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26 April 2018
Hiram Man Sentenced to More than Eight Years for Being a Felon in Possession of FirearmsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Michael Gaudette, 36, of Hiram, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 100 months in prison and three years of supervised release for being a felon in possession of a firearm. Gaudette pled guilty on November 28, 2017.
According to court records, on May 10, 2017, the Maine State Police executed a search warrant at a property in Hiram where Gaudette resided and seized three assault rifles, a shotgun and a handgun. Three of the firearms were loaded. Gaudette was prohibited from possessing firearms because of prior felony convictions for attempted robbery, burglary, escape, possession of narcotics and conspiring to deliver articles to prisoners.
The investigation was conducted by the Maine State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Helena Man Sentenced to Federal Prison for Firearm OffenseRead the Press Release
HELENA – William Paul Cox, Jr, a 35-year-old Helena resident, was sentenced today to 37 months in prison followed by three years supervised release after pleading guilty to felon in possession of a firearm and ammunition on November 17, 2017. U.S. District Judge Charles C. Lovell handed down the sentence.
On April 4, 2016, Cox was arrested in Helena, Montana, on outstanding warrants. The Missouri River Drug Task Force searched Cox’s vehicle pursuant to a warrant. They found a loaded .40 caliber, semi-automatic pistol in the suburban. Two days later, Cox asked a friend to get a green bag out of the back of the suburban because it contained personal items. He told the friend to leave the red bag in the speaker box because it contained a “boom boom.” Cox described the location MRDTF where they found the loaded .40 caliber pistol. Cox was previously convicted of being a felon in possession of a firearm and sentenced to 40 months imprisonment in 2005.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Missouri River Drug Task Force and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Hartford Grocery Store Owner Sentenced to 9 Years in Federal Prison for Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JOHNNY BELTRE, 35, a citizen of the Dominican Republic last residing in Cromwell, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 108 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, BELTRE trafficked heroin from his business, the Beltre Family Grocery store, located at 955 Broad Street in Hartford. Between July 2015 and January 2016, the DEA’s Hartford Task Force made seven controlled purchases of heroin from BELTRE and his associates. For each purchase, an individual arranged to purchase heroin from BELTRE through telephone calls, text messages or in-person meetings. The individual then travelled to Beltre Family Grocery and provided BELTRE with money. BELTRE then sent the purchaser to the nearby residences of two co-conspirators, Elvis de los Santos and Domingo de los Santos, to obtain the heroin.
On February 22, 2016, investigators in Connecticut learned that BELTRE and two other associates were arrested in the Bronx, N.Y., after BELTRE and his associates provided a courier with a bag containing approximately $500,000 in exchange for 20 kilograms of heroin. On that date, a search of BELTRE’s residence in Cromwell revealed $433,577 in cash; a search of Elvis de los Santos’s residence revealed two bags of raw heroin, cutting agents, a digital scale and baggies, and a search of Domingo de los Santos’s residence revealed a bag of heroin, a bag of cocaine, cutting agents, a kilogram press, pieces of an unassembled kilogram press, baggies, scales, gloves, a vacuum sealer and $6,000 in cash.
BELTRE has been detained since his arrest. On January 22, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.
Elvis and Domingo de los Santos previously pleaded guilty to related charges and were sentenced to prison terms of 18 months and 20 months, respectively.
BELTRE faces immigration proceedings when he completes his prison term.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – David Leon Turner, of Clarksburg, West Virginia, was sentenced today to 41 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Turner, age 30, pled guilty to one count of “Unlawful Possession of a Firearm” in December 2017. Turner, having previously being convicted of three felonies, is also accused of possessing a 9mm caliber pistol. The crime is alleged to have occurred in Harrison County in May 2017.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.Harrisburg Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gamarius Jones, age 23, of Harrisburg, Pennsylvania, was indicted on April 25, 2018, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Jones possessed with the intent to distribute crack cocaine on December 5, 12 and 21, 2017, in Dauphin County. The indictment also alleges that on February 12, 2018, in Dauphin County, Jones unlawfully possessed a .45 caliber Springfield handgun as a previously convicted felon.
The matter was investigated by the Harrisburg Police Department, the Office of Attorney General, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this offense is up to life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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HOPE Clinic Physician Pleads Guilty to Money Laundering ChargeRead the Press Release
BECKLEY, W.Va. – A Beckley area physician, Dr. John Pellegrini, D.O., 64, of Huntington, West Virginia, pled guilty today to a conspiracy to commit money laundering related to the promotion of the illegal distribution of Schedule II controlled substances, outside the usual course of professional practice and not for a legitimate medical purpose, announced United States Attorney Mike Stuart.
Stuart commended the investigation conducted by agents with the:
- U.S. Department of Health and Human Services, OIG
- Internal Revenue Service, Criminal Investigations
- Food and Drug Administration – Office of Criminal Investigations (OCI)
- Federal Bureau of Investigation
- West Virginia State Police
- Metropolitan Drug Enforcement Network Team (MDENT)
- Beckley Police Department
- Kentucky State Police
- Harrison County (KY) Sheriff’s Department
- Appalachia HIDTA
- Drug Enforcement Administration
“Physicians and pharmacies that exploit addiction, the weak and the vulnerable for personal greed must be held accountable,” said United States Attorney Mike Stuart. “Every physician takes the Hippocratic Oath promising, “First, do no harm.” Tragically, physicians like Pellegrini either forgot or chose to ignore that oath in favor of greed, profits, and easy cash. The opiate crisis has claimed too many of our good citizens because of doctors like Pellegrini. We will all meet our maker someday and no one, including Pellegrini, can escape the ultimate judgment. It is a tragedy on many, many levels.”
Pellegrini admitted that he worked at the Beckley location of the HOPE Clinic from November 2010 through October 31, 2012, which was owned by another physician and managed by a company called PPPFD, Inc.. He also admitted that many of the prescriptions that he wrote for HOPE Clinic customers were illegal, as they were written outside the usual course of professional practice and not for a legitimate medical purpose. He further admitted that he understood from his interactions and conversations with other unnamed co-conspirators that the main purpose of the HOPE Clinic was to provide opioid prescriptions on a monthly basis to customers visiting HOPE Clinic. Pellegrini admitted that his interactions and examinations of customers were brief, cursory, or non-existent and generally resulted in a monthly prescription for opioids, which were typically oxycodone and oxycodone-based narcotics such as Roxicodone, powerful pain medications. Pellegrini admitted that he wrote these prescriptions at times even after customers’ screened positive for controlled substances other than what the customer was prescribed. Pellegrini further admitted that, as he and his co-conspirators knew, he did not create any meaningful treatment plans for his customers at HOPE Clinic and that he did not have any specialized training in pain management. Pellegrini further admitted that the clinic manager instructed and encouraged him to write opioid prescriptions and he complied.
Pellegrini also admitted that HOPE Clinic charged customers at least $160 per monthly visit, even when the customer did not see a doctor. He further admitted that he knew that some of the funds deposited into the bank account of HOPE Clinic were the criminally derived proceeds of distributing controlled substance without a medical legitimate purpose, as he knew that HOPE Clinic and PPPFD received funds from customers in exchange for the illegal prescriptions he wrote. Pellegrini further admitted that he received bonuses from HOPE Clinic, through the staffing service that employed him, based on the number of paying customers visiting the clinic, and those bonuses encouraged and promoted him to write even more illegal prescriptions for highly-addictive controlled substances because as the number of customers went up, the amount of his bonus went up.
Pellegrini admitted that during his work at the HOPE Clinic, he wrote at least 98 prescriptions for controlled substances outside the usual course of professional practice and not for a legitimate medical purpose.
Pellegrini faces up to 20 years when he is sentenced on August 8, 2018.
This case was brought 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 prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Gloucester Woman Sentenced for Role in Counterfeit Steroid Trafficking SchemeRead the Press Release
BOSTON – A Gloucester woman was sentenced yesterday in federal court in Boston for her role in a conspiracy to traffic steroids and launder money.
Melissa Sclafani, 30, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison and two years of supervised release. In June 2017, Sclafani pleaded guilty to one count of conspiracy with intent to distribute and to distribute counterfeit steroids and one count of conspiracy to launder money. On April 12, 2017, Sclafani and five others were charged by criminal complaint.
From at least February 2016 until April 12, 2017, Sclafani conspired with others to manufacture steroid products, market them as “Onyx” steroids, and sell them to customers across the United States using email and social media platforms. Customers paid for the steroids via money remitters, such as Western Union and MoneyGram, and members of the conspiracy used false identifications and multiple remitter locations to pick up the steroid proceeds.
Sclafani obtained materials and supplies to manufacture the counterfeit steroids and served as the corporate secretary of Wicked Tan LLC, a tanning business in Beverly that was owned by two co-conspirators. Sclafani assisted members of the conspiracy in laundering proceeds from the sale of counterfeit steroids through the business.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal investigation, New York Field Office, made the announcement today. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Lelling’s Cybercrime Unit prosecuted the case.
Georgia Supplier of Methamphetamine in Western North Carolina Is Sentenced to More Than 21 YearsRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Richard Arlee Champion, 31, of Atlanta, Georgia, to 262 months in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Champion to serve 10 years under court supervision after he is released from prison.
According to filed court documents and court proceedings, Champion and his codefendant, Marissa Jade Burt, 34, of Whittier, N.C. were involved in a drug conspiracy that trafficked large amounts of methamphetamine to the Eastern Band of Cherokee Indians, and Jackson and Swain Counties. Court records show that Champion was the main source of supply for Burt and his other for codefendants: Jordan Heath Oocumma, 31, of Cherokee, N.C., John Allen Wise, 39, of Franklin, N.C., Jillian Monike Swimmer, 31, of Cherokee, and Anthony Michael Dealto, 32, of Bryson City, N.C. According to court records, Burt travelled regularly to Atlanta to pick up the methamphetamine, which she then distributed to her co-conspirators. A federal jury convicted Champion in January 2018 of conspiracy to distribute and aiding and abetting to possess with intent to distribute.
In sentencing Champion, Judge Reidinger said being a supplier of methamphetamine comes with heavy penalties.
U.S. Attorney Murray thanked the Drug Enforcement Administration (DEA), the Bureau of Indians Affairs (BIA), the Cherokee-Indian Police Department, the Swain County Sheriff’s Office, and the North Carolina State Highway Patrol for their investigation of the case.
Assistant U.S. Attorney Christopher Hess prosecuted the case.
Gaffney Man Guilty of Stealing $220,000 of Government FundsRead the Press Release
Columbia, South Carolina –------- United States Attorney Beth Drake announced today that James Littlejohn, age 66, of Gaffney, South Carolina, pled guilty on April 24, 2018, to two counts of theft of United States government funds in violation of Title 18, United States Code, Section 641. The plea was taken by Senior United States District Judge Henry M. Herlong, Jr., who will sentence Littlejohn at a later date. The possible sentence on each count is imprisonment for up to 10 years and a fine of $250,000.00.
At the guilty plea hearing the Court was advised of the following facts. In February 2013 the Internal Revenue Service received two Form 1040 Individual Income Tax Returns bearing Mr. Littlejohn’s name, address and Social Security Number. Each showed a large income with various deductions entitling Mr. Littlejohn to a refund for tax year 2011 of $98,261.44 and a refund for tax year 2012 of $122,696.56. Two checks in these amounts were sent to Mr. Littlejohn who cashed same and converted the funds to his own use. It was later learned that the Form 1040’s were bogus and that Mr. Littlejohn was not entitled to the claimed refunds.
United States Attorney Drake stated that the case had been investigated and prosecuted by Assistant United States Attorney Jaime Raich of the Southern District of Florida and Assistant United States Attorney David C. Stephens of the District of South Carolina.
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Ft. Worth, Texas, Couple Charged with Forced Labor of Domestic ServantRead the Press Release
Defendants compelled the unpaid domestic labor and services of a young, West African girl in their home for over 16 years until neighbors helped her escape
Mohamed Toure, 57, and Denise Cros-Toure, 57, of Ft. Worth, Texas, appeared today in federal court in the Northern District of Texas on a criminal complaint charging them with forced labor, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, and Special Agent in Charge Michael V. Perkins of the U.S. Department of State, Diplomatic Security Service, Houston Field Office.
According to the affidavit filed with the complaint, the defendants and others arranged for the victim, who did not speak English, to travel alone from her village in the Republic of Guinea, in West Africa, to Southlake, Texas, in January 2000 to work for the defendants in their home. The victim’s Guinean passport indicated that she was five years old at the time. Throughout the years, until the victim escaped in August 2016, the defendants forced the victim to labor in their home for long hours without pay. The defendants required her to cook, clean, do the laundry, perform yardwork, and paint, as well as care for their five children. Although the victim was close in age to the children, the defendants denied her access to schooling and the other opportunities afforded to their children.
As part of their coercive scheme to compel the victim’s labor, the defendants took her documents and caused her to remain unlawfully in the United States after her visa expired. They further isolated her from her family and others and emotionally and physically abused her. Eventually, in August 2016, the victim escaped the defendants with the help of several former neighbors.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum penalty for the offense of forced labor is 20 years in federal prison.
The case is being investigated by Diplomatic Security Service, Houston Field Office. It is being prosecuted by Trial Attorneys Rebekah Bailey and William Nolan of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit with assistance from Assistant U.S. Attorneys Alex Lewis and Chris Wolfe for the Northern District of Texas.
Former Virginia High School Science Teacher Pleads Guilty to Producing Child PornographyRead the Press Release
A Charlottesville, Virginia man pleaded guilty today to a child pornography charge, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Thomas T. Cullen of the Western District of Virginia.
Richard Alan Wellbeloved-Stone, 57, pleaded guilty in the U.S. District Court for the Western District of Virginia to one count of production of child pornography.
Wellbeloved-Stone, a former high school teacher in Charlottesville, was discovered by law enforcement after chatting online with an undercover agent from the United Kingdom about sexually abusing a young child. A search warrant executed at Wellbeloved-Stone’s home recovered several images of child pornography produced by Wellbeloved-Stone of at least two young minor victims.
“The horrific nature of Richard Wellbeloved-Stone’s production of images depicting the sexual abuse of children is only compounded by the fact that he held a position of great societal trust and admiration as a teacher,” said Acting Assistant Attorney General Cronan. “The Criminal Division’s Child Exploitation and Obscenity Section will continue to work with its law enforcement partners to aggressively investigate and prosecute persons who exploit minors for sexual purposes and use technology to further victimize these children.”
“The defendant, who was entrusted by the community to protect our children, violated that sacred trust by committing these awful acts,” said U.S. Attorney Cullen. “I am thankful to those who stopped him from committing further crimes. As this case demonstrates, we will aggressively target those who prey on children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Charlottesville Police Department, the Virginia State Police and the Albemarle County Police Department.
This case is being prosecuted by Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Nancy Healey.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Head of HSBC’s Global Foreign Exchange Cash-Trading Sentenced to Prison for Multimillion-Dollar Front-Running SchemeRead the Press Release
The former head of global foreign exchange cash trading at HSBC Bank plc, a subsidiary of HSBC Holdings plc (collectively HSBC), was sentenced to prison today for his role defrauding an HSBC client through a scheme commonly referred to as “front running.” The Court remanded Johnson to the custody of the Bureau of Prisons.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.
Mark Johnson, 51, a United Kingdom citizen, was sentenced to serve 24 months in prison by U.S. Distict Judge Nicholas Garaufis of the Eastern District of New York. In addition, Judge Garaufis ordered that the defendant pay a fine of $300,000. A federal jury convicted the defendant on Oct. 23, 2017, following a four-week trial, of one count of wire fraud conspiracy and eight counts of wire fraud.
“Mark Johnson, an executive at one of the world’s largest financial institutions, cheated his client out of millions and now he’s going to prison for it,” said Acting Assistant Attorney General Cronan. “This sentencing should serve as a warning to those who engage in crooked financial schemes: The Justice Department’s Criminal Division and our law enforcement partners are watching. We are committed to protecting our financial system from harm and we will hold corporate executives accountable for their crimes.”
“Mark Johnson exploited confidential information and betrayed a client in order to generate profits for HSBC and enrich himself,” stated United States Attorney Donoghue. “Johnson has been held accountable for his crimes and today’s sentence should serve as a deterrent to fraudsters seeking to cheat their victims by manipulating important benchmarks, such as the FX spot fixings. This Office, together with our law enforcement partners, is committed to bringing to justice those who undermine public confidence in the operation of the financial markets through such schemes.”
“Today’s sentencing holds Mr. Johnson accountable for his egregious conduct to improperly manipulate the foreign currency market, misuse his position, and breach the customers’ trust,” said FDIC Inspector General Lerner. “We are dedicated to working with our law enforcement partners in order to combat crimes that undermine the integrity of financial institutions and bring culpable bank insiders to justice.”
“Leaders of financial service organizations such as HSBC are held to the utmost standard of integrity, which Mark Johnson failed to uphold,” said Assistant Director in Charge McNamara. “The FBI will not falter in assuring that justice will be brought to those that use company finances for their own personal gain.”
According to the evidence presented at trial, in November and December 2011, Johnson cheated an HSBC client out of millions of dollars by misusing information provided to him by that client, which had hired HSBC to execute a foreign exchange transaction related to a planned sale of one of the client’s foreign subsidiaries. HSBC was selected to execute the foreign exchange transaction – which was going to require converting approximately $3.5 billion in sales proceeds into British Pound Sterling – in October 2011. HSBC’s agreement with the client required the bank to keep the details of the client’s planned transaction confidential. Instead, Johnson misused confidential information he received about the client’s transaction to cheat the client out of millions of dollars, the evidence showed.
Shortly before the transaction, Johnson and other traders acting under his direction purchased Pounds Sterling for their own benefit in their HSBC “proprietary” accounts. Johnson then caused the $3.5 billion foreign exchange transaction to be executed in a manner that was designed to “ramp,” or drive up, the price of the Pound Sterling, benefiting their proprietary positions and HSBC at the expense of their client. As part of the scheme, Johnson and his co-conspirators also made misrepresentations to the client about the transaction that concealed the self-serving nature of their actions. The evidence showed that in total, Johnson and the traders he supervised generated HSBC profits of roughly $7.3 million from the execution of the transaction, including profits generated from the front-running conduct.
The investigation was conducted by the FDIC’s Office of Inspector General and the FBI’s Washington Field Office. Assistant Chiefs Carol L. Sipperly and Brian R. Young and Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lauren Elbert of the Eastern District of New York’s Business and Securities Fraud Section are prosecuting the case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country, focusing on cases of national significance and international scope. Fraud Section prosecutors have vast experience in investigating and prosecuting securities and financial fraud, health care fraud and foreign corruption. The Section is routinely the national leader in large, sophisticated white collar investigations and prosecutions, frequently in partnership with U.S. Attorneys’ Offices and in coordination with foreign law enforcement agencies. Learn more about the Criminal Division’s Fraud Section at: https://www.justice.gov/criminal-fraud.
Former Head of HSBC’s Global Foreign Exchange Cash Trading Sentenced to 24 Months’ Imprisonment for Front-Running SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Mark Johnson, the former head of global foreign exchange cash trading at HSBC Bank plc, a subsidiary of HSBC Holdings plc (collectively HSBC), was sentenced by United States District Judge Nicholas G. Garaufis to 24 months’ imprisonment for committing wire fraud and wire fraud conspiracy, to be followed by five years’ supervised release. The Court also ordered Johnson to pay a $300,000 fine. Johnson was convicted by a federal jury in October 2017, following a four-week trial, of one count of wire fraud conspiracy and eight counts of wire fraud. The Court remanded Johnson to the custody of the Bureau of Prisons.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) and Assistant Director-in-Charge Nancy McNamara, Federal Bureau of Investigation, Washington Field Office (FBI), announced the sentence.
“Mark Johnson exploited confidential information and betrayed a client in order to generate profits for HSBC and enrich himself,” stated United States Attorney Donoghue. “Johnson has been held accountable for his crimes and today’s sentence should serve as a deterrent to fraudsters seeking to cheat their victims by manipulating important benchmarks, such as the FX spot fixings. This Office, together with our law enforcement partners, is committed to bringing to justice those who undermine public confidence in the operation of the financial markets through such schemes.”
“Mark Johnson, an executive at one of the world’s largest financial institutions, cheated his client out of millions and now he’s going to prison for it,” stated Acting Assistant Attorney General Cronan. “This sentencing should serve as a warning to those who engage in crooked financial schemes: The Justice Department’s Criminal Division and our law enforcement partners are watching. We are committed to protecting our financial system from harm and we will hold corporate executives accountable for their crimes.”
“Today’s sentencing holds Mr. Johnson accountable for his egregious conduct to improperly manipulate the foreign currency market, misuse his position, and breach the customers’ trust,” stated FDIC Inspector General Lerner. “We are dedicated to working with our law enforcement partners in order to combat crimes that undermine the integrity of financial institutions and bring culpable bank insiders to justice.”
“Leaders of financial service organizations such as HSBC are held to the utmost standard of integrity, which Mark Johnson failed to uphold,” stated FBI Assistant Director-in-Charge McNamara. “The FBI will not falter in assuring that justice will be brought to those that use company finances for their own personal gain.”
As established at trial, HSBC was selected in 2011 to execute a foreign exchange transaction on behalf of a client, which would require converting approximately $3.5 billion into British Pounds Sterling. HSBC’s agreement with the client required the bank to keep the details of the planned transaction confidential. Instead, Johnson misused that confidential information, defrauding the client.
Shortly before the transaction, which occurred in December 2011, Johnson and other traders acting under his direction purchased Pounds Sterling for HSBC’s benefit in their HSBC “proprietary” accounts. Johnson then caused the $3.5 billion foreign exchange transaction to be executed in a manner designed to “ramp,” or drive up, the price of the Pounds Sterling, benefiting their proprietary positions and HSBC at the expense of their client.
As part of their scheme, Johnson and his co-conspirators made misrepresentations to the client about the transaction that concealed the self-serving nature of their actions. In total, Johnson and the traders he supervised generated profits for HSBC of roughly $7.3 million from the execution of the transaction.
The investigation was conducted by the FDIC’s Office of Inspector General and the FBI’s Washington Field Office. Assistant Chiefs Carol Sipperly and Brian Young and Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lauren Elbert of the Eastern District of New York’s Business and Securities Fraud Section are prosecuting the case.
The Defendant:
Mark Johnson
Age: 51
Residence: United KingdomE.D.N.Y. Docket No. 16-CR-457
Former Employee of U.S. Government Contractor in Afghanistan Pleads Guilty to Foreign Transportation of Approximately $104,000 in Stolen MoneyRead the Press Release
A former employee of a U.S. government contractor in Afghanistan pleaded guilty today to foreign transportation of approximately $104,000 in stolen money. The former employee admitted stealing the money from another employee who received the money in illegal kickbacks from an Afghan subcontractor in return for that employee’s assistance in obtaining subcontracts on a U.S. government contract.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Special Agent in Charge John Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office-Atlanta Resident Agency, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko and Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) made the announcement.
Frantz Florville, 33, of Columbus, Ohio, was charged in an information filed on April 5, in the Southern District of Ohio with one count of foreign transportation of stolen money. He pleaded guilty to the information before U.S. Chief District Judge Edmund A. Sargus Jr. of the Southern District of Ohio, in Columbus. A sentencing date has not been scheduled.
As part of his plea, Florville admitted that he worked in Afghanistan as a project specialist for an American defense contractor in Kabul, Afghanistan (the Prime Contractor). As part of his duties, Florville worked for the Prime Contractor on an approximately $8 million contract with the U.S. Department of Defense.
Florville admitted that in the spring of 2016, he became suspicious that another employee of the Prime Contractor, Nebraska McAlpine, was taking illegal kickbacks from an Afghan contractor in return for McAlpine’s assistance in the Afghan contractor’s companies seeking and acquiring subcontracts under the Department of Defense contract. As a result, Florville admittedly took steps to record meetings between the Afghan contractor and McAlpine in May, June and July 2016 when those two met alone in McAlpine’s office at the secure facility in which the Prime Contractor’s employees lived. Those recordings confirmed for Florville that McAlpine was taking kickbacks from the Afghan contractor.
After the last recorded meeting and the departure of McAlpine and the Afghan contractor from McAlpine’s office, Florville admittedly went into McAlpine’s office, found a bag with $108,000 in U.S. currency in it, and, without McAlpine’s permission, took it. Florville admitted that he took the bag back to his own office, hid it and later that day took the money and hid it in his residential unit at the secure facility.
Florville further admitted that on July 16, 2016, he used $25,000 from the $108,000 stolen money to purchase nine diamonds from a jewelry shop at the secure facility. On the following day, Florville flew from Afghanistan to Dubai, United Arab Emirates. For that flight, he admittedly hid about $79,000 of the stolen money in boots that he purchased and altered for that purpose. In Dubai, before boarding a flight to the Philippines on July 18, 2016, Florville admittedly transferred the money into his backpack for the second flight and took the diamonds with him on these flights. Florville admitted that thereafter, he and his wife used the cash and diamonds that he had brought from Afghanistan for their personal purposes in the Philippines, where Florville then lived.
McAlpine previously pleaded guilty in the Northern District of Georgia to seeking and receiving illegal kickbacks on a U.S. government contract. On Nov. 28, 2017, he was sentenced there to 21 months in prison.
This matter was investigated by DCIS, SIGAR and Army CID-MPFU. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section is prosecuting the case, with assistance from the U.S. Attorney’s Office for the Southern District of Ohio.
Former Charlottesville Teacher Pleads Guilty to Producing Child PornographyRead the Press Release
WASHINGTON – A Charlottesville, Virginia man pleaded guilty today to a child pornography charge, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Thomas T. Cullen of the Western District of Virginia.
Richard Alan Wellbeloved-Stone, 57, pleaded guilty in the U.S. District Court for the Western District of Virginia to one count of production of child pornography.
Wellbeloved-Stone, a former high school teacher in Charlottesville, was discovered by law enforcement after chatting online with an undercover agent from the United Kingdom about sexually abusing a young child. A search warrant executed at Wellbeloved-Stone’s home recovered several images of child pornography produced by Wellbeloved-Stone of at least two young minor victims.
“The horrific nature of Richard Wellbeloved-Stone’s production of images depicting the sexual abuse of children is only compounded by the fact that he held a position of great societal trust and admiration as a teacher,” said Acting Assistant Attorney General Cronan. “The Criminal Division’s Child Exploitation and Obscenity Section will continue to work with its law enforcement partners to aggressively investigate and prosecute persons who exploit minors for sexual purposes and use technology to further victimize these children.”
“The defendant, who was entrusted by the community to protect our children, violated that sacred trust by committing these awful acts,” said U.S. Attorney Cullen. “I am thankful to those who stopped him from committing further crimes. As this case demonstrates, we will aggressively target those who prey on children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Charlottesville Police Department, the Virginia State Police and the Albemarle County Police Department.
This case is being prosecuted by Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Nancy Healey.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Beck Group Construction Manager and 8 Others Charged with Embezzling $3.4 MillionRead the Press Release
HOUSTON – A total of nine people have been charged with wire fraud and money laundering in connection with a scheme to embezzle $3.4 from the Beck Group in Houston, announced U.S. Attorney Ryan K. Patrick.
A 24-count indictment was unsealed today against seven defendants charged for their roles in the scheme - Hannah Musleh, 49, and Akram Elias Musleh, 54, both of Houston; Collette Devoe Hines, 49, and Lanamasha Hampton, 42, both of Atlanta, Georgia; Janell Crosby Quant, 38, of Union City, Georgia; Heather Ashley Sowa, 31, of Denver, Colorado; and William Lewis Sutton Jr., 48, of Los Angeles, California. A criminal information charging Moses Said, 42, of Houston, was filed yesterday, while a criminal complaint was previously filed against Charles Lee Williams, 42, of Los Angeles.
As a construction manager with the Beck Group, Said was in charge of the Le Meridien Hotel Project in downtown Houston from 2016 to 2017, according to court records. Hampton, Quant, Hines, Sowa, Hannah Musleh, Akram Musleh, Sutton and Williams allegedly created shell companies in the scheme which submitted false invoices to the Beck Group for payment for construction products that were not provided and construction services that were not performed.
Said allegedly approved and submitted the false invoices for payment, causing the Beck Group to issue payments to the shell companies. Upon receipt of the monies, the other seven defendants allegedly paid some of the fraud proceeds to Said. They allegedly attempted to conceal and disguise the nature and origin of the proceeds by transferring them to other companies and individuals.
If convicted, all face up to 20 years in prison and a possible $6.8 million maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is considered innocent until proven guilty in a court of law.###
Final Five Defendants in Methamphetamine Conspiracy SentencedRead the Press Release
Abingdon, VIRGINIA – The final five defendants convicted as part of a group that trafficked crystal methamphetamine into Southwest Virginia from sources in Tennessee and Kentucky were sentenced this week in federal court in Abingdon. United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring made the announcement.
“Crystal methamphetamine is a highly addictive and dangerous drug,” U.S. Attorney Cullen said today. “Disrupting and reducing the flow of this deadly substance into the Commonwealth will make our communities safer.”
“My office has worked hard to collaborate with the U.S. Attorney’s Office for the Western District of Virginia and federal, state, and local law enforcement to crack down on those who transport dangerous drugs into Southwest Virginia for distribution,” Virginia Attorney General Herring said today. “We appreciate the hard work and dedication of our law enforcement partners and will continue to aggressively prosecute those who endanger the lives of our citizens.”
Rick Jeremy Sturgill, 41, of Jonesville, Va., was sentenced today to 228 months’ imprisonment. Sturgill previously pleaded guilty to one count of possession with the intent to distribute and distributing 50 grams or more of methamphetamine, maintaining a place for the purpose of distributing or using a controlled substance, and possession of a firearm in furtherance of a drug trafficking crime. Tony Lynn Ketron, 28, of Church Hill, Tn., was also sentenced today to 228 months’ imprisonment. Ketron previously pleaded guilty to conspiring to distribute 50 grams or more of methamphetamine, two counts of distributing methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a previously convicted felon.
On Wednesday, Jason Dale Moore, 36, of Jonesville, was sentenced to 72 months in prison for his role in the conspiracy. Earlier this week, William Benjamin Brewer, 36, of Jonesville, was sentenced to 30 months in prison and Kristina Burton, 44, of Jonesville, was sentenced to 37 months in prison. Moore, Brewer, and Burton each previously pleaded guilty to conspiring to possess with the intent to distribute and to distribute 5 grams or more of methamphetamine.
Earlier this month, two other members of the conspiracy were sentenced for their roles in the enterprise. Todd Conyer was sentenced to 60 months and Leslie Ann Clasby was sentenced to 84 months.
According to evidence presented at previous hearings by Virginia Assistant Attorney General and Special Assistant United States Attorney Suzanne Kerney-Quillen and Assistant United States Attorney Randy Ramseyer, the defendants engaged in a conspiracy to distribute and possess with the intent to distribute crystal ice methamphetamine from April 1, 2016, through November 7, 2016. Court documents demonstrated that the conspiracy involved over 50 grams of crystal ice methamphetamine, acquired from multiple sources in Tennessee and Kentucky, and several firearms. Numerous undercover purchases of crystal ice were conducted by the Southwest Virginia Drug Task Force at Sturgill’s residence in Jonesville, Virginia, where much of the activity concerning the conspiracy occurred.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Lee County Sheriff’s Office, the Scott County Sheriff’s Office, the Virginia State Police, the Jonesville Police Department, and the Southwest Virginia Drug Task Force investigated the case. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States against Leslie Ann Clasby. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States against all other defendants.
Felon Charged with Illegally Possessing Heroin, Guns and AmmunitionRead the Press Release
PITTSBURGH – A resident of the City of Pittsburgh and Detroit, Michigan, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count indictment, returned on April 25, named Jerome Wilburn, aka Jerome Hill, aka John Hill, aka Jerome Webb, aka Jerome Williams, aka Partello Road, age 53, as the sole defendant.
According to the Indictment, on March 22, 2018, Wilburn conspired with others to distribute and to possess with intent to distribute 100 grams or more of Heroin. The Indictment also alleges that on March 22, 2018, Wilburn possessed with intent to distribute 100 grams or more of Heroin. In addition, on that date, Wilburn possessed a 9 mm caliber semi-automatic Jiminez Arms pistol, a Hi Point Model C9 9 mm Serial No. P1790088, and ammunition, after having been convicted of a previous felony drug trafficking offense.
The defendant faces a maximum total penalty of not less than 10 years and up to life in prison, a fine of $8,000,000, 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 is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the Indictment in this case with valuable assistance from the Pennsylvania State Police. 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.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal grand jury indicts two for stealing $536,000 from children’s meal programRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that a federal grand jury returned charges against two Shreveport individuals who ran a nonprofit corporation for stealing more than $536,000 from a program meant to supply meals to children during the summer.
Lynn D. Cawthorne, 51, and Belena C. Turner, 46, both of Shreveport, are charged with one count of conspiracy to commit wire fraud and seven counts of wire fraud. According to the indictment, the Food and Nutrition Service is an agency of the U.S. Department of Agriculture, which administers the Child Nutrition Programs. The Child Nutrition Programs include the Summer Feeding Service Program (SFSP), which was established to ensure that children in low-income areas continue to receive nutritious meals when school is not in session during the summer.
United Citizens and Neighborhoods (UCAN) is a non-profit corporation that participated as a sponsor in the SFSP. Cawthorne is the president of UCAN, and Turner is the director, representing herself to be its executive director. Cawthorne Catering and Harvest Catering Inc. are businesses that allegedly provided catering services for UCAN. Beginning sometime in early 2011 and continuing until sometime in December 2015, the defendants fraudulently obtained more than $536,000 from the SFSP by engaging in numerous activities to defraud, included filing claims for reimbursement that greatly inflated the number of eligible meals provided, thus claiming more children were fed at UCAN sites than were actually fed. Also money was transferred to the catering companies and other entities so that the defendants could improperly use funds that were entrusted to UCAN for the SFSP.
The defendants face 20 years in prison, three years of supervised release, restitution and a $250,000 fine for each count.
The Louisiana State Inspector General, Caddo Parish Sheriff’s Office, FBI and the U.S. Department of Agriculture - Office of Inspector General investigated the case. First Assistant U.S. Attorney Alexander C. Van Hook and Assistant U.S. Attorney Tennille M. Gilreath are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Federal Inmate Pleads Guilty to Weapon ChargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that an inmate at the Federal Correctional Institution at Beckley pled guilty to possession of a weapon at the prison. Stuart praised the efforts of the Bureau of Prisons (BOP).
“My Office takes these offenses very seriously and works closely with BOP investigators to prosecute offenders to the fullest extent of the law,” said United States Attorney Mike Stuart.
Richard Ray Guerrero, 33, admitted that on June 30, 2017, he possessed a weapon which he made. It consisted of a belt attached to two combination locks. The weapon was seized from him by a Federal Bureau of Prisons staff member. Guerrero faces up to five years in prison, consecutive to the sentence he is now serving, when he is sentenced on August 8, 2018.
United States District Judge Irene C. Berger presided at the plea hearing. This case is being prosecuted by Assistant United States Attorney John File.
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Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following:
Horry County Man Indicted for Illegal Re-entry into the United States After Deportation. Domingo Alvarado-Gomez of Horry County, South Carolina, was charged in a single-count indictment with illegal re-entry into the United States after deportation, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Alvarado-Gomez could receive is two years imprisonment and a fine of $250,000.00.
The case was investigated by Immigration and Customs Enforcement-Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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FBI Wiretap Results in Five-Year Sentence for Wilmington Drug DealerRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that Preston Stewart, a/k/a “Pusha,” 35, of Wilmington, was sentenced to five years’ incarceration by Chief U.S. District Judge Leonard P. Stark following convictions for two counts of possession with intent to distribute 500 grams or more of cocaine.
According to filings in the case and statements made in open court, Stewart purchased one kilogram of cocaine from a co-defendant in the fall of 2016. When the cocaine weighed less than expected, Stewart called back and complained. Search warrants executed later in the investigation found over 500 grams of cocaine in a residence tied to Stewart.
This case is the result of an investigation led by the FBI Delaware Violent Crime Safe Streets Task Force with assistance from the Wilmington Police Department and the Delaware Attorney General’s Office. The FBI Delaware Violent Crime Safe Streets Taskforce is a part of the New Castle County HIDTA. The Task Force is comprised of law enforcement officers from the Delaware State Police, Delaware Department Probation Parole, New Castle County Police Department, University of Delaware Police Department, and Wilmington Police Department. The case was prosecuted by Special Assistant U.S. Attorney Christopher L. de Barrena-Sarobe and Assistant U.S. Attorney Alexander S. Mackler.
Drug Enforcement Administration (DEA) to Hold 15th Prescription Drug Take-Back Day This SaturdayRead the Press Release
Memphis, TN – U.S. Attorney D. Michael Dunavant for the Western District of Tennessee will join the Drug Enforcement Administration on April 28, 2018 for its 15th Annual Prescription Drug Take-Back Day. The biannual event will be held from 10 a.m. to 2 p.m. at thousands of collection sites around the country, including here at Kroger, 7615 Highway 70 Bartlett, TN. This one-day event will make it convenient for the public to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Last October Americans turned in 456 tons (912,305 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 14 previous Take-Back events, DEA and its partners have taken in over 8.1 million pounds, more than 4,508 tons of pills. The disposal service is free and anonymous, no questions asked.
U.S. Attorney D. Michael Dunavant said: "Addressing the opioid crisis in our communities requires a comprehensive approach which includes prevention, education, treatment, and enforcement. The DEA National Prescription Drug Take-Back event allows everyone to participate in prevention and education that promotes public safety, and I encourage all West Tennesseans to turn in your unused, unwanted, and expired medications. Together, we can prevent addiction, injury and death, and educate the public about the dangers of prescription drug abuse."
Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
James Catalano, DEA, Memphis Resident Agent in Charge said, "DEA is committed to making our communities safer by raising public awareness about the dangers of prescription drug abuse. The Prescription Drug Take-Back program will allow Americans to properly and safely dispose of their prescription medication that could otherwise be abused for non-medical purposes. Simply turn in your unused and unneeded medication at any of the numerous designated locations throughout West Tennessee. This is just one example of how DEA is working hand-in-hand with its law enforcement and community partners in an effort to stem the tide of prescription opioid abuse."
For more information or to locate a collection site near you, go to the DEA Prescription Drug Take-Back Day web site at https://takebackday.dea.gov where you can search by zip code, city or state.
District Man Sentenced to Seven Years in Prison for Attacking Owner of Northwest Washington Convenience StoreRead the Press Release
WASHINGTON - Michael Jones, 45, of Washington, D.C., was sentenced today to seven years in prison for attacking and attempting to rob the owner of a market in Northwest Washington, while armed with a box-cutter, U.S. Attorney Jessie K. Liu announced.
Jones was found guilty by a jury in February 2018 of a charge of assault with intent to commit robbery while armed. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Todd E. Edelman to a 15-year term of incarceration, with all but seven years suspended on the condition that he successfully complete two years of supervised probation upon his release from prison.
According to the government’s evidence, the crime took place on Oct. 14, 2017, at approximately 10 p.m., at a convenience store in the 5500 block of Illinois Avenue NW. Jones came into the market and walked up to the store owner. He brandished a box-cutter, ejected a rusty blade, and demanded money. Fearing for the safety of himself and his pregnant fiancée who was in the store at the time, the owner pushed Jones. Jones then turned toward the store owner’s pregnant fiancée, who ran out of the store. Jones followed outside.
Witnesses followed Jones from a distance as they called 911. Soon after that, officers with the Metropolitan Police Department (MPD) stopped Jones, recovered a box-cutter, and arrested him. Jones has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Veronica Sanchez and Kacie Weston; Supervisory Paralegal Specialist Lynda Randolph; Paralegal Specialists Allison Daniels and Tierra Nanches, and Victim/Witness Advocate Diana Lim. Finally, she expressed appreciation for the work of Assistant U.S. Attorneys Matthew Kahn and Emile Thompson, who investigated and prosecuted the case.
District Man Pleads Guilty to Federal Firearm Offense for 2016 Attack on Postal Carrier in Northeast WashingtonRead the Press Release
WASHINGTON – Jerome A. Proctor, Jr., 24, of Washington, D.C., pled guilty today to discharging a firearm during an armed robbery of a United States Postal Service (USPS) Letter Carrier who was delivering mail in Northeast Washington, announced U.S. Attorney Jessie K. Liu, Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Proctor pled guilty before the Honorable Christopher R. Cooper in the U.S. District Court for the District of Columbia, to using, carrying, and possessing a firearm during a crime of violence. Because the firearm was discharged during the commission of the offense, Proctor faces a mandatory 10 years of incarceration, which must run consecutive to any other sentence. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 10 years in prison. He is scheduled to be sentenced by Judge Cooper on July 17, 2018.
The government’s evidence established that on Nov. 26, 2016, at approximately 6 p.m., Proctor and an associate attacked the victim in the 2300 block of 2nd Street NE. The victim was completing mail deliveries on his route and Proctor brandished a black semi-automatic handgun and pointed it towards the letter carrier’s head. Proctor then kicked and pistol-whipped the victim while he was on the ground and his associate went through the victim’s pockets, taking the victim’s cell phone, personal keys, and wallet, containing identification and debit cards. Property of the U.S. Postal Service was also taken, including a mail satchel and scanner.
A vehicle drove up during the assault and robbery, at which point Proctor fired a single shot into the air in an attempt to scare off the driver of the vehicle. The driver of the vehicle heard the gunshot, and fearing for her safety, sped away, with the letter carrier chasing after the vehicle. Shortly after the assault and robbery, Proctor and his associate could be seen together on video footage from the Fashion Centre mall at Pentagon City in Arlington, Va., where Proctor’s associate attempted to use a debit card stolen from the letter carrier at the food court.
Proctor was arrested in December 2016 in Prince George’s County, Md. and he has been in custody ever since. He was indicted in this case in May 2017.
During the assault on the letter carrier, Proctor commented that the victim got “blood on his new Timberlands.” During the course of the investigation, the victim’s blood was identified on a stain on a pair of jeans recovered from the residence where Proctor was arrested.
At the time of his arrest in Maryland, Proctor was on probation in Maryland for a firearms conviction. Proctor’s probation was revoked by Maryland and he was re-sentenced to serve the three-year sentence that had previously been suspended. That sentence must run consecutive to the sentence in this case.
In announcing the plea, U.S. Attorney Liu, Inspector in Charge Wemyss, and Chief Newsham commended the work of the U.S. Postal Inspection Service and MPD officers in the Fifth District in quickly investigating and arresting Proctor. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Laura Crane of the Violent Crime and Narcotics Trafficking Section, Paralegal Specialist Rommel Pachoca, and Legal Assistant Peter Gaboton.
Defendants Apprehended in International Waters Plead Guilty to Intent to Distribute 720 Kilos of CocaineRead the Press Release
COLUMBUS, Ohio – All four defendants charged in a narcotics conspiracy case after being captured in international waters near the Galapagos Islands have pleaded guilty. The co-conspirators were transported to Columbus in September 2017 for federal prosecution after being apprehended with approximately 720 kilograms of cocaine.
The more than 1,584 pounds of cocaine has an approximate street value of $25 million in total.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and Commandant of the U.S. Coast Guard, Adm. Paul Zukunft announced the pleas.
According to the affidavit filed in support of the criminal complaint in this case, Ecuadorian nationals Hernan Emilio Caldas-Estupinan, Oscar Alipio Chila-Mendez, Carlos Alfredo Escobar-Estupinan and Mexican national Jesus Antonio Ramos-Chirino were detected in a dual engine speed boat on August 18 northwest of the Galapagos Islands in the Pacific Ocean.
The United States Coast Guard cutter James was dispatched to interdict the vessel in international waters and conduct a Right of Visit boarding. The watercraft had no flag flown, no registration documents, no registration number, homeport or name on the hull of the vessel, no identification of a sailing master and no claim of nationality for the vessel.
As part of its interdiction efforts, the James launched a helicopter and two patrol craft to approach the boat. When the defendants detected the helicopter and patrol craft, they began to jettison numerous packages from the vessel while attempting to flee from the helicopter.
The Coast Guard helicopter fired warning shots in an attempt to halt the flight, and when those warning shots went unheeded, the helicopter employed disabling fire. Once the vessel had been disabled, one of the patrol craft launched from the James took control of the vessel.
Coast Guard personnel collected the 25 packages that had been thrown from the boat and discovered that they contained approximately 720 kilograms of cocaine.
Each of the four defendants pleaded guilty to conspiracy to possess with intent to distribute five kilograms of more of cocaine while on board a vessel subject to the jurisdiction of the United States, a crime punishable by 10 years to life in prison.
U.S. Attorney Glassman commended the investigation of this case by the DEA and United States Coast Guard, as well as Assistant United States Attorneys David DeVillers and Jonathan Grey, who are prosecuting the case.
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David A. Hickman Sentenced to 20 Years in Federal Prison for Using Fire and Explosives to Damage and Destroy Buildings Used in Interstate CommerceRead the Press Release
ALBUQUERQUE – U.S. District Judge Judith C. Herrera today sentenced David A. Hickman, 29, of Albuquerque, N.M., to 20 years of imprisonment for his conviction on five arson charges, which he pled guilty to under an agreement in which he also acknowledged committing or attempting to commit four additional arsons. Hickman will be on supervised release for three years after completing his prison sentence. Hickman also was ordered to pay $406,348 in restitution to Starbucks, one of the businesses that was a victim of Hickman’s criminal conduct. The Judge will enter orders of restitution as to the other victims at a later date.
Hickman’s sentence was announced by U.S. Attorney John C. Anderson, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Michael Geier of the Albuquerque Police Department (APD), and Chief Paul Dow of the Albuquerque Fire Department.
“Today a dangerous individual who terrorized the residents of Albuquerque in November of 2016 through a series of deliberate and premeditated violent acts that targeted innocent victims was sentenced for the devastating damage and destruction he maliciously caused,” said U.S. Attorney John C. Anderson. “I commend the Albuquerque Fire and Police Departments for their heroic efforts to apprehend David Hickman and bring him to justice without the loss of human life, and the FBI and ATF for their steadfast commitment to working with their local partners to safeguard the Albuquerque community.”
“For several days in November 2016, when Albuquerque residents should have been enjoying the Thanksgiving holiday and time with their families, our city was hit by a wave of arsons that put a lot of people on edge,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “Federal, state, and local law enforcement agencies quickly sprang into action, working together to do what we do best: Protect the American people, and catch those who would do harm. The FBI is proud to have been a part of a team that didn't rest until the person responsible for these malicious fires was brought to justice.”
“I want to commend the efforts of the ATF agents and members of the ATF National Response Team who worked so tirelessly in bringing justice to the people of Albuquerque,” said Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the ATF. “I hope today’s sentence brings resolution not only to the victims but to the business owners that were equally affected.”
Chief Michael Geier of the Albuquerque Police Department added, “The cooperation between all partners in this case epitomizes our vision of ‘One Albuquerque,’ in which we all work together to make communities safe.”
“The arrest, prosecution, and sentencing was yet another example of a successful collaboration between our local, state, and federal agencies working together to protect our citizens and great city,” said Chief Paul Dow of the Albuquerque Fire Department.”
Hickman was arrested on Nov. 28, 2016, on a criminal complaint charging him with maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, a building, an Old Navy store located in Albuquerque, used in interstate commerce on Nov. 26, 2016. APD officers arrested Hickman in the early hours of Nov. 26, 2016, and later transferred him into the custody of the FBI. Hickman was arrested shortly after an APD officer responded to the Pavilions at San Mateo shopping center after hearing “small explosions” coming from the area. When the officer arrived at the shopping center, he observed Hickman running into and out of the Old Navy store located in the shopping center, which was on fire. Hickman was indicted on one count of maliciously damaging a building, the Old Navy store, by fire on Dec. 20, 2016.
Hickman pled guilty on Oct. 11, 2017, to five counts of damaging and destroying buildings used in interstate commerce by fire or explosive. Although Hickman pled guilty to five arson counts, in his plea agreement, Hickman acknowledged igniting arson fires that damaged or destroyed nine businesses engaged in interstate commerce in Albuquerque between Nov. 16, 2016 and Nov. 26, 2106. In entering the guilty plea, Hickman admitted that, between Nov. 16, 2016 and Nov. 26, 2016, he ignited and attempted to ignite nine separate fires at the following businesses in Albuquerque:
- Starbucks Coffee Shop, located at 800 Broadway Blvd. NE;
- Project Defending Life, located at 625 San Mateo Blvd. NE;
- Carlisle Condominiums, located at 3600 Central Ave. SE;
- Starbucks Coffee Shop, located at 5301 Gibson Blvd. SE;
- Starbucks Coffee Shop, located at 4407 Lomas Blvd. NE;
- Starbucks Coffee Shop, located at 3400 Central Ave. SE;
- Barnes & Noble Bookstore, located at the Coronado Mall at 6600 Menaul Blvd. NE;
- Shred-it, located at 1415 Broadway Blvd. NE; and
- Old Navy, located at 4900 Cutler Ave. NE.
However, Hickman entered guilty pleas to committing five arsons that damaged and destroyed the following businesses:
- Igniting the fire at the Carlisle Condominiums located at 3600 Central Ave. SE, on Nov. 23, 2016, by using glass Mason jars filled with ignitable liquid. The Carlisle Condominiums were under construction and approximately 80% complete when Hickman broke into the construction site and ignited the fire. The damages caused by the fire exceeded $8 million.
- Setting the fire at the Starbucks Coffee Shop located at 5301 Gibson Blvd. SE, on Nov. 25, 2016, by firing a gun into a glass door so he could enter the shop, and throwing glass Mason jar devices into the building together with firecrackers and a kerosene container that would ignite and fuel the fire.
- Setting the fire at the Shred-it building located at 1415 Broadway Blvd NE, on Nov. 26, 2016, by firing a gun into a glass door so he could enter the building and use glass Mason jar devices and road flares to ignite fires in the building.
- Setting the fire at the Barnes & Noble bookstore building located at the Coronado Mall at 6600 Menaul Blvd. NE, on Nov. 26, 2016, by firing a gun into a glass door so he could enter the building and use glass Mason jar devices and a road flare to ignite fires in the store. The damages caused by the fire exceeded $800,000.
- Setting the fire at the Old Navy store located in Albuquerque on Nov. 26, 2016, by shooting several rounds from an assault rifle into the windows of the store so he could enter the store and ignite several fires inside the store using glass Mason jar devices with a road flare. The damages caused by the fire exceeded $690,000.
APD arrested Hickman shortly after he departed the Old Navy store. At the time of arrest, Hickman was wearing a holster with a handgun and had a flare in his belt. In Hickman’s vehicle, APD officers found an assault rifle, glass Mason jar devices, tape, ammunition, kerosene, tannerite, and motor oil. While executing a search warrant at Hickman’s residence, officers found similar materials.
Hickman has been in federal custody since his arrest.The Albuquerque Division of the FBI, the Albuquerque office of the ATF, ATF’s National Response Team, the Albuquerque Police Department, and the Albuquerque Fire Department conducted the investigation of this case. Assistant U.S. Attorney Fred J. Federici prosecuted the case.
DEA Prepares for Prescription Drug Takeback DayRead the Press Release
United States Attorney Peter E. Deegan, Jr. encourages the public to participate in the Drug Enforcement Administration’s National Prescription Drug Takeback Day. The biannual event will be held from 10 a.m. to 2 p.m. on Saturday, April 28, 2018, at thousands of collection sites around the country, including over 50 here in the Northern District of Iowa. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
United States Attorney Deegan stated, “Our country is in the midst of an opioid and prescription drug abuse epidemic. Drug overdose is now the leading cause of death for Americans under age 50.” Deegan added, “Our communities can help combat this epidemic by taking time to get rid of outdated unused prescription drugs. The DEA’s National Takeback Initiative provides an anonymous and free opportunity to get rid of these unneeded pills.”
Last October, Americans turned in 456 tons (912,305 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 14 previous Take Back events, DEA and its partners have taken in over 9 million pounds—more than 4,500 tons—of pills. The disposal service is free and anonymous, no questions asked. The DEA cannot accept liquids, needles, or sharps, only pills or patches.
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
Collection sites will be set up throughout communities nationwide. To locate a collection site near you, go the DEA Office of Diversion Control website at https://www.deadiversion.usdoj.gov/drug_disposal/takeback where you can search by zip code, city, or state. The service is free and anonymous.
Follow us on Twitter @USAO_NDIA.
Crescent Man Sentenced to 33 Months in Prison for Cyberstalking Public School TeacherRead the Press Release
OKLAHOMA CITY – TROY ALLEN MARTIN, 46, of Crescent, has been sentenced to 33 months in federal prison for cyberstalking, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On October 3, 2017, a federal grand jury indicted Martin on two counts of cyberstalking. He pleaded guilty to one of those counts on November 28, 2017, before United States District Judge Stephen P. Friot.
According to court records, Martin met an Oklahoma public school teacher (who did not live in Crescent) through a dating website. After a brief romantic relationship, he acquired nude photographs of her, which he used to extort money from her. His texts included: "So how much is it worth not to send [the] pictures?" The teacher responded: "Please don’t do this to me." Martin wrote: "No u hurt me so now I want something for it." The teacher asked Martin what he wanted, and he texted back: "Money." At first, he demanded $100,000; he ultimately extorted $50,000 from her. Martin threatened to send the nude pictures to the teacher’s school and family. He also threatened to post them on YouTube and Facebook and to send them to her realtor and to otherwise thwart the sale of her home.
In addition to threatening to disseminate nude pictures of the teacher, Martin repeatedly harassed her through constant phone calls and text messages, sometimes using spoofed phone numbers. He threatened repeatedly to call her family members during the night on an untraceable number. He also threatened physical harm to her family through text messages, such as: "I will hire someone if u know what I mean[.] I have money."
In a statement to the court, the teacher stated that her life began to be consumed by trying to placate Martin so he would not disseminate her nude photos and ruin her career and reputation. She said she felt like his puppet and was "petrified."
On April 24, 2018, Judge Friot sentenced Martin to 33 months’ imprisonment. At the sentencing hearing, the court took into consideration Martin’s having engaged in similar conduct with other women. In adjudging his sentence, Judge Friot stated society must know that this type of criminal behavior can result in imprisonment.
In addition to the 33-month sentence, Judge Friot ordered Martin to pay $50,000 in restitution to the victim, to pay a $5,000 fine, and to serve three years of supervised release after his prison term.
This case is the result of an investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Brandon Hale prosecuted the case.
Reference is made to public filings for further information.
Corpus Christi Doctor Admits to Keeping False Prescription RecordsRead the Press Release
CORPUS CHRISTI, Texas - A 51-year-old Corpus Christi physician has admitted he furnished false information in a record of dispensed controlled substances, announced U.S. Attorney Ryan K. Patrick.
Dr. Michael Jerome Pendleton pleaded guilty today. At the hearing, the court also heard that in February 2017, the Texas Medical Board found Pendleton was operating an unregistered pain clinic and that he had surrendered his Drug Enforcement Administration (DEA) registration license.
According to Title 21 of the Code of Federal Regulations, a registered individual practitioner is required to keep records of controlled substances listed in Schedules II, II, IV and V if the practitioner regularly engages in the dispensing or administrating of controlled substances.
Starting in September 2013, law enforcement initiated an investigation into Pendleton’s practice based on his prescription writing practices that included a high number of proscriptions for controlled substances. Law enforcement conducted eight undercover visits to Pendleton’s office. During seven of those occasions, Pendleton prescribed hydrocodone - a Schedule II drug under the Controlled Substance Act.
In November 2016, agents executed a search warrant on Pendleton’s office and seized several documents. The investigation revealed Pendleton had omitted from his records information he was required to provide including the hydrocodone he had distributed to the undercover agents.
Sentencing has been set before Senior U.S. District Judge John D. Rainey on July17, 2018. At that time, Pendleton faces up to four years in federal prison and a possible $250,000 maximum fine.
The DEA, IRS-Criminal Investigation, Texas Department of Public Safety, Corpus Christi Police Department and the Texas Medical Board conducted the investigation as part of a joint task force. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
Colorado Man Faces Federal Charges after Allegedly Driving 15-Year-Old Girl Through Multiple States and Producing Child PornographyRead the Press Release
SANTA ANA, California – A previously convicted sex offender from Colorado has been indicted by a federal grand jury on a series of child exploitation charges after allegedly meeting a 15-year-old girl in Colorado, taking her on a 3½-month road trip that ended in Southern California, and producing child pornography that depicted sexual acts with the victim.
Kenneth Wayne Fisher, 42, of Colorado Springs, Colorado, was named in an eight-count indictment filed late Wednesday.
Fisher allegedly took the victim through multiple states on a trip that ended on November 16, 2015 after a high-speed police chase that concluded when Fisher ran out of gas on the 405 freeway near Seal Beach.
The indictment charges Fisher with:
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enticement to travel in interstate commerce to engage in criminal sexual activity;
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transportation of a minor to engage in criminal sexual activity;
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production of child pornography;
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transportation of child pornography;
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possession of child pornography; and
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three counts of commission of a felony offense involving a minor while required to register as a sex offender.
The indictment alleges that Fisher was convicted in an Alabama state court in 2000 of sexual abuse in the second degree, which is why he was required to register as a sex offender.
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.
If he is convicted of the offenses alleged in the indictment, Fisher faces a potential sentence of life without parole in federal prison. In Fisher’s case, because of his prior conviction and requirement to register as a sex offender, the charge of producing child pornography carries a mandatory minimum sentence of 35 years in prison.
Fisher is currently in federal custody in Kansas where he faces sentencing for robbing a bank during his trip with the victim.
This case is the result of an investigation by the Federal Bureau of Investigation and the Fountain Valley Police Department. The Colorado Springs Police Department conducted the missing persons investigation, and the California Highway Patrol assisted the Fountain Valley Police Department during the chase that culminated with Fisher’s arrest.
This case is being prosecuted by Assistant United States Attorney Gregory S. Scally of the Santa Ana Branch Office.
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Clearfield County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Houtzdale, Pa. pleaded guilty in federal court to a charge of possession of child pornography, United States Attorney Scott W. Brady announced today.
Ellis D. Passmore, Jr., 46, pleaded guilty before United States District Judge Kim R. Gibson.
In connection to the guilty plea, the court was advised that on Oct. 5, 2015, Passmore knowingly possessed pictures and videos in individual computer graphic files, which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for August 21, 2018 at 10 a.m. The law provides for a maximum total sentence of 40 years 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, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Pennsylvania State Police, Clearfield Barracks, conducted the investigation leading to the successful prosecution of Passmore.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cincinnati Physician Sentenced to 60 Months for Illegal Distribution of Oxycodone PillsRead the Press Release
LEXINGTON, Ky. – A Cincinnati physician, who was convicted of illegally distributing oxycodone pills, was sentenced yesterday to 60 months in federal prison and a fine of $500,000.
Chief U.S. District Judge Karen K. Caldwell sentenced 61 year old Alan Arnold Godofsky for illegally distributing large quantities of oxycodone pills, outside the scope of professional practice and not for a legitimate medical purpose.
Testimony at his trial revealed that Godofsky was hired as a locum tenens physician at the Central Kentucky Bariatric and Pain Management clinic in Georgetown, where he wrote prescriptions for primarily oxycodone pills. According to testimony at trial, Godofsky conducted minimal exams, spending very little time with patients (some who were cooperating witnesses for the government) before prescribing large quantities of oxycodone pills. During his relatively brief employment at the clinic, Godofsky prescribed in excess of 500,000 oxycodone pills.
A federal jury found Godofsky guilty of the charges in October 2017.
The owner of the clinic, Ernest William Singleton, was previously convicted of conspiring to illegally distribute oxycodone and money laundering offenses and three other physicians from the clinic also entered guilty pleas, for illegally distributing oxycodone pills while at the clinic.
“The Defendant’s conduct was a severe breach of the trust of his legitimate medical duty,” stated United States Attorney Robert M. Duncan, Jr. “His sentence should serve as a deterrent for other medical professionals who put greed over patient care and help fuel the opiate crisis through their unlawful actions.”
Under federal law, Godofsky must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years.
United States Attorney Duncan, and D. Christopher Evans, Special Agent in Charge, DEA, jointly announced the sentence.
The Drug Enforcement Administration conducted the investigation with assistance from the Kentucky State Police, Kentucky Board of Medical Licensure and the Kentucky Board of Pharmacy. Assistant U.S. Attorney Ron L. Walker, Jr. represented the United States.
Charleston Drug Dealer Sentenced to 10 Years in Federal Prison for Methamphetamine ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston man caught with methamphetamine and firearms in February 2017 was sentenced today to 10 years in prison, announced United States Attorney Mike Stuart. Derrick Houston, 39, previously pled guilty to possession with intent to distribute 50 grams or more of methamphetamine. Stuart commended the work of the Metropolitan Drug Enforcement Network Team (MDENT) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Drug dealing and gun violence happen far too often on Charleston’s West Side,” said United States Attorney Mike Stuart. “My office is working with our law enforcement partners and the West Side is on my priority target list.”
On February 28, 2017, officers with MDENT executed a search warrant at the defendant’s residence, 1201 Beech Avenue, in Charleston, West Virginia. During the search, officers located approximately 237 grams of methamphetamine hidden in the couch. Officers also located two firearms during the search. As part of the plea agreement, Houston admitted that he intended to distribute the methamphetamine.
Assistant United States Attorney Stephanie S. Taylor handled the prosecution. United States District Judge John T. Copenhaver, Jr. imposed the sentence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Charleston Career Offender Sentenced to Almost 16 Years in Federal Prison for Drug ChargeRead the Press Release
BECKLEY, W.Va. –A Charleston man was sentenced today to 188 months -- almost 16 years -- in prison for a federal drug crime, announced United States Attorney Mike Stuart. Clarence Murray, 41, previously pled guilty to distribution of heroin. Stuart praised the joint efforts of the Drug Enforcement Administration (DEA) and the Metropolitan Drug Enforcement Network Team (MDENT) for their work during this investigation.
“Gun-toting drug dealers cause fear and chaos in our communities,” said United States Attorney Mike Stuart. “16 years because this guy couldn’t figure out that selling drugs is just plain stupid. Now he gets to spend most of the rest of his good days behind bars, enjoying Christmas and Hanukah with other inmates instead of family. It would be funny if it weren’t so sad.”
Murray previously admitted that in February 2014, he sold heroin to a confidential informant working with law enforcement on two different occasions. Following the second controlled purchase, law enforcement executed a search warrant at Murray’s residence and seized over $2,500 in cash and a stolen Hi-Point .40 caliber pistol. The currency found in the search included previously recorded buy money used in one of the controlled purchases. Murray further admitted that he obtained the gun to protect himself because he was selling drugs.
Murray also admitted that on March 9, 2015, he sold heroin to a confidential informant working with law enforcement. The drug deal took place in Dunbar. He additionally admitted that he sold heroin to this same confidential informant on four different occasions. Murray further admitted that he sold heroin to a confidential informant in January 2016, and that he sold methamphetamine to a confidential informant in March 2016.
Assistant United States Attorney Timothy D. Boggess was in charge of the prosecution. United States District Judge Irene C. Berger imposed the sentence.
This case is 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, including methamphetamine. 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
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Cape Girardeau Man Pleads Guilty on Fraud ChargesRead the Press Release
The United States Attorney's Office announced that Darnell Moon, age 30, of Cape Girardeau, Missouri, pled guilty to five felony counts of Mail Fraud and one felony count of Wire Fraud. He appeared before United States District Judge Audrey G. Fleissig.
Moon admitted he solicited individuals to pose as employees of non-existent companies for the purpose of filing false tax returns and claiming fraudulent refunds. Moon created false W-2 forms for the purported employees in the names of the non-existent companies as the "employers." Moon would then either file or help the individual file a fraudulent tax return with the Internal Revenue Service. Based on the false tax return, the IRS would issue a tax refund that the individual would then split with Moon. These non-existent companies did not employ the individuals identified on the tax returns. Moon also falsely identified dependents for the individuals and also fraudulently claimed some of those dependents as qualifying children to obtain Earned Income Credit.
Moon pled guilty on April 26, 2018. His sentencing is set for May 23, 2018. Moon faces a maximum punishment of 20 years of imprisonment for each count and fines up to $250,000.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Paul W. Hahn handled the prosecution for the Government.
Camden Man Sentenced to 15 Years on Federal Firearm and Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Swan Nicoyis Jackson, age 22, of Camden, was sentenced yesterday in federal court to 180 months (15 years) imprisonment with 4 years of supervised release to follow. Jackson plead guilty in January to being a felon in possession of a firearm and possession with intent to distribute marijuana, all in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e) and Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(D), and 851. Senior United States District Judge Cameron McGowan Currie, of Columbia, imposed the sentence.
Evidence presented in court established that on morning of June 2, 2017, Kershaw County Sheriff’s Department deputies encountered Jackson and another male walking down railroad tracks near a neighborhood that had recent thefts. When deputies asked Jackson and the other male to stop, they both ran. Deputies could smell marijuana emanating from their direction. During the chase, Jackson fell and deputies were able to catch up to him and found a 9mm handgun in his pants pocket, along with marijuana. Further investigation revealed that the firearm had been reported stolen from a residence.
Jackson is prohibited under federal law from possessing firearms based upon his prior separate state convictions for possession of crack cocaine, possession with intent to distribute marijuana, distribution of crack cocaine (2 counts), distribution of crack cocaine near a school, possession with intent to distribute marijuana 2nd offense, and possession of crack cocaine 3rd offense or more.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Kershaw County Sheriff’s Department and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Buffalo Woman Sentenced for Conspiring to Commit Access Device FraudRead 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 Catherine Jarrett, 45 of Buffalo, NY, who was convicted of conspiracy to commit access device fraud, was sentenced by U.S. District Judge Richard J. Arcara to 18 months in prison. The defendant was also ordered to pay approximately $481,000 in restitution.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that between December 2013 and February 2014, Jarrett conspired with others, including Ricky Butler, and her son, Randy Jarrett, fraudulently to obtain and use unauthorized access devices, namely credit cards, without the knowledge or authorization of the true account holders. Co-conspirator Ricky Butler used the true account holder’s personal identifying information and account access information to contact financial institutions and have new or replacement credit cards issued to addresses in the Western District of New York. The defendant rented two minivans for Ricky Butler to drive to Walmart locations and other retail establishments where the fraudulently obtained credit cards were used to make, and attempt to make, purchases totaling over $570,000. These purchases included $500 Walmart gift cards. As part of the conspiracy, Jarrett and her son Randy Jarrett sold Walmart gift cards for Butler for less than their face value, typically $250 for a $500 gift card.
Ricky Butler was previously convicted and is awaiting sentencing. Randy Jarrett was previously convicted and sentenced to 21 months in prison.
The sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of acting Inspector-in-Charge Ray Moss of the Boston Division; and the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Brother and Sister Convicted of Attempting to Steal $3.7 Million with Phony Invoice SchemeRead the Press Release
TRENTON, N.J. – A brother and sister from New Jersey were convicted at trial today of running a multi-million dollar fraudulent invoice scheme, U.S. Attorney Craig Carpenito announced.
Shevandra Verasawmi, 38, of Matawan, New Jersey, and Vishallie Verasawmi, 37, of Green Brook, New Jersey, were found guilty of all four counts of an indictment charging them with one count of conspiracy to commit mail fraud and three counts of mail fraud. The defendants were convicted following a one-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court. The jury deliberated for one hour before returning its verdict. Both defendants were originally arrested and charged by indictment in July 2017.
According to documents filed in this case and the evidence at trial:
From April 2016 through August 2016, Shevandra and Vishallie Verasawmi defrauded an entity identified in the indictment as “Victim Company 1” into paying shell companies that were incorporated by Shevandra Verasawmi. Despite the fact that the shell companies never had contracts for goods or services with Victim Company 1, Vishallie Verasawmi used her position as an employee of Victim Company 1 to cause the shell companies to be added to Victim Company 1’s accounts payable system.
Shevandra and Vishallie Verasawmi then submitted dozens of fraudulent invoices to Victim Company 1 and ultimately deposited the fraud proceeds into bank accounts they controlled. In total, Shevandra and Vishallie Verasawmi attempted to divert millions of dollars belonging to Victim Company 1 and spent the proceeds on personal expenses, including a luxury car and credit card payments.
The indictment seeks forfeiture of Shevandra and Vishallie Verasawmi’s proceeds from the scheme, including $1,066,830 and a 2016 BMW 750Li xDrive sedan.
The mail fraud conspiracy and mail fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 7, 2018.
The investigation was led by special agents with the U.S. Attorney’s Office, District of New Jersey.
The government is represented by Senior Litigation Counsel Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Cybercrime Unit. Senior Litigation Counsel Barbara A. Ward and Special Assistant U.S. Attorney Kathleen Robeson of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit are handling the forfeiture aspects of the case.
Defense counsel: Shevandra Verasawmi: Michael J. Pappa Esq., Hazlet, New Jersey
Vishallie Verasawmi: Lisa Van Hoeck Esq. and Giselle Pomerleau Esq., TrentonBrevard County Man Indicted for Distributing Heroin Resulting in DeathRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Ronald Wiley (36, Melbourne) with distributing heroin and cocaine that resulted in the death of another, distributing oxycodone, distributing heroin, possessing a firearm as a convicted felon, and two counts of carrying a firearm in relation to a drug trafficking crime. If convicted on all counts, he faces a maximum penalty of life in federal prison. The indictment also notifies Wiley that the United States intends to forfeit numerous firearms and ammunition, which are alleged to be traceable to the offenses.
According to the indictment, Wiley distributed heroin and cocaine to an individual identified as S.J. on January 26, 2018. S.J. overdosed and died after ingesting the heroin and cocaine that Wiley had provided. In addition, on two other occasions in February 2018, Wiley distributed oxycodone and heroin to another individual while armed with a firearm. He also possessed four firearms on March 7, 2018. As a previously convicted felon, Wiley is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has violated one or more of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Brevard County Sheriff’s Office, with assistance from the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Shawn P. Napier.
Boston-Area Restaurant Owner Charged with Naturalization FraudRead the Press Release
BOSTON – A former owner of restaurants in Boston and Chelsea was charged yesterday in federal court in Boston with committing fraud to obtain U.S. citizenship.
Burhan Ud Din, 49, of Watertown, was charged in a superseding indictment with one count of conspiracy, six counts of willful failure to collect and pay over tax, one count of making false statements under oath in a naturalization matter, and one count of procurement of naturalization contrary to law. Din was initially indicted for tax fraud in August 2017; the superseding indictment adds the naturalization allegations to the charges against him.
Din’s co-conspirators, Hazrat Khan, 58, of Middletown, NY, and Khurshed Iqbal, 58, both Pakistani nationals, were separately charged in an April 2017 18-count superseding indictment with conspiracy and willful failure to pay over taxes. In November 2017, Khan pleaded guilty and was sentenced to 30 months in prison. Iqbal’s whereabouts are unknown.
According to the superseding indictment, Din and his co-conspirators defrauded the government and avoided paying payroll and income taxes owed by the restaurants they owned and operated, Crown Fried Chicken located in Chelsea and Kennedy Fried Chicken in Boston. Din, Khan, and Iqbal allegedly took steps to conceal Khan’s ownership interests in one of the stores, and Din provided the tax preparer for both stores with false information about the restaurants’ payroll and income, causing the tax preparer to file false tax returns.
The superseding indictment adds allegations that Din falsely stated under oath during naturalization proceedings in 2009 that he did not owe any overdue taxes.
Federal law requires employers to withhold payroll taxes and then pay them over to the IRS. To avoid paying taxes, Din, Khan, and Iqbal allegedly falsely reported the number of employees—some of whom were undocumented workers—and wages paid to the IRS. They also allegedly paid employees under the table and filed income-tax returns that falsely described their sales, total income, compensation of officers, salaries and wages, and taxable income.
The charge of making false statements under oath in a naturalization matter provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. The charge of procuring citizenship contrary to law provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. If convicted, Din will lose his U.S. citizenship. The charge of conspiracy to defraud the IRS provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of up to $250,000 and restitution. The tax charges against Din provide for a sentence of no greater than five years in prison, three years of supervised release, a fine up to $250,000, restitution, and payment of the costs of prosecution. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Boston Police Commissioner William Evan made the announcement. Assistant U.S. Attorneys Brian A. Pérez‑Daple and George Varghese of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Boston Gang Member Pleads Guilty to Distributing Drugs in and Around Public Housing DevelopmentRead the Press Release
BOSTON – A Boston gang member pleaded guilty yesterday in federal court in Boston to distributing crack cocaine in a Jamaica Plain housing development.
Jarrod Simmons, a/k/a “Rizz,” 21, pleaded guilty to distribution of controlled substances within 1,000 feet of a public housing facility. U.S. District Court Judge Denise J. Casper scheduled sentencing for July 31, 2018.
Following a two-year investigation, Simmons and eight co-defendants were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments in Jamaica Plain, formerly known as the Bromley Heath Housing Development. Simmons, a member of the Heath Street Gang, sold cocaine base, also known as crack cocaine, to a cooperating witness inside the development on Sept. 18, 2016. According to court documents, Simmons was on pretrial release for state drug and firearm offenses when he conducted the drug sale.
The investigation and arrests sought to reduce violence and improve the quality of life in and around the Mildred C. Hailey Apartments for residents by removing individuals who trafficked drugs and who were involved in gang activity in and around the development.
Simmons is the first defendant to plead guilty in this case.
The charge of distribution of controlled substances within 1,000 feet of a public housing development provides for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bogalusa Church Pastor Charged for Theft of over $90,000 in Social Security Disability FundsRead the Press Release
U.S. Attorney Duane A. Evans announced that JERRY R. NEWTON, age 54, of Slidell, Louisiana was charged yesterday by a Bill of Information for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the Bill of Information, NEWTON applied for Social Security disability benefits under Title II of the Social Security Act. A person receiving disability benefits must truthfully disclose to the Social Security Administration any employment or income while getting the government money. In forms submitted to the SSA, NEWTON failed to disclose that he was the paid pastor of Bogalusa Baptist Church since May of 2007 and that he owned two businesses, Still Dreaming Graphics, LLC and Kclean Sweep, a cleaning service. Due to his concealing of his salary and income produced from his businesses, NEWTON received a total of $95,316 in DIB benefits to which he was not entitled.
U. S. Attorney Evans reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, NEWTON faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment, as well as restitution to the Social Security Administration
U.S. Attorney Evans praised the work of the Social Security Administration, Office of Inspector General. The prosecution of this case is being handled by Carter K. D. Guice, Jr. Assistant U.S. Attorney.
Biloxi Woman Sentenced to 13 Years in Federal Prison for MethamphetamineRead the Press Release
Gulfport, Miss. - Andrea Shelitia Sawyer, 36, of Biloxi, was sentenced Thursday by U.S. District Judge Sul Ozerden to 160 months in federal prison, followed by 3 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Thomas M. Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans. Sawyer was also ordered to pay a $10,000 fine.
Agents with Homeland Security Investigations received information that Sawyer and her boyfriend were distributing multiple ounces of methamphetamine in Biloxi, Mississippi. On November 1, 2017, a confidential source made contact with Sawyer and set up a deal to purchase 6 ounces of methamphetamine in exchange for money. Sawyer met with the confidential source, and upon her arrest, agents located six ounces of methamphetamine. A search warrant was also executed at the apartment where Sawyer resided in Biloxi. During the execution of the warrant, agents located more methamphetamine, marijuana, cash and a stolen firearm. Sawyer pled guilty on January 18, 2018.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Kathlyn Van Buskirk.
Berkeley County man indicted on drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Hedgesville, West Virginia man has been indicted by a federal grand jury sitting in Martinsburg on March 20, 2018 on a cocaine distribution charge, United States Attorney Bill Powell announced.
Douglas Mills, also known as “D,” age 26, was indicted on two counts of “Distribution of Cocaine Base.” Mills is accused of selling cocaine in Berkeley County in August 2015.
Mills was arrested in New York by the United States Marshal Service on April 11, 2018.
Mills faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney Elizabeth Grant, also with the West Virginia Attorney General’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the West Virginia State Police Bureau of Criminal Investigations, the Jefferson County Sheriff’s Office, and the Martinsburg Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Baltimore man indicted on drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Baltimore, Maryland man has been indicted by a federal grand jury sitting in Martinsburg on March 20, 2018 on a heroin distribution charge, United States Attorney Bill Powell announced.
Troy Bradley, also known as “Rich,” age 39, was indicted on one count of “Distribution of Heroin.” Bradley is accused of selling heroin in Berkeley County on December 11, 2015.
Bradley was arrested in Maryland on April 13, 2018.
Bradley faces up to 20 years incarceration and a fine of up to $1,000,000. 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.
Special Assistant U.S. Attorney Elizabeth Grant, also with the West Virginia Attorney General’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Baltimore Man Pleads Guilty to Gun ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On April 25, 2018, Antonio Reed, age 26, of Baltimore, Maryland, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division.
According to his plea agreement, between May 26, 2017 and June 8, 2017, Reed and his co-conspirators planned to commit an armed robbery of a drug stash house for the purpose of stealing multiple kilograms of cocaine from a drug cartel. Reed and his co-conspirators planned this robbery with a person who was actually an undercover special agent with the ATF.
On June 8, 2017, Reed, along with his three co-conspirators, met with the undercover special agent to carry out the robbery. Reed believed that the group would commit the robbery of the drug stash house that day and that drugs would be stolen. Had Reed and his co-conspirators committed the robbery, interstate commerce would have been affected.
In furtherance of the conspiracy, Reed possessed a Smith & Wesson pistol and brought a mask and fabric gloves to use during the robbery. Reed also knew that his co-conspirators carried two other firearms that they would use in the planned robbery.
Reed faces a maximum sentence of ten years in prison. United States District Judge George L. Russell, III has scheduled sentencing for August 9, 2018, at 11:30 a.m.
United States Attorney Robert K. Hur commended the ATF for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
Baldwin Borough Woman Charged with Fraudulently Obtaining Controlled Substances and Health Care FraudRead the Press Release
PITTSBURGH, Pa. – A Pittsburgh-area woman has been indicted by a federal grand jury in Pittsburgh on charges of fraudulently obtaining controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on April 25, named Heather Summerfield, 37, as the sole defendant.
According to the indictment presented to the court, Summerfield obtained Tramadol, a controlled substance, through fraud by posing a representative of physicians’ offices to obtain prescriptions both in her own name and in the names of fictitious individuals without the authorization of the physicians. To the extent that she fraudulently obtained prescriptions in her own name, the indictment alleges that she committed health care fraud by causing her insurance carriers to pay for those fraudulently obtained prescriptions.
The law provides for a maximum total sentence of not more than fourteen years 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, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
Athens County Home Health Care Agency Owner Sentenced for Committing $2M FraudRead the Press Release
COLUMBUS, Ohio – Cheryl McGrath, 50, of Guysville, Ohio, was sentenced today in U.S. District Court to 36 months in prison for committing health care fraud and willful failure to pay over tax.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office and Ohio Attorney General Mike DeWine announced the sentence handed down by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, McGrath owned and operated Home Health Care of Southeast Ohio in Guysville, Ohio since 1993.
From 2009 until 2015, McGrath executed a scheme to defraud the Ohio Medicaid Program by billing on behalf of Home Health Care of Southeast Ohio for home health nursing services that were never rendered. The defendant routinely changed the claim information in the billing software to falsely reflect that additional hours of nursing services had been provided and falsely increased the number of nursing visits from one visit per week to between three and five visits per week.
McGrath also submitted claims for nursing services of Medicaid patients who were ineligible because they were either residing in private nursing homes or deceased.
In total, her scheme included fraudulent claims in the amount of approximately $2.2 million.
From 2009 until 2013, McGrath maintained the books and records regarding payroll for the home health care business. During that time, she submitted Forms 941 to the IRS but did not pay over the federal employment taxes that were due, causing a loss of $366,825 to the IRS.
McGrath pleaded guilty to health care and tax fraud charges in June 2017. As part of her plea agreement, McGrath has agreed to pay more than $2.2 million in restitution to the Ohio Medicaid Program and the nearly $367,000 to the IRS.
“As the person who controlled the finances on behalf of Home Health Care of Southeast Ohio, Cheryl McGrath was entrusted with the significant responsibility to collect and turn over all IRS withholding taxes” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “By failing to do so, not only was the revenue due to the United States government affected, but more importantly, the Medicare and Social Security benefits of the employees was affected.”
“This scheme was intentional and egregious, and we worked hard to pursue a just outcome,” said Ohio Attorney General Mike DeWine. “Fighting health care fraud is a priority of my office.”
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, U.S. Department of Health and Human Services OIG, FBI and the Ohio Attorney General’s Office Medicaid Fraud Control Unit, as well as Assistant United States Attorneys Jessica W. Knight and Kenneth F. Affeldt and Special Assistant United States Attorney Maritsa Flaherty with Ohio Attorney General Mike DeWine’s Office, who are representing the United States in this case.
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Armed Drug Traffickers Plead GuiltyRead the Press Release
Tampa, Florida – Joshua Christian Cantrell (24, Dade City) pleaded guilty today to conspiracy to distribute 50 grams or more of methamphetamine and to carrying a firearm during a drug trafficking crime. He faces a mandatory minimum term of 15 years, and up to life, in federal prison. His co-conspirator, Tracy Lee Williams, a/k/a Tracy Lee Spann, (38, Tampa), previously pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine. She faces a mandatory minimum term of 10 years, and up to life, in federal prison. Sentencing dates have not yet been set.
According to the plea agreements, on three separate occasions, in April and May 2017, Williams sold methamphetamine to an undercover detective in Brandon. During the first transaction, Williams sold the undercover detective approximately one ounce of methamphetamine. On the second occasion, she sold the detective approximately two ounces of methamphetamine. Cantrell drove Williams to conduct the third sale which involved approximately eight ounces of methamphetamine. They were both subsequently arrested. Law enforcement found a loaded pistol in Cantrell’s waistband and a search of his vehicle revealed another pistol, additional weapons, ammunition, methamphetamine, and drug paraphernalia.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.