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6 April 2018
Maryland Man Sentenced to 20 Years in Prison for Sexually Abusing 13-Year-Old GirlRead the Press Release
WASHINGTON – Mark Chuvala, 41, of Berlin, Md., was sentenced today to 20 years in prison for sexually abusing a former teenage piano student, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Chuvala was found guilty by a jury on Jan. 30, 2018 of four counts of first-degree child sexual abuse, three counts of second-degree child sexual abuse, one count of indecent sexual proposal to a minor, one count of misdemeanor sexual abuse of a child, and one count of use of a minor in a sexual performance. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Ronna L. Beck. Following his prison term, Chuvala will be placed on 10 years of supervised release. He also will be required to register as a sex offender for 10 years.
According to the government’s evidence, Chuvala was the victim’s piano teacher in 2011 at Middle C Music in the Tenleytown neighborhood of Northwest Washington. At the time of the lessons, Chuvala was 34, and the student was 13 years old. When the lessons had concluded, Chuvala asked the girl to stay in touch, and they began a relationship over text communications.
The two got together a few days later and walked to a park in Montgomery County, Maryland, where Chuvala kissed the girl and engaged in the first sexual contact with her. Chuvala has pled guilty in Montgomery County to three counts of third-degree sex offense for this conduct, and is awaiting sentencing there on April 9, 2018.
Shortly after they got together in Montgomery County, Chuvala and the girl met on at least two occasions in the middle of the night in Washington, D.C. During those two incidents, Chuvala performed oral sex on the victim and had her perform oral sex on him, among other sexual conduct. After these sexual encounters, Chuvala and the victim continued to exchange numerous texts with each other at all hours of the day and night. When Chuvala moved from the Washington, D.C. area, he engaged in conversations with the girl over video Skype, in which he would ask her to undress, masturbating as he watched her, and would ask her to masturbate.
In the spring of 2012, the victim first disclosed the abuse to a friend, and her friend told a school counselor. The counselor notified law enforcement, and the Metropolitan Police Department (MPD) opened an investigation. However, the victim was not ready to go forward with a police investigation at the time, and persuaded her parents not to provide the abuser’s name to police. Ultimately, in the fall of 2014, the victim decided that she was prepared to go forward with a police investigation. The investigation led to Chuvala’s arrest on June 24, 2015. Following the verdict, the judge ordered that he be placed in custody pending sentencing.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham praised the work of detectives from the Metropolitan Police Department’s Youth and Family Services Division. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key and Brenda Williams, Victim/Witness Advocate Veronica Vaughan, Investigative Analyst William Hamann, and Litigation Technology Specialist Anisha Bhatia. Finally, they commended the work of Assistant U.S. Attorneys Elana Suttenberg and Nicholas Miranda, who investigated and prosecuted this case.
Maryland Man Sentenced for Dogfighting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to 10 years in prison for his role in a conspiracy to engage in dogfighting, as well as a separate role as a ringleader in a credit card fraud and identity theft scheme.
According to court documents, Rodriguez Rodney Lomax Norman, 31, was fully immersed in the world of dog fighting in the D.C.-Maryland-Virginia area. Norman and his associates bred, trained, and exhibited dogs in organized fights where animals suffered severe bites, gashes, and other injuries, and were expected to fight nonetheless. When law enforcement searched Norman’s Maryland and D.C. properties in August 2017, they found over a dozen dogs, an animal treadmill, heavy dog chains, shock collars, lunge whips, performance-enhancing animal pharmaceuticals, and medical supplies like syringes and skin staplers.
“Dog fighting is a crime marked by brutality and cruelty,” said Acting United States Attorney Tracy Doherty-McCormick. “Those who choose to brutalize animals for entertainment, sport, and profit must know that their criminal conduct will be severely punished. This complex investigation was a success due to the expertise and skill of our investigative partners. I want to thank them for their outstanding work on this important case.”
In court documents, Norman admitted that also found on his Maryland property was a fighting ring that bore traces of animal blood, and a noose-like contraption that was apparently put on a dog’s neck and used to hang him to build muscle. Norman continued to fight his dogs for years after law enforcement officials first contacted him about dog fighting, even though he knew that doing so was illegal.
“Dog fighting is a barbaric spectacle that has no place in any civilized society,” said Andrew W. Vale, Assistant Director in Charge of the FBI's Washington Field Office. “Today’s sentencing highlights our continuing efforts to investigate and prosecute organized crime, and those who seek to profit from the abuse and suffering of helpless animals.”
In separate criminal activity, Norman helped organize and lead a conspiracy where for over two and a half years, members purchased thousands of stolen credit and debit card numbers, encoded those numbers onto fraudulent credit cards, and used those cards to buy merchandise including gift cards and cartons of cigarettes. During the conspiracy, the group made hundreds of thousands of dollars from selling cigarette cartons to buyers from New York City.
Norman was sentenced today to 108 months in prison for his role as a ringleader in the credit card fraud and identity theft scheme, and 12 months in prison for dogfighting. He was also ordered to forfeit $143,605.
Norman is one of 12 defendants who were arrested in the credit card fraud and identity theft case in August 2017 (and the only defendant charged with dogfighting). All pleaded guilty and have now been sentenced.
Name, Age
Hometown
Convictions
Sentence
Rodriguez Norman, 31
Temple Hills, Maryland
Conspiracy to Engage in an Animal Fighting Venture;
Conspiracy to Commit Bank and Wire Fraud, Conspiracy to Traffic in Contraband Cigarettes, Aggravated Identity Theft
120 months
Travon Williams, 33
Portsmouth
Conspiracy to Commit Bank and Wire Fraud, Conspiracy to Traffic in Contraband Cigarettes, Aggravated Identity Theft
108 months
Jamar Johnson, 31
Portsmouth
Conspiracy to Commit Bank and Wire Fraud, Aggravated Identity Theft
84 months
Nathaneal Williams, 25
Manassas
Conspiracy to Commit Bank and Wire Fraud, Conspiracy to Traffic in Contraband Cigarettes, Aggravated Identity Theft
84 months
Marvin Mitchell, 33
Virginia Beach
Conspiracy to Commit Bank and Wire Fraud, Aggravated Identity Theft
Awaiting sentencing
Ashley Carrillo Howell, 34
Bowie, Maryland
Conspiracy to Commit Bank and Wire Fraud, Aggravated Identity Theft
70 months
Gentle Tyson, III, 33
Virginia Beach
Conspiracy to Commit Bank and Wire Fraud, Aggravated Identity Theft
25 months
Ebony Coe, 29
Virginia Beach
Conspiracy to Commit Bank and Wire Fraud, Aggravated Identity Theft
25 months
Ronnie Beale, 33
Fort Washington, Maryland
Conspiracy to Commit Bank and Wire Fraud
14 months
Ryan McNeil, 32
District Heights, Maryland
Conspiracy to Commit Bank and Wire Fraud
14 months
Eugene Cuffee, 34
Norfolk
Conspiracy to Commit Bank and Wire Fraud
12 months
Denae Horton, 25
Chesapeake
Conspiracy to Commit Bank and Wire Fraud
2 months
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Maya D. Song, Whitney Russell, and Katherine Rumbaugh prosecuted the case, with significant assistance from Assistant U.S. Attorney Gordon D. Kromberg and former Special Assistant U.S. Attorney Evan N. Turgeon.
The Manassas Park Police, Fairfax County Police, and Arlington County Police provided significant assistance during this investigation.
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 Nos. 1:17-cr-214, 226, 227, 240, 252, 251, 254, 312.
Maryland Man Pleads Guilty to Federal Charges in Fraudulent Billing Scheme Targeting D.C. Public SchoolsRead the Press Release
WASHINGTON – Charles E. Scott, Jr., a vendor who claimed to be providing tutoring and mentoring services for students with special needs, pled guilty today to federal charges stemming from a scheme in which he collected more than $75,000 from the District of Columbia Public Schools for work that never was performed.
The announcement was made by U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Scott, 38, of Baltimore, Md., pled guilty in the U.S. District Court for the District of Columbia to mail fraud and identity theft. Mail fraud carries a statutory maximum of 20 years in prison and identity theft carries a statutory maximum of 15 years. Both charges carry potential financial penalties. Under federal sentencing guidelines, Scott could face a sentence of 15 to 27 months in prison and a fine. The plea agreement also requires him to pay $75,398 in restitution to the District of Columbia Public Schools and an identical amount in a forfeiture money judgment. The Honorable Rudolph Contreras scheduled sentencing for July 5, 2018.
According to a statement of offense filed as part of the plea, the scheme took place from approximately February 2013 through December 2013. During that time, Scott submitted invoices, timesheets and other documents to the Office of Special Education, a component of the District of Columbia Public Schools (DCPS). The Office of Special Education manages the school system’s Compensatory Education Program.
The Compensatory Education Program awards services to eligible students to assist with their educational needs and development. Students awarded compensatory education services have learning, mental, and/or behavioral disabilities that create an educational barrier that prevents them from reaping the full benefits of education. Services consist of tutoring, individualized education, monitoring, speech therapy, occupational therapy, and behavioral and psychological analysis. Once DCPS approves specific services, parents or guardians receive letters specifying the services that can be provided and it is up to the parent or guardian to identify an independent provider to perform the authorized services.
Scott’s invoices included the names and dates of birth for 10 minor children for whom he claimed to have performed services. The accompanying timesheets included what purported to be the signatures of the parents or guardians whose children had purportedly received the services as well as the signatures of the tutors who supposedly did the work. Nearly all of what purported to be signatures of the parents and guardians were forged. Tutors’ signatures also were forged.
Scott did not have permission to use the names and dates of the children listed on his invoices and did not have approval from parents or guardians to sign their names.
All told, Scott obtained a total of $75,398 for services that were never performed. In addition, the District of Columbia disputed and never paid him for $20,314 worth of invoices and timesheets that he submitted for services that never were performed.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge Vale, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas, who is handling forfeiture issues, Assistant U.S. Attorney Adrienne Dedjinou, and Paralegal Specialists Joshua Fein, Aisha Keys, and Kristy Penny. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who is prosecuting the case.
Man Sentenced for Defrauding Investors of over $5 MillionRead the Press Release
ALEXANDRIA, Va. – A Florida man was sentenced today to four years in prison for defrauding investors in his company of more than $5 million.
According to court documents, David Webb, 59, of North Palm Beach, made false statements to more than 70 investors from Virginia and other states. Webb told them that he had a very successful government contracting business, G4i Capital Partners, and that he would only use the investors’ money to pay subcontractors between the times when contracts were awarded and when the government started to pay invoices. Webb also told the investors that their investments were safe. Webb claimed that if his company failed, a trustee would collect the money the government owed for the work already done and repay the investors. Webb provided many false documents and emails to support his fraud scheme. In fact, Webb used later investors’ money to make “interest” payments to earlier investors. Webb lent a large portion of the money to a friend who was trying unsuccessfully to start his own government contracting business. Finally, Webb paid himself a salary and used other money collected from investors on various personal expenses. Webb’s company never obtained a single government contract.
In addition to the prison sentence, Webb was ordered to pay full restitution to his victims and sentenced to three years of supervised release.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Jack Hanly and Grace L. Hill 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. 1:17-cr-46.
Lockport Man Sentenced on Oxymorphone and Marijuana ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Troy Gillon, Jr., 25, of Lockport, NY, who was convicted of possession with intent to distribute, and distribution of, oxymorphone, possession with intent to distribute THC and marijuana, and maintaining a drug-involved premises, was sentenced to 18 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on three separate occasions between October 26 and November 29, 2016, the Drug Enforcement Administration conducted controlled purchases of oxymorphone from the defendant. On December 16, 2016, a federal search warrant was executed at the Gillon’s residence on Dysinger Road in Lockport. Agents recovered 95 vials and five mason jars containing marijuana, eight oxycodone tablets, 113 marijuana tablets, various marijuana chocolate chip cookies and gummy bears. In addition to the drugs, two packages of clear plastic baggies for drug distribution, a drug ledger containing drug distribution transactions, three digital scales, six cellular telephones, a Micro SD sim card, a 14-karat gold diamond bracelet, and $2,243.65 in U.S. currency. The money and bracelet were acquired as illegal drug sales proceeds. The drugs seized from the house were for distribution in the community and the defendant maintained his home as a drug premises.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Lockport Police Department, under the direction of Chief Michael Niethe.Kansas Man Pleads Guilty to Charges Related to the Sexual Exploitation of Children in Southeast AsiaRead the Press Release
A 71-year-old Kansas native who was residing in Panama pleaded guilty today to use of sexually explicit depictions of a minor for importation into the United States, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
Jebediah Dishman, of Fredonia, Kansas, pleaded guilty to an information charging him with use of sexually explicit depictions of a minor for importation into the United States before U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas. Sentencing is set for July 6.
Dishman was arrested in Houston on Nov. 8, 2016, on a criminal complaint. On Feb. 1, 2017, a grand jury in the U.S. District Court for the Southern District of Texas indicted him on one count each of engaging in illicit sexual conduct with a minor in a foreign country, production of child pornography, sex trafficking of children, and obtaining custody and control of a minor for the purpose of producing sexually explicit visual depictions of the minor.
According to admissions made in conjunction with a plea agreement, in September 2014, Dishman began an approximately six-month trip to several countries in Southeast Asia. During his trip to Indonesia, another tourist observed Dishman engaging in suspicious interactions with minors, masturbating while watching minors, and using a tablet to take photographs of a three-year-old German child. The tourist confronted Dishman, seized his tablet, and turned it over to local authorities. U.S. authorities later reviewed the tablet pursuant to a search warrant and discovered sexually explicit images of minors, including of the German child, as well as Internet searches indicating an interest in the sex trafficking of minors in Southeast Asia.
The FBI is investigating this case with the cooperation of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorneys James E. Burke IV and William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Sherri Zack of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Elly Peirson of the Central District of Illinois, previously on detail at CEOS, also served as a vital member of the prosecution team at earlier stages of the litigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Continues Enforcement Actions Across the Country to Stop and Punish Dishonest Tax Return PreparersRead the Press Release
With the tax season in full swing, the Justice Department warns taxpayers to avoid unscrupulous tax return preparers who seek to harm taxpayers, and also reminds taxpayers that they could still be responsible for any unpaid taxes, penalties, and interest, resulting from errors made on their returns.
In the last year, the Justice Department’s Tax Division, in collaboration with U.S. Attorney’s Offices, filed dozens of civil and criminal actions throughout the United States seeking court orders to shut down tax return preparers who allegedly prepared false tax returns and to punish dishonest tax return preparers for their fraudulent activities.
“The Tax Division will continue to protect the American public by holding fraudulent tax return preparers accountable,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “The Justice Department is committed to working with the IRS to stamp out this fraud.”
In the past decade, the Tax Division has obtained convictions and injunctions against hundreds of unscrupulous return preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Examples of some of the criminal convictions obtained by the Tax Division in the last year include:
- In January 2018, a Kansas City, Kansas tax return preparer was sentenced to 96 months in prison for preparing income tax returns for clients that reported false business income and losses, medical and dental expense deductions, job-related expenses, charitable donations, and other fraudulent items.
- In August 2017, a Gulfport, Mississippi tax return preparer was sentenced to 48 months in prison for obstructing the internal revenue laws and aiding in the preparation of a false tax return. She ran a home-based tax return preparation business where she instructed several of her clients, who owed income taxes to the IRS, to write payment checks directly to her rather than to the IRS. She kept these funds for herself and used the money to gamble at local casinos. Typically, she provided copies of accurate returns to her clients, but then did not file any return with the IRS.
- In April 2017, a San Diego, California tax return preparer was sentenced to 37 months in prison for preparing fraudulent tax returns. She prepared fraudulent returns for her clients that reported fake business losses, charitable contributions, and medical, dental, education and unreimbursed employee expenses. In total, her conduct caused a tax loss of more than $1.2 million.
Examples of some of the civil injunctions obtained by the Tax Division in the last year include:
- In October 2017, a federal court in Houston, Texas permanently enjoined a woman and a corporation from preparing federal tax returns for others. According to the government’s complaint, the woman, through her business, routinely prepared federal tax returns for customers that reported false expense deductions, as well as false claims for education tax credits and improper dependents.
- In September 2017, a federal court in Detroit, Michigan permanently barred a tax return preparation company and its owner from operating a tax return preparation business and preparing federal tax returns for others. The owner prepared tax returns with false income and expenses, bogus dependents, improper filing statuses, and false itemized deductions, all with the purpose of fraudulently maximizing customer refunds and refundable credits, according to the government’s complaint.
- In July 2017, a federal court in New York permanently enjoined the owners and their multiple businesses from preparing federal tax returns for others. The owners prepared federal tax returns for customers that contained false or erroneous claims for education tax credits, fuel tax credits, and the Earned Income Tax Credit, according to the government’s complaint.
When return preparers violate these civil injunction orders, the Tax Division is committed to holding them responsible:
- In December 2017, a Louisiana woman, who continued to file returns even after a federal judge permanently enjoined her from preparing returns, was sentenced to seven years in prison for filing fraudulent income tax returns. She filed returns that included fake business losses, deductions, and tax credits in order to fraudulently increase her clients’ refunds.
- In November 2017, a federal court in Florida found a woman in contempt of the court’s injunction barring her from preparing tax returns for others. The court ordered her to pay the government $11,572.57 as a sanction for costs incurred investigating her contempt.
- In May 2017, a federal court in Maryland found that a man had violated the court’s previous permanent injunction barring him from preparing tax returns for others and from operating a tax preparation business. The court ordered that he comply with the previously entered injunction and that he pay the United States $29,914.38 for its costs incurred investigating whether he had complied with the injunction.
Tax return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on its website about selecting a return preparer and has launched a free directory of federal tax preparers. Also, the IRS has a list of steps on its website that you can take now in anticipation of filing your 2017 federal income tax return and ten tips for choosing a tax preparer.
Jury Convicts Springfield Man of $1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Springfield, Mo., man was convicted by a federal trial jury today of his role in a conspiracy to distribute more than $1 million worth of methamphetamine in southern Missouri and in the Kansas City, Mo., area.
Michael Ryan Nevatt, 28, of Springfield, was found guilty of all seven counts contained in a Nov. 17, 2016, federal indictment. Nevatt was found guilty of conspiracy to distribute methamphetamine, conspiracy to possess firearms in furtherance of drug trafficking, possessing firearms in furtherance of drug trafficking, conspiracy to commit money laundering, and three counts of money laundering.
Evidence introduced during the trial indicated that Nevatt participated in a conspiracy to distribute methamphetamine from Jan. 1, 2014, to Nov. 17, 2016. Co-defendant Kenneth Lake, 56, of Strafford, Mo., was the original head of the organization, coordinating vehicle transport shipments of methamphetamine from a Mexican cartel source in Texas to Springfield. Conspirators in Springfield divided the methamphetamine for distribution to the Lebanon, Mo., and Kansas City, Mo., areas. Lake has pleaded guilty to his role in the drug-trafficking conspiracy.
Nevatt subsequently became the head of the organization. Nevatt and other conspirators made regular trips, and sometimes travelled several times a week, to pick up multiple-pound supplies of methamphetamine. For example, Nevatt traveled to Texas regularly to pick up 10 pounds of methamphetamine and bring it back to Springfield. Nevatt would later return to Texas with approximately $100,000 in cash to pay for it. On one occasion, Nevatt met sources in Dallas, Texas, to purchase 40 pounds of methamphetamine. Mexican sources also delivered multiple-pound shipments of methamphetamine by truck or car to Springfield.
Nevatt was stopped by Springfield police officers on one occasion while operating a motorcycle without a valid motorcycle endorsement or insurance. Officers seized $66,960 in the saddle bag of the motorcycle. On another occasion, Springfield police officers seized $97,390 from a hotel room rented in Nevatt’s name, which was occupied by his girlfriend and Lake.
Nevatt is among 15 defendants charged in the indictment; 13 have pleaded guilty and one has been sentenced.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for just short of three hours before returning the guilty verdicts to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, April 2, 2018.
Under federal statutes, Nevatt is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades and Special Assistant U.S. Attorney Ashleigh Ragner. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, the Internal Revenue Service, the Buchanan County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the U.S. Postal Inspection Service and the Central Oklahoma Metro Interdiction Team.
Jury Convicts KC Man of Drug Trafficking, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was convicted by a federal trial jury today of drug-trafficking and illegally possessing a firearm.
Robert L. White, 46, of Kansas City, was found guilty of all 16 counts contained in a July 19, 2016, federal indictment. White was found guilty of nine counts of distributing crack cocaine, three counts of possessing crack cocaine with the intent to distribute, one count of possessing cocaine with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of a firearm.
On two occasions in 2013, White was arrested in a traffic stop and officers found crack cocaine either on him or in his vehicle. On nine occasions in 2016, White distributed crack cocaine to sources who were cooperating with a law enforcement investigation.
On June 6, 2016, White was arrested after Kansas City police officers attempted to conduct a traffic stop. White fled in his vehicle, then abandoned the vehicle and fled on foot, but was found and arrested. When officers searched his vehicle they found a clear plastic baggie that contained 22 individually-wrapped baggies of crack cocaine.
Officers executed a search warrant at White’s residence on the same day and seized $5,000, cocaine, and a loaded Kel Tec 9mm handgun.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. White has three prior felony convictions for possession of controlled substances and prior felony convictions for theft, conspiracy to possess cocaine and conspiracy to distribute crack cocaine.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for four hours before returning the guilty verdicts to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, April 2, 2018.
Under federal statutes, White is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jeffrey Q. McCarther and Bradley K. Kavanaugh. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jose C. Pena Sentenced for Distribution of CocaineRead the Press Release
SOUTH BEND – Jose C. Pena, 38, of the Dominican Republic, was sentenced before South Bend District Court Judge Jon E. DeGuilio for distribution of cocaine, announced U.S. Attorney Kirsch.
Pena was sentenced to 97 months imprisonment followed by 3 years of supervised release.
According to documents in this case, in 2011 Pena was involved with a group of people in Indiana, Texas and Ohio in the distribution of cocaine. Cocaine would be shipped from Texas to Elkhart, Indiana and drivers would then transport the cocaine to the Columbus, Ohio area. Pena was responsible for making the arrangements for these shipments.
This case was investigated by the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigative Division. The case was handled by Assistant U.S. Attorney Frank Schaffer.
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Jefferson County, Ohio man admits to firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA – Shaheim Price, of Wintersville, Ohio, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Price, age 23, pled guilty to one count of “Unlawful Possession of a Firearm.” Price, having previously been convicted of a felony, admitted to possessing a 9mm pistol. The crime occurred in Ohio County in October 2017.
Price faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Steven L. Vogrin is prosecuting the case on behalf of the government. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.Jackson County Man Pleads Guilty to Methamphetamine OffensesRead the Press Release
On April 5, 2018, Answar D. Rollins, Jr., a/k/a "Chuck" and "Swar," age 31, of Carbondale, Illinois, pled guilty to a two-count indictment charging conspiracy to distribute more than 50 grams of methamphetamine and unlawful distribution of methamphetamine. The offenses occurred between March 2017, and August 8, 2017, in Jackson County. The conspiracy offense carries a maximum penalty of five to 40 years imprisonment, to be followed by four years supervised release, and a $5,000,000 fine. Rollins also faces a maximum penalty of up to 20 years imprisonment, three years supervised release, and a $1,000,000 fine on the distribution offense.
During the plea hearing, Rollins also admitted that he had violated the terms of his supervised release relating to a 2006 federal drug offense. Rollins is currently being held without bond pending his July 18, 2018 sentencing hearing.
The investigation was conducted by the Jackson County Sheriff’s Office and the Drug Enforcement Administration. The Jackson County States Attorney’s Office also assisted in the investigation.
Investigation of A Tax Refund Scheme Results in PleaRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Tony Cherenfant. age 34, of Miami, Florida, entered a plea of guilty April 4, 2018 to conspiracy to steal government funds based on a fraudulent tax refund scheme seeking more than $1.2 million in refunds. Mr. Cherenfant entered his plea in Valdosta before Senior District Court Judge Hugh Lawson.
Facts stipulated in the plea agreement show that Mr. Cherenfant was stopped, while travelling with two other individuals, on Interstate 75 in Valdosta by a Camden County Sheriff’s Office deputy working patrol with the Lowndes County Sheriff’s Office. Additional Lowndes County deputies arrived and conducted a probable cause search of the vehicle. During the search of the vehicle, deputies found the personal identifying information of approximately 1500 individuals and tax refund documents, both in written and electronic form in notes, notebooks, a computer and a cell phone. The identifying information included the names, dates of birth and social security numbers of the individuals.
The Lowndes County Sheriff’s Office investigator contacted the IRS-Criminal Investigations, which identified a fraudulent tax scheme involving the identity information. In entering the plea, Mr. Cherenfant admitted to possessing the identities and that he was involved in a conspiracy which resulted in the filing of approximately 400 fraudulent federal tax returns with the IRS for tax year 2012 claiming refunds of $1,285,729. Actual refunds paid on those claims filed without the knowledge or permission of the taxpayers whose identities were used, totaled $582,751.
United States Attorney Charles E. Peeler stated, “This investigation represents a shining example of the positive results of local and federal law enforcement partnering to bring to justice someone preying on both individuals and society. This crime affected not only those whose identities were stolen, but all American taxpayers who are ultimately victimized by this form of theft. The United States Attorney’s Office is committed to supporting this kind of teamwork by aggressively prosecuting those who commit identity theft and tax fraud to line their own pockets.”
“Each of these identity theft investigations are unique, and criminals are inventing new ways to commit fraud,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “Especially during filing season, taxpayers need to safeguard tax information and make sure that it doesn’t get into the wrong hands.” Go to IRS.GOV and click on 2018 Dirty Dozen for more on tax schemes.
Mr. Cherenfant faces up to five years in prison and restitution to the United States of the stolen funds.
The case was investigated by the Lowndes County Sheriff’s Office and the Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Robert D. McCullers is prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Illegal Alien Sentenced to Prison for Heroin Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Laurel man was sentenced today to over five years in prison for conspiracy to distribute heroin.
According to court documents, Jeffrey Okyere, 32, was living in a luxury apartment building in National Harbor, Maryland, while he was a member of a drug conspiracy that was transporting heroin from Texas to the Washington, D.C. area for distribution. Okyere and another member of the conspiracy cut heroin inside his apartment in National Harbor, and Okyere supplied the conspiracy with heroin after members of the conspiracy stopped transporting heroin to the area from Texas.
Okyere has several prior felony convictions and was deported to Ghana in 2010. He was caught attempting to reenter the country illegally in 2011, but after serving prison time for that offense, he was not deported again. He was sentenced today to 63 months in prison, and three years of supervised release.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney J. Tyler McGaughey and Special Assistant U.S. Attorney David A. Peters prosecuted the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Puppet Master. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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. 1:17-cr-159.
Huntsville Man Sentenced to 5 Years in Federal Prison for Firearms ViolationRead the Press Release
Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Gregg Nicholas, age 55, of Huntsville, was sentenced April 4, 2018, to 60 months in federal prison followed by three years of supervised release on one count of Felon in Possession of a Firearm. The Honorable P.K. Holmes, III, Chief United States District Judge, presided over the sentencing hearing in Fort Smith.
According to court records, in April 2017, Huntsville law enforcement responded to a report from a Huntsville business that Nicholas claimed to be a Department of Homeland Security (DHS) employee and requested the business to sew on DHS patches on camouflage shirts. When law enforcement responded to the report, a detective observed Nicholas wearing both a federal game warden badge and a United States Department of Treasury badge. When the detective asked Nicholas about his employment with DHS, Nicholas then claimed he was retired from DHS, was a trained United States Marine, and completed several undercover jobs with the Bureau of Alcohol, Tobacco, and Firearms in his career. While speaking with the detective, Nicholas alluded to the fact that he possessed several firearms at his residence. At this point, Nicholas was arrested by local law enforcement for Criminal Impersonation. The detective then contacted Homeland Security Investigations (HSI) for assistance with the investigation. HSI agents conducted a criminal record check and identified that Nicholas had a prior felony conviction. Law enforcement officers executed a search warrant on Nicholas’ residence and discovered fourteen firearms and ammunition inside. Nicholas was indicted by a federal grand jury in June 2017 and entered a guilty plea in October 2017.
This case was investigated by Huntsville Police Department, Madison County Sheriff’s Office; Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the United States Postal Inspector. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
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.
Honolulu Man Sentenced to 57 Months for Defrauding University of HawaiiRead the Press Release
HONOLULU – U.S. District Court Judge Leslie E. Kobayashi sentenced Marc Hubbard, age 50, to 57 months in prison today for defrauding the University of Hawaii in violation of Title 18, United States Code, Section 1343. Hubbard pled guilty to the offense on October 4, 2016.
Kenji M. Price, U.S. Attorney for the District of Hawaii, said that according to court documents and information presented in court, in 2012, Hubbard falsely represented that he could book Stevie Wonder for a proposed concert to benefit the athletics program at the University of Hawaii. He made those false representations to an associate of his, whom he knew would relay them to the University. When his associate did so, in reliance on those false statements and to secure the concert, the University of Hawaii wired $250,000, and a supporter of the University wired an additional $50,000. The money was sent to Hubbard’s associate, and Hubbard personally received $147,500 of those funds, which he kept for himself and used for his own purposes.
The day before Hubbard was originally scheduled to be sentenced, he moved to withdraw his guilty plea. Judge Kobayashi gave Mr. Hubbard time to submit additional written materials, and then held a hearing during which Mr. Hubbard testified under oath, denying that he had committed fraud. After considering his testimony, and the evidence in the case, Judge Kobayashi denied Hubbard’s motion to withdraw his guilty plea. At today’s sentencing, Judge Kobayashi commented that Mr. Hubbard’s recent testimony was “completely opposite” the testimony he gave when he pled guilty. Because the testimony was so “diametrically opposed” to what Mr. Hubbard had previously stated, Judge Kobayashi found that Hubbard had willfully given false testimony and obstructed justice. She also found that he had failed to accept responsibility. Those determinations exposed Hubbard to a longer sentence.
Judge Kobayashi ordered that Hubbard’s 57-month sentence run consecutively to the 78-month sentence he is currently serving in another case in Pennsylvania. In imposing a consecutive sentence, Judge Kobayashi noted several aggravating factors. She highlighted the significance of the fraud on the local community, noting that it had “deeply wounded morale” at the University of Hawaii.
The case was investigated by the Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorney Marc A. Wallenstein.
Honduran National Charged with Violations of the Federal Gun Control ActRead the Press Release
U.S. Attorney Duane A. Evans announced that ELMER JAVIER ACOSTA-MEJIA, age 27, a citizen of Honduras, was charged in a two-count indictment for violations of the Federal Gun Control Act.
According to the indictment, ACOSTA-MEJIA, an alien illegally present in the United States, possessed two firearms. ACOSTA-MEJIA is prohibited from possessing any firearm because he is an alien illegally in the United States
For each charge, ACOSTA-MEJIA faces a maximum term of imprisonment of not more than ten years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, ACOSTA-MEJIA is subject to a period of supervised release after imprisonment of up to three years.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hammon Man Charged with Murder in Indian CountryRead the Press Release
OKLAHOMA CITY – A federal grand jury has charged TOMMY DEAN BULLCOMING, 54, of Hammon, Oklahoma, with first-degree murder in Indian Country, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
A five-count indictment unsealed today charges Bullcoming with five crimes he allegedly committed on September 6, 2017: first-degree premeditated murder, first-degree felony murder, carjacking resulting in death, kidnapping resulting in death, and arson. The indictment states he "used force, violence, and intimidation to intentionally take a Lexus RX300" from an Indian and that this resulted in her death. It further alleges he killed the victim "by stabbing and cutting her with a sharp object" and acted "in an especially heinous, cruel, and depraved manner in that the offense involved torture and serious physical abuse." The arson count alleges he maliciously set fire to the victim’s dwelling in Hammon.
If convicted of carjacking resulting in death, Bullcoming could face the death penalty. The Attorney General of the United States will decide whether to seek the death penalty based on the recommendation of the U.S. Attorney and after carefully considering the defendant’s background and the circumstances of the crime. If convicted of first-degree murder, felony murder, or kidnapping resulting in death, Bullcoming would face mandatory life in prison. The death penalty is not available for these offenses because federal jurisdiction is based on allegations they took place in Indian Country, and the relevant tribe has not opted in to the death penalty for those subject to its jurisdiction. The maximum punishment for arson would be 25 years in prison.
The public is reminded these charges are merely accusations and that Bullcoming is presumed innocent unless found guilty beyond a reasonable doubt by a unanimous jury.
This case is the result of an investigation by the FBI, the Bureau of Indian Affairs, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Mark R. Stoneman and Arvo Q. Mikkanen are prosecuting the case.
Reference is made to court filings for further information.
Former Union Official Pleads Guilty to EmbezzlementRead the Press Release
TRENTON, N.J. - A former official for a union headquartered in Edison, New Jersey, today admitted embezzling funds from the union’s employee benefit plan, U.S. Attorney Craig Carpenito announced.
Sergio Acosta, 65, of Utuado, Puerto Rico, formerly of Passaic, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging him with one count of theft, embezzlement and conversion to his own use, or to the use of another, money and funds of an employee welfare benefit fund.According to documents filed in this case and statements made court:
Acosta was the former president and a representative of United Auto Workers Local 2326, as well as a trustee of its health and welfare fund. Lawrence Ackerman, 53, of Old Tappan, New Jersey, allegedly formed Atlantic Business Associates (ABA) and other shell companies in 2001 in order use the Local 2326 welfare fund to provide medical insurance coverage to individuals who were not employees of ABA and therefore ineligible to participate in the union’s welfare fund. These individuals were willing to pay excessive monthly premiums to obtain medical coverage provided by Local 2326 welfare fund because they were unable to get similar coverage elsewhere.
Local 2326 was also obligated to pay contributions for its own staff employees to the welfare fund, which would in turn pay premiums to Blue Cross Blue Shield. However, based on the hundreds of ineligible enrollees that were recruited by Ackerman and permitted to use the Local 2326 fund, Acosta failed to pay premiums for his own staff employees that were still due to the fund from July 2011 through October 2012.
Acosta faces a maximum potential penalty of five years in prison and a $250,000 fine. Restitution will be determined at his sentencing, which is scheduled for Sept. 21, 2018.
Acosta and Ackerman were originally charged by indictment with conspiracy to defraud Horizon Blue Cross Blue Shield and the Local 2326 health and welfare fund with fraudulent health care claims. Those charges against Acosta will be dismissed at sentencing.The charges and allegations against Ackerman are still pending, and he is considered innocent unless and until proven guilty. Ackerman is scheduled for trial on Oct. 22, 2018.
U.S. Attorney Craig Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York; and the Office of Employee Benefit Security Act (EBSA), under the direction of Acting Regional Director Thomas Licetti in New York, with the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Organized Crime\Gangs Unit.
Defense counsel: Alan Silber Esq., Hackensack, New Jersey.
Former Union General Hospital CEO, ER director, and Blairsville physician indicted for illegally prescribing and obtaining prescription pain pillsRead the Press Release
GAINESVILLE, Ga. - John Michael Gowder, Dr. David Gowder, and Dr. James Heaton, have been indicted as part of Operation SCOPE on federal charges for illegally prescribing and obtaining thousands of doses of prescription pain medications outside the usual course of professional medical practice and for no legitimate medical purpose. They are expected to appear in federal court in Gainesville, Georgia to be arraigned on the charges on April 9, 2018.
“These defendants allegedly abused their positions as medical professionals to obtain illegitimately thousands of doses of prescription pain medications and now face serious federal charges,” said U.S. Attorney Byung J. “BJay” Pak. “The Department of Justice is committed to fighting the opioid epidemic through the aggressive investigation and prosecution of licensed medical practitioners who abuse their positions of trust to engage in illegal conduct.”
“Americans rely on healthcare providers, many of whom are medical doctors, to use their training to help patients and to ‘do no harm.’ The physicians and the hospital CEO in this case violated the law and betrayed their responsibilities by unlawfully obtaining and dispensing prescription opioids,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The moment these individuals decided to engage in this criminal behavior, they became nothing more than traditional drug traffickers. DEA, its law enforcement partners and the U.S. Attorney’s Office are committed to stemming the tide against the current opioid epidemic.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: From 2011 to 2015 John Michael “Mike” Gowder was the Chief Executive Officer of Union General Hospital in Blairsville, Dr. David Gowder was the Emergency Room Director at Union General, and Dr. James Heaton operated a family practice clinic in Blairsville, Georgia.
Mike Gowder and Dr. David Gowder allegedly conspired together to illegally obtain oxycodone, hydrocodone, and alprazolam. Dr. David Gowder unlawfully obtained these controlled substances from patients that he treated at the hospital. He also illegally issued prescriptions for oxycodone, hydrocodone, and alprazolam in the names of his and Mike Gowder’s family members, existing hospital patients, and fictitious patients. The prescriptions were issued outside the usual course of professional practice and Mike Gowder and Dr. David Gowder knew the drugs obtained with the prescriptions were not intended for the persons for whom the prescriptions were allegedly written. The drugs obtained with the illegal prescriptions were not for any legitimate medical purpose.
Dr. David Gowder would direct Union General Hospital employees to fill the prescriptions at local pharmacies. He would provide cash to the employees to pay for the drugs and would direct the employees to return the drugs they obtained to him. Mike Gowder used his position as the chief administrator at Union General Hospital to fire hospital employees who tried to expose Dr. David Gowder’s illegal prescribing and obtaining of oxycodone, hydrocodone, and alprazolam. He also used his position to intimidate other employees into concealing Dr. David Gowder’s unlawful acquisition of controlled substances.
Between April 2013, and April 2015, Dr. David Gowder issued at least 19 illegal prescriptions for oxycodone pills, 21 illegal prescriptions for hydrocodone pills, and five illegal prescriptions for alprazolam pills, including by forging the names of other physicians.
Dr. Heaton illegally prescribed oxycodone and other controlled substances to Mike Gowder, Mike Gowder’s family members, and others, knowing that the prescriptions were issued outside the usual course of professional practice and that the pills obtained with the prescriptions had no legitimate medical purpose. Dr. Heaton violated standards of medical practice by prescribing thousands of doses of oxycodone and other controlled substances to Mike Gowder, Mike Gowder’s family members, and others without adequately documenting the medical need for the prescriptions in patient files and without monitoring patient abuse of the pills they obtained.
Mike Gowder obtained oxycodone by fraud, subterfuge, and deception by filling the illegal prescriptions that Dr. Heaton issued for oxycodone at different pharmacies in Georgia, Tennessee, and North Carolina in an effort to conceal the large numbers of oxycodone pills that Dr. Heaton was prescribing to him.
Between May 1, 2013, and June 16, 2015, Dr. Heaton wrote at least 74 illegal prescriptions for oxycodone to Mike Gowder. In addition to filling the prescriptions at pharmacies in Georgia, Mike Gowder often travelled to North Carolina and Tennessee to fill multiple prescriptions a month at pharmacies in those states. On multiple occasions, Dr. Heaton wrote two prescriptions for oxycodone for Mike Gowder on the same day. On other occasions, Mike Gowder would travel to North Carolina to fill one prescription and Tennessee to fill the second prescription to conceal the fact that multiple prescriptions were written to him on the same day.
Oxycodone and hydrocodone are powerful pain medications that are listed as controlled substances under federal law because each has a high potential for psychological and physical abuse and dependence. Oxycodone, which may be combined with acetaminophen, is sold generically under brand names including Percocet, Endocet, Oxycontin, and Roxicodone. Hydrocodone is sold generically or under brand names including Lortab, Vicodin, and Norco. Alprazolam is commonly prescribed to treat anxiety. It is sold generically and under the brand name Xanax.
John Michael Gowder, 60, Dr. David Gowder, 61, and Dr. James Heaton, 61, all of Blairsville, Georgia, are expected to be arraigned April 9, 2018, at the federal courthouse in Gainesville, Georgia. Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration, and members of the Union County (Georgia) Sheriff's Office, Cherokee County (North Carolina) Sheriff’s Office, Georgia Drugs and Narcotics Agency and Zell Miller Mountain Parkway Drug Task Force.
Assistant U.S. Attorneys William L. McKinnon, Jr., and Laurel R. Boatright are prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Georgia is Strategically Combatting Opioids through Prosecution and Enforcement (SCOPE). We also recommend parents and children learn about the dangers of drugs at www.justthinktwice.gov.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former U.S. Bureau of Prisons Employee Sentenced to over 11 Years in Prison for Sex TraffickingRead the Press Release
SACRAMENTO, Calif. — Charles Carstersen, 55, of Manteca, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 11 years and three months in prison to be followed by 10 years of supervised release, for sex trafficking a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, beginning in April 2014, while employed as an information technology technician at the Bureau of Prisons, Carstersen met the 16-year-old victim and engaged in sex acts with her for money. Between February and March 2015, knowing the victim was underage, he pursued a romantic relationship with her and encouraged her to participate in prostitution, renting hotel rooms for her in the Sacramento area and helping her to post online prostitution advertisements. He also encouraged her to engage in prostitution with two other females that he knew.
“Charles Carstersen’s illegal activities were in direct opposition to the core values of the Federal Bureau of Prisons, a system that holds its employees to a high standard of character and conduct,” said Special Agent in Charge Sean Ragan. “Commercial sexual exploitation of a minor is a serious crime that preys upon vulnerable young men and women in our community. As Carstersen’s victim discovered, there is hope. We encourage anyone who may be a victim to reach out to the National Human Trafficking Resource Center by calling 888-373-7888 or their local FBI office to obtain help and ensure the exploiter faces justice.”
This case was the product of an investigation by the Federal Bureau of Investigation’s Sacramento Child Exploitation Task Force, with assistance from the Sacramento Police Department, the U.S. Department of Justice, Office of the Inspector General, and the Roseville Police Department. Assistant U.S. Attorney Michele Beckwith prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Police Officer Indicted for Deprivation of Civil Rights and Falsification of RecordsRead the Press Release
A former police officer with the Village of Biscayne Park had his initial appearance today on an indictment in Miami for deprivation of civil rights under color of law against two individuals on separate occasions and for falsifying records in a federal investigation. Acting Assistant Attorney General John Gore of the Civil Rights Division, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.
Guillermo Ravelo, 37, of Miami, Florida, is charged with depriving persons of their civil rights under color of law, in violation of Title 18, United States Code, Section 242 (Counts 1 and 3), and falsifying records in a federal investigation, in violation of Title 18, United States Code, Section 1519 (Counts 2 and 4). If convicted of all charges, Ravelo faces a statutory maximum sentence of 60 years in prison.
According to the allegations contained in the indictment, on April 7, 2013, officer Ravelo responded to a request for assistance from another Biscayne Park police officer who had conducted a traffic stop. During the arrest of the driver, officer Ravelo struck the driver with his fist. In a separate incident, on June 14, 2013, while still employed as a police officer with the Biscayne Park Police Department, officer Ravelo responded to a call concerning an ongoing vehicle burglary in Biscayne Park and struck the suspect with a blunt object. Both assaults resulted in bodily injury, and on both occasions officer Ravelo falsified the police reports by misstating the circumstances of the arrests and by omitting that he struck both of the victims.
The investigation was led by the FBI, including the FBI Miami Area Corruption Task Force, FDLE, and the Miami-Dade State Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
An indictment merely contains accusations. A defendant is presumed innocent, unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Police Officer Appears in Federal Court on Indictment for Deprivation of Civil Rights and Falsification of Records in a Federal InvestigationRead the Press Release
A former police officer with the Village of Biscayne Park had his initial appearance today on an indictment in Miami for deprivation of civil rights under color of law against two individuals on separate occasions and for falsifying records in a federal investigation.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Katherine Fernandez Rundle, Miami-Dade State Attorney; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.
Guillermo Ravelo, 37, of Miami, Florida, is charged by indictment with depriving persons of their civil rights under color of law, in violation of Title 18, United States Code, Section 242 (Counts 1 and 3); and falsifying records in a federal investigation, in violation of Title 18, United States Code, Section 1519 (Counts 2 and 4). If convicted of all charges, Ravelo faces a statutory maximum sentence of twenty years in prison, three years of supervised release, and up to a $250,000 fine.
According to the allegations contained in the indictment, on April 7, 2013, officer Ravelo responded to a request for assistance from another Biscayne Park police officer who had conducted a traffic stop. During the arrest of the driver, officer Ravelo struck the driver with his fist. In a separate incident, on June 14, 2013, while still employed as a police officer with the Biscayne Park Police Department, officer Ravelo responded to a call concerning an ongoing vehicle burglary in Biscayne Park and struck the suspect with a blunt object. Both assaults resulted in bodily injury, and on both occasions officer Ravelo falsified the police reports by misstating the circumstances of the arrests and by omitting that he struck both of the victims.
Mr. Greenberg commended the investigative efforts of the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and thanked the Miami-Dade State Attorney’s Office for its assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
An indictment merely contain accusations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Dover Charter School Principal Sentenced to PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that Noel Rodriguez, age 56, formerly of Dover, Del., was sentenced by U.S. District Court Judge Richard G. Andrews to 13 months of imprisonment and ordered to pay $145,480 in restitution. The sentencing came after Rodriguez pleaded guilty to one count of federal program theft on November 20, 2017.
According to court records and statements made in open court, between 2011 and 2014, while serving as Principal of the Academy of Dover, a charter school in Dover, Del., Rodriguez embezzled $145,480 from the school. He did so by charging personal expenses to four unauthorized credit cards that he opened in the name of the school, abusing the voucher program, and using the charter-school issued procurement credit card for his own personal purchases. Rodriguez used the embezzled funds to purchase camping equipment, electronics, personal travel, and home improvement items, among other things.
U.S. Attorney Weiss said, “Mr. Rodriguez betrayed the public trust by using his position as Principal of the Academy of Dover to further his own interests. The sentence imposed today holds Mr. Rodriguez accountable for stealing $145,000 meant for the children and school he was hired to serve, and it should serve as a warning to others contemplating misappropriating public funds.”
"Mr. Rodriguez defrauded America's taxpayers and the children he promised to serve in a deliberate and methodical way," said Geoffrey Wood, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office. "His sentence should serve as a warning to anyone who intentionally steals or misappropriates Federal education funds for their own selfish purpose: you will be caught and held accountable for your unlawful actions."
"Principals are in positions of public trust and have an obligation to act in the best interest of their schools and the children for which they represent," said Special Agent Gordon B. Johnson of the FBI’s Baltimore Division. “Mr. Rodriguez violated this trust. The FBI will vigorously investigate any official who attempts to use their position to enrich themselves.”
This case is the result of an investigation conducted by the Federal Bureau of Investigation, the U.S. Department of Education – Office of the Inspector General, and the Delaware Attorney General’s Office, with assistance from the Delaware Office of Auditor of Accounts.
Felon Receives 10 Years After Being Found Guilty at TrialRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that United States District Court Senior Judge Callie V. S. Granade sentenced Joseph W. Rohe, Jr. to 117 months (defendant given 3 months credit for the time served in jail since his trial) in prison on April 4, 2018, for the crime of Possession of a Firearm by a Prohibited Person (a felon), a violation of Title 18 U.S.C. section 922(g)(1). Rohe’s sentence was the maximum permitted by law.
On August 8, 2017, the Baldwin County Drug Task Force executed a search warrant at Rohe’s residence in Foley, Alabama, in search of narcotics. Members of the Task Force located nine firearms, in addition to controlled substances and other drug paraphernalia, inside the residence with Rohe. The guns ranged from handguns to shotguns and assault-style rifles. Police were able to determine that all of the firearms had been reported stolen.
Rohe was on probation at the time of his arrest, and had previously been convicted for the felony offense of Manufacturing a Controlled Substance in Baldwin County in 2013.
The Baldwin County Task Force, the Baldwin County Sheriff’s Office, the Bay Minette Police Department and the Federal Bureau of Investigation, Mobile Field Office all contributed in the investigation of this case. Assistant United States Attorney Christopher Baugh prosecuted the case for the Southern District of Alabama.
Federal jury finds former Pollock detention facility corrections officer guilty of briberyRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a federal jury found a former corrections officer at the Federal Correctional Complex in Pollock, Louisiana, guilty of accepting bribes to smuggle contraband.
Byron A. Wyatt, 38, of Marksville, Louisiana, was found guilty of two counts of bribery of public officials and witnesses. United States District Judge Dee D. Drell presided over the trial, which started Tuesday and ended Thursday. The jury returned a guilty verdict after deliberating for approximately an hour and a half. Evidence admitted at trial revealed that Wyatt worked as a corrections officer at the Federal Correctional Complex in Pollock where he accepted thousands of dollars in bribes from a prisoner in 2014 in exchange for smuggling contraband into the prison.
The defendant faces up to 15 years in prison, five years of supervised release and a $250,000 fine for each count. Sentencing has been set for July 13, 2018.
The U.S. Department of Justice Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Earl M. Campbell and Tiffany E. Fields are prosecuting the case.
Farmington Felon Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Gerald Soliz, 42, of Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to drug trafficking and firearms charges in three separate criminal cases. Soliz’s plea agreement recommends a sentence within the range of 100 to 125 months of imprisonment.
Soliz and two other Farmington residents were charged in three separate indictments filed in July 2017, alleging drug trafficking and firearms offenses. The indictments were the result of a multi-agency investigation into a drug trafficking organization allegedly trafficking methamphetamine, heroin and firearms in San Juan County, N.M.
The investigation, which was led by the FBI and the HIDTA Region II Task Force was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The first indictment charges Soliz with distributing methamphetamine on Nov. 3, 2016, Jan. 4, 2017, Jan. 17, 2017, and Jan. 30, 2017. The second indictment charges Soliz and co-defendant Chad McKinney, 31, with being felons in possession of firearms and ammunition and possessing and transferring a machine gun on Dec. 14, 2016. According to the second indictment, Soliz was prohibited from possessing firearms or ammunition because he had previously been convicted of possession of a controlled substance and child sexual assault, and McKinney was prohibited from possessing firearms and ammunition because he had previously been convicted of forgery, unlawful taking of a vehicle and importing more than 50 kilograms of marijuana. The third indictment charges Soliz and co-defendant Marcus McGee, 43, with conspiring to distribute methamphetamine from Dec. 1, 2016 through Dec. 3, 2016, and distributing methamphetamine on Dec. 3, 2016. McGee was charged individually with distributing methamphetamine and heroin, possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm and ammunition on May 23, 2017. McGee was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of a controlled substance.
During today’s proceedings, Soliz entered a guilty plea to charges in the three separate indictments. Specifically, Soliz pled guilty to two counts of distributing methamphetamine and to being a felon in possession of a firearm and ammunition.
In entering the guilty plea, Soliz admitted that he distributed approximately 91.2 grams of methamphetamine to an undercover law enforcement agent on Dec. 3, 2016, and approximately 249 grams of methamphetamine to an undercover law enforcement agent on Jan. 4, 2017. Soliz also admitted that on Dec. 14, 2016, he acted as the middleman to arrange the sale of a machinegun and participated in the sale of the machinegun to an undercover law enforcement agent. Soliz acknowledged that he was prohibited from possessing firearms and ammunition because he had previously been convicted of at least three separate felony offenses. Soliz remains in custody pending a sentencing hearing that has yet to be scheduled.
McKinney and McGee have both entered pleas of not guilty to the charges against them. Charges in indictments are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
These cases were investigated by the Farmington office of the FBI and the HIDTA Region II Task Force. Assistant U.S. Attorney Peter J. Eicker is prosecuting the three cases.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Drug Dealer Charged with Overdose Death of Public School Teacher in the BronxRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest and unsealing of a Complaint charging KASHAWN LYONS with distributing the fentanyl that resulted in the death of Matthew Azimi, a public school teacher in the Bronx. The Complaint also alleges that LYONS and a co-defendant, TERRICK WHITAKER, distributed heroin and fentanyl together between February and March 2018 in the Bronx. LYONS was arrested yesterday by the NYPD, and will be presented later today before U.S. Magistrate Judge Henry B. Pitman in Manhattan federal court. TERRICK WHITAKER remains at large.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Kashawn Lyons and Terrick Whitaker peddled potentially lethal heroin and fentanyl near the grounds of a Bronx public school. Additionally, Lyons allegedly sold a dose that was in fact lethal and resulted in the overdose death of a teacher at the school. Working with the NYPD we will continue to combat the epidemic of lethal opioids that is killing people from all walks of life.”
According to the allegations in the Complaint[1]:
On November 30, 2017, Matthew Azimi, a 36-year-old teacher, was found dead inside a faculty bathroom at a special education public school in the Bronx (the “School”) where Mr. Azimi was a teacher. The NYPD responded to the School and began investigating Azimi’s death. An autopsy conducted following Mr. Azimi’s death revealed that he died from a lethal dose of fentanyl. NYPD officers recovered a syringe and a pink glassine bag with no stamp or other distinctive marking next to Mr. Azimi’s body. The NYPD also recovered Mr. Azimi’s cellphone.
As detailed in the Complaint, the NYPD was able to trace the last three completed calls that Mr. Azimi made before he overdosed on November 30, 2017, to a cellphone used by LYONS. Through surveillance, the NYPD learned that LYONS continued to sell heroin and fentanyl in the vicinity of the School. In February 2018, the NYPD made undercover buys of heroin and fentanyl from LYONS and WHITAKER, who was dealing drugs with LYONS, in close proximity to the School. The heroin and fentanyl purchased from LYONS and WHTIAKER were packaged in the same unique pink glassine bags as the one found next to Mr. Azimi’s body.
* * *
LYONS, 31, of the Bronx, was charged with distribution and possession with intent to distribute heroin and fentanyl, and with conspiring to distribute heroin and fentanyl with WHITAKER. LYONS faces a maximum sentence of life in prison and a mandatory minimum sentence of 20 years in prison based upon his distribution of the fentanyl that killed Mr. Azimi.
WHITAKER, 31, of the Bronx, was charged with distribution and possession with intent to distribute heroin and fentanyl, and with conspiring to distribute heroin and fentanyl with LYONS, each of which carries a statutory maximum sentence of 20 years in prison.
The statutory maximum and minimum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD in this case.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Jacob Warren is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Springfield for illegally reentering the United States after being deported.
Francisco Siri, a/k/a Javier Ciravello Perez, 48, was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months in prison. Siri will be subject to deportation proceedings. In January 2018, Siri pleaded guilty to one count of unlawful reentry of a deported alien.
In 1983, Siri was admitted to the United States as an immigrant or lawful permanent resident. Siri lost that status in 1989 after being convicted in Essex County Superior Court of trafficking cocaine. On Nov. 9, 1992, Siri was deported to the Dominican Republic. In October 2017, law enforcement officers in Springfield encountered Siri at the Hampden County Jail and determined him to be unlawfully present in the United States. Siri is currently facing state charges for distributing and trafficking cocaine.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
Department of Justice and Health and Human Services Return $2.6 Billion in Taxpayer Savings from Efforts to Fight Healthcare FraudRead the Press Release
Health and Human Services Secretary Alex Azar and Attorney General Jeff Sessions today released a fiscal year (FY) 2017 Health Care Fraud and Abuse Control Program report showing that for every dollar the federal government spent on healthcare related fraud and abuse investigations in the last three years, the government recovered $4. Additionally, the report shows that the departments’ FY 2017 Takedown event was the single largest healthcare fraud enforcement operation in history.
In FY 2017, the government’s healthcare fraud prevention and enforcement efforts recovered $2.6 billion in taxpayer dollars from individuals and entities attempting to defraud the federal government and Medicare and Medicaid beneficiaries. Some of these fraudulent practices include:- Providers operating “pill mills” out of their medical offices.
- Providers submitting false claims to Medicare for ambulance transportation services.
- Clinics submitting false claims to Medicare and Medicaid for physical and occupational therapy.
- Drug companies paying kickbacks to providers to prescribe their drugs, and pharmacies soliciting and receiving kickbacks from pharmaceutical companies for promoting their drugs.
- Companies misrepresenting capabilities of their electronic health record software to customers.
“Taxpayers work hard every day to help fund government programs for our fellow Americans,” Attorney General Sessions said. “But too many trusted medical professionals like doctors, nurses and pharmacists have chosen to violate their oaths and exploit this generosity to line their pockets, sometimes for millions of dollars. At the Department of Justice, we have taken historic new actions to incarcerate these criminals and recover stolen funds, including executing the largest healthcare fraud enforcement action in American history. These achievements are important, but the department's work is not finished. We will keep up this pace and continue to prosecute fraudsters so that we can give financial relief to taxpayers.”
“Today’s report highlights the success of HHS and DOJ’s joint fraud-fighting efforts,” said HHS Secretary Azar. “By holding individuals and entities accountable for defrauding our federal health programs, we are protecting the programs’ beneficiaries, safeguarding billions in taxpayer dollars, and, in the case of pill mills, helping stem the tide of our nation’s opioid epidemic.”
The Departments of Justice (DOJ) and Health and Human Services (HHS), through the Health Care Fraud Prevention and Enforcement Action Team (HEAT) effort, use data analytics and surveillance to crack down on, prevent and prosecute healthcare fraud. While the program continues to be very successful, the return on investment fluctuates from year to year, in part because cases resulting in large settlements take multiple years to complete. Additionally, there has been a reduction in large monetary settlements as many of the large pharmaceutical manufacturers have entered into Corporate Integrity Agreements with the HHS Office of the Inspector General to establish protections against fraudulent activities.
With teams comprised of law enforcement agents, prosecutors, attorneys, auditors, evaluators and other staff, last year DOJ opened 967 new criminal healthcare fraud investigations of which federal prosecutors filed criminal charges in 439 cases involving 720 defendants. A total of 639 defendants were convicted of healthcare fraud related crimes. In FY 2017, the DOJ and HHS joint Medicare Fraud Strike Force filed 253 indictments and charges against 478 defendants who allegedly billed federal healthcare programs more than $2.3 billion. The Strike Force obtained more than 290 guilty pleas, litigated 33 jury trials and won guilty verdicts against 40 defendants. The Fraud Strike Force secured prison sentences for more than 300 defendants, with an average sentence of 50 months. Since its inception in 2007, Strike Force prosecutors filed more than 1,660 cases charging more than 3,490 defendants who collectively billed the Medicare program more than $13 billion.
Beyond criminal prosecution, the HHS Office of Inspector General (OIG) remains vigilant in excluding providers and suppliers who committed fraud or engaged in the abuse or neglect of patients in federal health programs. A total of 3,244 individuals and entities were excluded in FY 2017. Others were excluded as a result of licensure revocations. These exclusions help to safeguard beneficiaries from future harm that could otherwise be inflicted by such convicted individuals or entities. HHS can also suspend Medicare payments to providers during investigations of credible allegations of fraud. During FY 2017, there were 551 related payment suspensions. More than 4 million claims are reviewed by Medicare each day; resulting in more than one billion claims processed annually for timely payments to healthcare providers and suppliers. Given the volume of claims processed by Medicare each day and the significant cost associated with conducting medical review of an individual claim, the Centers for Medicare and Medicaid Services uses automated edits to help prevent improper payments without the need for manual intervention. The National Correct Coding Initiative consists of edits designed to reduce improper payments in Medicare Part B, and this program saved Medicare $186.9 million during the first nine months of FY 2017.
As the opioid epidemic continues to devastate communities and families across the nation, both DOJ and HHS are responding with new approaches. One out of every three beneficiaries received prescription opioids through Medicare Part D in 2016. Additionally, 401 prescribers were found to have questionable prescribing patterns for beneficiaries at serious risk of opioid misuse or overdose, based on an OIG analysis. Last July, DOJ and HHS announced the largest ever healthcare fraud enforcement action, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in healthcare schemes involving approximately $1.3 billion in false billings. Of those charged, more than 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.
In August, Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a new DOJ pilot program that will use data to help combat and prosecute individuals and entities involved in illegal activities that fuel the crisis. As part of that task force, the department funded 12 experienced assistant United States attorneys for a three-year term to focus solely on investigating and prosecuting healthcare fraud related to prescription opioids, including pill mill schemes and pharmacies that unlawfully divert or dispense prescription opioids for illegitimate purposes. Those prosecutors have already charged several with unlawful distribution of opioids, and their continued success is crucial in combatting this deadly epidemic.
For more details on the Health Care Fraud and Abuse Control Program and today’s report, visit: https://oig.hhs.gov/publications/docs/hcfac/FY2017-hcfac.pdfDavenport Man Sentenced to Prison for Firearm Offense and Supervised Release ViolationRead the Press Release
DAVENPORT, Iowa – On April 5, 2018, United States District Court Chief Judge John A. Jarvey sentenced Darion Daquan Gardner, age 22, of Davenport, to 80 months in prison for a felon in possession of a firearm charge, announced United States Attorney Marc Krickbaum. Gardner was ordered to serve three years of supervised release following his term of imprisonment, pay $100 to the Crime Victims’ Fund, and forfeit the firearm he possessed. He was also sentenced to an additional 15 months in prison for violating the terms of his supervised release. That term of supervision was imposed on November 19, 2015, when he was sentenced in the Southern District of Iowa to 30 months in prison for Fugitive in Possession of a Firearm.
On November 9, 2017, Gardner pleaded guilty to the charge. On March 3, 2017, Davenport police officers attempted to stop a vehicle driven by Gardner, who was known to have a warrant for violating the terms of his federal supervised release. Gardner fled from officers in the vehicle and then ran from the vehicle once it was disabled. A stolen, loaded handgun was found in the vehicle.
This matter was investigated by the Davenport Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Chico Man Sentenced to 15 Years in Prison for Filming his Sexual Abuse of a ChildRead the Press Release
SACRAMENTO, Calif. — Nathan Alexander Drury, 39, of Chico, was sentenced today by Senior U.S. District Judge Garland E. Burrell Jr. to 15 years in prison for production of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between January 1, 2012, and December 1, 2014, Drury filmed images of a child engaged in sexually explicit conduct, including a 47-second video of a nude child who was under the age of 12. That video that Drury produced shows Drury sexually abusing the child.
“Homeland Security Investigations will do whatever it takes to investigate these people who are a scourge to society and prey on innocent children,” said Ryan L. Spradlin, Special Agent in Charge for HSI in Northern California and Northern Nevada. “This type of crime is way too prevalent; but let this serve as a warning for any of those engaged in this illicit and egregious activity – the investigators of the federal government will hold you responsible for your actions.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, and the Chico Police Department. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Chester Man Charged in Overdose DeathRead the Press Release
PHILADELPHIA – Robert Atkins, 28, of Chester, PA, has been charged by indictment with distribution of fentanyl resulting in death, announced United States Attorney Louis D. Lappen and Delaware County District Attorney Katayoun Copeland. Atkins has also been charged with five counts of distributing fentanyl and one count of distributing fentanyl within 1,000 feet of a school. The death charge results from the September 9, 2017 fatal overdose of an Upper Darby Township resident from fentanyl that was allegedly sold to him by Atkins.
“We have a public health crisis in this country involving opioid abuse that is exacerbated by individuals who continue to distribute these deadly substances,” said Lappen. “The impact on our community is immeasurable and tragic. Our office will continue to work with our federal and local partners through the Eastern District of Pennsylvania’s Opioid Law Enforcement Task Force to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.”
“The defendant had no regard for the people to whom he peddled his poison, and continued to distribute this deadly venom on our streets even after causing the death of one of our Delaware County residents,” said Copeland. “Any drug trafficker who distributes these lethal drugs on our streets shall be on notice that we will hold you accountable for the devastation of our communities.”
The case was investigated by the Drug Enforcement Administration, the Delaware County Drug Task Force, and the Folcroft Borough and Upper Darby Police Departments. It is being prosecuted by Assistant United States Attorney Faithe Moore Taylor and, from the Delaware County District Attorney’s Office, Special Assistant United States Attorney Sharon H. McKenna.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bristol Man Indicted in Connection with Distributing Heroin to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on March 29, 2018, a grand jury in Hartford returned an indictment charging ROGER TUSCANO, 47, of Bristol, with distributing heroin.
TUSCANO was arrested on a federal criminal complaint on October 25, 2017, and was released on a $100,000 bond into an inpatient drug treatment program. He absconded from the treatment program on March 12 and was at large until he was located and apprehended on April 4. He appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and was ordered detained.
As alleged in court documents, on April 26, 2017, the Southington Police Department and emergency medical personnel responded to a residence for an unresponsive 54-year-old female who had suffered an apparent drug overdose. Responders attempted lifesaving measures on the victim, including administering naloxone, with minimal effect. The victim was then transported to the hospital.
At the scene, officers seized drug and non-drug evidence, including four wax folds that contained heroin.
The victim died on April 28. The Connecticut Office of the Chief Medical Examiner has determined that the victim’s death was caused by a combination of heroin and clonazepam.
It is alleged that on the morning of April 26, the victim purchased heroin from TUSCANO at a gas station in New Britain.
The indictment charges TUSCANO with possession with intent to distribute, and distribution of, heroin, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, Southington Police Department and Bristol Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
Bethel Park Man Sentenced for Violating the Federal Hate Crimes Prevention ActRead the Press Release
PITTSBURGH, Pa. – Jeffrey Allen Burgess has been sentenced in federal court to three years’ probation, to include the following special conditions: four months of home detention; continued alcohol treatment through Pyramid Healthcare, Inc., or as directed by the U.S. Probation Office; 50 hours of community service; full participation in a restorative justice program administered by Center for Victims; and restitution in an amount to be determined by the Court at a later date, on a charge of violating the Hate Crimes Prevention Act, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Jeffrey Allen Burgess, age 56.
According to information presented to the Court, on or about November 22, 2016, Burgess violated the Hate Crimes Prevention Act by willfully causing bodily injury to A.M. because of A.M.’s actual and perceived race, color, and national origin.
Assistant U.S. Attorneys Cindy K. Chung and Rachael L. Dizard of the Western District of Pennsylvania and Civil Rights Division Trial Attorney Tona Boyd prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Bethel Park Police Department for conducting the investigation leading to the successful prosecution of Burgess.
Attorney General Sessions Names David Muhlhausen Executive Director of Federal Interagency Council on Crime Prevention and Improving ReentryRead the Press Release
Attorney General Jeff Sessions today named Director of the National Institute of Justice Dr. David Muhlhausen as Executive Director of Federal Interagency Council on Crime Prevention and Improving Reentry (FIRC) and announced that Ja’Ron Smith, Domestic Policy Council Director of Urban Affairs and Revitalization, was also announced as the White House liaison to the FIRC.
"Recidivism rates in this country are unacceptably high," Attorney General Sessions said. "That means more costs for society, more dangerous work for our law enforcement officers, and more crime. That's why, under President Trump's leadership, the Department of Justice is committed to improving outcomes for those reintegrating into society who want to abide by our laws. The FIRC plays a critical role in making that progress possible, and so I want to thank Director Muhlhausen for his willingness to serve and for his hard work on this issue already. I am confident that he will be a success in this new position."
The FIRC was established in response to Executive Order 13826 on March 7, 2018 and is co-chaired by Attorney General Sessions, the Assistant to the President for Domestic Policy Andrew P. Bremberg, and the Senior Advisor to the President in charge of the White House Office of American Innovation Jared Kushner. The FIRC is part of President Trump’s effort to encourage prison reform, reduce recidivism, combat crime, and improve public safety.
Director Muhlhausen joined the National Institute of Justice in 2017. Previously, he served as a research fellow in empirical policy analysis at the Heritage Foundation, where he worked since 1999. Dr. Muhlhausen has testified frequently before Congress on the efficiency and effectiveness of various Federal programs. He has been called by the House and Senate Committees on the Judiciary to discuss how to improve policing strategies, prisoner reentry programs, and other important criminal justice programs.
The National Institute of Justice is dedicated to improving knowledge and understanding of crime and justice issues. The Institute provides objective and independent research and tools to inform the decision-making of policymakers in order to reduce crime and advance justice, particularly at the state and local levels.
More information about the National Institute of Justice can be found at www.nij.gov. More information about OJP can be found at www.ojp.gov.Attorney General Announces Zero-Tolerance Policy for Criminal Illegal EntryRead the Press Release
Attorney General Jeff Sessions today notified all U.S. Attorney’s Offices along the Southwest Border of a new “zero-tolerance policy” for offenses under 8 U.S.C. § 1325(a), which prohibits both attempted illegal entry and illegal entry into the United States by an alien. The implementation of the Attorney General’s zero-tolerance policy comes as the Department of Homeland Security reported a 203 percent increase in illegal border crossings from March 2017 to March 2018, and a 37 percent increase from February 2018 to March 2018—the largest month-to-month increase since 2011.
“The situation at our Southwest Border is unacceptable. Congress has failed to pass effective legislation that serves the national interest—that closes dangerous loopholes and fully funds a wall along our southern border. As a result, a crisis has erupted at our Southwest Border that necessitates an escalated effort to prosecute those who choose to illegally cross our border,” said Attorney General Jeff Sessions. “To those who wish to challenge the Trump Administration’s commitment to public safety, national security, and the rule of law, I warn you: illegally entering this country will not be rewarded, but will instead be met with the full prosecutorial powers of the Department of Justice. To the Department’s prosecutors, I urge you: promoting and enforcing the rule of law is vital to protecting a nation, its borders, and its citizens. You play a critical part in fulfilling these goals, and I thank you for your continued efforts in seeing to it that our laws—and as a result, our nation—are respected.”
On April 11, 2017, Attorney General Jeff Sessions announced a renewed commitment to criminal immigration enforcement. As part of that announcement, the Attorney General issued a memorandum to all federal prosecutors and directed them to prioritize the prosecution of certain criminal immigration offenses.
Today’s zero-tolerance policy further directs each U.S. Attorney’s Office along the Southwest Border (i.e., Southern District of California, District of Arizona, District of New Mexico, Western District of Texas, and the Southern District of Texas) to adopt a policy to prosecute all Department of Homeland Security referrals of section 1325(a) violations, to the extent practicable.
***Media Advisory***Read the Press Release
LAW ENFORCEMENT AND CRIME VICTIM ADVOCATES JOIN TO COMMEMORATE NATIONAL CRIME VICTIMS' RIGHTS WEEK
Back the Blue: Honoring Our Fallen Heroes, and Celebrating Law Enforcement’s Contributions to Crime Victims and Service
CHARLESTON, W.Va. – Federal, state and local law enforcement and advocates of crime victims’ rights will join United States Attorney Mike Stuart in hosting an opening ceremony on Thursday, April 12, 2018, in the Robert C. Byrd United States Courthouse in Charleston, and a Walk/Run for Justice on Friday, April 13, 2018, at Haddad Riverfront Park in Charleston. Both events are being held in recognition of National Crime Victims' Rights Week.
This year’s local theme is “Back the Blue: Law Enforcement’s Contributions to Crime Victims and Service.” The ceremony and walk/run will honor and remember fallen law enforcement who paid the ultimate sacrifice, and celebrate those who continue to serve crime victims and the community. As part of the event, the United States Attorney and the West Virginia Fraternal Order of Police will unveil a statewide tribute to our men and women in blue.
United States Attorney Mike Stuart has called for and West Virginia Governor James “Jim” Justice, II has issued a Proclamation ordering on April 13th: (i) a statewide moment of silence at noon; (ii) simultaneous tolling of the bells at houses of worship across the state; and, (iii) flags flown at half-staff for the entire day.
This years’ events mark the 18th Annual Operation Reach Out event. Operation Reach Out is a collaborative group of federal, state and local agencies and organizations that work to raise awareness about the rights, protections, and services available to crime victims in West Virginia. This event is being held in conjunction with the nationwide observance of National Crime Victims' Rights Week, which begins on April 8 and runs through April 14, 2018.
OPENING CEREMONY:
WHO: United States Attorney Mike Stuart
West Virginia Fraternal Order of Police
Operation Reach Out committee members
Other federal, state and local officials
Staff of United States Attorney's Office, Southern District of West Virginia
WHAT: Operation Reach Out Opening Ceremony for National Crime Victims’ Rights Week – Back the Blue
WHERE: Robert C. Byrd United States Courthouse – Fifth Floor
300 Virginia Street, East
Charleston, WV 25301WHEN: Thursday, April 12, 2018, at noon. The ceremony will immediately follow a reception and lunch beginning at 11:30 a.m.
WALK/RUN FOR JUSTICE & PRE-RACE CEREMONY:
WHO: United States Attorney Mike Stuart
James Bailey, Senior Counsel to Governor Jim Justice
Major General James A. Hoyer, West Virginia National Guard
Operation Reach Out committee members
Survivors of Crime
Other federal, state and local officials
Staff of United States Attorney’s Office, Southern District of West Virginia
WHAT: Walk/Run for Justice and Pre-Race Ceremony
WHERE: Haddad Riverfront Park, Kanawha Boulevard, Charleston, WV
WHEN: Friday, April 13, 2018. Registration to begin at 11:00 a.m. Ceremony at 11:30 a.m. Race at noon.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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5 April 2018
Wheeling man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Tysaun A. Pugh, of Wheeling, West Virginia, was arrested today and appeared in federal court to face drug charges after being indicted by a federal grand jury on April 3, 2018, United States Attorney Bill Powell announced.
Pugh, also known as “Chubbs,” age 20, was indicted on two counts of “Distribution of Heroin within 1,000 Feet of a Protected Location,” and one count of “Aiding and Abetting the Distribution of Heroin.” Pugh is accused of selling heroin near Jensen Playground and Wilson Playground in January 2018 in Ohio County.
Pugh faces up 40 years incarceration and a fine of up to $2,000,000 for each of the distribution counts and faces up to 20 years incarceration and a fine of up to $1,000,000 for the aiding and abetting count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, are investigating. The United States Marshals Service made the arrest.
U.S. Magistrate Judge James E. Seibert presided.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
West Tennessee Man Sentenced to 110 Months in Federal Prison for Possession and Receipt of Child PornographyRead the Press Release
Memphis, TN – A Cottage Grove, Tenn, man has been sentenced to 110 months in federal prison for possession and receipt of child pornography. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, in February 2017, law enforcement officers in Henry County, Tenn, received a lead out of Belvidere, Illinois, regarding Russell Jann, 44, of Cottage Grove. Based on that lead and the ensuing investigation, agents learned that Jann had been engaging in sexually explicit online chats and conversations via text messages with at least four minor victims ranging in age from 15 to 17 years old.
U.S. Attorney D. Michael Dunavant said, "Sexual predators who victimize children cannot hide from ultimate detection and aggressive prosecution by this office. This significant sentence will ensure accountability and incapacitation for the offender, promote deterrence of others who seek to prey upon children, and accomplish justice for the vulnerable victims in this disturbing case."
Jann exchanged messages with the victims containing pictures of his genitalia and videos of himself masturbating and received similar sexually explicit images and/or videos of at least 3 of the 4 minor victims. Agents also recovered a laptop computer and external hard drive from Jann’s home that contained thousands of images and videos of child pornography depicting children as young as infants. Jann pleaded guilty to receipt and possession of child pornography in November 2017.
On April 4, 2018, the Honorable J. Daniel Breen sentenced Jann to 110 months imprisonment and 5 years supervised release to begin after incarceration. He was also ordered to pay $4,000 in restitution.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexually exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visits www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources."
This case was investigated by the FBI, Belvidere Police Department, Belvidere, Illinois; and Henry County Sheriff’s Office.
Assistant U.S. Attorney Kasey Weiland prosecuted this case on the government’s behalf.
Wentzville Man Indicted for Impersonating an FBI AgentRead the Press Release
St. Louis, MO – Mark Van Ronzelen, 45, of Wentzville, was arrested today on an indictment charging him with impersonation of a Federal Bureau of Investigation (FBI) special agent and possession of a fraudulent FBI identification card.
The indictment alleges that on March 5, 2018, Van Ronzelen followed J.W.’s vehicle to J.W.’s residence and displayed to J.W. a fraudulent FBI identification card and law enforcement badge. Van Ronzelen advised J.W. that he was employed by the FBI.
If convicted, false impersonation of an officer carries a maximum penalty of 3 years in prison and a $250,000 fine. Possession of a fake government-issued card or badge carries a maximum penalty of 6 months in prison and a fine of $5,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
The FBI encourages anyone who has any information concerning this investigation to contact the FBI at 314-589-2500.
This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Waterville Man Sentenced Two Years for Illegal Receipt and Shipment of FirearmsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Iulian Petre, a/k/a “Julian Petre,” 51, of Waterville, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to two years in prison and three years of supervised release for illegally receiving and shipping firearms. He was convicted of these charges on August 28, 2017, following a six-day jury trial.
Court records and trial evidence revealed that in 2012 and 2013, Petre purchased and received firearms from out-of-state sellers intending to unlawfully export them. He shipped some of these firearms to Romania. The export of these firearms required authorization from the U.S. Department of State, which the defendant knowingly failed to obtain.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the U.S. Department of Commerce’s Bureau of Industry and Security.
Washington D.C. Woman Pleads Guilty to Providing Contraband to InmateRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tianna Thompson, age 26, of Washington D.C., pleaded guilty on April 4, 2018, before U.S. District Court Judge James M. Munley to the charge of providing contraband to an inmate at the United States Penitentiary at Canaan.
According to United States Attorney David J. Freed, Thompson admitted to providing several small packages of marijuana to inmate Charles Elegalam, age 30, formerly of Washington D.C., on July 1, 2017, during a social visit at the United States Penitentiary at Canaan. The marijuana packages were subsequently seized from Elegalam by prison staff members. Thompson and Elegalam were indicted by a grand jury in September 2017. The charges against Elegalam are currently pending.
Judge Munley ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara 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.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Valley, Alabama Woman Indicted for Filing False Tax Returns and Stealing from Her EmployerRead the Press Release
Montgomery, Ala. – A federal grand jury has returned an indictment, which was unsealed today, charging a woman with filing false tax returns and wire fraud, announced U.S. Attorney Louis V. Franklin, Sr. for the Middle District of Alabama, and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, from February 2007 through May 2014, Alita Baker Edeker (48) of Valley, Alabama stole over $500,000 of her employer’s funds for her own personal benefit and the benefit of others, by directing customer payments to debit and credit cards she controlled. The indictment further alleges that Edeker made false statements and representations in the company’s books and records in order to conceal her misappropriation. After misappropriating the funds, the indictment further alleges that Edeker willfully filed false U.S. individual income tax returns for tax years 2011, 2012, and 2013 that did not report the money.
If convicted Edeker faces a statutory maximum sentence of 20 years in prison for each wire fraud count and three years in prison for each count of filing a false tax return. Edeker also faces a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Attorney Franklin and Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and the Auburn Police Department, who investigated the case, and Tax Division Trial Attorney Grace Albinson and Assistant U.S. Attorney Ben Baxley, who are prosecuting this case.
United States Obtains $30.5 Million Fraud Judgment Against Texas-Based Lab Services Company and CEORead the Press Release
HOUSTON – A federal judge has ruled that BestCare Laboratory Services LLC and its founder and CEO Karim Maghareh defrauded Medicare by billing for thousands of miles that were not actually travelled, announced U.S. Attorney Ryan Patrick.
U.S. District Judge Lynn Hughes of the Southern District of Texas awarded the United States $30,571.635 in damages from the Webster, Texas - based company. BestCare serves nursing homes throughout Texas, including San Antonio, Dallas, Austin, Waco and El Paso.
Dr. Richard Drummond discovered the fraud after hiring a former BestCare employee and learning of their billing practices. Drummond filed suit under the False Claims Act which allows private citizens who know of fraud to file suit on behalf of the United States.
As detailed in that lawsuit, Medicare compensates laboratories which serve nursing home patients approximately a dollar per mile for technician travel. The travel must be for the purpose of collecting a specimen from a home-bound or nursing home-bound patient, not for the purpose of picking up and transporting specimens already collected. The miles are supposed to be pro-rated among the number of patients from whom they are collected.
The court found that BestCare not only failed to prorate miles, but shipped batches of specimens by air freight to Houston at a cost of approximately $100 per batch then billed Medicare for the round-trip distance between the nursing home and the lab in Webster.
The court found BestCare billed Medicare for $10.1 million in claims for miles which no lab tech traveled. The False Claims Act mandates trebling of the damages, resulting in a judgment of $30.5 million.
The FBI, U.S. Department of Health and Human Services – Office of Inspector General investigated the case along with the U.S. Attorney’s Office and Civil Division of the U.S. Department of Justice. Assistant U.S. Attorneys Michelle Zingaro and Daniel David Hu and Trial Attorney Richard Nicholson handled the matter.
Uniontown Man Facing Fraud and Tax Charges Related to His Embezzlement from His EmployerRead the Press Release
PITTSBURGH, PA -- A Fayette County resident has been indicted by a federal grand jury in Pittsburgh on charges alleging that he committed mail fraud, tax evasion, and willful failure to file income tax returns, United States Attorney Scott W. Brady announced today.
The four-count indictment, returned on April 4, named Eugene Traficante, 42, of Uniontown, Pennsylvania.
According to the indictment, Traficante was charged with one count of mail fraud, one count of tax evasion, and two counts of willful failure to file an income tax return, all based on his having embezzled more than $340,000 from his employer, Doyle Refrigeration Inc., a commercial refrigeration repair and maintenance services provider.
The law provides for a maximum total sentence of up to 20 years in prison and a fine of up to $250,000 for the mail fraud offense, up to five years in prison and a fine of up to $250,000 for tax evasion and up to one year in prison and up to a $100,000 fine for each count of conviction of failure to file tax returns. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Internal Revenue Service and the United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Postal Worker Pleads Guilty to Making Fraudulent Claims for Federal Workers’ Compensation BenefitsRead the Press Release
U.S. Attorney Duane A. Evans announces the guilty plea today by LEXY LOPEZ-BATEMAN, age 40, of Slidell, before U.S. District Judge Lance M. Africk.
According to court documents, LOPEZ-BATEMAN was an employee of the United States Postal Service when she suffered an on-the-job ankle injury in 2015. She was therefore entitled to workers compensation benefits, including costs of travel to and from medical appointments. However, beginning in 2015, she submitted fraudulent requests for reimbursement to the U.S. Department of Labor. Moreover, even though LOPEZ-BATEMAN completed her treatment in January 2016, she continued to submit fraudulent reimbursement requests through June 2017. LOPEZ-BATEMAN filed over 300 fraudulent claims in which she either exaggerated her mileage or where no medical appointment occurred. In total, LOPEZ-BATEMAN defrauded the U.S. government of $16,851.10.
LOPEZ-BATEMAN pleaded guilty to a bill of information charging her with making false statements in connection with receiving federal workers compensation benefits. She faces a minimum of 5 years in prison, a maximum $250,000.00 fine, and up to three years of supervised release. Sentencing is scheduled for June 28, 2018 at 1:30 p.m. before U.S. District Judge Lance M. Africk.
U.S. Attorney Evans praised the investigative efforts of the U.S. Postal Services Office of Inspector General. The prosecution is being handled by Assistant United States Attorney Matthew Payne.
U.S. Attorney’s Office Reaches Settlement with Gymnastics Center to Ensure Equal Access for Children with DisabilitiesRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office today reached an Americans with Disabilities Act (ADA) settlement with a Hammonton-based gymnastics program to ensure equal access for individuals with disabilities in its classes, U.S. Attorney Craig Carpenito announced.
The agreement resolves an ADA complaint filed by parents of a six year-old child with medical disabilities, including one that requires the use of a gastrointestinal feeding tube. The child’s parents alleged that Youth Fitness and Fun LLC d/b/a Flyers’ Team, Flyers’ Academy and Flyers Gymnastics Academy (“Flyers”) refused to make reasonable modifications to its program for the child and then excluded the child because of her disabilities. The child was active in other physically-demanding, age-appropriate sports, and was allowed by her physician to participate in Flyers’ program.
After conducting an investigation, the U.S. Attorney’s Office determined that Flyers excluded the child from its program in violation of the ADA. Flyers cooperated with the investigation and has agreed to develop and amend its policies and practices to comply with the ADA and the Department of Justice’s implementing regulations. Flyers has also agreed to pay $1,000 in damages to the child.
The Justice Department, including the nation’s U.S. Attorneys, plays a critical role in enforcing the ADA. Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public, including gymnasiums and other places of exercise and recreation. The law requires that these places of public accommodation make reasonable modifications to their policies, practices, and procedures when necessary to avoid discrimination on the basis of disability, unless the entity can show that making the modifications would fundamentally alter the nature of the service, program, or activity.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S. Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
Additional information about the ADA can be found at www.ada.gov or by calling the Department of Justice’s toll-free information line at 800-514-0301 and 800-514-0383.
This government is represented by Assistant U.S. Attorney David V. Simunovich of the U.S. Attorney’s Office Civil Division.
Two Indicted in Seizure of More Than $300,000 Worth of FentanylRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Ramon DeJesus Magana, 40, of Paramont, and Maurilio Serrano-Cardenas, 27, of Fontana, charging them with conspiring and possessing fentanyl with intent to distribute, U.S. Attorney McGregor W. Scott announced.
According to court documents, Magana and Serrano-Cardenas were arrested on February 21, 2018 after delivering five kilograms of fentanyl and one kilogram of a chemical that is an immediate precursor to fentanyl (4-ANPP) to an undercover officer in Turlock, California. The undercover officer had negotiated to pay $30,000 for each kilogram of the controlled substances.
This case is the product of an investigation by the Drug Enforcement Administration and TRIDENT, a federally supported task force that is composed of agents from the El Dorado County Sheriff’s Department, Auburn Police Department, Rocklin Police Department, Placer County Sheriff’s Department, Placer County District Attorney’s Office, California Highway Patrol, California Department of Corrections and Rehabilitation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bureau of Land Management, and California National Guard. Assistant U.S. Attorney Kathleen A. Servatius is prosecuting the case.
Magana is scheduled to be arraigned on the indictment on April 6, 2018. Serrano-Cardenas will make his initial appearance on April 19, 2018. Both men have been released on bond.
If convicted, the defendants face a maximum statutory penalty of life in prison and a $10 million dollar fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two District Men Found Guilty of Murder in 2014 Shooting in Southeast WashingtonRead the Press Release
WASHINGTON – Tyrone Michael Hight, 26, and James Young, 25, both of Washington, D.C., were found guilty by a jury today of murder and other charges stemming from the slaying of a man in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Hight and Young were found guilty of first-degree felony murder while armed, second-degree murder while armed, armed robbery, first-degree burglary while armed, tampering with evidence, obstruction of justice, and related weapons offenses. The verdicts followed a trial in the Superior Court of the District of Columbia. The defendants are scheduled to be sentenced on June 22, 2018 by the Honorable Milton C. Lee.
According to the government’s evidence, on the morning of Aug. 31, 2014, the victim, Willard Carlos Shelton, drove to the 2500 block of Pomeroy Road SE to purchase narcotics. About10 minutes after Mr. Shelton arrived, Hight and Young produced firearms, attempted to rob him, and then pistol-whipped him. Hight and Young then fired several shots at Mr. Shelton, who attempted to escape the onslaught of bullets.
One of the bullets struck Mr. Shelton in the abdomen, knocking him to the ground. Once the gunshots ended, Young went over to Mr. Shelton and took his personal effects, including his wallet and keys. Young then pointed a gun at Mr. Shelton’s head, but this time he did not fire. Mr. Shelton, 38, of Alexandria, Va., later died from his injuries.
Following the shooting, Hight and Young fled the scene, broke into a nearby apartment, and hid the firearms used to shoot Mr. Shelton. Young later attempted to obstruct justice by making threatening statements directed at a government witness. Hight later attempted to obstruct justice by convincing someone who was not a witness to the shooting to make false statements to law enforcement about the murder.
Hight and Young were arrested in September 2014 and have been in custody ever since.
In announcing the verdicts, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Liaison and Operations Manager Linda McDonald; Paralegal Specialists Debra Joyner, Sharon Newman, and Kelly Blakeley; Criminal Investigators John Marsh and Zachary McMenamin; Litigation Technology Specialists Leif Hickling, Anisha Bhatia, and Jeanie Latimore-Brown; Victim/Witness Services Coordinators M. Laverne Perry, Wanda Queen, Tanya Via, La June Thames and Katina Adams-Washington, and Victim/Witness Advocate Marcia Rinker.
Finally, she expressed appreciation for the work of Assistant U.S. Attorneys Richard Barker and Laura Crane, who investigated and prosecuted the case, as well as Assistant U.S. Attorneys Kendra Briggs, Jeffrey Nestler, Thomas Saunders, and former Assistant U.S. Attorney Robert Eckert, who investigated and indicted the case.