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Tuesday 27 March 2018
Felon Charged with Heroin, Fentanyl, Cocaine and Crack Cocaine TraffickingRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count indictment named Nathaniel Smiley, Jr., 38, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on December 19, 2016, Smiley, Jr. distributed and possessed with intent to distribute a quantity of heroin. The indictment further alleges that on April 2, 2017, Smiley, Jr. possessed with intent to distribute quantities of fentanyl and cocaine, as well as 28 grams or more of crack cocaine.
The government has filed a written notice with the Court indicating that Smiley, Jr. has two previous convictions for drug dealing. As a result, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt, of the Violent Crimes Section of the U.S. Attorney’s Office, is prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration and Troopers from the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Finds Three Guilty in Fentanyl Distribution ConspiracyRead the Press Release
A federal jury in Nashville, Tennessee yesterday, returned guilty verdicts against three individuals on trial for their role in a deadly fentanyl distribution conspiracy, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. After an 8-day trial, the jury returned the guilty verdicts against Joedon Bradley, 32, of Nashville, Tennessee, Johnny Williams, 32, and Jonathan Barrett, 30, both of Murfreesboro, Tennessee. The jury found a fourth defendant, Jason Moss, not guilty on all counts.
“Nearly one third of drug overdose deaths in 2016 were the result of synthetic opioids, and drug traffickers can order them with a few clicks of a mouse," said Attorney General Sessions. "These drugs are so strong that a few grains of it can be fatal. Showing no regard for people's safety, the defendants mixed fentanyl into hundreds of pills, including some that killed at least one person and harmed countless others. I want to thank the DEA, the FDA, our fabulous state and local partners with the Tennessee Bureau of Investigation, Murfreesboro Police, and the Rutherford County Sheriff's Office, as well as Department of Justice attorneys Amanda Klopf and Brent Hannafan for their hard work on this case. Their efforts have led to justice being served."
“The jury’s verdicts in this case will now hold these individuals accountable for seeking to profit from the devastating opioid epidemic that continues to plague communities across our nation,” said U.S. Attorney Cochran. “Long prison sentences for these individuals will soon follow. I commend the jury for seriously shouldering their responsibility and I thank our law enforcement partners and our prosecutors for their untiring efforts in bringing justice on behalf of the people of this district”.
This case began on July 6, 2016, when law enforcement and medical personnel in the Murfreesboro, Tennessee area were overwhelmed by a series of overdoses caused by pills that appeared to be prescription Percocet pills. The pills were counterfeit and contained fentanyl, alprazolam, and acetaminophen, and had been pressed by Joedon Bradley and Eric Falkowksi.
According to testimony at trial, in May 2016, Eric Falkowski moved his pill operation to Madison, Tennessee, after law enforcement conducted a search of his home in Florida and seized his pill presses. Following the seizure, Falkowski obtained more fentanyl through the internet from China and purchased a new pill press through Amazon.com.
Beginning on July 4, 2016, Joedon Bradley and Eric Falkowski mixed together a combination of inert pill binder, alprazolam (“Xanax”), acetaminophen (sold as Tylenol), and fentanyl. Over the course of approximately 24 hours, Joedon Bradley helped press thousands of pills, using a pill mold that imprinted “A333” onto the ultimate product: a white, oblong pill that was almost identical to a prescription A333 Percocet pill.
On July 5, 2016, Johnny Williams obtained approximately 300 pills through the chain of distribution. Williams arranged to sell 150 of those pills for $1,050, to Jonathan Barrett through Jennifer Dogonski, a woman who acted as a broker.
According to evidence at trial, during the period of July 5-6, 2016, Jonathan Barrett, Johnny Williams and Joedon Bradley all distributed counterfeit Percocet pills containing fentanyl, with the markings “A333,” that were produced by Falkowski and Bradley. On July 6, 2016, Barrett learned that some individuals who had purchased the counterfeit pills had overdosed, and that one had possibly died, but he continued to distribute the counterfeit pills.
Law enforcement later searched a home in Madison, Tennessee, pursuant to a federal search warrant, and found, among other things, the pill press, multiple molds used for embedding text onto pills, including a mold for “A333,” a pill grinder, fentanyl, alprazolam and other drug manufacturing equipment. Testing later confirmed that the mold found at the house was the same mold used to make some of the pills seized from overdose victims during the investigation.
The jury found that the distribution of the counterfeit pills containing fentanyl caused one individual to die and seven other persons to experience serious bodily injuries.
The defendants face a mandatory minimum term of twenty years in prison, up to life and up to a $1,000,000.00 fine for each count charged when they are sentenced later this year.
Five other defendants indicted in this case have pleaded guilty and are awaiting sentencing. They include Eric Falkowski, 36, of Kissimmee, Florida; Preston Davis, 24, of Madison, Tennessee; Davi Valles, Jr., 26, and LaKrista Knowles, 26, both of Nashville, Tennessee; and Jennifer Dogonski, 34, of Murfreesboro, Tennessee.
This case was investigated by the Drug Enforcement Administration; the Tennessee Bureau of Investigation; the Murfreesboro Police Department; the Rutherford County Sherriff’s Office; and the Food and Drug Administration. The case was prosecuted by Assistant U.S. Attorneys Amanda J. Klopf and Brent A. Hannafan.
Everett Resident Who Sent Explosive Powder to more than a Dozen Washington DC Area Locations Charged in Federal CourtRead the Press Release
A 43-year-old Everett resident made his initial appearance in U.S. District Court today charged by criminal complaint with shipping of explosive materials, announced U.S. Attorney Annette L. Hayes. THANH CONG PHAN, was arrested Monday March 26, 2018 after a number of packages containing small amounts of black explosive powder were received at various mail-screening locations in the Washington DC area. The mailings were addressed to the White House, the FBI, and various government and military installations. The investigation to locate and isolate all of the packages is ongoing. No packages have exploded or caused any injuries.
PHAN became a suspect in the case when a U.S. Postal Service inspector traced the tracking information on one of the packages to the Mill Creek, Washington post office self-service kiosk. Surveillance photos from the time of the mailing appeared to show PHAN. Writings contained in the package were also similar to previous correspondence from PHAN to various government agencies. PHAN had been known to police previously because of the writings, and due to frequent contact with the 9-1-1 emergency dispatch system. PHAN was taken into custody without incident.
Shipping of explosive materials is punishable by up to ten years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI, the U.S. Postal Inspection Service and the U.S. Secret Service.
Easley Man Pleads Guilty to Child Porn ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that William F. Haynes, age 61, of Easley, pled guilty in federal court in Greenville, to possession of child pornography, a violation of Title 18, United States Code, Section 2252A. Senior United States District Judge Henry M. Herlong, Jr., of Greenville, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that law enforcement conducted a proactive investigation involving a file-sharing network used by individuals with an interest in child pornography. An undercover officer downloaded images that Haynes had available for sharing.
A federal search warrant was obtained and executed. Electronic devices were seized and law enforcement found over 8000 images of child pornography. Agents found images of children under the age of 18, and some prepubescent, engaged in the lascivious display of the genitals and sexual activity.
Ms. Drake stated the maximum penalty Haynes can receive is a fine of $250,000 and/or imprisonment for 20 years, supervised release of up to life, plus a special assessment of $100.
The case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Duquesne Man Charged with Illegally Possessing a Firearm and Distributing Heroin and Fentanyl AnaloguesRead the Press Release
PITTSBURGH, PA – A resident of Duquesne, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count indictment, returned on March 21 and unsealed today, named Marquis Brown, age 29, as the sole defendant.
According to the indictment, on or about October 3, 2017, Marquis Brown possessed with the intent to distribute quantities of heroin, para-fluoroisobutyryl fentanyl, and methoxyacetyl fentanyl. On the same date, Brown is also charged with possession of a firearm as a convicted felon, and possession of that firearm in furtherance of a drug trafficking crime. Federal law prohibits a felon from possessing a firearm.
For the drug charges, the law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Brown also faces a maximum total sentence on the firearms charges of not less than five years and up to life in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the indictment in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced in federal court in Boston yesterday for illegally reentering the United States after deportation.
Bolivar Santias Coste-Anias, 44, pleaded guilty today and was immediately sentenced by U.S. District Court Judge F. Dennis Saylor IV to time served and three years of supervised release. Coste-Anias will be subject to deportation proceedings. In January 2018, Coste-Anias was charged with one count of illegal reentry of a deported alien.
On Dec. 18, 2017, Coste-Anias was encountered by law enforcement in Boston and determined to be illegally present in the United States. Coste-Anias was previously deported in July 2008.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Federal Drug ConspiracyRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Worcester to his role in a heroin and cocaine conspiracy.
Ricardo Ortega Vasquez, 42, a Dominican national residing in New York City, pleaded guilty to one count of conspiring to distribute heroin and cocaine and to possess heroin and cocaine with the intent to distribute. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 29, 2018. Ortega Vasquez and four co-defendants, Vito Nuzzolilo and Kristin Little, both of Worcester; and Thomas Walker and Melissa Rock, both of Pemaquid, Maine, were indicted in July 2017.
According to court documents, Nuzzolilo ordered sizable quantities of heroin and cocaine from a New York-based source of supply, and Ortega Vasquez transported cocaine and heroin from New York City to Nuzzolilo on behalf of the New York-based source of supply. On May 7, 2017, law enforcement seized more than a quarter-kilogram of cocaine from Ortega Vasquez in Worcester, shortly after Ortega Vasquez had taken a bus from New York City to Worcester.
In November 2017, Danielle Lloyd, 44, of Worcester, pleaded guilty to her role in this conspiracy and admitted to facilitating the shipment of heroin and cocaine from New York to Worcester on May 7, 2017, and another on April 25, 2017. Lloyd was sentenced on March 21, 2018, to time-served.
Ortega Vasquez faces a sentence of no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, a fine of $5 million, and will be subject to deportation proceedings upon completion of his sentence. 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 J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Massachusetts Attorney General Maura Healey made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Darrell Lansing Hobbs Sentenced for Counterfeiting Conspiracy and Being a Felon in Possession of FirearmsRead the Press Release
GREENEVILLE, Tenn. – On March 27, 2018, Darrell Lansing Hobbs, a/k/a Darrell “Lance” Hobbs, 36, of Gray, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 120 months in prison for his role in a conspiracy to produce counterfeit obligations of the United States with intent to defraud the government, possession of stolen firearms and being a felon in possession of firearms. The court imposed the statutory maximums of 120 months on both gun charges and 60 months on the counterfeiting conspiracy charges. The sentences will run concurrently.
Hobbs pleaded guilty in October 2017 to the charges referenced above. Details of the conspiracy are included in his plea agreement on file with U.S. District Court. According to the plea agreement, from March 2017 through July 2017 Hobbs and three co-conspirators produced counterfeit Federal Reserve notes, which were used and attempted to be used to purchase various items from retail outlets and private individuals, including firearms, tools and at least one vehicle. Additionally, he and another co-conspirator sold firearms during May and June 2017 that were considered stolen since they had previously been purchased by them using counterfeit notes. As a convicted felon, it was illegal for Hobbs to possess firearms or ammunition at any time.
Hobbs along with his co-conspirators produced the counterfeit notes by taping real money to a flatbed scanner, scanning them, and then printing the front and back of the scanned notes to various types of parchment paper purchased from a local retail establishment. Investigators determined that Hobbs and co-conspirators produced between $95,000 and $150,000 in counterfeit Federal Reserve notes.
Others charged in this conspiracy included: Sean Bowman, 19, of Jonesborough, Tennessee; Robert William Guy, 19, of Kingsport, Tennessee; and Jason Massengill, 39, of Kingsport, Tennessee. Bowman pleaded guilty to the conspiracy and was sentenced to serve five years of probation after serving approximately five months in prison. Guy pleaded guilty to the conspiracy and awaits sentencing. Massengill also pleaded guilty to the conspiracy and was recently sentenced to serve 37 months in federal prison.
Investigative agencies participating in this case included the United States Secret Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Kingsport Police Department, Washington County Sheriff’s Office, Carter County Sheriff’s Office, Bluff City Police Department, Erwin Police Department and Elizabethton Police Department. Assistant U.S. Attorney TJ Harker represented the United States in court proceedings.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Cosby Resident Sentenced to Serve 79 Months in Federal Prison for Possession of Stolen FirearmsRead the Press Release
GREENEVILLE, Tenn. – On March 27, 2018, Rodney Shackleford, 26, of Cosby, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 79 months in federal prison for possessing stolen firearms. Shackleford pleaded guilty to a one-count information in October 2016.
Two accomplices of Shackleford, James Summers, 26, and Tiffany Gentry, 32, both of Newport Tennessee, were indicted in October 2016 and also charged with possession of stolen firearms. Additionally, Summers was charged with being a convicted felon in possession of a firearm and Gentry was charged with lying to the government. Summers previously pleaded guilty and was sentenced in November 2017 to serve 84 months in federal prison. Gentry also pleaded guilty and was sentenced to probation.
According to the plea agreement on file with U.S. District Court, in February 2016, Shackleford and Summers burglarized a residence in Newport, Tennessee, and stole, among other things, seven firearms. One of the firearms included a high-capacity magazine capable of holding 30 rounds of ammunition. The stolen firearms were loaded into a vehicle belonging to Gentry and driven back to the motel where they all resided. Summers and Gentry made an agreement to sell the firearms to a relative of Gentry and use the proceeds to purchase illegal narcotics.
Agencies involved in the investigation of this case included the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Cocke County Sheriff’s Department. Assistant U.S. Attorney TJ Harker represented the United States in Court proceedings.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Convicted child rapist from Cleveland man sentenced to 24 years in prison for child pornography crimesRead the Press Release
A convicted child rapist from Cleveland man was sentenced to more than 24 years in prison for child pornography crimes, said U.S. Attorney Justin E. Herdman.
Roland A. Wolfe, 53, was sentenced to 293 months in federal prison after pleading guilty in federal court to receiving and possessing visual depictions of minors engaged in sexually explicit conduct and having a computer that contained images of child sexual abuse.
“This case is a testament to the hard work of the Ohio Adult Parole Authority, ICAC and the Cleveland State police,” Herdman said. “They each worked to make our community safer.”
Wolfe was at Cleveland State University using the school’s free wi-fi to view images of child pornography and child sexual abuse on his personal laptop in 2016. He was arrested and charged with criminal trespassing and obstructing official business, according to court documents.
A subsequent investigation tracked him to a Cleveland homeless shelter, where Wolfe possessed a Dell laptop computer and five USB storage devices, each of which contained child pornography, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Michael A. Sullivan and Kathryn Andrachik following an investigation by the Ohio Adult Parole Authority, the Ohio Internet Crimes Against Children Task Force and the Cleveland State University Police Department.
Concord, N.C. Man Sentenced to 11 Years on Drug Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced today that Montorio Darell Allison, 38, of Concord, N.C. was sentenced to 132 months in prison on drug trafficking charges. U.S. District Judge Max O. Cogburn, Jr. also ordered Allison to serve 10 years under court supervision after he is released from prison.
U.S. Attorney Murray is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Gary J. Gacek with the Concord Police Department.
According to filed court documents and today’s sentencing hearing, Allison was a member of a drug trafficking organization (DTO) responsible for trafficking large quantities of cocaine from supply sources in Mexico and Texas, and utilized drug couriers to transport the drugs to Allison and other drug traffickers throughout North Carolina and elsewhere. Court records also show that between March and September 2015, a courier for the DTO delivered five kilograms of cocaine to Hillsborough, N.C.; 15 kilograms of cocaine to Fayetteville, N.C.; and one kilogram of cocaine to Concord, N.C. After distributing the cocaine, local DTO members returned large sums of bulk currency generated from drug sales.
According to court records, over the course of the investigation into Allison, law enforcement seized cocaine, heroin, other narcotics, 13 empty kilogram wrappers, other drug paraphernalia, and cash. Allison pleaded guilty in June 2017 to one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
Allison is in federal custody and will be transferred to the custody of Federal Bureau of Prisons to begin serving his sentence. All federal sentences are served without the possibility of parole.
The DEA led the investigation. Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Compounding Pharmacy Owner Sentenced to Five Years in Prison for $10.5 Million Health Care FraudRead the Press Release
BIRMINGHAM – A federal judge today sentenced the owner of a Decatur compounding pharmacy to five years in prison for conspiring to defraud a federal health insurance program out of more than $10 million. U.S. Attorney Jay E. Town, Food and Drug Administration, Office of Criminal Investigation, Miami Field Office, Special Agent in Charge Justin D. Green and Defense Criminal Investigative Service Special Agent in Charge John F. Khin announced the sentence.
U.S. District Judge R. David Proctor sentenced JOHN CHRISTOPHER LEMLEY, 51, of Decatur, for the health care fraud conspiracy and ordered him to forfeit nearly $1 million as proceeds of the crime. Most of that amount – $918,234 – already has been seized from bank accounts held by Lemley or his businesses, along with a 2015 Lexus Gx-460 Premium bought with criminal proceeds, according to court documents. The judge also ordered Lemley to pay $918,234 in restitution to the federal military health insurance program. Lemley pleaded guilty to the conspiracy charge in November. He must report to prison June 20.
“Every dollar stolen from TRICARE is a dollar that weakens our overall military posture and makes healthcare for our troops even more embattled,” Town said. “Whether $10 million or $10,000, those who intend to defraud the federal government, especially our DOD components, will be joining Mr. Lemley soon.”
“This sentencing, resulting from a complex and widespread investigation by DCIS and other law enforcement partners, is a strong warning to anyone who believes they can get away with conspiring and scheming to fleece the Defense Department's TRICARE system,” Khin said. “Fraud and corruption in our health care programs, especially involving deceptive practices with prescription medications, is far from a ‘victimless’ crime. This defendant selfishly put greed and personal gain before the safety and well-being of our military members, their families, and retirees, who deserve proper medications and the best care available.”
“U.S. consumers rely on the FDA to ensure they receive drugs which are safe, effective, and properly labeled,” Green said. “We remain fully committed to pursuing those individuals who endanger the public health by distributing misbranded products.”
Lemley owned a Decatur pharmacy that operated as Southern Compounding. He also owned Apotheca Supply, which was licensed to relabel and repackage pharmaceutical drugs. Apotheca was located in a suite adjoining Southern Compounding on U.S. Highway 31 South. Lemley also had a 20 percent membership interest in Medworx Sunflower LLC, an affiliate of Medworx Compounding, a pharmacy in Ridgeland, Miss., according to the charges against Lemley and the government’s sentencing memorandum.
Between February 2015 to January 2016, Lemley conspired with others at Medworx Sunflower and Southern Compounding to defraud TRICARE, a U.S. Department of Defense health care program, as well as third-party prescription-drug program administrator Express Scripts Incorporated, according to the court documents. Southern Compounding submitted prescription reimbursement claims to TRICARE as part of ESI’s pharmacy network.
As part of the conspiracy, Lemley conducted the fraud by various means that included improperly contracting with Medworx Compounding to refer prescriptions to Southern Compounding. He also paid kickbacks to independent sales representatives as incentive to refer TRICARE prescriptions, sold misbranded over-the-counter medications as prescription drugs, and failed to reverse claims on prescriptions he knew were forged, according to court documents.
Although ESI’s regulations prohibited Southern Compounding from subcontracting any of its work, Southern entered a management agreement with Medworx in early 2015 whereby Medworx referred prescriptions to Southern Compounding. Southern filled the prescriptions, billed third-party administrators for them and sent almost all the payments received to Medworx. Medworx then returned a portion of those payments directly to Lemley. The amount returned totaled $918,234, representing a distribution for Lemley’s 20 percent membership interest in the Medworx affiliate, Medworx Sunflower.
Southern Compounding’s billings to TRICARE soared in the two months after Southern entered its agreement with Medworx, according to court documents. In the 13 months prior to the agreement, TRICARE paid claims of about $215,561 to Southern. In the two months following the February 2015 agreement, TRICARE, through ESI, paid about $10.5 million in claims to Southern. More than 90 percent of that was profit.
In accordance with Southern’s management agreement with Medworx, Lemley transferred most of the money – about $10.2 million – to Medworx. Most of the transferred money was to fund kickbacks to the independent sales representatives, according court documents.
FDA-OCI and DCIS investigated the case, which Assistant U.S. Attorney Chinelo Dike-Minor prosecuted.
Clairton Woman is Eighth Defendant in Drug Trafficking Case to Plead GuiltyRead the Press Release
PITTSBURGH, PA. - A resident of Clairton, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Jean Hull, 52, pleaded guilty to one count of conspiring, with 20 other individuals, to distribute narcotics between March and August of 2017. In connection with the guilty plea, the court was advised that Hull regularly purchased heroin from her co-defendant, Skylar Carter, for both personal use and further distribution and was responsible for the distribution of between 20 and 40 grams of heroin. Hull is the eighth of 21 defendants charged in the case to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for August 30, 2018, at 10:30 a.m. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Hull remains on bond pending the sentencing hearing.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
Chicago Man Sentenced to 70 Months in PrisonRead the Press Release
HAMMOND- Daniel Oliva, 30, of Chicago, Illinois, was sentenced before Hammond District Court Judge Joseph S. Van Bokkelen on his plea of distribution of cocaine and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Thomas L. Kirsch II.
Oliva was sentenced to 70 months imprisonment and 3 years of supervised release upon completion of his prison term.
According to documents in this case, law enforcement conducted a total of four controlled buys of cocaine with Oliva from September of 2016 to February of 2017. On February 13, 2017, law enforcement arrested Oliva after he attempted to sell four ounces of cocaine from within his vehicle. A search of the vehicle revealed he also possessed a semiautomatic pistol during the attempted drug sale.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States. Attorney Thomas McGrath.
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Buffalo Man Pleads Guilty to Selling Cocaine Near A Buffalo SchoolRead 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 Stevie Alejandro, 31, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribution of, 500 grams or more of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that the defendant operated the Barberians Barber Shop at 1132 East Lovejoy Street, which is located directly across from Buffalo Public School #43, the Lovejoy Discovery School. Between May 2017 and October 18, 2017, the defendant utilized the barber shop to facilitate a drug distribution network. Alejandro conspired with co-defendants Aaron Hill, Cleophus Dentmond, a/k/a Face, Gilbert Guzman, Catherine Ramos, and others, to distribute cocaine in the Lovejoy District.
During the conspiracy, Alejandro conducted negotiations with an undercover law enforcement officer regarding the sale, cost, amount, and delivery of cocaine. Then, the defendant, or one of his co-conspirators, would conduct the drug transaction with the undercover officer. Co-conspirators who conducted any transactions returned the proceeds to the defendant. A total of 14 cocaine sales took place with the undercover officer.
Charges are pending against defendants Aaron Hill, Cleophus Dentmond, Gilbert Guzman, and Catherine Ramos. 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.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Cheektowaga Police Department, under the direction of Chief David Zak; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard
Sentencing is scheduled for July 13, 2018 at 12:30 p.m. before Judge Arcara.
Boston Man Sentenced for Two Bank RobberiesRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for robbing a branch of the RTN Federal Credit Union in Brookline and a branch of the Mansfield Bank in West Bridgewater in November 2016.
Stephen D. Williams, 56, was sentenced by U.S. Senior District Court Judge Mark. L. Wolf to five years in prison, three years of supervised release, and ordered to pay $2287 in restitution. In December 2017, Williams pleaded guilty to two counts of bank robbery.
On Nov. 15, 2016, two individuals, one later identified as Williams, and the other later identified as Joseph Morris, entered a branch of the RTN Federal Credit Union in Brookline. Williams approached a teller and demanded cash. The teller handed Williams cash from her drawer and Williams and Morris exited the bank and fled the area in a dark-colored Volkswagen.
On Nov. 22, 2016, an individual, later identified as Williams, entered a branch of the Mansfield Bank in West Bridgewater. Williams gestured that he had a firearm and demanded the tellers give him the bank’s money. The teller handed Williams cash, and Williams fled the area again in a dark-colored Volkswagen. Bank surveillance cameras recorded images of Williams during the robbery.
On Nov. 23, 2016, law enforcement officers familiar with both Williams and Morris located the dark-colored Volkswagen and arrested the two men at an apartment complex in Brockton.
Morris was charged in state court with the robbery of the RTN Federal Credit Union in Brookline and was sentenced to eight-to-10 years in jail.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; U.S. Marshal John Gibbons of the District of Massachusetts; Norfolk County District Attorney Michael Morrissey; West Bridgewater Police Chief Victor R. Flaherty Jr.; Brookline Acting Police Chief Mark P. Morgan; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Berkeley County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joshua Neal Krieger, of Hedgesville, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Krieger, age 29, pled guilty to one count of “Unlawful Transfer of a Firearm.” He admitted to selling a machine gun conversion part designed to convert a weapon into a machine gun for $2900 in May 2017 in Berkeley County.
Krieger faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul T. Camilletti is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bank Employee Arrested and Charged with Bank EmbezzlementRead the Press Release
BOSTON – Jessica Vargas, 34, of Athol, was arrested today and charged in federal court in Worcester with one count of bank embezzlement.
According to the charging documents, Vargas was an employee of a federally-insured bank when she embezzled more than $100,000 by making unauthorized cash withdrawals from customer accounts. Bank documentation shows that Vargas made unauthorized withdrawals from the accounts of various customers, including more than $53,000 from the account of an 84-year-old bank customer and almost $13,000 from the account of an 88-year-old customer.
Vargas faces a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bangor Man Pleads Guilty to Marijuana ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Jeremy Duguay, 34, of Bangor, pleaded guilty today in U.S. District Court to conspiring to manufacture, distribute, and possess with intent to distribute marijuana.
According to court records, during a period between October 2010 and August 2016, the defendant conspired with others to illegally manufacture and distribute marijuana. The defendant was paid to assist in the production of marijuana at a large, sophisticated indoor growing facility in Frankfort, Maine. In May 2016, law enforcement officers executed a federal search warrant at the facility and seized about 400 marijuana plants, 295 marijuana root balls, and paraphernalia used to manufacture and process marijuana. The defendant had a firearm when agents arrived at the facility. According to the search warrant affidavit, the location of the facility was not reported to the Maine Department of Health and Human Services.
The defendant faces up to 20 years in prison, between three years and life of supervised release, and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Drug Enforcement Administration.
Baltimore BGF Member Sentenced to 31 and A Half Years in Prison for 2013 Murder of WitnessRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge James K. Bredar sentenced Wesley Jamal Brown, a/k/a “Wes,” age 25, of Baltimore, Maryland, to 31 and a half years in prison, followed by five years of supervised released for conspiring to participate in a racketeering enterprise known as the Black Guerilla Family’s Greenmount Avenue Regime. Brown had admitted that on May 2, 2013, he murdered a witness to prevent him from testifying against a fellow BGF member in a pending state case.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr., of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Darryl DeSousa; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Brown was a member of the BGF Greenmount Regime, formerly known as the Young Guerilla Family, or YGF. Between 2005 and September 2017, Brown agreed with other BGF members to engage in crimes to further the interest of the gang, including drug distribution, murder, robbery, witness tampering, and witness retaliation. Brown admitted that he personally engaged in drug trafficking and murder in furtherance of BGF.
Specifically, Brown admitted that on or about April 26, 2013, he possessed with intent to distribute cocaine and heroin. Brown further admitted that on or about June 20, 2013, he possessed 51 grams of heroin and a quantity of cocaine that he planned to sell.
Brown further admitted that on or about May 2, 2013, in the 600 block of Cokesbury Avenue, he shot and killed Moses Malone with a .22 caliber handgun. In the weeks before his death, Malone had been the victim of a robbery and shooting committed by Norman Handy, Brown’s half-brother and fellow member of the BGF Greenmount Regime. On April 19, 2013, Malone identified Handy as the person who robbed and shot him during an interview with Baltimore Police officers. Brown admitted that he shot and killed Malone to prevent him from testifying against Handy in the pending state case.
According to his plea agreement, Brown was a member of the BGF Greenmount Regime, formerly known as the Young Guerilla Family, or YGF. Between 2005 and September 2017, Brown agreed with other BGF members to engage in crimes to further the interests of the gang, including drug distribution, murder, robbery, witness tampering, and witness retaliation. Brown admitted that he personally engaged in drug trafficking and murder in furtherance of BGF.
Brown admitted that on or about May 12, 2013, he exchanged text messages with a BGF associate, in which he agreed to sell the .22 caliber handgun that he had used to kill Malone for $250.
Acting United States Attorney Schenning commended ATF Baltimore, FBI Baltimore, the Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Peter J. Martinez and Christina A. Hoffman, who prosecuted the case.
Andover Man Sentenced on Meth ChargeRead 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 Bradley J. Hollenbeck, 37, of Andover, NY, who was convicted of conspiracy to manufacture, possess with intent to distribute, and to distribute, 50 grams or more of a mixture and substance containing methamphetamine, was sentenced to 110 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that between January 2011 and late 2014, the defendant engaged in the practice of “smurfing,” buying small quantities of pseudoephedrine, at local pharmacies. Hollenbeck did so to get around restrictions on purchasing products containing pseudoephedrine. This is the most important chemical necessary in the process of manufacturing methamphetamine.
The conviction is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major Mary Clark, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie J. Patterson, New York Division, the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb, the Wellsville Police Department, under the direction of Chief Timothy O’Grady, U.S. Border Patrol, under the direction of Patrol Agent in Charge Steven Oldman, and the New York State Department of Environmental Conservation, under the direction of Captain John Burke.
Monday 26 March 2018
XTO Energy Inc. to Make System Upgrades and Undertake Projects to Reduce Air Pollution on the Fort Berthold Indian Reservation in North DakotaRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Houston-based XTO Energy Inc., resolving alleged Clean Air Act violations stemming from the company’s oil and gas production operations on the Fort Berthold Indian Reservation in North Dakota.
The settlement resolves claims that XTO failed to adequately design, operate, and maintain vapor control systems on its storage tanks at oil and natural gas well pads, resulting in emissions of volatile organic compounds (VOCs). VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
As part of the settlement, XTO will ensure the adequacy of its vapor control systems and improve its operation and maintenance practices, monitoring, and inspections. These improvements to XTO’s operations on the Fort Berthold Indian Reservation will significantly reduce VOC emissions, including through monthly use of infrared cameras during inspections to better detect and respond to air emissions. In addition, EPA estimates that XTO will spend at least $450,000 to fund an environmental mitigation project. XTO will also pay a $320,000 civil penalty.
EPA estimates that XTO’s system upgrades will annually reduce the emission of at least 2,200 tons of VOCs. Improved operation and maintenance will result in additional emissions reductions. Today’s settlement resolves alleged violations at all 20 of XTO’s well pads on the Fort Berthold Indian Reservation.
“This settlement will reduce harmful air pollutants, benefiting the health of residents of the Fort Berthold Indian Reservation, as well as those living in surrounding communities,” said Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the Department of Justice. “This case further demonstrates the shared commitment of the Justice Department and EPA to enforce the nation’s environmental laws, including in Indian Country.”
“This settlement with XTO Energy will reduce emissions from its production facilities on the Fort Berthold Reservation and will benefit tribal communities and regional air quality,” said EPA Regional Administrator Doug Benevento. “EPA will continue to work with energy producers and our state and tribal partners to ensure that oil and natural gas extraction occurs in accordance with the laws that protect our air and water resources.”
As part of the settlement, XTO has agreed to evaluate the design and capacity of its vapor control systems, modify those vapor control systems as necessary to ensure that that they are adequately designed and sized to collect and convey emissions to a control device, implement an enhanced inspection and maintenance program, and undertake monthly infrared camera inspections to identify any emissions and take prompt corrective action to address those emissions.
XTO will also conduct an environmental mitigation project to install and operate auto-gauging equipment on storage tanks to reduce how often thief hatches are opened. This project is expected to significantly reduce VOC emissions.
XTO’s oil and natural gas production operations in North Dakota use storage tanks to store produced oil and produced water. The oil and water are stored at separate well pads prior to transport by pipeline or truck. Multiple storage tanks are typically present at a well pad and are frequently controlled by the same vapor control system.
The case arose from EPA’s inspections and information requests in 2015 that found violations related to VOC emissions from produced oil and produced water storage tanks, due to undersized vapor control systems and inadequate operation and maintenance.
This settlement is part of EPA’s national enforcement initiative to reduce public health and environmental impacts from energy extraction activities. For more information about EPA’s enforcement initiative, click here: http://www2.epa.gov/enforcement/national-enforcement-initiative-ensuring-energy-extraction-activities-comply.
The proposed consent decree, lodged in the U.S. District Court for the District of North Dakota, is subject to a 30-day public comment period and approval by the federal court. Information about submitting a public comment is available at: www.justice.gov/enrd/consent-decrees.
Walterboro Man Sentenced to 48 Months in Federal Prison on Firearms ChargesRead the Press Release
Charleston, South Carolina---- United States Attorney Beth Drake stated today that Dominique Raheem Manigo, a/k/a “Doma”, age 19, of Walterboro, was sentenced for felon in possession of firearms and ammunition, in violation of Title 18, United States Code, Section 922(g)(1). United States District Judge David C. Norton sentenced Manigo to 48 months in federal prison with three years of supervised release to follow.
The evidence presented at the guilty plea hearing established that on April 4, 2017, Manigo initiated a live video stream on a social network platform that showed him sitting in his car with two other individuals packaging marijuana for distribution and possessing a shotgun and an AR-15 style firearm. As a result of this video, federal agents obtained a search warrant for Manigo’s residence, which was executed on April 19, 2017. During the search inside Manigo’s bedroom, agents located a pistol magazine that contained fifteen rounds of 9mm ammunition, a box containing thirteen 12-gauge shotgun shells, a box containing four rounds of .45 colt ammunition and one round of .223 caliber ammunition. Inside a shed on the property, agents located a green and black 12-gauge shotgun that was loaded with six 12-gauge shotgun shells, a Smith & Wesson .556 caliber rifle that contained sixty-seven rounds of .223 caliber ammunition and a bag containing twenty-one rounds of various ammunition. The .223 ammunition in the rifle was loaded into two large capacity magazines that were taped together.
Manigo has prior convictions for burglary and failure to stop for a blue light that prohibit him from possessing firearms and ammunition.
This case was investigated by Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Officers with the Colleton County Sheriff’s Office. The case was prosecuted pursuant to 14th Circuit Solicitor Duffie Stone’s longstanding partnership with the United States Attorney’s Office to target career criminals in Beaufort, Jasper, Hampton, Colleton, and Allendale Counties in federal court. Special Assistant United States Attorney Carra Henderson of the 14th Circuit Solicitor’s Office prosecuted the case.
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Unprecedented Stalking Conviction Sends Former Richmond Resident to PrisonRead the Press Release
HOUSTON – A 45-year-old former Richmond man has been given the statutory maximum sentence for systematically torturing a former girlfriend by sending horrific images and threatening email messages, announced U.S. Attorney Ryan K. Patrick. The jury returned its verdict Oct. 27, 2017, against Heriberto Latigo following five days of trial and less than two hours of deliberations.
This is the first case tried in the Southern District of Texas in which a defendant used the internet to cause substantial emotional distress. In the last 10 years, less than 100 defendants have been convicted using this federal stalking statute.
Today, U.S. District Judge Kenneth Hoyt sentenced Latigo to 60 months in prison. Additional information was also presented today, including a letter the victim had written which detailed the torment she endured and how Latigo’s actions have changed her life forever, stating that no matter how hard she has tried, she has not been able to overcome what he did to her. “There was not a day that I didn’t feel scared,” she said.
Latigo was further ordered to serve three years on supervised release following completion of his prison term during which time the court ordered him to get mental health treatment. Judge Hoyt also noted that the maximum sentence imposed may not be sufficient for the crime and stated the possibility that Latigo might just be “mean and evil.”
Latigo began a romantic relationship with the victim in 2013. As it progressed, Latigo’s conduct became controlling and demanding to include forcing her to send him naked images of her. The relationship eventually devolved into physical altercations to include an alleged rape. The victim testified that she was and is afraid of Latigo.
In June 2014, she discovered she was pregnant. She testified that Latigo was so controlling and crazy during this time that she decided to end the pregnancy. Latigo found out and created a Facebook page titled “Magdelana Aborted” where he pretended to be the aborted fetus, sent the link to her and said “Your abortion video will now be posted you whore.” She was so upset that she overdosed on tranquilizers in an attempt to take her own life.
From March 2014 to April 2015, Latigo used threats and blackmail tactics to force the victim to do things against her will. Latigo had used the naked images she had previously sent during their relationship to compel her to do a variety of things, including complying with his sexual demands. If she refused, he would post the images online until she acquiesced. On many occasions, she had to contact Google to have naked pictures of her removed. Latigo also sent the images to her sister, her sister’s boss and male co-workers in an effort to control and harass her.
Latigo used his own email address to send messages to the woman in which he berated her and demanded she do things. He even created a Gmail account and Google+ page with the victim’s name and used a naked photograph of her as the profile picture.
Latigo’s actions caused the victim to move. She even changed jobs. She closed her Facebook account and got offline. However, he ultimately found her again, went to her new job and continued to harass her.
The jury also heard from another witness that placed Latigo at the victim’s daughter’s school indicating he was physically stalking her. A computer forensic expert also testified that Latigo accessed multiple Facebook accounts and the victim’s email from his own computer and attempted to cover his trail in the process.
Latigo represented himself during the trial and attempted to convince the jury that this entire case was about the victim wanting to hurt him. He claimed she created the accounts used to harass her. However, she actually broke down in tears on the stand when she learned her naked images had been sent in response to a Craigslist ad she supposedly created. No evidence was presented to the jury that demonstrated the victim ever had control of either of these accounts. In fact, Latigo’s owne xpert witness testified that the email address at issue was created on one of Latigo’s computers seized by the FBI during a search of his home.
The jury ultimately did not believe Latigo’s claims and found he intentionally harassed the victim and caused her substantial emotional distress. He was convicted as charged.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorneys Sherri Zack and Steve Schammel are prosecuting the case.
United States Files Suit Against Reading-Area Physician for Opioid PrescribingRead the Press Release
The United States filed a civil lawsuit today against Stephen Latman, a physician in the Reading, Pennsylvania area, alleging that he wrote improper opioid prescriptions for several of his patients, announced United States Attorney Louis D. Lappen. According to the complaint, Latman issued 343 opioid prescriptions to three of his patients that lacked a legitimate medical purpose and were issued outside of the usual course of his professional practice.
The United States and Dr. Latman have also entered into a Stipulated Order and Consent Judgment, subject to the Court’s approval that would resolve the matter without litigation. If approved by the Court, the Judgment would require Latman to pay $400,000 to the United States, prohibit Latman from ever seeking a future DEA controlled substance license, require Latman to voluntarily relinquish his license to practice medicine, and require Latman to execute an agreement with the U.S. Department of Health and Human Services to be excluded from Medicare, Medicaid, and all other Federal health care programs.
The complaint filed by the United States alleges that Latman, for these three patients, prescribed approximately 123,660 opioid pills from 2014 through 2016. Those prescriptions were often written for oxycodone 30mg, one of the most heavily abused and most lucrative oxycodone prescriptions on the black market. An expert review of these prescriptions indicated that the prescriptions were dangerous, inappropriate, and susceptible to illicit use.
“The opioid crisis in our communities has had a devastating impact,” said United States Attorney Louis D. Lappen. “Physicians have the vital responsibility to write prescriptions that are in the best interest of the patient, particularly for opioids. Our office will continue to hold physicians accountable when they violate that responsibility.”
The United States filed this lawsuit under the Controlled Substances Act. The complaint contains allegations only, and not findings of liability.
The investigation was conducted by the Drug Enforcement Administration and assisted by the Department of Health and Human Services Office of Inspector General. Assistant United States Attorney Anthony D. Scicchitano handled the matter.
U.S. Reaches Agreement with Healthcare Provider on Communication with Deaf IndividualsRead the Press Release
United States Attorney Louis D. Lappen today announced that the Government has reached a settlement with Allergy & Asthma Specialists, P.C. (“A&A”) to resolve alleged violations of title III of the Americans with Disabilities Act (“ADA”) for failure to provide a deaf patient with effective communication.
Under title III of the ADA, no person who owns, leases (or leases to), or operates a place of public accommodation may discriminate against an individual on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation. Discrimination includes failing to take such steps as necessary to ensure that no individual with a disability is excluded, denied services, segregated, or otherwise treated differently than any other individual because of the absence of auxiliary aids and services.
According to the United States= allegations, in 2017, a deaf patient had difficulty effectively communicating with A&A staff during a visit to an A&A facility in Jenkintown, Pennsylvania. Although A&A provided an interpreter who could speak some sign language, the interpreter was not a certified sign language interpreter, and the patient had difficulty understanding the interpreter.
As a result of the United States’ investigation and the full cooperation of A&A, A&A has agreed to implement an effective communication policy and to annually train its staff regarding that policy.
This case was investigated by Assistant United States Attorney Jacqueline C. Romero.
U.S. Attorney’s Office and Rensselaer County Unite to Confront the Opiate EpidemicRead the Press Release
ALBANY, NEW YORK – The United States Attorney’s Office is partnering with the Rensselaer County Department of Health, Rensselaer County Sheriff’s Office, Rensselaer County District Attorney’s Office, Rensselaer County Heroin Coalition, the New York State Police and school districts throughout Rensselaer County to highlight the deadly effects of the opiate epidemic and to bring together all of the resources necessary to address it, announced United States Attorney Grant C. Jaquith. A range of events, including school assemblies and evening community events, continue throughout March to unite private citizens, service providers, and law enforcement agencies to ‘get out in front’ of this deadly epidemic.
“We are experiencing the deadliest drug epidemic in our nation’s history,” said United States Attorney Jaquith. “Drug overdoses are now the leading cause of death among Americans under 50. About two-thirds of the deaths are from opioids overdoses involving prescription painkillers, heroin, and fentanyl. Aggressive enforcement is important to punish the poison peddlers who play Russian roulette with the lives of their customers and the rogue doctors who prescribe pills for illicit profits, but prevention is the best protection. We are pleased to partner with the Rensselaer County Department of Health, Rensselaer County Sheriff’s Office, Rensselaer County District Attorney’s Office, Rensselaer County Heroin Coalition, and school districts throughout Rensselaer County, the New York State Police, the Drug Enforcement Administration, and the Federal Bureau of Investigation to increase public awareness, resilience and reduce the tragedies regularly striking families in our region.”
“There have been record numbers of Rensselaer County families affected by the opioid epidemic, with too many deaths, overdoses, and damaging, life-altering addictions. Rensselaer County appreciates the help and support of the U.S. Attorney's Office for the Northern District of New York to fight this deadly problem and help save lives,” said County Executive Steve McLaughlin.
“The Rensselaer County Sheriff’s Office is pleased to be part of this very important effort. The more we can do to bring awareness to this issue and educate the public the better,” said Sheriff Patrick Russo, Rensselaer County Sheriff and Co-Chair of the Rensselaer County Heroin Coalition.
“As the Public Health Director of Rensselaer County and Co-Chair of the Rensselaer County Heroin Coalition, we work daily to combat the opioid epidemic in our county. This campaign brings hope and awareness to the students of our school districts and within our surrounding communities,” said Mary Fran Wachunas.
All of the events include a viewing of Chasing the Dragon: The Life of An Opiate Addict (https://www.fbi.gov/news/stories/raising-awareness-of-opioid-addiction ) followed by an Interactive Community Response Panel to discuss the epidemic impact locally. The range of panelists include parents whose children are addicts, a young person who is addicted and in treatment, school counselors, treatment counselors, first responders, Sheriff’s Deputies and New York State Troopers, an Assistant United States Attorney, the District Attorney, a pharmacist, a funeral home, a recovery coach, people in recovery, and students who have made the commitment to be alcohol and drug free. In a facilitated discussion, the panelists illustrate the progression of use/abuse/addiction, the impact on individuals, families, schools, agencies and demonstrate how systems respond. All are welcome at the evening community-wide events.
UNITED TO FIGHT IT – Chasing the Dragon events
Brunswick Central School District - March 20, 2018
Daytime assembly for junior & senior high school students
Hoosic Valley School District - March 21, 2018
Daytime assembly for junior & senior high school students
Hoosic Valley & Brunswick School Districts - March 21, 2018
Combined evening joint community-wide event
Maple Hill Junior & Senior High School - March 27, 2018
Evening community-wide event
Averill Park School District - April 6, 2018
Evening community meeting
Catholic Central School - May 1, 2018
Evening community-wide event
City School District of Troy - May 17, 2018
Daytime assembly for junior & senior high school students
Evening community-wide event
Rensselaer City & E. Greenbush School Districts
Daytime school assemblies for junior & senior high school students
Combined evening joint community-wide event
May 2018 dates to be announced
Other school districts may also deliver assemblies and community-wide events. Go to the www.rensco.com website for updates or call the Rensselaer County Health Department at 518-270-2626.
Two Officers with Gardena Police Department Named in Federal Indictment that Alleges They Operated Illegal Firearms BusinessesRead the Press Release
LOS ANGELES – Two members of the Gardena Police Department were charged by a federal grand jury with participating in a scheme in which they purchased “off-roster” firearms not available to the general public and illegally operated businesses that resold the weapons.
The two police officers were charged in a five-count indictment that was unsealed Friday afternoon. The indictment alleges that the officers conspired with each other and that each engaged in the business of dealing in firearms without a license.
The two officers are collectively charged with illegally selling approximately 100 firearms, mostly .38-caliber pistols. The two defendants are:
Carlos Miguel Fernandez, 42, of Norwalk, whose Instagram handle was “the38superman,” and
Edward Yasushiro Arao, 47, of Eastvale.
Both defendants have been summoned to appear on April 3 for arraignments in United States District Court.
According to the indictment, Fernandez advertised firearms for sale – guns being offered by both himself, Arao and others – on his Instagram account. The vast majority of posts on the account contained images of firearms. Arao, who was the CEO of Ronin Tactical Group, which was a federal firearms licensee (FFL), similarly advertised guns on the company’s Instagram account. Additionally, both defendants marketed firearms at gun shows. Neither defendant was licensed individually to engage in the business of dealing in firearms when the illegal gun sales alleged in the indictment took place.
Fernandez allegedly purchased “off-roster” firearms – mostly Colt .38-caliber handguns that were not available to the general public, but which could be legally purchased by law enforcement officers – and sold dozens of these weapons through private-party transfers. Similarly, Arao obtained “off-roster” weapons by transferring them to himself individually from the inventory of Ronin Tactical Group. Through messages on Instagram and other means, Fernandez and Arao negotiated the prices and terms of firearm sales, and they accepted payment for the guns once they were delivered, according to the indictment.
The indictment in this case was unsealed Friday afternoon after two other defendants in the case were arraigned in federal court on charges that they engaged in a “straw purchase” transaction involving a gun sold through Fernandez. The indictment alleges that Oscar Morales Camacho Sr., 63, of Salinas, falsely certified that he was purchasing a firearm for himself in a 2017 private-party transfer, when he in fact was buying the gun for his son, Oscar Maravilla Camacho Jr., 34, also of Salinas. Camacho Jr. has a prior criminal conviction that prohibits him from possessing firearms. The indictment alleges that Fernandez and both Camachos “well knew [that] defendant Camacho Sr. was not the actual buyer of the firearm.”
At their arraignments last week, both Camachos entered not guilty pleas and were ordered to stand trial on May 31.
The indictment alleges a second “straw purchaser” transaction in which a South Los Angeles woman allegedly purchased two firearms for her boyfriend. As in the other straw purchase alleged in the indictment, Bianca Elizabeth Ibarria, 23, and Adalberto deJesus Vasquez Pelayo Jr., 24, also of South Los Angeles, are charged with making a false statement in a federal firearm licensee’s records during purchase of a firearm. Ibarria and Pelayo also have been directed to appear in federal court for arraignments on April 3.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Each count in the indictment carries a statutory maximum penalty of five years in federal prison. Therefore, if convicted of all charges, Fernandez would face up to 15 years in federal prison, and Arao could be sentenced to as much as 10 years.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Gardena Police Department provided its full cooperation during the investigation.
The prosecution is being handled by Assistant United States Attorney Katherine A. Rykken of the Major Frauds Section.
Three More Defendants Plead Guilty for Roles in Federal Drug ConspiracyRead the Press Release
Defendants are latest to plead guilty out of nearly two dozen indicted after long-term narcotics investigation
CHARLESTON, W.Va. -- Three men pled guilty today for their roles in a drug trafficking conspiracy, announced United States Attorney Mike Stuart. Jonathan Brockman, 34, of Fayette County, pled guilty to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of fentanyl, a quantity of oxycodone, and a quantity of marijuana for remuneration. David Shaun Coleman, 47, of Fayette County, entered his guilty plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, and a quantity of oxycodone. Rashaun Carter, aka “Show,” 40, of Raleigh County, pled guilty to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, more than 100 grams of heroin, and a quantity of cocaine, and a quantity of fentanyl. Brockman, Coleman, and Carter are three of 23 defendants indicted in June 2017 after a comprehensive investigation of drug trafficking in Southern West Virginia. U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies, led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service also provided assistance throughout the investigation.
“Getting these poison peddlers - Brockman, Coleman, and Carter - off the streets will, pure and simple, save lives. They were pedaling a smorgasbord of opiates – including one of the most dangerous – fentanyl,” said United States Attorney Mike Stuart. “These drug thugs and others like them put kids, families and first responders in jeopardy,” continued Stuart. “We will lock them up every chance we get.”
Jonathan Brockman, admitted that between May 2017 and June 28, 2017, he took part in a drug trafficking conspiracy in Fayette County with multiple participants involving the distribution of heroin, oxycodone, fentanyl, and marijuana. Brockman admitted that he worked with another member of the drug trafficking organization to purchase a kilogram of heroin for the purpose of distributing heroin in and around Fayette County. Brockman further admitted to distributing oxycodone tablets in and around Fayette County. Brockman also admitted that on June 28, law enforcement officers executed a search warrant at his residence and on other property. During the search police officers recovered approximately 14 kilograms of marijuana at Brockman’s residence, 200 oxycodone tablets, and 75 tablets that contained a mixture of heroin, fentanyl, and oxycodone. Brockman intended to distribute all of the controlled substances recovered. Police officers also recovered over $182,000 in cash, 11 firearms, and a boat and trailer that Brockman admitted had been purchased with drug proceeds. Brockman agreed to forfeit the cash and boat as part of his plea agreement.
David Shaun Coleman admitted that between May 2017 and June 28, 2017, he too participated in a drug trafficking organization that distributed more than 100 grams of heroin and oxycodone, in and around Fayette County. Coleman admitted that during this time period, he received approximately 215 grams of heroin and approximately 700 oxycodone 30 mg tablets from other members of the drug trafficking organization that he intended to distribute in the southern district of West Virginia.
Rashaun Carter, aka “Show,” admitted that between August 2016 and June 28, 2017, he assisted Velarian Carter, James Rodney Staples, and others in operating a drug trafficking organization that distributed more than 28 grams of cocaine base, or “crack,” more than 100 grams of heroin, and quantities of cocaine and fentanyl, in and around Beckley, Raleigh County, West Virginia. Carter admitted to distributing cocaine base and over 100 grams of heroin to another member of the drug trafficking organization. Carter also admitted to assisting other members of the drug trafficking organization in cooking cocaine into cocaine base, or “crack,” and distributing the same in Raleigh County.
Brockman, Coleman, and Carter each face at least five years and up to 40 years in federal prison when they are sentenced on July 24, 2018.
Several individuals implicated as a result of this investigation have entered guilty pleas to drug charges and are awaiting sentencing. Two defendants, Cheyenne Fragale and Macon Fragale, brothers from Boomer in Fayette County, have been sentenced by United States District Judge Irene Berger. Cheyenne Fragale received a sentence of 12 years in federal prison while Macon Fragale will serve 16 years and 8 months. Velarian Carter, of Beckley, faces a mandatory minimum of not less than 20 years and up to life in federal prison when he is sentenced on April 17, 2018. Dominic Copney, of Beckley, faces a mandatory minimum of five and up to 40 years in federal prison when he is sentenced on April 17, 2018. Detria Carter, of Beckley, faces a mandatory minimum sentence of not less than five and up to 40 years in federal prison when she is sentenced on April 24, 2018. Donald Scalise, of Montgomery, faces up to 20 years in federal prison when he is sentenced on April 25, 2018. Tiffany Ramsey, of Boomer, faces at least five years and up to 40 years in federal prison when she is sentenced on May 2, 2018. Shawn Akiem Anderson, of Mt. Hope, faces up to 10 years in federal prison when he is sentenced on May 29, 2018. Rory White, of Montgomery, faces at least five years and up to 40 years in federal prison when he is sentenced on June 6, 2018.
Karl Funderburk, of Teays Valley, who previously pled guilty to a gun charge, faces at least 5 years and up to life in federal prison for using and carrying a firearm during a drug trafficking crime when he is sentenced on May 29, 2018.
Shaun Jones has entered a guilty plea to possession with intent to distribute more than 100 grams of heroin. Jonathan Moore has entered a guilty plea to possession with intent to distribute more than 500 grams of cocaine. Each faces at least five years and up to 40 years in federal prison when they are sentenced on May 29, 2018.
Corey Larkin previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and more than 100 grams of heroin. He also faces at least five years and up to 40 years in federal prison when he is sentenced on June 5, 2018.
Esau Burnette, of Beckley, has entered a plea to conspiracy to manufacture, distribute, and possess with intent to distribute more than 28 grams of cocaine base and a quantity of cocaine. He faces at least five years and up to 40 years in federal prison when he is sentenced on May 30, 2018. James Rodney Staples, of Woodbridge, Virginia, faces at least 10 years in federal prison and up to life when he is sentenced on May 30, 2018 after entering a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin.
George E. Brockman, II, of Montgomery, entered a plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of cocaine, and a quantity of oxycodone. Charles Hill, aka “Unc,” of Beckley, entered a guilty plea to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, and a quantity of cocaine. They both face at least five years and up to 40 years in federal prison when they are sentenced on June 5, 2018.
Assistant United States Attorney Timothy D. Boggess is in charge of these prosecutions. The Brockman, Coleman, and Carter plea hearings were held before Senior United States District Judge David A. Faber.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Three Men Charged with Violent Robbery of Hinsdale Jewelry StoreRead the Press Release
CHICAGO — A federal grand jury has indicted three men on robbery and weapons offenses for allegedly stealing expensive watches and jewelry at gunpoint from a Hinsdale store.
The robbers brandished firearms during the heist at Razny Jewelers, 37 S. Washington St., in the western suburb, on March 17, 2017, according to the indictment. They took more than $200,000 in merchandise, including watches by luxury brands Frederique Constant, Patek Phillipe, and Tudor, the indictment states. They allegedly sold or disposed of some of the stolen items in the Chicago area and Atlanta, Ga.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges TOBIAS DIGGS, 24, of Chicago, MARVON HAMBERLIN, 39, of Chicago, and JOSHUA MCCLELLAN, 29, of Oak Lawn, with robbery and robbery conspiracy; transportation of stolen goods; and using, carrying, and brandishing firearms during a crime of violence.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Hinsdale Police Department and Oak Lawn Police Department provided valuable assistance.
According to the charges, the defendants conducted surveillance of the store in advance of the robbery. They brought hoods, masks and other items to the store to conceal their identities, the indictment states. The robbers used actual and threatened force against store employees to take the watches and jewelry, before escaping in a Lexus sport-utility vehicle.
McClellan was arrested Friday, and he pleaded not guilty at a Friday afternoon arraignment before U.S. Magistrate Judge Sidney I. Schenkier. A detention hearing is set for Tuesday at 11:45 a.m. before Judge Schenkier.
Diggs is currently in state custody in DuPage County. His arraignment on the federal charges has not yet been scheduled.
Hamberlin is not in custody, and a warrant has been issued for his arrest.
The charge of using and brandishing a firearm carries a maximum sentence of life in prison. The conspiracy and robbery counts each carry maximum sentences of 20 years in prison. Transportation of stolen goods is punishable by up to ten years.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Albert Berry III and Lindsay Jenkins.
Three Individuals Arrested for Elder Fraud ConspiracyRead the Press Release
A complaint was unsealed today, in federal court in Brooklyn, charging Kimberly Rojas Orozco, Alexander Brown, also known as “AJ Brown,” and Troy Stanley with conspiracy to commit wire and mail fraud in connection with a lottery telephone scam targeting elderly victims. The defendants and their co-conspirators allegedly received approximately $260,000 in fraudulently obtained payments from their victims through bank wires or the mail system. The defendants were arrested today and they will make their initial appearances this afternoon at the federal courthouse in Baltimore, Maryland.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, and Gurbir S. Grewal, Attorney General of the State of New Jersey, announced the arrests.
“As alleged in the complaint, the defendants defrauded elderly and vulnerable victims by making false promises of life-changing prizes and deceiving the hopeful victims into paying upfront fees,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, will vigorously pursue the perpetrators of these fraudulent schemes wherever they are located, and hold them accountable.”
“These alleged fraudsters preyed on senior citizens, swindling them out of more than a quarter million dollars,” said HSI Special Agent-in-Charge Melendez. “Instead of showing respect to elders, these individuals chose to cheat them out of their savings; and, now they will be held responsible for their actions.”
“Law enforcement must go the extra mile to protect the elderly, who cannot always protect themselves, and our investigators have done that in this collaborative investigation,” said New Jersey Attorney General Grewal. “These defendants allegedly placed themselves in the lowest ranks of con artists by preying on seniors and callously targeting their life savings.”
According to the complaint, between January 2014 and November 2017, the defendants and others engaged in a telephone scam through which callers convinced seniors that they had won a cash lottery or sweepstakes, and that a large fee or taxes must be paid before the senior could receive their lottery winnings. The defendants, together with others, received the purported “fees,” approximately $260,000 identified to date, in the form of bank wires, money orders mailed to Brooklyn, or personal checks, and deposited the funds into their personal bank accounts.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a statutory maximum of 20 years’ imprisonment for wire and mail fraud conspiracy.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Elizabeth Losey Macchiaverna is in charge of the prosecution.
The Defendants:
KIMBERLY ROJAS OROZCO
Age: 28
Rockville, MarylandALEXANDER BROWN (also known as “AJ Brown”)
Age: 28
Rockville, MarylandTROY STANLEY
Age: 33
Randallstown, MarylandE.D.N.Y. Docket No. 18-MJ-249
The Founder of “Nxivm,” a Purported Self-Help Organization Based in Albany, N.Y., Arrested for Sex Trafficking and Forced Labor ConspiracyRead the Press Release
A complaint was unsealed today in federal court in Brooklyn charging Keith Raniere, also known as “The Vanguard,” with sex trafficking, sex trafficking conspiracy and forced labor conspiracy. Raniere was deported by Mexican authorities after he was found Sunday outside Puerto Vallarta, Mexico in a luxury villa. Raniere’s initial appearance is scheduled for tomorrow afternoon at the federal courthouse in Fort Worth, Texas.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the complaint, Keith Raniere created a secret society of women whom he had sex with and branded with his initials, coercing them with the threat of releasing their highly personal information and taking their assets,” stated United States Attorney Donoghue. “This Office and our law enforcement partners are committed to the prosecution of those who break the law by preying upon and violating members of our community.” Mr. Donoghue expressed his grateful appreciation to the FBI for leading the investigation, and thanked the New York State Police, the FBI Albany Field Office, the FBI’s Mexican Legat, the Mexican Federal Police, the New York State Office of the Attorney General, the New York State Department of Health and the United States Attorney’s Office for the Northern District of New York for their assistance.
“As alleged, Keith Raniere displayed a disgusting abuse of power in his efforts to denigrate and manipulate women he considered his sex slaves,” FBI Assistant Director-in-Charge Sweeney stated. “He allegedly participated in horrifying acts of branding and burning them, with the cooperation of other women operating within this unorthodox pyramid scheme. These serious crimes against humanity are not only shocking, but disconcerting to say the least, and we are putting an end to this torture today.”
Defendant’s Founding of Nxivm
According to the complaint, during the past 20 years, Raniere established a series of purported self-help workshops called “Executive Success Programs” (“ESP”) within his umbrella organization “Nxivm” (pronounced NEX-i-um). Nxivm is based in Albany, New York and has operated centers in the United States, Mexico, Canada and South America. Nxivm maintains features of a pyramid scheme, as its courses cost thousands of dollars each and participants (“Nxians”) are encouraged to pay for additional classes, and to recruit others to take classes, in order to rise within the ranks of Nxivm. A number of Nxians were residents of the Eastern District of New York when they were recruited, and Nxivm has held promotional recruiting events in Brooklyn. Since Nxivm’s creation, Raniere has maintained poly-amorous relations with its members.
According to the complaint, in 2015, Raniere created a secret society within Nxivm called “DOS,” which loosely translated to “Lord/Master of the Obedient Female Companions,” or “The Vow.” DOS operated with levels of women “slaves” headed by “masters.” Slaves were expected to recruit slaves of their own (thus becoming masters themselves), who in turn owed service not only to their own masters but also to masters above them in the DOS pyramid. Raniere stood alone at the top of the pyramid. Other than the Raniere, all members of DOS were women.
Most DOS slaves were recruited from within Nxivm’s ranks. When new DOS slaves were recruited, they were explicitly told that the organization was women-only, and that the organization would empower them and eradicate weaknesses that the Nxivm curriculum taught were common in women. Raniere’s status at the top of the structure was concealed from new recruits.
As a pre-condition to joining DOS, women were required to provide “collateral,” which included highly damaging information about friends and family members, nude photographs and/or rights to the recruit’s assets. DOS slaves feared that their collateral could be released for any number of reasons, including telling anyone about DOS’s existence or leaving DOS. Many DOS slaves were branded on their pelvic areas using a cauterizing pen with a symbol which, unbeknownst to them, incorporated Raniere’s initials. During the branding ceremonies, slaves were required to be fully naked, and a master would order one slave to film the branding while the others restrained the slave being branded.
As detailed in the complaint, some DOS masters gave their slaves, including Jane Does 1 and 2 as described in the complaint, work which directly or implicitly required the slaves to have sex with Raniere. These DOS masters received financial benefits from Raniere. According to the complaint, both Jane Doe 1 and Jane Doe 2 believed that if they did not have sex with the defendant, their collateral could be released.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted of the crimes charged, Raniere faces a mandatory minimum sentence of 15 years’ imprisonment, and up to life imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Moira Kim Penza and Tanya Hajjar are in charge of the prosecution.
The Defendant:
KEITH RANIERE (also known as “The Vanguard”)
Age: 57
Residence: Waterford, New YorkE.D.N.Y. Docket No. 18-MJ-132
Thackerville Man Pleads Guilty to Conspiracy to Commit Wire Fraud, Aggravated Identity TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robert Ashley Bond, age 34, of Thackerville, Oklahoma, pled guilty to Conspiracy To Commit Wire Fraud, in violation of Title 18, United States Code, Section 1343, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine, or both; and to Aggravated Identity Theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2, punishable by up to 2 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that from in or about April 2017 and continuing until on or about June 23, 2017, the Defendant, and others, knowingly conspired, agreed and confederated to execute and attempt to execute a scheme and artifice to defraud M.A., L.L., O.L., C.M., J.P., K.P., S.D., K.M., and others known and unknown to the Grand Jury, to obtain money and property by means of materially false and fraudulent pretenses, representations and promises which the Defendant transmitted or caused to be transmitted by means of wire communications in interstate commerce.The Indictment further alleged that on or about June 8, 2017, in the Eastern District of Oklahoma, the Defendant, did knowingly transfer, possess and use, without lawful authority, a means of identification of another person, J.P., during and in relation to a felony violation enumerated in 18 U.S.C. § 1028A(c), to wit: Conspiracy to Commit Wire Fraud pursuant to 18 U.S.C. §§ 1343 and 1349, knowing that the means of identification belonged to another actual person.
The charges arose from an investigation by the Marietta Police Department, the Love County Sheriff’s Office, the United States Postal Inspection Service, and the United States Secret Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
St. Francis Man and Woman Charged with Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, couple has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Vinessa Farmer, a/k/a Vinessa Kills In Water, age 42, and Robert Kills In Water, age 40, were indicted on February 14, 2018. They appeared before U.S. Magistrate Judge Mark A. Moreno on March 19, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $500,000 fine, 4 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 1, 2012, and August 22, 2017, Farmer and Kills In Water, along with a third accomplice, knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute marijuana, a Schedule I controlled substance.
The Indictment also alleges that on August 22, 2017, Farmer and Kills In Water knowingly and intentionally possessed marijuana with intent to distribute it in Todd County.
The charges are merely accusations and Farmer and Kills In Water are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Farmer and Kills In Water were released on bond pending trial, which has not been set.
St. Francis Man Indicted for Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Assaulting, Resisting, and Impeding a Federal Officer.
Sylvan White Hat, Jr., a/k/a Bud White Hat, age 37, was indicted on March 13, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 23, 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, 2 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 16, 2017, White Hat assaulted an individual with shod feet with the intent to do bodily harm, and that the assault resulted in serious bodily injury. The Indictment further alleges that White Hat assaulted two Rosebud Sioux Tribe Law Enforcement Services officers on the same date.
The charges are merely accusations and White Hat is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
White Hat was released on bond pending trial. A trial date has not been set.
St. Croix Man Pleads Guilty to Possession of Firearm with Obliterated Serial NumberRead the Press Release
St. Croix, USVI – Dale Ritter, 53, of St. Croix, pled guilty on March 23, 2018, in District Count to one federal count of Possession of a Firearm with Obliterated Serial Number, and one local count of Illegal Use of Utility Equipment, United States Attorney Gretchen C.F. Shappert announced.
This federal offense carries a possible sentence of incarceration of up to 5 years, a maximum fine of up to $250,000 dollars, and a term of supervised release for not more than 3 years. The local offense carries a potential fine of not less than $500 nor more than $3,000, or a prison sentence of up to 1 year. Sentencing is set for July 25, 2018.
According to court documents, on July 21, 2017, the Drug Enforcement Administration (DEA) executed a search warrant at Ritter’s residence in Frederiksted, St. Croix. During the execution of this search warrant, DEA agents located a Taurus Millennium 9mm handgun with an obliterated serial number. This firearm was determined to be operable and had been shipped in interstate commerce. Additionally, the agents located unauthorized electric wires running from a pole owned by WAPA that provided electricity to Ritter’s residence and a marijuana grow room.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Task Force Officers with the Virgin Islands Police Department. The case was prosecuted by Assistant U.S. Attorney Daniel H. Huston.
Rosebud Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer with a Dangerous Weapon was sentenced on March 19, 2018, by U.S. District Judge Roberto A. Lange.
Robert Lee Burnette, a/k/a Robert Small Bear, Jr., a/k/a Robert Small Bear, a/k/a B.J. Small Bear, age 24, was sentenced to 7 months in prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Burnette was indicted by a federal grand jury on August 16, 2017. He pled guilty on December 29, 2017.
The conviction stemmed from an incident that occurred on July 14, 2017, in the North Antelope Community, near Mission, South Dakota. On that evening, Rosebud Sioux Tribe Law Enforcement Services received a call that Burnette was drunk and causing a disturbance at a residence in North Antelope. An officer arrived to find Burnette standing in the street brandishing a knife, and yelling at another man, who was holding a bar. The officer drew his duty weapon, aimed it at Burnette, ordered him to drop the knife, and ordered the other man to back up. The other man complied and put down the bar. Burnette ignored the officer’s repeated commands and began to approach the other man, brandishing the knife and yelling. As Burnette walked past the officer and neared the other man, the officer fired at Burnette, wounding him in the buttocks. Burnette then went to the ground and complied with a command to drop the knife. Burnette was subsequently hospitalized for his injuries.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Burnette was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Indicted for Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Cassius Farmer, age 24, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 21, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in prison 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 Indictment alleges that on December 9, 2017, Farmer assaulted an individual with a club with the intent to do bodily harm and that the assault resulted in serious bodily injury.
The charges are merely accusations and Farmer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Farmer was released on bond pending trial. A trial date has not been set.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Jasyn Curley, age 23, was indicted on March 20, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 22, 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, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or between January 4, 2018, and January 17, 2018, Curley, a person required to register under the Sex Offender Registration and Notification Act, did fail to register and update his registration.
The charge is merely an accusation and Curley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Office. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Curley was remanded to the custody of the U.S. Marshals Service pending trial.
Queens Criminal Defense Attorney and Three Other Individuals Indicted for Conspiracy and Making False StatementsRead the Press Release
A two-count indictment was unsealed today in federal court in Brooklyn charging attorney Scott Brettschneider, also known as “Mighty Whitey,” Charles Gallman, also known as “T.A.,” Richard Marshall, also known as “Love,” and Reginald Shabazz-Muhammad, also known as “Reggie,” with conspiring to make false statements and making false statements to the United States Bureau of Prisons (“BOP”). Brettschneider was arrested earlier today and will be arraigned this afternoon in federal court in Brooklyn before United States Magistrate Judge Steven M. Gold. Gallman and Marshall were arrested on March 22, 2018 and ordered detained. Shabazz-Muhammad is still at large. The case has been assigned to United States District Judge Carol B. Amon.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Richard A. Brown, District Attorney of Queens County, announced the charges.
“The defendants, including a practicing attorney, participated in a scheme to gain a narcotics trafficker early release from prison by falsely informing the Bureau of Prisons that he was a candidate for a drug rehab program,” stated United States Attorney Donoghue. “This Office and our law enforcement partners are committed to ensuring that the resources to fight drug addiction go to the people who need them, not the drug dealers who put poison on our streets and who deserve to serve the entirety of their prison sentences.”
“Those charged today allegedly conspired to release an inmate from prison under the auspices that he was eligible to receive treatment from the BOP’s Residential Drug Abuse Program when, in fact, he was not,” stated FBI Assistant Director-in-Charge Sweeney. “Petitioning to send a known drug dealer back onto our streets before his sentence is served, and providing false documentation to prove he’s eligible for early release, is a reckless prospect that risks the well-being of society as a whole. Drug addiction is a serious issue that deserves the appropriate response from all those involved. We won’t stand for anything less.”
“Integrity is the foundation of our criminal justice system,” stated Queens District Attorney Brown. “These allegations go to the core of that foundation and are prejudicial to the administration of justice. The charges today send a strong message to those who would undermine that integrity that they will be held accountable. No one can be allowed to ‘fix’ any part of a case. I commend our federal partners in the United States Attorney’s Office for the Eastern District and the Federal Bureau of Investigation working with my Rackets, Special Victims and District Attorney’s Detective Bureaus for their vigorous pursuit of justice in this matter.”
As alleged in the indictment and detailed in court filings, a federal inmate (Marshall), his defense attorney (Brettschneider) and two other defendants (Gallman and Shabazz-Muhammad) wrote a letter to the BOP, falsely recounting Marshall’s history of substance and alcohol dependence. The letter was signed by Shabazz-Muhammad, purporting to be Marshall’s treatment provider, and was submitted to the BOP on Marshall’s behalf, for Marshall to fraudulently gain entry into the BOP’s Residential Drug Abuse Program (“RDAP”). An inmate who is accepted into and successfully completes the RDAP program is potentially eligible to receive a year off his or her sentence. Shabazz-Muhammad was not Marshall’s treatment provider; he was Brettschneider’s assistant. Intercepted communications over a court-authorized wiretap revealed the defendants talking to Marshall on a smuggled cell phone in prison, discussing what the letter should state to ensure Marshall’s acceptance into the program. Gallman predicted that it would “knock a year off his sentence,” and doubted that the BOP would be “scrutinizing it that much.” As it turned out, the BOP did scrutinize it, and requested that Marshall submit progress reports of his past treatment.
As alleged in court documents, the charges contained in the federal indictment stem from an investigation conducted by the Queens County District Attorney’s Office.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Lindsay K. Gerdes and Andrey Spektor are in charge of the prosecution.
The Defendants:
Scott Brettschneider
Age: 61
Queens, New York
Mint Hill, North CarolinaCharles Gallman
Age: 56
Queens, New YorkRICHARD MARSHALL
Age: 56
Charlotte, North CarolinaReginald Shabazz-Muhammad
Age: 62
Queens, New YorkE.D.N.Y. Docket No. 18-CR-123 (CBA)
Porcupine Man Found Guilty of Assault and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that Kison Robertson, age 45, was found guilty of Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Discharge of a Firearm During the Commission of a Crime of Violence following a federal trial in Rapid City, South Dakota. The jury returned the verdict on March 21, 2018.
The charges carry a mandatory minimum sentence of 10 years’ custody, up to a maximum penalty of up to life in custody and/or a $250,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established Robertson shot a man in his stomach following a fight at Porcupine on March 30, 2017. This assault resulted in the victim suffering serious bodily injury.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted and tried the case.
A sentencing date was set for June 22, 2018. Robertson was remanded to the custody of the U.S. Marshals Service pending sentencing.
Pleasantville, New Jersey, Teacher and Sewell, New Jersey, Salesman Admit Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – Two men today admitted defrauding New Jersey state health benefits programs and other insurers out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito and New Jersey Attorney General Gurbir S. Grewal announced.
William Hunter, 43, a salesman from Sewell, New Jersey, and Richard McAllister, 42, a Pleasantville school teacher from Ocean City, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From January 2015 through April 2016, Hunter and McAllister recruited individuals to obtain very expensive and unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators knew that certain compound medications – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that these medications would be covered by an entity referred to in the informations as the “Pharmacy Benefits Administrator.” The Pharmacy Benefits Administrator provided benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The amounts paid for the prescription drug claims were billed to the State of New Jersey.
Hunter, McAllister, and others recruited individuals covered by the Pharmacy Benefits Administrator, including public employees, to fraudulently obtain unnecessary compounded medications from the Compounding Pharmacy. Hunter and McAllister obtained insurance information from those individuals and gave it to another conspirator, who completed the prescriptions and had a doctor sign them without examining the individuals. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
The pharmacy then paid one of their conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Hunter, McAllister, and other members of the conspiracy. Hunter and McAllister paid individuals with insurance coverage to reward them for obtaining prescriptions. McAllister himself received compounded medications based on a prescription signed by a doctor he did not see.
According to the informations, the Pharmacy Benefits Administrator paid the Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
Both defendants face a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Hunter must forfeit $245,020.08 in criminal proceeds and pay restitution of at least $1,323,930.57. McAllister must forfeit $456,806.23 and pay restitution of at least $3,428,222.97. Sentencing for both defendants is scheduled for July 18, 2018.
Sixteen other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, John Gaffney, Judd Holt, George Gavras, Richard Zappala, Michael Neopolitan, Andrew Gerstel, Timothy Frazier, Michael Pilate, Shawn Sypherd, Nicholas Tedesco, and Michael Sher – pleaded guilty from August through March 2018 and await sentencing.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, with the investigation leading to the guilty pleas. He also thanked the Pensions and Financial Transactions Section of the Division of Law, within the Attorney General’s Office, under the direction of Attorney General Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel:
Hunter: Jill Cohen Esq., Westmont, New Jersey
McAllister: Edward F. Borden Jr. Esq., Cherry Hill, New JerseyPittsburgh Woman Admits Distributing Multiple Drugs, Including Fentanyl and Cocaine that Caused an Overdose DeathRead the Press Release
PITTSBURGH, PA. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Katie Spratt, 32, pleaded guilty to one count of conspiring with 20 other individuals, between March and August 2017, to distribute heroin, fentanyl, cocaine, and cocaine base, more commonly known as crack. In connection with the guilty plea, the court was advised that Spratt regularly purchased fentanyl and cocaine from her co-defendant, Skylar Carter, for both personal use and further distribution, and was responsible for distributing quantities of fentanyl and cocaine resulting in the overdose death of a victim identified as A.B. on June 5, 2017. Spratt further acknowledged her responsibility for participating with other members of the conspiracy in the distribution of more than 160 grams of fentanyl, 280 grams of cocaine base, and 3.5 kilograms of cocaine. She is the fifth of 21 defendants charged in the case to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for August 29, 2018, at 10 a.m. Spratt has a prior felony drug conviction, and as such, she is subject to enhanced penalties. The law provides for a maximum total sentence of 30 years in prison, a fine of not more than $2 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Spratt remains incarcerated pending the sentencing hearing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Physician Pleads Guilty to Drug Distribution and Money Laundering ConspiraciesRead the Press Release
DUBLIN, GA: On March 21, 2018, gynecologist George “Mack” Bird, III, 59, entered a guilty plea before Senior United States District Court Judge Dudley H. Bowen, Jr. to charges of Conspiracy to Distribute Controlled Substances and Conspiracy to Commit Money Laundering, both federal felonies carrying up to five years of imprisonment without the possibility of parole. Bird also conceded that approximately $2.7 million of seized assets and five parcels of land were traceable to proceeds of his crimes, and he agreed to forfeit the same to the United States.
According to information presented at the March 21 hearing, Dr. Bird was the owner and operator of medical practices in Eastman and Dublin, Georgia, from which prescription drugs were sold to patients for cash and prescribed without a legitimate medical purpose. Those drugs included but were not limited to opioids (such as hydrocodone combination products), alprazolam (Xanax), carisoprodol (Soma), phentermine (Adipex), and phendimetrazine (Plegine). In the years leading to his arrest in 2015, Dr. Bird delegated many of his patient care responsibilities to employees who could not legally distribute or dispense controlled substances without a physician’s oversight. To facilitate the distribution and dispensation of controlled substances, Dr. Bird directed his staff to use pre-signed prescription forms and pre-printed medical notes that were placed in patients’ files to give the appearance that the patients had been examined by Dr. Bird when, in fact, they had not been.
Dr. Bird’s criminal conduct netted him millions of dollars. Although he kept a significant portion of that money, Dr. Bird used some of his proceeds to pay his co-conspirators and purchase drugs for eventual distribution.
United States Attorney Bobby L. Christine stated, “Blinded by greed, Mack Bird broke the law, sold out his patients’ welfare, and violated his solemn oath to do no harm. This Office takes seriously the opioid crisis in the United States and will continue to prosecute drug dealers who fuel addiction and poison the community, whether from the street or inside an exam room.”
U.S. Attorney Christine commended the hard work and dedication of the Drug Enforcement Administration’s Tactical Diversion Squad and the Oconee Drug Task Force, both of which investigated the case.
Assistant United States Attorneys Patricia G. Rhodes and Theodore S. Hertzberg prosecuted the case on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422
Pasadena Man Sentenced to 125 months in Federal Prison for ‘Dual Valley Bandit’ Bank Robbery SpreeRead the Press Release
LOS ANGELES – A Pasadena man was sentenced today for the commission of a series of bank robberies culminating in an armed robbery at a Pasadena bank where he brandished a shotgun and placed it to the side of a bank employee’s head while demanding money.
Shownee Shon Smith, 41, was sentenced today to over 10 years in prison by United States District Judge Percy Anderson for robbing a Wells Fargo Bank branch in East Pasadena while armed with a loaded shotgun. In addition to the prison term, Smith was sentenced to five years of supervised release and ordered to pay $20,285 in restitution to the victimized banks.
On June 10, 2017, Pasadena Police Department officers responded to alarms and a 911 call from inside the Wells Fargo branch and arrested Smith immediately after he exited the bank.
According to court records, Smith committed six bank robberies between May 15 and June 10, 2017. In addition to the Wells Fargo robbery in East Pasadena, Smith was charged with robbing branches of US Bank in Burbank on May 15, Wells Fargo in South Pasadena also on May 15, Chase Bank in East Pasadena on May 20, Chase Bank in North Hollywood on May 27, and Citibank in Tarzana also on May 27. Prior to the Wells Fargo robbery on June 10, Smith had allegedly used notes to demand money from bank employees.
The case against Smith is the result of an investigation by the FBI, which received substantial assistance from the Pasadena Police Department, the South Pasadena Police Department, the Burbank Police Department, the Los Angeles Police Department, and the Santa Monica Police Department.
The case is being prosecuted by Assistant United States Attorney Carolyn Small of the General Crimes Section.
Owner of Meriden Transportation Broker Firm Admits to Defrauding Manufacturing CompaniesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIGBY KERR, 50, of Meriden, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of wire fraud.
According to court documents and statements made in court, KERR owned and operated Transportation Cost Management, LLC (“TCM”), which was in the business of brokering shipping contracts between manufacturers and trucking companies. As part of its business, TCM would receive shipping invoices from trucking companies, process the invoices, and forward the billing information to the manufacturers. The manufacturers would transmit the payment funds to TCM for remittal to the trucking companies. TCM would then remit payment to the trucking companies and send confirmation reports to the manufacturers indicating that payment had been made to the trucking companies. The manufactures compensated TCM for providing this service.
In pleading guilty, KERR admitted that, between approximately December 2016 and April 2017, he and TCM failed to remit $603,489.30 in payment funds that TCM received from four manufacturers to the trucking companies that transported goods for those victim manufacturers. TCM, at KERR’s direction, e-mailed confirmation reports to the victim manufacturers that falsely represented that the manufacturers’ payments had been properly forwarded to the trucking companies.
Wire fraud carries a maximum term of imprisonment of 20 years. Judge Meyer scheduled sentencing for June 18, 2018.
KERR was released on a $100,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Avi M. Perry.
Optometrist Sentenced to 33 Months in Prison for Health Care Fraud Involving at Least $250,000 in LossesRead the Press Release
PITTSBURGH – A resident of Hazelet, New Jersey, was sentenced in federal court for engaging in health care fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon sentenced Dr. Vincent J. Gamuzza, 31, to serve 33 months’ incarceration and pay a $25,000 fine.
Gamuzza previously pleaded guilty to one count of health care fraud on September 18, 2017. In connection with his guilty plea, Gamuzza, a doctor of optometry, admitted that he operated multiple vision centers in Pennsylvania, including Western Pennsylvania, and in New Jersey. Gamuzza was responsible for handling all billing to insurance companies, including Highmark Inc. and Davis Vision. As part of his guilty plea, Gamuzza admitted that between in or around December 2015 and July 2016, he submitted fraudulent claims to Highmark Inc. for services that were never provided to patients. He also admitted that he impermissibly submitted claims for the same services to both Highmark Inc. and Davis Vision. In total, Gamuzza admitted this his crime involved losses of between $250,000 and $550,000 to insurance providers. At his sentencing hearing, Gamuzza further acknowledged that he attempted to obstruct justice when he submitted fabricated treatment records to the government in an effort to justify his continued fraudulent billing.
Judge Bissoon also ordered Gamuzza to make restitution of $95,667 to Highmark Inc. and $3,333 to Davis Vision.
Assistant United States Attorneys Eric G. Olshan and Robert S. Cessar prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the United States Department of Health and Human Services – Office of Inspector General, and the Department of Defense – Office of Inspector General conducted the investigation of Gamuzza.
Ohio Man Pleads Guilty in a Money Laundering Conspiracy Involving Nearly $940,000 in Drug ProceedsRead the Press Release
ERIE, Pa. - A former resident of Coshocton, Ohio, pleaded guilty in Erie federal court to a charge of violating money laundering laws, United States Attorney Scott W. Brady announced today.
Guadalupe Cortez Beserra, 30, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Beserra conspired to commit money laundering by transferring and delivering approximately $939,610.00 in U.S. currency representing the proceeds of the buying, selling and otherwise dealing in cocaine from an Erie, Pennsylvania drug dealing operation. According to the information provided to the court, Beserra received the money from the organization’s drug dealing operation in Erie, and was instructed to count the money and repackage it in vacuum-sealed bags for further transport. Investigators seized the money after conducting a search of a residence in Coshocton, Ohio. The money seized by the investigators is subject to forfeiture.
Judge Cercone scheduled sentencing for July 16, 2018 at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The U.S Immigration and Customs Enforcement/Homeland Security Investigations, the Pennsylvania State Police, and the Coshocton County, Ohio Sheriff’s Office conducted the investigation that led to the prosecution of Beserra.
Mobile County Man Receives 54 Month Sentence and Must Pay $2,108.62 in Restitution for Two Aggravated Identity Theft Convictions and a Wire Fraud ConvictionRead the Press Release
The United States Attorney, Richard W. Moore, announces that Joshua Roberts, a 38 year old, resident of Mobile, Alabama was sentenced to six months for a wire fraud conviction followed by consecutive two year sentences for two aggravated identity theft convictions, totaling 54 months of incarceration. Roberts was ordered to repay defrauded businesses $2,108.62 in restitution.
Starting in January 2015 and continuing for 35 days, Roberts and co-defendant, Marcella Watkins stole large amounts of mail from area apartment complexes, pillaged through it and found credit cards and personal checks of several citizens. They then victimized those citizens by using their financial information to fraudulently buy goods online totaling approximately $2108.62. Roberts also used the identities of the victims and their checking account to purchase additional items for his personal use and enjoyment. Roberts pled guilty to the three charges on December 14, 2017.
The United States Postal Inspection Service investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.Millvale Man with Prior Conviction for Distributing Child Pornography will Spend 10 More Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 10 years’ imprisonment, followed by seven years’ supervised release, on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Robert Paladino, Jr., age 61, of Millvale, Pennsylvania.
According to information presented to the Court, on or about August 13, 2015, Paladino knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. Paladino had previously been convicted of distribution of material depicting the sexual exploitation of a minor in 2006 and served 121 months imprisonment on that offense.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Postal Inspection Service for conducting the investigation leading to the successful prosecution of Paladino.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.