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19 April 2018
Former Physician’s Office Employee Pleads Guilty in Fraud SchemeRead the Press Release
Memphis, TN – Gloria Harris, 56, of Memphis entered a guilty plea to a charge of bank fraud in connection with the theft of approximately $292,500 from her former employer, Crescent Medical Corporation. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the plea today.
A federal grand jury returned an indictment against Harris in December of last year. According to the indictment, Harris a former data entry clerk for Crescent, fraudulently obtained $292,500 between January 2016 and March 2017. The indictment alleged that Harris stole checks payable to Crescent and deposited them to bank accounts at Trustmark Bank and Suntrust Bank which she had opened in the name of Crescent without the knowledge of Crescent’s owner, Dr. Ashan Kathawala.
Harris faces up to 30 years’ imprisonment; a one million dollar fine and 5 years supervised release on the bank fraud charge.
Harris is currently scheduled to be sentenced on July 20, 2018 before U.S. District Judge Sheryl H. Lipman.
This case was investigated by the United States Secret Service Economic Crimes Task Force.
Assistant U.S. Attorney Carroll L. Andre’ III is prosecuting this case on the government’s behalf.
Former Monroe correctional officers indicted for assault of inmates and obstruction of justiceRead the Press Release
MONROE, La. – Five former corrections officers at the Richwood Correctional Center (RCC) in Monroe, Louisiana, have been indicted by a federal grand jury for their roles in a conspiracy to physically assault five inmates in violation of their Constitutional protection against cruel and unusual punishment, as well as for their roles in covering up their actions, announced Acting Assistant Attorney General John Gore for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph.
Roderick Douglas, 37, of Monroe; Christopher Loring, 35, of Monroe; Demario Shaffer, 33, of Delhi, Louisiana; Quintail Credit, 26, of Winnsboro, Louisiana; and David Parker, 27, of Tallulah, Louisiana, were charged in a seven-count indictment returned under seal by a federal grand jury in Monroe, Louisiana, on March 29, 2018. The indictment was unsealed and made public today upon initial court appearances of the defendants.
According to the indictment, Douglas was a Captain, Loring was a Lieutenant, Shaffer was a Sergeant, and Credit and Parker were correctional officers. The indictment charges in Count One that the defendants conspired to inflict cruel and unusual punishment upon five inmates by spraying a chemical agent in their face and eyes while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Count Two charges defendants Douglas, Loring, Shaffer, Credit, and Parker with the infliction of cruel and unusual punishment against the inmates, and Count Three charges defendant Loring with failing to intervene in the assaults. The indictment alleges that the assaults charged in Counts One through Three involved a dangerous weapon and resulted in bodily injury to the inmates. Count Four charges the defendants with conspiring to submit false reports concerning the incident, and Counts Five through Seven charge defendants Douglas, Shaffer, and Parker, respectively, with making false statements to the FBI about the incident.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, U.S. Department of Justice. The case was investigated by the Monroe Division of the FBI.
Former Maui Police Officer Pleads Guilty to Theft Under Color of Law and Witness TamperingRead the Press Release
Former police officer Anthony Maldonado, of Kahului, Maui, pleaded guilty today in federal court to one count of Deprivation of Rights Under Color of Law in violation of Title 18, United States Code § 242, and one count of Conspiracy to Commit Witness Tampering in violation of Title 18, United States Code § 1512(k).
According to court documents and information presented in court, Officer Maldonado conducted a traffic stop at the Mala Wharf on Maui in September 2015. He used the opportunity to steal approximately $1,800 in cash from the fanny pack of the person who he stopped. When the victim later realized the cash was missing, he reported the theft to Maui police. After the report was filed, the defendant and four others attempted to bribe the victim to withdraw the complaint. Three co-defendants previously pled guilty to Conspiracy to Commit Witness Tampering.
“Law enforcement officers must uphold their pledge to protect the members of their communities and conduct themselves with honor,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to enforce the law and protect the civil rights of all to be free from willful police misconduct.”
“Everyone should be able to trust that an encounter with law enforcement will not result in theft,” said U.S. Attorney Kenji M. Price for the District of Hawaii. “No one is above the law, least of all police officers who are charged with protecting our community.”
Maldonado’s sentencing is scheduled for August 23 before U.S. District Judge Helen Gilmor. He faces up to 21 years in prison, a fine of up to $350,000, and a period of supervised release of up to three years.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Trial Attorney Mary Hahn of the Civil Rights Division of the U.S. Department of Justice, and Assistant U.S. Attorneys Jill Otake and Marc A. Wallenstein from the U.S. Attorney’s Office for the District of Hawaii.
Former Maui Police Officer Pleads Guilty to Theft Under Color of Law and Witness TamperingRead the Press Release
HONOLULU – Former police officer Anthony Maldonado, of Kahului, Maui, pleaded guilty today in federal court to one count of Deprivation of Rights Under Color of Law in violation of Title 18, United States Code § 242, and one count of Conspiracy to Commit Witness Tampering in violation of Title 18, United States Code § 1512(k).
According to court documents and information presented in court, Officer Maldonado conducted a traffic stop at the Mala Wharf on Maui in September 2015. He used the opportunity to steal approximately $1,800 in cash from the fanny pack of the person who he stopped. When the victim later realized the cash was missing, he reported the theft to Maui police. After the report was filed, the defendant and four others attempted to bribe the victim to withdraw the complaint. Three co-defendants previously pled guilty to Conspiracy to Commit Witness Tampering.
"Law enforcement officers must uphold their pledge to protect the members of their communities and conduct themselves with honor," said Acting Assistant Attorney General John Gore of the Civil Rights Division. "The Justice Department will continue to enforce the law and protect the civil rights of all to be free from willful police misconduct."
"Everyone should be able to trust that an encounter with law enforcement will not result in theft," said Kenji M. Price, U.S. Attorney for the District of Hawaii. "No one is above the law, least of all police officers who are charged with protecting our community."
Maldonado’s sentencing is scheduled for August 23 before Senior U.S. District Judge Helen Gilmor. He faces up to 21 years in prison, a fine of up to $350,000, and a period of supervised release of up to three years.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Trial Attorney Mary Hahn of the Civil Rights Division of the U.S. Department of Justice, and Assistant U.S. Attorney Marc A. Wallenstein from the U.S. Attorney’s Office for the District of Hawaii.
Former Louisiana Corrections Officers Indicted for Assault of Inmates and Obstruction of JusticeRead the Press Release
Five former corrections officers at the Richwood Correctional Center (RCC) in Monroe, Louisiana, have been indicted by a federal grand jury for their roles in a conspiracy to physically assault five inmates in violation of their Constitutional protection against cruel and unusual punishment, as well as for their roles in covering up their actions, announced Acting Assistant Attorney General John Gore for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph.
Roderick Douglas, 37, of Monroe, Louisiana, Christopher Loring, 35, of Monroe, Louisiana, Demario Shaffer, 33, of Delhi, Louisiana, Quintail Credit, 26, of Winnsboro, Louisiana, and David Parker, 27, of Tallulah, Louisiana, were charged in a seven-count indictment returned under seal by a federal grand jury in Monroe, Louisiana, on March 29, 2018. The indictment was unsealed and made public today upon initial court appearances of the defendants.
According to the indictment, Douglas was a Captain, Loring was a Lieutenant, Shaffer was a Sergeant, and Credit and Parker were correctional officers. The indictment charges in Count One that the defendants conspired to inflict cruel and unusual punishment upon five inmates by spraying a chemical agent in their face and eyes while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Count Two charges defendants Douglas, Loring, Shaffer, Credit, and Parker with the infliction of cruel and unusual punishment against the inmates, and Count Three charges defendant Loring with failing to intervene in the assaults. The indictment alleges that the assaults charged in Counts One through Three involved a dangerous weapon and resulted in bodily injury to the inmates. Count Four charges the defendants with conspiring to submit false reports concerning the incident, and Counts Five through Seven charge defendants Douglas, Shaffer, and Parker, respectively, with making false statements to the FBI about the incident.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, U.S. Department of Justice. The case was investigated by the Monroe Division of the FBI.
Former Liberian War Lord Known as “Jungle Jabbah” Sentenced to 30 Years in Prison for Immigration Fraud and PerjuryRead the Press Release
Mohammed Jabbateh, a violent and ruthless Liberian war lord also known as “Jungle Jabbah,” who had been living in East Lansdowne, Pennsylvania was sentenced today to 30 years in prison by U.S. District Judge Paul S. Diamond. Jabbateh, 51, was found guilty in October of two counts of fraud in immigration documents and two counts of perjury.
During the height of Liberia’s first civil war from 1992 to 1995, Jabbateh, while serving as commander of a warring faction known as the United Liberation Movement of Liberia for Democracy (ULIMO), committed various acts of shocking brutality including rapes, sexual enslavement, slave labor, murder, mutilation and ritual cannibalism. He also used children as soldiers.
“This defendant committed acts of such violence and depravity that they are almost beyond belief,” said U.S. Attorney William M. McSwain. “This man is responsible for atrocities that will ripple for generations in Liberia. He thought he could hide here but thanks to the determination and creativity of our prosecutors and investigators, he couldn’t. This prosecution was our only option under the law and his sentence achieves at least some measure of justice for his victims.”
According to trial testimony, in one instance Jabbateh ordered the heart of a captive be cooked and fed to his fighters. In another, fighters under the defendant’s command murdered a villager, removed his heart and ordered the town chief’s wife to cook it. Jabbateh later had the town chief himself murdered and ordered his widow to cook her husband’s heart.
In December 1998, when making application for asylum, and later for permanent legal residency, the defendant was not truthful about his activities during Liberia’s first civil war while he was a member of the ULIMO and later ULIMO-K rebel groups that battled for control of Liberia.
At Jabbateh’s trial, during two weeks of testimony from some two dozen witnesses, including 17 Liberian victims, the jury heard evidence that Jabbateh, as a ULIMO commander, either personally committed or ordered ULIMO fighters under his command to commit the following offenses: the murder of civilian noncombatants; the sexual enslavement of women; the maiming of civilian noncombatants; the torturing of civilian noncombatants; the enslavement of civilian noncombatants; the conscription of child soldiers; the execution of prisoners of war; the desecration of corpses and ritual consumption of human flesh; and the killing of persons because of race, religion, nationality, ethnic origin or political opinion.
“Let today’s sentencing serve as an example of Homeland Security Investigations (HSI) commitment to bring to justice individuals such as Mr. Jabbateh,” said Marlon Miller, special agent in charge of HSI’s Philadelphia office. “Human rights violators will not evade justice and will be held accountable for their crimes committed abroad, nor will they find refuge here in the United States.”
The case was investigated by Homeland Security Investigations (HSI) special agents Mark Gilland, Tom Eyre and Al Cabrelli, along with HSI Supervisory Special Agent Brian Jones. Also aiding in the investigation were Africa research specialist Marian Drake and victim assistance specialist Jackie Goldstein.
This case is being prosecuted by Assistant U.S. Attorneys Linwood C. Wright, Jr. and Nelson S.T. Thayer, Jr.
Former Las Cruces U.S. Customs and Border Protection Officer Pleads Guilty to Obstruction of JusticeRead the Press Release
The Justice Department today announced that former U.S. Customs and Border Protection (CBP) officer Christopher M. Holbrook pleaded guilty in federal court in Las Cruces, New Mexico, to obstruction of justice.
The charge stems from Holbrook’s falsification of a report regarding his use of force against an individual, referred to as R.A.M., on March 23, 2015. At the time of the incident, Holbrook, 31, was working as a CBP officer in Las Cruces.
In his plea agreement, Holbrook admitted falsifying an official document. Specifically, Holbrook falsely claimed in his use-of-force report that when he detained R.A.M., R.A.M. actively resisted and attempted to pull away. Holbrook further falsely claimed that he used the minimal amount of force necessary to control R.A.M. but that he lost control and they both fell to the floor. In pleading guilty, Holbrook admitted that in fact, and as he knew at the time, he intentionally swept R.A.M.’s legs out from under him and caused R.A.M.’s head to hit the floor. Holbrook also admitted that he falsified his use-of-force report to avoid getting in trouble with CBP.
Holbrook faces a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has yet to be scheduled.
“Federal law enforcement officers have an unassailable duty to uphold the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The defendant’s unlawful actions, obstruction of justice, and intentional falsification of a report, undermines the public’s confidence in our criminal justice system. This Justice Department will continue to vigorously prosecute such violations of the law.”
“Law enforcement officers are accorded tremendous power to enforce the law and ensure justice. Preventing the abuse of this authority is necessary to protect the rights of our citizens and to maintain public trust in law enforcement agencies,” said U.S. Attorney John C. Anderson of the District of New Mexico. “Those who take an oath to support and defend the Constitution of the United States must be held accountable when they willfully violate the constitutional rights of others and obstruct justice to cover up their crimes.”
This case was investigated by CBP’s Office of Professional Responsibility. Assistant U.S. Attorney Brock Taylor of the District of New Mexico U.S. Attorney’s Las Cruces Branch Office and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice are prosecuting the case.
Former Las Cruces U.S. Customs and Border Protection Officer Pleads Guilty to Obstruction of JusticeRead the Press Release
ALBUQUERQUE – The Justice Department today announced that former U.S. Customs and Border Protection (CBP) officer Christopher M. Holbrook pleaded guilty in federal court in Las Cruces, New Mexico, to obstruction of justice.
The charge stems from Holbrook’s falsification of a report regarding his use of force against an individual, referred to as R.A.M., on March 23, 2015. At the time of the incident, Holbrook, 31, was working as a CBP officer in Las Cruces.
In his plea agreement, Holbrook admitted falsifying an official document. Specifically, Holbrook falsely claimed in his use-of-force report that when he detained R.A.M., R.A.M. actively resisted and attempted to pull away. Holbrook further falsely claimed that he used the minimal amount of force necessary to control R.A.M. but that he lost control and they both fell to the floor. In pleading guilty, Holbrook admitted that in fact, and as he knew at the time, he intentionally swept R.A.M.’s legs out from under him and caused R.A.M.’s head to hit the floor. Holbrook also admitted that he falsified his use-of-force report to avoid getting in trouble with CBP.
Holbrook faces a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has yet to be scheduled.
“Federal law enforcement officers have an unassailable duty to uphold the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The defendant’s unlawful actions, obstruction of justice, and intentional falsification of a report, undermines the public’s confidence in our criminal justice system. This Justice Department will continue to vigorously prosecute such violations of the law.”
“Law enforcement officers are accorded tremendous power to enforce the law and ensure justice. Preventing the abuse of this authority is necessary to protect the rights of our citizens and to maintain public trust in law enforcement agencies,” said U.S. Attorney John C. Anderson of the District of New Mexico. “Those who take an oath to support and defend the Constitution of the United States must be held accountable when they willfully violate the constitutional rights of others and obstruct justice to cover up their crimes.”
This case was investigated by CBP’s Office of Professional Responsibility. Assistant U.S. Attorney Brock Taylor of the District of New Mexico U.S. Attorney’s Las Cruces Branch Office and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice are prosecuting the case.
Former Jersey City Police Officer Gets 18 Months in Prison for Scheme Involving Off-Duty Work AssignmentsRead the Press Release
NEWARK, N.J. – A former Jersey City police officer was sentenced today to 18 months in prison for fraudulently collecting income for off-duty work he never performed, U.S. Attorney Craig Carpenito announced.
Ehab Abdelaziz, 38, of Clifton, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit bribery. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Private contractors and utility companies sometimes needed the services of off-duty police officers for certain projects, including work in Jersey City that could obstruct the flow of traffic. Abdelaziz was a Jersey City police officer who was eligible to perform off-duty work.
From December 2015 through June 2016, Abdelaziz engaged in a conspiracy in which he made a total of $11,825 in bribe payments to another Jersey City officer who was authorized to assign off-duty work, in exchange for that officer’s official assistance in submitting phony vouchers to Jersey City indicating that Abdelaziz had completed certain off-duty assignments. As a result, Abdelaziz was compensated for work he never performed.
In addition to the prison term, Judge Vazquez sentenced Abdelaziz to two years of supervised release and ordered him to pay restitution of $33,955 and forfeiture of $22,449.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation.The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Anthony J. Iacullo Esq., Nutley, New Jersey
Former Defense Contractor Pleads Guilty to Engaging in Commercial Sex with a Minor in the PhilippinesRead the Press Release
A U.S. citizen pleaded guilty today to paying a 14-year-old girl for sex on multiple occasions in 2007.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., Special Agent in Charge Tracy Corimer of HSI St. Paul, Minnesota and Attaché Ransom J. Avilla of HSI Manila, Philippines made the announcement.
According to court documents, from in or about September 2007 until in or about December 2007, James Marvin Reed, then 52 years old, engaged in commercial sexual intercourse on multiple occasions with the then 14-year-old victim, and impregnated her, while he was working in the Philippines as a contractor for the U.S. Department of Defense. In 2016, he was arrested by Philippine authorities and returned to the United States for prosecution.
Reed pleaded guilty to one count of engaging in illicit sexual conduct in a foreign place. His sentencing is scheduled in June before U.S. District Judge Donovan W. Frank in the District of Minnesota.
Trial Attorneys Ralph Paradiso and James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case. CEOS Trial Attorney Kathryn Furtado also served as a vital member of the prosecution team at earlier stages of the litigation. The U.S. Attorney’s Office for the District of Minnesota also provided substantial assistance in this prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Athens County Assistant Prosecutor Pleads Guilty to Tax FraudRead the Press Release
COLUMBUS, Ohio – Michael (also known as Mickey) A. Prisley, 52, of Columbus, pleaded guilty to one count of conspiracy to submit false claims for income tax refunds with the Internal Revenue Service (IRS). As part of the plea, Prisley agreed to pay more than $250,000 in restitution to the IRS.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the guilty plea entered into today before U.S. Magistrate Judge Norah McCann King.
According to court documents, Prisley was an attorney licensed to practice law in the State of Ohio and had served as an assistant prosecuting attorney for Athens County, Ohio from approximately August 2011 through January 2014.
Between the fall of 2009 and September 2015, Prisley conspired with others to defraud the IRS by filing hundreds of false income tax returns in an attempt to obtain fraudulent income tax refunds.
Prisley deposited fraudulently obtained income tax refund checks into his bank accounts and withdrew the funds in cash in order to pay his co-conspirators their share. Prisley also received controlled substances in exchange for cashing the fraudulently obtained income tax refund checks.
In addition, Prisley provided his co-conspirators with false power of attorney forms so that his co-conspirators could cash fraudulently obtained income tax refund checks without the listed taxpayer's knowledge.
As a result of the fictitious income tax return filings, a total of $466,842 in fraudulent income tax refunds was released by the IRS, of which Prisley assisted his co-conspirators in obtaining $250,220.99.
Conspiracy to submit false claims for income tax refunds carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
“A once trusted criminal prosecutor is now a convicted felon because he chose to line his pockets with stolen income tax refunds,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Co-defendants Tawnya Writesel (also known as Tawnya Rutan), Amy K. France and Denard T. Nelson were also charged in relation to this case.
France pleaded guilty in June 2016 to one count of conspiracy to submit false claims and one count of identity theft and was sentenced in January to 37 months in prison. France was also ordered to pay nearly $467,000 in restitution. Nelson pleaded guilty in September 2015 to one count of identity theft and was sentenced in May 2016 to five years of probation. He was also ordered to pay more than $87,000 in restitution.
Writesel was indicted in November 2017 on one count of conspiracy to submit false claims for income tax refunds and four counts of filing false claims for income tax refunds. Her case is pending.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
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Florida Executive Pleads Guilty to Orchestrating $150 Million Brazilian Factoring SchemeRead the Press Release
United States Attorney Gregory G. Brooker today announced the guilty plea of ANTONIO CARLOS DE GODOY BUZANELI, 56, for his role in a $150 million investment fraud scheme involving Brazilian factoring. BUZANELI entered his guilty plea earlier today before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota. BUZANELI’S co-conspirators, JOSE MANUEL ORDOÑEZ, JR., 47, and JULIO ENRIQUE RIVERA, 61, each pleaded guilty to one count of conspiracy to commit mail fraud on February 13, 2018 and November 9, 2017, respectively. Sentencing dates for the three defendants have yet to be scheduled.
“Antonio Buzaneli orchestrated a massive fraud scheme that victimized hundreds of individual investors around the globe, including in Minnesota,” said U.S. Attorney Greg Brooker. “Many of these victims were elderly or vulnerable, and they invested their hard-earned retirement savings based on sophisticated lies about a complex investment Mr. Buzaneli and his co-conspirators claimed to be making in Brazil. Instead, they used the investors’ money to fund their lifestyles, to travel first class around the world, and to fund their other business ventures. The U.S. Attorney’s Office is grateful for the skilled investigative efforts put forth by our law enforcement partners to hold Mr. Buzaneli and his co-conspirators accountable for their scheme.”
“This vast and sophisticated fraud scheme truly circled the globe, touching venues as near as St. Louis Park, Minnesota and as far as Brazil, the United Kingdom, and China. Mr. Buzaneli and his co-conspirators lured their victims with the promise of novel international investments and huge financial returns. In reality, they stole millions simply to fund their personal interests and maintain their fraudulent conspiracy,” said Acting Special Agent in Charge Robert C. Bone II. “The FBI is committed to stopping these fraudsters and holding them accountable, no matter how complex the scheme or far flung the proceeds. We are grateful for the help of our partners at the U.S. Attorney’s Office, the United States Postal Inspection Service and the Minnesota Commerce Fraud Bureau in uncovering this complex scheme and bringing these defendants to justice.”
“Postal Inspectors take very seriously their mission to deter the illegal use of the mails for any criminal activity,” said Postal Inspector in Charge, Craig Goldberg. “We are committed to working together with our federal and local law enforcement partners to identify, investigate and bring to justice those who would attempt to mask their criminal activity through the use of the mail.”
“The defendant directed a massive fraud scheme that victimized numerous investors worldwide,” said Minnesota Commerce Commissioner Jessica Looman. “Both our securities enforcement unit and the Commerce Fraud Bureau began investigating when we received a tip about a suspicious investment opportunity being offered in Minnesota. A successful collaboration between the Fraud Bureau and federal authorities uncovered a far-reaching, sophisticated scheme that deceived investors about how their money would be used.”
According to the defendant’s guilty plea, BUZANELI, ORDOÑEZ and RIVERA were the principals of Providence Holdings International, Inc., a company based in Key Biscayne, Florida. BUZANELI and ORDOÑEZ became principals of Providence Financial Investments, Inc. and Providence Fixed Income Fund LLC (collectively, along with Providence Holdings International, Inc., “Providence”) in order to raise money from investors.
According to the defendant’s guilty plea and documents filed in court, from about 2010 until June 2016, Providence raised approximately $150 million from investors worldwide by representing that Providence would invest the money in Brazilian factoring. “Factoring” is a financial transaction in which accounts receivable are purchased at a discount. Providence’s marketing materials explained that in Brazil consumers write ten separate post-dated checks for $100 – one per month – to pay for $1,000 in retail items such as consumer electronics or groceries. The retailer then sells the post-dated checks to Providence for approximately $820, and Providence earns $180 over ten months as the checks mature. As a result, Providence claimed to make a 48 percent annual return on money invested in Brazil.
According to the defendant’s guilty plea and documents filed in court, Providence raised more than $64 million from U.S. investors by employing a network of brokers who sold promissory notes bearing annual interest rates between 12 percent and 24 percent. Investors were told their money would be used to factor accounts receivable in Brazil. BUZANELI, ORDOÑEZ and RIVERA provided the brokers with marketing materials to show investors that their money would be used to factor accounts receivable in Brazil. The materials falsely stated that funds would be used “for the sole purpose” of making loans to a Brazilian subsidiary of Providence “which will use the proceeds of the loan to acquire receivables or financial instruments such a post-dated checks and/or Duplicatas in the Brazilian Factoring Market.”
According to the defendant’s guilty plea and documents filed in court, BUZANELI and ORDOÑEZ instead used a significant amount of the investors’ funds to pay purported profits to other investors and to make commission payments to brokers. BUZANELI and ORDOÑEZ also diverted investor funds to other companies they controlled, including an import/export company, a travel company, a credit restoration service, a catering company and a food truck operated by BUZANELI’S wife.
According to the defendant’s guilty plea and documents filed in court, BUZANELI and ORDOÑEZ also opened Providence offices and affiliates around the world, including in London, Hong Kong, Taipei, Shanghai, Singapore, Vancouver, and Panama. In 2011 and 2012, for example, BUZANELI and ORDOÑEZ opened Providence-affiliated entities in the Bailiwick of Guernsey and in Hong Kong, through which they raised approximately $85 million from offshore investors by falsely representing they would use the investors’ money to invest in Brazilian factoring. In reality, Providence did not use the international investors’ money to purchase receivables in the Brazilian factoring market. Instead, much of the investors’ money was transferred to other Providence-controlled entities around the world as well as to bank accounts controlled by BUZANELI and ORDOÑEZ, where the money was used for payments unrelated to Brazilian factoring, including to pay commissions to U.S. brokers and to make interest payments to American investors in Providence’s U.S.-based entities. As a result of the fraud scheme, Providence investors worldwide lost a total of more than $100 million.
This case is the result of an investigation conducted by the FBI, United States Postal Inspection Service, and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorneys Kimberly A. Svendsen and Joseph H. Thompson are prosecuting the case.
Defendant Information:
ANTONIO CARLOS DE GODOY BUZANELI, 56
Coral Gables, Fla.
Convicted:
- Conspiracy to commit mail fraud, 1 count
JOSE MANUEL ORDOÑEZ, JR., 47
Davie, Fla.
Convicted:
- Conspiracy to commit mail fraud, 1 count
JULIO ENRIQUE RIVERA, 61
Pembroke Pines, Fla.
Convicted:
- Conspiracy to commit mail fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Five Individuals Charged with Conspiring to Distribute Thousands of Doses of Heroin and Fentanyl in TampaRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging five individuals with conspiring to distribute more than one kilogram of heroin, 400 grams of fentanyl, and 100 grams of a fentanyl analogue. If convicted, Anthony Jerome Lang (60, Tampa); Travell Kinkay Jones (40, West Palm Beach); Vanzini Nicholas Hansell (37, Tampa); Amber Miller (32, Tampa); and Carlton Reid Mallard (61, Tampa) each face a maximum penalty of life in federal prison.
According to the indictment, from at least June 2017 through February 2018, Lang, Jones, Hansell, Miller, and Mallard participated in a conspiracy to distribute heroin, fentanyl, and fentanyl analogues in the Middle District of Florida.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is the result of an Organized Crime Drug Enforcement Task force investigation conducted by the Drug Enforcement Administration, with assistance from the Tampa Police Department and the Florida Highway Patrol. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those organizations primarily responsible for the nation’s illegal drug supply. The case will be prosecuted by Assistant United States Attorney Dan Baeza.
Financial Advisor Faces Federal Fraud and Money Laundering Charges Alleging Thefts from Ameriprise Clients and Other VictimsRead the Press Release
LOS ANGELES – A former Ameriprise financial advisor faces federal fraud and money laundering charges for allegedly defrauding clients by embezzling funds that she promised would be invested, United States Attorney Nicola T. Hanna announced today.
Li Lin Hsu, 40, of Diamond Bar, was arrested Wednesday morning by special agents with the FBI.
Hsu was taken into custody pursuant to an eight-count indictment returned by a federal grand jury the day before. The indictment charges Hsu with three counts of mail fraud, three counts of wire fraud, one count of money laundering, and one count of obstruction of justice.
Over a five-year period, while she was employed by Ameriprise and after her termination from Ameriprise in 2015, Hsu solicited investments from clients through, among other ways, advertisements in local Chinese-language newspapers. According to the indictment, Hsu failed to invest her clients’ funds, and instead spent the money on personal expenses, such as credit card bills, personal loans, luxury items and real estate. The money laundering charge in the indictment alleges that Hsu used nearly $1 million stolen from one victim to purchase a condominium in Diamond Bar.
The indictment alleges that Hsu attempted to conceal her scheme by using some of the money stolen from victims to pay back other victims, and that she sent her clients fabricated account statements and investment purchase confirmations.
The indictment alleges that there are at least 11 victims of Hsu, and investigators believe those victims sustained losses of at least $2 million.
Following her arrest, Hsu was arraigned on the indictment in United States District Court, where she pleaded not guilty. Hsu was ordered released on a $50,000 bond, and she was ordered to stand trial on June 12 before United States District Judge Andrew J. Guilford in Santa Ana.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of the charges in the indictment, Hsu would face a statutory maximum sentence of 20 years in federal prison on each of the fraud counts, 10 years on the money laundering count, and 5 years on the obstruction of justice charge.
Investors who provided money to Hsu and believe they were defrauded through her actions at Ameriprise or her own companies – American Capital Trading Group LLC and American Capital Republic, Inc. – should contact the FBI’s Los Angeles Field Office at (310) 477-6565.
This matter is being investigated by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Poonam Kumar of the Major Frauds Section.
Fifteen Individuals Charged with Trafficking Cocaine and HeroinRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of two indictments charging 15 individuals with federal drug trafficking violations. In one indictment, Jesus Manuel Rodriguez, a/k/a “Caltu,” (30, Brandon); Bryan Gomez Nevarez (30, Avon Park); Hector Jose Carrasquillo Perez, a/k/a “Tito” (25, Catano, Puerto Rico); Henry Coira (30, Avon Park); Luis Enrique Hernandez Quinones, a/k/a “Gordo” (28, Davenport); Avisys Lee Jackson (27, Tampa); Javier Albaladejo Lopez, a/k/a “the Barber” (23, Tampa); Jose Angel Mendoza, Jr. (28, Tampa); Pedro Luis Ramos Burgos (25, Kissimmee); William Leverne Norton, a/k/a “Cool” (40, Tampa); Edgar Hernandez, a/k/a “Chuck” (27, Tampa); and Ismael Pagan Marrero (42, Orlando) are charged with conspiracy and possession with the intent to distribute cocaine. If convicted, each faces a maximum penalty of life in federal prison. In a separate indictment, Roberto Torres Gracia, a/k/a “el Silencio” (40, Pinellas Park); Eddie Alberto Pagan Santiago, a/k/a “Primo” (37, San Juan, Puerto Rico); and David Santiago, a/k/a “Flaco” (33, Tampa) are charged with conspiracy and possession with the intent to distribute heroin. If convicted, each faces a maximum penalty of 40 years in federal prison.
According to the indictment and information presented in court, between May 2017 and April 2018, the defendants conspired to distribute more than 100 grams of heroin and more than 20 kilograms of cocaine.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this OCDETF operation include the Federal Bureau of Investigation, the Tampa Police Department, the Florida Department of Law Enforcement, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
Federal Jury Convicts Rochester Man of Escaping from Federal CustodyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Abdul Rasheed, 36, of Rochester, NY, was convicted after a jury trial of escaping from federal custody. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney, Kyle Rossi, who handled the prosecution of the case, stated that on March 27, 2016, the defendant, following a federal felony conviction in the Western District of New York, was sentenced to 12 months in prison. Rasheed served his prison sentence at United States Penitentiary Lee, located in Jonesville, Virginia. Near the end of his prison term, the defendant was offered the opportunity to complete the incarceration portion of his sentence at the Volunteers of America Residential Reentry Center, commonly referred to as a “halfway house,” located at 175 Ward Street in Rochester. After being released from USP Lee, Rasheed absconded and never appeared at the Volunteers of America. The defendant remained at large until he was arrested on October 29, 2016, in Pittsburgh, PA.
Pennsylvania authorities allege that, following his escape but prior to his apprehension, Rasheed shot two individuals, killing one, during an attempted robbery. He defendant is under indictment in Pennsylvania and is scheduled to go to trial on murder and other charges on May 29, 2018, in Allegheny County, PA.
The trial verdict is the result of an investigation by the United States Marshals Service in Rochester, under the direction of Marshal Charles Salina, and the United States Bureau of Prisons, USP Lee.
Sentencing is scheduled for July 19, 2018, before Judge Charles J. Siragusa who presided over the trial of the case.
Federal Inmates Sentenced on Weapons ChargesRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that two federal inmates were sentenced for possessing weapons. Stuart commended the work of the Federal Bureau of Prisons.
“The staff of the Bureau of Prisons has incredibly dangerous jobs,” said United States Attorney Mike Stuart. “I commend them for preventing violence within the Federal Correctional Institution (FCI) at Beckley.”
Brandon Owens, 22, an inmate at the FCI Beckley, was sentenced to 12 months in prison, to be served consecutively to the sentence he is now serving. Owens pled guilty in January, admitting that on June 3, 2017, he possessed a handcrafted weapon, often called a “shank,” inside the waistband of his pants. An FCI Beckley staff member found the weapon when he searched Owens.
George A. Harper, 33, also an inmate at FCI Beckley, was sentenced to 12 months, also to be served consecutively to his current prison sentence. He pled guilty in January, and admitted that on July 16, 2017, he hid a shank in his coffee cup. A prison staff member found the shank inside the cup.
United States District Judge Irene C. Berger imposed the sentences. The cases were prosecuted by Assistant United States Attorney John File.
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Fayette Man Sentenced to Federal Prison for Unlawful Possession of Multiple FirearmsRead the Press Release
A convicted felon who possessed stolen firearms was sentenced today to two years in federal prison.
Joshua Glen Sargent, age 34, from Fayette, Iowa, received the prison term after a September 27, 2017, guilty plea to possession of a firearm by a felon.
Information at sentencing showed that Sargent possessed multiple firearms that had been stolen during burglaries in Lacrosse County, Wisconsin. He sold two of these firearms to a person who did not know the firearms were stolen. Law enforcement later seized these firearms. During a search warrant at Sargent’s residence, law enforcement officers recovered two additional stolen firearms. Sargent had previously been convicted of theft in the second degree and going armed with intent, both felonies. Sargent has also been previously convicted of violating a protective order and unlawfully possessing a weapon.
Sargent was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Sargent was sentenced to 24 months’ imprisonment. He was ordered to make $1,100 in restitution to the person who bought the firearms from him. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Sargent is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Fayette Police Department, the Fayette County Sheriff’s Office, and the Lacrosse County, Wisconsin, Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02061.
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Eleven Indicted and Arrested in SweepRead the Press Release
MACON, Ga. - Charles E. Peeler, United States Attorney for the Middle District of Georgia, and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Arthur D. Peralta announce that the eleven defendants listed below have been indicted by a Federal Grand Jury in Macon and have been arrested during a multi-agency operation. An arrest and an indictment are only allegations of criminal conduct. All defendants are presumed innocent unless and until proven guilty in a court of law beyond a reasonable doubt.
JUSTIN ELLIOTT, aged 24, of Macon, GA, is charged with Possession of an Unregistered Firearm. If convicted, Mr. Elliott faces a maximum sentence of 10 years, a maximum $10,000 fine, or both.
JOSHUA SCOTT, aged 28, of Macon, GA, is charged with Felon in Possession of a Firearm. Mr. Scott faces a maximum sentence of 10 years, a maximum fine of $250,000, or both, if convicted.
NATHANIEL GORDY, aged 30, of Macon, GA, was indicted for Possession of Marijuana with Intent to Distribute (Count 1), Possession of a Firearm by a Convicted Felon (Count 2), and Possessing a Firearm in Furtherance of a Drug Trafficking Crime (Count 3). If convicted, Mr. Gordy faces a maximum sentence of five years, a maximum $250,000 fine, or both, for Count 1; a maximum sentence of 10 years, a $250,000 fine, or both, for Count 2; and a maximum sentence of life imprisonment, a maximum $250,000 fine, or both, for Count 3.
WILLIE C. JOHNSON, aged 47, of Warner Robins, GA, is charged with Possession of Methamphetamine (Count 1), Possession of a Firearm by a Convicted Felon (Count 2) and Possession of a Firearm by a Prohibited Person (Count 3). If convicted, Mr. Johnson faces a maximum sentence of 10 years imprisonment, a maximum fine of $250,000, or both, on Counts 1 and 2; and a maximum of one year in prison, a $100,000 fine, or both, on Count 2.
MILTON SEARCY, aged 28, of Macon, GA, is charged with Possession of a Firearm by a Convicted Felon (Count 1) and Possession of Firearms by a Convicted Felon (Count 2). If convicted, he faces a maximum sentence of 10 years in Federal prison, a $250,000 fine, or both, on each count.
MARCUS VEAL, aged 33, of Macon, GA, was indicted on February 14, 2018 for Felon in Possession of a Firearm and faces a maximum penalty of 10 years’ imprisonment, a $250,000 fine, or both, if convicted.
JOHN RANDALL, aged 32, of Macon, GA, was indicted on February 14, 2018 for Felon in Possession of a Firearm and faces a maximum sentence of 10 years in Federal prison, a $250,000
fine, or both, if convicted.
TITUS KEYON SANDIFER, aged 38, of Macon, GA, was indicted on March 14, 2018 for Possession of a Firearm by a Convicted Felon (Count 1), Possession of an Unregistered Firearm (Count 2) and Possession of a Firearm with Obliterated Serial Number (Count 3). If convicted, he faces a maximum sentence of 10 years in prison, a $250,000 fine, or both, on Counts 1 and 2, and a maximum 5 years, a $250,000 fine, or both, on Count 3.
AASIM MCCOY, aged 38, of Macon, GA, was indicted on February 14, 2018 for Felon in Possession of a Firearm and faces a maximum sentence of 10 years’ imprisonment, a $250,000 fine, or both, if convicted.
SHANTERIO WOOTEN, aged 29, of Macon, GA, is charged with Illegal Receipt of a Firearm by a Person under Indictment. Mr. Wooten was sentenced under the first offender act on August 24, 2015 to six years’ probation for Possession with Intent to Distribute Marijuana, Driving Under the Influence, Misdemeanor Obstruction, Criminal Trespass, False Name, and Driving With a Suspended License in Bibb County Superior Court. Mr. Wooten faces a maximum sentence of 5 years’ imprisonment, a $250,000 fine, or both, if convicted of the current charges.
OSCAR ABRAM, aged 60, of Macon, GA, is charged with Possession of a Firearm by a Convicted Felon (Count 1); Possession of a Firearm in Furtherance of a Drug Trafficking Crime (Count 2); Possession with Intent to Distribute Hydrocodone (Count 3); Possession with Intent to Distribute Buprenorphine (Count 4) and Possession of Marijuana (Count 5). If convicted, Mr. Abram faces a maximum sentence of 10 years in prison, a $250,000 fine, or both, on Count 1; Life, a $250,000 fine, or both, on Count 2; 20 years, a $1million fine, or both, on Count 3; 10 years’ imprisonment, a $250,000 fine, or both, on Count 4; and 1 year in prison, a $100,000 fine, or both, on Count 5.
The operation was conducted as part of the Department of Justice’s Project Safe Neighborhood, which is designed to reduce violent crime through forming partnerships between federal, state, and local law enforcement and prosecutors. Those participating in this joint operation include the Bibb County Sheriff’s Office, Bibb County District Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; United States Probation; Georgia Department of Community Supervision and Office of the United States Attorney for the Middle District of Georgia. Assistant United States Attorney Kimberly S. Easterling is prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
El Salvadoran Man Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that MILTON OMAR SANCHEZ, age 43, a native of El Salvador, pled guilty yesterday to a one-count Indictment charging him with illegal reentry of a removed alien.
According to the court documents, SANCHEZ was previously removed from the United States on July 13, 2004. He was later found in the Eastern District of Louisiana on September 13, 2017, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
SANCHEZ faces a maximum term of imprisonment of twenty years, a fine of $250,000, three years of supervised release, and a $100 special assessment fee. U.S. District Court Judge Ivan L.R. Lemelle set sentencing for July 18, 2018.
U.S. Attorney Evans praised the work of United States Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Eight Aliens Indicted on Illegal Reentry Charges, Passport Fraud and Aggravated Identity TheftRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging CAMERINO SANCHEZ-VENEGAS, age 27, of Mexico, FRANCISCO VEGA-MARTINEZ, age 35, of Mexico, EDGAR SOLIS-PEREZ, age 38, of Mexico, DAVID DELACRUZ-GRAJALES, age 21, of Mexico, GIOVANNI SORROSA-IBARRA, age 36, of Mexico, JUSTO RUFINO SANDRES-SOLIS, age 32, of Honduras with illegal reentry of a deported alien.
Additionally, a federal grand jury in Raleigh has returned an indictment charging JOSE DOLORES HERNANDEZ-AGUILAR, age 37, of Mexico, with illegal reentry of an alien subsequent to an aggravated felony conviction.
Furthermore, a federal grand jury in Raleigh has returned an indictment charging RAMON ESTEBAN PAEZ-JEREZ, age 58, of the Dominican Republic, with passport fraud and aggravated identity theft. If convicted of illegal reentry of a deported alien, SANCHEZ-VENEGAS, found in Robeson County, VEGA-MARTINEZ, previously deported twice and found in Wake County, SOLIS-PEREZ, previously deported four times and found in Wake County, DELACRUZ-GRAJALES, previously deported three times and found in Wake County, SORROSA-IBARRA, previously deported five times and found in Wake County, and SANDRES-SOLIS, previously deported one time and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry of an alien subsequent to an aggravated felony conviction, HERNANDEZ-AGUILAR, previously deported one time and found in Wilson County, would face a maximum imprisonment term of twenty years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of passport fraud and aggravated identity theft, PAEZ-JEREZ, would face maximum penalties of twelve years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations, Homeland Security Investigations, and the Department of State.
Eastern Panhandle man guilty of drug distribution and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gregory Keith Clinton, of Kearneysville, West Virginia, was found guilty today by a jury of drug and firearm charges, United States Attorney Bill Powell announced.
After a three-day trial and two hours of deliberations, a jury found Clinton, age 57, guilty of one count of “Armed Career Criminal Act,” one count of “Possession with Intent to Distribute Cocaine Base,” and one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” He was also found guilty of one count of “Possession of Cocaine Base” and one count of “Possession of Cocaine.” Clinton, having previously been convicted of three felony drug charges, illegally possessed a .45-caliber pistol and possessed crack cocaine and coke in Berkeley and Jefferson Counties in July 2016.
“I appreciate the hard work of our dedicated trial team. We will continue to relentlessly pursue those who violate our drug and firearm laws. Our community is safer today because of the jury’s verdict,” said Powell.
Clinton faces a mandatory minimum of 15 years incarceration and a fine of up to $250,000 for the first count, and faces up to 20 years incarceration and a fine of up to $1,000,000 for the each of the “Possession with Intent to Distribute” counts. Clinton also faces up to one year incarceration and a mandatory minimum fine of $1,000 for each of the possession counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski and Special Assistant Prosecuting Attorney Elizabeth D. Grant, also with the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.District Man Pleads Guilty to Robbing Northwest Washington BankRead the Press Release
WASHINGTON – Steven Davis, 40, of Washington, D.C., pled guilty today to robbing a bank in the Dupont Circle area of Northwest Washington last fall, announced U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Davis pled guilty in the U.S. District Court for the District of Columbia to bank robbery. The Honorable Timothy J. Kelly scheduled sentencing for July 12, 2018. Davis faces a statutory maximum of 20 years in prison. Under federal sentencing guidelines, he faces a likely range of 37 to 46 months in prison and potential financial penalties. The judge ordered that Davis be detained pending sentencing.
According to court documents, on Nov. 7, 2017, at approximately 2:30 p.m., Davis entered a branch of TD Bank in DuPont Circle, wearing a baseball hat and one latex glove. Davis approached the teller counter and handed the teller a handwritten note that stated “I have a bag full of explosives hand over the $ now or die.” The teller pulled $500 from the cash register and handed it over. Davis placed the money in his canvas bag and left the bank branch.
Officers with the Metropolitan Police Department arrived immediately after the robbery and searched the area. Davis attempted to flee by entering the DuPont Circle Metro station. MPD Officers arrested Davis on the lower level platform of the station while he was waiting for a Metro train. He possessed $490 of the $500 he stole from the TD Bank branch.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and MPD. They also expressed appreciation for the work of Assistant U.S. Attorney Kevin L. Rosenberg, who prosecuted the case.
District Court Enters Permanent Injunction Against Arkansas Compounding Pharmacy and its CEO to Prevent Distribution of Adulterated DrugsRead the Press Release
The U.S. District Court for the Eastern District of Arkansas entered a consent decree of permanent injunction against defendants Cantrell Drug Company (Cantrell), and James L. McCarley Jr., Cantrell’s co-owner and Chief Executive Officer. The injunction permanently enjoins the defendants from distributing adulterated drugs in violation of the federal Food, Drug, and Cosmetic Act.
The entered permanent injunction stems from a complaint the Department filed in the U.S. District Court for the Eastern District of Arkansas on Feb. 28, at the request of the U.S. Food and Drug Administration (FDA). That complaint alleged, among other things, that the defendants distributed adulterated drugs in interstate commerce.
As part of the permanent injunction, defendants cannot resume manufacturing, processing, or distributing drugs until they comply with specific remedial measures. Those measures include submitting a remedial plan to FDA, which will provide for an independent expert to conduct inspection(s) of defendants’ facility, ensure defendants implement all recommended corrective actions, and ensure that defendants’ manufacturing and distributing of drugs will be in conformity with current good manufacturing practice. The permanent injunction provides that defendants cannot resume manufacturing, processing, or distributing drugs until FDA notifies them in writing that defendants appear to be in compliance with the ordered remedial measures.
“Compounding pharmacies have a responsibility to ensure that they process drugs in a manner that meets the legal standards necessary to ensure the safety and quality of such drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with FDA to ensure that doctors and patients can rely on the protections in the Food, Drug, and Cosmetic Act.”
According to the complaint filed by the Department on Feb. 28, defendants’ drugs were adulterated because they were prepared, packed, or held under insanitary conditions whereby they may have been contaminated or may have been rendered injurious to health. The complaint also alleged that defendants’ drugs were adulterated because defendants failed to comply with current good manufacturing practice regulations.
Cantrell initiated voluntary recalls of drug products in 2016 and 2017. The 2016 recall, initiated due to lack of sterility assurance, involved 29 lots of unexpired sterile drug products. The 2017 recall, also due to a lack of sterility assurance, encompassed all lots of unexpired sterile drug products that Cantrell had compounded and distributed between Feb. 16, 2017, and July 19, 2017.
“The Food, Drug, and Cosmetic Act is designed to protect the public health,” said U.S. Attorney Cody Hiland for the Eastern District of Arkansas. “This enforcement action demonstrated our commitment to ensuring that when deficiencies are identified, they are properly addressed.”
“As a public health agency, the FDA is committed to fully implementing the regulatory framework set forth by Congress that helps ensure compounded drugs are made under appropriate production standards,” said FDA Commissioner Scott Gottlieb, M.D. “FDA is committed to taking action against compounders who do not comply with the requirements set forth in federal law.”
The government is represented by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Shannon S. Smith of the U.S. Attorney’s Office for the Eastern District of Arkansas, with the assistance of Associate Chief Counsel, Litigation, Jennifer Kang of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Arkansas, visit its website at https://www.justice.gov/usao-edar.
Department of Defense Employee Pleads Guilty to Sexually Abusing Co-Worker on Military BaseRead the Press Release
A Department of Defense civilian employee pleaded guilty today to sexually abusing a co-worker while on a temporary duty assignment to the U.S. Naval base in Yokosuka, Japan in January 2016.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Annette L. Hayes for the Western District of Washington and Special Agent in Charge Ron Beltz of the Naval Criminal Investigative Service’s (NCIS) office in Bremerton, Washington made the announcement.
Michael S. Cerera, 36, of Port Orchard, Washington, pleaded guilty to one count of abusive sexual contact before U.S. Magistrate Judge J. Richard Creatura of the Western District of Washington. Sentencing has been scheduled for Aug. 9.
In pleading guilty, Cerera admitted that on or about Jan. 23, 2016, while a civilian employee of the Department of Defense in Yokosuka, Japan, he engaged in sexual contact with a female co-worker when she was physically incapable of declining participation in, or communicating her unwillingness to engage in, that sexual contact because she was asleep. Specifically, Cerera admitted that in the early morning, he was present in the victim’s hotel room and climbed into her bed while she was unconscious. The victim woke to discover that, without her permission, Cerera had pushed her shirt up and was kissing or licking her right side and had placed one hand down the back of her underwear and digitally penetrated her vagina.
NCIS investigated the case. Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Grady Leupold of the Western District of Washington are prosecuting the case.Delaware Man Sentenced for Federal Firearm ViolationRead the Press Release
BECKLEY, W.Va. – A Delaware man was sentenced to 5 years for a federal firearm violation, announced United States Attorney Michael B. Stuart. Jeffrey M. Burris, 41, of Wilmington, Delaware, formerly of Nettie, West Virginia, pled guilty in September 2017 to a single count of possessing firearms which were not registered in the National Firearms Registration and Transfer Record. Stuart commended the investigative work of the West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“As I’ve said before, I strongly support the Second Amendment, but those who break our gun laws will pay a heavy price,” said United States Attorney Stuart.
On May 10, 2017, the West Virginia State Police contacted ATF agents to advise that troopers were called to the Burris's residence in Nettie in response to a domestic disturbance call received from Mrs. Burris. Mrs. Burris advised 911 operators that Burris was taking and concealing evidence in the woods behind their residence. Upon arrival at the residence, officers indicated they could hear an all-terrain vehicle (ATV) in the woods behind the residence. Mrs. Burris met officers in the driveway and advised that Burris was hiding evidence in the woods, and Burris had a firearm in his possession.
Officers proceeded to the woods in an attempt to locate Burris. Unsuccessful in locating Burris, officers returned to the residence and spoke with Mayra Burris, who advised that after Burris learned officers were at the residence earlier in the day regarding an ATF tip alleging he possessed illegal firearm silencers, Burris became angry. Burris loaded items onto his ATV and took them into the woods to hide.
While speaking with Mrs. Burris, officers heard and observed an ATV coming from the woods. The ATV was driven by Burris. Officers made contact with Burris and observed he was armed with two pistols and an AR-style rifle. Officers secured Burris, secured the weapons for officer safety, and placed Burris into custody.
On May 11, 2017, ATF agents and WVSP troopers returned to the Burris residence. The agents searched over 30 acres of property owned by Burris. During a search of the residence, officers seized several thousand rounds of ammunition from an upstairs attic area, along with additional marijuana paraphernalia found near a gun safe. In the wooded area surrounding the residence where Burris had initially fled to prior to his arrest the previous evening, officers discovered a black cylindrical container and a blue five-gallon bucket with a lid. Inside the bucket, officers found four homemade silencers with mounting hardware/adapters. Inside the cylindrical container, officers discovered a Cobray/Street Sweeper, 12-gauge semi-automatic shotgun; an RPB Industries, Model M-10, 9-millimeter pistol with a partially obliterated serial number; a German MP40, 9-milliter machinegun, three firearm trigger assemblies and marijuana paraphernalia.
Fourteen of the approximately 70 firearms seized from the Burris property were required to be registered with the National Firearms Registration and Transfer Record. None of the 14 were.
C. Haley Bunn and R. Gregory McVey handled the prosecution. United States District Court Judge Irene C. Berger handed down 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.
Dallas Attorney Sentenced to 120 Months in Federal Prison for Role in $26 Million Fraud ConspiracyRead the Press Release
DALLAS — Tshombe Anderson, 55, of Grand Prairie, Texas, was sentenced today by Chief U.S. District Judge Barbara M.G. Lynn to 120 months in federal prison and ordered to pay $26,572,458.93 in restitution for his role in a scheme he ran along with his family members from July 2011 to September 2015 to fraudulently obtain more than $26 million from the Department of Labor (DOL) Office of Worker’s Compensation Program (OWCP), announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Anderson pleaded guilty in August 2017 to one count of conspiracy to commit health care fraud. Anderson agreed to forfeit $375,000 seized from his residence, a 2015 Mercedes, and his share of the $8,383,075 that was seized from 25 bank accounts. Anderson has been in custody since the time of his arrest in August 2015.
In addition to Anderson, his sister Lydia Bankhead, 63, his wife Brenda Anderson, 47, and his niece Lydia Taylor, 30, were also charged in the indictment returned in September 2015 and pleaded guilty to their roles in the scheme.
“Tshombe Anderson and others conspired to defraud the U.S. Department of Labor’s Office of Workers’ Compensation Programs (OWCP) of more than $26 million. Anderson stole patient information from over 200 injured federal workers and then used the information to fraudulently bill OWCP, enriching himself and others with taxpayer dollars intended for the treatment of injured federal workers. We will continue to work with our law enforcement partners to safeguard all Department of Labor programs,” said Steven Grell, Special Agent in-Charge of the Dallas Regional Office of the U.S. Department of Labor, Office of Inspector General.
“The sentence imposed today reaffirms the long-standing message that fraud committed against federal benefit programs is a serious crime and will not be tolerated,” said U.S. Postal Service Office of Inspector General Special Agent in Charge Christopher Cave, Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners will continue to aggressively pursue anyone who engages in these criminal activities.”
According to plea documents in the case, Tshombe Anderson worked as an attorney for Union Treatment Centers (“UTC”). Anderson and his wife, Brenda Anderson, opened a durable medical equipment company called Best First Administration (“BFA”). BFA was formed, initially, to provide durable medical equipment to patients referred to BFA from UTC. In July 2011, Tshombe Anderson and Brenda Anderson disassociated from UTC.
In April 2013, Tshombe Anderson agreed with Bankhead to open Union Medical Supplies and Equipment (“UMSE”). In August 2013, Tshombe Anderson opened Skycare Medical Supplies and Equipment (“SMSE”). Both companies were created in order to submit claims that were inappropriate to OWCP. The same medical information that BFA had received from UTC was used and billed to the same universe of claimants for duplicate, unwanted durable medical equipment that was not medically necessary, using outdated medical information. Tshombe Anderson continued to do so despite knowing that they were billing OWCP for items that were not associated with the claimant’s injuries and that claimants were often refusing or rejecting the durable medical equipment for which their company had billed.
Tshombe Anderson had access to the operating accounts for UMSE and routinely transferred large sums of cash from those accounts for his personal use or to launder through business accounts for a shell company called American Federal Union Claims Advocates, as well as accounts associated with his law office.
The total amount paid to OWCP for UMSE and SMSE was $26,572,458.93.
The DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General investigated the case. Assistant U.S. Attorneys Nicole Dana and P.J. Meitl prosecuted.
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Couple Who Produced Child Pornography Get Decades in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today that Sherri Smith and Joseph Williams were sentenced to 60 years and 80 years in prison, respectively, for their roles in exploiting multiple children to produce child pornography.
Smith, 48, of Osceola, Indiana, and Williams, 53, of Watervliet, were in a dating relationship and sexually exploited six children in their care and custody to produce multiple images of child pornography. The victims ranged in age from six months to fourteen years. Williams shared some of the images with an undercover police officer in Cincinnati via an encrypted messaging application, which led to their investigation and prosecution. Smith pleaded guilty on October 17, 2017 to two counts of production of child pornography. Williams pleaded guilty on December 7, 2017 to two counts of production of child pornography and one count of distribution of child pornography.
The government noted at sentencing that the behavior was depraved and represented ongoing, systemic, and horrific abuse of multiple children. Williams’s residence was, as Chief U.S. District Court Judge Robert Jonker agreed, a "child pornography house of horrors." In sentencing the defendants, Judge Jonker noted that this case was "truly, if not the worst, then one of the two or three worst cases" he had seen and described the images Smith and Williams produced as disgusting and difficult to view.
U.S. Attorney Birge stated, "This prosecution and sentence demonstrates that this kind of depravity will be prosecuted and punished to the fullest extent of the law. My office will not tolerate the abuse and exploitation of children."
"The significance of these sentences underscores the importance of keeping innocent children safe from predators. It is our hope that each of the victims in this case can gain a sense of closure and begin the healing process," said Timothy R. Slater, Special Agent in Charge, Detroit FBI. "The FBI is committed to the arrest and prosecution of anyone who engages in such horrific behavior that endangers some of the most vulnerable members of our society."
This case was investigated by FBI offices in Cincinnati, Ohio, St. Joseph, Michigan, and South Bend, Indiana. Assistant U.S. Attorney Alexis M. Sanford prosecuted the case and the U.S. Attorney’s Office for the Northern District of Indiana assisted in the investigation.
END
Convicted Felon Sentenced to 15 Years for Possessing A Firearm and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. today sentenced Arvester Lamonica Anderson (47, Tampa) to 15 years in federal prison for possessing a firearm as a convicted felon. The court also ordered him to forfeit the firearm and ammunition used in the offense. Anderson pleaded guilty on February 1, 2018.
According to court documents, on June 22, 2017, Anderson and his roommate became involved in an altercation and the roommate, believing that Anderson had threatened him with a firearm, called the police. Officers from the Tampa Police Department responded and found a loaded pistol in Anderson’s closet. Anderson subsequently admitted to possessing the firearm. Due to his several prior felony convictions, Anderson is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
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.
Chinese National Charged with Illegal ReentryRead the Press Release
BOSTON - A Chinese national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Chun Lin Zhang, 41, was indicted on one count of illegal reentry of a deported alien.
According to court documents, Zhang was previously deported on July 17, 1999. Law enforcement officers discovered Zhang on Jan. 29, 2018, and determined him to be illegally present in the United States.
The charge of illegal reentry provides for a sentence of no greater than two years in prison, up to three years of supervised release, and a fine of $250,000. Zhang will be subject to deportation upon completion of any sentence imposed. 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 and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting this case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charleston Felon Sentenced to Federal Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston felon who possessed a firearm in August 2017 was sentenced yesterday to five years in federal prison, announced United States Attorney Mike Stuart. Vincent Deward Beatty, 40, previously pleaded guilty to being a felon in possession of a firearm. U.S. Attorney Stuart commended the investigation of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Metropolitan Drug Enforcement Network Team (MDENT).
“As part of our ongoing efforts to reduce violent crime in our communities, my office is working with ATF and other law enforcement partners, to aggressively prosecute convicted felons that possess firearms,” said United States Attorney Mike Stuart. “I strongly support the Second Amendment but convicted felons have forfeited the right to bear arms.”
On August 7, 2017, Beatty sold a Smith & Wesson .22 caliber pistol to an MDENT confidential informant for $200. Beatty admitted at his plea hearing that he had the gun in his possession at the time of the sale. Beatty is prohibited from possessing any firearms under federal law because of a 2007 felony conviction for aggravated assault in Union County, New Jersey.
Assistant United States Attorney Matt Davis was in charge of the prosecution. United States District Judge Joseph R. Goodwin, handed down 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.
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Cape Cod Woman Charged with Mail FraudRead the Press Release
BOSTON – A Cape Cod woman was indicted today in federal court in Boston in connection with a fraudulent lottery scheme.
Ashley Barrett, 25, of Hyannis, was indicted on seven counts of mail fraud. On March 29, 2018, Barrett was arrested and was released from custody on conditions.
According to the indictment, between September 2012 and January 2016, Barrett and others devised a scheme to defraud victims across the country by falsely representing to them that they had won millions of dollars in a lottery, and that, in order to receive their winnings, they had to pay a fee. The victims were directed to make payments to specific addresses. Between May and July 2015, one victim mailed Barrett seven checks totaling $23,600.
In March 2018, co-conspirator Peter Anthony Chin Jr. was indicted in connection with his role in the scheme.
The charging statute for mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California and Ohio Residents Sentenced to More than 5 Years in Prison for Trafficking MethamphetamineRead the Press Release
Residents of California and Ohio were sentenced to more than five years in federal prison today for trafficking more than fifteen kilograms of methamphetamine into Florida.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office; and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Ricardo Zavala, 24, of California, and Jeffery Clevenger, 65, of Ohio, were each sentenced to 78 months in prison, to be followed by 3 years of supervised release, by Senior United States District Judge William J. Zloch. Previously, Zavala and Clevenger each pled guilty to one count of conspiracy to possess with intent to distribute methamphetamine, in violation to Title 21, United States Code, Sections 846 and 841(b)(1)(A).
According to the court record, including information presented at the sentencing hearing, Zavala and Clevenger arranged to travel to the Southern District of Florida from California to sell more than fifteen kilograms of methamphetamine. The defendants traveled by car to a Broward County hotel with the methamphetamine, on November 20, 2017. The defendants subsequently transported the narcotics and were taken into custody.
Mr. Greenberg commended the investigative efforts of ICE-HSI and BSO. This case was prosecuted by Assistant U.S. Attorney Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
California Man Sentenced on Sex and Drug Trafficking ChargesRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on April 18, 2018, Chief United States District Court Judge Daniel L. Hovland sentenced Montay Maurice Knight, a/k/a Fresh, age 35, of Indio, CA, to 6 years and 7 months in a federal prison, to be followed by five years supervised release, on charges of Transportation for Illegal Sexual Activity and Conspiracy to Distribute and Possess with intent to Distribute a Controlled Substance. Knight was further ordered to pay $200 in special assessments to the Crime Victims’ Fund.
This case came to the attention of law enforcement on March 4, 2017, when the Bismarck Police Department responded to the My Place hotel when, an adult female, called 911 and reported that her boyfriend, Montay Knight, had hit, choked and threatened to kill her. The victim said that approximately three months into her relationship with Knight, Knight began asking her for money that she earned by engaging in commercial sex acts after she met him. The victim further stated she had been “working” for Knight in California by engaging in commercial sex acts. All the money she earned from the commercial sex acts went to Knight. The victim reported there had been previous assaultive behavior by Knight. The victim said Knight traveled to North Dakota about four (4) or five (5) weeks before the beginning of March 2017, for the purpose of selling drugs. Knight then directed her to put an advertisement on Backpage.com for Bismarck, ND, to see what type of response the advertisement would receive. Because of the number of responses to the victim’s Backpage.com advertisement, Knight instructed the victim to come to Bismarck, ND.
Upon arrival to North Dakota in February 2017, the victim engaged in commercial sex acts and turned over all her earnings to Knight. Knight was arrested for aggravated assault and during the search of Knight, incident to his arrest, Four Thousand Dollars ($4,000) in cash was found and seized.
This case was investigated by the Bismarck Police Department, Department of Homeland Security – Homeland Security Investigations, and the North Dakota Bureau of Criminal Investigation.Special Assistant United States Attorney Dawn M. Deitz prosecuted the case.
California Man Found Guilty of Kidnapping Lyft DriverRead the Press Release
WASHINGTON – Shane Browne, 27, formerly of Beverly Hills, Calif., has been found guilty by a jury of federal kidnapping and narcotics charges stemming from an incident last December in which he ordered a Lyft driver at gunpoint to drive him more than 70 miles from Maryland to an apartment building in Washington, D.C.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Browne was found guilty on April 18, 2018 of charges of kidnapping and possession with intent to distribute marijuana. The verdict followed a trial in the U.S. District Court for the District of Columbia. The Honorable Trevor N. McFadden scheduled sentencing for July 24, 2018. The charges carry a total statutory maximum of 25 years in prison. Under federal sentencing guidelines, Browne could face a possible range of 10 to 12 ½ years of incarceration.
At trial, the government’s evidence showed that on Dec. 11, 2017, Browne requested a ride using the Lyft smartphone application and ride-sharing service. The Lyft driver picked Browne up at approximately 3:20 p.m. at the Calvert House Apartments, in the 2400 block of Calvert Street NW. The driver drove Browne 72 miles to a Red Roof Inn in Aberdeen, Md.
After arriving in Aberdeen at approximately 5:20 p.m., the two parted ways at a nearby McDonald’s restaurant, with the Lyft driver having grown suspicious of Browne and indicating that he would not provide a round trip. Within approximately 30 minutes, Browne returned to the Lyft vehicle with a suitcase that he did not have at the start of the trip. Browne placed the suitcase in the trunk, and requested a return trip, which the driver refused to provide.
Ultimately, Browne entered the Lyft vehicle and yet again requested a return trip, which the driver once again refused to provide. At this point, according to the government’s evidence, Browne took out a firearm, held it to the driver’s head, and ordered him to drive them back to the Calvert House Apartments. The driver then drove Browne and his suitcase to the Calvert House Apartments. Along the way, and as confirmed by Lyft business records, the driver managed to send an e-mail to Lyft that read, “Call the police I’m on [sic] trouble.”
At about 7:30 p.m., they arrived at the apartment building. Browne exited the vehicle and took his suitcase and entered the building. The driver, meanwhile, contacted OnStar and was subsequently referred to 911. MPD officers responded to the area at approximately 8:05 p.m. The officers monitored the building and ultimately detained Browne as he left a unit.
The following day, a search warrant was executed at the apartment, and law enforcement recovered approximately 78 pounds of marijuana in suitcases similar to the one that Browne had placed in the Lyft driver’s car, approximately $35,000 in cash, a cash-counting machine and other items. No firearm was recovered in the search.
Browne has been in custody since his arrest on Dec. 11, 2017.
In announcing the verdicts, U.S. Attorney Liu, Assistant Director McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Violent Crimes Task Force, which includes MPD detectives, and the MPD officers who responded to the scene. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences, the FBI’s Baltimore Division, the FBI Operational Technology Division, and the Harford County, Md. Sheriff’s Department.
They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Chrisellen Kolb, Deputy Chief of the Appellate Division; Assistant U.S. Attorney Christopher Brown; Special Assistant U.S. Attorney Parker Tobin; Paralegal Specialists Candace Battle, Jeanette Litz, Catherine O’Neal, Kim Hall, and Teesha Tobias; Supervisory Paralegal Specialist Mary Downing; Legal Assistants Latoya Wade, Peter Gaboton, and Katie Cowley; Litigation Technology Specialist Claudia Gutierrez; Criminal Investigator John Marsh; Sarah McClellan, Chief of the Victim Witness Assistance Unit, and Victim/Witness Advocate Yvonne Bryant. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Sara Vanore and Stephen J. Gripkey, who indicted and tried the case.
Calera Woman Sentenced to 6 Months, $70,000 Restitution for Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Regina Lynn Trent, age 46, of Calera, Oklahoma was sentenced to 6 months imprisonment, 6 months home detention, and 3 years supervised release for three counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343. The charges arose from an investigation by the Federal Bureau of Investigation. The defendant was also ordered to pay $70,328.72 in restitution and the court entered an order imposing a money judgment in the amount of $70,328.72.
The Information alleged that on three separate occasions in 2015, in the Eastern District of Oklahoma and elsewhere, the defendant unlawfully and for the purpose of executing a fraudulent scheme, caused to be transmitted by means of wire communication in interstate commerce writings, signs, signals, pictures, and sounds, ACH debits in various amounts, paid from Parity Trucking Company’s First Texoma National Bank checking account ending in xxx0886 and transferred to Comdata’s bank account ending in xxx1506 at Regions Bank in Nashville, Tennessee.
“The defendant’s fraudulent scheme deprived a small business owner of a significant amount of money,” said United States Attorney Brian J. Kuester. “Because of the hard work of the FBI and members of this office, the defendant’s crimes were thoroughly investigated, she was prosecuted, and will be held accountable. This office will make every effort to ensure that the defendant pays the restitution the Court has ordered to make the victim whole.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Kristin Harrington represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Buffalo Man Sentenced on Drug and Gun ChargesRead 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 Antoine Edwards, 42, of Buffalo, NY, who was convicted of possession of a firearm in furtherance of drug trafficking and possession with intent to distribute cocaine, was sentenced to 66 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that on July 9, 2016, Buffalo Police Officers responded to a shots fired call in Buffalo. A female caller reported that a male fired a gun into the air and then fled. When officers arrived at the scene, the caller identified the shooter as the defendant and gave the officers his address, and a description of his vehicle, as well as a physical description. The woman stated that she and Edwards were arguing when he fired shots in the air.
Later that night, officers saw the defendant’s car and performed an investigative stop. As they approached the vehicle, officers saw three open liquor bottles in the center console, a cup and a black Taser box. Officers asked the defendant if he had any weapons in the car and the defendant responded that he had a Taser. Edwards was removed from the car and the Taser was taken away.
A drawstring bag on the driver’s seat contained a loaded gun, powder cocaine, and a scale containing white residue.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Buffalo Man Pleads Guilty to Selling Cocaine and FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Rashawn Brown, 31, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute, and distribution of, crack cocaine and fentanyl. The charge carries a maximum penalty of 30 years in prison and a $20,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on four occasions between March 31, 2017, and April 24, 2017, the defendant sold crack cocaine to an undercover officer working with the Lackawanna Police Department. On one occasion, Brown also sold both fentanyl and crack cocaine to the undercover officer.
The defendant was previously convicted in September 2012 in Erie County Court of Criminal Possession of a Controlled Substance in the Fifth Degree, a felony.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the Lackawanna Police Department, under the direction of Chief James Michel.
Sentencing is scheduled for August 1, 2018, before Judge Arcara.
Bristol Woman Sentenced to 4 Years in Federal Prison for Defrauding Medicaid ProgramRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, and Chief State’s Attorney Kevin T. Kane announced that RONNETTE BROWN, 45, of Bristol, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 48 months of imprisonment, followed by three years of supervised release for defrauding Connecticut’s Medicaid program.
On May 26, 2017, a jury found Brown guilty of 23 counts of health care fraud and one count of conspiracy to commit health care fraud.
According to the evidence at trial, Brown owned and operated WeMPACT, LLC, a social services business with offices in Bristol and Torrington. Between August 2010 and April 2014, Brown billed Medicaid for psychotherapy services that were not performed. In addition to that scheme, Brown separately conspired with Beverly Coker and another unnamed individual to bill Medicaid for psychotherapy services that represented Coker had performed the services when, in fact, the services were provided by unlicensed individuals, or were not provided at all.
According to court documents and statements made in earlier court proceedings, Coker, a licensed clinical social worker, owned and operated New Beginnings Family Center, LLC, in Hartford. On April 8, 2016, Coker, of Windsor, pleaded guilty to one count of health care fraud, admitting that between October 2010 and November 2011, she engaged in a scheme to defraud Medicaid by permitting Brown and another individual to bill Medicaid for psychotherapy services using Coker’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Coker kept 30 percent of the proceeds, and paid the remaining 70 percent to Brown and the other individual. As part of her plea, Coker admitted to defrauding Medicaid of approximately $214,555 through the scheme.
Judge Bolden ordered Brown to pay restitution in the amount of $2,033,962.
Brown has been released on a $100,000 bond since her arrest on May 23, 2016. Judge Bolden order her to report to prison on May 31, 2018.
Coker awaits sentencing. Three other individuals were charged and convicted of health care fraud offenses stemming from this investigation.
This matter has been jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Durham also thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
This matter is being prosecuted by Assistant U.S. Attorneys David J. Sheldon and Christopher W. Schmeisser.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Brazilian Couple Indicted in ATM Skimming SchemeRead the Press Release
BOSTON – A Brazilian couple was indicted in federal court in Boston in connection with an ATM skimming operation.
Alexandre Kawamura, 42, was indicted today on two counts of using a counterfeit access device, four counts of possessing device-making equipment, and two counts of aggravated identity theft. On April 12, Karem Kawamura, 25, was indicted on one count of aiding and abetting the use of a counterfeit access device. The Kawamuras were charged by complaint on March 30, 2018, and are both currently in custody.
According to the complaint affidavits, the ATM skimming equipment consisted of devices attached to ATM card slots that recorded bank account information on the magnetic strips of debit cards that unwitting victims inserted into ATMs, combined with pinhole cameras that captured the victims entering their PINs on ATM keypads. Alexandre Kawamura was caught on ATM security video placing and removing skimming devices on drive-up ATMs at Eastern Bank branches in Saugus, Stoneham, and Medford between Feb. 24 and March 16, 2018. On two occasions, when he drove up to the ATMs to check on the devices, Karen Kawamura was in the car.
On March 16, 2018, a bank customer called local police to report that he had found and removed a skimming device from the drive-up ATM at the Eastern Bank branch in Stoneham. Police responded and discovered that the pinhole camera was still attached to the ATM. They set up surveillance while bank security personnel monitored the ATM’s security video, and shortly before 11 pm, Alexandre Kawamura drove up to the ATM in a rental car, looked around for the skimming device, never inserted a card into the machine, and then drove off. Stoneham Police stopped Alexandre Kawamura’s car shortly thereafter. Mr. Kawamura had a Brazilian passport in his true name, but had rented the vehicle under an alias.
The same alias was embossed on a credit card in Alexandre Kawamura’s possession when he was arrested, but the bank account information contained in the magnetic strip of the card belonged to a bank customer whose debit card had been compromised at one of the Eastern Bank ATMs the day before. Eastern Bank records showed that, on the day of Mr. Kawamura’s arrest, purchases were made on the bank customer’s account at Dick’s Sporting Goods in Medford. The store’s security camera recorded the defendants shopping at that store during the time when the bank customer’s account was used to buy a shirt, jacket, and hat.
After Mr. Kawamura was arrested, federal agents located Ms. Kawamura at an Extended Stay America in Woburn. On March 30, agents executed a search warrant for the room used by Ms. Kawamura and found the shirt, jacket, and hat that had been purchased at Dick’s Sporting Goods.
The charge of using a counterfeit access device 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. The charge of possession of device-making equipment provides for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to run concurrently with any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000. The charge of aiding and abetting the use of a counterfeit access device 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. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Medford Police Chief Leo Sacco; Milton Police Chief John E. King; Saugus Police Chief Domenic J. DiMella; Stoneham Police Chief James T. McIntyre; and Woburn Police Chief Robert J. Ferullo Jr. made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bradenton Man Sentenced for Trafficking CarfentanilRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Kevon Melendez (22, Bradenton) to five years and three months in federal prison for possessing with the intent to distribute carfentanil and cocaine. He pleaded guilty on January 12, 2018.
According to court documents, on February 14, 2017, law enforcement officers with the Drug Enforcement Administration and the Manatee County Sheriff’s Office were searching for a fugitive when they observed the fugitive riding in the backseat of a car Melendez was driving. As the officers approached the vehicle, they smelled the odor of marijuana coming from inside the car. The officers observed Melendez with a scale between his legs. As an officer was removing Melendez from the car, he observed Melendez drop a plastic bag containing several substances. Those substances later tested positive for cocaine (27.99 grams) and carfentanil (approximately 11 grams). Melendez also had $580 on his person.
This case was investigated by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Boston Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for failing to register as a sex offender.
Rodney Anderson, 47, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to a year and a day in prison and five years of supervised release. In December 2017, Anderson pleaded guilty to one count of failure to register as a sex offender.
Anderson is required to register as a sex offender in Massachusetts based on a North Carolina state court conviction for second degree rape in 1986. According to court documents, shortly following his release from custody in 2014 for his 1986 conviction, Anderson left North Carolina for Massachusetts. When he arrived, he failed to report to authorities, but was tracked to a residence in Boston.
United States Attorney Andrew E. Lelling; U.S. Marshal John Gibbons of the District of Massachusetts; and Boston Police Commissioner William B. Evans made the announcement. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Boston Man Charged with Selling Crack Cocaine on the Veterans Affairs Medical Center Campus in BedfordRead the Press Release
BOSTON – A Boston man was charged today in federal court in Boston in connection with a scheme to distribute crack cocaine on the Veterans Affairs (VA) Medical Center campus in Bedford.
Demone Coleman, 39, was indicted on four counts of distributing cocaine base, also known as crack cocaine. In October 2017, Coleman and two others, Michael Sexton and Austin Wilkerson, were charged in a criminal complaint. Coleman was arrested in December 2017 and has been held in custody since.
According to court documents, in January 2017, a cooperating witness reported to law enforcement that Coleman was selling crack cocaine to an individual residing at the VA Medical Center. On four occasions in 2017 Coleman provided crack cocaine to his contact at the VA, who then sold it to the cooperating witness on the VA Medical Center campus in Bedford.
Coleman faces a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of up to $1 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; Sean Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Shawn Kelly, Chief of Police of the U.S. Department of Veterans Affairs Police Service, Bedford VA Medical Center, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bank Robber SentencedRead the Press Release
U.S. Attorney Duane A. Evans announced that CASEY JOHNSON, age 27, was sentenced today after pleading guilty to one count of Bank Robbery with a Firearm in violation of Title 18, United States Code, Sections 2113(a) and (d) and 2. The defendant admitted to his participation in the December 2014 robbery of a J.P. Morgan Chase drive-up location in the Gentilly neighborhood of New Orleans.
U.S. District Judge Carl J. Barbier sentenced JOHNSON to six years in the Federal Bureau of Prisons. Following the completion of his sentence, JOHNSON will be on supervised release for a period of three years.
The U.S. Attorney Evans wishes to thank the hard work of the FBI’s Violent Crime Unit in investigating this matter. The case was handled by prosecutors Myles Ranier and David Haller.
Baltimore City Man Indicted for Possessing A Firearm That Discharged and Injured A Baltimore City Police OfficerRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury indicted Allen Johnson, age 35, of Baltimore City, Maryland, on charges relating to his possession of a firearm that discharged while Baltimore City Police Officers were placing him into custody. Johnson was prohibited from possessing a firearm at the time because he had sustained at least one previous felony conviction. The indictment charges Johnson with possession of a firearm by a prohibited person; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division; and Commissioner Darryl D. De Sousa of the Baltimore City Police Department.
On November 29, 2017, officers of the Baltimore City Police Department received information that Johnson was in the 800 block of Bridgeview Avenue in Baltimore City and was armed with a firearm hidden in his waistband. Police officers responded to the 800 block of Bridgeview Avenue and observed Johnson. Officers approached Johnson and asked him if he was in possession of a firearm. Johnson then turned away from the officers and reached for his waistband. One of the officers grabbed Johnson from behind as Johnson continued to reach for his waistband. The police officer wrestled Johnson to the ground and, during the struggle, the firearm that was in Johnson’s possession discharged, striking the police officer in his right hand. Other officers were able to utilize Taser devices to subdue Johnson and place him under arrest. Subsequent to his arrest, Johnson was searched and police officers retrieved numerous vials of narcotics. The injured police officer was taken to the hospital for medical treatment.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the ATF and Baltimore City Police Department for their work in the investigation. Mr. Hur thanked Assistant United States Attorneys John W. Sippel, Jr. and Patricia C. McLane, who are prosecuting this case.
Anchorage Woman, Inmate Pleads Guilty to Distributing Fentanyl in PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage woman, who is an inmate at Hiland Mountain Correctional Center (HMCC), pleaded guilty yesterday to distributing fentanyl to other inmates while in prison.
Dorothy Elizabeth Lantz, 36, of Anchorage, pleaded guilty before U.S. District Judge Ralph R. Beistline to an indictment alleging three counts of distribution of a controlled substance. The sentencing hearing has been scheduled for July 9, 2018, at 11:00 a.m.
According to court documents, on October 30, 2017, Lantz, an inmate of the Alaska Department of Corrections (DOC), was transferred from Anchorage Correctional Complex to HMCC, while carrying fentanyl inside her body. When she arrived at HMCC that afternoon, Lantz distributed a quantity of fentanyl to another HMCC inmate, and distributed a quantity of fentanyl to two other HMCC inmates the next day, October 31, 2017. In all, between October 30 and October 31, 2017, four HMCC inmates collapsed after taking fentanyl, and one of those inmates collapsed two separate times during that time period. All four inmates were resuscitated and survived. DOC personnel were able to recover .38 grams of fentanyl from one of the HMCC inmates who overdosed after taking fentanyl. The investigation revealed that Lantz had traded the drugs to her fellow HMCC inmates in exchange for commissary items.
The law provides for a maximum sentence of 20 years in prison and a fine of $1 million, or both, on the charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the criminal history, if any, of the defendant.
The Drug Enforcement Administration (DEA) conducted the investigation, with assistance from DOC’s Professional Conduct Unit, which led to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Andrea W. Hattan.
Amherst Man Pleads Guilty to Health Care Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Umar Adeyola, 48, of Amherst, NY, pleaded guilty to conspiracy to commit health care fraud before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that the defendant founded, organized, and managed the HEART Foundation, a not-for-profit organization intended to assist area youths, and Heart Community Alliance (“HCA”), a related for-profit organization, intended to provide clinical services, such as counseling and psychotherapy, to youths. Through his role with those organizations, Adeyola engaged in two major fraud schemes.
The first scheme involved attempts by the defendant, on behalf of HCA, to defraud private insurance companies Blue Cross Blue Shield, Independent Health, and Univera. Adeyola arranged for the submission of false and fraudulent bills for office visits using the names and/or provider numbers of healthcare providers who had not actually rendered the services claimed. The bills falsely represented that the services had been rendered by properly licensed and credentialed social workers when, in fact, the services had actually been provided by other individuals, including interns. The scheme included the submission to the same insurance companies of bills for services which purported to have been rendered by a social worker who was actually hospitalized and/or deceased on the dates of service claimed.
In addition, Adeyola falsified documents in response to an audit of HCA by Independent Health. During the course of the audit, the defendant made materially false statements to representatives of Independent Health, with respect to the deceased social worker who he claimed had rendered services at HCA.
The second scheme involved Adeyola’s theft of government funds in the form a federally funded grant received by the Heart Foundation. Specifically, in April 2013, the Heart Foundation was selected to be a recipient of a Department of Labor grant, administered by the Latino Coalition, an entity in California. Adeyola submitted in excess of 30 false and fraudulent reimbursement requests for grant funds, resulting in payment of approximately $135,000 to the Heart Foundation.
The plea is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Peter Nozka, Acting Special Agent-in-Charge of the New York Region; the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons; and the Department of Health and Human Services, Office of Inspector General, Office of Investigations under the direction of Special Agent in Charge Scott Lampert.Sentencing is scheduled for July 23, 2018, before Judge Vilardo.
Akron Man Sentenced to Federal PrisonRead the Press Release
CHARLESTON, W.Va. – Lonnie Brown, 47, of Akron, Ohio, was sentenced today to 30 months in prison, announced United States Attorney Michael B. Stuart. He was caught with a firearm in September 2016 and selling fentanyl in February 2017. Stuart praised the investigative efforts of the Metropolitan Drug Enforcement Network Team (MDENT), the Kanawha County Sheriff’s Department STOP Team, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
“Felons, guns and drugs do not mix,” said United States Attorney Mike Stuart. “Guys like Brown are a danger to the safety of our citizens and law enforcement officers and should be locked up.”
On September 26, 2016, officers with the Charleston Police Department conducted a traffic stop on a Honda Accord in Charleston. Brown fled the vehicle on foot. During the search of the vehicle, officers located a Glock, Model 27, caliber .40 semi-automatic pistol in the floorboard where Brown had been sitting. Brown was prohibited from possessing any firearm under federal law because he had been convicted in 2015 in Montgomery County, Ohio for possession of heroin.
On February 15, 2017, agents with the Metropolitan Drug Enforcement Network Team used a confidential informant to make a controlled buy of heroin from the defendant. The buy occurred at 602 Randolph Street, Apartment B, in Charleston. The defendant provided the informant with suspected heroin. The substance tested positive for fentanyl.
Assistant United States Attorney Stephanie S. Taylor handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
The drug prosecution is 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 pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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.
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Ahoskie Gang Member Sentenced to 10 Years in Federal Prison in Firearms CaseRead the Press Release
RALEIGH - United States Attorney Robert J. Higdon, Jr. announced that today, RASHEM SANTA PERRY, 26, of Ahoskie was sentenced in United States District Court today. The charges stem from a search of the defendant’s residence on May 5, 2017.
Chief U.S. District Judge James C. Dever, III sentenced PERRY to 120 months in prison following his plea of guilty to being a felon in possession of firearms. PERRY has been validated as a high-ranking member of the United Blood Nation street gang. On May 4, 2017, Ahoskie Police Department Officers used a confidential informant to purchase marijuana from another individual from PERRY’s residence. The informant was also able to purchase a stolen .22 rifle. The following day, May 5, 2017, officers from the Ahoskie Police Department and agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant at PERRY’S residence. The officers found PERRY running from a rear bedroom. In a closet in that bedroom was an AR-15 rifle and a partially loaded 30-round AR-15 magazine. A .40 caliber handgun was also seized from the residence. The rifle had been reported stolen in Ahoskie on April 29, 2017. The .40 caliber handgun was one of approximately 30 handguns stolen during the burglary of TAMZ Guns in Ahoskie on April 15, 2017. Subsequent to PERRY’S arrest, he attempted to obstruct the investigation by directing other gang members to have a 14-year-old boy take responsibility for the firearms.
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.
Investigation of this case was conducted by the Ahoskie Police Department, the Down East Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney John Bennett is prosecuting the case.
Additional Charges Filed Against Alaska Woman Who Allegedly Defrauded Medical Practice of at Least $550,000Read the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that additional bank fraud charges have been filed against an Alaska woman who allegedly defrauded an Anchorage medical practice of at least $550,000.
Jill Diane Applebury, aka: “Jill Wetzsteon,” 53, d/b/a Applebury Accounting Services, and her husband Darin Wade Applebury, 53, both of Anchorage, have been named in a 53-count superseding indictment charging them with bank fraud, wire fraud, fraudulent transactions with an access device, and aggravated identity theft. The superseding indictment includes an additional 14 counts of bank fraud against Jill Applebury, which arose from a related scheme.
From the mid-1990’s until March 2013, Jill Applebury was the independent contractor bookkeeper for an Anchorage medical practice, which was owned and operated by an Anchorage physician. The superseding indictment alleges that from at least 2004 until March 22, 2013, Jill Applebury and Darin Applebury defrauded the Anchorage medical practice in several ways.
According to the superseding indictment, the additional bank fraud charges stem from May 2008 to January 2010, when Jill Applebury used the medical practice’s funds to pay her independent contractor Federal Income Tax Withholding on her nonemployee compensation without authority. Therein, Jill Applebury executed unauthorized and fraudulent transactions from the medical practice’s business bank account to the IRS, wherein the medical practice paid her IRS individual income tax without any reduction in her nonemployee compensation without the knowledge or consent of the medical practice.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorneys Retta-Rae Randall and Andrea W. Hattan.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.