between the undercover agent and Vargas-Mayorga, law enforcement learned that Vargas-Mayorga obtained the eight ounces of methamphetamine from Jose Santillan and then delivered that methamphetamine to the undercover agent. Laboratory results confirmed that Vargas-Mayorga and Santillan delivered 192 grams of pure methamphetamine to the undercover agent on February 2, 2016. The evidence presented at trial also showed that Santillan had been supplying Vargas-Mayorga with methamphetamine for further distribution since approximately 2014. Additionally, evidence presented at sentencing showed that Santillan was receiving large shipments of liquid methamphetamine from Mexico.
The Drug Enforcement Administration, Department of Homeland Security, Texas Department of Public Safety, Amarillo Police Department, Potter County Sheriff’s Office, and Randall County Sheriff’s Office investigated. Assistant U.S. Attorneys Sean Taylor and Joshua Frausto and Deputy Criminal Chief Assistant U.S. Attorney Jeffrey Haag prosecuted the case.
# # #
Albuquerque Man Pleads Guilty to Federal Mail Theft, Drug Trafficking, Firearms and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Nathan Berke, 38, of Albuquerque, N.M., pled guilty today in federal court to drug trafficking, firearms, mail theft, and aggravated identity theft charges under a plea agreement that recommends that he be sentenced to a term of imprisonment within the range of 120 to 204 months. The guilty plea was announced by U.S. Attorney John C. Anderson and Inspector in Charge Melisa Llosa of the Phoenix Division of the U.S. Postal Inspection Service.
Berke and co-defendant Joann Bell, 37, also of Albuquerque, were charged on May 24, 2017, in a 14-count indictment with drug trafficking, firearms, mail theft, bank fraud and aggravated identity theft offenses. Bell pled guilty in Dec. 2017, and on Dec. 5, 2017, a superseding indictment charging Berke individually, was filed.
The 13-count superseding indictment charged Berke with the following offenses: participation in a methamphetamine trafficking conspiracy in July 2016, in Bernalillo County; possession of methamphetamine with intent to distribute on July 28, 2016, in Bernalillo County; using a firearm in furtherance of a drug trafficking crime on July 28, 2016, in Bernalillo County; possession of stolen mail on July 28, 2016, in Bernalillo County; possession of methamphetamine with intent to distribute on Aug. 9, 2016, in San Juan County; being a felon in possession of a firearm on July 28, 2016, in Bernalillo County; possession of stolen mail on Aug. 9, 2016, in San Juan County; and three counts of bank fraud and three counts of aggravated identity theft from July 23, 2016 through July 25, 2016, in New Mexico.
During today’s proceedings, Berke pled guilty to a four-count felony information charging him with conspiracy, two counts of possession of methamphetamine with intent to distribute, and using a firearm in furtherance of a drug trafficking crime. Additionally, Berke pled guilty to Counts 5 through 13 of the superseding indictment charging him with being a felon in possession of a firearm, two counts of possession of stolen mail, three counts of bank fraud and three counts of aggravated identity theft.
In entering the guilty plea, Berke admitted the following:
- On July 28, 2016, Berke possessed 100 grams of methamphetamine in Bernalillo County, which he intended to distribute to others, stolen mail, and two loaded firearms. Berke also acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
- On Aug. 9, 2016, Berke possessed approximately 105 grams of methamphetamine in San Juan County, which he intended to distribute to others, and stolen mail.
- Between July 23, 2016 and July 25, 2016, Berke used identity information from stolen mail and counterfeit identifications to pass counterfeit and unauthorized checks in the names of others to purchase gift cards at Albuquerque-area stores, which he then sold to others for cash. Berke also admitted that in this time-period, he attempted to open a membership account at an Albuquerque-area store using a counterfeit check, counterfeit identifications and a drivers’ license in the name of another person.
On Dec. 14, 2017, Bell pled guilty to conspiracy, possessing methamphetamine with intent to distribute, and possessing stolen mail. In entering the guilty plea, Bell admitted that on July 28, 2016, she and another person possessed approximately 100 grams of methamphetamine, which they intended to distribute to others. Bell also admitted that on that same day, she possessed mail that belonged to others but had been stolen from an authorized depository for U.S. mail. Bell entered her guilty plea under a plea agreement that recommended the imposition of a sentence of five years of imprisonment.
Bell previously had been arrested in Sept. 2016, on a criminal complaint charging her with repeatedly stealing mail from U.S. Postal Service mail collection boxes located outside of U.S. Post Offices in Albuquerque by using a “fishing” device she fed into the mailbox to “fish” mail out. Bell was indicted in this case on Oct. 12, 2016, and was charged with stealing and receiving stolen mail on Sept. 18, 2016 in Bernalillo County. On March 30, 2017, Bell pled guilty to the indictment and admitted using a “fishing” device to pull mail out of USPS collection boxes on Sept. 17 and 18, 2016. The sentence imposed in that case will run concurrent to the five-year term of imprisonment to be imposed on Bell based on the guilty plea entered in Dec. 2017.
Berke and Bell both remain in custody pending sentencing hearings, which have yet to be scheduled.
This case was investigated by the U.S. Postal Inspection Service with assistance from the DEA and is being prosecuted by Assistant U.S. Attorneys Nicholas Jon Ganjei and Sean J. Sullivan.
Accomplice to Fugitive Lawyer Pleads Guilty to Conspiracy to EscapeRead the Press Release
An Eastern Kentucky man pleaded guilty today for his role in assisting a former Social Security disability lawyer escape from federal custody.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division and Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division made the announcement.
Curtis Lee Wyatt, 48, of Raccoon, Kentucky, pleaded guilty to one count of conspiracy to escape from custody before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky. Sentencing has been scheduled for June 29, before Judge Reeves.
In September 2017, Wyatt was charged in a seven-count indictment with conspiracy to escape, instigating and assisting escape, conspiracy to commit failure to appear, aiding and abetting failure to appear, and making false statements to the FBI in connection with his role in assisting former Social Security disability lawyer Eric Christopher Conn escape from federal custody. The indictment alleges that Conn, while on home confinement after pleading guilty to two federal offenses but before being sentenced, escaped from custody by severing an electronic monitoring device from his ankle during a court-approved visit to Lexington, Kentucky on June 2, 2017, and fled to the Mexican border. According to the indictment, Conn ultimately failed to appear for his sentencing hearing on July 14, 2017.
As part of his guilty plea, Wyatt admitted that he conspired with Conn to escape from custody by, in the months prior to Conn’s escape, assessing security measures at various pedestrian checkpoints along the United States-Mexican border and advising Conn of whether identification was checked upon exiting the United States. Wyatt further admitted that on the day prior to Conn’s escape, he provided Conn with a Faraday bag for the purpose of suppressing the signal emitted from Conn’s electronic monitoring device, as well as with an escape vehicle that Wyatt had previously purchased with cash, registered in Montana and secreted in a parking garage in Pikeville, Kentucky.
Conn is scheduled to proceed to trial on the escape charges on June 11, 2018 in Lexington before Judge Reeves.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and SSA-OIG investigated the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorneys Ann Marie Blaylock and Rebecca Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
Thursday 29 March 2018
“Porch Pirate” Pleads Guilty to Stealing PackagesRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old Corpus Christi man has been convicted of possessing stolen mail, announced U.S. Attorney Ryan K. Patrick along with Postal Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS).
Christopher Escobedo admitted to stealing packages that the U.S. Postal Service (USPS) had left on the front porches of Corpus Christi residents between Dec. 31, 2017, and Jan. 8, 2018. Authorities identified Escobedo or his vehicle in video surveillance at a number of locations where packages were stolen. On one occasion, an observant neighbor confronted Escobedo as he attempted to take a package. The neighbor was able to supply the authorities with Escobedo’s description and a license plate number of the vehicle he was using. Postal inspectors used this information to track down Escobedo and link him to a number of other package thefts in the area.
“The USPIS is committed to ensuring customers’ mail is protected from theft and criminal activity,” said Gonzalez. “Our efforts to protect the nation’s mail system is a strategic part of our mission and one of our highest priorities. Postal inspectors will vigorously pursue anyone attempting to commit theft against the USPS and its customers.”
U.S. District Judge Nelva Gonzales Ramos accepted the plea today and set sentencing for July 19, 2018. At that time, Escobedo faces up to five years in federal prison and a possible $250,000 maximum fine.
The USPIS conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Youngstown man charged for sharing images of young children being sexually assaultedRead the Press Release
A Youngstown man was charged in federal court for sharing images of young children being sexually assaulted.
Daniel B. Fleischer, 36, was charged with one count of receipt and distribution of child pornography.
Fleischer used his Kik account, accessed by his cell phone, to receive, distribute and possess child pornography, including images of young children being raped and sexually assaulted, according to court documents.
Law enforcement officials searched Fleischer’s home on Weston Avenue on March 28. Fleischer told police he viewed “hundreds of child pornography images” that depicted “young” boys and girls, according to court documents.
“These are cases with real victims, children whose lives will be forever changed because adults assaulted and violated them,” U.S. Attorney Justin Herdman said. “We will continue to work to prosecute those who re-victimize these children by sharing and downloading these images.”
This case is being investigated by the FBI, Ohio BCI and the Youngstown Police Department. It is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Worcester Man Pleads Guilty to Lying to Federal InvestigatorsRead the Press Release
BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to lying to federal investigators involved in the investigation of Kevin A. Perry, a former Worcester restaurateur.
Christopher Slavinskas, 32, pleaded guilty to making a false statement to federal investigators engaged in a criminal investigation. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 29, 2018.
During the summer of 2017, federal investigators interviewed Slavinskas about the concealment of cash proceeds from illegal drug sales associated with Perry. Slavinskas told the investigators that he helped conceal $200,000 on behalf of Stacey Gala, Perry’s wife, and that he returned the $200,000 to Gala after approximately 30 days. In reality, Slavinskas concealed approximately $330,000 in cash proceeds from Perry’s illegal drug sales, but spent at least $130,000 of it on himself and others – returning only $200,000 of the $330,000 to Gala.
In October 2017, Perry pleaded guilty to federal charges of money laundering and fentanyl distribution and is awaiting sentencing. Gala and Joseph Herman, the former manager of The Usual, a restaurant previously owned by Perry, were indicted for conspiracy to commit money laundering in February 2018.
Slavinskas faces a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Raymond Moss, Acting Inspector in Charge of the United States Postal Inspection Service; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waterloo Man Sentenced to Prison for Selling Crack CocaineRead the Press Release
A man who sold crack cocaine and had a shotgun in his house was sentenced today to more than a year in federal prison.
Johnston Phillips, age 64, from Waterloo, Iowa, received the prison term after an October 30, 2017, guilty plea to distribution of crack cocaine. At the guilty plea, Phillips admitted that he sold crack cocaine on March 14, 2017. During a search warrant at Phillips house a week later, law enforcement recovered a Mossberg shotgun. Phillips’ residence was also being used by other crack cocaine dealers to make sales. Phillips had previously been convicted of possession of crack cocaine and forgery in state court.
Phillips was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Phillips was sentenced to 14 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Phillips is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Ravi T. Narayan and Emily K. Nydle and were investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2050.
Follow us on Twitter @USAO_NDIA
Violent Robbery Crew Member Sentenced in Brooklyn Federal Court to 18 Years’ Imprisonment for Cold Case MurderRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Yefferson Rodriguez-Lopez, a member of a violent robbery crew that operated in the New York metropolitan area from 1998 to 2003, was sentenced by United States District Judge Raymond J. Dearie to 18 years’ imprisonment and five years’ supervised release, following his guilty plea to a murder committed in 1999 during a robbery of a narcotics stash house. Rodriguez-Lopez was arrested on the federal charges in July 2016 and pleaded guilty in March 2017.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
According to court filings, between 1998 and 2003, Rodriguez-Lopez was a member of a violent robbery crew that targeted drug dealers in and around New York City, including Brooklyn and Queens. The robbery crew typically involved between three and five participants; some members of the crew, armed with firearms, would enter an apartment to steal narcotics or currency, while other members of the crew waited outside to serve as lookouts and getaway drivers. After a robbery, members of the crew generally sold the narcotics they recovered in bulk to other drug traffickers. Over several years, the crew stole millions of dollars in cash, approximately 90 kilograms of cocaine and approximately 14 kilograms of heroin.
On March 6, 1999, the defendant participated in a robbery of a narcotics stash house in the Bronx. The defendant and a co-conspirator waited for the victim to enter the narcotics stash house, forcibly pushed themselves in and tied the victim’s hands behind his back. The defendant placed a gun to the victim’s head and when the victim jerked his head back, it caused the weapon to fire. Afterwards, the defendant drove away with other members of the robbery crew and discarded his gun. The defendant evaded arrest for several years by using different aliases and altering his fingerprints.
Mr. Donoghue extended his grateful appreciation to the DEA’s New York Drug Enforcement Task Force, who conducted the investigation. The task force is comprised of agents and officers of the DEA, New York City Police Department and the New York State Police.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Hiral D. Mehta and Soumya Dayananda are in charge of the prosecution.
The Defendant:
YEFFERSON RODRIGUEZ-LOPEZ
Age: 43
New York, New YorkE.D.N.Y. Docket No. 16-CR-275 (RJD)
United States Reaches Settlement with Cumberland County on ADA ProceduresRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced a settlement with Cumberland County under Title II of the Americans with Disabilities Act (ADA) for the County to identify an ADA Coordinator; to provide notice to those with disabilities on how to contact the ADA Coordinator; to establish an ADA grievance procedure; and to make its website more accessible to those with disabilities.
According to United States Attorney David J. Freed, the United States Attorney’s Office received a complaint from an individual with a disability that Cumberland County did not have a process by which the disabled could request accommodations or file complaints of inaccessibility, and the County did not have an ADA coordinator. After an investigation, with the County’s complete cooperation, the United States Attorney’s Office found that the complaint had merit.
Under the terms of the agreement, the County has named Holly Sherman as ADA Coordinator. The County will post on its Internet Home Page and in conspicuous locations in its public buildings notices that individuals who request accommodations and have complaints of inaccessibility should direct those issues to the ADA Coordinator. The notice must post an address, phone number, and email of the coordinator. The agreement also requires that the County establish an ADA Grievance Procedure and develop procedures to make the County’s webpages more accessible to those with disabilities.
“This agreement demonstrates Cumberland County’s commitment to ensuring that individuals with disabilities will have an equal opportunity to access and participate in the County’s government programs,” said U.S. Attorney David J. Freed. “With an ADA Coordinator, individuals with disabilities will now have a person in the County who can answer their questions, accept accommodations requests, and receive their complaints.”
This investigation was handled by Assistant United States Attorney Michael J. Butler. Those interested in finding out more about the ADA can access the ADA website at www.ada.gov.
# # #
United Blood Nation Gang Associate Sentenced to 13 Years for Racketeering Conspiracy and Murder in Aid of RacketeeringRead the Press Release
CHARLOTE, N.C. – Briana Shakeyah Johnson, 22, of Concord, N.C., was sentenced today by U.S. District Judge Max O. Cogburn, Jr. to 156 months in prison and 5 years of supervised release on charges of conspiracy to participate in racketeering activity (RICO) and murder in aid of racketeering, for her involvement in the murders of Douglas and Deborah London, announced U.S. Attorney R. Andrew Murray of the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court proceedings, Johnson, a/k/a “Breezy B” a/k/a “Breezy V,” was an associate of the Charlotte-area Valentine Blood set of the United Blood Nation gang (UBN or Bloods). Court documents show that Johnson met UBN gang member Malcolm Jarrell Hartley in April 2014 and became his girlfriend.
According to court documents, on May 25, 2014, three UBN members, Jamell Lamon Cureton, Nana Yaw Adoma and David Lee Fudge, robbed The Mattress Warehouse, a store owned by Douglas and Deborah London. The three were later charged in connection with that robbery. According to court records, Cureton and other Bloods gang members discussed that Douglas London was the only eye witness that could identify Cureton, and that he needed to be eliminated. As an associate of the Bloods, Johnson was present at gang meetings during which the Londons’ murder was planned.
The gang’s leadership authorized Hartley to proceed with the murder, and on October 23, 2014, Johnson drove Hartley to the Londons’ home in Lake Wylie, S.C. Johnson waited in the car while Hartley shot both victims, and then drove Hartley back to Charlotte, first stopping at Rahkeem McDonald’s house to dispose of the gun. Johnson and Hartley then returned to Hartley’s apartment where they met with other gang members. According to filed documents, while at the apartment, Hartley described the victims’ murders and the group celebrated. After the murders, Hartley was “ranked up” or “promoted” to a 2-Star General for carrying out the leadership’s orders.
To date, eight other Bloods gang members have been sentenced as a result of this investigation. Jamell Lamon Cureton, and Malcolm Jarrel Hartley were sentenced to life in prison for the double-murder of Douglas and Deborah London. Cureton received a second life sentence for the 2013 murder of Kwamne Clyburn. Rahkeem Lee McDonald was also sentenced to life in prison for his role in the Londons’ murder. David Lee Fudge was ordered to serve 26 years in prison. Ibn Rashaan Kornegay was sentenced to 23 years in prison. Nehemijel Maurice Houston was sentenced to 20 years in prison. Daquan Lamar Everrett was sentenced to 13 years in prison, and Centrilla Shardon Leach was ordered to serve 13 years in prison.
Three more defendants previously convicted at trial currently await sentencing: Randall Hankins, II, Nana Yaw Adoma, and Akheem Tahja McDonald were convicted of racketeering conspiracy charges in October 2017. Hankins was also convicted of two counts of murder in aid of racketeering and two counts of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence for his role in the murder of the Londons. Adoma and Akheem McDonald were each convicted of one count of murder in aid of racketeering and one count of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death for Clyburn’s murder. Adoma was also convicted of one count of assault with a dangerous weapon in aid of racketeering and one count of use or carry of a firearm in relation to a crime of violence and possession of firearm in furtherance of a crime of violence, for his role in the armed robbery of the Londons’ business.
The investigation was led by the FBI, with the invaluable assistance of CMPD and the York County Sheriff’s Office. Assistant U.S. Attorney Don Gast is prosecuting the case.
Two Sent to Prison for Trafficking CocaineRead the Press Release
McALLEN, Texas – Two men have been ordered to federal prison following their convictions in a cocaine trafficking conspiracy, announced U.S. Attorney Ryan K. Patrick. Jesus A. Villarreal, 58, of Sullivan City, and Juan Cristobal Hernandez, 39, of Reynosa, Tamaulipas, Mexico, pleaded guilty Feb. 6, 2017.
Today, U.S. District Judge Ricardo Hinojosa ordered Villarreal and Hernandez to each serve 92 months, respectively. Villarreal will serve three years of supervised release following completion of his prison term. Not a U.S. citizen, Hernandez is expected to face deportation proceedings following his sentence.
Both admitted they conspired to possess with the intent to distribute cocaine. As part of their guilty pleas, each admitted to assisting with coordinating the trafficking of 108 kilograms of cocaine from McAllen to Houston from April 2 to April 9, 2015. Both were also held responsible for a total of 134 kilograms of cocaine as the court considered another narcotics seizure in which both men were involved.
Both men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Rolando Martinez Jr., 33, of Rio Grande City, is also charged in the case. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the Drug Enforcement Administration (DEA) at 1-956-992-8400 or Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) at 1-866-347-2423.
The DEA and HSI conducted the investigation dubbed Operation Killing Time with the assistance of the Texas Department of Public Safety and task force officers from police departments in San Juan, McAllen, Palmview, Weslaco and Mission. Assistant U.S. Attorney Juan F. Alanis is prosecuting the case.
Two Out-of-State Men Indicted on Federal Fraud Charges Involving a Credit Card SchemeRead the Press Release
St. Louis, MO – Omar Leigh and Kolley Touray were indicted on multiple fraud counts involving a conspiracy to commit bank and mail fraud and aggravated identity theft.
According to court documents, the purpose of the conspiracy was to profit from the use of stolen Bank of America customers’ personal identifying information that they had purchased from the Dark Web. Leigh used the bank’s automated telephone service to request that the bank mail new credit cards and new personal identification numbers, “PINs,” to the addresses on file for the customers. Through use of software that allowed them to imitate the customers’ telephone numbers, the conspirators were able to defeat the bank’s verification process that relied on comparing the telephone number used to call the bank with the customers’ telephone number it had on file.
When the bank mailed the new cards and PINs to the addresses on file for the customers, Leigh and Touray drove to the customers’ homes and stole the credit cards and PINs from their mailboxes. Immediately after leaving the residences, Leigh and Touray drove to Bank of America automated teller machines to initiate cash advances on the accounts using the fraudulently obtained credit cards and PINs.
Omar Leigh, 25, Smyrna, GA, and Kolley Touray, 39, Milwaukee, WI, were indicted by a federal grand jury today on one felony count each of conspiracy to commit bank and wire fraud, four felony counts of bank fraud, one felony count of possession of stolen mail, one felony count of access device fraud, and five felony counts of aggravated identity theft.
If convicted, each count of conspiracy to commit bank and wire fraud, and bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million; possession of stolen mail carries a term of incarceration of 5 years and/or a fine of up to $250,000.00; and aggravated identity theft is a mandatory two years in prison consecutive to any other term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Postal Inspection Service. Assistant United States Attorney Tracy Berry 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.
Two Former Airline Industry Executives Convicted of Orchestrating Multimillion Dollar Scheme to Steal Passenger Money from EscrowRead the Press Release
A federal jury in the District of New Jersey found the former chief executive officer and the former vice president of a now-bankrupt public air charter operator guilty yesterday for their roles in a scheme to steal millions of dollars in passenger money for future travel from an escrow account, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Todd A. Damiani of the U.S. Department of Transportation Office of Inspector General’s New England Field Office.
Judy Tull, 73, and Kay Ellison, 58, both of Edenton, North Carolina, were each convicted of one count of conspiracy to commit wire fraud affecting financial institutions and to commit bank fraud, four substantive counts of wire fraud affecting financial institutions and three substantive counts of bank fraud following a seven-day trial. Tull is the former CEO of Myrtle Beach Direct Air and Tours (Direct Air), which was headquartered in Myrtle Beach, South Carolina, with operations in Daniels, West Virginia, and Ellison is its former vice president and managing partner. Sentencing has been scheduled for July 17, 2018 before U.S. District Judge Susan D. Wigenton of the District of New Jersey, who presided over the trial.
“Judy Tull and Kay Ellison stole passengers’ money to try and prop up their failing company,” said Acting Assistant Attorney General Cronan. “Their brazen scheme created a multimillion dollar shortfall that left passengers stranded at airports, and banks and credit card companies scrambling to pick up the pieces. “This important case is just the latest example of the pivotal role the Fraud Section plays in the Department of Justice’s ongoing efforts to combat white collar fraud.”
“This investigation demonstrates the Department of Transportation Office of Inspector General’s (DOT-OIG) commitment to protecting the traveling public from fraudulent schemes involving charter flight operations,” said DOT-OIG Regional Special Agent in Charge Damiani. “We will continue our vigorous efforts in preventing, detecting and prosecuting fraud that erodes the public’s confidence in the integrity of transportation-related goods and services.”
According to evidence presented at trial, from October 2007 through March 2012, Tull and Ellison engaged in a scheme to steal passengers’ money for future travel from an escrow account by artificially inflating the amount of money the defendants claimed they were entitled to receive, and by sending this falsified amount in a letter to the escrow bank telling the escrow bank to release the money. The evidence further established that to cover up their fraud, the defendants falsified profit and loss statements to make the company look like it was making money rather than losing money, and sent these falsified documents to credit card companies and banks to trick them into continuing to do business with the company.
Testimony at trial established that two financial institutions sustained losses of nearly $30 million for having to refund thousands of passengers their money that should have been held for them in escrow, but was actually stolen by the defendants as part of their fraud.
Robert Keilman, 73, of Marlboro, New Jersey, Direct Air’s former Chief Financial Officer, pleaded guilty to charges stemming from his role in this scheme and is awaiting sentencing.
This case was investigated by DOT-OIG. Trial Attorneys Michael T. O’Neill and Cory E. Jacobs of the Criminal Division’s Fraud Section are prosecuting the case. Former Fraud Section Trial Attorney L. Rush Atkinson also investigated the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Two Alaska Residents Charged for Attempting to Smuggle Drugs into PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that two Alaska residents have been charged for attempting to smuggle drugs into the State of Alaska Department of Corrections (“DOC”) Mat-Su Pretrial Correctional Facility (“Mat-Su Pretrial”) in Palmer.
Joshua Jacob Reed, 30, an inmate at Mat-Su Pretrial at the time of the offense, and Olivia Danielle Blake, 27, of Wasilla, were both named in the indictment. Reed is charged with (1) attempt to possess with the intent to distribute a controlled substance, and (2) attempt to possess contraband in prison. Blake is charged with (1) distribution of a controlled substance, and (2) attempt to provide contraband in prison.
According to the indictment, on or about Feb. 28, 2017, Blake allegedly attempted to pass drugs to Reed, who was an inmate at Mat-Su Pretrial at the time. Blake did so at Reed’s direction on the morning that Reed was set for trial in an unrelated state criminal case. The drugs that Reed and Blake attempted to smuggle into Mat-Su Pretrial included quantities of methamphetamine, heroin, and Buprenorphine, which is one of the narcotic drugs in Suboxone.
The law provides for a maximum sentence of 20 years in prison and a fine of $1 million, or both, for the most serious charges alleged in the indictment. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The Federal Bureau of Investigation (“FBI”) conducted the investigation, with assistance from DOC, which led to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Andrea W. Hattan.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Trio Pled Not Guilty to Conspiracy to Manufacture and Pass Counterfeit United States CurrencyRead the Press Release
United States Attorney Ron Parsons announced that a trio with ties to Oklahoma and North Carolina have been indicted by a federal grand jury for Conspiracy to Manufacture Counterfeit United States Currency and Passing of Counterfeit United States Currency.
Michael Glenn Ogden, age 37, Mary Ellen Autry, age 40, and Marcus Paul Franklin, age 41, were indicted on March 20, 2018. They appeared before U.S. Magistrate Judge Daneta Wollmann on March 20, 2018, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to the trio using printers, paper, and chemicals to convert legitimate $10 U.S. currency bills into counterfeit $100 U.S. currency bills. Using this equipment, they manufactured and passed thousands of dollars of counterfeit U.S. $100 bills in South Dakota and other states.
The charges are merely accusations and Ogden, Autry, and Franklin are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rapid City Police Department and the United States Secret Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Ogden, Autry, and Franklin were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 29, 2018.
Three Cuban Nationals Plead Guilty to Conspiring to Steal Credit Card Numbers from Gas PumpsRead the Press Release
Three Cuban nationals who had been residing in Texas before their arrest pleaded guilty today to conspiracy to commit access device fraud, U.S. Attorney Duane A. Evans announced today. According to documents filed today in open court, all three defendants admitted that they agreed together and with others to obtain credit and debit card numbers that had been skimmed from gas pumps and use these numbers to make purchases.
YUSNIEL HERNANDEZ PEREZ (32), YADIER ALUIJAS FERNANDEZ (31), and HENRY DAVID MARTINEZ (23) admitted that they traveled to the Eastern District of Louisiana from Texas in July 2017. They traveled to locations in Louisiana where skimmers had been previously installed, returned to Texas, and then came back to Louisiana with counterfeit access devices, which they used to make purchases as a local merchant. A fourth defendant, ALAYN ALVAREZ CASTRO, was arrested in December 2017 in Miami, Florida and remains charged in this case.
Judge Feldman set sentencing for PEREZ, FERNANDEZ, and MARTINEZ for July 11, 2018 at 1:30 p.m. At sentencing, each faces a statutory maximum sentence of five years in prison, along with monetary penalties, supervised release, and mandatory restitution.
U.S. Attorney Evans commended special agents of the United States Secret Service, as well as Jefferson Parish Sheriff’s Deputies, who investigated the case and Assistant U.S. Attorney Hayden Brockett is in charge of the prosecution.
Texas Man Sentenced to 10 Years in Prison for Cocaine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that VICTOR ESQUIVEL, age 28, of Brownsville, Texas, was sentenced today for charges relating to narcotics trafficking.
ESQUIVEL pled guilty on December 19, 2017, to conspiring to distribute and to possess with the intent to distribute 5 kilograms or more of cocaine hydrochloride. According to court documents, ESQUIVEL, along with co-defendants Roel RANGEL and Kevin DECUIR, conspired to distribute approximately 28 kilograms of cocaine hydrochloride.
Judge Ivan L. R. Lemelle sentenced ESQUIVEL to 120 months in the Bureau of Prisons, as well as 5 years of supervised release following the term of imprisonment.
U.S. Attorney Evans praised the work of Homeland Security Investigations. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
Tampa Man Sentenced for Gift Card Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Ravon Jackiel Forbes-Hodge (25, Tampa) to three years and six months in federal prison for credit card fraud and aggravated identity theft. The court also ordered him to pay $31,422 in restitution to victims of the fraud. Forbes-Hodge pleaded guilty on January 11, 2018.
According to court documents, Forbes-Hodge and others obtained stolen credit card account numbers and bank account information from various financial institutions. The conspirators purchased or stole reloadable gift cards and embossed them with their own names and the stolen account numbers. They then used the counterfeit cards at retailers throughout the Tampa Bay area to purchase merchandise that they later returned to different locations to receive store credit in the form of gift cards. The conspirators then sold the fraudulently obtained gift cards for cash.
Between February and June 2017, Forbes-Hodge used counterfeit credit cards and stolen account information to purchase thousands of dollars in merchandise from Home Depot stores. He then returned the merchandise to different Home Depot locations and obtained store credit in the form of Home Depot gift cards. Forbes-Hodge sold thousands of dollars in fraudulently obtained Home Depot gift cards in exchange for cash. He was responsible for at least 55 fraudulent purchases, using approximately 30 different counterfeit credit cards and stolen account information during this period.
This case was investigated by the United States Secret Service, the Hillsborough County Sheriff’s Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Stamford Man Sentenced to 41 Months in Prison for Trafficking MarijuanaRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM REYES, also known as “Big Head,” 36, of Stamford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for trafficking marijuana.
According to court documents and statements made in court, in the summer of 2017, REYES and John Koukouras utilized a residence located at 40 Guernsey Hill Road in Lagrangeville, New York, to grow, process and distribute marijuana. The investigation revealed that REYES was also being supplied with large quantities of marijuana by Gustavo Garcia, of Queens, New York. In July 2017, Garcia delivered approximately 40 pounds of marijuana to REYES in exchange for approximately $80,000.
REYES was arrested on July 26, 2017. On that date, investigators conducted court-authorized searches of REYES’ Stamford residence and the Lagrangeville residence. A search of the Stamford residence revealed approximately 18 kilograms of marijuana, paraphernalia associated with narcotics distribution, and $71,004 in cash, and a search of the Lagrangeville residence revealed 140 marijuana plants and related equipment.
Judge Arterton ordered REYES to forfeit his interest in both the $71,004 in cash seized from his residence, and a 2012 Toyota Camry.
REYES has been detained since his arrest. On January 5, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana.
Koukouras and Garcia pleaded guilty to related charges. On February 7, 2018, Koukouras was sentenced to 24 months of imprisonment. Garcia awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration, Stamford Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Sarala V. Nagala.
Springfield Man Sentenced for Heroin DistributionRead the Press Release
BOSTON – A Springfield man was sentenced yesterday in federal court in Springfield for distribution of heroin.
Hector Pabon, 42, was sentenced by U.S. District Court Judge Mark G. Mastroianni to seven years in prison and six years of supervised release. In June 2015, Pabon pleaded guilty to one count of distribution and possession with intent to distribute heroin.
Pabon was arrested and charged in April 2014 for distributing heroin in Hampden County.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Office, made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
Southwest Honkeys Gang Member Pleads Guilty to Meth Conspiracy While IncarceratedRead the Press Release
SPRINGFIELD, Mo. – A Southwest Honkeys gang member pleaded guilty in federal court today to operating a methamphetamine conspiracy from his prison cell.
Nathaniel R. Eisenhour, 30, of Springfield, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to participating in a conspiracy to distribute methamphetamine from Dec. 15, 2016, to April 20, 2017. Eisenhour was incarcerated in the custody of either the Greene County jail or the Missouri Department of Corrections for almost the entire period of the conspiracy.
Eisenhour, a member of the Southwest Honkeys prison gang, admitted that he communicated with associates while he was incarcerated to sell methamphetamine and to collect money for past drug debts.
Eisenhour was arrested on Dec. 21, 2015, on an outstanding parole violation warrant. Eisenhour, while incarcerated, instructed one of his associates to take the money from drug sales to a family member. On Jan. 30, 2017, federal agents seized $31,800 from the family member who was holding the money for Eisenhour. In a jail call, Eisenhour had previously authorized another family member to obtain $200 from that same stash. The total of $32,000, including the seized amount and the $200 that was removed before the seizure, represented approximately 2.2 kilograms in methamphetamine sales, based on the price Eisenhour discussed with one of the associates who distributed for him after his arrest.
Under federal statutes, Eisenhour is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Josephine Larison. It was investigated by the Springfield, Mo., Police Department, the Ozark, Mo., Police Department, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
South Carolina Man Indicted for $1 Million Investment Scheme and Tax EvasionRead the Press Release
CHARLOTTE, N.C. – A criminal bill of indictment was unsealed today in federal court, charging Nickolas M. Godfrey, 39, of Fort Mill, South Carolina, with securities fraud, wire fraud, and transactional money laundering in connection with a $1 million investment fraud scheme and a related tax evasion scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI).
According to allegations contained in the indictment, from 2012 to at least 2015, Godfrey obtained more than $1 million by engaging in a Ponzi scheme through his company, Coast to Coast Business Funding LLC (Coast to Coast), which purportedly provided short-term cash advances to businesses. The indictment alleges that Godfrey induced at least 20 victims to invest with Coast to Coast, by falsely representing that the company was successfully generating substantial revenue. Godfrey maintained a website for Coast to Coast, which also falsely represented that the company was accredited by the Better Business Bureau. To further solicit investments from victims, Godfrey made numerous false representations to victims, including promising returns of as much as 73.5%.
Contrary to promises made to victim investors, Godfrey used victims’ money to pay for personal expenditures and for the expenses of his other businesses, and to make Ponzi-type payments to earlier victims.
When victims complained about missed payments and demanded more information, Godfrey tried to appease them by creating fake documents, including fake financial statements for Coast to Coast, and a fake list of clients to which Coast to Coast had purportedly provided financing.
In addition to the investment fraud scheme, the indictment alleges that Godfrey engaged in in a tax evasion scheme by evading the payment of tax liabilities assessed by the IRS related to his ownership and operation of two hair salons, Bliss Day Spa & Salon (Bliss) in Pineville, N.C., and Alter Ego Salon & Day Spa (Alter Ego) in Charlotte. The indictment alleges that Godfrey committed tax evasion by, among other things, failing to pay federal employment taxes that he had withheld from the paychecks of employees at Bliss and Alter Ego, and taking multiple steps to thwart the IRS’ collection efforts. For example, the indictment alleges that Godfrey commingled the amounts withheld from his employees’ paychecks with other business and personal funds, including money obtained from victim investors, and used those funds to pay for personal expenses. Godfrey also lied to IRS employees attempting to collect the unpaid taxes, according to the allegations in the indictment. In addition, as alleged in the indictment, Godfrey filed individual U.S. Federal Income Tax Returns for the years 2009 through 2012 that failed to report accurately the net income he received from his businesses.
Godfrey had his initial appearance today before U.S. Magistrate Judge David Keesler. The securities fraud charge carries a penalty of up to 20 years in prison and a $5 million fine. The wire fraud charge carries a penalty of up to 20 years in prison and a $250,000 fine. The transactional money laundering charge carries a penalty of up to 10 years in prison and a fine of up to $250,000 or not more than twice the amount of the criminally derived property involved in the transaction. The tax evasion charge carries a penalty of five years in prison and a $250,000 fine.
All charges contained in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The investigation was led by the FBI and IRS-CI. Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Social Services Director of a Nursing Home Charged with ID Theft from Elderly ResidentsRead the Press Release
St. Louis, MO – Jabbaar Smith, 37, of St. Louis, was indicted today on seven counts of identity theft and two counts of aggravated identity theft.
The indictment alleges between 2015 and 2016, Smith was employed as a Social Services Director at an area nursing home. His duties included purchasing items for the residents from funds maintained in their personal accounts. Smith would purchase items from companies through the internet on behalf of nursing home residents who were over the age of 60. Smith then returned some of the merchandise and the vendor mailed refund checks made payable to the elderly nursing home residents. Smith intercepted the refund checks, forged the residents’ names as endorsements, and deposited the refund checks into his personal bank account.
Smith also impersonated an elderly resident during a telephone call with the Social Security Administration and, based on information provided by Smith, the administrative agency unwittingly changed the resident’s direct deposit information to Smith’s personal bank account. Social Security payments for that resident were then deposited into Smith’s personal bank account.
If convicted, identity theft carries a maximum penalty of 15 years in prison and a $250,000 fine on each count and aggravated identity theft carries a mandatory two-year term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Social Security Administration and St. Louis County Police Department. Assistant U.S. Attorney Tracy Berry 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.
This indictment coincides with the United States Department of Justice coordination of a nationwide elder fraud sweep. Attorney General Jeff Sessions and law enforcement partners are coordinating the largest sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Elder fraud complaints
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Sober Home Owner Sentenced to over Five Years in PrisonRead the Press Release
Albert Samukia Jones Saye, a/k/a “Albert Jones,” the owner of several now-defunct sober homes was sentenced in federal court today to more than 5 years in prison and ordered to pay over $2 million in restitution, for his role in a health care fraud conspiracy.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
Jones, 27, of Boynton Beach, was sentenced by U.S. District Judge Robin L. Rosenberg to 71 months in prison, to be followed by 3 years of supervised release and was ordered to pay $$2,071,406 in restitution. In January 2018, Jones pled guilty to participating in a health care fraud conspiracy and maintaining a drug-involved premises (Case No. 17-CR-80229).
According to court documents, Jones owned and operated several recovery residences, commonly known as “sober homes,” in Palm Beach County from 2014-2016, including “No Drug Zone,” “Carter Care Recovery,” and “A T Way.” When properly managed, these recovery residences, operated as alcohol and drug-free living environments for individuals attempting to abstain from substance abuse.
Jones used his sober homes to facilitate a health care fraud scheme. Jones referred more than 100 residents for medically unnecessary urine and saliva tests to Reflections Treatment Center, in exchange for kickbacks from Reflection’s owner, Kenneth Chatman. In some cases, treatment center workers would forge patient signatures on sign-in sheets and submit their own bodily fluids for the tests. In return for referring insured residents for the treatment and testing, Chatman would provide kickbacks and bribes to Jones.
To further defraud insurance companies, Jones would encourage drug use among his insured residents, even providing and using drugs with them, to cause “relapses,” which would extend their stays in his sober homes and lead to more unnecessary tests at Reflections. To keep the scheme going, Jones, Chatman, and other co-conspirators actively recruited people with medical insurance to reside in the sober homes by offering bribes in the form of free or reduced rent, money, controlled substances and other benefits. In exchange, the residents would attend drug treatment and submit to regular and random drug testing at Reflections. During the time-period in which the crimes were committed, 36 insurance companies paid out more than $2 million in fraudulent medical claims to Reflections. In May 2017, Chatman was sentenced to 27 years in prison for his role in the scheme and other offenses (Case No. 17-CR-80013).
This case is the result of the work of the Greater Palm Beach Health Care Fraud Task Force. The Task Force’s ongoing investigation into substance abuse treatment fraud in the Southern District of Florida has resulted in 17 convictions to date. Agencies of the Task Force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, and NICB.
Mr. Greenberg commended the investigative efforts of all law enforcement agencies connected with the Task Force, as they continue to combat sober home abuses and health care fraud.
This case is being prosecuted by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Six MS-13 Members Born in El Salvador Indicted in Maryland on Charges Ranging from Racketeering Conspiracy, Murder, and Attempted MurderRead the Press Release
A federal grand jury has indicted today six MS-13 members, five of whom were unlawfully in the United States, on charges in connection with their MS-13 gang activities, including racketeering conspiracy; murder in aid of racketeering; violent crimes in aid of racketeering; use, carry and possession of a firearm during and in relation to a crime of violence; and conspiracy to commit murder in aid of racketeering.
The indictment was announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Baltimore Field Division; Police Chief Timothy J. Altomare of the Anne Arundel Police Department and State Attorney Wes Adams of the Anne Arundel State’s Attorney Office.
Charged in the nine-count indictment are alleged MS-13 members and associates Moises Alexis Reyes-Canales aka Sicopata, 19; Marlon Cruz-Flores, aka Little S, 22; Fermin Gomez-Jimenez, 20; Manuel Martinez-Aguilar, aka El Lunatic and Zomb, 19; Juan Carlos Sandoval-Rodriguez, aka Picaro, El Pastor, and Gasper, 20; and David Diaz-Alvarado, 20. All the defendants except Cruz Flores, of Annapolis, Maryland, were illegally residing in Annapolis.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Anne Arundel County, Prince George’s County, Montgomery County and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to the indictment, at least prior to in or about 2015, and continuing through at least in or about 2017, Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar, participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking.
According to the indictment, MS-13 members and associates conspired to murder a rival gang member. On or about March 11, 2016, Sandoval-Rodriguez lured the victim to a park in Annapolis, Maryland with the intent to murder the victim. On or about that same date, Cruz-Flores, Gomez-Jimenez, Sandoval-Rodriguez, and Diaz-Alvarado, and other members and associates of MS-13 murdered the victim in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13.
According to the indictment, on Oct. 23, 2016, Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar conspired to and attempted to murder two victims in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13. Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar, and other members and associates of MS-13 attempted to kill one of the victims by stabbing the victim multiple times and attempted to kill a second victim by shooting and stabbing the victim multiple times.
All of the defendants are currently detained on related federal or state criminal charges. Initial appearances have not yet been scheduled.
An indictment is not a finding of guilt. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by HSI Baltimore, ATF Baltimore, Anne Arundel Police Department and Anne Arundel State’s Attorney Office. Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Seema Mittal, as well as Special Assistant U.S. Attorney Samantha Mildenberg of the District of Maryland are prosecuting this case.
Six Defendants Charged in Superseding Indictment with Narcotics ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a superseding indictment charging six defendants with narcotics conspiracy and possession of firearms in furtherance of a drug trafficking crime. Named in the indictment are:
• Shawn Woods, 26, of Buffalo, NY;
• Mikel Lowe, 24, of Buffalo, NY;
• Aaron Mack, 26, of Buffalo, NY;
• Michael Walker, 26, of Buffalo, NY;
• Shameris Washington, 20, of Buffalo, NY; and
• Maurice Rice, 20, of Buffalo, NY.Some of the defendants are also facing additional charges of possession with intent to distribute fentanyl, heroin, butyryl fentanyl, furanyl fentanyl, and U-47700, maintaining a drug premises, and possession with intent to distribute crack cocaine and marijuana. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the superseding indictment, the defendants are charged with trafficking heroin, cocaine, crack cocaine, fentanyl and other illegal narcotics over the course of seven years in the Western New York area. The defendants are also accused of possessing numerous firearms in furtherance of their drug distribution activities.
A detention hearing is scheduled for the six defendants on March 30, 2018 at 11:00 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder.The superseding indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Lackawanna Police Department, under the direction of Chief James Michel; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Sentencings for March 27 - March 28, 2018Read the Press Release
TREVOR SAMUEL BOYD, 25, of Mills, Wyoming was sentenced by Federal District Court Judge Alan B. Johnson on March 27, 2018 for being a felon and unlawful user of a controlled substance in possession of a firearm . Boyd was arrested in Mills, Wyoming. He received forty-one months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $400.00 fine. This case was investigated by the US Bureau of Alcohol, Tobacco, and Firearms.
ROEL MENDOZA-CONTRERAS, 53, of Ciudad Obregon, Sonora, Mexico was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 26, 2018 for illegal re-entry of a previously deported alien into the Unites States. Mendoza-Contreras was arrested in Cheyenne, Wyoming. He received twenty-four months of imprisonment, to be followed by thirty-six months of supervised release, ordered to pay a $100.00 special assessment, and is subject to deportation. This case was investigated by the US Immigration and Customs Enforcement Agency.
EDGAR LUJAN-PEREZ, 24, of Chihuahua, Mexico was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 26, 2018 for illegal re-entry of a previously deported alien into the United States. Lujan-Perez was arrested in Casper, Wyoming. He received time served plus 10 days to allow for deportation proceedings, and ordered to pay a $100.00 special assessment to be remitted at the time of deportation. This case was investigated by the US Immigration and Customs Enforcement Agency.
DERRICK EARL ARGUE, 24, of Gillette, Wyoming was sentenced by Federal District Court Judge Scott W. Skavdahl on March 28, 2018 for transportation of child pornography. Argue was arrested in Gillette, Wyoming. He received one hundred twenty months of imprisonment, to be followed by one hundred twenty months of supervised release, and ordered to pay a $100.00 special assessment and a $5,000.00 Justice for Victims Trafficking Act special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
PEDRO JOSE ROSALES-TRUJILLO, 49, of Bachiniva, Chihuahua, Mexico was sentenced by Federal District Court Judge Alan B. Johnson on March 28, 2018 for illegal re-entry of a previously deported alien into the United States. Rosales-Trujillo was arrested in Cheyenne, Wyoming. He received thirty-seven months of imprisonment and ordered to pay a $100.00 special assessment. This case was investigated by the US Immigration and Customs Enforcement Agency.
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Receipt of Child Pornography and Possession of Child Pornography.
Caleb Oien, age 22, was charged on March 20, 2018. Oien appeared before U.S. Magistrate Judge Daneta Wollmann on March 26, 2018, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 5 years up to 20 years in prison and/or a $250,000 fine, a minimum of 5 years up to lifetime supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Oien knowingly receiving and possessing images of child pornography between July 2017 and January 2018 at Rapid City. The charges are merely an accusation and Oien is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Oien was released pending trial. A trial date has not been set.
Radiation Therapy Company Agrees to Pay up to $11.5 Million to Settle Allegations of False Claims and KickbacksRead the Press Release
DALLAS – Texas-based SightLine Health LLC (SightLine), which operates radiation therapy centers throughout the United States, has agreed to settle a False Claims Act lawsuit alleging that it knowingly submitted claims to the Medicare program that violated the Anti‑Kickback Statute, the Justice Department announced today. Together with Integrated Oncology Network Holdings LLC (ION), which acquired SightLine in 2011, SightLine has agreed to pay the government up to $11.5 million. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and instead is based on the best interests of the patient. It prohibits anyone from offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. Claims submitted in violation of the Anti-Kickback Statute may subject the claimant to liability under the False Claims Act.
The settlement announced today resolves allegations that SightLine violated the Anti-Kickback Statute and the False Claims Act by targeting physicians that were able to refer patients to its cancer treatment centers, and paid those physicians a share of its profits pursuant to investment arrangements that were set up to allow physicians to profit from their referrals. Specifically, the United States alleged that SightLine formed a series of leasing companies in which referring physicians were permitted to invest, and through which SightLine allegedly distributed the profits that its physician-investors generated by referring cancer patients for radiation therapy.
“As the professionals charged with recommending and referring medical procedures for our community, physicians’ primary motivation must remain the well-being of their patients,” said U.S. Attorney Erin Nealy Cox. “Today’s settlement demonstrates our determination to eliminate complex business ventures that improperly interpose financial considerations into our physicians’ medical judgment.”
“Investment arrangements that are structured to improperly compensate physicians for referrals can encourage physicians to make decisions based on financial gain rather than the best interest of their patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to preventing illegal inducements, in whatever form, that undermine the integrity of our public health programs.”
In addition to resolving their alleged False Claims Act liability, ION, SightLine, and their related entities have entered into a five-year Corporate Integrity Agreement with the HHS-OIG. This agreement is intended to increase accountability and transparency and to deter future misconduct. The Corporate Integrity Agreement includes internal and external monitoring of the relationships between the ION and SightLine entities and referring physician investors.
“Companies seeking to boost profits by paying physicians kickbacks for patient referrals undermine impartial medical judgment and increase health care costs for everyone,” said Chief Counsel to the HHS Inspector General Gregory Demske. “We will continue to investigate such illegal, wasteful business arrangements in order to protect government health programs and the patients served by them.”
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. The act also allows the Government to take over the case, as it did here in part. The whistleblower will receive up to $1.725 million.
This matter was handled by the Assistant U.S. Attorney Kenneth Coffin of the U.S. Attorney’s Office for the Northern District of Texas, the Justice Department’s Civil Division, and the HHS Office of the Inspector General.
The case is captioned United States ex rel. IIRT, LLC v. Sightline Health LLC, et al.., Civil Action No. 3-15CV-3202N (N.D. Tex.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
# # #
Radiation Therapy Company Agrees to Pay up to $11.5 Million to Settle Allegations of False Claims and KickbacksRead the Press Release
Texas-based SightLine Health LLC (SightLine), which operates radiation therapy centers throughout the United States, has agreed to settle a False Claims Act lawsuit alleging that it knowingly submitted claims to the Medicare program that violated the Anti‑Kickback Statute, the Justice Department announced today. Together with Integrated Oncology Network Holdings LLC (ION), which acquired SightLine in 2011, SightLine has agreed to pay the government up to $11.5 million.
The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and instead is based on the best interests of the patient. It prohibits anyone from offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. Claims submitted in violation of the Anti-Kickback Statute may subject the claimant to liability under the False Claims Act.
The settlement announced today resolves allegations that SightLine violated the Anti-Kickback Statute and the False Claims Act by targeting physicians that were able to refer patients to its cancer treatment centers, and paid those physicians a share of its profits pursuant to investment arrangements that were set up to allow physicians to profit from their referrals. Specifically, the United States alleged that SightLine formed a series of leasing companies in which referring physicians were permitted to invest, and through which SightLine allegedly distributed the profits that its physician-investors generated by referring cancer patients for radiation therapy.
“Investment arrangements that are structured to improperly compensate physicians for referrals can encourage physicians to make decisions based on financial gain rather than the best interest of their patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to preventing illegal inducements, in whatever form, that undermine the integrity of our public health programs.”
“As the professionals charged with recommending and referring medical procedures for our community, physicians’ primary motivation must remain the well-being of their patients,” said U.S. Attorney Erin Nealy Cox. “Today’s settlement demonstrates our determination to eliminate complex business ventures that improperly interpose financial considerations into our physicians’ medical judgment.”
In addition to resolving their alleged False Claims Act liability, ION, SightLine, and their related entities have entered into a five-year Corporate Integrity Agreement with the HHS-OIG. This agreement is intended to increase accountability and transparency and to deter future misconduct. The Corporate Integrity Agreement includes internal and external monitoring of the relationships between the ION and SightLine entities and referring physician investors.
“Companies seeking to boost profits by paying physicians kickbacks for patient referrals undermine impartial medical judgment and increase health care costs for everyone,” said Chief Counsel to the HHS Inspector General Gregory Demske. “We will continue to investigate such illegal, wasteful business arrangements in order to protect government health programs and the patients served by them.”
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. The act also allows the Government to take over the case, as it did here in part. The whistleblower will receive up to $1.725 million.
This matter was handled by the U.S. Attorney’s Office for the Northern District of Texas, the Justice Department’s Civil Division, and the HHS Office of the Inspector General.
The case is captioned United States ex rel. IIRT, LLC v. Sightline Health LLC, et al.., Civil Action No. 3-15CV-3202N (N.D. Tex.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Queens Man Arrested for Stealing More than $150,000 in Government Benefits Paid to His Deceased MotherRead the Press Release
Earlier today, in federal court in Brooklyn, Mark Hodge was arrested on a complaint charging him with theft of government property. Hodge allegedly stole more than $150,000 from the Social Security Administration, the Office of Personnel Management and the Department of Veterans Affairs between March 1999 and July 2017. Hodge is scheduled to make his initial appearance this afternoon before United States Magistrate Judge Vera M. Scanlon.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and John Grasso, Special Agent-in-Charge, Social Security Administration, Office of the Inspector General (SSA-OIG), announced the charge.
“Month after month for nearly two decades, the defendant allegedly stole government funds intended for his mother, who had died in 1999,” stated United States Attorney Donoghue. “This Office will hold responsible and prosecute those fraudsters who cash government checks meant for our nation’s retirees, veterans, or the disabled.”
“Today’s arrest should serve as a warning to those who choose to selfishly defraud the Social Security Trust Fund,” stated SSA-OIG Special Agent-in-Charge Grasso. “The Social Security Office of the Inspector General vigorously pursues these cases, and we will continue to work jointly with other law enforcement partners to identify and prosecute fraud perpetrators in the future. I strongly encourage the public to report suspected instances of Social Security fraud to the OIG’s Fraud Hotline at 1-800-269-0271 or https://oig.ssa.gov/report.”
According to the complaint, the three federal agencies had been paying benefits to the defendant’s mother, who had been residing with the defendant until her death in 1999. Unaware of her death, the agencies continued making payments for her benefit. Instead of reporting the overpayments, the defendant transferred the funds from a joint bank account in his mother’s name to his own personal checking account. The defendant continued the fraud in November 2016, when he falsely represented to the Social Security Administration that his mother was alive but unable to be interviewed because she had been hospitalized.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a statutory maximum of 10 years’ imprisonment for theft of government property.
The government’s case is being handled by the Office’s General Crimes Section. Special Assistant United States Attorney Virginia Nguyen is in charge of the prosecution.
The Defendant:
MARK HODGE
Age: 60
Residence: Queens, New YorkE.D.N.Y. Docket No. 18-MJ-257
Prosecutors & Crisis Services of North Alabama Recognize Champions for Crime VictimsRead the Press Release
April 10 Ceremony Commemorates 2018 National Crime Victims’ Rights Week
HUNTSVILLE — The U.S. Attorney’s Office, Northern District of Alabama, Madison County District Attorney’s Office and Crisis Services of North Alabama will commemorate National Crime Victims’ Rights Week with a ceremony Tuesday, April 10, recognizing individuals who have shown a commitment to helping crime victims.
The agencies will present the 2018 National Crime Victims’ Rights Recognition Ceremony from 8:30 a.m. to 10 a.m. at the Jackson Center, 6001 Moquin Drive NW, Huntsville. Alexis Barton, an outspoken advocate for sexual assault survivors, will be the ceremony’s featured speaker. Barton is an active member of the Junior League of Birmingham and serves on the board of One Place Metro Alabama Family Justice Center, which provides coordinated services to victims of domestic violence and sexual assault with a multi-disciplinary team of professionals working together under one roof.
The Crime Victims’ Rights Recognition Ceremony in Huntsville will honor individuals from the areas of victim advocacy, law enforcement and prosecution who have contributed outstanding services to victims.
National Crime Victims’ Rights Week this year is April 8-14. The U.S. Department of Justice Office for Victims of Crime leads communities throughout the country in their annual observances of the week by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme – Expand the Circle: Reach All Victims – highlights how a community’s investment in crime victims expands the opportunity for victims to disclose their victimization, connect with services, and receive the support they need. The theme also acknowledges the many barriers facing victims of crime, especially LGBTQ victims, older adults, speakers with limited English proficiency, those with disabilities, American Indians and Alaska Natives, and others from historically marginalized communities.
This event is free and open to the public.
To register to attend the Huntsville ceremony, visit https://usaoalntraining.org/NationalCrimeVictimsCeremony.
For additional ideas on how to support victims of crime, visit OVC’s website at www.ovc.gov.
*Graphics of this year’s logo are available on the OVC website.
###
Prominent Southwest Washington Fishing Guide Convicted of Disability Fraud SchemeRead the Press Release
A prominent Southwest Washington fishing guide, who was convicted last year of killing two protected wild salmon, was convicted today in U.S. District Court in Tacoma of a disability fraud scheme, announced U.S. Attorney Annette L. Hayes. BILLY JIM SWANN, 53, was convicted following a three-day trial before U.S. District Judge Robert J. Bryan. Judge Bryan found SWANN guilty of perjury, wire fraud, and Social Security fraud for his 8-year scheme to obtain disability benefits to which he was not entitled. Judge Bryan set sentencing for June 22, 2018.
According to records filed in the case and testimony at trial, SWANN applied for Social Security disability benefits in 2006, claiming that he had been disabled and unable to work since 2003. When Social Security denied the claim, SWANN appealed and swore before an administrative law judge that his only work activity was as a volunteer for a few weeks in the summer at an Alaska fishing camp. When SWANN’s claims for disability benefits were again denied, SWANN filed an appeal in U.S. District Court, again with numerous false claims about his alleged disabilities. SWANN claimed his disability interfered with his ability to walk, climb stairs and use his hands, and that he needed a cane to walk. SWANN claimed that the accident that caused his disability in 2003, also caused him cognitive problems, limiting his ability to carry on a conversation.
Contrary to SWANN’s claims, between 2006 and 2014, he had a busy and successful business known as Swanny’s Guided Fishing. SWANN offered guided fishing trips in Washington, Oregon, Idaho and Alaska. SWANN was featured on the cover of Northwest Sportsman Magazine, was sponsored by numerous outdoor equipment brands, and was a regular guest on fishing shows carried on the radio. In 2012, the year he told an administrative law judge that he had not worked at all, SWANN took in $92,503 for his fishing guide business.
SWANN’s applications for benefits were repeatedly denied by Social Security. Had SWANN been successful in his scheme, he and his family would have collected more than $200,000 in benefits.
Perjury and Social Security fraud are punishable by up to five years in prison. Wire fraud is punishable by up to 20 years in prison. Those are the maximum penalties, and the actual sentence imposed will be determined by Judge Bryan based on a number of sentencing factors.
The fraud scheme was uncovered during a 2016 investigation of SWANN’s illegal conduct on the Cowlitz River. On October 1, 2014, SWANN led a promotional fishing trip on the Cowlitz River. The trip was being broadcast over the internet. SWANN encouraged his clients to catch two native Coho salmon. Native Coho on the Cowlitz are protected by the Endangered Species Act and Washington law, and may not be removed from the water. After the clients landed the fish, SWANN clubbed both of them and then cut off the adipose fins on each fish to make it appear they were hatchery fish and therefore legal to catch and keep. However, evidence of the catching and clubbing of the wild and protected fish was caught on the web broadcast, and the illegal conduct was reported to the Washington State Department of Fish and Wildlife. SWANN entered a guilty plea to violating the Endangered Species Act. In March 2017, SWANN was fined $7,500 for the federal misdemeanor conviction.
The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and NOAA Fisheries Office of Law Enforcement.
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson and Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration specially designated to prosecute fraud cases in federal court.
Prison Time and Stiff Penalties Await Tax Fraudsters, Prosecutors WarnRead the Press Release
CHARLOTTE, NC - With the deadline for filing income tax returns rapidly approaching, R. Andrew Murray, U.S. Attorney for the Western District of North Carolina, and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), jointly announce recent tax fraud prosecutions and sentencings, and deliver a powerful warning to those who are thinking about breaking the law by committing tax crimes.
“As April 15th nears, tax cheats are put on notice: our office works diligently to investigate and prosecute those who try to evade their federal tax obligations,” said U.S. Attorney Murray. “Taxes help pay for important services our communities rely on. Tax cheats steal from the government and increase the burden on honest taxpayers who file their taxes on time and pay the share they owe. Our experienced tax prosecutors and IRS criminal investigators work hand-in-hand to uncover tax fraud and hold tax criminals accountable for their actions.”
“As the 2018 tax filing season comes to an end, special agents of the IRS-Criminal Investigation will continue to work diligently to pursue those individuals and corporations who make deliberate decisions to not comply with the tax laws. America’s tax system relies heavily on voluntary self-assessments of what tax is owed and when individuals or corporations falsify those self-assessments, the citizens of Western North Carolina, can rest assured our agents in the Charlotte Field Office, along with the U.S. Attorney’s Office, will prosecute them. Prosecution of these cases supports the overall IRS compliance goals and enhances voluntary compliance,” said Acting Special Agent in Charge Matthew D. Line.
Tax Preparer Indicted for Tax Fraud
Aminta A. Smith, 31, of Charlotte, made her initial appearance today on federal charges of aiding and assisting in the preparation of false tax returns and filing a false tax return. The indictment alleges that, between 2012 and 2015, Smith prepared and submitted to the IRS more than 1,300 tax returns, many of which included false information, such as false income and false education expenses, which qualified filing individuals for inflated tax refunds. The indictment further alleges that the Charlotte-area tax return preparer kept a portion of the tax refund as her fee. For tax years 2011 to 2015, Smith also filed U.S. Individual Income Tax Returns that did not include much of the income she received for preparing tax returns, which resulted in Smith receiving large tax refunds. Smith faces a maximum penalty of three years in prison for each charge of aiding and abetting in the preparation of false tax returns and three years in prison for filing a false tax return. (3:18-cr-107).
Other Tax Prosecutions
In the last year, the U.S. Attorney’s Office, with the assistance of IRS-CI, has investigated and prosecuted numerous individuals for criminal tax violations. Tax enforcement prosecutions include:
Todd Barry Greenburg (5:17-cr-53). On March 6, 2018, Greenburg, 46, a resident of Mooresville, N.C. and co-owner of a Charlotte-area car dealership, pleaded guilty to one count of tax evasion. As part of his guilty plea, Greenburg admitted that, for tax years 2010 through 2015, he attempted to evade a large part of the income tax he owed by: concealing and attempting to conceal from the IRS the nature and extent of his assets and their location; placing funds and properties in the names of others; and making false statements to IRS agents. He faces a maximum sentence of five years in prison and a $250,000 fine. Greenburg’s sentencing date has not been set.
Peter Gjuraj (5:17-cr-31). On September 5, 2017, Gjuraj, 50, of Mooresville, was sentenced to eight months in prison. Gjuraj operated the Blue Parrot, a restaurant in Lake Norman, and concealed significant personal earnings from the IRS. For tax years 2012 through 2014, the Blue Parrot earned additional gross receipts totaling approximately $2,793,873 that Gjuraj failed to report on his individual income tax returns filed with the IRS. As a result of the unreported gross receipts, Gjuraj had additional taxable income substantially in excess of that reported on his tax years 2012 through 2014. The additional federal tax due on this unreported income was a total of $319,974.92.
Matthew Moretz (5:17-cr-3). On August 8, 2017, Moretz, 32, of Taylorsville, N.C., and owner of a recycling business, was sentenced to six months in prison. Court records show that Moretz concealed significant personal earnings from the business from the IRS. As a result of unreported income of $529,622.44, Moretz had additional tax due and owing of approximately $115,409 from 2010 to 2013.
Priscilla Lydia Turner (1:16-cr-133). On August 17, 2017, Turner, 36, of Greenville, South Carolina, was sentenced to 24 months in prison and was ordered to pay $204,773 in restitution for her role in a stolen identity refund fraud scheme. Turner misused her access to a computer system to obtain personal identifying information (PII) of inmates detained at the Greenville County Detention Center. Turner passed the stolen PII of inmates to her co-conspirators, who used that information to file fraudulent tax returns and to obtain fraudulent tax refunds. Turner’s co-conspirators were previously sentenced in connection to the tax fraud scheme. Carmichael Hill was sentenced to 75 months in prison; Reginald Knowles was sentenced to 70 months in prison; and Senita Dill was sentenced to 324 months in prison.
Quandella Walker (3:17-cr-343). On December 14, 2017, Walker, 29, of Charlotte, was indicted for aiding and assisting in the filing of false tax returns for others as well as filing false tax returns in her own name. Through her tax preparation business, Quandella Tax Services, Walker prepared tax returns for clients that contained false income information, to enable her clients to fraudulently qualify for inflated tax refunds. Walker is also charged filing false tax returns for her own name.
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against a wide range of tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them. The IRS has issued its annual “Dirty Dozen” which lists common tax scams that taxpayers may encounter, particularly during filing season. Taxpayers are urged look out for, and to avoid, the following common schemes:
- Phishing
- Phone Scams
- Identity Theft
- Return Preparer Fraud
- Fake Charities
- Inflated Refund Claims
- Excessive Claims for Business Credits
- Falsely Padding Deductions on Returns
- Falsifying Income To Claim Credits
- Abusive Tax Shelters
- Frivolous Tax Arguments
- Abusive Tax Shelters
- Offshore Tax Avoidance
Education is the best way to avoid these common schemes. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website.
Pierre Man Charged for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
William Rivers, age 61, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Rivers was convicted of Sexual Abuse in June 1992. As a result of this conviction, he is required to register as a sex offender. It is alleged that between December 11, 2017, and December 30, 2017, Rivers, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Rivers is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Rivers was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 12, 2018.
Philadelphia-Area Businessman Sentenced to 18 Months in Prison for Bribing Former Philadelphia District Attorney, Tax FraudRead the Press Release
PHILADELPHIA – A Feasterville, Pennsylvania, man was sentenced today to 18 months in prison for bribing former Philadelphia District Attorney Rufus Seth Williams and evading taxes, U.S. Attorney Craig Carpenito announced.
Mohammad N. Ali, 41, previously pleaded guilty before U.S. District Judge Paul S. Diamond to an information charging him with one count of using facilities in interstate and foreign commerce to promote bribery in violation of Pennsylvania law and one count of making and subscribing to a false federal tax return. Judge Diamond imposed the sentence today in Philadelphia federal court.
According to documents filed in this case and statements made in court:
From July 2010 through May 2015, Ali provided a stream of bribes to Williams – which Williams concealed from timely public disclosure – in exchange for Williams performing and agreeing to perform official acts for Ali and to violate Williams’ legal duties as specific opportunities arose.
For example, Ali provided Williams with a $7,000 check, an all-inclusive vacation to Punta Cana, Dominican Republic, worth $6,381, a custom sofa worth $3,212, $2,679 in dinners at high-end Philadelphia restaurants, approximately $2,000 in cash, a $842 Burberry watch, a Louis Vuitton tie worth $205, an iPad worth approximately $300, and a Burberry purse for Williams’ girlfriend.
In exchange, Williams agreed to help Ali with security screenings when Ali returned from foreign travel. For example, on March 15, 2013, Ali met with Williams and a police official and Williams asked the police official to help Ali avoid secondary screening at the airport. That same day, Ali gave Williams a $7,000 check. Williams also repeatedly offered to write an official letter, under his authority as the District Attorney, on Ali’s behalf to pressure and advise another public official to assist Ali with the border encounters.
Ali also sought Williams’ assistance with criminal charges brought by the Philadelphia District Attorney’s Office against Ali’s associate, an individual identified in the information as “Person #1.”
In addition, Ali used his business earnings to pay for over $490,000 in personal expenses, including $112,635 toward the purchase of a dental practice, $15,000 toward the purchase of a Porsche, purchases at clothing stores, meals at high-end restaurants, and domestic and international travel – including $6,300 for airfare and lodging for Williams and Williams’s girlfriend to stay at the Punta Cana resort. Ali fraudulently deducted these personal expenses on corporate income tax returns and did not report this income on his personal tax returns. In all, Ali caused a total tax loss of $163,498.
In addition to the prison term, Judge Diamond sentenced Ali to three years of supervised release, fined him $100,000 and ordered him to pay restitution of $63,498. Ali was immediately remanded to the custody of the Federal Bureau of Prisons to serve his sentence.
Ali testified in June 2017 at Williams’ trial. On the ninth day of that trial, Williams entered a guilty plea to a charge of bribery and admitted that he committed all of the bribery and fraud offenses alleged in a 29-count indictment against him. Williams resigned as District Attorney at that time. He was sentenced to 60 months in prison on Oct. 24, 2017.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Edward Wirth, and special agents of Homeland Security Investigations (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation.
The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.
The government is represented by Eric W. Moran, Chief of the Criminal Division for the southern vicinages in the District of New Jersey, and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.
Defense counsel: Mark E. Cedrone Esq., Philadelphia
Philadelphia Duo Charged with Sex Trafficking of a MinorRead the Press Release
Shyniquah Lightner, 26, and Malik Hudson, 21, both of Philadelphia, were charged today by Indictment[1] with sex trafficking of a minor, announced United States Attorney Louis D. Lappen.
The indictment alleges that between July 2017 and September 2017, defendant Shyniquah Lightner was the operator of a prostitution venture in Philadelphia, Pennsylvania, and defendant Malik Hudson assisted Lightner in the operation. As part of the venture, Lightner recruited young females to work as prostitutes in her business, and she created Internet advertisements in which she marketed various females as available for purchase for purposes of prostitution. These advertisements featured pictures of the females, either scantily clad or partially nude, a description of each female, and a phone number to call to arrange a meeting. Defendants Lightner and Hudson used force, threats of force, fraud, and coercion to cause the females who worked for them to engage in commercial sex acts. Two of the females Lightner recruited and advertised were under 18 years of age. Lightner and Hudson are charged with sex trafficking of Minor 1. Additionally, Lightner is charged in a second count with sex trafficking of Minor 2.
If convicted, Lightner faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison, a minimum of 5 years up to lifetime-supervised release, a $500,000 fine, and a $200 special assessment.
If convicted, Hudson faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison, a minimum of 5 years up to lifetime-supervised release, a $250,000 fine, and a $100 special assessment.
"We are privileged to have collaborated with our Human Trafficking Task Force partners in the investigation and attendant arrests," said Philadelphia Police Comissioner Ricard Ross. "Our collective efforts resulted in the arrests of two dangerous predators, and furthered our overarching mission to keep our children safe from exploitation."
"The task force brings together the expertise, training, experience, and law enforcement authorities of the partnered agencies to help identify human traffickers, and prosecute them while also protecting and aiding survivors. “HSI Philadelphia is pleased that the newly formed multiagency Anti-Trafficking Coalition worked jointly on this investigation, and we look forward to expanding our partnerships with private and public entities to combat human trafficking,” said Marlon V. Miller, special agent in charge of HSI Philadelphia.
The case was investigated by the Homeland Security Investigations (HSI), the Philadelphia Police Department Special Victim’s Unit (SVU) and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Jessica Natali. This case is part of the Philadelphia Anti-Human Trafficking Task Force. Members of the joint task force include the HSI Philadelphia, the Philadelphia Police Department’s SVU, the Philadelphia District Attorney’s Office Family Violence & Sexual Assault Unit, the Federal Bureau of Investigation, the Salvation Army and the United States Attorney’s Office for the Eastern District of Pennsylvania.
[1] An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parmelee Man Charged with Aggravated Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Minor.
Mason Neck, age 28, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, any term years, not less than 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 30, 2016, and August 9, 2016, Neck knowingly attempted to engage in a sexual act with a minor victim.
The charge is merely an accusation and Neck is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Neck was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 26, 2018.
Owners of Pasco County Marketing Firm Indicted for Paying Healthcare Kickbacks and Money LaunderingRead the Press Release
Tampa, Florida – An indictment has been unsealed charging Frank V. Monte (38, Valrico) and Kimberley S. Anderson (50, New Port Richey) with one count of conspiracy, five counts of paying healthcare kickbacks, one count of conspiracy to commit money laundering, and three counts of illegal monetary transactions. Monte is also charged with two counts of making false statements. If convicted, each faces a maximum penalty of 5 years in federal prison for the conspiracy count, up to 5 years’ imprisonment for each count of paying a kickback, and up to 10 years in federal prison for each money laundering and monetary transaction charge. Monte faces up to 5 years’ imprisonment on each false statement charge. The indictment also notifies Monte and Anderson that the United States intends to forfeit cash, vehicles, and real estate, all of which are alleged to be traceable to proceeds of the offenses.
According to the indictment, in May 2014, Monte and Anderson, acting on behalf of their marketing company Centurion Compounding, Inc., entered into a marketing agreement with the owners of a Pinellas County-based pharmacy called Lifecare. Centurion employed sales representatives to market compounded medications, specifically creams for pain and scars, among others, to beneficiaries of healthcare plans, especially TRICARE. These creams typically ranged in price from $900 to $21,000 for a one-month supply. Between May and November 2014, Monte and Anderson directed the patients that Centurion sales representatives had recruited and the physicians in their network to send all of their compounded cream prescriptions to Centurion, which then transmitted them to Lifecare to fill.
During this same period, the owners of Lifecare, Carlos Mazariegos and Benjamin Nundy, entered into an agreement with the principals of Centurion to pay illegal kickbacks to Dr. Anthony Baldizzi, a Centurion in-network physician. Lifecare and Centurion agreed to pay Dr. Baldizzi 10 percent of each paid claim resulting from a prescription for compounded cream written for his patients and filled at Lifecare. These prescriptions were often billed to TRICARE.
Lifecare received approximately $5.3 million from TRICARE for claims made for prescriptions for compounded medications prescribed by Dr. Baldizzi as a result of this illegal kickback scheme. In December 2014, Mazariegos wrote a check for $71,900, funded with the proceeds from the scheme, to pay for a luxury car for Dr. Baldizzi in partial satisfaction of kickbacks owed to him by Lifecare and Centurion.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Dr. Baldizzi previously pleaded guilty to conspiracy to commit healthcare fraud and receiving healthcare kickbacks. Mazariegos and Nundy previoulsy pleaded guilty to conspiracy to commit health care fraud. They are currently awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigations, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Orthopaedic and anesthesia providers to pay $3.2 million to settle false claim act allegationsRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has announced that Georgia Bone & Joint (GBJ), Southern Bone & Joint a/k/a Summit Orthopaedic Surgery Center (Summit Surgery Center), Southern Crescent Anesthesiology, PC (SCA), Sentry Anesthesia Management, LLC (Sentry), and David LaGuardia (LaGuardia) agreed to pay $3.2 million to settle allegations that LaGuardia, Sentry, and SCA provided a free medical director to Summit Surgery Center in order to induce it to choose to perform more procedures at the surgery center rather than in the GBJ office; and that GBJ and LaGuardia caused the submission of false claims to Medicare for prescription drugs purchased outside of the United States and not approved by the U.S. Food and Drug Administration (FDA).
“Kickbacks should never play a role in medical decision-making,” said U.S. Attorney Byung J. “BJay” Pak. “It is critical to our health care system that patients seeking health care know that their providers’ recommendations are based on what is in the patient’s best interests and not influenced by illegal kickbacks or arrangements.”
“Decisions on where and how patients’ medical procedures are performed should never be made based on thinly veiled bribes, as was alleged in this matter,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Such alleged schemes will be aggressively investigated and prosecuted.”
“Abuses of the healthcare system destroy the basic trust between providers and patients, between taxpayers and government,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI and its federal partners make it a priority to make sure funds are not hijacked by those willing to misuse taxpayer dollars, thereby violating individuals who count on our healthcare programs for their medical needs.”
“This settlement sends a clear message to all healthcare providers that fraudulent activities intended to defraud federal benefit programs are a federal crime that carries serious consequences and will not be tolerated,” said U.S. Postal Service, Office of Inspector General Special Agent in Charge Imari Niles. “The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service.”
This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Sharon Kopko, former Practice Administrator for SBJ, under the qui tam, or whistleblower provisions of the False Claims Act. United States ex rel. Sharon Kopko v. Georgia Bone and Joint, et al., Civil Action No. 3: l 3-CV-067-TCB. Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government; Ms. Kopko will receive a share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, the FBI and the U.S. Postal Service Office of Inspector General.
The civil settlement was reached by Assistant U.S. Attorneys Darcy Feuerzeig Coty and Neeli Ben-David.
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.
Onondaga Woman Pleads Guilty to Methamphetamine-Related ChargeRead the Press Release
SYRACUSE, NEW YORK – Lindsay Creiman, age 37, of Clay, New York, pled guilty today to possessing pseudoephedrine, knowing it would be used in the manufacture of methamphetamine, announced United States Attorney Grant C. Jaquith, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division, and New York State Police Superintendent George P. Beach II.
As part of her guilty plea, Creiman admitted that on approximately 42 occasions between October 2015 and April 2017, she purchased pseudoephedrine pills from different drug stores in and around Onondaga County, New York, with an aggregate weight of approximately 91 grams. On approximately nine other occasions, Creiman attempted to purchase pseudoephedrine but was prevented from doing so, with the purchase being “blocked” by the pharmacy computers because she had exceeded store purchase limits. Creiman further admitted that she purchased the approximately 91 grams of pseudoephedrine knowing it was intended to be used in the manufacture of methamphetamine, and, in fact, gave the pills to others for that purpose, often receiving finished product methamphetamine, which she consumed.
Sentencing is scheduled for July 31, 2018, in Syracuse. The charge to which Creiman pled guilty carries a maximum term of imprisonment of 20 years, to be followed by a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the U.S. Drug Enforcement Administration, the New York State Police (NYSP), the New York State Intelligence Center (NYSIC), and, and was prosecuted by Assistant U.S. Attorney Carl Eurenius.
Ohio Man Sentenced to Probation with Home Detention for Interfering with a Flight CrewRead the Press Release
PITTSBURGH, Pa – An Ohio man has been sentenced in federal court to three years probation with four months home detention on his conviction of interfering with the duties of a flight crew, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Dwight D. Allen, age 56, of University Heights, Ohio.
According to the information presented to the court, on December 17, 2016, a Delta flight out of Pittsburgh, Pennsylvania, was heading to Columbus, Ohio, when the defendant, Dwight D. Allen, interfered with the performance of duties of a flight crew member or flight attendant of the aircraft, and lessened the ability of the member or attendant to perform those duties, by intimidating the flight attendant or flight crew member. Allen disregarded instructions to remain in his seat, and had to be physically restrained by attendants and passengers as the plane was returned to the gate due to the defendant’s aggressive behavior.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
The United States Attorney commended the Federal Bureau of Investigation and Allegheny County Police Department for the investigation leading to a successful prosecution.
Newark Man Charged with Armed CarjackingsRead the Press Release
NEWARK, N.J. – A Newark man was charged today with committing two armed carjackings in Newark and North Bergen, New Jersey, U.S. Attorney Craig Carpenito announced.
Nifees Ingram, 32, was charged in two complaints with the carjackings and with using a firearm in furtherance of a crime of violence. He made his initial appearance this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to documents filed in this case and statements made in court:
On March 4, 2018, Ingram contacted the owners of a 2005 Ford Mustang who had advertised the car for sale on Facebook. Ingram lured the sellers to a location in Newark, ostensibly to purchase the car. When the victims arrived at the location to sell the car, Ingram got into the driver’s seat and began to drive away with one of the victims still in the car. After he drove some distance away, Ingram showed the victim a handgun, and ordered the victim to get out of the car. Ingram then drove away in the car, which was later recovered in Newark.
On March 12, 2018, Ingram went to a residence in North Bergen, New Jersey, under the pretense of being a potential buyer for a 2007 Audi Q7 that the victim had posted for sale on Facebook. Ingram lured the victim from the home and asked the victim if he could take the vehicle for a test drive. Once in the car with the victim, Ingram displayed a handgun and refused to let the victim leave the car. Ingram then drove the victim from North Bergen to Newark and forced the victim to leave behind his cell phone and get out of the car. Ingram then fled with the car, which was later recovered in Newark.
The carjacking charges each carry a maximum of 15 years in prison, and the firearms charge carries a statutory mandatory minimum of 5 years in prison, consecutive to any other sentence imposed, and a statutory maximum term of life in prison.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; the North Bergen Police Department, under the direction of Chief William Dowd, and the Newark Department of Public Safety, under the direction of Anthony Ambrose, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Defense counsel: Leticia Olivera Esq., Assistant Federal Public Defender, Newark
New Orleans Woman Pleads Guilty in Methamphetamine Trafficking ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that ANNA THOMPSON, age 31, of New Orleans, pled guilty today to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically, THOMPSON pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine. THOMPSON faces a mandatory minimum sentence of 10 years in prison and a maximum life sentence, a fine of up to $10,000,000 and at least five years of supervised release.
U.S. District Judge Ivan L.R. Lemelle set sentencing for THOMPSON on June 27, 2018 at 2:00 p.m.
According to court documents, during the timeframe of this conspiracy, codefendant Steven LYONS was a major methamphetamine distributor in the New Orleans area. LYONS obtained methamphetamine by U.S. Mail and other means from several sources, including codefendants Carlos Mario CANTU-COX and Christopher CANTU-COX in Texas (who also supplied THOMPSON); Eric WILLIS in Texas; Trung PHAM in California; and Garret TEMPLETON in Louisiana. Codefendants Tommy WELLS, Clark McALPIN, Dwayne CLAUSE, and Dawn CONRAVEY acted as sellers or brokers of methamphetamine for LYONS in the New Orleans area.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Amtrak Police, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
Mustang Woman Sentenced to More Than Three Years in Prison for Fraud and Tax CrimesRead the Press Release
OKLAHOMA CITY – VANESSA L. POLLARD, of Mustang, Oklahoma, has been sentenced to 37 months in prison for wire fraud and signing a false federal income tax return in connection with a $1.3 million embezzlement, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On August 8, 2017, Pollard was charged by information with one count of wire fraud and one count of signing a false federal income tax return. According to the charges, Pollard worked for an insurance agency in Yukon, Oklahoma, as a bookkeeper from April 1999 until early August 2016. As part of her job, she reviewed monthly bank statements, made entries in an internal accounting system, and reconciled those records with a business checking account at Yukon National Bank. She was accused of writing unauthorized checks and making unauthorized interstate wire transfers from the business checking account to pay her personal credit card accounts. The information also alleged that she altered bank statements to conceal these payments from the agency’s management.
On August 30, 2017, Pollard pleaded guilty to transmitting $3,178 through interstate wires in January 2014 with the intent to defraud her employer, the insurance agency. She also pleaded guilty to signing a false tax return. In particular, she admitted that on May 13, 2013, she signed a personal federal tax return for the 2012 calendar year that she knew was false because it reported only $50,736 in total income when she knew her 2012 income was substantially higher.
Today U.S. District Judge Vicki Miles-LaGrange sentenced Pollard to 37 months in prison, to be followed by three years of supervised release. As part of the sentence, she must pay restitution of $1,239,822.95 to her former employer, $25,000 to Travelers Casualty Insurance, and $127,287 to the Internal Revenue Service. In a plea agreement, she agreed to forfeit property purchased with funds traceable to her embezzlement, including her house in Mustang, two trucks, a sports car, three motorcycles, a boat, two jet skis, and a retirement account.
This case is the result of an investigation by the Internal Revenue Service–Criminal Investigations and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Mark R. Stoneman.
Reference is made to the information and other public filings for further information.
Multi-Convicted Felon Sentenced for Possession of A FirearmRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on March 29, 2018, Senior United States District Court Judge W. Louis Sands sentenced Justin Norris, age 30, of Albany, GA, to 115 months imprisonment for the offense of possession of a firearm by convicted felon. Mr. Norris previously plead guilty to this charge and admitted the following facts were true:
On September 28, 2016, agents with the Lee County Sheriff’s Office used a previously reliable confidential informant (CI) to conduct a transaction with Mr. Norris. Mr. Norris had informed the CI that he had a Taurus Judge handgun for sale. Agents arranged for the CI to make a series of audio-recorded phone calls to Mr. Norris to arrange the details of the transaction. Mr. Norris agreed to sell the CI a gram of methamphetamine, the firearm and 100 rounds of ammunition for $410. During these conversations, Mr. Norris advised the CI that “Bubba” had stolen the ammunition and that he had bought it from Bubba for 1 gram of meth.
During the last recorded call before the two met at a gas station, Mr. Norris advised that he had just thrown the meth out the window after seeing a police officer in the vicinity. The two met at a gas station on Philema Road in Lee County, Georgia. The CI was equipped with an audio/video recording device which captured the meeting. During the meeting, the CI provided Mr. Norris the money and Mr. Norris provided to the CI the gun and ammo. The CI left the area and returned to meet with agents, who obtained the gun and ammo from him. A GCIC check of the gun’s serial number revealed it had been reported stolen in Dougherty County on 9/25/2016.
Prior to this latest offense, Mr. Norris was convicted and sentenced in these previous felony cases:
- Worth County Superior Court Case Number 2014 CR128—Theft by Taking (Motor Vehicle) –May 28, 2015;
- Worth County Superior Court Case Number 2014CR17—Burglary and Theft By Taking (Motor Vehicle)—January 15, 2014; and
- Dougherty County Superior Court Case number 2011R169—Burglary—June 28, 2012.
- Worth County Superior Court Case Number 09CR06—Possession of Marijuana with Intent to Distribute on January 14, 2009-- sentenced pursuant to the Georgia First Offender’s Act.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the ATF, Columbus Division and the Lee County Sheriff’s Office. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Michigan Home Health Agency Assistant Director of Nursing Sentenced to Three Years in Prison for Role in $1.6 Million Health Care Fraud SchemeRead the Press Release
The assistant director of nursing of a Michigan home health agency was sentenced to 36 months in prison today for his role in a scheme involving approximately $1.6 million in fraudulent Medicare claims for home health services that were procured through the payment of kickbacks, and that were medically unnecessary and not provided.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Juan Yrorita, 63, of Sterling Heights, Michigan, was sentenced by U.S. District Judge Gershwin A. Drain of the Eastern District of Michigan. Judge Drain also ordered Yrorita to pay $1,524,951.88 in restitution, jointly and severally with his co-conspirators, and to forfeit $49,823.41. After four days of trial, Yrorita pleaded guilty on Nov. 29, 2017 to one count of conspiracy to commit health care fraud and wire fraud.
As part of his guilty plea, Yrorita admitted that his co-conspirators at Anointed Care Services (Anointed), a Detroit-area home health agency, paid kickbacks to recruit Medicare beneficiaries. Yrorita further admitted that as Anointed’s assistant director of nursing, he falsified medical records to support Anointed’s fraudulent claims to Medicare for services that were medically unnecessary and never provided.
According to the evidence at trial, Anointed submitted approximately $1.6 million in false and fraudulent claims to Medicare.
Yrorita was charged along with Editha Manzano, 70, of Troy, Michigan; Liberty Jaramillo, 67, also of Troy; Roberto Quizon, M.D., 71, of Bloomfield Hills, Michigan; and Victoria Gallardo-Navarra, M.D., 74, also of Bloomfield Hills, in an indictment returned on Sept. 1, 2016. Jaramillo and Quizon pleaded guilty and are pending sentencing. Gallardo-Navarra was acquitted, and Manzano was convicted after trial and is pending sentencing.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Fraud Section Trial Attorneys Jacob Foster and Rebecca Szucs prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Mexican Citizen Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Amilcar Hernandez-Zunun, age 27, and a citizen of Mexico, pled guilty today to illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Hernandez-Zunun was removed from the United States to Mexico on November 7, 2012. On February 21, 2018, an ICE Officer arrested him in Cohoes, New York. Hernandez-Zunun admitted that he returned to the United States without permission following the 2012 removal.
Hernandez-Zunun faces up to 2 years in prison when he is sentenced by Senior United States District Judge Lawrence E. Kahn on July 25 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.