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Thursday 25 January 2018
Buffalo Man Sentenced in Narcotics ConspiracyRead 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 William Padovani, 37, of Buffalo, NY, who was convicted of narcotics conspiracy, was sentenced to 60 months in prison by Senior U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that in November 2014, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Buffalo. A search warrant was executed on the package, which contained cocaine and heroin packaged inside coffee grounds. After removing the controlled substances, the Drug Enforcement Administration conducted a controlled delivery of the package. During the delivery, the defendant arrived at the address and placed the package inside of his car. After he began to drive away, Padovani was arrested.
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, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Damone Robertson-Burts, 35, of Buffalo, NY, pleaded guilty to possession with intent to distribute, and distribution of, cocaine, and maintaining a drug-involved premises before Senior U.S. District Judge William M. Skretny. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on August 10, 2017, officers executed a federal search warrant at the defendant’s residence at 57 Roosevelt Avenue, after previously making three controlled buys of cocaine from the defendant. During the execution of the search warrant, officers recovered two packages of powder cocaine, $3,978 in cash, two digital scales with cocaine residue, a sifter with cocaine residue, and assorted ammunition.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt.
Sentencing is scheduled for May 7, 2018 before Judge Skretny.Buffalo Man Indicted on Fentanyl 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 a federal grand jury has returned an indictment charging Donald Hennings, 32, of Buffalo, NY, with possession with intent to distribute and distribution of 10 grams or more of butyryl fentanyl and furanyl fentanyl, and maintaining a drug-involved premises. The charges carry a minimum penalty of five years in prison and a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the indictment, between September 28, 2016, and November 17, 2016, law enforcement officers made 10 controlled purchases of substances containing butyryl fentanyl and furanyl fentanyl from the defendant using a confidential source (CS). Hennings conducted the transactions inside a Chevy Traverse at various locations in Buffalo, often in parking lots of high-traffic locations like supermarkets or gas stations. The defendant was surveilled before and after several of the purchases coming from or returning to his residence at 325 Southside Parkway in Buffalo.
A search warrant was subsequently executed at the defendant’s residence. Officers recovered quantities of butyryl fentanyl and furanyl fentanyl, and crack cocaine, along with distribution paraphernalia including a grinder, rubber bands, and glassine bags.
The indictment is the result of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.Brooklyn Man Sentenced to 100 Months’ Imprisonment for Gunpoint Robberies of PharmaciesRead the Press Release
Earlier today, in federal court in Brooklyn, Gregory St. Juste was sentenced to 100 months’ imprisonment by United States Chief District Judge Dora L. Irizarry for his role in three gun-point robberies of pharmacies. St. Juste had previously pled guilty on February 16, 2017 to Hobbs Act robbery conspiracy and brandishing a firearm during the conspiracy. On August 4, 2017, co-defendant Wensley Paul was sentenced to nine years’ imprisonment following his March 20, 2017 guilty plea to the same charges. On October 24, 2017 and November 15, 2017, respectively, co-defendants Max Narcisse, Jr. and Jeff Roselien pleaded guilty to the same charges and are awaiting sentencing.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, New York Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Gregory St. Juste and his co-conspirators caused employees and customers to fear for their lives during the armed robberies of the targeted pharmacies,” stated United States Attorney Donoghue. “Besides terrorizing his victims, the defendant stole oxycodone pills to resell on the street, contributing to the deadly opioid epidemic. This Office and our law enforcement partners continue to work tirelessly to hold accountable those who seek to profit from this scourge that has taken such a great toll on the community.”
“St. Juste and his co-conspirators committed brazen acts of violence that endangered many in his community,” stated Special Agent-in-Charge Benedict. “The violence was driven by the desire to profit from peddling death in the form of pills sold to individuals suffering through addiction. Thanks to the efforts of local and federal law enforcement, St. Juste will no longer be in a position to harm his community. I would like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case. I would also like to thank the Special Agents and NYPD Detectives of the ATF Joint Robbery Task Force for their investigative efforts that helped bring St. Juste to justice.”
According to court filings and statements at court proceedings, in August and September 2016, the defendants and their co-conspirators conducted a series of gunpoint robberies of pharmacies in Brooklyn. On August 16, 2016, two co-conspirators entered the Mill Basin Pharmacy on Avenue T. While inside, the perpetrators pulled out a revolver and entered the back of the pharmacy, causing store employees, one of whom was pregnant, to cower in the corner. The robbers made off with over $4,000 in prescription pills and merchandise, and escaped in a car driven by Roselien. On September 8, 2016, St. Juste and a co-conspirator entered This Way Pharmacy on Quentin Road. Inside the store, the robbers brandished a firearm, stole oxycodone pills and cash and again left in a getaway car driven by Roselien. On September 13, 2016, St. Juste and two other co-conspirators entered the Living Word Pharmacy located on Utica Avenue. St. Juste stormed into the back of the pharmacy and brandished a revolver. The robbers made off with oxycodone pills, employees’ cell phones and cash, and left in a getaway car driven by Roselien.
On September 26, 2016, St. Juste, Paul and Naricisse robbed the Mill Park Pharmacy on Avenue U. Upon entering the pharmacy, St. Juste pulled out a firearm and forced a store clerk to go behind a counter, demanding to know where the “oxy” was and threatening to shoot the clerk. Narcisse then went behind the counter to the cash register and placed cigarettes, cash and other items into a backpack, while Paul acted as a lookout. After a few minutes, the three perpetrators left the store and ran into the getaway car, which was driven by Roselien. Shortly after the perpetrators left the scene, NYPD officers recognized Roselien’s car from the prior robberies and pulled it over, arresting all four defendants. Upon searching the car, officers recovered a loaded, stolen .45 caliber pistol, as well as cash and the stolen merchandise.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Keith D. Edelman is in charge of the prosecution.
Defendant Sentenced Today:
GREGORY ST. JUSTE
Age: 21
Brooklyn, New YorkDefendant Previously Sentenced:
WENSLEY PAUL
Age: 25
Brooklyn, New YorkDefendants Awaiting Sentencing:
MAX NARICSSE, JR.
Age: 25
Brooklyn, New YorkJEFF ROSELIEN
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-554 (DLI)
Boone County man pleads guilty to federal opioid crimeRead the Press Release
CHARLESTON, W.Va. – A Boone County man pleaded guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Roger Dane Adkins, 45, of Morrisvale entered his guilty plea to obtaining hydromorphone and fentanyl by subterfuge. U.S. Attorney Stuart commended the Drug Enforcement Administration’s Tactical Diversion Squad and the Charleston Police Department for the investigation.
In 2016 and early 2017, Adkins was employed as a parcel delivery driver whose route included several Kanawha County pharmacies operating within hospitals or other medical service providers. In March 2017, a hospital pharmacist reported that controlled substances had been removed from a number of parcels that had been shipped for disposal. Investigators from DEA and the Charleston Police Department contacted other pharmacies in Charleston to see whether anyone else had experienced a similar loss. They identified several other pharmacies on the same route that had also reported the loss of controlled substances from parcels shipped to the same location for disposal.
On March 22, 2017, investigators coordinated with one of the pharmacies and the disposal location to set up the shipment of a dummy parcel containing a tracking device. Once Adkins took the parcel into his delivery vehicle, investigators approached and found him in the process of opening it. He waived his Miranda rights and admitted that he had been opening similar packages for several months in order to steal drugs. He further admitted that after removing some of the drugs, he would reseal and send the packages along the intended route in order to avoid detection.
Adkins faces up to four years in federal prison when he is sentenced on April 25, 2018.
Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Billings Man Sentenced to 11 Years in Prison for Meth OffenseRead the Press Release
BILLINGS—Billings resident Michael James Chapman was sentenced yesterday to 132 months of imprisonment and four years of supervised release after pleading guilty to possession with intent to distribute methamphetamine. United States District Judge Susan P. Watters presided over Chapman’s sentencing.
In March 2016, drug-task-force agents in Billings received information that Chapman, 47, was involved in the local distribution of methamphetamine. On April 6, 2016, agents located Chapman at a hotel in Billings and began surveilling him. During their surveillance, they observed Chapman conduct a hand-to-hand drug transaction. Officers stopped Chapman’s vehicle a short time later and he agreed to speak with agents about methamphetamine trafficking. His statements led to the seizure of approximately 2.75 pounds of methamphetamine from various locations in and around Billings. Historically, Chapman admitted to obtaining approximately six pounds of methamphetamine from sources in Utah for redistribution in the Billings community.
The case was prosecuted by Assistant U.S. Attorney John Sullivan and investigated by the FBI Transnational Organized Crime Western Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Baytown, Texas Men Sentenced in Covington Cocaine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that JOSE CARPIO, age 32, and LUIS ENRIQUE HERNANDEZ, age 22, both of Baytown, Texas, were sentenced after previously pleading guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine hydrochloride. HERNANDEZ additionally had pleaded guilty to possessing with the intent to distribute 500 grams or more of cocaine hydrochloride.
U.S. District Judge Nannette Jolivette Brown sentenced CARPIO to 46 months imprisonment, and HERNANDEZ to 60 months imprisonment.
On October 27, 2016, CARPIO and HERNANDEZ were two of four defendants charged in a two-count indictment. According to court documents, this investigation resulted in the seizure of 4,971 grams of cocaine hydrochloride, which the defendants had agreed to deliver from Texas to Covington, Louisiana.
Co-defendants include:
JUAN CHAVEZ, who pled guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine hydrochloride and to possession with intent to distribute 500 grams of hydrochloride, for which he was sentenced to 60 months incarceration.
JOACOBO JOSE SANTOS, who pled guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine hydrochloride, for which he awaits sentencing on March 22, 2018.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys Jeff Sandman and James Baehr are in charge of the prosecution.
Avondale Man Sentenced for Drug ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that TIMOTHY JOHNSON, age 35, a resident of Avondale, was sentenced January 23, 2018 after previously pleading guilty to one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and a quantity of heroin.
U.S. District Judge Kurt D. Engelhardt sentenced JOHNSON to a term of imprisonment of 60 months, 4 years of supervised release, and a $100 mandatory special assessment.
According to court documents, a search warrant executed at JOHNSON’s residence in 2013 discovered approximately 150 grams of cocaine, other controlled substances, and paraphernalia associated with the distribution of narcotics. A subsequent investigation in 2015 led to the interception of a package containing heroin intended for JOHNSON’s distribution
U. S. Attorney Evans praised the work of the Federal Bureau of Investigation, United States Postal Inspection Service, and Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys James S. C. Baehr and J. Ryan McLaren were in charge of the prosecution.
Austin Businessman Indicted in Wire Fraud SchemeRead the Press Release
In Austin, 47-year-old Charles McAllister, owner of Bullion Direct, Inc. (BDI), faces federal wire fraud and money laundering charges in connection with a scheme to defraud customers out of millions of dollars announced United States Attorney John F. Bash, Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Acting Special Agent in Charge Andy Tsui; and, Texas State Securities Board Commissioner Travis J. Iles.
A federal grand jury indictment unsealed on Tuesday charges McAllister with two counts of wire fraud and one count of engaging in a monetary transaction with criminally derived property.
The indictment alleges that from January 2009 through July 2015, McAllister perpetrated a scheme that falsely represented that funds obtained from individual customers would be used to purchase precious metals on behalf of the customer and either shipped directly to the customer or stored in BDI’s vault. Instead of buying the precious metals with the customer’s funds, McAllister spent the money on BDI corporate expenses, on other investment activities, and for his own personal use and benefit.
The indictment also seeks a monetary judgment in the case totaling $16,186,212.56. That sum represents the amount of proceeds obtained directly or indirectly from the defendant’s alleged scheme during the time of the indictment.
McAllister, who is currently on bond, has waived formal arraignment and entered a plea of not guilty to the indictment. No further court dates have been scheduled. Upon conviction, he faces up to 20 years in federal prison for each wire fraud count and up to ten years in federal prison for the money laundering charge.
Agents with the FBI, IRS-CI and the Texas State Securities Board conducted this investigation. Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Associate Attorney General Brand Announces End to Use of Civil Enforcement Authority to Enforce Agency Guidance DocumentsRead the Press Release
Today, as a follow-up to a memo issued by Attorney General Jeff Sessions in November, the Office of the Associate Attorney General issued a new policy that prohibits the Department of Justice from using its civil enforcement authority to convert agency guidance documents into binding rules. Under the Department’s new policy, Department civil litigators are prohibited from using guidance documents—or noncompliance with guidance documents—to establish violations of law in affirmative civil enforcement actions.
On November 17, 2017, Attorney General Jeff Sessions issued a memo prohibiting the Department of Justice from issuing guidance documents that have the effect of adopting new regulatory requirements or amending the law binding on persons or entities outside the Executive Branch. The memo prevents the Department of Justice from evading required rulemaking processes by using guidance memos to create de facto regulations. In the past, the Department of Justice and other agencies had blurred the distinction between regulations and guidance documents.
“Although guidance documents can be helpful in educating the public about already existing law, they do not have the binding force or effect of law and should not be used as a substitute for rulemaking,” Associate Attorney General Rachel Brand said. “Consistent with our duty to uphold the rule of law with fair notice and due process, this policy helps restore the appropriate role of guidance documents and avoids rulemaking by enforcement.”NOTE: The new policy can be found here.
Additional Members of Detroit-Based Gang “YNS” Charged with Racketeering, Kidnapping, and Trafficking Crack CocaineRead the Press Release
New charges were filed yesterday in the prosecution of the northwest Detroit street gang Young and Scantless (YNS).
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan; Special Agent in Charge James Dier of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division; and Police Chief James E. Craig of Detroit made the announcement.
The second superseding indictment charges George Eubanks, 30, of Detroit, and James Bowens, 37, of Detroit with taking part in the YNS racketeering enterprise. The charges describe YNS as one of the most dangerous in the city of Detroit, known for its ruthless reputation and violent acts including seeking to intimidate, injure and kill rival drug dealers to eliminate competition; attempting to instill fear in the community in order to discourage cooperation with police and witnesses from reporting YNS-related crime; and posting numerous intimidating photographs and videos to social media.
Five YNS members, including alleged leader Edward Tavorn, 31, of Detroit, were previously charged with a variety of crimes including a murder, robberies that turned into murders, shootings, a home invasion, arson, and narcotics distribution.
The latest indictment also charges Tavorn, Eubanks and Bowens with a narcotics conspiracy in which Eubanks and Bowens agreed to sell drugs in West Virginia on Tavorn’s behalf while Tavorn was incarcerated on pending charges. The indictment alleges that in furtherance of the plot, Eubanks and Bowens possessed firearms; Bowens kidnapped and fired gunshots at a victim to force the victim to rent a vehicle for gang members to use to transport narcotics to West Virginia; and Eubanks and Bowens possessed with intent to distribute approximately 550 grams of cocaine base.
The charges are the result of the Detroit One initiative, a collaborative effort between law enforcement and the community to reduce violent crime in Detroit.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the ATF’s Comprehensive Violence Reduction Partnership Task Force, consisting of representatives of the ATF, Detroit Police Department, Michigan State Police and Michigan Department of Corrections. Assistance has been provided by the West Virginia State Police. The case is being prosecuted by Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Jerome F. Gorgon Jr. of the U.S. Attorney’s Office of the Eastern District of Michigan.
Abbeville man sentenced to 70 years in prison for production, possession of child pornographyRead the Press Release
ALEXANDRIA, La. – United States Attorney Alexander C. Van Hook announced that a former Vermilion Parish middle school teacher was sentenced last week to 70 years in prison for making and possessing child pornography.
James Stacey Harber, 33, of Abbeville, La., previously of Ohio, was sentenced Friday by U.S. District Judge Dee D. Drell on three counts of production of child pornography and one count of possession of child pornography. He was also sentenced to a lifetime of supervised release and is required to register as a sex offender. According to the August 18, 2017 guilty plea, Harber began communicating with a woman in Abbeville while he was living in Ohio in 2010. They began having a sexual relationship online and communicating via online video. The woman later included her three minor children in the online sexual relationship. Harber moved to Abbeville in 2013 and gained employment at the Louisiana Office of Child Services and then as a middle school teacher. He sexually abused the woman’s children after moving to Louisiana in addition to recording sexually explicit images of them. Law enforcement agents searched Harber’s home on April 26, 2016 and found numerous images and videos of child pornography on various electronic media, which included images downloaded from the internet as well as images he recorded himself sexually exploiting the children.
“These types of horrific cases must not be allowed to continue,” said Van Hook. “It is vital that the public and people in the community help to bring these cases to light as happened in this case. This 70-year sentence shows our resolve to prosecute and convict to the fullest extent of the law.”
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security and Abbeville Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
5 Members of Washington Heights Drug Crew Charged with Distribution of Cocaine, Heroin, and FentanylRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent-in-Charge of the New York Division of the Drug Enforcement Administration (“DEA”), James P. O’Neill, Police Commissioner of the City of New York (“NYPD”), and George P. Beach II, the Superintendent of the New York State Police (“NYSP”), announced today the unsealing of an Indictment charging AMIN HERNANDEZ, a/k/a “Face,” MIGUEL GIL, JORALBI LORA, a/k/a “K,” ISMAEL GARCIA, a/k/a “Swiss,” and FRANCISCO TIBULCIOMERINO, a/k/a “Cousin,” with conspiring to distribute crack cocaine, powder cocaine, heroin, fentanyl, and acetyl fentanyl in Washington Heights. HERNANDEZ, LORA, and TIBULCIOMERINO were arrested last night, and will be presented today before United States Magistrate Judge Andrew J. Peck. GIL and GARCIA are already in state custody and will be transferred to federal custody shortly. The case has been assigned to U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, this drug crew was responsible for distributing highly addictive drugs, including fentanyl, an extremely lethal drug 50 to 100 times more potent than morphine. These arrests are part of our continued commitment to stem the opioid epidemic that is plaguing our nation and our City. We thank our partners in the NYPD and DEA for their outstanding work in this investigation.”
DEA Special Agent-In-Charge James J. Hunt said: “As drug overdose rates rise throughout the country, this drug crew allegedly pushed a toxic medley of drugs onto our streets. We will continue to investigate traffickers at all levels in an effort to stop the number of overdoses and drug-related fatalities.”
Commissioner James P. O’Neill said: “This group was allegedly involved in the business of bringing potentially deadly drugs to the streets of Washington Heights. But now they have learned that our Drug Enforcement Task Force is in the business of bringing them to the halls of justice.”
As alleged in the Indictment unsealed today[1]:
AMIN HERNANDEZ, a/k/a “Face,” MIGUEL GIL, JORALBI LORA, a/k/a “K,” ISMAEL GARCIA, a/k/a “Swiss,” and FRANCISCO TIBULCIOMERINO, a/k/a “Cousin,” conspired to distribute 280 grams and more of cocaine base, or “crack,” 500 grams and more of powder cocaine, heroin, fentanyl, and acetyl fentanyl. Each defendant faces a mandatory minimum sentence of ten years in prison, and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
* * *
Mr. Berman praised the outstanding work of the DEA, the NYPD, and the State Police. This case was done by NYPD and DEA’s REDRUM group in the New York Drug Enforcement Task Force. The Task Force comprises agents and officers of the DEA, New York City Police Department, and New York State Police.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Rachel Maimin is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment, and the descriptions of the Indictment set forth below, constitute only allegations, and every fact described should be treated as an allegation.
Wednesday 24 January 2018
West Tennessee Dentist Sentenced to Federal Prison for Tax EvasionRead the Press Release
Memphis, TN – A Shelby County, Tennessee, resident was sentenced to 12 months in prison today for evading payment of taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 45, owned the Henry Polk Dental Group D.P.C. and the Smile Spa LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008 and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing, and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
In addition to the term of prison imposed, U.S. District Judge John T. Fowlkes, Jr. ordered Henry to serve three years of supervised release and to pay $653,116.78 in restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney D. Michael Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee, who prosecuted the case.
Virginia Man Convicted of Anti-Gay Hate CrimeRead the Press Release
A federal jury convicted a Virginia man of committing a hate crime for assaulting a co-worker at the Amazon Fulfillment Center in Chester in May 2015.
James William Hill III, 36, of Chester, was found guilty yesterday of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his assault on a co-worker at the Amazon Fulfillment Center on May 22, 2015. Evidence showed that Hill assaulted the co-worker because of the co-worker’s perceived sexual orientation. Hill admitted to an Amazon manager and a Chesterfield County Police Officer that he dislikes people who are gay, and further stated that people who are gay should expect to be assaulted because of their sexual orientation.
Hill faces a maximum penalty of 10 years in prison when sentenced at a later date. 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.
John M. Gore, Acting Assistant Attorney General for the Civil Rights Division, Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the verdict was accepted by U.S. District Judge John A. Gibney. Assistant U.S. Attorney S. David Schiller, and Trial Attorney Saeed Mody of the Civil Rights Division’s Criminal Section prosecuted the case.
This case was investigated by the FBI with assistance from the Chesterfield County Police Department.
Virginia Man Convicted of Anti-Gay Hate CrimeRead the Press Release
RICHMOND, Va. – A federal jury convicted a Virginia man of committing a hate crime for assaulting a co-worker at the Amazon Fulfillment Center in Chester in May 2015.
James William Hill III, 36, of Chester, was found guilty yesterday of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his assault on a co-worker at the Amazon Fulfillment Center on May 22, 2015. Evidence showed that Hill assaulted the co-worker because of the co-worker’s perceived sexual orientation. Hill admitted to an Amazon manager and a Chesterfield County Police Officer that he dislikes people who are gay, and further stated that people who are gay should expect to be assaulted because of their sexual orientation.
Hill faces a maximum penalty of 10 years in prison when sentenced at a later date. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, John M. Gore, Acting Assistant Attorney General for the Civil Rights Division, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Colonel Jeffrey S. Katz, Chief of Chesterfield County Police Department, made the announcement after the verdict was accepted by U.S. District Judge John A. Gibney. Assistant U.S. Attorney S. David Schiller, and Trial Attorney Saeed Mody of the Civil Rights Division’s Criminal Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-009.
U.S. Citizen Pleads Guilty to Passport and Citizenship FraudRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Jose Alberto Hernandez (45, Tampa) has pleaded guilty to making a false statement in an application for a U.S. Passport and to making a false statement in connection with an application for U.S. citizenship. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, Hernandez is a Dominican national who illegally entered the United States through the Mexican border on or about January 21, 1999. On February 14, 2001, he married an American citizen living in Tampa. On December 12, 2007, Hernandez appeared at the Tampa U.S. Citizenship and Immigration Services office for an interview in connection with his petition to remove conditions of his residency. Later that month, he went to a U.S. Postal facility in Tampa and applied for a U.S. Passport under the identity of Jose Angel Santos Figueroa. As proof of his citizenship, Hernandez presented a Puerto Rico birth certificate and Florida driver license, all belonging to Jose Angel Santos Figueroa. On January 8, 2008, Hernandez was granted a U.S. Passport under the name Jose Santos Figueroa.
On December 12, 2008, Hernandez submitted an application for U.S. citizenship under his own identity that contained several false statements. On October 28, 2009, he became a naturalized citizen of the United States. As a result of this conviction, he now faces denaturalization and the mandatory revocation of his citizenship.
This case was investigated by the U.S. Department of Homeland Security Investigations and the U.S. Department of State, Diplomatic Security Services. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
U.S. Attorney's Office enters settlement with Rite Aid based on improper sales of meth precursor pseudoephedrineRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced a deal today between the United States Attorney’s Office and Rite Aid Corporation to resolve a criminal investigation in the Southern District of West Virginia regarding Rite Aid’s improper sale of the methamphetamine precursor pseudoephedrine (PSE) between January 2009 and October 2012. Signed by U.S. Attorney Stuart today, the settlement includes Rite Aid’s full acceptance of responsibility for its improper sale of the methamphetamine precursor PSE, it acknowledges Rite Aid’s remedial efforts and ensures future steps to help prevent abuse of pseudoephedrine, and it mandates that Rite Aid pay $4 million dollars, which is approximately 80% of its gross sales of pseudoephedrine in West Virginia during the relevant time period, to provide resources for crime victim compensation and treatment of drug addiction.
“This settlement sends a strong message to businesses that we will not tolerate putting sales over safety. Most significantly, every dollar paid out by Rite Aid is going to stay right here in West Virginia, and not go into the black hole of Washington,” stated U.S. Attorney Stuart. “This funding will provide increased resources for two critical areas – compensating crime victims and drug treatment. Rest assured that my office will keep fighting to ensure that anyone responsible for the drug scourge in our state is held responsible, from the suppliers to the pharmacies to the street dealers poisoning our communities.”
“Regulation of drugs such as pseudoephedrine is critical to improving West Virginia’s substance abuse epidemic,” said Bill J. Crouch, Cabinet Secretary of the West Virginia Department of Health and Human Resources. “This funding will support DHHR’s ongoing efforts to strengthen substance abuse treatment programs and ultimately improve the health and well-being of impacted residents across the state.”
DEA’s Assistant Special Agent in Charge David W. Gourley stated, “Even though the opioid crisis has been in the forefront, we will not neglect any investigations of other dangerous drugs which are readily available in the state of West Virginia. Methamphetamine use is on the rise. This is a reminder to pharmacies out there not to turn a blind eye to their responsibilities under the Controlled Substances Act.”
“We are grateful to the U.S. Attorney’s Office for including the West Virginia Crime Victims Compensation Fund as a recipient of this settlement,” stated Aaron Allred, Legislative Manager, West Virginia Legislature. “These funds will allow us to assist even more West Virginians as they try to rebuild their lives after being innocent victims of crime. These funds will be used to pay medical bills, provide medical devices, pay for burial and funeral services, lost wages, counseling and other economic losses sustained by victims of crime in our state.”
The $4 million dollar payment will stay entirely in West Virginia. Per the settlement, Rite Aid must pay $2.6 million to the West Virginia Crime Victims Compensation Fund. That figure is more than double the total federal grants the Fund receives in an entire year, and is just shy of the total amount of money the Fund paid to crime victims in all of 2016 and 2017 combined. The settlement further requires Rite Aid to pay $1.4 million to the West Virginia Department of Health and Human Resources. As a condition of his agreement to this settlement, U.S. Attorney Stuart required the agreement of DHHR to use this funding for substance abuse treatment to help fight addiction.
U.S. Attorney Stuart praised the investigative efforts that led to this settlement: “I want to strongly commend the DEA, assisted by the FBI, and the tremendous work of our team and the leadership of AUSAs Steve Loew and Greg McVey, who handled this complex case for the U.S. Attorney’s Office. Job well done.”
During the investigation, Rite Aid has taken remedial actions to comply with federal law and to help ensure that PSE is sold only to people who have a legitimate need for it. The agreement requires Rite Aid to continue those remedial steps and to take additional action. For example, in November 2013, Rite Aid removed single ingredient PSE products (the PSE product preferred by manufacturers of methamphetamine) from its stores, and now only sells tamper-resistant, single-ingredient PSE products in West Virginia. Importantly, Rite Aid will now train its employees on how to identify people who may be purchasing PSE to manufacture methamphetamine, and it will further train and instruct its employees to deny such sales. Furthermore, Rite Aid will continue requiring stores in West Virginia to store PSE products out of the view of customers to make it easier and safer for store employees to deny suspicious sales, and Rite Aid will require pharmacists to counsel all customers seeking to purchase PSE.
A fact sheet highlighting the terms of the settlement is attached to this press release.
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Two felons sentenced to federal prison for gun crimesRead the Press Release
BECKLEY, W.Va. – Two felons were sentenced to federal prison today for gun crimes, announced United States Attorney Mike Stuart. Jerry Wayne Phillips, Jr., 40, of Beckley, was sentenced to three years and 10 months in prison after previously pleading guilty to being a felon in possession of a firearm. In a separate prosecution, Cleveland McDowell Meador, IV, 44, of St. Albans, was sentenced to two years in prison after being convicted of being a felon in possession of a firearm following a one-day jury trial.
U.S. Attorney Stuart commended the Beckley Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the investigation of Phillips, and the St. Albans Police Department and the ATF for the investigation of Meador.
Phillips admitted that on June 23, 2016, he possessed six stolen firearms, including a Marlin, Model 30AW, .30/.30 caliber rifle; a Norinco, Model Type 56 SKS, 7.62x39mm rifle; a Mossberg, Model 500, 12 gauge shotgun; a Keystone Sporting Arms, Model Cricket, .22 caliber rifle; a Winchester, Model 190, .22 caliber rifle; and a Rossi (Taurus), Model S411220BS, .410/.22 caliber rifle. Phillips was prohibited from possessing any firearms under federal law because of a 1998 felony drug conviction in Raleigh County Circuit Court and a 2004 misdemeanor conviction for domestic violence.
In a separate prosecution, witnesses for the United States testified that on May 10, 2017, Meador gave permission to officers with the St. Albans Police Department to search his home on Bard Avenue in St. Albans. During the search, an officer discovered a Hi-Point, Model C9, 9mm pistol in an air register vent in the ceiling of Meador’s home. After Meador’s arrest, law enforcement read him his Miranda rights and in a recorded interview, Meador admitted that he put the gun in the air register vent, that he was a convicted felon, and that he knew that he was not supposed to have a gun. Meador was prohibited from possessing any firearm under federal law because of a 2016 felony conviction in Kanawha County Circuit Court for third offense driving while license revoked for driving under the influence.
United States District Judge Irene C. Berger imposed the sentence in the Phillips case. United States District Judge Joseph R. Goodwin presided over the Meador trial and imposed the sentence.
These cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Two Lewisburg defendants sentenced to federal prison for oxymorphone crimesRead the Press Release
BECKLEY, W.Va. – Two Lewisburg defendants were sentenced to federal prison today for drug crimes, announced United States Attorney Mike Stuart. Joshua Adam Smith, 35, was sentenced to eight years in prison after previously pleading guilty to distribution of oxymorphone. Jessica Nicole Honaker, 26, was sentenced to two years in prison after previously pleading guilty to aiding and abetting the distribution of oxymorphone. U.S. Attorney Stuart commended the Greenbrier Valley Drug and Violent Crime Task Force for the investigation.
Smith admitted on November 6, 2016, he distributed oxymorphone to a confidential informant working with law enforcement. Honaker admitted that on November 17, 2016, she distributed oxymorphone to a confidential informant to complete a drug deal that Smith had arranged. Both of the drug deals took place at a residence on Battle Hill Drive in Lewisburg. As part of their plea agreements, Smith and Honaker took responsibility for all of the drug trafficking activity charged in the indictment. Smith and Honaker also admitted that, along with their codefendant Tremaine Dean Pool, Jr., they had distributed, or possessed with the intent to distribute, a total of about 300 oxymorphone pills. Pool has pled guilty to possession with intent to distribute oxymorphone and faces up to 20 years in federal prison when he is sentenced on April 18, 2018.
Assistant United States Attorney John File handled these prosecutions. United States District Judge Irene C. Berger imposed the sentences.
These defendants were prosecuted under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Individuals Plead Guilty to Possession of Electronic Image of CurrencyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brandon Everett Barker, age 36, of Austin, Texas; and Michelle Denise Carson, age 39, of Indianapolis, Indiana, each pled guilty to one count of Possession Of An Electronic Image Of An Obligation Of The United States, in violation of Title 18 United States Code, Sections 474(a) and 2, punishable by not more than 25 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about September 17, 2017, in the Eastern District of Oklahoma, the defendants, Brandon Everett Barker and Michelle Denise Carson, did unlawfully and with intent to defraud, have in in their control, custody, and possession, a digital and electronic image of an obligation or other security of the United States, to wit: a one hundred dollar bill.The charges arose from an investigation by the Atoka Police Department and the United States Secret Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Two Buffalo Men Indicted on Fentanyl 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 a federal grand jury has returned an indictment charging Jerell Weathersby, 21, and Dontrell Wise, 31, both of Buffalo, NY, with conspiracy to possess with intent to distribute a mixture and substance containing butyryl fentanyl, a Schedule I controlled substance. The charge carries a maximum of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that according to the indictment and a previously filed complaint, on November 09, 2017, at approximately 11:40 p.m., two Buffalo Police officers stopped a rental vehicle in the area of Erb Street after detecting the smell of marijuana as the vehicle passed. Officers also noticed the rental vehicle appeared to have aftermarket window tint in violation of New York State vehicle and traffic law. Dontrell Wise was the driver and Jerell Weathersby was a passenger.
During a pat down of Weathersby, officers found a clear bag of what was believed to be powdered cocaine in his pant pocket. Weathersby stated to officers that it was morphine, which he was taking for a toothache. Forensic testing determined that the substance was actually butyryl fentanyl. Weathersby, who also had two phones and approximately $1,000 in cash, was arrested at the scene.
During a pat down of Wise, officers recovered approximately $6,000 in cash which Wise stated was from working in a restaurant. According to Wise’s Pennsylvania Board of Probation and Parole Agent, the defendant works in a warehouse in Erie, Pennsylvania, and is not allowed into New York State without parole approval. On December 14, 2017, Wise told the Pennsylvania Board of Probation and Parole office that he was not in Buffalo on November 9, 2017, and that someone used his name without his knowledge.
On November 11, 2017, in the area of West Ferry Avenue, Wise and Weathersby were again stopped by the same two officers but in a different rental vehicle. Once again, the officers detected a strong odor of marijuana. Both men were ordered out of the vehicle. The officers observed two large bulges in Wise’s front pant pockets which the defendant responded was approximately $11,000 in cash. Following a pat down, officers confirmed that the bulges were large bundles of cash.
The defendants are being held pending arraignment on January 25, 2018 at 10:00 a.m. before U.S. Magistrate Judge Jeremiah J. McCarthy.
The complaint is the result of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Buffalo Police Department, under the direction of Acting Police Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
Two Argentine Men Sentenced for Passing Counterfeit CurrencyRead the Press Release
Jackson, Miss. – Gonzalo De La Fuente, 23, and Alejandro Boynak, 35, both citizens of Argentina who came to the United States on tourist visas, were sentenced yesterday by U.S. District Judge Henry T. Wingate to serve 17 months in federal prison for possessing and passing counterfeit currency in Meridian, announced U.S. Attorney Mike Hurst and United States Secret Service Special Agent in Charge Michael Williams.
On July 17, 2017, De La Fuente and Boynak were arrested by the Meridian Police Department at the Wal-Mart in Meridian, where they attempted to pass counterfeit $100 bills while making small purchases. Upon their arrest, officers found approximately $100,000 in counterfeit and genuine United States currency in their possession. Both defendants pled guilty to federal charges on October 25, 2017.
Both defendants will be subject to deportation after serving their full prison sentences, and they will be subject to three years of supervised release if they return to the United States.
The case was investigated by the Meridian Police Department and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Dave Fulcher.
Trussville Man Sentenced to 15½ Years in Federal Prison for Child PornographyRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced a Trussville man to more than 15 years in prison for distributing and possessing child pornography, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
U.S. District Judge R. David Proctor sentenced BRIAN WAYNE RAY, 55, to 15 years and eight months in prison. Ray pleaded guilty in October to one count of distributing child pornography between March 9, 2016, and March 15, 2016, using the internet and an email account. He also pleaded guilty to one count of possessing child pornography between Feb. 14, 2016, and July 5, 2016, in Jefferson County.
“Long prison sentences are well-deserved for both defendants in this case,” Town said. “Mr. Ray assumed different personas to troll the internet for child pornography and Ms. Galloway produced and provided pornographic images of a child she should have been protecting. Fortunately, neither one of these individuals will be near children for years to come.”
Judge Proctor last year sentenced Ray’s co-defendant, Jennifer Lynne Galloway, 34, of Shelby County, to 24 years and six months in prison for producing child pornography of an eight-year-old relative in 2015.
After Galloway took the explicit photos of the child, she sent them to a man she knew as Cory Haynes, whom she had met on the internet. Haynes actually was Ray, according to his plea agreement with federal prosecutors. FBI investigators discovered the pornographic images that Galloway produced attached to emails between Ray and a man living in Washington, D.C., according to the plea agreement. The FBI also located other images of child pornography within Ray’s email account.
The FBI investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes prosecuted.
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Three Clerical Workers Charged for Participating in the Operation of a Montgomery “Pill Mill”Read the Press Release
Montgomery, Ala. – This week, Misty Michelle Fannin, 41, of Tallassee, Alabama, Jacqueline Suzanne Brownfield, 33, of Wetumpka, Alabama, and Akash Kumar, 27, of Montgomery, Alabama, were arrested in connection with the ongoing investigation and prosecution of a “pill mill,” announced United States Attorney Louis V. Franklin, Sr.
All of the defendants are alleged to have assisted Dr. Gilberto Sanchez in operating a “pill mill,” out of Family Practice, a medical clinic located at 4143 Atlanta Highway in Montgomery. Dr. Gilberto Sanchez, previously a Montgomery physician, owned Family Practice. In November 2017, Dr. Sanchez pled guilty in federal court to drug distribution, health care fraud, and money laundering charges.
The indictment in this case alleges that Fannin worked as an office administrator for Sanchez and, in that role, helped Sanchez to launder the money generated by the illegal drug distribution. It also states that Brownfield and Kumar worked in the practice’s billing office and used their positions to commit health care fraud by overbilling for services provided by the nurse practitioners.
If convicted, Fannin faces a maximum sentence of 20 years’ imprisonment on the money laundering charges. Brownfield and Kumar face maximum sentences of 10 years’ imprisonment if convicted of health care fraud. All defendants could also be assessed substantial fines and other monetary penalties.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad, the Internal Revenue Service’s Criminal Investigation Division, and the United States Department of Health and Human Services – Office of Inspector General. The Montgomery County, Alabama Sheriff’s Office, the Alabama Board of Medical Examiners, the Montgomery, Alabama Police Department, the Opelika, Alabama Police Department, and the Elmore County Sheriff’s Office assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross and R. Rand Neeley are prosecuting the case.
Texas Man Sentenced for Conspiring to Illegally Export Radiation Hardened Integrated Circuits to Russia and ChinaRead the Press Release
Peter Zuccarelli, 62, of Plano, Texas was sentenced today to 46 months in prison for conspiring to smuggle and illegally export from the U.S. in violation of the International Emergency Economic Powers Act (IEEPA), radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia. Zuccarelli was also sentenced to three years supervised release and a $50,000 fine.
Acting Assistant Attorney General for National Security Dana J. Boente and U.S. Attorney for the Eastern District of Texas Alan R. Jackson made the announcement after Zuccarelli was sentenced by U.S. District Judge Amos Mazzant.
According to the plea agreement, between approximately June 2015 and March 2016, Zuccarelli and his co-conspirators agreed to illegally export RHICs to China and Russia. RHICs have military and space applications, and their export is strictly controlled. In furtherance of the conspiracy, Zuccarelli’s co-conspirator received purchase orders from customers seeking to purchase RHICs for use in China’s and Russia’s space programs. Zuccarelli received these orders from his co-conspirator, as well as payment of approximately $1.5 million to purchase the RHICs for the Chinese and Russian customers. Zuccarelli placed orders with U.S. suppliers, and used the money received from his co-conspirator to pay the U.S. suppliers. In communications with the U.S. suppliers, Zuccarelli certified that his company, American Coating Technologies, was the end user of the RHICs, knowing that this was false. Zuccarelli received the RHICs he ordered from U.S. suppliers, removed them from their original packaging, repackaged them, falsely declared them as “touch screen parts,” and shipped them out of the U.S. without the required licenses. He also attempted to export what he believed to be RHICs. In an attempt to hide the conspiracy from the U.S. government, he created false paperwork and made false statements.
This case was investigated by the Dallas and Denver Offices of the Department of Homeland Security, Homeland Security Investigations; the FBI; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; the Department of Defense, Defense Criminal Investigative Service; and the U.S. Postal Inspection Service. This case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.
Tennessee Dentist Sentenced to Prison for Tax EvasionRead the Press Release
A Shelby County, Tennessee, resident was sentenced to 12 months in prison today for evading payment of taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Michael Dunavant for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 45, owned The Henry Polk Dental Group D.P.C. and The Smile Spa LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008, and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing, and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
In addition to the term of prison imposed, U.S. District Court Judge John T. Fowlkes, Jr. ordered Henry to serve three years of supervised release and to pay $653,116.78 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tennessee Chiropractor Pays More Than $1.45 Million to Resolve False Claims Act AllegationsRead the Press Release
A Lenior City, Tennessee, chiropractor has paid $1.45 million, plus interest, to resolve False Claims Act violations, announced U.S. Attorney General Jeff Sessions and U.S. Attorney Don Cochran of the Middle District of Tennessee. The settlement also calls for a Cookeville, Tennessee, pain clinic nurse practitioner to pay $32,000 and surrender her DEA registration to settle allegations that she violated the Controlled Substances Act.
Matthew Anderson and his management company, PMC LLC, managed four pain clinics in Tennessee, most recently known as; Cookeville Center for Pain Management; Spinal Pain Solutions in Harriman; Preferred Pain Center of Grundy County in Gruetli Laager; and McMinnville Pain Relief Center. All of these clinics are now closed.
“More Americans are dying because of drugs today than ever before—a trend that is being driven by opioids,” said Attorney General Jeff Sessions. “If we’re going to end this unprecedented drug crisis, which is claiming the lives of 64,000 Americans each year, doctors must stop overprescribing opioids and law enforcement must aggressively pursue those medical professionals who act in their own financial interests, at the expense of their patients’ best interests. Today’s settlement is a positive step that will help save lives, as well as protect taxpayers’ money, in Tennessee and across the United States.”
“As evidenced here, we will use all available resources, including civil remedies, to pursue those whose actions continue to fuel the opioid epidemic plaguing our nation,” said U.S. Attorney Cochran. “In this case, a concerned whistleblower brought a civil suit which has ultimately held those responsible for the illicit prescribing of opioids and at the same time cheating the taxpayers by causing federal healthcare programs to pay for such highly addictive drugs. We will continue to give the highest priority to fighting opioid abuse on all fronts.”
The settlement with Anderson and PMC resolves the governments’ claims that from 2011 through 2014, they caused pharmacies to submit requests for Medicare and TennCare payments for pain killers, including opioids, which were dispensed based upon prescriptions written at the Cookeville Center for Pain Management and which had no legitimate medical purpose. The United States also contended that Anderson caused all four clinics to bill Medicare for upcoded claims for office visits that were not reimbursable at the levels sought. In addition, the United States claimed that Anderson and PMC caused the submission of Medicare claims by the Cookeville and Harriman clinics for services provided by two nurse practitioners who were not collaborating with a physician as required by Tennessee law during parts of 2011 and 2012.
Under the settlement agreement, Anderson and PMC paid a total of $1,450,000, plus interest. Of that amount, the United States will receive $1,040,275, and the State of Tennessee will receive $163,225. Anderson and PMC also agreed to be excluded from billing federal health care programs for five years. Three of the clinics will also forfeit $53,840, which the United States seized from the clinics’ bank accounts.
The settlement agreement also calls for Cindy Scott, a nurse practitioner from Nashville, to pay $32,000 and to surrender her DEA registration until October 2021. Scott is prohibited from prescribing medications until her DEA registration is renewed.
“The opioid epidemic has had a crushing effect on patients and families across middle Tennessee,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “Pill mills like these billed medically unnecessary services to Medicare and TennCare and contributed to problems of opioid abuse and addiction.”
The United States and Tennessee initiated this investigation after a former office manager for the Cookeville Center for Pain Management filed a qui tam lawsuit against Anderson, Scott, three pain clinics, and others. The qui tam, or whistleblower, provisions of the False Claims Act allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. The whistleblower will receive $246,500 under the settlement with Anderson and lesser amounts under the settlements with Scott and the three pain clinics.
The case was handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office and investigated by the Department of Health and Human Services - Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Ellen Bowden McIntyre represented the United States, and Assistant Attorney General Philip Bangle represented the State of Tennessee.
The case is docketed as United States ex rel. Norris v. Anderson, No. 3:12-cv-00035 (M.D. Tenn.). The claims in the complaint are allegations only, and there has been no determination of liability.
Tennessee Chiropractor Pays More Than $1.45 Million to Resolve False Claims Act AllegationsRead the Press Release
A Lenior City, Tennessee, chiropractor has paid $1.45 million, plus interest, to resolve False Claims Act violations, announced U.S. Attorney General Jeff Sessions and U.S. Attorney Don Cochran of the Middle District of Tennessee. The settlement also calls for a Cookeville, Tennessee, pain clinic nurse practitioner to pay $32,000 and surrender her DEA registration to settle allegations that she violated the Controlled Substances Act.
Matthew Anderson and his management company, PMC LLC, managed four pain clinics in Tennessee, most recently known as; Cookeville Center for Pain Management; Spinal Pain Solutions in Harriman; Preferred Pain Center of Grundy County in Gruetli Laager; and McMinnville Pain Relief Center. All of these clinics are now closed.
“More Americans are dying because of drugs today than ever before—a trend that is being driven by opioids,” said Attorney General Jeff Sessions. “If we’re going to end this unprecedented drug crisis, which is claiming the lives of 64,000 Americans each year, doctors must stop overprescribing opioids and law enforcement must aggressively pursue those medical professionals who act in their own financial interests, at the expense of their patients’ best interests. Today’s settlement is a positive step that will help save lives, as well as protect taxpayers’ money, in Tennessee and across the United States.”
“As evidenced here, we will use all available resources, including civil remedies, to pursue those whose actions continue to fuel the opioid epidemic plaguing our nation,” said U.S. Attorney Cochran. “In this case, a concerned whistleblower brought a civil suit which has ultimately held those responsible for the illicit prescribing of opioids and at the same time cheating the taxpayers by causing federal healthcare programs to pay for such highly addictive drugs. We will continue to give the highest priority to fighting opioid abuse on all fronts.”
The settlement with Anderson and PMC resolves the governments’ claims that from 2011 through 2014, they caused pharmacies to submit requests for Medicare and TennCare payments for pain killers, including opioids, which were dispensed based upon prescriptions written at the Cookeville Center for Pain Management and which had no legitimate medical purpose. The United States also contended that Anderson caused all four clinics to bill Medicare for upcoded claims for office visits that were not reimbursable at the levels sought. In addition, the United States claimed that Anderson and PMC caused the submission of Medicare claims by the Cookeville and Harriman clinics for services provided by two nurse practitioners who were not collaborating with a physician as required by Tennessee law during parts of 2011 and 2012.
Under the settlement agreement, Anderson and PMC paid a total of $1,450,000, plus interest. Of that amount, the United States will receive $1,040,275, and the State of Tennessee will receive $163,225. Anderson and PMC also agreed to be excluded from billing federal health care programs for five years. Three of the clinics will also forfeit $53,840, which the United States seized from the clinics’ bank accounts.
The settlement agreement also calls for Cindy Scott, a nurse practitioner from Nashville, to pay $32,000 and to surrender her DEA registration until October 2021. Scott is prohibited from prescribing medications until her DEA registration is renewed.
“The opioid epidemic has had a crushing effect on patients and families across middle Tennessee,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “Pill mills like these billed medically unnecessary services to Medicare and TennCare and contributed to problems of opioid abuse and addiction.”
The United States and Tennessee initiated this investigation after a former office manager for the Cookeville Center for Pain Management filed a qui tam lawsuit against Anderson, Scott, three pain clinics, and others. The qui tam, or whistleblower, provisions of the False Claims Act allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. The whistleblower will receive $246,500 under the settlement with Anderson and lesser amounts under the settlements with Scott and the three pain clinics.
The case was handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office and investigated by the Department of Health and Human Services - Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Ellen Bowden McIntyre represented the United States, and Assistant Attorney General Philip Bangle represented the State of Tennessee.
The case is docketed as United States ex rel. Norris v. Anderson, No. 3:12-cv-00035 (M.D. Tenn.). The claims in the complaint are allegations only, and there has been no determination of liability.
Texas Man Sentenced for Conspiring to Illegally Export Radiation Hardened Integrated Circuits to Russia and ChinaRead the Press Release
SHERMAN, Texas - Peter Zuccarelli, 62, of Plano, Texas was sentenced today to 46 months in prison for conspiring to smuggle and illegally export from the U.S. in violation of the International Emergency Economic Powers Act (IEEPA), radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia. Zuccarelli was also sentenced to three years supervised release and a $50,000 fine.
Acting Assistant Attorney General for National Security Dana J. Boente and U.S. Attorney for the Eastern District of Texas Alan R. Jackson made the announcement after Zuccarelli was sentenced by U.S. District Judge Amos Mazzant.
“The United States rightfully restricts, as a national security concern, the exportation of technological equipment that can, if not controlled, be put to improper use,” said U.S. Attorney Alan R. Jackson. “This prosecution confirms the resolve of the Eastern District of Texas, working with its law enforcement partners, to enforce those restrictions for the safety of our citizens.”
According to the plea agreement, between approximately June 2015 and March 2016, Zuccarelli and his co-conspirators agreed to illegally export RHICs to China and Russia. RHICs have military and space applications, and their export is strictly controlled. In furtherance of the conspiracy, Zuccarelli’s co-conspirator received purchase orders from customers seeking to purchase RHICs for use in China’s and Russia’s space programs. Zuccarelli received these orders from his co-conspirator, as well as payment of approximately $1.5 million to purchase the RHICs for the Chinese and Russian customers. Zuccarelli placed orders with U.S. suppliers, and used the money received from his co-conspirator to pay the U.S. suppliers. In communications with the U.S. suppliers, Zuccarelli certified that his company, American Coating Technologies, was the end user of the RHICs, knowing that this was false. Zuccarelli received the RHICs he ordered from U.S. suppliers, removed them from their original packaging, repackaged them, falsely declared them as “touch screen parts,” and shipped them out of the U.S. without the required licenses. He also attempted to export what he believed to be RHICs. In an attempt to hide the conspiracy from the U.S. government, he created false paperwork and made false statements.
This case was investigated by the Dallas and Denver Offices of the Department of Homeland Security, Homeland Security Investigations; the FBI; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; the Department of Defense, Defense Criminal Investigative Service; and the U.S. Postal Inspection Service. This case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.
Superseding Indictment Charges Peoria Man with Distribution of Heroin and Acryl Fentanyl Resulting in DeathRead the Press Release
Peoria, Ill. – A Peoria, Ill., man, Isaiah “Rico” Richardson, is scheduled to appear in federal court on Jan. 30, after a federal grand jury returned a superseding indictment late yesterday that charges him with distribution of heroin and acryl fentanyl that resulted in the death of another person in June 2017. In addition, the indictment charges Richardson, 28, of the 2200 block of Monroe Street, with distribution of heroin, being a felon in possession of a firearm, and possession of heroin with intent to distribute in June 2017.
The superseding indictment alleges that on or about June 10, 2017, Richardson distributed a mixture of heroin and acryl fentanyl, a synthetic opioid and analogue of fentanyl, and that death resulted from its use, specifically, the death of D.W. on or about June 11. In addition, the indictment alleges that Richardson possessed a Ruger .45 caliber handgun on June 29, when he was arrested.
Richardson was previously charged by complaint and was indicted in July on the charge of distribution of heroin. The affidavit filed in support of the criminal complaint alleges that Richardson regularly sold heroin to users and that he sold heroin that resulted in at least one nonfatal drug overdose in June 2017. At the time, according to public records, Richardson had been released on bond on May 5, 2017, for a state charge of unlawful possession of heroin with intent to deliver, which remains pending in Peoria County Circuit Court.
U.S. Magistrate Judge Jonathan E. Hawley has ordered that Richardson remain detained in the custody of the U.S. Marshals Service since his arrest.
The Drug Enforcement Administration and the Pekin Police Department conducted the investigation. Assistant U.S. Attorney Katherine Legge is prosecuting the case.
If convicted, the statutory penalty for distributing heroin and acryl fentanyl that results in the death or serious bodily injury of another person is 20 years to life in prison. If convicted on the other drug charges, the penalty is up to 30 years in prison, and the firearm charge carries a maximum term of 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
St. Thomas Man Arrested on Five Firearm ChargesRead the Press Release
St. Thomas, USVI- Levi Registe, 26, of St. Thomas, was arrested today on an indictment charging him with two federal firearms offenses and three territorial firearms offenses, United States Attorney Gretchen C.F. Shappert announced. Registe made his initial appearance before Magistrate Judge Ruth Miller on the federal charges of possession of a firearm by a convicted felon and possession of ammunition by a convicted felon, and the territorial charges of possession of a firearm by a convicted felon, possession of an unlicensed firearm, and possession of body armor by a person convicted of a crime of violence. He was detained pending a detention hearing on January 25, 2018.
According to the indictment, on December 16, 2017, Registe possessed a SKS rifle, a shotgun, and a bulletproof vest. The indictment further states that Registe was previously convicted in the Superior Court of the Virgin Islands for assault in the first degree, and is not licensed to possess any of the firearms in the Virgin Islands.
Under federal law, possession of a firearm or ammunition by a convicted felon carries a sentence of not more than 10 years and a $250,000 fine. Under territorial law, possession of a firearm by a convicted felon carries a minimum sentence of 20 years and a $50,000 fine; possession of an unlicensed firearm carries a minimum sentence of 10 years and a minimum fine of $10,000, and possession of body armor by a person convicted of a crime of violence carries a maximum sentence of three years.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Drug Enforcement Administration and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
South Jersey Man Admits Stealing Car, Robbing Three BanksRead the Press Release
CAMDEN, N.J. - A Vineland, New Jersey, man today admitted stealing a car and using it as part of a South Jersey bank robbery spree in September and October 2016, U.S. Attorney Craig Carpenito announced.
Nathan L. Wallace, 29, pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with three counts of bank robbery. Wallace has been in custody since his arrest in October 2016.
According to documents filed in this case and statements made in court:
Wallace admitted stealing a 2003 Chrysler Sebring on Sept. 22, 2016 by threatening the victim with a toy revolver resembling an actual firearm. Wallace also admitted taking the Sebring on Sept. 24, 2016 to a BB & T Bank in Buena Vista Township, New Jersey, where he used the toy revolver to threaten bank employees and demand money. After taking cash from the employees, Wallace fled in the Sebring.
Wallace also admitted traveling in the same stolen Sebring with Quintin L. Jones, 35, of Vineland, to rob a Newfield National Bank in Newfield, New Jersey, on Oct. 7, 2016, and a Cape Bank in Upper Deerfield Township, New Jersey, on Oct. 11, 2016. During both robberies, one of the defendants used a toy revolver to threaten bank employees and steal money before they both fled in the stolen Searing.
In addition, Wallace admitted that he and Jones set fire to the Sebring on Oct. 15, 2016 in order to destroy evidence of the robberies.
Each bank robbery count is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Wallace’s sentencing is set for April 30, 2018.
Jones pleaded guilty on Nov. 8, 2017 and is scheduled to be sentenced on March 23, 2018.
U.S. Attorney Carpenito credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, the N.J. State Police, under the direction of Acting Superintendent Col. Patrick J. Callahan, as well as the Vineland Police Department, the Hamilton Township Police Department, the Newfield Police Department, the Cumberland County Prosecutor’s Office, and the Salem County Prosecutor’s Office, with the investigation.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Maggie F. Moy Esq., Camden
South Dakota U.S. Attorney's Office Collects over $2.5 Million in Fiscal Year 2017Read the Press Release
United States Attorney Ron Parsons announced that the District of South Dakota collected over $2,508,255.71 in Fiscal Year (FY) 2017 from civil and criminal actions. Of this amount, $1,565,057.52 was collected in criminal actions, and $943,198.19 was collected in civil actions.
Additionally, the District of South Dakota worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $9,562,500.00 in cases pursued jointly with these offices. Civil actions made up the entirety of this amount.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
Also, working with partner agencies and divisions, the District collected $57,629 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“The collection of these monies represents a key component of the work we do in the U.S. Attorney’s Office,” said Parsons. “Along with our prosecutorial responsibility, these recovered dollars play a vital role in helping crime victims, and also in recouping losses to the American taxpayer.”
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
South Alabama Man Indicted for Three Armed Bank Robberies in North AlabamaRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Conecuh County man for three armed bank robberies in northern Alabama last year, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
A five-count indictment filed in U.S. District Court charges KELVIN CARNELL GOLDEN, 32, of Evergreen, with armed bank robberies in St. Clair County, Jefferson County and Calhoun County. The indictment charges him with a separate firearm count on two of the robberies.
“Those who rob banks at gun point and threaten the lives of innocent employees and customers are exactly the violent criminals we will remove from free society and relocate to prison,” Town said. “The FBI did an outstanding job investigating this case.”
According to the indictment, Golden used a handgun and robbed a Pell City branch of BB&T bank on March 31, 2017. The indictment charges Golden with brandishing a 9mm semi-automatic pistol during that robbery.
On April 5, 2017, Golden used a handgun and robbed a Trussville branch of First Commercial Bank, according to the indictment, which also charges him with brandishing a 9mm semi-automatic pistol during that crime of violence.
The indictment charges Golden with using a handgun to rob an Oxford branch of BB&T on April 10, 2017.
Armed bank robbery carries a maximum sentence of 25 years in prison and a $250,000 fine. Brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be served consecutively to any other sentence imposed for the crime.
The FBI investigated the case, which Assistant U.S. Attorney Bill Simpson is prosecuting.
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Six-Time Felon Convicted of Possessing a Firearm in MilwaukeeRead the Press Release
Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that on January 16, 2018, a jury found Adrian Harper (age 39), of Milwaukee, guilty of illegally possessing a firearm as a convicted felon.
On July 3, 2017, Harper was found in possession of a fully loaded Smith & Wesson M&P9 Shield 9mm pistol. Harper had been previously convicted of five felonies in cases that stretch back to the early 1990s. Most recently, in 2010, Harper was convicted in federal court of possession of a firearm while shooting a gun into the air with a crowd of people nearby.
On April 13, 2018, Judge Adelman is scheduled to sentence Harper for his most recent unlawful possession of a firearm. Harper faces a maximum term of imprisonment of ten years, a maximum term of supervised release of three years, and a maximum fine of $250,000.
The case was investigated by the Milwaukee Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant United States Attorneys Keith Alexander and Benjamin Taibleson.
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For additional information contact:
Acting Public Information Officer Elizabeth Makowski, 414-297-1700
Shreveport tax preparer pleads guilty to filing false tax returns for self, customersRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a woman who owned a Shreveport tax preparation business pleaded guilty Monday to filing false taxes for herself and her clients even after her electronic filing number was revoked.
Deborah A. Turner, 47, of Shreveport, pleaded guilty before U.S. Magistrate Judge Mark L. Hornsby to one count of making and subscribing a false tax return and one count of aiding and assisting in making and subscribing a false return. The plea will become final after it is accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Turner owned Tax Express Refund, which is a tax preparation business located in Shreveport. The IRS revoked her Electronic Filing Identification Number (EFIN) in January 2014, but she instead started using her daughter’s EFIN to continue filing tax returns. She filed numerous tax returns for clients for tax years 2011 to 2013 containing false information so they could claim deductions, credits and expenses to increase the size of their refunds. She also filed a false individual tax return for tax year 2013 where she failed to report $336,865 of income she received from her business.
Turner faces up to three years in prison, one year of supervised release and a $100,000 fine for each count. The court set a sentencing date of April 2, 2018.
The IRS-Criminal Investigations conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath and Supervisory Assistant U.S. Attorney Cytheria D. Jernigan are prosecuting the case.
Salinas Resident Pleads Guilty to Bank RobberyRead the Press Release
SAN JOSE– Nathan James Garcia, aka “Bones,” pleaded guilty to conspiracy to commit robbery affecting interstate commerce and armed bank robbery in connection with the 2012 robbery of a Salinas, Calif., bank, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The guilty plea was accepted this morning by the Honorable Lucy H. Koh, United States District Judge.
According to his guilty plea, on May 19, 2012, Garcia, 26, of Salinas, committed an armed bank robbery. During the robbery, a firearm was brandished and over $13,000 in cash was stolen. In the days leading up to the bank robbery and in preparation for robbing it, Garcia rehearsed the robbery and cased the bank.
On May 11, 2017, a federal grand jury indicted Garcia, charging him with one count each of conspiracy to commit robbery affecting interstate commerce, in violation of 18, U.S.C. § 1951(a); conspiracy to commit armed bank robbery, in violation of 18 U.S.C. §§ 2113(a) and (d), and 371; robbery affecting interstate commerce, in violation of 18 U.S.C. §§ 1951(a) and 2; and armed bank robbery, in violation of 18 U.S.C. §§ 2113(a) and (d), and 2. Pursuant to today’s plea agreement, Garcia pleaded guilty to the conspiracy to commit robbery affecting interstate commerce and the armed bank robbery counts. The remaining counts will be dismissed.
Garcia faces a maximum sentence of 20 years’ imprisonment and $250,000 for the conspiracy count and a maximum sentence of 25 years’ imprisonment and $250,000 for the armed bank robbery count. Further, additional terms of supervised release, penalties, and restitution may be ordered. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Garcia has been in federal custody since his arrest in May of 2017. Judge Koh has scheduled Garcia’s sentencing hearing for May 2, 2018.
Assistant U.S. Attorney Claudia A. Quiroz is prosecuting this case with assistance from Jessica Meegan and Lance Libatique. The prosecution is the result of an investigation by the FBI.
Sacramento Woman Sentenced for Failure to Appear for SentencingRead the Press Release
SACRAMENTO, Calif. — Maria Santa, 41, of Sacramento, was sentenced today to one year and one day in prison for failing to surrender for service of her sentence, U.S. Attorney McGregor W. Scott announced. U.S. District Judge Kimberly J. Mueller ordered today’s sentence to be served consecutive to Santa’s original sentence.
According to court documents, Maria Santa was previously sentenced to 20 months in prison for mortgage fraud and was ordered to begin serving her sentence in February 2014. When her motion for bail pending appeal was denied, she fled the jurisdiction and left a note at her residence that made it appear that she had committed suicide. On August 26, 2016, Maria Santa was arrested in Sacramento as a passenger in a vehicle her husband Virgil Santa was driving. She was found in possession of an identification document belonging to her twin sister.
Virgil Santa, 43, also of Sacramento, is charged with harboring a fugitive in relation to Maria Santa’s offense. The charge is only an allegation, he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Jared C. Dolan and Amanda Beck are prosecuting the case.
Rocky Comfort Man Charged with Threatening a Federal AgentRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that a Rocky Comfort, Mo., man has been charged in federal court with threatening to assault an FBI agent.
Richard W. Toler, 47, of Rocky Comfort, was charged in a criminal complaint filed under seal on Monday, Jan. 22, 2018. The complaint was unsealed and made public today upon Toler’s arrest and initial court appearance. Toler remains in federal custody pending a detention hearing on Monday, Jan. 29, 2018.
The federal criminal complaint alleges that Toler threatened to assault an FBI agent with the intent to impede, intimidate and interfere with the agent while he was engaged in the performance of his official duties, and retaliate against the agent on account of the performance of official duties.
According to an affidavit filed in support of the criminal complaint, Toler left more than 30 voicemail messages for the agent. In many of the voicemails, Toler yelled, cursed and accused the agent of ignoring his duties. The affidavit cites specific threats made by Toler against the agent and his family.
For example, the affidavit cites one voice mail in which Toler allegedly said, “I think you should look at your kids … I think you should give them a … hug … in case this is the last Christmas you get to spend with them.”
On Jan. 13, 2018, an employee of Central Bank of the Ozarks, which shares an office building with the FBI Springfield Resident Agency, arrived at work and found two pieces of paper on the floor inside two exterior doors of the bank. Both papers were addressed to the agent and were signed “Richard W Toler.” The content of the papers is not disclosed in the affidavit.
The Chicago, Ill., division of the FBI began an investigation on Nov. 14, 2017, related to a complaint of Toler making threatening communications by telephone. The investigation centered on allegations that Toler threatened to dismember and kill a Chicago woman (identified in court documents as “S.C.”) with whom Toler has a son. Toler also allegedly directed threats at a manager of the Whole Foods store where S.C. worked.
Area FBI agents interviewed Toler about the allegations on Dec. 5, 2017. The agents told Toler to cease contact with S.C. and others involved.
Garrison cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the FBI and the Barry County, Mo., Sheriff’s Department.
Rockford Man Indicted for Drug Trafficking and Firearm OffensesRead the Press Release
ROCKFORD — A Rockford man was indicted Tuesday in federal court on multiple counts of drug trafficking and firearm offenses.
ANTWAN D. MANLEY, 25, was charged with possessing with intent to distribute heroin, cocaine base and marijuana, in Rockford on Jan. 11, 2018. Manley was also charged with possessing a 9-mm pistol as a convicted felon on Jan. 11, 2018, and possessing that firearm in furtherance of a drug-trafficking crime. In addition, Manley was charged with distributing heroin in Rockford on Nov. 27, 2017, and Dec. 6, 2017.
Manley, who has been in federal custody since his arrest on Jan. 11, 2018, will appear before U.S. Magistrate Judge Iain D. Johnston for his arraignment today at 3:30 p.m.
Each of the drug-trafficking charges carries a maximum sentence of 20 years in prison. The charge of illegally possessing a firearm as a convicted felon carries a maximum sentence of ten years in prison, and the charge of possessing a firearm in furtherance of a drug-trafficking crime carries a mandatory minimum sentence of five years in prison and a maximum sentence of life imprisonment. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Dan O’Shea, Chief of the Rockford Police Department. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes the above agencies as well as the Loves Park and Freeport Police Departments. The Winnebago County Sheriff’s Office also assisted in the investigation.
The government is represented by Assistant U.S. Attorney Talia Bucci.
Rockford Man Charged in Federal Court with Bank RobberiesRead the Press Release
ROCKFORD — A Rockford man was indicted Tuesday by a federal grand jury in Rockford for the robberies of two Rockford banks.
ALBERT K. STALLWORTH, 62, was charged with two counts of bank robbery. According to the indictment, on Aug. 25, 2017, Stallworth robbed the Midwest Community Bank on North Perryville Road in Rockford of $4,989. The indictment further alleges that on Jan. 9, 2018, Stallworth robbed the Associated Bank on Center Terrace in Rockford of $1,620.
Stallworth appeared before U.S. Magistrate Judge Iain D. Johnston today for arraignment. His case was set for a status hearing on March 8, 2018, at 11:00 a.m.
Each count of bank robbery carries a maximum potential penalty of up to 20 years in prison, to be followed by up to three years of supervised release. Each count also carries a fine of up to $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines, and order the defendant to pay full restitution to Midwest Community Bank and Associated Bank.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force consisting of law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department, and Freeport Police Department.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey Sallet, Special Agent-in-Charge of the Chicago Field Office of Federal Bureau of Investigation; and Dan O’Shea, Chief of the Rockford Police Department.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Rock Hill Woman Pleads Guilty to ConspiracyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that E'Shellah Calhoun, age 52, of Rock Hill, South Carolina, has entered a guilty plea in federal court in Columbia, to conspiracy, a violation of 18 U.S.C. § 371. United States District Judge Terry L. Wooten, of Columbia, accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendant and others agreed to defraud people across the country. The victims were contacted by members of the conspiracy who purported to be officials with the Internal Revenue Service – it appears from the investigation that these co-conspirators were operating out of India. The co-conspirators would threaten criminal prosecution if the victim did not pay a certain amount of money. The victims would be instructed to wire certain sums of money to a bank account in order to satisfy the debt. The investigation found that money was being sent to a South Carolina account operated by the defendant. Bank documents and bank surveillance, show that the defendant and associates would go to various banks and ATMs the day that money was deposited by the victims. The three would withdraw the full amount. The total amount that they received is approximately 50k. Additionally, the co-conspirators other times would demand gift cards; there is surveillance of the defendant redeeming thousands of dollars in gift cards within an hour of the victims transferring the funds.
Ms. Drake stated the maximum penalty for conspiracy is imprisonment for 5 years and/or a fine of $250,000.
The case was investigated by agents of the Office of the Inspector General of the Department of the Treasury. Assistant United States Attorney Jim May of the Columbia office is prosecuting the case.
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Red Valley Man Sentenced for Sexual Abuse of a MinorRead the Press Release
PHOENIX – On Monday, Eric Begay, 44, of Red Valley, Ariz., was sentenced by U.S. District Judge David G. Campbell to 42 months’ imprisonment, to be followed by 15 years of supervised release with sex offender conditions. Begay had previously pleaded guilty to sexual abuse of a minor.
In January of 2017, the victim, a member of the Navajo Nation, reported that Begay had been inappropriately touching the victim. Agents of the Federal Bureau of Investigation promptly began an investigation, which led to Begay’s arrest and prosecution. Begay is also a member of the Navajo Nation, and the abuse occurred within the Navajo Nation Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08081-DGC
RELEASE NUMBER: 2018-006_Begay
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Previously Removed Alien Sentenced for Failing to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Wilson Secadia-Garcia, a national of Guatemala, was sentenced on January 23, 2018, in Lincoln, Nebraska, by United States District Senior Judge Richard G. Kopf, to 41 months imprisonment for reentry of a removed alien after an aggravated felony conviction and for failure to register as a sex offender.
Secadia-Garcia was previously removed from the United States on multiple occasions since 2002. In 2009, he was convicted in Lancaster County, Nebraska, of sexual exploitation of a minor, an aggravated felony that carries with it a 25-year requirement to register as a sex offender under state law. After the Lancaster County conviction, Secadia-Garcia was again removed from the United States to Guatemala. Secadia-Garcia illegally reentered the United States, and was arrested on May 22, 2017, in Lincoln, Nebraska.
This case was investigated by the United States Marshal Service Metro Fugitive Task Force and the Department of Homeland Security.
Previously Convicted Sex Offender Sentenced to 12 Years’ Imprisonment for Transportation of Child PornographyRead the Press Release
Earlier today, in federal court in Central Islip, Angel M. Castillo was sentenced to 12 years’ imprisonment following his May 10, 2016 guilty plea to Transportation of Child Pornography in Interstate and Foreign Commerce. The sentencing proceeding was held before United States District Judge Joan M. Azrack. Castillo was also sentenced to 10 years’ supervised release to follow his prison sentence, during which time he must register as a sex offender and he will not be allowed unsupervised contact with minors.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and John W. Barry, Acting Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
According to court filings, in May 2014, Castillo was found by FBI agents and SCPD detectives to be sharing child pornography online via a peer-to-peer file sharing network. A search warrant was executed on Castillo’s residence in February 2015, at which time Castillo admitted that he had a sexual interest in children. He also admitted that he had been using the peer-to-peer network for about a year and a half to download child pornography and that he had saved images and videos to his computer. Law enforcement recovered from Castillo’s computer over 600 videos and over 10,000 still images of child pornography, including the abuse of infants and toddlers.
United States Department of the Navy records show that Castillo was convicted and received a General Court Martial on February 21, 2003, after a guilty plea to Indecent Acts and Liberties with a Child. Castillo received a bad conduct discharge from the Navy and was sentenced to 54 months’ in custody (with 24 months suspended).
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Allen L. Bode is in charge of the prosecution.
The Defendant:
ANGEL M. CASTILLO
Age: 44
Bay Shore, New YorkE.D.N.Y. Docket No. 15-CR-519
Postal Employee Arrested, Charged with Stealing MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that James Ludwig, 45, of Fairport, NY, was arrested and charged by criminal complaint with theft of mail matter by a postal employee. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, on December 27, 2017, the U.S. Postal Service, Office of Inspector General, received information about mail thefts at the Victor, NY Post Office. Postal managers reported receiving multiple complaints of missing mail from postal customers. All of the complaints came from Victor City Route 01. The defendant was identified as the assigned carrier during the time the mail went missing.
A subsequent investigation determined that all the customers reported missing mail which contained either cash or gift cards, some of which were mailed to the victims, while other missing items were stamped and addressed to others and placed in the mailbox for pick up by the letter carrier. One victim, who reported a specific retail store gift card missing, retained the gift card identification number and determined that the stolen gift card was redeemed at a local store in the Rochester area. The retailer was able to identify the person who redeemed the stolen gift card.
During the investigation, Postal OIG Special Agents conducted surveillance of Ludwig while he carried out his postal duties. The defendant was electronically tracked to deviate from his assigned postal route, and to travel to the residential address of the individual who redeemed the stolen gift card. Also during the investigation, agents placed a piece of outgoing mail in a mailbox along City Route 01 which contained two $25 Wegmans store gift cards. It was subsequently determined that the gift cards were used by the defendant.
Postal OIG Special Agents also installed a surveillance video camera in the Postal Service government vehicle operated by Ludwig during the course of his official duties as a letter carrier. A review of that surveillance video found the defendant picking envelopes that appeared to contain greeting cards out of his assigned load, opening the envelopes, and removing items from inside the envelopes. Additionally, the surveillance video showed that while on duty, Ludwig was observed preparing two lines of a white powdery substance, which he appeared to ingest nasally through the use of a rolled dollar bill.
The defendant made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman and was released.
The complaint is the culmination of an investigation by Special Agents of the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Pickaway County Man Pleads Guilty to Transporting Illegal Aliens from Mexico with Cousin in TexasRead the Press Release
COLUMBUS, Ohio – Two cousins have each been charged in the Southern District of Ohio with unlawfully transporting illegal aliens, primarily Mexican citizens, within the United States.
Bromley D. Hackney, 57, of Ashville, Ohio, pleaded guilty in U.S. District Court today to one count of transportation of an alien within the United States. Robert G. Smith, 58, of Natalia, Texas, was charged by criminal complaint with the same crime and arrested this morning in Texas.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Ohio State Highway Patrol Superintendent Col. Paul A. Pride and officials with U.S. Border Patrol announced the charges and the plea entered into before U.S. District Judge Michael H. Watson.
According to an affidavit filed in support of the Criminal Complaint charging Smith, in October 2016, HSI agents received information from the Ohio State Highway Patrol regarding the suspected unlawful transportation of aliens. The source alleged that Hackney was using a semi-truck to move undocumented aliens within the United States for profit.
In December 2016, Hackney was stopped at a Border Patrol checkpoint near Laredo, Texas and agents found four undocumented aliens attempting to conceal themselves in hidden compartments in the cabin of the freight box truck. All of the individuals were taken into custody and later released.
Hackney agreed to be interviewed by investigators in Ohio in March 2017 and said he “knew that this day would come” and was going to go to a Border Patrol station soon to inquire about a possible investigation involving him. He admitted that he unlawfully transported aliens, which he and Smith began to do during the year 2011.
Smith, who was interviewed in June 2017, told investigators he would receive calls from a subject using the alias “Skinny” who would give him instructions on where to pick up the illegal aliens to be unlawfully transported. Smith would then contact others to arrange some of the transports, which he did approximately four times per week. He earned at least $2,000 per week coordinating the transactions.
Smith unlawfully transported aliens at least 72 times from 2011 through 2016 and transported four individuals each time. At first, he charged $800 per person and after the first two years increased the cost to $1,000 per person. The total amount of proceeds from the offense was nearly $269,000.
Transportation of an alien within the United States is a federal crime punishable by up to five years in prison.
“Smuggling human beings is a noxious business,” U.S. Attorney Glassman said. “We don’t want this sort of unlawful activity taking place in the Southern District of Ohio, and we’ll continue to work to identify and prosecute those who profit from transporting people illegally.”
“Dismantling criminal smuggling operations which prey on human beings with absolutely no regard for human life is a top priority for HSI," said Steve Francis, special agent in charge of HSI Detroit. "We will continue to aggressively pursue these alien smugglers who jeopardize human lives for money."
U.S. Attorney Glassman commended the investigation of this case by HSI, Ohio State Highway Patrol and U.S. Border Patrol, as well as Assistant United States Attorney Timothy D. Prichard, who is the District’s Immigration and Border Security Coordinator and who is representing the United States in this case.
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Philadelphia Man Charged with Intent to DistributeRead the Press Release
Joseph Massimino, Jr., of the 700 block of Mountain Street in Philadelphia, was charged today by Indictment with one count of possession with the intent to distribution an array of controlled substances - methamphetamine (actual), fentanyl, heroin, marijuana, and methadone - in violation of 21 U.S.C. § 841(a)(1), as well as with one count of possession of firearms in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c), and one count of possession of a firearm by a convicted felon, in violation of 18 U.S.C. § 922(g)(1), announced United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of life imprisonment, and a mandatory term of imprisonment of fifteen years.
The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Nancy B. Winter.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy Employee Charged in $1.5 Million Health Care Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A Marlboro, New Jersey, man was charged today for his role in a conspiracy to falsely bill public and private insurance providers for medications that were never dispensed to patients, U.S. Attorney Craig Carpenito announced.Ruben Sevumyants, 34, is charged by criminal complaint with one count of conspiracy to commit health care fraud. He appeared today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on $100,000 unsecured bond.
According to the complaint:
From June 2014 through Sept. 11, 2017, Sevumyants worked as the operations manager for a specialty pharmacy in Union City, New Jersey.
While employed at the pharmacy, Sevumyants allegedly forged documents and submitted false bills to Medicare, Medicaid, and other payors for medications that were never actually dispensed to patients. When health insurance providers, such as Amerihealth Caritas and Connecticut Medicaid, questioned the specialty pharmacy and Sevumyants about charges for medications that patients never received, Sevumyants allegedly forged Federal Express shipping records to make it appear that the medications were shipped to the patients.
Based on billing and shipping records, the specialty pharmacy received over $1.5 million from health insurance providers for prescriptions that were never actually dispensed to patients.
The count of conspiracy to commit health care fraud carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation.
The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Brian Urbano of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.38 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense Counsel: Thomas Calcagni Esq., Newark