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Tuesday 27 February 2018
Providence Man Pleads Guilty to Drug Trafficking, Firearms ChargesRead the Press Release
PROVIDENCE, RI – A Providence man indicted during a year-long joint Project Safe Neighborhoods investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Providence Police, to identify individuals possessing or trafficking firearms in and around the Chad Brown neighborhood of Providence, today pleaded guilty in federal court to firearms and drug trafficking charges.
Lawrence M. Crowell, 32, pleaded guilty as charged in an indictment returned in December 2016 to one count each of possession with intent to distribute marijuana, felon in possession of a firearm and possession of a firearm in furtherance of drug trafficking. Crowell, who has been detained in federal custody since his arraignment on December 19, 2016, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on May 16, 2018.
Project Safe Neighborhoods is a federal, state and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Crowell’s guilty plea is announced by United States Attorney Stephen G. Dambruch; Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF; and Providence Police Chief Colonel Hugh T. Clements, Jr.
According to court documents, on November 17, 2016, an individual assisting law enforcement in this Project Safe Neighborhoods investigation purchased $900 worth of marijuana from Crowell. During the transaction, which took place inside Crowell’s Chad Brown neighborhood apartment, Crowell removed a Sig Sauer pistol from his pocket and provided it to the individual for examination. Crowell told the individual that the firearm was “legit” and that he knew another person who had other types of firearms for sale. The firearm was returned to Crowell.
On November 21, 2016, ATF Agents, members of the ATF Task Force and Providence Police executed a court-authorized search of Crowell’s residence. In a bedroom, agents found nearly 363 grams of marijuana and the Sig Saur pistol, which was loaded with 12 rounds of hollow point ammunition and outfitted with a laser sight. In an attic, agents found a Ruger pistol secured by a gunlock, the key to which was found on Crowell’s key chain. The Ruger was loaded with 6 rounds of hollow point ammunition.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF Task Force is comprised of agents and officers from ATF, Providence Police Department, Pawtucket Police Department, Cranston Police Department, Rhode Island State Police, Providence Fire Department and the Rhode Island Department of Corrections.
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Portland Woman Pleads Guilty to Mailing Bomb ThreatsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Nina Michalski, 61, of Portland, Maine, pled guilty today in U.S. District Court to sending bomb threats through the mail.
According to court records, between October 2016 and February 2017, Michalski sent three letters from Maine to religious congregations in California. These letters indicated that a bomb had been planted or would be planted in the congregations’ facilities.
Michalski faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Contra Costa County, California Sheriff’s Office, the Walnut Creek, California Police Department, and the San Ramon, California Police Department.
Ponzi Scheme Nets Federal Prison Sentence, Probation for Berjac Company LeadersRead the Press Release
EUGENE, Ore. – On Tuesday, February 27, 2018, U.S. District Court Judge Michael J. McShane sentenced two former executives and two former employees of Berjac of Oregon for their roles in a multi-year Ponzi scheme impacting more than 400 investors.
Brothers Michael S. Holcomb, 74, and Gary L. Holcomb, 72, both of Junction City, Oregon, were sentenced to 72 months in federal prison followed by three-year terms of supervised release. Michael Holcomb’s daughters, Jennifer L. Chalmers, 46, of Eugene, and Kristen S. Van Breeman, 44, of Happy Valley, Oregon, each received five years’ probation and 250 hours of community service.
“The Holcomb brothers and their heirs apparent victimized hundreds of innocent Oregonians while perpetrating Lane County’s largest-ever Ponzi scheme. These defendants robbed investors of not only their hard-earned money, but also the months and years spent diligently investing for college, retirement and other financial goals,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “It is unlikely these victims will ever be made whole.”
“For years, the owners of the Berjac of Oregon and Berjac of Portland firms treated their clients like personal ATM's, using a Ponzi scheme to fund millions in risky real estate deals, vacations and personal expenses. When the scheme finally came crashing down, more than 400 victims discovered the promised rewards were nothing more than lies. Many lost their life savings to the defendants' greed and dishonesty,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
According to court documents, between 2008 and 2012, Michael and Gary Holcomb were the principal managing partners of Berjac, an insurance premium financing business based in Eugene and Portland, Oregon. During this time, the pair solicited investments purportedly used to finance loans to small businesses to pay for those businesses’ insurance premiums. Investors were promised between five and seven percent returns. Michael and Gary Holcomb went to extraordinary lengths to conceal the misdirection of investor funds and the underperformance of investments. They used their clients’ money to invest in speculative real estate projects, to fund generous lifestyles, and to satisfy other personal financial obligations.
Chalmers and Van Breeman worked as office managers at Berjac of Oregon, in Eugene, and Berjac of Portland, respectively. Both managed the day-to-day operations of the business and intended to one day assume ownership of the firm before it collapsed in August 2012.
On September 15, 2017, all four defendants pleaded guilty in federal court pursuant to plea agreements. Michael and Gary Holcomb each pleaded guilty to one count of conspiracy to commit mail and wire fraud and to one count of money laundering. Chalmers and Van Breeman each pleaded guilty to one count of money laundering.
This case was investigated by the FBI and IRS Criminal Investigation and prosecuted by Scott E. Bradford and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.
Owings Mills Man Sentenced to 30 Months in Federal Prison for Mail FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On February 27, 2017, U.S. District Judge Marvin J. Garbis sentenced Saleh Stevens, age 45, of Owings Mills, Maryland, to 30 months in prison, followed by 3 years of supervised release. Judge Garbis also ordered that Stevens pay over $3.4 million in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation; and U.S. Trustee Gerard R. Vetter of the Baltimore office of the United States Trustee Program.
In August 2014, Stevens pleaded guilty to stealing over $3,000,000 from his employer, Hanover Insurance. According to his plea agreement. Stevens was an attorney licensed to practice in Maryland and worked as a senior claims adjustor and bond claim attorney in the bond department of The Hanover Insurance Company regional office in Towson, Maryland. In this position, Stevens was responsible for reviewing and managing claims related to surety bonds. These bonds were generally for construction projects to assist with claims processing. Hanover employed CPA firm accountants and engineers to assist Hanover manage and resolve claims.
Beginning in December 2011, Stevens began to embezzle funds from Hanover’s special surety workout accounts. These accounts were established and funded with Hanover’s reserve funds. Using his position as a bond claim attorney, Stevens directed the outside CPA firms to issue checks from these Hanover special reserve accounts to the bank accounts of third-party entities that Stevens either controlled, or were controlled by his friends.
For example, Stevens approached his high school friend and offered to pay him $40,000 in exchange for opening a nominee company with a bank account. His friend then opened Lundy Lighting Supply, LLC, a fictional corporate entity, that did not have a physical location, conduct any business, have any employees, nor any customers. Stevens sent embezzled funds to this fictitious company and accounts.
In some instances, Stevens directed the owners of these third-party entities to issue checks to him for his personal benefit or directed Hanover CPAs to issue checks made payable to entities that he controlled. Stevens used these funds to purchase luxury automobiles, (including a 2008 Maserati and a 2009 Mercedes), and a fifty-foot yacht. Stevens also spent approximately $1,900,000 to fund for a NASCAR racing team.
In total, Stevens embezzled $3,119,129.22 from The Hanover Insurance Company.
Co-conspirator, Eric Myles Gordon, age 50, of Baltimore County, Maryland, was previously convicted of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, and falsification of records in bankruptcy, and was sentenced to 36 months in prison.
Acting United States Attorney Stephen M. Schenning commended the FBI, and the United States Trustee’s Baltimore Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Judson T. Mihok and P. Michael Cunningham, who prosecuted the case.
Niagara Falls Man Sentenced on Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Shaquan M. Shingledecker, 23, of Niagara Falls, NY, who was convicted of possession with intent to distribute heroin, was sentenced to 30 months by U.S. District Judge Elizabeth A. Wolford. The defendant will serve his federal sentence once he completes a 24 month sentence he is currently serving for a New York State Parole violation.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on February 2, 2017, New York State Troopers attempted to conduct a traffic stop of the defendant for a missing front license plate. Shingledecker did not pull over, but instead lead police on a high-speed chase at over 95 miles per hour through commercial and residential sections of Niagara Falls. The defendant lost control of his vehicle and crashed into the side of a house located at the intersection of Girard Avenue and 75th Street in Niagara Falls.
Inside Shingledecker’s vehicle at the accident scene, police found 95 glassine envelopes containing heroin, a loaded Ruger handgun with 10 rounds of ammunition, and $1,439.08 in United States currency.
Today’s sentencing is the result of an investigation by the New York State Police, under the direction of Major Edward Kennedy; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Niagara Falls Police Department, under the direction of Superintendent Bryan DalPorto.
New York Man Sentenced to 54 Months in Prison for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 54 months in prison for his role in an extensive scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Craig Carpenito announced.
Hector Urena previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count each of conspiracy to steal government funds, theft of government funds, and aggravated identity theft (Count Three). Judge Vazquez imposed the sentence today in Newark federal court
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.
The investigation revealed that Urena and others participated in a classic SIRF scheme. Urena’s conspirators obtained stolen identities to file fraudulent Form 1040s. He and his conspirators then used false and fraudulent documents to convert treasury checks into cash or other proceeds for their own profit at a check cashing business Urena owned. From August 2013 through May 2015, the scheme caused more than $2.7 million in losses to the U.S. Treasury.
In addition to the prison term, Judge Vazquez sentenced Urena to three years of supervised release and ordered him to pay $2.78 million in restitution.
U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin; special agents of the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Monica Weyler; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Criminal Division in Newark.
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 Orleans CPA Sentenced for Filing a False Income Tax ReturnRead the Press Release
U.S. Attorney Duane A. Evans announced that New Orleans Certified Public Account (CPA), BRENDEL DEEMER, age 48, was sentenced to serve three years of probation and pay a $3,000 fine for willfully filing a false tax return for herself. DEEMER was charged in June 2017 with a single count of filing a false tax return. She pleaded guilty in September 2017.
According to documents filed in court, DEEMER filed a false 2010 individual income tax return that excluded income and inflated expenses for businesses under her control. DEEMER operated Deemer CPA & Consulting Services LLC since at least 2009. From 1999 through 2005, she also operated Building Blocks Academy, a day care center. Defendant DEEMER ceased operating Building Blocks Academy after Hurricane Katrina and did not resume operating the business. As DEEMER admitted pursuant to her guilty plea, for tax years 2009 and 2010, she filed individual income tax returns that falsely reported her Schedule C business income from Deemer CPA and Consulting Services, LLC, and her expenses for Building Blocks Academy.
In addition to the fine and term of probation, United States District Judge Jay C. Zainey sentenced DEEMER to pay $88,651.22 in restitution to the Internal Revenue Service, a $100 special assessment, and 100 hours of community service.
U.S. Attorney Evans praised the work of the Internal Revenue Service-Criminal Investigations in investigating this matter. Assistant United States Attorney Hayden Brockett is in charge of the prosecution.
New Haven Man Sentenced to 6 Years in Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARLOS SANTIAGO, also known as “Carlito,” 51, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 72 months of imprisonment, followed by four years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by Bienvenido and Antonio Gonzalez. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that the Gonzalez brothers regularly purchased bulk quantities of heroin from suppliers located in the Bronx, New York, and sold the heroin through a network of redistributors, including SANTIAGO, in New Haven and elsewhere.
The investigation resulted in federal charges against 24 individuals.
SANTIAGO has been detained since his arrest on March 16, 2017. On November 30, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 100 grams or more of heroin.
Bienvenido Gonzalez and Antonio Gonzalez have pleaded guilty to related charges and await sentencing.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
NYPD Detective Charged with Perjury and Obstruction of JusticeRead the Press Release
A three-count indictment was unsealed earlier today in federal court in Brooklyn charging Michael Foder, a detective with the New York City Police Department (NYPD), with perjury and obstructing an official proceeding in connection with false sworn testimony that Foder gave in a proceeding in United States District Court on December 29, 2016. The defendant will be arraigned later today before United States Magistrate Judge Vera M. Scanlon.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, NYPD, announced the charges.
According to the indictment and court filings, Foder falsely testified under oath about when and how he showed photographs of two robbery suspects to a victim of the robbery. Following the hearing, the government identified several discrepancies in the photo array identifications. Handwritten notations indicated that the photo arrays had been completed on November 27, 2015 and February 14, 2016, as Foder had testified. However, the photographs of fillers depicted in the photo arrays had been taken on dates subsequent to the dates Foder claimed he had shown them to the victim witness. Foder is alleged to have falsified documentation relating to the purported identifications made by the victim.
“As alleged in the indictment, this defendant provided false testimony in a federal criminal proceeding,” stated United States Attorney Donoghue. “Our justice system relies upon the absolute integrity of our law enforcement officers and, while the vast majority of officers uphold that standard, we will not hesitate to act when one does not.”
“As alleged, Foder committed a serious crime by lying while under oath. In doing so, he threatened the reputation of the honest men and women of law enforcement who work selflessly to weed out crime and keep their communities safe,” stated FBI Assistant Director-in-Charge Sweeney. “We hold all officers to the highest standards, and we’ll be quick to respond whenever these ideals are challenged–there are no exceptions.”
“The NYPD and all the people we serve expect the highest levels of integrity and truthfulness from our police officers, who swore an oath to uphold the fundamental principles of our city, state, and nation,” Police Commissioner O’Neill said. “The detective charged today broke that oath by willfully giving false testimony, an act that makes the job of every other police officer more difficult. The NYPD goes to enormous lengths to detect those who break the law or do not follow policies and procedures – from integrity testing by our Internal Affairs Bureau; to auditing of crime and other reports; to regular collaboration with local and federal prosecutors; to proactive training for all police officers, new investigators, and supervisors.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nathan Reilly is in charge of the prosecution.
The Defendant:
MICHAEL FODER
Age: 41
Staten Island, NYE.D.N.Y. Docket No. 18-CR-97 (PKC)
Minnesota Man Sentenced to 210 Months for Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
United States Attorney Ron Parsons announced that a Pipestone, Minnesota, man convicted of Travel with Intent to Engage in Illicit Sexual Conduct was sentenced by U.S. District Judge Karen E. Schreier on February 26, 2018.
Roger Blaisdell, age 60, was sentenced to 210 months in custody, followed by 10 years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund.
Blaisdell was indicted for intent to engage in illicit sexual conduct and attempted production of child pornography by a federal grand jury on November 1, 2016. He pled guilty on October 12, 2017.
“Our office is fortunate to be able to work with the dedicated law enforcement teams at Homeland Security Investigations and ICE in putting criminals like this behind bars where they belong,” said U.S. Attorney Parsons. “Our children and our communities are safer today because of their efforts.”
On October 14, 2016, Blaisdell responded to an advertisement on the Craigslist internet website. Unknown to Blaisdell, an undercover law enforcement officer had placed the advertisement. Through a series of emails and text messages, Blaisdell arranged to have sexual contact with a 10-year-old female and a 13-year-old female at a hotel in Sioux Falls, South Dakota. On October 19, 2016, Blaisdell traveled from his residence in Pipestone to the hotel in Sioux Falls, where he had rented a room.
“This sentencing sends a very strong message to child predators that HSI is committed to working with federal prosecutors to protect children from sexual predators,” said Acting Special Agent in Charge Eugene Paulauskas of HSI St. Paul. “The men and women of HSI are dedicated to relentlessly seeking justice for the victims of these horrendous crimes.”
This case was investigated by U.S. Immigration and Customs Enforcement and the Department of Homeland Security. Assistant U.S. Attorney Jeff Clapper prosecuted the case.
Blaisdell was immediately turned over to the custody of the U.S. Marshals Service.
Mexican Citizen Sentenced to over 6 Years in Prison for Assaulting Federal AgentRead the Press Release
TUCSON, Ariz. – On Feb. 22, 2018, Leopoldo Rubio-Quinonez, of Sinaloa, Mexico, was sentenced by U.S. District Judge Cindy K. Jorgenson to 78 months in prison. Rubio-Quinonez had previously pleaded guilty to assaulting a federal officer and reentry of a removed alien.
On Dec. 24, 2016, Rubio-Quininez assaulted a United States Border Patrol Agent who was arresting him for an immigration violation. In the process, Rubio-Quinonez bit the agent's thumb causing a severe injury. Rubio-Quininez also attempted to grab the agent's firearm. During the assault, Rubio-Quinonez told the agent that he was going to kill him.
The investigation in this case was conducted by the United States Border Patrol. The prosecution was handled by Jesse Figueroa and Karen Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-17-0094-TUC-(LAB)
RELEASE NUMBER: 2018-17_ Rubio-Quinonez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Methamphetamine Importer Heads to PrisonRead the Press Release
LAREDO, Texas – A 22-year-old Texas man has been ordered to federal prison following his conviction of importing more than 56 kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Amado Flores-Casas Jr., of Elgin, pleaded guilty Sept. 1, 2017.
Today, U.S. District Judge Keith P. Ellison handed Flores a total sentence of 120 months in federal prison followed by five years of supervised release. In handing down the sentence, the court noted that this was the defendant’s first drug offense and had no record of violent crimes.
On June 17, 2017, Flores arrived at the Lincoln Juarez International Bridge in Laredo driving a white Ford F-150. He was ordered to secondary inspection, at which time agents using a fiber optic scope noticed crystallization and a thick milky substance below the gasoline inside the tank of the vehicle. Authorities removed the gas tank and discovered approximately 56.78 kilograms of liquid methamphetamine.
Flores will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
Manchester Man Sentenced to 54 Months in Prison for Firearm Offenses, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT V. GENTILE, 81, of Manchester, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 54 months of imprisonment, followed by three years of supervised release, for firearm offenses, and for violating the conditions of his supervised release from a prior federal conviction. Judge Chatigny ordered GENTILE to serve the first six months of his supervised release in home confinement.
According to court documents and statements made in court, on February 10, 2012, GENTILE was arrested after a federal investigation had revealed that he was involved in the illegal distribution of prescription narcotics. Subsequent court-authorized searches of GENTILE’s Manchester residence resulted in the seizure of 200 Percocet tablets packaged for distribution, two .38 caliber Smith & Wesson revolvers, a .22 caliber North American Arms revolver, a .22 caliber derringer, a 12-gauge pistol-grip shotgun, numerous rounds of ammunition, boxes of 12-gauge shotgun shells, five handgun silencers, other items and approximately $22,000 in cash. GENTILE pleaded guilty to federal drug and firearm offenses and, on May 9, 2013, was sentenced to 30 months of imprisonment, followed by three years of supervised release.
On March 2, 2015, while on supervised release, GENTILE sold a .38 Colt Cobra revolver, which was loaded with five rounds of Smith & Wesson .38 Special ammunition, for $1,000 to an individual he knew to be a convicted felon. The sale occurred at GENTILE’s residence, where the revolver had been hidden in a couch cushion.
GENTILE was arrested on a criminal complaint on April 17, 2015, and was ordered detained. On April 28, 2015, a grand jury returned an indictment charging him with possession of ammunition by a convicted felon, and sale of a firearm to a convicted felon.
On May 2, 2016, FBI special agents executed an unrelated federal search warrant at GENTILE’s Manchester residence and seized a .22 caliber Browning semi-automatic pistol, a 9mm Walther semi-automatic pistol, a .380 caliber RPB Industries, M11-Al semi-automatic pistol, and an unregistered silencer. On May 24, 2016, a grand jury returned an indictment charging GENTILE with one count of possession of firearms by a previously convicted felon, and one count of possession of an unregistered silencer.
On April 6, 2017, GENTILE pleaded guilty to one count of possession of ammunition by a previously convicted felon, one count of possession of firearms by a previously convicted felon, and one count of possession of an unregistered silencer. GENTILE also admitted that he violated the terms and conditions of his supervised release.
Judge Chatigny sentenced GENTILE to 42 months of imprisonment for the three firearm offenses, and a consecutive 12 months of imprisonment for violating the conditions of his supervised release.
GENTILE has been detained since his arrest on April 17, 2015.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by U.S. Attorney John H. Durham.
Man Sentenced to 16 Years in Prison for Child Pornography and Failure to Register as a Sex OffenderRead the Press Release
BOSTON – A former Massachusetts man was sentenced today in federal court in Boston for possessing and distributing child pornography and for failing to register as a sex offender. The offenses stem from two separate cases.
Scot Letourneau, 44, formerly of Quincy and Maine, was sentenced by U.S. District Court Judge Denise J. Casper to 16 years in prison and five years of supervised release. In November 2017, Letourneau pleaded guilty to one count of distribution of child pornography and one count of possession of child pornography; and in a separate case, he pleaded guilty to failure to register as a sex offender.
In early 2015, law enforcement learned that an individual was trading images of child pornography on Kik Messenger with an individual in Connecticut. Further investigation linked the Kik Messenger account to Letourneau. On May 21, 2015, a search warrant was executed at Letourneau’s home, and a preliminary review of his cellphone revealed that he exchanged images of child pornography with others. Forensic analysis revealed that Letourneau had a collection of approximately 103 videos and more than 500 images of children engaged in sexually explicit acts.
After Letourneau was arrested and charged in May 2015, the government sought to detain him pending trial based on his prior convictions, including a 2004 conviction of distribution of child pornography in Cheshire County (N.H.) Superior Court. However, on Aug. 5, 2015, the Court released Letourneau on an electronic bracelet and home confinement in Maine. On Nov. 3, 2015, Letourneau fled Maine to New Mexico, where he resided under an alias. In March, 2017, Letourneau was apprehended in Denver, Colo., and later returned to Massachusetts.
In addition, as a result of his 2004 conviction, Letourneau is required to register as a sex offender, which he failed to do while living in New Mexico as a fugitive under an alias.
Due to Letourneau’s previous child pornography conviction, the current charge of distribution of child pornography provides for a mandatory minimum sentence of 15 years and no greater than 40 years in prison; and the charge of possession of child pornography provides for a mandatory minimum of 10 years and no greater than 20 years in prison. Both charges provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of failure to register as a sex offender provides for no greater than 10 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling, John Gibbons, U.S. Marshal for the District of Massachusetts, and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the U.S. Marshals Service for the District of Colorado; the Adams County (Colo.) Sheriff’s Department; the Connecticut State Police; the Quincy Police Department; and the U.S. Coast Guard. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Man Sentenced for Retaliation Against Federal OfficerRead the Press Release
RICHMOND, Va. – A Chester man was sentenced today to 71 months in prison for retaliating against a federal agent by false claim, and bankruptcy fraud.
Shapat Nabaya, aka Norman Abbott, 60, was convicted by a federal jury on Oct. 19, 2017. According to court records and evidence presented at trial, Nabaya filed numerous civil lawsuits and a false mechanic’s lien against an IRS revenue officer in retaliation for the officer filing a lien on Nabaya’s pension after Nabaya had failed to pay his federal taxes for several years. Nabaya also filed a false involuntary bankruptcy petition against the same revenue officer in the U.S. Bankruptcy Court for the Eastern District of Virginia.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorneys Gabrielle Michalak and Jessica D. Aber prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-03.
Man Pleads Guilty to $480K Youth Counseling ScamRead the Press Release
RICHMOND, Va. – A Georgia man pleaded guilty today to defrauding the City of Hopewell of approximately $480,000 and evading his personal income taxes.
According to court documents, Keith Hayes, 46, of Decatur, formed a business he named “A World of Possibilities” (WOP) in October of 2011, for the ostensible purpose of providing mentoring and counseling services to at-risk students at public schools in the City of Hopewell. At the time that Hayes created WOP, Hayes had a close personal relationship with a person identified in court documents as Co-Conspirator One, who was employed as the City of Hopewell’s Comprehensive Services Act (CSA) Coordinator. In that capacity, Co-Conspirator One was responsible for directing CSA-funded counseling contracts to service providers, and began appointing WOP as the approved service provider for a number of at-risk students in Hopewell City Public Schools. Under those contracts, Hayes was supposed to provide mentoring and counseling services to those at-risk students. However, despite the fact that WOP did not employ any counselors and never provided any services to any Hopewell student, WOP billed the City of Hopewell for $480,875 worth of counseling services between November 2011 and June 2015.
During this same time period, Hayes also evaded making any income tax payments, despite taking in more than $588,000 in income between 2011 and 2015. Hayes’s total tax evasion liability amounts to more than $169,000.
Hayes pleaded guilty to mail fraud and tax evasion and faces a maximum penalty of 20 years in prison when sentenced on August 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney Thomas A. Garnett is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-154.
Lewiston Man Charged with Marijuana Trafficking and Butane Hash Oil ManufacturingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Richard Daniels, a/k/a “Stitch”, 52, of Lewiston, Maine, was arrested and charged today by criminal complaint in U.S. District Court with possession with intent to distribute marijuana and manufacturing butane hash oil.
According to the complaint, the charges arose from an investigation into a drug trafficking organization located in the Lewiston-Auburn area that is alleged to have grown and distributed large quantities of marijuana in violation of federal law, and under the cover of, but in violation of, Maine’s Medical Marijuana program. The organization cultivated marijuana at numerous warehouses in Androscoggin County and distributed marijuana to people who were not participants in Maine’s Medical Marijuana program, including out-of-state customers. This organization also grew marijuana as a precursor for the illegal manufacture of marijuana concentrates known as butane hash oil and “shatter,” a product made from butane hash oil.
Today, federal, state and local law enforcement agents executed over 20 search warrants in the Lewiston-Auburn area associated with the organization. The defendant’s residence and garage were searched and agents seized over 50 kilograms of marijuana, six mason jars partially filled with butane hash oil, and a kilogram of shatter. The defendant’s garage contained a butane hash oil laboratory.
If convicted, the defendant faces up to 20 years in prison and a $1,000,000 fine.
The defendant is expected to make an initial appearance in U.S. District Court today at 4:30 p.m. in Portland.
The investigation is being conducted by the U.S. Drug Enforcement Administration; the Internal Revenue Service, Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Maine State Police; and the Lewiston, Auburn, Windham, Biddeford and Scarborough Police Departments.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Lead Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Lead, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Timothy Conwell, age 37, was sentenced on February 23, 2018, to 71 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Conwell was indicted for the charge by a federal grand jury on January 24, 2017. The conviction stems from Conwell conspiring with another person to distribute more than 50 grams of methamphetamine near Deadwood.
This case was investigated by the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Conwell was immediately turned over to the custody of the U.S. Marshals Service.
Landover Man Sentenced to 10 Years in Prison for Firearm PossessionRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Michael Wayne Brown, age 40, of Landover, Maryland, today to 10 years in prison followed by three years of supervised release for firearm possession and firearm possession in a school zone.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement on July 14, 2016, members of the Prince George’s Police Department executed a search warrant at Brown’s home in Landover. The residence was located near two difference school zones – the William Paca Elementary School and the Pentecostal Evangelical Church. During the course of the search, law enforcement officers recovered five grams of marijuana $5,200 and a loaded .40 caliber handgun.
Brown knowingly possessed the handgun, which was manufactured outside of Maryland, and he was not licensed to deal, import, manufacture or collect firearms. He also knowingly possessed the firearm on the grounds or within 1,000 feet of a school zone.
Acting United States Attorney Stephen M. Schenning commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Jennifer Sykes and Trial Attorney Sarah Edwards of the Criminal Division’s Fraud Section, who prosecuted the case.
Kewa Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Ruben Cheykaychi, 35, an enrolled member and resident of Kewa Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge.
The BIA arrested Cheykaychi in May 2017, on an indictment charging him with assault with a dangerous weapon with intent to do bodily harm. According to the indictment, Cheykaychi committed the crime on April 20, 2016, on the Kewa Pueblo Indian Reservation in Sandoval County, N.M.
During today’s proceedings, Cheykaychi pled guilty to the indictment and admitted assaulting his ex-girlfriend on April 20, 2016, after seeing her vehicle parked in an area of Kewa Pueblo. In his plea agreement, Cheykaychi stated that, after a failed attempt to engage her in conversation, he became upset and began yelling at the victim. Cheykaychi admitted retrieving a BB gun, which resembled a real handgun, from his vehicle and holding it to the victim’s head while threatening to shoot her. He also admitted putting the BB gun in the victim’s mouth while continuing to yell at her and threatening her, and attempting to take her car keys from her to prevent her from escaping.
At sentencing, Cheykaychi faces a maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by Southern Pueblos Agency of the BIA, Office of Justice Services. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Kansas Man Sentenced to 12 Years for Possessing Meth to DistributeRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Topeka, Kan., man was sentenced in federal court today for distributing large amounts of methamphetamine in the Joplin, Mo., area.
Jacob A. Beckham, 33, of Topeka, Kan., was sentenced by U.S. District Judge M. Douglas Harpool to 12 years in federal prison without parole.
On July 26, 2017, Beckham pleaded guilty to possessing methamphetamine with the intent to distribute.
According to court documents, a detective with the Newton County, Mo., Sheriff’s Department saw Beckham, driving a black Ford Fusion, swerve over the yellow line several times on I-49 near Highway V on May 5, 2015. A deputy followed the vehicle to the parking lot of Shoal Creek Plaza and activated his vehicle’s emergency lights and siren. Beckham’s vehicle sped off and the deputy pursued him in a high-speed chase. During the chase, the deputy saw Beckham throw several items out of the vehicle, including a black and silver case.
When the vehicle came to a stop at a dead end near 6580 Hereford Road, Beckham attempted to flee on foot. The deputy caught Beckham after a short pursuit. When Beckham and the passengers in his vehicle were secured, law enforcement officers recovered the contents that were thrown from the vehicle during the pursuit. Those items included the black and silver case, nine clear baggies that contained a total of 167 grams of crystal methamphetamine, 22 bags with methamphetamine residue, two marijuana joints, seven cell phones and drug paraphernalia. Three passengers in the vehicle confirmed that Beckham threw the case that contained methamphetamine out of the car as he was being pursued by law enforcement.
Beckham admitted that prior to his encounter with law enforcement on May 5, 2015, he had been selling approximately two pounds or more of methamphetamine per month within the past year. Beckham is conservatively responsible for distributing approximately 24 pounds of methamphetamine.
Beckham has five previous convictions for possession of methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Newton County, Mo., Sheriff’s Department.
Justice Department to File Statement of Interest in Opioid CaseRead the Press Release
The Department of Justice today announced it will be filing a Statement of Interest in a multi-district action regarding hundreds of lawsuits against opioid manufacturers and distributors.
The plaintiffs include numerous cities, municipalities, and medical institutions that have borne the costs of the prescription opioid crisis. The plaintiffs seek to recover the costs associated with providing treatment and public safety measures relating to the opioid epidemic from those who allegedly used false, deceptive, or unfair marketing practices for prescription opioid drugs.
The Justice Department will primarily argue that the federal government—through various federal health programs and law enforcement efforts—has borne substantial costs from the opioid epidemic and seeks reimbursement.
In announcing the plan to file the Statement of Interest, Attorney General Jeff Sessions provided the following statement:
“Opioid abuse is driving the deadliest drug crisis in American history. It has cost this nation hundreds of thousands of precious lives. It has strained our public health and law enforcement resources and bankrupted countless families across this country. President Trump and this administration have made ending this unprecedented crisis a priority, and the Department of Justice is committed to using every lawful tool at our disposal to turn the tide. We will seek to hold accountable those whose illegality has cost us billions of taxpayer dollars.”Justice Department Reaches Agreement with Jackson County Florida School District on School DesegregationRead the Press Release
The Department of Justice on Friday, Feb. 23, reached an agreement with the Jackson County School Board in Florida that paves the way for the district to complete desegregation and achieve full unitary status. The agreement, which was approved by the U.S. District Court for the Northern District of Florida on Friday, addresses all remaining issues in the school desegregation case and, when fully implemented, will lead to the closure of that case.
The agreement declares that the district has achieved partial unitary status in the areas of student assignment (between schools); transportation; extracurricular activities; and facilities. The agreement retains judicial supervision over the areas of recruitment, hiring and promotion; and within-school segregation related to student discipline.
The agreement puts the district on a path to full unitary status by early 2020 provided it takes steps including: formalizing and implementing a plan to attract a diverse pool of applicants for faculty, administrator, and staff vacancies; revising the District’s code of conduct to ensure fairness and consistency in the handling of student disciplinary offenses; and providing district staff with additional tools to address student misbehavior and promote positive behavior.
The court will retain jurisdiction over the agreement during its implementation, and the Justice Department will monitor the district’s compliance.
“We are pleased with the work the district has done to comply with many of its desegregation obligations,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We look forward to working with the district to ensure fair and equal treatment for all its students in the remaining areas and bringing this case to a successful close.”
Promoting school desegregation and enforcing Title IV of the Civil Rights Act of 1964 is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Juan E. Seary-Colón, a.k.a. “Ricky Diablo” Found Guilty of Hobbs Act Robbery and MurderRead the Press Release
SAN JUAN, PR – Yesterday, after a four-day jury trial, a jury found Juan E. Seary-Colón, a.k.a. “Ricky Diablo” guilty of Hobbs Act robbery and murder, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI and the Puerto Rico Police Department (PRPD) were in charge of the investigation. On April 19, 2012, Seary-Colón was charged in a four-count indictment with interference of commerce by robbery, possession, and use of a firearm in furtherance of a crime of violence resulting in death, and possession of a firearm by prohibited person.
During trial, the government showed that on April 3, 2012, Juan E. Seary-Colón, aka “Ricky Diablo,” entered Piezas Importadas Inc., a business dedicated to the sale of automobile parts in Carolina, PR, and without warning shot the manager, David Méndez-Calderón, killing him. The government presented eyewitness testimony that narrated how the defendant and another assailant entered the store, shot Mr. Méndez-Calderón, and stole approximately $1,000.00 from Piezas Importadas’ employees. Seary-Colón was identified by eyewitnesses in the days after the robbery and was arrested by PRPD on April 6, 2012. The defendant will be sentenced on June 5, 2018 before the Honorable District Judge Gustavo A. Gelpi.
“I hope that this conviction will help Mr. Méndez-Calderón’s family find some closure,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue to work diligently to prosecute violent criminals to the fullest extent of the law. Senseless acts of violence which threaten our communities and innocent victims will not be tolerated.”
The case was prosecuted by Assistant United States Attorneys Nicholas Cannon and Scott Anderson.
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Indianapolis Man Sentenced to 120 Months in PrisonRead the Press Release
HAMMOND- Jermaine Johnson, 32, of Indianapolis, Indiana, was sentenced before Judge Jon E. DeGuilio on his plea of guilty to possessing with intent to distribute 100 grams or more of heroin, announced U.S. Attorney Thomas L. Kirsch II.
Johnson was sentenced to 120 months imprisonment and 4 years of supervised release.
According to documents in this case, on February 17, 2016 Johnson was the passenger in a car pulled over for speeding by the Indiana State Police. After detection of marijuana within the car, the car was searched and law enforcement found 3 bricks of heroin within the engine compartment weighing 784 grams along with over $84,000 in cash. Johnson admitted at the time that both the heroin and money were in his possession.
This case was investigated by the Drug Enforcement Administration/HIDTA Group and the Indiana State Police. This case was prosecuted by Assistant U.S. Attorney Thomas McGrath.
Houma Man Indicted on Heroin ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced, after the unsealing of an indictment, that MICHAEL C. CRAWFORD, JR., age 42, of Houma, was charged with three counts of distribution of heroin.
According to the indictment, on January 20, 24, and 30, 2018, CRAWFORD distributed a quantity of a mixture containing a detectible amount of heroin. If convicted of these charges, the defendant face a term of imprisonment of up to twenty years.
U.S. Attorney Evans reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration and the Terrebonne Parish Sheriff’s Office. Assistant United States Attorneys James S. C. Baehr, Nicholas D. Moses, and André Jones are in charge of the prosecution.
Holy Cross Man Sentenced to Federal Prison for Unlawfully Possessing GunsRead the Press Release
A convicted felon who unlawfully possessed a firearm was sentenced today to a year in federal prison.
Brett John Schmerbach, age 44, from Holy Cross, Iowa, received the prison term after a September 24, 2017, guilty plea to possession of a firearm by a felon. At the guilty plea, Schmerbach admitted that on December 30, 2016, he possessed three guns: (1) a Browning, BPS Micro Midas, 20 gauge shotgun; (2) a Remington Arms Company, 870 Express Magnum, 12 gauge shotgun; and (3) a Henry Repeating Rifle Company, H004, Golden Boy, .22 caliber rifle. At the time he possessed the guns, Schmerbach had twice been convicted felony operating while intoxicated offenses. The guns were found at Schmerbach’s residence while police were searching the residence pursuant to a search warrant. Besides the guns, officers also found methamphetamine, drug paraphernalia, and ammunition.
Schmerbach was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Schmerbach was sentenced to 12 months’ imprisonment and fined $5,500. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Schmerbach is being held in United States Marshal’s custody until he can be transported to a federal prison. Schmerbach was originally released on supervised release following his indictment, but was later detained due to his failure to follow the conditions of his release set by the District Court.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Delaware County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-02059.
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Hibbing Man Sentenced to 20 Years in Federal Prison for Producing Child PornographyRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of KEVIN JAMES PETROSKE, 36, to 20 years in prison for producing, attempting to produce and possessing images and videos containing child pornography. PETROSKE was found guilty on August 30, 2017, following a three-day trial, on three counts of production and attempted production of child pornography, five counts of attempted production of child pornography, and one count of possession of child pornography. PETROSKE was sentenced earlier today before Judge Patrick J. Schiltz in United States District Court in Minneapolis, Minn.
As proven at trial, on October 23, 2015, law enforcement received a report of a man peering into residential windows of a home in Hibbing, Minn. Shortly after, law enforcement apprehended and identified the suspect as PETROSKE. Law enforcement investigators determined that PETROSKE had prior convictions in Stearns County for felony stalking and an open investigation in Benton County for possession of child pornography. Upon execution of a search warrant at PETROSKE’S residence, investigators seized a laptop computer containing hundreds of videos and images containing child pornography.
As proven at trial, many of the videos found on PETROSKE’S laptop, which were recorded between October 2011 and September 2015, contained surreptitious recordings of minor females filmed by PETROSKE through the windows of their homes without their knowledge. PETROSKE captured the victims in their bedrooms and bathrooms in various private moments and, in many of the videos, PETROSKE is heard masturbating and making sexual comments.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is the result of an investigation conducted by the FBI, Minnesota Bureau of Criminal Apprehension, and the Hibbing Police Department.
Assistant U.S. Attorneys Manda M. Sertich and Melinda A. Williams prosecuted the case.
Defendant Information:
KEVIN JAMES PETROSKE, 36
Hibbing, Minn.
Convicted:
- Production and attempted production of child pornography, 3 counts
- Attempted production of child pornography, 5 counts
- Possession of child pornography, 1 count
Sentenced:
- 240 months in prison
- 10 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Heavily armed Northside drug trafficking organization dismantledRead the Press Release
Part of U.S. Attorney’s January 2018 Project Safe Neighborhoods Strategy.
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler announced today a drug trafficking organization operating on the Northside has been dismantled. Fourteen federal defendants face charges that include conspiracy to deal controlled substances (including methamphetamine), carrying a firearm during and in relation to a drug-trafficking offense, and illegal possession of a firearm.
“In January, I rolled out this district’s PSN initiative, aimed at reducing gun violence through aggressive federal prosecution,” said Minkler. “Each IMPD district has an Assistant United States Attorney assigned to work closely with our law enforcement partners to prosecute the most violent offenders who terrorize our neighborhoods. I am hopeful this sends a very clear message, that if you choose to use guns to further your criminal activities, look over your shoulder because federal law enforcement is watching.”
Those arrested on Friday, February 23, 2018, include:
Devon Price, 31, Indianapolis, a/k/a Big Mike
William Bobo, 25, Indianapolis
Michael Graham, 23, Indianapolis, a/k/a Mike-Mike
Alan Wann, 20, Indianapolis, a/k/a Boogie
Dujaun Terry, 21, Indianapolis, a/k/a Juan-Juan, a/k/a Youngster
Ricky Wilburn, 24, Indianapolis
Henry Phillips, 25 Indianapolis
As a result of search warrants that were executed on Friday, February 23, 2018, agents and officers seized quantities of methamphetamine, marijuana, synthetic cannabinoids, and other drugs, as well as over $20,000 in currency, 29 cell phones, and 10 firearms. According to the most recent complaint affidavit, members of the drug trafficking organization are alleged to deal in large quantities of controlled substances, including those seized. Many of the individuals arrested over the course of the investigation, including on Friday, possessed firearms despite being prohibited from possessing them because of prior convictions.
This case has been investigated by the Indianapolis Metropolitan Police Department (IMPD); the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and the Drug Enforcement Administration (DEA), with substantial assistance from the Indiana State Police.
Since May 2017, the ATF-Achilles Task Force and the IMPD North District Narcotics Unit, together with other law enforcement agencies, have been conducting an investigation into an armed drug-trafficking organization operating in Indianapolis. Several members of the organization have been identified as suspects in violent crimes in the North District. Many of them previously referred to themselves as Stupid Star Entertainment (SSE), which they claimed was a rap group in an area of Northeast Indianapolis they referred to as “Gangsterville.” Friday’s arrests represent the latest arrests in the ongoing investigation. Other federal arrests related to the investigation include:
Mose Bell, 42, Indianapolis
William Elliott, 24, Indianapolis
Corey Gibson, 39, Indianapolis
Tracy Hollowell, 23, Indianapolis
Derrick Motley, 27, Indianapolis
Jonathan Talley, 25, Indianapolis
Larry Wood, 43, Indianapolis
“The collective efforts of IMPD and our federal partners continue to send a formidable message that violence will not be accepted in our community,” said Chief Bryan Roach. “As we continue to combine law enforcement resources, both federal and local, around violent offenders and groups we are hopeful that those embroiled in violence get the message that we are resolute and intend to address violence to foster safer neighborhoods.”
“These arrests represent the culmination of countless hours of investigative work by IMPD’s North District Narcotics and FLEX Units and ATF/IMPD Achilles Task Force Officers and Agents,” stated Trevor Velinor, Special Agent in Charge for ATF’s Columbus Field Division. “The individuals arrested in the course of this investigation have flooded the streets of Indianapolis with drugs and guns, leaving innocent residents in fear. ATF and our partners are committed to returning our community to its rightful owners, those living, working, and raising families there.”
According to Assistant United States Attorney Matthew Lasher, who is prosecuting this case for the government, all defendants face up to a decade or more in prison if convicted.
A criminal complaint is only a charge and not evidence of guilt. All defendants are considered innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to use partnerships with law enforcement agencies to prosecute individuals engaged criminal drug and firearms violations. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.2.
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Hardy County man sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Grant Sager, of Wardensville, West Virginia, was sentenced today to 21 months incarceration for making methamphetamine, United States Attorney Bill Powell announced.
Sager, age 27, pled guilty to one count of “Possession of Material used in the Manufacture of Methamphetamine” in September 2017. The crime occurred on June 21, 2016 in Hardy County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hardy County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Hamden Man Sentenced to More Than 15 Years for Armed Robberies of West Haven Post Office and Hamden BankRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DERRICK WHITE, also known as “Fly,” 53, of Hamden, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 188 months of imprisonment, followed by five years of supervised release, for committing armed robberies of the Allingtown Post Office in West Haven and the Wells Fargo Bank in Hamden on April 21, 2016.
According to court documents and statements made in court, on the morning of April 21, 2016, WHITE, Malcolm Haynes, Howard Bookert and another male drove in WHITE’s vehicle to the vicinity of the Allingtown Post Office located at 75 Farwell Avenue in West Haven. WHITE, Bookert and Haynes, who was armed with a .22 caliber rifle, then entered the post office. Haynes pointed the rifle at individuals who were in the lobby and the clerk behind the counter and directed them to stay away from the door. WHITE then hopped over the counter, waved the postal clerk away from her station, removed the cash drawer from the counter and handed it to Bookert. The robbers then fled with the drawer, which contained approximately $491.
In the afternoon of April 21, 2016, the four individuals drove to a branch of Wells Fargo Bank located at 1647 Whitney Avenue in Hamden. Haynes, again armed with the rifle, WHITE and the other male entered the bank. Haynes pointed the rifle in the direction of various employees as WHITE went behind the counter and removed approximately $9,287 from teller drawers. During the robbery, the other male brandished what appeared to be a small black semi-automatic pistol.
WHITE and Bookert were apprehended in New Haven on April 21, 2016. On that date, investigators recovered the firearm that Haynes used during the robberies, which Haynes had hidden in a plastic garbage bag behind a house in New Haven. Haynes was arrested on May 23, 2016. The three defendants have been detained since their arrests.
On January 25, 2017, WHITE pleaded guilty to one count of armed bank robbery.
Haynes, of New Haven, and Bookert, of Hamden, previously pleaded guilty to related federal charges, and the fourth male was charged by the state. On May 3, 2017, Haynes was sentenced to 90 months of imprisonment. On August 31, 2017, Bookert was sentenced to approximately 16 months of imprisonment, time served.
WHITE’s criminal history spans more than 30 years and includes 10 prior convictions, including multiple robbery convictions. In 1982, he shot an individual in the stomach and arm in a dispute over stolen gold chains.
This matter was investigated by the West Haven Police Department, Hamden Police Department, New Haven Police Department, Federal Bureau of Investigation and U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
Hamden Man Pleads Guilty to Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that IRA MALKIN, 48, of Hamden, waived his right to be indicted and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of tax evasion.
According to court documents and statements made in court, MALKIN worked as a principal salesman for Good Copy Printing Center Inc. (GCP), a printing company located in New Haven. MALKIN earned substantial commissions from GCP based on sales made to customers. Between approximately 2003 and 2012, GCP paid many of MALKIN’s personal expenses. With MALKIN’s consent, GCP reduced MALKIN’s commissions by the amount of personal expenses the company paid. GCP then reported to the IRS through filed W-2 forms that MALKIN had earned substantially less income than he truly earned.
In addition, GCP handled printing jobs for Comcast, which included GCP mailing out flyers and paying the relevant postage expense with the expectation that GCP would subsequently be reimbursed for that expense. MALKIN had GCP pay the postage expense for the Comcast mailings, had Comcast reimburse him for the cost of the mailings, and then had GCP reduce his earned commissions by the amount of postage paid by GCP. Through this arrangement, between approximately 2009 and 2012, GCP further underreported MALKIN’s income on W-2 forms filed with the IRS.
Through this scheme, MALKIN failed to pay $484,581 in federal income taxes.
Chief Judge Hall scheduled sentencing for May 22, 2018, at which time MALKIN faces a maximum term of imprisonment of five years. He also has agreed to make full restitution to the IRS, and additional penalties and interest that have accrued on his unpaid taxes.
This matter is being investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Grand Jury Indicts Four Brazilian Men in ATM Skimming ConspiracyRead the Press Release
DAYTON – A federal grand jury has charged four men from Brazil with one count of conspiracy to defraud the United States, through “ATM skimming,” in an indictment returned here today. ATM skimming is a process that allows thieves to obtain cardholders’ personal identification information.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Services and members of the Miami Valley Bulk Smuggling Task Force announced the charges.
According to court documents, in January 2018, Dayton law enforcement officials observed defendants conducting suspicious activity, which led them to conduct further surveillance of the group. Investigators discovered three laptop computers, a magnetic stripe credit card encoder and more than 400 counterfeit credit cards in possession of the defendants in the Miller Lane vicinity of Dayton.
The indictment details that the men rented vehicles in South Florida and traveled throughout various states, including North Carolina, New York, Ohio, Illinois and Michigan.
While traveling, they received FedEx packages from South Florida that contained hundreds of counterfeit American Express, Master Card and Visa credit cards with pre-embossed alias names like “Richard Martin” and “Felipe Mello.” The defendants then encoded information onto the magnetic strips on the counterfeit cards.
The defendants would also secretly install ATM skimming devices and pinhole cameras on commercial ATMs, it is alleged, in order to scan and obtain account names and numbers from unsuspecting credit and debit card holders.
The co-conspirators would allegedly use their counterfeit credit cards to buy clothing, luggage, watches, jewelry, electronics, hotel accommodations, food, rental cars and other associated travel expenses.
They shipped some of the items back to their South Florida counterparts, who in-turn would re-sell them on the internet.
The four defendants – Ricardo C. De Andrade, 38, Sandro L. Trancoso Da Silva, 40, Diego M. Dacosta, 31, and Leonardo W. Targino, 19 – were charged by criminal complaint and arrested last month.
U.S. Attorney Glassman commended the investigation of this case by the U.S. Secret Service and Miami Valley Bulk Smuggling Task Force, as well as Assistant United States Attorney Dwight Keller, 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 MS-13 Members Convicted by Federal Jury in BostonRead the Press Release
BOSTON – A federal jury in Boston convicted four members of MS-13’s Eastside Loco Salvatrucha (ESLS) clique yesterday.
Herzzon Sandoval, a/k/a “Casper,” 36; Edwin Guzman, a/k/a “Playa,” 32; and Erick Argueta Larios, a/k/a “Lobo,” 33, a Salvadoran national illegally residing in the U.S., were found guilty of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. Cesar Martinez, a/k/a “Cheche,” 37, a Salvadoran national illegally residing in the U.S., was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge F. Dennis Saylor IV scheduled Herzzon Sandoval’s sentencing for May 29, 2018; Guzman’s sentencing for May 30, 2018; Cesar Martinez’s sentencing for May 31, 2018; and Argueta Larios’s sentencing for June 1, 2018.
According to court documents, MS-13 was identified as a violent transnational criminal organization whose branches, or “cliques,” operate throughout the United States, including in Massachusetts. MS-13 members are required to commit acts of violence, specifically against rival gang members, to gain membership in and be promoted within the gang. Sandoval and Guzman were the leaders, also known as the “first word,” and “second word,” of the ESLS clique in Massachusetts.
On Sept. 20, 2015, Joel Martinez, a/k/a “Animal,” murdered a 15-year-old boy in East Boston. On Jan. 8, 2016, Joel Martinez was promoted by the gang to “homeboy” status for the 2015 murder with a 13-second beating by other MS-13 members at an ESLS meeting which Sandoval, Guzman, Cesar Martinez and Argueta Larios also attended. Joel Martinez has pleaded guilty to RICO conspiracy and accepted responsibility for the murder and is awaiting sentencing.
The charge of RICO conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. The charge of conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine provides for a minimum mandatory sentence of five years and up to 40 years in prison, four years of supervised release, and a fine of $5 million. Martinez and Argueta Larios will be subject to deportation upon the completion of their sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; Somerville Police Chief David Fallon; and Herndon (VA) Police Chief Maggie A. DeBoard made the announcement.
Four Latin Dragon Nation Members Indicted for RICO Conspiracy Involving Two Murders and Other Shootings in Northwest Indiana and Chicago AreaRead the Press Release
An indictment was unsealed today against four alleged gang members of Chicago’s criminal street gang, Latin Dragon Nation, for RICO conspiracy and related charges, including two murders.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana made the announcement.
According to the indictment, Manuel Diaz, 26, of Hammond, Indiana; Eduardo Diaz-Corral, 20, of Calumet City, Illinois; Ralph Mendez Jr., 22, of Hammond, Indiana; and Joseph Roggenkamp, 20, of East Chicago, Indiana, are alleged to be members of the Latin Dragon Nation. Both Diaz-Corral and Mendez Jr. had their initial court appearances on Feb. 27 and were ordered detained pending detention hearings before U.S. Magistrate Judge John E. Martin on March 2, 2018 at 11:00 a.m. CT. Manual Diaz is scheduled to have his initial appearance on Feb. 28 at 11:00 a.m. CT, before Magistrate Judge Martin.
“Though the Latin Dragon Nation is believed to have originated in Chicago, the indictment unsealed today alleges that the street gang has exported its especially violent brand of criminal conduct to Northern Indiana,” said Acting Assistant Attorney General Cronan. “The Department of Justice and our law enforcement partners are committed to stopping the expansion of violent criminal enterprises like the Latin Dragon Nation, and holding accountable those who terrorize our communities through violence.”
“Street gangs are terrorizing our neighborhoods with senseless violence that effects the daily lives of ordinary, law-abiding citizens,” said U.S. Attorney Kirsch. “As this indictment makes clear, gang activity does not stop at the state line, and neither do our investigations and prosecutions. My office, and the federal, state and local law enforcement agencies with whom we work, will fight tirelessly to combat the senseless violence that results from gang activity. We will never tolerate gang violence and will do everything possible to deter and defeat it.”
The indictment alleges that Diaz, Diaz-Corral, Mendez, and Roggenkamp participated in a criminal enterprise that resulted in the murders of Paul Cruz on Nov. 20, 2016, and Charles Berrios on Sept. 30, 2016, both of whom the defendants believed were members or associates of a rival gang. In addition, according to the indictment the defendants participated in other shootings for the purpose of furthering the goals of the Latin Dragon Nation.
According to the indictment, the Latin Dragon Nation is a street gang that originated in Chicago and spread to other areas, including the Northern District of Indiana. Members and associates of the Latin Dragon Nation allegedly engaged in acts of violence, including murder, attempted murder, battery, aggravated battery, and aggravated assault, witness intimidation, as well as narcotics distribution and other criminal activities.
The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hammond Police Department, the East Chicago Police Department, along with the Chicago and Calumet City, Illinois Police, are investigating the case. The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys David J. Nozick and Dean Lanter of the Northern District of Indiana.
An indictment or superseding indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
Four Latin Dragon Nation Members Indicted for Rico Conspiracy Involving Two Murders and Other Shootings in Northwest Indiana and Chicago AreaRead the Press Release
WASHINTON – An indictment was unsealed today against four alleged gang members of Chicago’s criminal street gang, Latin Dragon Nation, for RICO conspiracy and related charges, including two murders.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana made the announcement.
According to the indictment, Manuel Diaz, 26, of Hammond, Indiana; Eduardo Diaz-Corral, 20, of Calumet City, Illinois; Ralph Mendez Jr., 22, of Hammond, Indiana; and Joseph Roggenkamp, 20, of East Chicago, Indiana, are alleged to be members of the Latin Dragon Nation. Both Diaz-Corral and Mendez Jr. had their initial court appearances on Feb. 27 and were ordered detained pending detention hearings before U.S. Magistrate Judge John E. Martin on March 2, 2018 at 11:00 a.m. CT. Manual Diaz is scheduled to have his initial appearance on Feb. 28 at 11:00 a.m. CT, before Magistrate Judge Martin.
“Though the Latin Dragon Nation is believed to have originated in Chicago, the indictment unsealed today alleges that the street gang has exported its especially violent brand of criminal conduct to Northern Indiana,” said Acting Assistant Attorney General Cronan. “The Department of Justice and our law enforcement partners are committed to stopping the expansion of violent criminal enterprises like the Latin Dragon Nation, and holding accountable those who terrorize our communities through violence.”
“Street gangs are terrorizing our neighborhoods with senseless violence that effects the daily lives of ordinary, law-abiding citizens,” said U.S. Attorney Kirsch. “As this indictment makes clear, gang activity does not stop at the state line, and neither do our investigations and prosecutions. My office, and the federal, state and local law enforcement agencies with whom we work, will fight tirelessly to combat the senseless violence that results from gang activity. We will never tolerate gang violence and will do everything possible to deter and defeat it.”
The indictment alleges that Diaz, Diaz-Corral, Mendez, and Roggenkamp participated in a criminal enterprise that resulted in the murders of Paul Cruz on Nov. 20, 2016, and Charles Berrios on Sept. 30, 2016, both of whom the defendants believed were members or associates of a rival gang. In addition, according to the indictment the defendants participated in other shootings for the purpose of furthering the goals of the Latin Dragon Nation.
According to the indictment, the Latin Dragon Nation is a street gang that originated in Chicago and spread to other areas, including the Northern District of Indiana. Members and associates of the Latin Dragon Nation allegedly engaged in acts of violence, including murder, attempted murder, battery, aggravated battery, and aggravated assault, witness intimidation, as well as narcotics distribution and other criminal activities.
The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hammond Police Department, the East Chicago Police Department, along with the Chicago and Calumet City, Illinois Police, are investigating the case. The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys David J. Nozick and Dean Lanter of the Northern District of Indiana.
An indictment or superseding indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Fort Wayne Man Sentenced to 180 Months ImprisonmentRead the Press Release
FORT WAYNE – Tyrone M. Wright, 41, of Fort Wayne, Indiana, was sentenced before Chief Judge Theresa L. Springmann on his plea of guilty to being a convicted felon in possession of a firearm, announced U.S. Attorney Thomas L. Kirsch II.
Wright was sentenced to 180 months imprisonment and 2 years of supervised release.
According to documents in this case, on March 25, 2015, Wright possessed a firearm after prior felony offenses. Wright was convicted of serious drug offenses or violent felonies in Allen County Superior Court on or about September 24, 2007, and January 3, 2001 and St. Joseph County Superior Court on February 10, 1994. These three felonies qualify him for Armed Career Criminal status with a mandatory minimum sentence of 15 years in prison
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives, the Fort Wayne Police Department and FWPD Vice and Narcotics Division. This case was prosecuted by Assistant U.S. Attorneys Tina L. Nommay and David E. Hollar.
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Former President of Houston-Based Drug Company Convicted in $50 Million Drug Diversion SchemeRead the Press Release
Jerrod Nichols Smith, 48, of Houston, Texas, the former president of Houston-based pharmaceutical company, Cumberland Distribution, Inc. (“Cumberland”), was convicted yesterday by a federal jury in Nashville of conspiracy, 15 counts of mail fraud and one count of making false statements to the U.S. Food and Drug Administration (FDA), announced Donald Q. Cochran, U.S. Attorney for the Middle District of Tennessee.
The charges stemmed from an indictment in January 2013, alleging a 32-month, $50-million-dollar drug diversion scheme. The convictions came after a five-day trial before visiting United States District Judge Billy Wilson. Smith’s co-defendants, Charles Jeffrey Edwards, 56, and Brenda Elise Edwards, 47, both of Houston, previously pleaded guilty to related charges and will be sentenced at a later date.
The evidence at trial established that, from December 2006 through August 2009, Smith and Jeff Edwards purchased millions of dollars of prescription drugs from unlicensed suppliers who had previously purchased the drugs from patients in and around New York and Miami. In most instances, Smith had these drugs shipped to Cumberland’s Nashville warehouse where they were cleaned, sorted, re-packaged, and shipped to independent pharmacies around the country. Generally, the diverted drugs included drugs used to combat HIV/AIDS; antipsychotic medications; anti-depressants; blood pressure medications; diabetes medications and others.
Smith and Jeff Edwards also had drugs shipped from their unlicensed suppliers to shell companies in Louisiana and Arkansas. Although these companies were licensed to sell drugs, Smith and Jeff Edwards used them as pass-through companies to create the appearance that Cumberland was purchasing drugs from licensed suppliers, when, in fact, Cumberland was purchasing diverted drugs from un-licensed suppliers in New York and Miami. The drugs arriving at Smith’s shell companies were forwarded to Cumberland’s Nashville warehouse and re-sold to independent pharmacies.
In order to conceal the drugs’ true origins, Smith and his co-conspirators provided false documentation to Cumberland’s pharmacy customers.
Numerous pharmacies reported problems with drugs they purchased from Cumberland, including prescription drug bottles containing the wrong medicine; the wrong dosage information; and foreign objects inside. At trial, several witnesses testified that at least one bottle of prescription drugs sold by Cumberland contained tic tacs instead of medicine.
On May 14, 2009, the FDA executed a federal search warrant at Cumberland’s Nashville warehouse. Thereafter, in order to evade authorities, Smith and his co-conspirators rented another warehouse, utilized freight forwarding companies to receive drug shipments, set up private email accounts, purchased burner phones and hired a private pilot to fly drugs to Nashville. Their scheme resulted in gross proceeds of over $50 million.
Smith faces up to 20 years in prison and a $250,000 fine for each count of mail fraud. He also faces up to five years in prison and a $250,000 fine for his conspiracy and false statements convictions when he is sentenced later this year.
This case was investigated by the United States Food and Drug Administration Office of Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Henry C. Leventis and Stephanie N. Toussaint.
Former Postal Employee Pleads Guilty to Child Pornography Charges and to Sexually Exploiting a ChildRead the Press Release
BOSTON – A former United States Postal Service (USPS) employee pleaded guilty today in federal court in Worcester to sexually exploiting a child, using USPS computers to access child pornography, and to possessing child pornography.
Stephen Mantha, 62, of Spencer, pleaded guilty to one count of producing child pornography, one count of accessing child pornography, and one count of possession of child pornography. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 24, 2018.
In the summer of 2015, investigators from the USPS Office of Inspector General (OIG) were alerted to suspicious internet searches being conducted on a computer at a Shrewsbury postal facility where Mantha worked as an electronic technician. In August of 2015, agents installed a computer activity recorder, which tracked all computer usage on that computer terminal. Agents were then able to track and record searches, which revealed that Mantha’s search results included images of child pornography. Later, a video camera was installed, and between January and May 2016, agents both recorded and personally observed numerous occasions when Mantha used the USPS computer to conduct searches for, and then view, nude children, partially nude children and child pornography.
On Sept. 21, 2016, a search warrant was executed at Mantha’s residence where numerous thumb drives containing child pornography were recovered. During the review of the materials seized from Mantha’s home, a video was discovered, which had been recorded in approximately 2000 or 2001, depicting Mantha sexually assaulting an approximately seven-year-old boy. That same month, federal agents were able to locate and interview the boy (now an adult), who confirmed the sexual abuse.
In 2000 and 2001, the date of the offense, the charge of sexual exploitation of a child provided for a mandatory minimum of 10 years and no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Although existing penalties for producing child pornography are substantially higher, the Constitution prohibits the government from subjecting individuals to more stringent penalties adopted after their crimes had been committed. The charges of accessing child pornography and possession of child pornography provide for a sentence of up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Eileen Neff, Special Agent in Charge of the United States Postal Service, Office of the Inspector General, Northeast Area Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Spencer Police Chief David Darrin; and Shrewsbury Police Chief James Hester Jr. made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Des Moines Pharmacy Technician Pleads Guilty to Illegally Tampering with FentanylRead the Press Release
DES MOINES, Iowa – A former pharmacy technician pled guilty today in U.S. District Court to tampering with fentanyl by using a syringe to replace the painkiller with another solution.
According to the plea agreement, between September 7, 2016 and October 2, 2016, Victor Van Cleave was employed as a pharmacy technician at Iowa Methodist Hospital in Des Moines, Iowa. During that time, Van Cleave had access to fentanyl - a Schedule II controlled substance - that was stored at the hospital for administration to hospital patients. While employed as described above, Van Cleave tampered with the hospital’s fentanyl and fentanyl vials. In particular, Van Cleave inserted a syringe into multiple fentanyl vials, removed the fentanyl with that syringe, and injected the fentanyl into himself. Using a different syringe, Van Cleave then replaced the fentanyl he had removed from the vials with a different fluid. Van Cleave then placed the tampered vials back into storage at the hospital.
The guilty plea was announced by Marc Krickbaum, United States Attorney for the Southern District of Iowa. The case was investigation by the U.S. Drug Enforcement Administration and U.S. Food and Drug Administration, Office of Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Bradley D. Price.
Van Cleave, 29, is scheduled to be sentenced before Chief United States District Judge John A. Jarvey on July 10, 2018, at 1:30 pm.
Former Army Contractor Indicted for "No Show" Job Involving Contract at Aberdeen Proving GroundRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland –A federal grand jury has indicted Eric D. Price, age 58, of Fayetteville, North Carolina for conspiracy to defraud the United States and wire fraud charges related to payments to him for a "no show" job on a sub-contract under contracts awarded by the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the seven-count indictment, in March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. Task Orders 11, 77 and 115 were placed against this contract. John Kays had a leadership position as a civilian employee of the Army related to these task orders.
Matthew Barrow was the President and owner of MJ-6, LLC, a company which he and his wife formed in Ohio in 2008 to obtain military subcontracts. John Kays steered business on Task Orders 77, 11, and 115 to MJ-6.
According to the indictment, Kays and Barrow agreed that Price would be added to the MJ-6 payroll. Price's job was purportedly to directly support Kays. Price purportedly worked remotely at Fayetteville, North Carolina while Kays worked at APG. From February 2010 thru February 2012, Price allegedly fraudulently received more than $100,000 in salary payments for a "no show" job at MJ-6 for which MJ-6 billed over $400,000 to the prime contractor, which was passed through to the United States Army. Kays certified and approved MJ-6's work, including Price's "no show" job. To facilitate the “no show” job, Price allegedly submitted false and fictitious status reports and invoices through MJ-6 to the prime contractor.
Price faces a maximum sentence of 5 years in prison for the conspiracy; and 20 years in prison for each wire fraud count. An initial appearance has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
In connection with a larger bribery scheme involving John Kays and Barrow, Barrow pleaded guilty to paying John Kays and his wife Danielle Kays, also a government official, bribes of approximately $800,000, including $500,000 in cash. John Kays pleaded guilty to receiving bribes of approximately $800,000 from Barrow. John Kays' sentencing proceeding is scheduled for April 3, 2018, at 9 am before Judge Catherine C. Blake. Barrow's sentencing is set for April 20, 2018, at 2 pm before Judge George L. Russell, III. Danielle Kays is presently serving an 18 month sentence; she pleaded guilty to conspiracy to defraud the United States and bribery. John Kays, Danielle Kays, and Matthew Barrow all graduated from West Point where they were classmates.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
Acting United States Attorney Stephen M. Schenning commended the DCIS, Army Criminal Investigation Command, and FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case.
Edmond Woman Sentenced to 37 Months in Prison for Embezzling over $450,000 and Filing a False Tax ReturnRead the Press Release
OKLAHOMA CITY – Kay Ann Locke, of Edmond, Oklahoma, has been sentenced to 37 months in federal prison for stealing nearly half a million dollars from her employer and filing a false federal tax return, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to charges filed on June 14, 2017, Locke worked as a bookkeeper at Delta Promotions Team Corporation in Oklahoma City from 2005 until April 2016. In 2011, she was instructed to close a company credit card. She kept the credit card open, however, and used it and another company credit card for personal purchases and cash advances totaling approximately $454,824.69. She then committed wire fraud by using company funds to pay these credit card bills.
Locke was also charged with filing a false 2015 personal federal income tax return. That return reported less than $30,000 of total income. She knew when she signed the return that her income was substantially higher based on the money she had embezzled from her employer.
Locke pleaded guilty to both charges on July 27, 2017.
Today U.S. District Judge David L. Russell sentenced Locke to 37 months in prison, to be followed by three years of supervised release. The court also ordered her to pay $552,667.64 in restitution, which will be paid first to her former employer and then to the IRS.
This case is the result of an investigation by the Oklahoma City Economic and Identity Crimes Task Force, which includes the United States Secret Service, the FBI, IRS–Criminal Investigations, Homeland Security Investigations, the U.S. Postal Inspection Service, the Oklahoma Highway Patrol, the Oklahoma City Police Department, the Edmond Police Department, the Moore Police Department, and the Norman Police Department. Assistant U.S. Attorney Chris M. Stephens prosecuted the case.
East Bay Cocaine Trafficker Sentenced to More Than Seven Years in PrisonRead the Press Release
OAKLAND – Antonio Avila was sentenced today to seven years and three months in prison for his role in a conspiracy to distribute and possess with intent to distribute cocaine announced Acting United States Attorney Alex G. Tse and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
Avila, 37, of Oakland, pleaded guilty on September 13, 2017. As part of this plea agreement, Avila admitted that on March 31, 2017, he delivered approximately two kilograms of cocaine to an undercover law enforcement officer as part of a previously arranged cocaine deal. Avila drove in a Honda Accord to a pre-arranged location with his co-defendant, Enrique Diaz Santiago, 42, of Oakland, sitting next to him in the front passenger’s seat of the car. Avila brought two kilograms of cocaine, which was stored inside a backpack in the backseat of the car. When Avila and Santiago arrived at the location for the deal, the undercover officer approached the defendants and asked them for the cocaine. Avila asked the undercover officer if he had the money. Shortly thereafter, law enforcement authorities arrested Avila and Santiago, and seized the two kilograms of cocaine from the backpack in the rear of the car.
In a subsequent search of Avila’s apartment, the following items were found: a .380 caliber semi-automatic Ruger handgun, a box of .380 caliber ammunition containing approximately 44 round, approximately one kilogram of cocaine, a digital scale with white residue on it, eight plastic baggies containing a total of 218 grams of methamphetamine, and a money counter. As part of his plea agreement, Avila has acknowledged that all the items belonged to him.
On June 15, 2017, a federal grand jury indicted Avila and Santiago. Both defendants were charged with two counts: (1) conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, in violation of 21 U.S.C. §§ 846 and 841(a)(1)(B), and (2) possession with intent to distribute 500 grams or more of cocaine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B). Both defendants pleaded guilty to the conspiracy count and the substantive possession count was dismissed.
In addition to the prison term, Judge White sentenced Avila to a four-year period of supervised release.
For his role in the scheme, Santiago pleaded guilty to the conspiracy count on September 13, 2017. On January 23, 2017, the Judge White sentenced Santiago to five years in prison and a four-year term of supervised release. Both Avila and Santiago have been in custody since their arrests on March 31, 2017.
Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case with the assistance of Theresa Benitez. The prosecution is the result of an investigation by HSI, the Alameda County Narcotics Task Force, and the California Highway Patrol.
Duo Charged with Conspiracy to Commit Health Care Fraud and Conspiracy to Solicit and Pay KickbacksRead the Press Release
John Montgomery, 58, of Exton, PA and Alfredo Lopez, M.D., 47, of Indianapolis, Indiana, were indicted on charges of Conspiracy to Commit Health Care Fraud and Conspiracy to Solicit and Pay Kickbacks, announced United States Attorney Louis D. Lappen. As alleged in the indictment, the defendants contracted with primary care physicians, chiropractors and podiatrists across the United States to provide nerve conduction testing in the provider’s office. Defendants Montgomery and Lopez offered the providers financial incentives to induce them to order nerve conduction tests for patients in their practice, which the defendants provided, and for which they obtained payments from Medicare. According to the indictment, from January 2006 through January 2013, the defendants caused the submission of least approximately $4.1 million of fraudulent claims to Medicare for nerve conduction tests that did not meet Medicare’s coverage criteria and established standards of care for such testing. The defendants are alleged to have caused Medicare to incur losses of at least approximately $ 679,214 during the period charged in the indictment.
If convicted the defendants face a maximum possible sentence of 15 years imprisonment; three years of supervision after release from prison; fines of 500,000; and a special assessment of $200.
The case was investigated by Health and Human Services – Office of Inspector General and is being prosecuted by Assistant United States Attorneys M. Beth Leahy and Jennifer B. Jordan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Drug Trafficker Sentenced to over 15 Years in Prison for Heroin and Fentanyl ConspiracyRead the Press Release
BOSTON – The leader of a heroin and fentanyl trafficking organization that operated in Taunton was sentenced yesterday in federal court in Boston.
Fernando Hernandez, 43, who last resided in Providence, R.I., was sentenced by U.S. District Court Judge Leo T. Sorokin to 188 months in prison and three years of supervised release. On Nov. 6, 2017, Hernandez pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. In February 2017, Hernandez was arrested and charged along with 22 co-defendants.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston, one allegedly led by Jose Antonio Lugo-Guerrero, and the other led by Hernandez. Hernandez’s organization was based in Taunton and sold heroin and fentanyl to customers who re-distributed a portion of the drugs they obtained. It is alleged that Hernandez obtained drugs from a network of suppliers that included Lugo-Guerrero.
The court found that Hernandez was responsible for distributing more than a kilogram of heroin over a two-month period in the summer of 2016, and that he was the leader of the organization that involved more than five other participants.
Hernandez has a number of prior criminal convictions that include two drug possessions, four drug distributions, eight assaults, three threats, two abuse prevention act violations, and one kidnapping.
Lugo-Guerrero has pleaded not guilty. His trial is scheduled for Sept. 10, 2018.
United States Attorney Andrew E. Lelling; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Fall River Police Chief Albert F. Dupere; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; Bridgewater Police Chief Christopher Delmonte; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dr. Pepper Executive Pleads Guilty to Fraud, Tax Evasion ChargesRead the Press Release
PROVIDENCE, RI – A national sales executive for Dr. Pepper/Seven Up, Inc., a subsidiary of Dr. Pepper Snapple Group (Dr. Pepper), today pleaded guilty to charges that he submitted more than $1.7 million dollars worth of fraudulent invoices to Dr. Pepper through a promotions and marketing company he formed in his wife’s name.
Appearing in U.S. District Court in Providence, R.I., Michael Lynch, 52, of Newport, R.I., admitted to the Court that in April 2003, he incorporated Seacoast Unlimited Marketing and Promotions, LLC (Seacoast) in his wife’s name, and through Seacoast, from January 2007 until November 29, 2017, submitted to Dr. Pepper more than 200 fraudulent invoices totaling $1,716,949 for services such as promotional signs and banners, delivery of sample products to retail stores and the offering of discount prices to retail stores. None of the services billed to Dr. Pepper through Seacoast and paid for by Dr. Pepper were provided.
Lynch also admitted to the Court that he failed to declare any of the income he derived through Seacoast on the joint federal tax filings he filed with his wife. The tax loss applicable to the defendant’s conduct totals $386,320.
Michael Lynch’s guilty plea to wire fraud and filing a false tax return is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the FBI Boston Division Harold H. Shaw and Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation.
Lynch is scheduled to be sentenced by United States District Court Chief Judge William E. Smith on June 1, 2018. Wire fraud is punishable by statutory penalties of up to 20 years imprisonment and a fine of $250,000. Filing a false tax return is punishable by statutory penalties of up to 3 years imprisonment and a $100,000 fine.
The matter, investigated by the FBI and IRS Criminal Investigation, is being prosecuted by Assistant U.S. Attorney Lee H. Vilker. .
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Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to illegally reentering the United States after being deported.
Amaury Olivo-Rodriguez, 39, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge William G. Young scheduled sentencing for June 4, 2018.
On April 26, 2017, law enforcement officers in Lawrence encountered Olivo-Rodriguez and determined him to be illegally present in the United States. Olivo-Rodriguez has been deported twice before.
In March 2009, while Olivo-Rodriguez was serving a sentence in New Hampshire for drug distribution, federal agents determined him to be illegally present in the United States. Upon completion of his sentence, Olivo-Rodriguez was placed into removal proceedings, and on June 30, 2010, Olivo-Rodriguez was deported to the Dominican Republic.
In January 2012, Olivo-Rodriguez was encountered by federal agents while attempting to reenter the United States. He was convicted of illegally reentering the country and sentenced to 37 months in prison. Upon completion of this sentence, Olivo-Rodriguez was again deported to the Dominican Republic.
Olivo-Rodriguez faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Doctor Sentenced to 48 Months in Prison for Selling Prescriptions of Suboxone and KlonopinRead the Press Release
PHILADELPHIA – Dr. Alan Summers, 79, of Ambler, PA, was sentenced today in the United States District Court for the Eastern District of Pennsylvania by the Honorable Lawrence F. Stengel to 48 months in prison, followed by 2 years supervised release. Summers was also ordered to pay $14,000 in restitution, $4.6 million in restitution and a $1700 special assessment.
Dr. Summers sold commonly abused prescription drugs in exchange for cash payments. Dr. Summers previously pleaded guilty to conspiracy to distribute controlled substances, distribution of controlled substances, health care fraud, and money laundering, and was announced by United States Attorney Louis D. Lappen, Special Agent-in-Charge Jonathan A. Wilson of the Drug Enforcement Administration and Special Agent-in-Charge, Maureen Dixon with Health and Human Services Office of Inspector General.
Dr. Summers operated a medical clinic on South Broad Street in Philadelphia, and sometimes operated under the business name “NASAPT” (National Association for Substance Abuse-Prevention & Treatment). Dr. Summers employed numerous other doctors, including co-defendants Dr. Azad Khan and Dr. Keyhosrow Parsia. The defendants sold prescriptions for Suboxone and Klonopin in exchange for cash payments. Suboxone is a brand name for a drug used to treat opiate addiction. None of the defendants conducted medical examinations or mental health examinations as required by law in order to legally prescribe these controlled substances. Dr. Summers also assisted his customers in obtaining health insurance benefits for these illegally prescribed controlled substances by providing false information to health insurance companies so that his customers could fill the prescriptions using their health insurance. Many of the customers who frequented this clinic were, in fact, drug dealers or drug addicts who sold the prescribed medications. During the duration of the conspiracy, Dr. Summers illegally sold over $5 million worth of controlled substances.
“Dr. Alan Summers cared more for his financial gain, than his oath as a doctor,” said United States Attorney Louis D. Lappen. “His actions helped fuel the opioid epidemic and the illegal distribution of prescription drugs. Today’s sentence should serve as a powerful deterrent to those medical professionals who might consider risking their careers and liberty for illegally profiting on the drug trade. Our office along with our local, state and federal law enforcement partners will continue to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.”
“Dr. Summers was responsible for the illegal distribution of millions of dollars of prescription drugs that are commonly used to treat opioid addiction, and did so solely for profit,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “As part of the U.S. Attorney’s Office new law enforcement opioid task force, the DEA will aggressively continue to identify and investigate the doctors that are contributing to the opioid crisis affecting our region through their criminal acts.”
The case was investigated by the Drug Enforcement Administration, the Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service Criminal Investigations, with assistance from the Philadelphia Police Department and the Pennsylvania Bureau of Narcotics Investigations. It is being prosecuted by Assistant United States Attorney Robert Livermore.
Doctor Pleads Guilty to Heath Care Fraud and Opioid Diversion ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Charles J. Gartland, D.O., age 59, of Cochranville, Pennsylvania, pleaded guilty today before United States Magistrate Judge Susan E. Schwab to one count of health care fraud and one count of obtaining possession of a controlled substance by deception.
According to United States Attorney David J. Freed, Gartland perpetrated a scheme to defraud two health care benefit programs, WellSpan Health of York, PA and Medicare, by writing 221 prescriptions between September 2014 and August 2017, for Hydrocodone, Oxycodone, Fentanyl, Morphine and other controlled substances. The prescriptions were issued by Gartland under the names of three of his family members. Of the 221 prescriptions, 194 were for 17,187 Hydrocodone-Ibuprofen 7.5 -200 mg pills.
The prescriptions were never intended for the medical care or treatment of the family members, but instead were intended for Dr. Gartland’s personal use. As such, the prescriptions were outside the scope of professional medical practice and were not issued for a legitimate medical purpose.
Gartland filled the prescriptions at five pharmacies in York, Chester and Lancaster Counties. It’s alleged that Gartland deceived the pharmacies into giving him the pills by making them believe they were intended for his family members. WellSpan and Medicare were allegedly defrauded when they paid claims submitted by the pharmacies for the prescriptions.
Judge Schwab released Gartland on supervised release pending completion of a Pre-Sentence Report. No date has yet been set for sentencing.
The case is being investigated by the Harrisburg Offices of the Drug Enforcement Administration, the U.S. Department of Health and Human Services, Office of the Inspector General, and the Pennsylvania Department of State Bureau of Enforcement and Investigation. Assistant U.S. Attorney Kim Douglas Daniel is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Health Care Fraud is punishable by up to 10 years’ imprisonment and a $250,000 fine. Obtaining Possession of a Controlled Substance by Deception is punishable by up to four years’ imprisonment and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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