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Wednesday 28 February 2018
San Francisco Resident Sentenced to Ten Years in Prison for Conspiracy to Distribute Methamphetamine, Firearms Possession and Related ChargesRead the Press Release
SAN FRANCISCO – Vincente Cruz was sentenced today to 120 months in prison for conspiring to distribute and possess with intent to distribute methamphetamine, being a felon in possession of a firearm, and related charges, announced Acting United States Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down today by the Honorable Edward M. Chen, United States District Judge.
Cruz, 36, of San Francisco, pleaded guilty on November 15, 2017, to the drug distribution-related and firearms possession-related charges. According to his plea agreement, on September 26, 2016, Cruz possessed and sold more than 55 grams of methamphetamine. Cruz further admitted that on October 25, 2016, he possessed a .22 caliber Ruger pistol as well as methamphetamine that he intended to distribute. Cruz admitted that at the time he possessed the pistol, he was legally disqualified from doing so because of a prior felony conviction. Additionally, Cruz admitted that on October 27, 2016, he sold another 92.9 grams of a substance containing a detectable amount of methamphetamine.
On June 29, 2017, a federal grand jury indicted Cruz and co-defendant Etevati Levi, charging them both with conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(B)(viii), and possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii). In addition, Cruz was charged in the indictment with one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. § § 841(a)(1) and (b)(1)(A)(viii), and being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). Pursuant to his plea agreement, Cruz pleaded guilty to all four counts with which he was charged in the indictment.
In addition to the prison term, Judge Chen also sentenced the defendant to a five-year period of supervised release. Cruz has been in federal custody since entering his guilty plea on November 15, 2017, and will begin serving his sentence immediately.
For his part in the scheme, Levi pleaded guilty on September 27, 2017, to the two charges filed against him in the indictment. On December 13, 2017, Judge Chen sentenced Levi to 60 months in prison and four years of supervised release. Levy is in federal custody and has been serving his sentence since August 23, 2017.
Assistant U.S. Attorney Karen Kreuzkamp is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the ATF and concludes another case brought as part of Operation Cold Day, an effort spearheaded by the ATF to bring federal resources to bear in support of ongoing state and local efforts to combat gun and drug-related crime.
Port Arthur Convicted Felon Sentenced for Gun ViolationsRead the Press Release
BEAUMONT, Texas - A 43-year-old Port Arthur, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Robert Lee Johnson, Jr., pleaded guilty on Oct. 31, 2017, to being a felon in possession of a firearm and was sentenced to 44 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Feb. 22, 2016, law enforcement officers executed a search warrant at Johnson’s residence on 5th Avenue in Port Arthur. During the execution of the warrant, officers discovered drug paraphernalia, a digital scale, Johnson’s prisoner identification card, ammunition, and a loaded semi-automatic handgun. Further investigation revealed Johnson was a convicted felon, having been previously found guilty of numerous felony offenses, including multiple convictions for possession of cocaine. As a convicted felon, Johnson is prohibited from owning or possessing firearms or ammunition. Johnson was indicted by a federal grand jury on Aug. 10, 2017 and charged with federal firearms violations.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Port Arthur Police Department, and the Jefferson County Crime Lab. This case was prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Pittsburgh-area Drug Dealer Gets 8 Years for Selling Fatal Dose of FentanylRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 96 months in prison on his guilty plea to violating federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Court Judge Joy Flowers Conti imposed the sentence yesterday on Matthew David Adams, age 29.
In connection with the guilty plea, the court was advised that Adams was a drug dealer who sold both heroin and fentanyl. Adams sold 15 stamp bags marked "OMG" and two of those bags were given to the victim who died as a result of using the fentanyl in them. After law enforcement officers identified Adams as the dealer of the deadly drugs, he was arrested and found in possession of stamp bags containing fentanyl and others containing heroin. In Court, Adams admitted that the fentanyl he sold caused the April 19, 2016 death of Jesse James King in Houston Borough, Washington County.
Judge Conti told Adams that he would have to live with the fact that he caused the death of another person "for the rest of [his] life" and ordered that he be supervised by federal Probation Officers for five years after his release from the 8-year term of imprisonment. Judge Conti imposed strict conditions on Adams’ supervision which included requirements that he work at least 30 hours per week, not associate with felons, notify his Probation Officer if he is stopped or questioned by police, and pay his debt to society. The defendant personally apologized for becoming involved in the incident that brought him to federal court.
Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor in the Violent Crime section of the U.S. Attorney’s Office, prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration (DEA), the Washington County Drug Task Force, the Washington County Sheriff’s Office, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the Washington County District Attorney’s Office, and numerous local police departments including the Canonsburg Police Department, the Stowe Township Police Department, the Donora Police Department, the Monessen Police Department, and the Charleroi Police Department, as well as the Washington County Coroner’s Office and the Allegheny County Medical Examiner’s Office, for the investigation leading to the successful prosecution of Adams.
Pittsburgh Man Sentenced in Heroin and Fentanyl Trafficking SchemeRead the Press Release
PITTSBURGH – A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 12 months and one day in jail, to be followed by three years of supervised release on his convictions for conspiracy to possess with the intent to distribute heroin, as well as heroin and fentanyl, and possession with the intent to distribute and distribution of heroin and fentanyl, United States Attorney Scott W. Brady announced today.
On February 27, United States District Judge Nora Barry Fischer imposed the sentence on Antoine Johnson, aka Twezzy, age 31.
According to information presented to the court, on December 2, 2016, Antoine Johnson, as part of a conspiracy with co-defendants Kimn Booth, Erik McCoy and Maurice Boxley, sold a heroin and fentanyl mixture to an undercover FBI Task Force Officer.
Assistant United States Attorney Timothy M. Lanni prosecuted this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.
Pittsburgh Man Charged with Trafficking CocaineRead the Press Release
PITTSBURGH – A former resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of trafficking cocaine, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on February 20, named Johnny Lee Jones, 46, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on March 13, 2017, Jones knowingly, intentionally, and unlawfully possessed with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not less than five years and up to 40 years imprisonment, a maximum fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation (FBI) and the Bethel Park Police Department conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Assaulting Two Federal OfficersRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of assault of federal officers, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on February 27, named Leonard Rushin-Felder, 21, as the sole defendant.
According to the indictment, on or about May 2, 2017, Rushin-Felder forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with two Deputy United States Marshals who were engaged in the performance of their official duties in the Joseph F. Weis, Jr., United States Courthouse.
The law provides for a maximum total sentence of not more than eight years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Rachael L. Dizard and Eric G. Olshan are prosecuting this case on behalf of the government. The United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pine Bluff Man Sentenced to Prison for His Role in Stealing Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced today that United States District Court Judge Kristine G. Baker sentenced Elbert Harris, 58, of Pine Bluff, to federal prison for his role in a widespread scheme to steal money intended for feeding children in low income areas in Arkansas.
Judge Baker sentenced Harris, who pleaded guilty to conspiring to commit wire fraud on October 10, 2017, to 33 months’ imprisonment, to be followed by three years of supervised release. Harris was also ordered to pay $1,084,130.13 in restitution and to forfeit property he bought with money he acquired during the scheme.
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs and they are reimbursed for the eligible meals they serve.
Harris was a sponsor for a feeding program through an organization called “Greater Faith Ministries.” Harris had 14 approved feeding site locations, which were located in Pine Bluff, Altheimer, and Wabbaseka. Harris submitted fraudulent claims to DHS, claiming to have fed many more children than were actually fed, and then DHS would reimburse him for that amount. Harris submitted claims of up to 165 children per day at some of his feeding sites, but fewer than 20 children were actually fed at these locations.
Harris is the 16th defendant sentenced who was charged in connection with a scheme to fraudulently obtain USDA program funds intended to feed children in low income areas. Other defendants include: Kattie Jordan (63 months imprisonment on March 15, 2016); Reuben Nims (21 months imprisonment on November 2, 2016); Tonique Hatton (108 months’ imprisonment on January 4, 2017); James Franklin (24 months’ imprisonment on January 10, 2017); Maria Nelson, (30 months’ imprisonment on January 31, 2017); Michael Lee (30 months’ imprisonment on May 1, 2017); Christopher Nichols (3 years’ probation on May 16, 2017); Gladys Waits (108 months’ imprisonment on July 17, 2017); Alexis Young (18 months’ imprisonment on August 18, 2017); Erica Warren (18 months’ imprisonment on August 18, 2017); Francine Leon (34 months imprisonment on September 21, 2017); Anthony Waits (175 months’ imprisonment on October 20, 2017); Jacqueline Mills (150 months imprisonment on December 6, 2017); Dorothy Harper (33 months imprisonment on January 9, 2018); and ); and Waymon Weeams (15 months imprisonment on February 15, 2018).
Debora Washington was indicted on conspiracy and fraud charges related to this scheme on February 1, 2018, and is awaiting a jury trial in front of United States District Judge J. Leon Holmes. Also, Nigel Hall has pleaded guilty to conspiracy to commit wire fraud in relation to the same feeding programs and is awaiting sentencing before Judge Holmes at a later date.
The investigation is still ongoing and continues to be conducted by the USDA–Office of Inspector General, IRS–Criminal Investigations, and the FBI. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison W. Bragg, and Cameron McCree.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Pendleton County man sentenced to 70 months for firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Randy David May, of Franklin, West Virginia, was sentenced today to 70 months incarceration for a firearms violation, United States Attorney Bill Powell announced.
May, age 37, pled guilty to “Felon in Possession of a Firearm” in October 2017. May, having been convicted of three prior felonies, admitted to possessing a 12-gauge shotgun on August 28, 2016 in Pendleton County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.Pekin Man Sentenced to Two Years in Prison for Defrauding Elderly VictimRead the Press Release
PEORIA, Ill. - A Pekin, Ill., man has been ordered to serve 24 months in federal prison for defrauding an elderly victim of his life savings over a two-year period. U.S. District Judge Joe Billy McDade today sentenced Deryl Wright, 42, of the 1400 block of Camden St., to the prison term and ordered that Wright pay restitution in the amount of $100,585 to the victim. Wright has been in the custody of the U.S. Marshals Service since his arrest on Oct. 2, 2017.
In an announcement on Feb. 22, 2018, the U.S. Attorney’s Office cited Wright’s case among more than 250 defendants in a nationwide elder fraud sweep by the Department of Justice. The Department has made prosecuting fraud schemes that target the elderly a key priority.
On Nov. 22, 2017, Wright entered pleas of guilty to charges that he defrauded an elderly, vulnerable victim under the premise that Wright’s father had died and he was to inherit a large sum of money. From 2015 to April 2017, Wright told the victim that he needed to borrow money to receive the inheritance check and that he would pay back the victim from the inheritance money. In fact, Wright had no such inheritance check; rather, the money he obtained from the victim was used to support his lifestyle and for his personal benefit.
The Pekin Police Department investigated the charges. Assistant U.S. Attorney Katherine G. Legge prosecuted the case in the Peoria Division of the U.S. Attorney’s Office for the Central District of Illinois.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Pawtucket Man Facing 5-40 Years in Prison on Drug Trafficking ChargesRead the Press Release
PROVIDENCE, RI – David Reis, 41, of Pawtucket, is facing a statutory sentence of 5-40 years in federal prison for trafficking significant quantities of crack cocaine and cocaine when he is sentenced in May.
Following a lengthy investigation into Reis’ drug trafficking activities, which included controlled purchases of cocaine from Reis, members of the Pawtucket Police Special Squad executed a court authorized search of Reis’ residence on October 26, 2017. The search resulted in the seizure of 323.67 grams of cocaine, 188.26 grams of crack cocaine, and, among several other items, items used in the packaging and distribution of the drugs and an elaborate indoor/outdoor wireless video security system.
On Tuesday, Reis pleaded guilty to one count each of possession with intent to deliver 28 grams or more of cocaine base and possession with intent to distribute cocaine, announced United States Attorney Stephen G. Dambruch and Pawtucket Police Chief Tina Goncalves.
David Reis is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on May 18, 2017. The maximum statutory sentence for possession with intent to deliver 28 grams or more of cocaine base is 40 years’ imprisonment with a mandatory minimum term of 5 years in federal prison and a term of supervised release of 4 years up to lifetime supervised release. The maximum statutory sentence for possession with intent to deliver cocaine is 20 years’ imprisonment and a term of supervised release of 3 years up to lifetime supervised release.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
United States Attorney Stephen G. Dambruch thanks the Drug Enforcement Administration for their assistance in the prosecution of this matter.
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Owner of Numerous Miami-Area Home Health Agencies Sentenced to 20 Years in Prison for Role in $66 Million Medicare Fraud ConspiracyRead the Press Release
The owner and operator of numerous Miami, Florida-area home health agencies was sentenced to 240 months in prison today for his role in a $66 million conspiracy to defraud the Medicare program.
U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Field Office made the announcement.
Rafael Arias, 52, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, who ordered Arias to pay $66.4 million in restitution and to forfeit the gross proceeds traced to the offense. Arias pleaded guilty on Nov. 30, 2017, to one count of conspiracy to commit health care fraud and wire fraud.
“Today’s sentencing sends a clear message to anyone who is considering defrauding the Medicare system: You will not only be caught, prosecuted, and sent to prison, but you will also have to pay back all of your ill-gotten gains,” said Acting Assistant Attorney General Cronan.
“Arias assumed that in Medicare fraud lay a path to riches,” said Special Agent in Charge Richmond. “Instead he discovered that we are working tirelessly with our law enforcement partners to protect patients and taxpayers while holding criminals accountable for their unlawful actions.”
As part of his guilty plea, Arias admitted that, between December 2007 and September 2015, he was the owner and operator of more than 20 home health agencies. In many cases, however, Arias recruited nominee owners to falsely and fraudulently represent themselves as the agencies’ owners to hide his identity and ownership interest. Arias and his co-conspirators paid illegal bribes and kickbacks to patient recruiters to refer patients to these agencies, and submitted false and fraudulent home health care claims to Medicare for beneficiaries who, in many cases, did not qualify or for whom the services were never provided. In addition, Arias provided checks to other individuals and entities to cash so that Arias and his co-conspirators could obtain fraud proceeds to benefit themselves and further the fraudulent scheme.
Arias was charged along with Aylen Gonzalez, 39, of Hialeah, Florida; Ana Gabriela Mursuli Caballero, 51, of Miami; and Rafael Cabrera, 51, of Miami, in a July 2017 indictment. Gonzalez, a patient recruiter who owned a medical clinic and co-owned two home health agencies, pleaded guilty in November 2017 to one count of conspiracy to commit health care fraud and wire fraud and was sentenced to 180 months in prison. Mursuli Caballero, a patient recruiter and owner of two home health agencies, pleaded guilty in October 2017 to one count of conspiracy to commit health care fraud and wire fraud and was sentenced to 115 months in prison. Cabrera, who participated in laundering and concealing the proceeds from the fraud, pleaded guilty in November 2017 to one count of conspiracy to commit money laundering and was sentenced to 71 months in prison.
This case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys Angela Adams and Jessica Collins of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Owner of Numerous Miami-Area Home Health Agencies Sentenced to 20 Years in Prison for Role in $66 Million Medicare Fraud ConspiracyRead the Press Release
The owner and operator of numerous Miami, Florida-area home health agencies was sentenced to 240 months in prison today for his role in a $66 million conspiracy to defraud the Medicare program.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Field Office made the announcement.
Rafael Arias, 52, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, who ordered Arias to pay $66.4 million in restitution and to forfeit the gross proceeds traced to the offense. Arias pleaded guilty on Nov. 30, 2017, to one count of conspiracy to commit health care fraud and wire fraud.
“Today’s sentencing sends a clear message to anyone who is considering defrauding the Medicare system: You will not only be caught, prosecuted, and sent to prison, but you will also have to pay back all of your ill-gotten gains,” said Acting Assistant Attorney General Cronan.
“Arias assumed that in Medicare fraud lay a path to riches,” said Special Agent in Charge Richmond. “Instead he discovered that we are working tirelessly with our law enforcement partners to protect patients and taxpayers while holding criminals accountable for their unlawful actions.”
As part of his guilty plea, Arias admitted that, between December 2007 and September 2015, he was the owner and operator of more than 20 home health agencies. In many cases, however, Arias recruited nominee owners to falsely and fraudulently represent themselves as the agencies’ owners to hide his identity and ownership interest. Arias and his co-conspirators paid illegal bribes and kickbacks to patient recruiters to refer patients to these agencies, and submitted false and fraudulent home health care claims to Medicare for beneficiaries who, in many cases, did not qualify or for whom the services were never provided. In addition, Arias provided checks to other individuals and entities to cash so that Arias and his co-conspirators could obtain fraud proceeds to benefit themselves and further the fraudulent scheme.
Arias was charged along with Aylen Gonzalez, 39, of Hialeah, Florida; Ana Gabriela Mursuli Caballero, 51, of Miami; and Rafael Cabrera, 51, of Miami, in a July 2017 indictment. Gonzalez, a patient recruiter who owned a medical clinic and co-owned two home health agencies, pleaded guilty in November 2017 to one count of conspiracy to commit health care fraud and wire fraud and was sentenced to 180 months in prison. Mursuli Caballero, a patient recruiter and owner of two home health agencies, pleaded guilty in October 2017 to one count of conspiracy to commit health care fraud and wire fraud and was sentenced to 115 months in prison. Cabrera, who participated in laundering and concealing the proceeds from the fraud, pleaded guilty in November 2017 to one count of conspiracy to commit money laundering and was sentenced to 71 months in prison.
This case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys Angela Adams and Jessica Collins of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Overdose Investigation Results in 7-Year Sentence for Waterbury ManRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JEREMY WAVER, 31, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer to 84 months of imprisonment, followed by three years of supervised release, for distributing controlled substances.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 2, 2017, Ansonia Police and emergency medical personnel responded to a report of an overdose death at an Ansonia residence. At the residence, responders encountered a deceased 23-year-old female. Investigators collected evidence including a hypodermic needle and several wax folds of a substance that was later determined to contain furanyl fentanyl. Investigators also seized the victim’s iPhone.
The investigation revealed that, on April 1, the victim and another individual purchased heroin from WAVER in Waterbury.
WAVER was arrested in Waterbury on May 4. At the time of his arrest, WAVER possessed more than 100 wax folds of substances that contained heroin, U-47700 (a synthetic opioid), fentanyl, and furanyl fentanyl. In addition, WAVER possessed a quantity of crack cocaine. Many of the folds were stamped with the same image found on the folds recovered at the scene of the victim’s overdose death.
On December 4, 2017, WAVER pleaded guilty to one count of possession with intent to distribute, and distribution of, controlled substances.
WAVER’s criminal history includes numerous drug convictions.
As part of the sentence, Judge Meyer ordered WAVER to pay restitution of $4,503.96 to the victim’s father to cover the a portion of the victim’s funeral expenses.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Ansonia Police Department. The case was prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Ontario, NY Woman Sentenced for Committing Bank FraudRead 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 Cortney Vogt, 38, of Ontario, NY, who was convicted of two counts of bank fraud was sentenced to 60 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Vogt was employed by SalesSource International and ID SignSystems. From September 2013 to April 2017, Vogt abused her position of trust at those businesses and forged checks and embezzled money from them. In total, the defendant stole approximately $167,319.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.
Norteño Gang Member Sentenced to 17 Years and Six Months in Prison for RICO Conspiracy and Use of FirearmsRead the Press Release
SAN JOSE – Julian Ruiz was sentenced today to 210 months in prison for his role in a racketeering conspiracy and for using or possessing firearms in furtherance of a crime of violence, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down earlier today by the Honorable Lucy H. Koh, U.S. District Judge.
“Mr. Ruiz and the East Las Casitas gang have committed horrible acts of violence against the public,” said Acting U.S. Attorney Tse. “This prosecution and today’s appropriate sentence will hopefully provide solace to the victims, their families, and the Salinas community.”
“This sentencing is a testament to our dedication to get members of violent gangs and criminal organizations off the street and out of our communities," said Special Agent in Charge Bennett of the FBI's San Francisco Division. “Those who facilitate violent acts by racketeering and other means cannot and will not be tolerated.”
On December 6, 2017, Ruiz, 29, of Salinas, pleaded guilty to two counts of racketeering conspiracy; using or possessing a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A); and aiding and abetting the use or possession of a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A) and 2. According to the plea agreement, Ruiz admitted to being a member of the Norteño street gang clique known as “East Las Casitas” or “ELC” since at least 2006. Along with other Norteño cliques in Salinas, the ELC committed acts of violence for the benefit of the gang including murder, attempted murder, and robbery. Among other acts of violence, members of ELC sought to attack and kill members of rival Sureño gangs, as well as members of other rival gangs.
The racketeering-related attempted murders to which Ruiz pleaded guilty took place over a one-month period in 2009. On September 15, 2009, Ruiz was in a car hunting for Sureños to shoot, and spotted a suspected Sureño on a bicycle in front of an apartment complex. Ruiz used a handgun to fire multiple shots at the suspected Sureño as he fled on foot. A few weeks later, on October 3, 2009, Ruiz participated in the attempted murder of a rival gang member from the Fremont gang. After learning that an ELC hang out was shot into, and suspecting the shooting was done by Fremont gang members, Ruiz agreed to shoot at and attempted to kill additional Fremont gang members. Ruiz went to the home of a Fremont gang member, kicked the front door open, and opened fire at two Fremont gang members inside. Ruiz shot one victim in the stomach and shoulder and the other victim in the left arm.
On October 28, 2015, a grand jury charged Ruiz with one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); one count of conspiracy to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6); and one count of use of firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A) and 2. Pursuant to his plea agreement, Ruiz pleaded guilty to one of the racketeering charges and the firearms charge. The investigation leading to the indictment was part of the FBI’s crackdown on Norteño gangs in Monterey County.
In addition to the prison term, Judge Koh also sentenced Ruiz to a five-year period of supervised release, to commence after Ruiz completes his prison sentence. Ruiz has been in federal custody since December 1, 2015, and will begin serving his sentence immediately.
Assistant U.S. Attorneys Kimberly Hopkins, Christiaan Highsmith, and Stephen Meyer are prosecuting the case with the assistance of Nina Burney Williams, Adria Trgovich, and Lance Libatique. The prosecution is the result of an investigation by the FBI and Salinas Police Department.
New Orleans Man Sentenced in Methamphetamine-Trafficking ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that CLARK McALPIN, age 37, of New Orleans, was sentenced today after previously pleading guilty to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically McALPIN pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine, in violation of 21 U.S.C. '' 841(a)(1), 841(b)(1)(A) and 846.
U.S. District Judge Ivan L.R. Lemelle sentenced McALPIN to 10 years’ incarceration, followed by 5 years of supervised release.
According to court documents, in 2016, codefendant Steven Lyons was a New Orleans-based drug trafficker who was receiving parcels of methamphetamine via common mail carriers. McALPIN would assist Lyons in distributing the quantities of methamphetamine in the New Orleans area.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Amtrak Police, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
New Orleans Man Sentenced for Illegal Possession of a Firearm and False Statements to Federal AgentsRead the Press Release
U.S. Attorney Duane A. Evans announced that DARRION YOUNG, age 32, from New Orleans, was sentenced to serve forty months imprisonment for being a felon in possession of a firearm and for making false statements to federal agents. DARRION YOUNG pleaded guilty in June 2017.
According to documents filed in court, DARRION YOUNG, who had previously been convicted of a felony in the United States District Court for the Eastern District of Louisiana, possessed a firearm on November 24, 2015. Moreover, after he was arrested, on two occasions, DARRION YOUNG made false statements to agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, during which he falsely accused a person of taking part in a shooting at the Bunny Friend Park on November 22, 2015. In fact, the person that DARRION YOUNG falsely accused was not in Louisiana on the date of the Bunny Friend Park shooting. However, that person was incarcerated for approximately two weeks until he was released.
In addition to the term of imprisonment, United States District Judge Susie Morgan sentenced DARRION YOUNG to a term of three years of supervised release.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
New Castle Man Pleads Guilty in Lawrence and Mercer County Robbery SpreeRead the Press Release
PITTSBURGH – A former resident of New Castle, Pennsylvania, pleaded guilty in federal court to robbery charges, United States Attorney Scott W. Brady announced today.
Eric Barbati, age 32, pleaded guilty to four counts of Hobbs Act robbery and two counts of bank robbery before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that Eric Barbati robbed four convenience stores and two banks over a three-week period across Lawrence County, PA. Barbati committed the following convenience store robberies:
- August 26, 2017 – BFS Foods Convenience Store, New Castle, PA
- August 31, 2017 – Red Apple Convenience Store, New Castle, PA
- September 4, 2017 – Market 24 Convenience Store, New Castle, PA
- September 17, 2017 – Market 24 Convenience Store, New Castle, PA
In each robbery, Barbati approached the teller at the store while holding a Mountain Dew bottle. When the teller went to give Barbati change for his purchase, Barbati would forcefully take money from the drawer or the entire cash drawer and flee from the store.
Barbati also robbed the PNC Bank in Hermitage, PA on September 5, 2017 and the Huntington Bank in New Wilmington, PA on September 11, 2017. At the PNC Bank robbery, Barbati approached the teller and stated, "This is a robbery, place all your money on the counter," and then received approximately $2,702 in U.S. currency before fleeing the bank. At the Huntington Bank robbery, Barbati passed a note to the teller stating, "This is a robbery, put all your money on the counter," then received approximately $1,641 in U.S. currency before fleeing the bank.
Judge Cercone scheduled sentencing for July 23, 2018. The law provides for a maximum sentence of up to 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior record, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Hermitage Police Department, the New Wilmington Borough Police Department, the New Castle Police Department, and the Neshannock Township Police Department conducted the investigation leading to the guilty plea in this case.
Misdemeanor Immigration Prosecutions – January and February 2018Read the Press Release
ALBANY, NEW YORK – The following is a summary of misdemeanor immigration prosecutions from January and February 2018. All defendants were or will be placed into removal proceedings, by the Department of Homeland Security, following the completion of their sentences.
Citizen of Haiti Sentenced For Illegal Entry
Keetzall Baptiste, age 38, of Haiti, was sentenced on January 2 to 23 days in jail, following his plea to illegally entering the United States from Canada.
Baptiste admitted that he crossed the border approximately one-half mile east of the Champlain Port of Entry on December 18, 2017. He was found and arrested by Border Patrol Agents as he was walking south away from the border.
Two Citizens of Uzbekistan Sentenced For Illegal Entry
Bahodir Rustamov, age 38, of Uzbekistan, was sentenced on January 11 to 19 days in jail and Davlat Ahmedov, age 29, of Uzbekistan, was sentenced to 27 days in jail on January 18, following their respective guilty pleas to illegally entering the United States.
Rustamov and Ahmedov each admitted that together they walked across the border about four miles west of the Mooers Port of Entry a few minutes after midnight on the morning of December 30, 2017. They were arrested together as they hid in the woods approximately one hour after they crossed the border.
Citizen of Mali Sentenced For Illegal Entry
Hacim Oumar Idar Rachid, age 28, of Mali, was sentenced on January 16 to 30 days in jail, following his guilty plea to illegally entering the United States.
Rachid admitted that he walked across the border without inspection two miles west of the Champlain Port of Entry on December 29, 2017. He was arrested by Border Patrol Agents as he was being driven away from the border.
Citizen of Romania Sentenced For Illegal Entry
Dan-Stefan Cirpaci, age 29, of Romania, was sentenced on January 25 to 30 days in jail, following his guilty plea to illegally entering the United States from Canada.
Cirpaci admitted that he crossed the border approximately one mile west of the Churubusco Port of Entry on January 2. He was found and arrested by Border Patrol Agents as he was trying to leave the border area. Cirpaci was a passenger in a car that was stopped by Border Patrol near the border.
Citizen of Haiti Sentenced For Illegal Entry
Idoinien Saint Fleur, age 44, of Haiti, was sentenced on January 25 to time served (51 days in jail) and to pay a $500 fine, following his guilty plea to illegally entering the United States from Canada.
Saint Fleur admitted that he crossed the border approximately one-quarter mile east of the Champlain Port of Entry on December 5, 2017. He was found and arrested by Border Patrol Agents as he was trying to leave the border area.
Citizen of Canada Sentenced For Illegal Entry
Sebastien Cote-Champagne, age 31, of Canada, was sentenced on February 6 to 42 days in jail, following his guilty plea to illegally entering the United States from Canada.
Cote-Champagne admitted that he crossed the border approximately 1.5 miles west of the Champlain Port of Entry on January 23. He was found and arrested by Border Patrol Agents as he was walking south away from the border.
Citizen of Romania Sentenced For Illegal Entry
Ciuciu Ximena, age 42, of Romania, was sentenced on February 6 to 20 days in jail and to pay a $2,500 fine, following her guilty plea to illegally entering the United States from Canada.
Ximena admitted that she crossed the border approximately one-half mile west of the Rouses Point Port of Entry on January 25. She was found and arrested by Border Patrol Agents as she walked south toward a waiting car.
Two Citizens of Guatemala Sentenced For Illegal Entry
Amilcar Tuch-Xinico, age 26, of Guatemala, was sentenced to 15 days in jail and Jose Morales-Zet, age 21, of Guatemala, was sentenced to 22 days in jail on February 13, following their respective guilty pleas to illegally entering the United States.
Tuch-Xinico and Morales-Zet each admitted that together they walked across the border about two miles west of the Champlain Port of Entry on February 1. They were arrested together as they walked south away from the border.
Three Citizens of Guatemala Sentenced For Illegal Entry
Gelber Cacacil-Perez, age 22, Eddy Chonoy-Chonoy, age 28, and Elvidio Mendoza-Tino, age 28, all of Guatemala, were each sentenced on February 15 to 20 days in jail, following their respective guilty pleas to illegally entering the United States.
Cacacil-Perez, Chonoy-Chonoy, and Mendoza-Tino each admitted that together they walked across the border without inspection two miles west of the Champlain Port of Entry on February 1. Chonoy-Chonoy and Mendoza-Tino were arrested by Border Patrol Agents as they were walking south away from the border. Cacacil-Perez was arrested the next day in Plattsburgh, New York, approximately 25 miles south of the border.
Citizens of Haiti Sentenced For Illegal Entry
Louiguenson Charles, age 30, of Haiti, was sentenced on February 20 to time served (13 days in jail) following his guilty plea to illegally entering the United States. Charles admitted that on February 8, he entered the United States by walking through the woods from Canada.
Jean Sanon, age 31, of Haiti, was sentenced on February 20 to time served (13 days in jail) following his guilty plea to illegally entering the United States. Sanon admitted that on February 8, he entered the United States by walking through the woods from Canada.
Citizen of Jamaica Sentenced For Illegal Entry
Dwayne Berry, age 33, of Toronto, Canada, was sentenced on February 22 to 60 days in jail, following his guilty plea to illegally entering the United States from Canada.
Berry, a citizen of Jamaica, admitted that he crossed the border approximately three miles west of the Trout River Port of Entry on February 2. He was found by Border Patrol Agents performing inspection duties on a bus in Massena, New York. Berry was inadmissible to the United States due to his Canadian criminal history.
Two Citizens of India Sentenced For Illegal Entry
Surinder Singh, age 43, of India, and Anil Singh, age 27, of India, were each sentenced on February 23 to time served (4 days in jail), following their respective guilty plea to illegally entering the United States from Canada.
Surinder Singh admitted that he crossed the border approximately five miles east of the Massena Port of Entry on February 18. He was found and arrested by Border Patrol Agents as he was leaving the border area as a passenger in a taxi. Anil Singh admitted that he crossed the border approximately three miles east of the Massena Port of Entry on February 18. He was found and arrested by Border Patrol Agents as he was leaving the border area as a passenger in a car.
Minneapolis Man Sentenced to Nine Years in Prison for Tax Fraud ConspiracyRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of HASSAN OSMAN, 52, to 108 months in prison for conspiracy, tax fraud and failing to appear on the day of trial. OSMAN was found guilty on September 21, 2017, following a four-day trial, on one count of conspiracy, 13 counts of aiding and assisting in the preparation of a false tax return, and one count of unlawful flight from prosecution. OSMAN was sentenced earlier today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn.
“Mr. Osman and his co-conspirators viewed the IRS not as a tax collection agency, but a way to generate illicit revenue. They filed 100 fraudulent tax returns claiming nearly $1 million in fraudulent tax refunds,” said Assistant U.S. Attorney Joe Thompson. “Today’s sentence underscores the seriousness of Mr. Osman’s crimes and his complete lack of remorse for his actions.”
“As we are in the midst of tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced by the 108 month sentencing today of Hassan Osman,” said Hubbard Burgess, Acting Special Agent in Charge of the St. Paul Field Office. “Today's sentencing of Mr. Osman again emphasizes that IRS Criminal Investigation and the U.S. Attorney’s Office will continue their aggressive pursuit of those who would attempt to defraud America's tax system.”
As proven at trial, between January 2008 and April 2011, OSMAN and his co-conspirators devised and carried out a tax fraud scheme by filing false federal income tax returns claiming fraudulent refunds. OSMAN and his co-conspirators prepared fraudulent tax returns using fake W-2s created in the name of several front companies. Most of the returns were filed electronically, either from coffee shops or from a business in south Minneapolis owned by OSMAN. The resulting refunds were split among OSMAN and his co-conspirators. Often times, the fraudulent refunds were deposited onto prepaid debit cards and sent to addresses controlled by OSMAN or his co-conspirators. During the course of the conspiracy, OSMAN and his co-conspirators filed more than 90 income tax returns claiming approximately $1,012,877 in fraudulent tax refunds.
As proven at trial, OSMAN was arrested on April 17, 2015 and was later released on bond pending trial. On July 28, 2015, when OSMAN failed to appear for a court ordered pretrial conference, a warrant was issued for his arrest. On April 14, 2016, OSMAN was arrested in Toronto, Canada and later extradited back to the United States to face trial.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
This case was prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and Michelle E. Jones.
Defendant Information:
HASSAN OSMAN, 52
Minneapolis, Minn.
Convicted:
- Conspiracy, 1 count
- Aiding and assisting in the preparation of a false tax return, 13 counts
- Failure to appear, 1 count
Sentenced:
- 108 months in prison
- Three years of supervised release
- $394,120.14 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Married Couple, Son, and Accomplice Convicted of Defrauding Medicare, Medicaid and TriCareRead the Press Release
Jackson, TN – Following a three-week trial, a federal jury has convicted a married couple and their son, of health-care fraud offenses that led to millions of dollars lost to federal health care programs. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the convictions today.
Sandra Bailey, 67 of Jackson, Tenn., was convicted of 16 counts, including conspiracy, health care fraud, and paying illegal kickbacks in connection with health care services. Her husband, Calvin Bailey, 67, was convicted of conspiracy. Their son, Bryan Bailey, 39, of Milan, Tenn., was convicted of conspiracy and wire fraud. The jury returned guilty verdicts on all 17 counts alleged in the indictment.
U.S. Attorney D. Michael Dunavant said: "Dishonest criminals are using more creative and disturbing fraudulent schemes to victimize vulnerable citizens and the American taxpayers for their own selfish gain. This case represents our commitment to expose these fraudulent schemes, protect the integrity of the Medicaid system, hold offenders accountable for their dishonest criminal conduct, and to recover ill-gotten proceeds on behalf of the government. The U.S. Attorney’s Office is willing and able to go to any lengths in our pursuit of justice in healthcare fraud cases."
Evidence at trial revealed Sandra Bailey and Calvin Bailey sold durable medical equipment including power wheelchairs and back braces. From November 2009 to September 2011, they were both employed at Jaspan Medical Systems ("Jaspan"), a durable medical equipment company with an office in Jackson, Tenn. Durable medical equipment is designed for repeated use and legitimate medical purposes. Following their employment at Jaspan, the couple was employed by other medical supply companies in West Tennessee, Kentucky and Mississippi. Calvin Bailey is also the former principal at Medina Elementary School in Medina, Tenn. Bryan Bailey was the operations and sales manager at Jaspan from October 2009 to July 2013.
While employed at Jaspan, the Baileys began to market wheelchairs to patients and represented them as paid fully by Medicare, and at no cost to the patients. To market the equipment, the Baileys used an extensive network of illegally paid recruiters to find eligible patients. After finding the patients, Sandra and Bryan Bailey would forge and falsify documents to make it appear that the patients qualified for the equipment. They also enlisted a local physician and nurse practitioner to order the equipment without the required physical examinations to determine if the equipment was medically necessary. To facilitate this scheme, Sandra Bailey paid illegal kickbacks to the medical providers.
Numerous patients testified that Sandra Bailey offered the equipment at no cost, and that they never saw the doctor or nurse practitioner before the Baileys delivered the back braces and power wheelchairs. Many also testified that they never used the power wheelchairs, and that the power wheelchairs were too large to be used in their homes. Even though most of the patients could walk, drive vehicles, and care for themselves without the need for a power wheelchair, the Baileys would falsify medical records to make it appear that the patients were qualified. In order to qualify the patients to receive the equipment at no cost, Bryan Bailey falsified and directed others to falsify patients’ income and expenses to make it appear that they were indigent.
In 2010, Bryan Bailey expanded Jaspan’s sales into North Mississippi, and hired a sales representative named Dennis Sensing to sell power wheelchairs. Sensing paid illegal kickbacks to patient recruiters to find Medicare and Medicaid patients. Bryan Bailey received sales commissions for the power wheelchairs sold by Sensing. In order to bill Medicare and Medicaid for the equipment, Sensing forged the signature of a nurse practitioner with Bryan Bailey’s knowledge. Bryan Bailey directed Sensing to falsify patients’ income and expenses to make it appear that they were indigent. Sensing sent via facsimile the forged and falsified documents to Bryan Bailey, who caused the claims to be submitted for payment. Sensing, who previously pleaded guilty to conspiracy to commit healthcare fraud and pay illegal kickbacks, testified in the government’s case.
"This type of criminal activity speaks to the core of why the Tennessee Bureau of Investigation began its Medicaid Fraud Control Unit," said Director Mark Gwyn. "The Tennessee Bureau of Investigation will continue to pursue those who are defrauding the Medicaid system and taking advantage of vulnerable Tennesseans in need of these services."
"We always appreciate the opportunity to work with multi-state law enforcement agencies to combat healthcare fraud and protect our citizens’ resources and tax dollars," said Jim Hood, Attorney General of Mississippi.
"This verdict sends a strong message; members of the Bailey family each face up to 20 years in prison for crimes costing taxpayers millions of dollars," said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. "We will continue to work with our law enforcement partners to investigate individuals who profit from preying on unsuspecting beneficiaries."
The Baileys caused more than$4 million in billing of power wheelchairs and back braces to be paid by taxpayers. During the time the Baileys worked at Jaspan and the other companies, they received more than $1.2 million in salary and sales commissions.
Sandra Bailey and Bryan Bailey each face up to 20 years in prison and a fine of up to $250,000. Calvin Bailey faces up to five years in prison, and a fine of up to $250,000. There is no parole in the federal system.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General, the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, and the Attorney General’s Office of Mississippi.
Assistant U.S. Attorneys Stuart Canale and Matt Wilson prosecuted this case on the government’s behalf.
Man Sentenced to over Seven Years in Federal Prison for Attempting to Manufacture MethamphetamineRead the Press Release
A man who was manufacturing methamphetamine on his relative’s property was sentenced today to more than seven years in federal prison.
Jason Tooley, age 35, most recently from Lowden, Iowa, and originally from Kentucky, received the prison term after a September 28, 2017, guilty plea to one count of attempt to manufacture methamphetamine.
Information presented at the sentencing hearing showed that in October 2016, Tooley had absconded from state probation. Tooley’s cousin permitted him to live in a shed on her property in Lowden, Iowa. The shed was next to the cousin’s house where her two young children also lived. On October 25, 2016, a deputy sheriff with the Cedar County Sheriff’s Office was investigating a stolen license plate. The deputy saw the license plate on Tooley’s car, which was parked by the shed. When Tooley saw the deputy, he locked the shed and fled into the nearby woods. Deputies returned later and arrested Tooley. On October 26, 2017, deputies executed a search warrant for Tooley’s car and shed and recovered methamphetamine, chemical by-products from the “one-pot” methamphetamine manufacturing process, and various other materials for manufacturing methamphetamine. Tooley had been purchasing pseudoephedrine for manufacturing methamphetamine for several years, continuing up until the time of his arrest.
Tooley was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. He was sentenced to 85 months’ imprisonment. Tooley must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Tooley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by Cedar County Sheriff’s Office, the Muscatine County Drug Task Force, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-62.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to Two Years in Prison for Conspiracy to Commit Tax Return Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A man was sentenced today to a total of 25 months in prison for his role in a $290,000 income tax return fraud conspiracy and for violation of his supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Walter Fabian Guzman, 39, of Pahrump, Nevada, previously pleaded guilty to one-count of conspiracy to defraud and one-count of violation under supervision. United States District Judge Kent J. Dawson also ordered him to pay restitution in the amount of $290,364 to the victims.
According to the plea agreement, Guzman admitted that, from January 1, 2010 to August 9, 2010, he conspired with co-defendants Felix Guzman and Judas Godina to defraud the IRS by submitting false income tax returns for customers. Guzman recruited customers by telling them that he could generate large returns on their individual income tax returns. In furtherance of the scheme, Guzman and others submitted false W-2 forms which reported additional income and withholdings, and Schedule E forms which falsely reported business losses.
The case was investigated by the IRS-Criminal Investigations. Assistant U.S. Attorney Kathryn Newman prosecuted the case.
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Man Sentenced to Life in Prison for Violent CrimesRead the Press Release
SAN JUAN, P.R. – Today, U.S. District Court Judge Pedro A. Delgado sentenced Luis Javier Correa-Figueroa, a.k.a. “Barney/Gordo” to life imprisonment for firearm offenses, a controlled substance offense, assaulting federal officers, and willfully injuring property of the United States, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The DEA, FBI, and Puerto Rico Police Department Strike Force Unit were in charge of the investigation of this case.
On April 4, 2017, Correa-Figueroa was found guilty by a jury of 16 counts, including: being a convicted felon in possession of a firearm; illegal possession of a machinegun; possession of a firearm in furtherance of a drug trafficking crime; possession of a machinegun in furtherance of a drug trafficking crime; three counts of willfully injuring property of the United States; eight counts of assault upon a federal officer; and one count of attempt to possess cocaine with intent to distribute.
During trial, the government proved that on July 7, 2015, Correa-Figueroa intended to exchange two firearms in his possession for cocaine. The exchange was to occur at the Plaza Guaynabo Shopping Center in the area of the parking lot. After receiving confirmation the defendant was in possession of the two firearms (one of which was modified to fire in a fully automatic mode), DEA agents intervened with the defendant to execute the arrest. Correa-Figueroa drove away, in an attempt to flee from law enforcement. He was ultimately apprehended at the scene. Correa-Figueroa’s actions resulted in the damage to three parked civilian vehicles and three official government vehicles.
The case was prosecuted by Assistant United States Attorneys Vanessa Bonhomme and Maria Montañez.
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Man Sentenced to Federal Prison for Meth-Distribution ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced February 27, 2018, to 10 years in federal prison.
Delbert Raymond Lane, age 40, of Nora Springs, Iowa, received his prison term after a November 13, 2017, guilty plea to conspiracy to distribute methamphetamine.
Lane admitted his involvement in a conspiracy to distribute methamphetamine in North Central Iowa between 2014 and April of 2017. During this time frame, Lane was receiving ounces of high purity methamphetamine and breaking them into smaller quantities for resale. In August 2016, Lane sold an eighth of an ounce of methamphetamine to a confidential informant in Mason City. On November 23, 2016, defendant was in possession, with intent to deliver, approximately 43 grams of 96% pure methamphetamine. Lane sold methamphetamine in various quantities, up to ounces.
Lane sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Lane was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Lane 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 Jack Lammers and investigated by the North Central Iowa Narcotics Task Force and the Cerro Gordo County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3048. Follow us on Twitter @USAO_NDIA.
Man Pleads Guilty to Lying to FBI about Fraudulent BP Oil Spill ClaimRead the Press Release
U.S. Attorney Duane A. Evans announced that JETTY HUI, age 44, a resident of New Orleans, pleaded guilty to one count of lying to the FBI, in violation of 18 U.S.C. § 1001(a)(2). The guilty plea was taken before United States District Judge Nannette Jolivette Brown.
According to the bill of information, JETTY HUI was a business owner of Cabinets and Countertops Direct. After the April 20, 2010, Deepwater Horizon explosion, HUI submitted documentation of losses to his business to the Deepwater Horizon Oil Spill Trust. Those losses were fraudulent and were only submitted to facilitate a refund. On December 2, 2010, HUI received approximately $72,500 in funds. In May, 2012, HUI knowingly and willfully made false, fictitious, and fraudulent material statements and representations regarding the veracity of his claim for those funds, indicating to the FBI that the losses were real, when in fact they were not.
HUI faces a maximum term of imprisonment of five (5) years, a fine of up to $250,000.00, three (3) years supervised release after imprisonment, and a mandatory $100 special assessment.
A sentencing hearing is set for June 14, 2018 at 10:00 a.m. before the United Stated District Court Judge Nannette Jolivette Brown. U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr., is in charge of the prosecution.
Man Pleads Guilty in Selma Police Evidence Room Gun Theft CaseRead the Press Release
United States Attorney Richard Moore of the Southern District of Alabama announced that Richard Allen Canterbury, of Valley Grande, entered a guilty plea in federal court to three charges involving weapons stolen from the evidence room at the Selma Police Department. Court documents reflect that Canterbury was implicated in an investigation initiated by the Selma Police Department when officers received information that some items from the evidence room were found at a middle school. Responding officers interviewed Canterbury’s wife, who was employed at the police department as an evidence technician. Because she had access to the evidence room, police concluded that she had taken some property from the evidence room without permission. Subsequently, police received information that Canterbury was selling numerous firearms at a job site near Selma. Police were concerned that the firearms may have come from the evidence room, so they contacted Canterbury. Canterbury was interviewed and admitted his participation in selling numerous firearms provided to him by his wife. He also admitted using social media to advertise firearms for sale. He took some money from the firearm sales back to his wife. Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Alabama Attorney General’ Office were called in to assist in the investigation. Agents recovered approximately 239 guns stolen from a storage unit inside the police evidence. Many firearms have been recovered so far in the investigation. Agents also determined that Canterbury had been convicted of a felony, discharging a firearm into an occupied dwelling, in 1996.
United States District Court Judge Kristi K. Dubose accepted Canterbury’s guilty plea to the charges of possession of firearms by a convicted felon, possession of firearms with an obliterated serial number and selling firearms without a federal license. He faces a penalty of up to 10 years on the first charge, and up to 5 years on each of the next two; a fine of up to $250,000; a three-year term of supervised release following any sentence of imprisonment; and a special mandatory assessment of $300. Canterbury’s sentencing is set for July 27, 2018. He remains under conditions of release pending the imposition of sentence.
The federal case was investigated by the Alabama Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigations. Assistant United States Attorney Gloria Bedwell prosecuted the case for the United States Attorney’s Office.
Local Man Gets 25 Years for Child Pornography ConvictionsRead the Press Release
GALVESTON – A 37-year-old Galveston sex offender has been ordered to federal prison following his conviction for distribution and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Adam Vargas pleaded guilty April 21, 2017.
Today, Judge George C. Hanks ordered Vargas to serve 300 months in prison for the distribution charge and 240 months in prison for the possession charge to run concurrently. Vargas was further ordered supervised release for life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. In imposing the sentence, the court noted his prior conviction of two counts of aggravated sexual assault against a minor.
Vargas came to the attention of law enforcement after investigators found evidence he was uploading child pornography to his DropBox account. A search warrant was executed on Vargas’ residence on Sep. 24, 2015, at which time investigators found the cellphone he used to upload and store the child pornography. During a forensic examination on that phone, agents found more than 2,000 images and 1,100 videos of child pornography. This was in addition to the numerous images and videos of child pornography found in his DropBox account.
The FBI and the Galveston Police Department conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lincoln County Man Convicted by Jury of Drug Trafficking and Firearm OffensesRead the Press Release
LEXINGTON, Ky. — A federal jury in Lexington has found William J. Hampton, of Lincoln County, Kentucky, guilty of possession with intent to distribute 50 grams or more of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. The jury convicted Hampton on Tuesday, February 27, 2018, following a 2-day trial in U.S. District Court.
According to trial testimony, officers stopped Hampton after observing him driving a vehicle with no taillights and a flat tire. Hampton falsely identified himself during the stop and attempted to flee, leading officers on an approximately 3-mile pursuit down U.S. highway 27 in Lincoln County, Kentucky. After apprehending Hampton, officers located approximately 120 grams of methamphetamine and a .40 caliber Smith and Wesson pistol in the front passenger area of the vehicle. Hampton is a convicted felon and prohibited from possessing a firearm.
The sentencing hearing is currently scheduled for June 8, 2018, at the federal courthouse in Lexington. Hampton faces a minimum mandatory sentence of not less than 10 years nor more than life imprisonment on the drug offense. Because the jury also convicted Hampton of possessing a firearm in furtherance of the drug trafficking crime, Hampton also faces a minimum mandatory sentence of 5 years consecutive to any sentence imposed for the drug offense. The Court, however, will impose sentence after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowery, Special Agent in Charge, ATF; Chief Zachary Middleton, Stanford Police Department; and Sheriff Curt Folger, Lincoln County Sheriff’s Department, jointly announced the jury’s verdict.
ATF, Stanford Police Department, and Lincoln County Sheriff’s Department conducted the investigation. Assistant United States Attorneys Lauren Tanner Bradley and Ron Walker represented the United States in the case. The case is part of the Project Safe Neighborhoods (PSN) Program, a Department of Justice initiative to reduce violent crime through partnerships between federal, state, and local law enforcement. The goal of the PSN Program is to use these partnerships to make communities safer.
Justice Department Statement on Claims of NIJ Certification of Ballistic BackpacksRead the Press Release
Please attribute the following statement to Justice Department spokesman Devin O'Malley:
"The National Institute of Justice—the research, development, and evaluation agency of the Department of Justice—has never tested nor certified ballistic items, such as backpacks, blankets, or briefcases, other than body armor for law enforcement. Marketing that claims NIJ testing or certification for such products is false."
Background:
In recent days, multiple media outlets have repeated misleading statements made by companies about "NIJ certification" of their ballistic backpack products.
Additional Background:
The only ballistic-resistant product that NIJ certifies is law enforcement body armor that meet the requirements of NIJ’s Compliance Testing Program (CTP), which are then listed on NIJ’s Compliant Products List. Testing body armor involves a technically rigorous test campaign that must be carried out by one of four laboratories that are accredited by the National Voluntary Laboratory Accreditation Program and approved by NIJ to participate in the CTP. The protocols and procedures are described in the current NIJ performance standard NIJ Standard 0101.06, Ballistic Resistance of Body Armor. In addition, NIJ offers many informational resources on law enforcement body armor at policearmor.org.
Justice Department Statement on Claims of NIJ Certification of Ballistic BackpacksRead the Press Release
"The National Institute of Justice—the research, development, and evaluation agency of the Department of Justice—has never tested nor certified ballistic items, such as backpacks, blankets, or briefcases, other than body armor for law enforcement. Marketing that claims NIJ testing or certification for such products is false," said Justice Department spokesman Devin O’Malley.
In recent days, multiple media outlets have repeated misleading statements made by companies about "NIJ certification" of their ballistic backpack products.
The only ballistic-resistant product that NIJ certifies is law enforcement body armor that meet the requirements of NIJ’s Compliance Testing Program (CTP), which are then listed on NIJ’s Compliant Products List. Testing body armor involves a technically rigorous test campaign that must be carried out by one of four laboratories that are accredited by the National Voluntary Laboratory Accreditation Program and approved by NIJ to participate in the CTP. The protocols and procedures are described in the current NIJ performance standard NIJ Standard 0101.06, Ballistic Resistance of Body Armor. In addition, NIJ offers many informational resources on law enforcement body armor at policearmor.org.
Justice Department Statement on Claims of NIJ Certification of Ballistic BackpacksRead the Press Release
Please attribute the following statement to Justice Department spokesman Devin O'Malley:
"The National Institute of Justice—the research, development, and evaluation agency of the Department of Justice—has never tested nor certified ballistic items, such as backpacks, blankets, or briefcases, other than body armor for law enforcement. Marketing that claims NIJ testing or certification for such products is false."
Background:In recent days, multiple media outlets have repeated misleading statements made by companies about "NIJ certification" of their ballistic backpack products.
Additional Background:
The only ballistic-resistant product that NIJ certifies is law enforcement body armor that meet the requirements of NIJ’s Compliance Testing Program (CTP), which are then listed on NIJ’s Compliant Products List. Testing body armor involves a technically rigorous test campaign that must be carried out by one of four laboratories that are accredited by the National Voluntary Laboratory Accreditation Program and approved by NIJ to participate in the CTP. The protocols and procedures are described in the current NIJ performance standard NIJ Standard 0101.06, Ballistic Resistance of Body Armor. In addition, NIJ offers many informational resources on law enforcement body armor at policearmor.org.
Justice Department Launches Initiative to Fight Sexual Harassment in the WorkplaceRead the Press Release
The Justice Department’s Civil Rights Division today announced a second initiative to combat sexual harassment; the effort announced today—the Sexual Harassment in the Workplace Initiative (SHWI)—focuses on workplace sexual harassment in the public sector.
The Justice Department’s Civil Rights Division enforces Title VII of the Civil Rights Act of 1964 against state and local government employers. The law prohibits discrimination in employment on the basis of race, color, national origin, sex, and religion. Sexual harassment is among the conduct prohibited by the law because it is a form of sex discrimination.
The Justice Department will also announce its first enforcement action brought under the SHWI. The Justice Department will file a lawsuit against the City of Houston, alleging that the Houston Fire Department (HFD) discriminated against two female firefighters on the basis of sex in violation of Title VII when it allowed them to be subjected to sexual harassment in the workplace.
As part of the Initiative, the Justice Department will continue to bring sex discrimination claims against state and local government employers with a renewed emphasis on sexual harassment charges. The Department will also work to develop effective remedial measures that can be used to hold public sector employers accountable where Title VII violations have been found, including identifying changes to existing employer practices and policies that will result in safe work environments.
Through the Initiative, the Department will also conduct outreach to state and local government employers that centers around five critical areas: (1) creating trusted and safe avenues for employees to report sexual harassment; (2) ensuring management support for anti-discrimination policies and practices; (3) implementing accountability measures to ensure the timely and effective resolution of sexual harassment complaints; (4) adopting comprehensive anti-sexual harassment policies and procedures that include regular, tailored, and interactive training for employees; and (5) providing safeguards against retaliation for persons who report sexual harassment and for employees who support them.
“All Americans are entitled to work with dignity in a place that is free of sexual harassment,” said Acting Assistant Attorney General John Gore for the Civil Rights Division, in announcing the Initiative. “Through enforcement actions, effective remedial measures, and outreach, the Justice Department—under Attorney General Jeff Sessions’ leadership—will fight to eliminate sexual harassment among public sector employers.”
The creation of this Initiative reflects the Department of Justice’s commitment to the aggressive enforcement of the nation’s anti-discrimination laws and an expansion of the Civil Rights Division’s efforts to eradicate sexual harassment under the leadership of Attorney General Jeff Sessions.
In October 2017, the Justice Department announced the Civil Rights Division’s first initiative to combat sexual harassment, the Sexual Harassment in Housing Initiative. In 2017, the Justice Department recovered more than $1 million in damages for victims of harassment in housing. Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
Additional information about the Civil Rights Division, its enforcement of Title VII and other civil rights laws it enforces is available on its Web sites at http://www.justice.gov/crt/ and http://www.justice.gov/crt/emp.
Justice Department Files Lawsuit Against City of Houston for Sex Discrimination and RetaliationRead the Press Release
The Justice Department has filed a lawsuit against the City of Houston, alleging that the Houston Fire Department (HFD) discriminated against two female firefighters on the basis of sex in violation of Title VII of the Civil Rights Act of 1964, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Ryan K. Patrick. Title VII is a federal statute that prohibits employment discrimination on the basis of sex, race, color, national origin and religion.
The lawsuit, filed in the Southern District of Texas, alleges that Jane Draycott and Paula Keyes were subjected to a hostile work environment based on sex when they were employed as firefighters at HFD’s Station 54. According to the complaint, HFD’s hostile work environment included males urinating on the walls, floors and sinks of the women’s bathroom and dormitory, disconnecting the cold water to scald the women while they were showering, and deactivating the female dormitory’s announcement speakers so the women could not respond to emergency calls. The complaint further alleges that the conduct culminated in death threats and vulgar slurs written on the walls of their work and living spaces at Station 54 and on their personal possessions. This conduct continued despite at least nine complaints made to management, according to the allegations.
The lawsuit further alleges that HFD retaliated against Draycott in response to her complaints by permitting her co-workers to publicly disparage her in an attempt to prevent her from returning to work at Station 54 and that she was forced into early retirement because of her intolerable working conditions.
Other female firefighters who had previously worked at Station 54 allegedly made similar complaints to HFD about sex-based discrimination prior to Draycott and Keyes working there. According to the complaint, HFD did not take meaningful steps to stop the discrimination.
Through this lawsuit, the United States seeks to require HFD to develop and implement policies that would prevent sex discrimination and retaliation. The United States also seeks monetary relief for Draycott and Keyes to compensate them for the damages they sustained as a result of the alleged discrimination.
“Far too often, women are targeted and harassed in the workplace because of their sex,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Employees have the right to work in an environment that is free from sex discrimination and retaliation. The Civil Rights Division—under the newly created Sexual Harassment in the Workplace Initiative—will continue to work vigorously to protect employees from these workplace abuses.”
“No employee should be subjected to a hostile work environment based on their sex,” said U.S. Attorney Ryan K. Patrick. “We will aggressively protect employees who are victims of sex discrimination and retaliation and pursue employers who violate the law.”
Draycott and Keyes each filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Houston Office investigated the charges and made reasonable cause findings. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The Civil Rights Division’s Employment Litigation Section brought the case in collaboration with the U.S. Attorneys’ Office for the Southern District of Texas.
This lawsuit is the first of a new initiative announced by the Department of Justice today, the Sexual Harassment in the Workplace Initiative, which is aimed at combatting sexual harassment and sex-based harassment in the public sector workplace. It is the second initiative created under the leadership of Attorney General Jeff Sessions to combat sexual harassment; the first initiative, the Sexual Harassment in Housing Initiative, was announced in October 2017 to fight sexual harassment in housing.
More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Justice Department Files Lawsuit Against City of Houston for Sex Discrimination and RetaliationRead the Press Release
HOUSTON – The Justice Department has filed a lawsuit against the City of Houston alleging the Houston Fire Department (HFD) discriminated against two female firefighters on the basis of sex in violation of Title VII of the Civil Rights Act of 1964, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General John Gore of the Civil Rights Division. Title VII is a federal statute that prohibits employment discrimination on the basis of sex, race, color, national origin and religion.
The lawsuit, filed in the Southern District of Texas, alleges that Jane Draycott and Paula Keyes were subjected to a hostile work environment based on sex when they were employed as firefighters at HFD’s Station 54. According to the complaint, HFD’s hostile work environment included males urinating on the walls, floors and sinks of the women’s bathroom and dormitory, disconnecting the cold water to scald the women while they were showering and deactivating the female dormitory’s announcement speakers so the women could not respond to emergency calls. The complaint further alleges the conduct culminated in death threats and vulgar slurs written on the walls of their work and living spaces at Station 54 and on their personal possessions. This conduct continued despite at least nine complaints made to management, according to the allegations.
The lawsuit further alleges that HFD retaliated against Draycott in response to her complaints by permitting her co-workers to publicly disparage her in an attempt to prevent her from returning to work at Station 54 and that she was forced into early retirement because of her intolerable working conditions.
Other female firefighters who had previously worked at Station 54 allegedly made similar complaints to HFD about sex-based discrimination prior to Draycott and Keyes working there. According to the complaint, HFD did not take meaningful steps to stop the discrimination.
Through this lawsuit, the United States seeks to require HFD to develop and implement policies that would prevent sex discrimination and retaliation. The United States also seeks monetary relief for Draycott and Keyes to compensate them for the damages they sustained as a result of the alleged discrimination.
“No employee should be subjected to a hostile work environment based on their sex,” said Patrick. “We will aggressively protect employees who are victims of sex discrimination and retaliation and pursue employers who violate the law.”
“Far too often, women are targeted and harassed in the workplace because of their sex,” said Gore. “Employees have the right to work in an environment that is free from sex discrimination and retaliation. The Civil Rights Division—under the newly created Sexual Harassment in the Workplace Initiative—will continue to work vigorously to protect employees from these workplace abuses.”
Draycott and Keyes each filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Houston Office investigated the charges and made reasonable cause findings. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The Civil Rights Division’s Employment Litigation Section brought the case in collaboration with the U.S. Attorneys’ Office for the Southern District of Texas.
This lawsuit is the first of a new initiative that the Department of Justice announced today - the Sexual Harassment in the Workplace Initiative - which is aimed at combatting sexual harassment and sex-based harassment in the public sector workplace. It is the second initiative created under the leadership of Attorney General Jeff Sessions to combat sexual harassment. The first initiative - the Sexual Harassment in Housing Initiative - was announced in October 2017 to fight sexual harassment in housing.
More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Jury Convicts Woman of Defrauding Federal Program Intended to Improve Air QualityRead the Press Release
HOUSTON – A 45-year-old woman has been convicted of charges related to defrauding the Federal Highway Administration Congestion mitigation Air Quality and Surface Transportation Program (FHWA-CMAQ), announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Joseph Zschiesche of the Department of Transportation - Office of Inspector General (DOT-OIG). The jury deliberated for less than two hours following a two-day day trial before convicting Shonda Renee Stubblefield of all the counts in the indictment - theft of public money, mail fraud, wire fraud, money laundering and aggravated identity theft.
The jury found that Stubblefield, the owner of World Corporation Inc. (WCI)., stole $125,659.90 from the Department of Transportation (DOT) CMAQ program funded by the Federal Highway Administration (FHWA).
The CMAQ Program provides money to reduce traffic congestion and thereby reduce air pollution in certain areas. The jury heard that Stubblefield stole the money by falsely and fraudulently representing to Houston Galveston Area Counsel (HGAC) that she had hundreds of employees working at WCI who participated in a telework program designed to reduce air-pollution.
The United States proved through documents and 25 witnesses that Stubblefield created a fake business list, fake bank records, fake income and earnings statements and other false WCI business records including employee timesheets, invoices and match documents. The testimony included that of an individual whose identification information Stubblefield stole and used to create a fake $18,100 check that was submitted to the government to further the theft. The evidence and testimony revealed Stubblefield created at least 500 fake and fictitious WCI employee profiles that included fake names, addresses and email accounts.
The defense attempted to convince the jury that Stubblefield was not the person who engaged in the criminal activity, despite the fact that her name was on virtually all WCI business records, at least four witnesses identified her and the money trail lead directly to Stubblefield’s bank account.
“These cases illustrate how agency works tirelessly against individuals who defraud hardworking taxpayers and steal money intended to reduce traffic congestion and improve the air quality in Texas,” said Zschiesche.
U.S. District Judge Alfred Bennett presided over the trial and will sentencing at a later date. At the time of her sentencing, Stubblefield faces up to 10 years in prison for theft of public money, 20 years for mail fraud and wire fraud, 10 years for money laundering as well as a mandatory two years for the identity theft which must be served consecutively to any other prison term imposed. All counts also carry as possible punishment a $250,000 maximum fine. Previously released on bond, Stubbefield was taken into custody following the guilty verdict where she will remain pending that hearing.
The DOT-OIG conducted the investigation. Assistant U.S. Attorneys Julie Redlinger and Michael Day prosecuted the case.
Jefferson County Woman Sentenced for Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A 29-year-old Beaumont, Texas woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Heather Nichole Lugo pleaded guilty on Oct. 11, 2016, to conspiracy to distribute, manufacture, and possess with intent to distribute crack cocaine and was sentenced to 70 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on Nov. 11, 2015, law enforcement officers executed a search warrant at Lugo’s residence in Beaumont. During the execution of the warrant, officers discovered crack cocaine, firearms, marijuana and Hydrocodone. Lugo absconded while awaiting sentencing and remained a fugitive until her arrest on Dec. 1, 2017, resulting in an increased sentence.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Beaumont Police Department, and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Jackson Woman Pleads Guilty to Cocaine ConspiracyRead the Press Release
Jackson, Miss. – Luscious Latrice Neal a/k/a Luscious Neal Harris, 43, of Jackson, pled guilty yesterday before U.S. District Judge Henry T. Wingate to her role in a conspiracy to distribute cocaine, announced U.S. Attorney Mike Hurst and Thomas M. Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
On September 24, 2015, Neal received a quantity of cocaine for distribution from a co-conspirator and subsequently delivered the cocaine to another co-conspirator on September 25, 2015. The case is the result of an extensive investigation, dubbed "Operation Pipeline," which began as an operation targeting illegal narcotics distribution in central Mississippi that involved the distribution of cocaine and marijuana. The distribution network encompasses the States of California, Texas and Mississippi.
Neal will be sentenced by Judge Wingate on May 29, 2018, at 1:30 p.m. and faces a maximum penalty of 40 years in prison and a $5,000,000 fine.
The case was a joint investigation by U.S. Homeland Security Investigations and the Mississippi Bureau of Narcotics, with assistance from the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Highway Patrol, the Jackson Police Department, and the Hinds County Sheriff’s Department. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Iowa Man Sentenced to Federal Prison for Meth-Distribution ConspiracyRead the Press Release
An Iowa man has been sentenced to federal prison for his role in a methamphetamine distribution conspiracy.
Dwight Chris Jorgensen, age 49, of Grafton, Iowa, received his prison term after an August 28, 2017, guilty plea to conspiracy to distribute methamphetamine.
According to information disclosed at the sentencing and change of plea hearing, Jorgensen was receiving quarter pound, half pounds and pound amounts of methamphetamine and re-distributing it to others. In February 2017, during a search of Jorgensen’s residence, shop, and Jeep Cherokee, law enforcement seized a large amount of methamphetamine, a Taurus 9 mm handgun and $2,743.00. During his involved in the conspiracy Jorgensen distributed more than 1500 grams of actual (pure) methamphetamine.
Jorgensen was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Jorgensen was sentenced to 168 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Jorgensen 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 Jack Lammers and investigated by the Division of Narcotics Enforcement; Franklin County Sheriff’s Office; Worth County Sheriff’s Office; Iowa State Patrol; Mower County Minnesota Sheriff’s Office; Austin Minnesota Police Department and Division of Intelligence.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3027. Follow us on Twitter @USAO_NDIA.
Illegal Alien Sentenced on Drug and Firearm ChargesRead the Press Release
Gulfport, Miss. – Leonel Chavez Vargas, 29, an illegal alien from Mexico living in Neeville, Texas, was sentenced today by U.S. District Judge Sul Ozerden to 70 months in federal prison followed by four years of supervised release for possession with intent to distribute a controlled substance and unlawful possession of a firearm by an illegal alien, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Special Agent in Charge Stephen G. Azzam. Vargas was also ordered to pay a $5,000 fine.
On June 5, 2017, a Harrison County Sheriff’s Deputy stopped a vehicle driven by Vargas for a traffic violation. After the stop, Vargas consented to a search of his vehicle. The deputy noticed a panel inside the vehicle had been tampered with, and upon further inspection, he located 4,212 grams of cocaine. Vargas admitted to law enforcement that he was supposed to be paid $5,000 for transporting the cocaine.
On November 21, 2017, Vargas pled guilty to possessing with intent to distribute 500 grams or more of a detectable amount of cocaine hydrochloride in Harrison County, Mississippi, and being an illegal alien in possession of a firearm in the Southern District of Texas.
The firearm charge stemmed from the United States Attorney’s Office for the Southern District of Mississippi agreeing to prosecute that charge on behalf of the U.S. Attorney’s Office for the Southern District of Texas involving Vargas. Years ago, ATF agents in Houston, Texas, had begun an investigation into narcotics being sold from Vargas’ apartment. On August 30, 2011, agents went to the apartment and met with Vargas. He consented to a search of the apartment, and agents located drugs, firearms, and money throughout. Specifically, agents located a Taurus .40 caliber pistol under a mattress in Vargas’ bedroom. Vargas admitted that he was from Mexico and was unlawfully in the United States.
These cases was investigated by DEA, ATF, and Harrison County Sheriff’s Department, and prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.Huntington man pleads guilty for role in pain pill conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty today to a federal drug crime, announced United States Attorney Mike Stuart. Joseph W. Melbar, 54, entered his guilty plea to aiding and abetting the possession with intent to distribute oxycodone. U.S. Attorney Stuart commended the investigative efforts of the Drug Enforcement Administration and the West Virginia State Police.
“Getting pain pills off the streets of Huntington and holding drug criminals accountable is a top priority for me and my office,” said U.S. Attorney Stuart. “We are going to continue working with law enforcement to make sure that those who prey on the citizens of Huntington face serious hard time behind bars.”
Melbar admitted that on September 15, 2017, he arranged a drug deal for oxycodone pills with a confidential informant working with the DEA. The drug deal was scheduled to take place at Melbar’s residence on Collis Avenue in Huntington, where the informant met with Melbar, codefendant Curtis Holcomb, and another codefendant, to complete the transaction. After discussing the terms of the deal – 500 oxycodone pills in exchange for $20,000 cash, the codefendants left Melbar’s residence to acquire the pills. After Melbar’s codefendants picked up the pills, a trooper with the West Virginia State Police conducted a traffic stop on their vehicle on Artisan Avenue in Huntington. During the stop, the trooper seized 454 thirty mg oxycodone pills that Holcomb had concealed in his sock.
Melbar faces up to 20 years in federal prison when he is sentenced on May 29, 2018. Holcomb previously pled guilty to possession with intent to distribute oxycodone and faces up to 20 years in federal prison when he is sentenced on May 7, 2018.
Assistant United States Attorney Joseph F. Adams is responsible for the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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.
- Follow us on Twitter: SDWVNews and USAttyStuart
Hardin County Man Sentenced for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas — A 45-year-old Kountze, Texas man has been sentenced to 10 years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
John Edward Burns pleaded guilty on Aug. 16, 2017 to enticement of a minor to engage in sexual activity and was sentenced to 120 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on July 17, 2017, Burns began a conversation through social media and a mobile messaging application with a person he believed to be a 15-year-old female, but was actually an undercover investigator. During the course of the conversation, Burns attempted to persuade the child to send him nude photos of herself. Burns further made plans to meet the child and take her to a Tyler, Texas motel and engage in sexual intercourse. Burns was arrested on July 19, 2017 at a Beaumont park when he arrived to meet the person he believed to be a minor female.
This case was prosecuted 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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the HSI-ICE, the Beaumont Police Department and the Texas Attorney General and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Hamden Man Who Distributed Oxycodone Involved in Weston Overdose is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RYAN LOONEY, 21, of Hamden was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three years of probation, the first six months of which LOONEY must spend in home confinement, for distributing oxycodone involved in an overdose in 2016.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on January 3, 2016, a 22-year-old male purchased 30 oxycodone pills from Tahir Farid, of Hamden, in exchange for $900. On January 5, 2016, after consuming some of those pills, as well as other substances, the victim was found unresponsive at a friend’s residence in Weston. He remains in a coma with no brain activity and, according to medical personnel, is in a “persistent vegetative state.”
The investigation revealed that, prior to the victim’s overdose, Wayne Bradbury, of Hamden, supplied oxycodone pills and marijuana to LOONEY, who sold the oxycodone pills to Farid, who then distributed a portion of them to the 22-year-old victim.
On May 2, 2016, LOONEY pleaded guilty to one count of possession with intent to distribute, and distribution of, oxycodone. Farid pleaded guilty to the same charge on April 26, 2016. On July 18, 2017, Bradbury pleaded guilty to one count of distributing oxycodone and marijuana to an individual under 21 years of age, and one count of money laundering.
On November 30, 2016, Farid was sentenced to six months of imprisonment. On February 5, 2018, Bradbury was sentenced to 18 months of imprisonment.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, U.S. Marshals Service, Weston Police Department and Monroe Police Department. The case was prosecuted by Assistant U.S. Attorney Lauren Clark.
Gulfport Man Sentenced to 74 Months in Federal Prison for Prescription Drug ConspiracyRead the Press Release
Gulfport, Miss. – Marcus Deshawn Price, 28, of Gulfport, was sentenced today by U.S. District Sul Ozerden, Jr. to 74 months in federal prison followed by three years of supervised release for conspiracy to distribute a controlled substance, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Special Agent in Charge Stephen G. Azzam. Price was also ordered to pay a $3,000 fine.
On October 17, 2017, Price pled guilty to conspiring with others to distribute several controlled substances, including but not limited to oxycodone, hydrocodone, and amphetamine. From 2014 to August, 2017, several employees of Gulf Oaks Clinic took prescription pads from the clinic and forged numerous prescriptions for individuals from Hattiesburg to the Gulf Coast. Those individuals were not patients and the individuals who wrote the prescriptions were not valid prescribers.
Price picked up several fraudulent prescriptions associated with the conspiracy. He provided the pharmacies with his Mississippi driver’s license and signed the pharmacy signature logs. Price also had other individuals pick up prescriptions for him and he used other individuals’ personal information to obtain fraudulent prescriptions. After getting the pills, Price would split the pills with other individuals.
The DEA’s Diversion Group investigated the case. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Gulfport Man Sentenced to 103 Months in Federal Prison for Prescription Drug ConspiracyRead the Press Release
Gulfport, Miss. – Tyrone Leonard Thomas, Jr., 37, of Gulfport, was sentenced today by U.S. District Judge Sul Ozerden to 103 months in federal prison followed by three years of supervised release for conspiring to distribute a controlled substance, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Special Agent in Charge Stephen G. Azzam. Thomas was also ordered to pay a $5,000 fine.
On October 18, 2017, Thomas pled guilty to conspiring with others to distribute several controlled substances, including but not limited to oxycodone, hydrocodone, and amphetamine. Thomas was involved in a conspiracy ring that started in 2014 and ended in June, 2017. He and two other coworkers of Gulf Oaks Mental Health Center in Biloxi, Mississippi, conspired to take prescription pads from the facility and write fraudulent prescriptions for numerous individuals in the community. Thomas helped recruit people to come to the clinic and get fraudulent prescriptions in their name. He admitted that people paid for the fraudulent prescriptions. Thomas also had at least two fraudulent prescriptions written in his own name.
The Mississippi Bureau of Narcotics and the Drug Enforcement Administration investigated the case. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Gregg County Man Sentenced for Three East Texas Bank RobberiesRead the Press Release
TYLER, Texas – A 48-year-old Kilgore, Texas man has been sentenced to federal prison for bank robberies in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Hector Camargo pleaded guilty on Sep. 27, 2017 to bank robbery and use of a firearm during a violent crime and was sentenced to 240 months in federal prison by U.S. District Judge Ron Clark on Feb. 27, 2018.
According to information presented in court, Camargo robbed three Gregg County banks over a five-month span between November 2016 and April 2017. On Nov. 14, 2016, Camargo robbed the Citizens National Bank in Longview, Texas, using a threat note that referenced a weapon, and stealing $5,574 from a teller. On Dec. 16, 2016, Camargo robbed the Citizens National Bank in Kilgore, Texas, brandishing a handgun, and stealing $4,218 from a teller. On Apr. 21, 2017, Camargo robbed the First National Bank of Hughes Springs in Kilgore, Texas, brandishing a handgun, and stealing $7,802 from a teller. Camargo was arrested on Apr. 21, 2017, the same day as the third robbery, after a citizen spotted his truck driving through town. The citizen had heard a description of the truck on a ‘be on the lookout’ that was broadcast over the police band radio.
This case was investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety, the Longview Police Department, and the Kilgore Police Department and prosecuted by Assistant U.S. Attorney Ryan Locker.
Grand Rapids Man Pleads Guilty to Credit Card Fraud and Aggravated Identity TheftRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that Kahwahnas Nucumbhi Potts, age 38, of Grand Rapids, Michigan, pled guilty to charges of aggravated identity theft and credit card fraud in U.S. District Court in Grand Rapids today. Potts remains in federal custody.
According to the plea agreement, in December 2015, Potts stole a credit card after breaking into the home of a couple on the southeast side of Grand Rapids. Potts used the social security account number and date of birth of the homeowner when calling the credit card company to activate the card. Defendant used that credit card without authorization to withdraw over $16,000.00 at automated teller machines in December 2015 and January 2016. Defendant disguised himself with a mask, a stolen license plate on his vehicle, and gloves, when making the ATM withdrawals.
Potts stole mail from the mailboxes of West Michigan residents between March 2015 and April 2016. He used the names, dates of birth and social security account numbers of these victims when completing credit card applications over the internet. In an effort to avoid detection, he accessed the wireless internet service of an area business to apply for the credit cards using his cellular phone and directed the credit card companies to mail the credit cards to a fictitious address.
"Identity theft crime often causes serious and permanent damage to the credit history and financial lives of its victims," said U.S. Attorney Birge. "My office will continue to vigorously prosecute and convict those who commit identity theft, especially those who violate the privacy and integrity of the United States mail in order to carry out their identity theft schemes."
The sentencing hearing for Potts will occur in federal court in Grand Rapids, Michigan, at a date to be set by the court approximately 3 to 4 months from now. At that time, Potts will face a maximum penalty of up to 10 years’ imprisonment for his credit card fraud and a mandatory minimum penalty of 2 years’ imprisonment, consecutive to any other sentence that the court may impose, for each of his aggravated identity theft convictions. Potts will also be ordered to pay restitution to his victims.
The Grand Rapids Office of the U.S. Postal Inspection Service, in conjunction with the Grand Rapids Police Department Metropolitan Fraud and Identity Theft Team, is handling the investigation. Assistant U.S. Attorney Ronald M. Stella is prosecuting the case.
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Four Indicted in Heroin and Gun Trafficking ConspiracyRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged four Franklin County men in a 13-count indictment alleging that they conspired to distribute heroin and sell guns illegally.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Columbus Police Chief Kim Jacobs announced the charges.
The indictment charges three men who live on the west side of Columbus, Christopher L. McElroy, 19, Lamarco T. Brown, 18, Nathan G. Nixon, aka “Fat Boy,” 20 and a Grove City man, Robert A. Petty, 31, with conspiracy to unlawfully sell firearms, which is punishable by a maximum sentence of five years in prison. The indictment charges three of the defendants, McElroy, Brown and Nixon, with conspiracy to distribute heroin, a crime punishable by up to 20 years in prison.
The indictment accuses them of other crimes, including illegal distribution of heroin, possession with intent to distribute heroin, unlawful sales of firearms and unlawful possession of firearms.
McElroy was arrested on February 12 and is in the custody of the U.S. Marshals. The other defendants are at large.
U.S. Attorney Glassman commended the investigation of this case by the ATF and Columbus Police, and Assistant United States Attorney David J. Bosley, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Four Florence County Residents Plead Guilty in Federal Court to Manufacturing and Passing Counterfeit MoneyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Shadrick Jarmarcus Jett, age 26, Joel Ray Cain, Jr., age 25, Gary Jerome Smart, age 26, all of Florence, SC, and Christopher Jamall Moody, age 27, of Effingham, SC, pled guilty in federal court in Florence, South Carolina. Jett, Cain, and Smart pled guilty to conspiracy to manufacture and pass counterfeit money, and Moody pled guilty to conspiracy to pass counterfeit money, all in violation of Title 18, United States Code, Section 371. United States District Judge Bryan Harwell, of Florence, accepted the pleas and will impose sentences after he has reviewed the presentence reports which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that these four defendants were involved in a conspiracy to manufacture and pass counterfeit $100 and $50 bills in multiple states including South Carolina and North Carolina. This conspiracy, which began in 2015, included at least nine codefendants who were responsible for making and passing over $100,000 in counterfeit money.
Jett, Cain and Smart were involved in manufacturing counterfeit at multiple locations, including residences in Florence, SC. In fact, during a search of Cain’s Florence residence agents seized an Epson printer and a genuine $100 “parent note”, both of which belonged to Cain and were used to print counterfeit $100 bills. Jett was also found in possession of a genuine $100 “parent note” used to print counterfeit $100 bills when his car was stopped and searched by the Florence County Sheriff’s Office after a short chase. During the search of Jett’s car, deputies found the genuine parent note along with eleven completed counterfeit $100 bills and over 450 uncut partial images of counterfeit $100 bills all bearing the same serial number as the recovered parent note. Secret Service determined that 230 counterfeit $100 bills bearing this same serial number were passed beginning in June of 2017.
All four defendants also passed counterfeit $100 bills at various locations in South Carolina and North Carolina during 2016 and 2017. Cain passed a counterfeit $100 bill at a business in Easley, South Carolina. He also passed counterfeit $100 bills at businesses in Greensboro and Lenoir, North Carolina. Smart passed counterfeit $100 bills at businesses in Greenville and Spartanburg, South Carolina. Jett passed a counterfeit $100 bill in Concord, North Carolina. In March of 2017, Christopher Moody presented a counterfeit $100 bill to an employee of a business in Troy, North Carolina, after which he was arrested and found in possession of additional counterfeit $100 bills bearing serial numbers matching those of counterfeit bills passed by other codefendants in this case.
Ms. Drake stated the maximum penalty these four defendants can receive is imprisonment for 5 years and a fine of $250,000.00.
The case was investigated by agents of United States Secret Service with the assistance of the Florence County Sheriff’s Office and the Florence Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Fort Dodge Woman Sentenced to Federal Prison for Possessing MethamphetamineRead the Press Release
A woman who possessed methamphetamine was sentenced February 27, 2018, to over 17 years in federal prison.
Lara Pineda, age 33, of Fort Dodge, Iowa, received her prison term after a March 24, 2017, guilty plea to possession with intent to distribute methamphetamine.
At the guilty plea, Pineda admitted she possessed methamphetamine with the intent to distribute some or all of the methamphetamine to another person. On September 3, 2016, during a search of her vehicle Pineda was found in possession of approximately one pound of actual (pure) methamphetamine. After the plea hearing Pineda fled to Mexico and was arrested and transported back to the United States.
Pineda was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Pineda was sentenced to 210 months’ imprisonment. A special assessment of $100 was imposed. She must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Lara 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 Jack Lammers and investigated by the North Central Iowa Narcotics Task Force and the Cerro Gordo County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-3047.
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