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Friday 19 January 2018
Update on Harrisburg ShootingRead the Press Release
HARRISBURG – United States Attorney David J. Freed and Dauphin County District Attorney Francis T. Chardo provide the following update after this afternoon’s press conference on the Harrisburg shooting.
Investigators have determined the identity of the subject who shot multiple members of the United States Marshal’s Fugitive Task Force this morning in Harrisburg City as Kevin Sturgis, 31, of Philadelphia, who was killed by law enforcement officers at the scene. At the time of the incident, Sturgis had two active warrants from the city of Philadelphia – one for failure to appear for sentencing on a charge of Persons Not to Possess Firearms under the Uniform Firearms Act – a felony of the second degree; and one for failure to appear for a violation of probation hearing on original charges of Receiving Stolen Property, Unlawful Possession of a Controlled Substance and Unauthorized Use of an Automobile. Sturgis also had a juvenile adjudication (analogous to a criminal conviction in adult court) on a charge of Rape.
The subject of warrant for arrest was Shayla Lynette Towles Pierce, age 30, of Harrisburg, who was wanted by the Harrisburg Bureau of Police on charges of Illegal Possession of a Firearm under the Uniform Firearms Act, a felony of the third degree, Simple Assault and Terroristic Threats. Towles was committed to Dauphin County Prison in lieu of $200,000 bail.
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U.S. Attorney’s Office Hosts Roundtable on Sexual Harassment in HousingRead the Press Release
The U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Rights Division hosted a roundtable today for community organizations, U.S. Attorney Craig Carpenito announced.
The event included local law enforcement agencies, legal aid offices, fair housing organizations, shelters and transitional housing providers. Each organization was invited because they often work with New Jersey’s most vulnerable populations, who could also become victims of sexual harassment in housing.
“Sexual harassment in housing situations might not be as visible as harassment in the workplace, but can be just as egregious,” U.S. Attorney Carpenito said. “Landlords and superintendents using the power they have over tenants to extort sexual favors, or even commit assaults, is intolerable. We’re extremely proud that New Jersey is holding one of the first community discussions about how to combat the problem.”
In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment Initiative, an effort to combat sexual harassment in housing. The Civil Rights Division launched a pilot of the initiative in two jurisdictions—Washington, DC and western Virginia—where it is working with legal service providers and local law enforcement to raise awareness about this issue.
As part of the pilot, the Civil Rights Division and the United States Attorney’s Office for the District of Columbia hosted a summit on November 9, 2017. The summit convened representatives from the Executive Office of the Mayor of the District of Columbia, Metropolitan Police Department, Office of Human Rights (Washington, D.C.), Office of the Tenant Advocate (Washington, D.C.), Office of the Attorney General for the District of Columbia, Office of Congresswoman Eleanor Holmes Norton, and U.S. Department of Housing and Urban Development.
The U.S. Attorney’s Office for the District of New Jersey is the first office outside of the Sexual Harassment Initiative’s pilot program to host a roundtable on these issues. The office is collaborating with the Civil Rights Division to spread the word about options to help victims experiencing sexual harassment. Our community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters and transitional housing providers can identify the misconduct and recommend that victims report sexual harassment to the Civil Rights Division.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in the housing context, and the Fair Housing Act prohibits it. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations – single mothers, women who are financially unstable, and women who have suffered sexual violence in their past. And these women often do not know where to turn for help.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.
In 2017, the Justice Department recovered for harassment victims more than $1 million in damages. Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
In remarks this week at the “Conversation with the Women of America” event in Washington, D.C., Associate Attorney General Rachel Brand addressed the issue:
“We want women – and men – to know that if this happens to them, there is someone they can call,” Associate Attorney General Brand said. “No one should have to choose between sexual abuse and losing the roof over her head.”
Not only should victims of sexual harassment be aware of the Justice Department’s enforcement efforts, but people or organizations they may tell about the sexual harassment should also be aware where to refer them to report the misconduct. Local police departments or legal aid offices may be able to help survivors, if the behavior is a crime or if there is an imminent eviction. Therefore, organizations should also recommend that the victim report the harassment to the Civil Rights Division and the U.S. Attorney’s Office.
The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts – both among victims and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help women quickly and easily connect with federal resources. The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Division by calling (844) 380-6178 or emailing: [email protected] .
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
U.S. Attorney’s Office Hosts Roundtable on Sexual Harassment in HousingRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Rights Division hosted a roundtable today for community organizations, U.S. Attorney Craig Carpenito announced.
The event included local law enforcement agencies, legal aid offices, fair housing organizations, shelters and transitional housing providers. Each organization was invited because they often work with New Jersey’s most vulnerable populations, who could also become victims of sexual harassment in housing.
“Sexual harassment in housing situations might not be as visible as harassment in the workplace, but can be just as egregious,” U.S. Attorney Carpenito said. “Landlords and superintendents using the power they have over tenants to extort sexual favors, or even commit assaults, is intolerable. We’re extremely proud that New Jersey is holding one of the first community discussions about how to combat the problem.”
In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment Initiative, an effort to combat sexual harassment in housing. The Civil Rights Division launched a pilot of the initiative in two jurisdictions—Washington, DC and western Virginia—where it is working with legal service providers and local law enforcement to raise awareness about this issue.
As part of the pilot, the Civil Rights Division and the United States Attorney’s Office for the District of Columbia hosted a summit on November 9, 2017. The summit convened representatives from the Executive Office of the Mayor of the District of Columbia, Metropolitan Police Department, Office of Human Rights (Washington, D.C.), Office of the Tenant Advocate (Washington, D.C.), Office of the Attorney General for the District of Columbia, Office of Congresswoman Eleanor Holmes Norton, and U.S. Department of Housing and Urban Development.
The U.S. Attorney’s Office for the District of New Jersey is the first office outside of the Sexual Harassment Initiative’s pilot program to host a roundtable on these issues. The office is collaborating with the Civil Rights Division to spread the word about options to help victims experiencing sexual harassment. Our community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters and transitional housing providers can identify the misconduct and recommend that victims report sexual harassment to the Civil Rights Division.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in the housing context, and the Fair Housing Act prohibits it. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations – single mothers, women who are financially unstable, and women who have suffered sexual violence in their past. And these women often do not know where to turn for help.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.
In 2017, the Justice Department recovered for harassment victims more than $1 million in damages. Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
In remarks this week at the “Conversation with the Women of America” event in Washington, D.C., Associate Attorney General Rachel Brand addressed the issue:
“We want women – and men – to know that if this happens to them, there is someone they can call,” Associate Attorney General Brand said. “No one should have to choose between sexual abuse and losing the roof over her head.”
Not only should victims of sexual harassment be aware of the Justice Department’s enforcement efforts, but people or organizations they may tell about the sexual harassment should also be aware where to refer them to report the misconduct. Local police departments or legal aid offices may be able to help survivors, if the behavior is a crime or if there is an imminent eviction. Therefore, organizations should also recommend that the victim report the harassment to the Civil Rights Division and the U.S. Attorney’s Office.
The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts – both among victims and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help women quickly and easily connect with federal resources. The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Division by calling (844) 380-6178 or emailing: [email protected] .
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
U.S. Attorney’s Office Collects $51.6 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
NEWARK, N.J. – U.S. Attorney Craig Carpenito announced today that the District of New Jersey collected $51.6 million in criminal and civil actions in Fiscal Year 2017. Of this amount, $19.7 million was collected in criminal actions and $31.8 million was collected in civil actions.
The District of New Jersey also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $737.7 million in cases pursued jointly with these offices. Of this amount, $155,000 was collected in criminal actions and $737.5 million was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
During the 2017 fiscal year, significant recoveries in the District of New Jersey included:
- $7.485 million as part of a civil settlement with Omnicare Inc. to resolve allegations that Omnicare, in an effort to increase business efficiency and profit, designed and implemented an automated label verification system that resulted in the submission by Omnicare of claims for generic drugs different from those actually dispensed to Medicare and Medicaid beneficiaries. It also resulted in the dispensing of drugs with patient-specific labels displaying the incorrect manufacturer or NDC.
- $4.47 million in cash and proceeds from the sale of real property in a large-scale home health care aide fraud case. Eight other real properties are in the process of being sold.
- $1.22 million from bank accounts of individuals associated with a New Jersey company that alleged laundered millions in street cash for narcotics traffickers from Mexico and elsewhere. A total of approximately $2.7 million has been forfeited in the case to date.
In addition, $6.34 million in funds forfeited in 2017 and prior fiscal years was returned to victims of the criminal offenses upon which the forfeitures were based. This included $4.8 million forfeited from a husband and wife who owned a mobile diagnostic testing company that received insurance reimbursements for diagnostic testing and reports that were never interpreted by a licensed physician. The forfeited funds were used to compensate Medicare and private insurance companies in full for their losses.
The U.S. Attorneys’ Offices, along with the 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.
Additionally, the U.S. Attorney’s office in the District of New Jersey, working with partner agencies and divisions, collected $18.8 million 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.
U.S. Attorney's Office collected nearly $30 million last yearRead the Press Release
U.S. Attorney Justin E. Herdman announced today that the Northern District of Ohio collected nearly $30 million in fiscal year 2017.
Of this amount, $10.3 was collected in criminal actions, $4.7 was collected in civil actions and $14.5 million was collected in asset forfeitures.
The office’s total overall budget for the fiscal year was approximately $13.8 million.
“In addition to seeking long prison sentences for those who commit violent crimes, trying to stem the flow of opioids into our neighborhoods and other efforts to keep our community safe, the men and women of the U.S. Attorney’s Office brought in more than twice as much as our annual budget,” Herdman said. “This money helps victims of crime, restores public trust, and protects the treasury.”
The Northern District of Ohio worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3.6 million in cases pursued jointly with these offices.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
Among the significant collections this year:
U.S. v. Xin Fan: Xin Fan paid $1.2 million last year after pleading guilty to conspiracy to commit wire fraud and honest services wire fraud for defrauding Goodyear Tire & Rubber Company. Fan, Yu and others caused Goodyear to purchase natural rubber from shell companies they incorporated. They also required Goodyear suppliers to use loading companies in which they had a financial interest. Both were sentenced to more than two years in prison.
U.S. v. Joseph Satava: Satava, the manager of credit and collections for insurance giant Medical Mutual, paid $334,000 last year as part of his criminal case. Satava used sophisticated means and vulnerabilities in accounting procedures to embezzle nearly $3 million from his employer over a decade. Satava is serving nearly six years in prison.
U.S. v. Aerojet Rocketdyne Holdings et. al.: Companies paid more than $1 million last year as part of a consent decree to resolve allegations that they violated the Clean Water Act by polluting the Ottawa River. The corporations agreed to pay for a restoration project at a 175-acre property for natural resources and reimbursements for assessment of injuries at the lower portion of the Ottawa River.
U.S. v. Delores Knight et. al: Knight was the owner of Just Like Familee, a home health agency that served Medicare, Medicaid and Veteran’s Affairs patients. The majority of its insurance claims were submitted for skilled nursing services provided by a registered nurse or licensed practical nurse, and for home health aide services, such as cooking, cleaning, hygiene care, and daily living services. Knight submitted millions of dollars in home health care billings to Medicare, Medicaid and the VA for patient visits that were not made and for services based upon falsified patient medical records. Knight used proceeds from the fraudulent scheme to purchase homes in Macedonia and Twinsburg which had a combined appraised value of approximately $800,000. Knight was sentenced to 10 years in prison and her son Isaac Knight was sentenced to seven years in prison after being convicted at trial last year. The jury also returned a verdict of forfeiture against the two homes.
U.S. v. Cannon Design: The Buffalo-based company paid $500,000 of a $12 million penalty to resolve the company’s criminal liability for the conduct of more than a dozen employees, including paying bribes and kickbacks to obtain confidential information related to Veterans Affairs construction projects. Cannon Design also agreed to implement a series of corporate reforms and divest itself from a large project in California as part of the settlement.
The U.S. Attorneys’ Offices, along with the 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.
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 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.
Two Top Leaders in Italy and Five Us Residents Indicted for Racketeering, Health Care Fraud, and Drug Trafficking Conspiracies to Distribute Opioids Resulting in Deaths Involving “Pill Mills” Operating in Tennessee and FloridaRead the Press Release
KNOXVILLE, Tenn. – A 14-count superseding indictment, returned by a federal grand jury on January 4, 2018, was unsealed today by the Honorable Thomas A. Varlan, Chief U.S. District Judge. The superseding indictment charges seven individuals for their roles in a Racketeer Influenced and Corrupt Organization (RICO) and conspiracy to distribute and dispense oxycodone, oxymorphone, and morphine outside the scope of professional practice and not for a legitimate medical purpose and resulting in deaths, maintenance of drug-involved premises, distribution of oxycodone resulting in death, conspiracy to defraud the United States through the solicitation and receipt of illegal healthcare kickbacks, and money laundering.
Individuals charged in the superseding indictment include Luca Sartini, 58, of Rome, Italy, and Miami; Luigi Palma, aka Jimmy Palma, 51, of Rome, Italy, and Miami; Benjamin Rodriguez, 42, of Delray Beach, Florida; Sylvia Hofstetter, 53, of Knoxville, Tennessee; Courtney Newman, 42, of Knoxville; Cynthia Clemons, 45, of Knoxville; and, Holli Womack aka Holli Carmichael, 44, of Knoxville.
The superseding indictment, which is on file with the U.S. District Court, details the charges against each of the individuals referenced above. All are accused of being responsible for the distribution of quantities of oxycodone, oxymorphone, and morphine sufficient to generate clinic revenue of at least $21M.
On January 19, 2018, Italian authorities arrested Sartini and Palma in Rome, Italy-area. The United States is seeking extradition. Rodriguez is set to self-surrender. All other defendants were previously charged in prior indictments.
Announcement of these charges and the superseding indictment were made today by Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee and Special Agent in Charge Renae M. McDermott of the FBI’s Knoxville Division.
“Throughout this country, and certainly in Tennessee and Florida, the illegal and unconscionable mass-distribution of prescription opioids through the operation of illegal pain clinics has taken a heavy toll on our citizens, families and communities,” said Attorney General Sessions. “This sort of profiteering effectively trades human lives for financial riches. The U.S. Department of Justice is determined to stamp out the operation of illegal pain clinics by all legal means, including finding and arresting those responsible wherever they may be in the world.”
“The Eastern District of Tennessee has been at the forefront in the battle against illegal pain clinics and mass-prescribing of opioids for years,” said U.S. Attorney Overbey. “Now, under the leadership of Attorney General Sessions, additional resources have been made available through recent Department of Justice initiatives, including the Opioid Fraud and Abuse Task Force. This latest indictment is a real and tangible result of all of those combined efforts. The citizens of East Tennessee can be assured that we are committed to ridding our district of illegal pill mills.”
Agencies involved in this investigation include the U.S. Attorney’s Office for the Eastern District of Tennessee; Criminal Division’s Organized Crime and Gang Section; FBI High Intensity Drug Trafficking Area (HIDTA), which is comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department and Clinton Police Department. Other agencies that provided invaluable assistance include the Rome Attaché of the Justice Department’s Office of International Affairs; FBI’s liaison in Rome; the FBI Miami Health Care Fraud Strike Force; Hollywood, Florida Police Department; U.S. Department of Health and Human Services; Tennessee Department of Health; and DEA’s Knoxville Diversion Group. The Department of Justice extends its gratitude to Interpol and the Italian Financial Police (Guardia di Finanza) for their assistance in locating and apprehending the defendants.
Assistant U.S. Attorneys Tracy L. Stone and Anne-Marie Svolto of the Eastern District of Tennessee, and Trial Attorney Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section represent the United States.
In light of the nationwide opioid epidemic which led to the declaration of a public health emergency by the Acting Secretary of the Department of Health and Human Services on October 26, 2017, this superseding indictment represents just the latest in a series of federal efforts in the Eastern District of Tennessee meant to combat the scourge of prescription opioids.
To date, as a result of this investigation, approximately 30 narcotics traffickers have been charged and convicted federally, and approximately 80 to 90 smaller narcotic distributers have also been charged and convicted. Today’s superseding indictment is among 35 related indictments charging approximately 140 individuals, including medical providers who worked at the pill mills, with various crimes.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Two Top Leaders in Italy and Five Us Residents Indicted for Racketeering, Health Care Fraud and Drug Trafficking Conspiracies to Distribute Opioids Resulting in Deaths Involving “Pill Mills” Operating in Tennessee and FloridaRead the Press Release
On Jan. 4, a federal grand jury in Knoxville, Tennessee, returned a 14-count superseding indictment unsealed today charging seven individuals for their roles in a Racketeer Influenced and Corrupt Organization (RICO) conspiracy and drug trafficking conspiracy to distribute and dispense oxycodone, oxymorphone and morphine outside the scope of professional practice and not for a legitimate medical purpose and resulting in deaths, maintenance of drug-involved premises, distribution of oxycodone resulting in death, conspiracy to defraud the United States through the solicitation and receipt of illegal healthcare kickbacks and money laundering.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee and Special Agent in Charge Renae M. McDermott of the FBI’s Knoxville Division made the announcement.
“Throughout this country, and certainly in Tennessee and Florida, the illegal and unconscionable mass-distribution of prescription opioids through the operation of illegal pain clinics has taken a heavy toll on our citizens, families and communities,” said Attorney General Sessions. “This sort of profiteering effectively trades human lives for financial riches. The U.S. Department of Justice is determined to stamp out the operation of illegal pain clinics by all legal means, including finding and arresting those responsible wherever they may be in the world.”
“The Eastern District of Tennessee has been at the forefront in the battle against illegal pain clinics and mass-prescribing of opioids for years,” said U.S. Attorney Overbey. “Now, under the leadership of Attorney General Sessions, additional resources have been made available through recent Department of Justice initiatives, including the Opioid Fraud and Abuse Task Force. This latest indictment is a real and tangible result of all of those combined efforts. The citizens of East Tennessee can be assured that we are committed to ridding our district of illegal pill mills.”
Luca Sartini, 58, of Rome, Italy, and Miami; Luigi Palma aka Jimmy Palma, 51, of Rome, Italy, and Miami; Benjamin Rodriguez, 42, of Delray Beach, Florida; Sylvia Hofstetter, 53, of Knoxville; Courtney Newman, 42, of Knoxville; Cynthia Clemons, 45, of Knoxville; and Holli Womack aka Holli Carmichael, 44, of Knoxville, are charged in a third superseding indictment filed in the Eastern District of Tennessee.
On Jan. 19, Sartini and Palma were arrested in the Rome, Italy-area by Italian authorities. Extradition is being sought by the United States. Rodriguez is set to self-surrender. All other defendants were previously charged in prior indictments. The case has been assigned to Chief U.S. District Court Judge Thomas A. Varlan in Knoxville.
According to the indictment, Sartini, Palma, Rodriguez, Hofstetter and a co-conspirator charged in another indictment, from about April 2009 to March 2015, ran the Urgent Care & Surgery Center Enterprise (UCSC), which operated opioid based pain management clinics, “pill mills,” in Florida and Tennessee, where powerful narcotics were prescribed and/or dispensed. The defendants are alleged to have hired medical providers with DEA registration numbers, which would allow the providers to prescribe controlled substances. The prescriptions were primarily large doses of highly addictive and potentially deadly controlled substances. As alleged in the indictment, individuals seeking prescriptions would often travel long distances purporting to suffer from severe chronic pain.
The superseding indictment alleges the defendants distributed quantities of oxycodone, oxymorphone and morphine sufficient to generate clinic revenue of at least $21 million. As per the indictment, the clinics did not accept insurance, received gross fees and ordered unnecessary drug screenings defrauding Medicare. Shell companies were set up to launder the proceeds.
As alleged in the indictment, approximately 700 UCSC enterprise patients are now dead and a significant percentage of those deaths, directly or indirectly, were the result of overdosing on narcotics prescribed by the USSC Enterprise. As alleged in the indictment, the narcotics prescribed by the UCSC enterprise contributed to the deaths of another significant percentage of those patients.
The indictment further alleges that many patients arrived in groups, who were sponsored by drug dealers who paid for the pain clinic visits and prescriptions to obtain all or part of the opioids and other narcotics prescribed to the purported pain patients. In return, drug addicted patients would receive a portion of prescribed narcotics for free from the sponsor.
To date, as a result of this investigation, approximately 30 narcotics traffickers have been charged and convicted federally, and approximately 80 to 90 smaller narcotic distributers have also been charged and convicted. Today’s superseding indictment is among 35 related indictments charging approximately 140 individuals, including medical providers who worked at the pill mills, with various crimes.
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.
The superseding indictment is the result of an investigation conducted by the the U.S. Attorney’s Office for the Eastern District of Tennessee, Criminal Division’s Organized Crime and Gang Section, , and the FBI High Intensity Drug Trafficking Area (HIDTA) which is comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome Attaché of the Justice Department’s Office of International Affairs; the FBI’s liaison in Rome; the FBI Miami Health Care Fraud Strike Force; the Hollywood, Florida Police Department; the U.S. Department of Health and Human Services; the Tennessee Department of Health; and the DEA’s Knoxville Diversion Group. The Department of Justice extends its gratitude to Interpol and the Italian Financial Police (Guardia di Finanza) for their assistance in locating and apprehending the defendants.
Assistant U.S. Attorneys Tracy L. Stone and Anne-Marie Svolto of the Eastern District of Tennessee, and Trial Attorney Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section, are prosecuting the case.
In light of the nationwide opioid epidemic which led to the declaration of a public health emergency by the Acting Secretary of the Department of Health and Human Services on Oct. 26, 2017, this superseding indictment represents just the latest in a series of federal efforts in the Eastern District of Tennessee meant to combat the scourge of prescription opioids.
Two Sentenced, Another Pleads Guilty in Health Care Fraud Scheme involving Prescription PillsRead the Press Release
PITTSBURGH - United States Attorney Scott W. Brady announced today a guilty plea and two sentencings in connection with related Heath Care Fraud and prescription pill distribution cases.
United States District Judge Mark R. Hornak imposed the sentences of 15 months and 13 months of incarceration, respectively, on Jennifer Troy, age 41, of Gibsonia, Pennsylvania, and James Roberson, age 62, of Pittsburgh, Pennsylvania. Troy was convicted of a charge of Conspiracy to Distribute Oxycodone and Oxymorphone, and Roberson was convicted of a charge of Conspiracy to Distribute Oxycodone and Oxymorphone and a charge of Health Care Fraud. Judge Hornak also accepted the guilty plea of Antoinette Adair, age 49, of Pittsburgh, Pennsylvania to one count of Health Care Fraud, one count of Conspiracy to Distribute Oxycodone and Oxymorphone, and eight counts of Possession with the Intent to Distribute and Distribution of Oxycodone and Oxymorphone.
According to information presented to the court, Adair, Troy and Roberson were all part of the same group of individuals involved in a large-scale Health Care Fraud and pill distribution network. As part of the criminal enterprise, Adair, Roberson and other obtained powerful and addictive prescription pain medication through physicians under the false pretense that they intended to use that medication themselves. In fact, they intended to sell the medication for profit to individuals addicted to those medications. Additionally, medication was often paid for through taxpayer-funded health care insurance programs. Thus, the taxpayers ended paying for much of the prescription medications that these conspirators sold.
Another source of supply for the pills distributed through this network was a pill supplier from the Detroit area named Kavon Dawkins. Troy’s role in the conspiracy involved, among other things, traveling to the Detroit area with her sister, Jaqueline Bauer, for the purposes of transporting large quantities of pills to the Pittsburgh area for distribution on behalf of Dawkins. Both Bauer and Dawkins have pleaded guilty to their roles in the distribution network and are awaiting sentencing.
A total of 18 individuals have been indicted in connection with this health care fraud and pill distribution conspiracy. Ten of those individuals have pleaded guilty, with two others scheduled to plead guilty shortly.
Assistant United States Attorney Brendan T. Conway is prosecuting these cases on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration for the investigation leading to the successful prosecution of these defendants.
Two Poteau Individuals Indicted for Drug Conspiracy, Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joe David White, age 57, of Poteau, Oklahoma, and Laci Marie Fox, age, 27, of Poteau, Oklahoma, were indicted for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 nor more than 40 years imprisonment, a fine up to $5,000,000.00 or both; and for Distribution Of Methamphetamine (White 4 Counts) (Fox 3 Counts), in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and Title 18, United States Code, Section 2, punishable by not more than 20 years imprisonment, fine up to $1,000,000 or both.
The Indictment alleged that beginning on or about a date uncertain in 2015 and continuing until on or about January 9, 2017, within the Eastern District of Oklahoma and elsewhere, the defendants, Joe David White and Laci Marie Fox a/k/a Laci Marie Noah, did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 841, as follows: possession with intent to distribute and distribution of 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleges on various dates from on or about August 29, 2016, and continuing until on or about January 9, 2017, within the Eastern District of Oklahoma, the defendants, Joe David White and Laci Marie Fox, a/k/a Laci Marie Noah, did knowingly and intentionally distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Poteau Police Department, the District 16 Narcotics Task Force, and the Oklahoma Bureau of Narcotics.
John Scully, Director of the Oklahoma Bureau of Narcotics said in a prepared statement, “The Oklahoma Bureau of Narcotics is a proud partner in this multi-agency investigation to dismantle a major meth distribution operation in eastern Oklahoma. For more than two decades, meth has carved a path of destruction through families and communities across our state. We will continue to work side-by-side with our federal, state and local law enforcement agencies to aggressively target and remove drug networks, regardless of their status in the community, that threaten Oklahoman’s safety and security.”
Joe David White is currently in the custody of the United States Marshals Service for the Eastern District of California. White will be arraigned today, before a U.S. Magistrate Judge in the United States District Court for the Eastern District of California.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, will preside over the arraignment of Laci Marie Fox on January 22, 2018.Indictments are only accusations and are not evidence of guilt. Each defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorney Christopher Wilson represents the United States.
Two Marijuana Dealers SentencedRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Shareef Williams and Dylon David Alextro Downer were sentenced in federal court in Florence, South Carolina, for conspiring to distribute and distributing marijuana. Williams was also sentenced for money laundering. United States District Judge R. Bryan Harwell, of Florence, sentenced Williams to 70 months imprisonment, three years supervised release, and ordered Williams to forfeit a house he had purchased in Columbia, S.C. Downer was sentenced to 51 months imprisonment and 3 years supervised release.
Evidence presented at the change of plea hearing established that Williams purchased marijuana from Downer from January 2013 to July 2015. Downer lived in California and sent the marijuana through the mail to various locations in Florence for Williams. Williams used the profits he made from selling the marijuana to purchase money orders from the United States Postal Service then sent the money orders to Downer and others in California to purchase more marijuana. Williams purchased approximately 253 money orders valued at $248,900 and Downer sent approximately 235 pounds of marijuana to Williams.
The case was investigated by the Florence Police Department and the United States Postal Service. Assistant United States Attorney William E. Day, II of the Columbia office prosecuted the case.
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Two Florence Residents Plead Guilty in Federal Court to Manufacturing and Passing Counterfeit MoneyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Shanteley Latrice Howard, age 33, and Kermit Lee Smith, age 29, both of Florence, S.C., pled guilty in federal court in Florence, South Carolina. Howard pled guilty to conspiracy to manufacture and pass counterfeit money, and Smith pled guilty to conspiracy to pass counterfeit money, both in violation of Title 18, United States Code, Section 371. United States District Judge Bryan Harwell of Florence accepted the pleas and will impose sentences after he has reviewed the presentence reports which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that Howard and Smith were involved in a conspiracy to manufacture and pass counterfeit $100 and $50 bills in multiple states including South Carolina and North Carolina. This conspiracy, which began in 2015, included at least nine co-defendants who were responsible for making and passing over $100,000 in counterfeit money. During the search of a residence in Florence, agents seized an Epson Workforce printer and a genuine $100 “parent note”, both of which belonged to Howard and were used to print counterfeit $100 bills. In fact, over one thousand counterfeit $100 bills bearing the same serial number as this “parent note” were passed during the course of the conspiracy. Howard also passed counterfeit $100 and $50 bills on multiple occasions at businesses in Florence and other locations in South Carolina. Smith, Howard and another co-defendant traveled together to the Upstate area of South Carolina where, on October 23, 2016, they each passed counterfeit $100 bills at a grocery store in Easley.
Ms. Drake stated the maximum penalty Howard and Smith can receive is imprisonment for 5 years and a fine of $250,000.00.
The case was investigated by agents of United States Secret Service with the assistance of the Florence County Sheriff’s Office and the Florence Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Two Assistant United States Attorneys receive national awardRead the Press Release
Coalition Against Insurance Fraud awards Prosecutor of the Year citations to federal attorneys
PRESS RELEASE
Evansville-United States Attorney Josh J. Minkler announced today a national award given to two Assistant United States Attorneys serving in the Evansville office for their work in prosecuting an elaborate insurance fraud scheme. Todd Shellenbarger the branch chief in the Evansville U.S. Attorney’s Office and Kyle Sawa, prosecuted Michael Burris and 35 other defendants on fraud charges.
“I am proud of the work all of our AUSA’s do on a daily basis,” said Minkler, “but today, I am especially proud of Todd and Kyle for their exceptional work. The Burris family was the face of organized crime in the Evansville area and they put many public safety officials in harm’s way through their criminal acts.”
Between 2008 and 2014, Michael W. Burris and others, planned a series of automobile crashes in and around Evansville. They recruited persons to participate in staged vehicle crashes, made false police reports about the crashes and then filed false claims with insurance providers for “injuries” suffered in the crashes that were self-inflicted.
The Prosecutor of the Year Award is a national honor that recognizes exceptional courtroom achievements and best practices in combatting insurance crime. It is presented by the Coalition Against Insurance Fraud, a national alliance of consumer groups, insurance companies and government agencies combatting all forms of insurance fraud.
“Staged crashes literally drive up auto premiums for honest Indiana motorists,” said Dennis Jay, Executive Director, Coalition Against Insurance Fraud. “The Burris family was a factory line of fraud. It took exceptional courtroom skill by Todd Shellenbarger and Kyle Sawa to unravel their complex crash scheme and launch them on the exit ramp to prison.”
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Sulphur Man Charged with over $4 Million in Fraudulent Oil and Gas InvoicesRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury has charged JUSTIN LANE FOUST, 41, of Sulphur, Oklahoma, with defrauding Chesapeake Energy of more than $4 million through fraudulent invoices, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma.
According to an 11-count indictment unsealed this afternoon, Foust was employed by Chesapeake Operating, Inc., a wholly owned subsidiary of Chesapeake Energy Corporation, from April 2002 until September 2011. In July 2011, Foust formed Platinum Express, LLC, which became an approved vendor for Chesapeake Operating in October of that year. The indictment alleges that Chesapeake Operating contracted with Platinum Express primarily to transport waste water to disposal facilities in western Oklahoma.
Foust is charged with defrauding Chesapeake Operating by causing Platinum Express to submit false invoices for services it did not perform. In particular, the indictment alleges he created fraudulent work tickets for steam cleaning, dirt berm work, plating trucks, hauling rock, repairing fence, supplying sand separators, and other services. He allegedly generated many fraudulent invoices for amounts just under $5,000, which he knew from his prior work with Chesapeake Operating required a lower level of approval for processing and payment. According to the indictment, he either forged or electronically copied and pasted the signature and employee identification number of certain Chesapeake Operating employees to ensure that Chesapeake Operating’s accounting department would process the invoices. He further caused these work tickets and invoices to be submitted through interstate wire communications to Oildex, the Denver, Colorado, company that processed the claims on behalf of Chesapeake Operating.
The indictment alleges Foust submitted over 1,100 fraudulent invoices, which generated over $4.3 million in Chesapeake Operating payments to which Platinum Express was not entitled.
In addition to eight counts of wire fraud, Foust is charged with two counts of aggravated identity theft and one count of laundering money by transferring $43,857.09 to pay for Platinum Express payroll, after at least $10,000 of that transfer had been derived from fraud.
If convicted, Foust could be imprisoned for a maximum of twenty years on each of the eight wire-fraud counts, to be followed by three years of supervised release. Each of the two counts of aggravated identity theft would carry a mandatory minimum sentence of two years in prison, followed by a year of supervised release. The money-laundering count could lead to a sentence of ten years in prison, followed by three years of supervised release. He could also be fined up to $250,000 on each count and would be subject to mandatory restitution.
The public is reminded these charges are merely accusations and that Foust is presumed innocent unless found guilty beyond a reasonable doubt by a unanimous jury.
This case is the result of an investigation by the Oklahoma City Economic and Identity Crimes Task Force, which is composed of the United State Secret Service, the Federal Bureau of Investigation, IRS–Criminal Investigations, Homeland Security Investigations, U.S. Postal Inspection Service, Oklahoma Highway Patrol, the Oklahoma City Police Department, the Edmond Police Department, the Moore Police Department, and the Norman Police Department. Assistant U.S. Attorney Jessica L. Perry is prosecuting the case.
Reference is made to court filings for further information.
Stilwell Man Pleads Guilty to Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that James Paul Brown, age 47, of Stilwell, Oklahoma pled guilty to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), punishable by not less than 5 or more than 40 years imprisonment, up to a $5,000,000.00 fine, or both; and to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e)(1), punishable by not less than 15 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about May 18, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The indictment further alleged that on or about May 18, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to wit: a FMK Firearms, Model 9C1G2, 9x19 caliber pistol, serial number BP3233, and a Yugoslavia, Model 59/66, 7.62x39 caliber rifle, serial number M-477781, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the District 27 Drug Task Force.
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 Timothy Hammer represented the United States.
Stamford Woman Charged with Fraud Offense Stemming from Embezzlement SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in New Haven returned an indictment yesterday charging CANDACE RISPOLI, 31, of Stamford, with one count of wire fraud stemming from an embezzlement scheme.
RISPOLI appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $100,000 bond.
As alleged in the indictment, from approximately January 2012 until June 2016, RISPOLI was employed by Lodestone Management Consultants, later known as Infosys Consulting (the “Company”). Beginning in approximately 2013, RISPOLI worked for the Company from former home in East Haven, which she shared with her then-boyfriend, Michael Miano. In her capacity as a Company employee, RISPOLI had an American Express credit card to use to pay for travel, entertainment and other business expenses incurred by the Company’s employees and potential employees.
The indictment alleges that, from approximately 2013 until June 2014, RISPOLI wrongfully charged her own and Miano’s personal expenses to the Company’s American Express card. RISPOLI also wrongfully transferred funds from the Company’s American Express card to PayPal and Venmo accounts controlled by RISPOLI and Miano. To conceal her scheme, RISPOLI altered the Company’s American Express account statements and created false billing summaries, which she emailed to the Company’s accounting firm.
It is alleged that RISPOLI and Miano stole at least $800,000 as part of this scheme.
If convicted of the charge in the indictment, RISPOLI faces a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
On September 1, 2017, Miano, 31, of Branford, waived his right to be indicted and pleaded guilty to one count of conspiracy to commit wire fraud. He is released on a $100,000 bond pending sentencing.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.
St. Mary Parish man sentenced to 18 months in prison for shirking sex offender registration requirementsRead the Press Release
ALEXANDRIA, La. – United States Attorney Alexander C. Van Hook announced that a St. Mary Parish man was sentenced last week to 18 months in prison for moving to Texas without updating his sex offender registration.
Forrest Tucker, 54, of Morgan City, La., was sentenced January 12 by U.S. District Judge Dee D. Drell on one count of failure to register as a sex offender. He was also sentenced to 10 years of supervised release. According to the September 22, 2017 guilty plea, Tucker was convicted of a felony on April 17, 2008 that required him to register as a sex offender. After he served seven years in prison, St. Mary Parish Sheriff’s officers checked his address after his release in 2014, and Tucker was found absent from his Morgan City residence. A warrant was issued for his arrest, and U.S. Marshals arrested Tucker on May 4, 2017 in a hotel in San Antonio, Texas.
The U.S. Marshals Service and the St. Mary Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
St. Louis Man Indicted on Charges of Breaking in a Gun StoreRead the Press Release
St. Louis, MO – Andre Legardy, 24, St. Louis, was indicted on December 20 and appeared today for his initial appearance after being arrested on Wednesday, January 17, 2018.
The indictment alleges that on June 1, 2017, Legardy and others unknown burglarized Eagle Eye USA Shooting Sports in Wentzville, MO. Legardy stole one or more firearms that had been transported in interstate commerce from the business inventory of the premises of Eagle Eye USA.
If Legardy is convicted, this charge carries a maximum penalty of 10 years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Springfield Man Sentenced for Federal Firearm and Drug OffensesRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for firearm and drug offenses.
Robert Crichlow, 40, was sentenced by U.S. District Court Judge Mark G. Mastroianni to seven years in prison and five years of supervised release. In September 2017, Crichlow pleaded guilty to one count of being a convicted felon in possession of a firearm and ammunition and one count of possession with intent to distribute crack cocaine.
On June 4, 2015, Crichlow possessed a Taurus Model PT 145 .45 caliber pistol and seven rounds of .45 caliber ammunition. He also possessed crack cocaine packaged for street-level sale.
According to court documents, Crichlow has a long criminal history, including convictions for armed robbery, kidnapping, assault and battery, and drug possession.
United States Attorney Andrew E. Lelling and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Lelling’s Springfield Branch Office prosecuted the case.
Silver Springs Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Ronald Caryl, 25, of Silver Springs, NY, pleaded guilty to conspiracy to produce child pornography before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on February 14, 2017, the defendant began communicating on MeetMe.com, a social networking service, with a 23-year-old woman in Nashville, Tennesee. During the conversation, the two began to discuss Caryl providing the woman with $300 to have sex with her. The woman wrote, “just $300 and u do what u want to me.” The defendant replied, “do you have a young girl who could join I’ll pay more...you into young girls”? The woman responded, “as long as they r 18 and older,” to which Caryl replied, “Ya I meant younger I’ll pay 6000.” The woman replied, “I can’t put things in her mouth she gets sick she’s disabled.” The defendant went on to say, “show me your daughter,” and then the woman allegedly sent a picture to the defendant. Caryl continued to press the woman to send naked pictures of her one-year-old daughter.
A MeetMe.com staff member identified the possible endangerment of a minor and illegal content and notified the National Center for Missing and Exploited Children (NCMEC) who in turn notified the Federal Bureau of Investigation.
The plea is the result of an investigation by the Federal Bureau of investigation, under the direction of Special Agent-in-Charge Adam S. Cohen. Additional assistance was also provided by the Wyoming County Sheriff’s Office, under the direction of Sheriff Gregory J. Rudolph, the Cheektowaga Police Department, under the direction of Chief David J. Zack, and the Niagara County Sheriff’s Office, under the direction of Sheriff James R. Voutour.
Sentencing is scheduled for May 1, 2018, at 9:30 a.m. before Judge Lawrence J. Vilardo.
Sex Traffickers to Prey on Philadelphia during NFC ChampionshipRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Pennsylvania encourages the public to be aware of the possibility of sex trafficking during the NFC Championship game weekend in and around the Philadelphia area.
“We need members of the public to help law enforcement identify predators and victims of sex trafficking, especially this weekend,” said United States Attorney Louis D. Lappen. “Tragically, large events like the NFC Championship football game that draw out-of-town crowds also lure sex traffickers, who prey on the most vulnerable members of our community. We must all work together to prevent these crimes and bring perpetrators to justice.”
In recognition of January as National Human Trafficking Prevention Month, the Department of Justice has been encouraging everyone to familiarize themselves with the warning signs of human trafficking. Human trafficking is a federal crime involving the use of force, fraud, or coercion to exploit someone for labor, services, or commercial sex, or the use of juveniles to engage in prostitution. Victims are commonly Americans, but may also be foreign nationals.
Be aware of signs that may indicate someone is being held against her or his will and trafficked for sex:
- They do not hold their own identity or travel documents;
- They appear to suffer from verbal or psychological abuse designed to intimidate, degrade, or frighten;
- They are not permitted to speak for themselves;
- They are extremely nervous, especially if the victim’s “translator” is their trafficker; and
- They are not allowed to move about by themselves and seem to have little understanding of where they are.
The Eastern District of Pennsylvania has aggressively pursued sex trafficking prosecutions with great success. As recently as December 6, 2017, Kevino Graham, 36, of Philadelphia was sentenced to 100 years in federal prison for sex trafficking. Along with his three co-defendants, the defendant engaged in acts of force, threats, fraud and coercion to cause young women to engage in prostitution, including subjecting them to repeated acts of sadistic sexual torture.
Please report a potential sex-trafficking incident please contact the National Human Trafficking Hotline at 1-888-3737-888.
Seattle Woman Who Defrauded Three Public Assistance Programs of more than $320,000 Sentenced in Federal CourtRead the Press Release
A Seattle woman who defrauded programs aimed at assisting the neediest in our community was sentenced today in federal court to three years of probation, announced U.S. Attorney Annette L. Hayes. DEKA HIRSI, 39, lied to obtain subsidized housing from the Seattle Housing Authority, falsely claimed that her only employment was working all night caring for her elderly parents, and claimed benefits for overnight daycare stays for her five children. In reality, HIRSI was running a small grocery store during the day, did not provide the nightly care for her parents, and her children lived in her parents’ home and did not receive daycare services. U.S. District Judge Robert S. Lasnik ordered HIRSI to pay $328,509 in restitution calling it “among the most serious frauds I have ever seen.” The judge stopped short of imposing the prison sentence requested by prosecutors saying HIRSI suffers from Post Traumatic Stress Disorder (PTSD) based on childhood trauma in Somalia. Of the fraud Judge Lasnik said “It’s wrong, it hurts people…. I want this to be a wake-up call for the community to not look the other way when you see something wrong.”
According to records filed in the case, in 2010 the Seattle Housing Authority received a complaint that HIRSI was defrauding the Section 8 program for the needy. HIRSI falsely claimed she was a single parent of five children. In fact, her husband lived with the family and was employed as a taxi driver. Investigators discovered the fraud did not stop there. HIRSI was also defrauding the COPES program (Community Options Program Entry System) which provides federal funds to caregivers. HIRSI claimed she cared for her elderly parents each night from 5 PM to 8 AM. The investigation revealed HIRSI was rarely at her parents’ home during those hours, and in some instances she claimed to have worked 80 hours in their home when she was out of the country. Finally, HIRSI claimed that because she was working all night at her parents’ home she needed overnight childcare for her five children. The false claims to the COPES and childcare programs total $270,983. The fraud on the Seattle Housing Authority totals $57,526. HIRSI used Section 8 benefits that should have gone to others since her income from the grocery store, combined with her husband’s income, means she did not qualify for subsidized housing.
When confronted by FBI investigators about the fraud, HIRSI made numerous false statements and continued to claim she qualified for the benefits.
In August 2017, HIRSI pleaded guilty to three counts of theft of government funds.
The case was investigated by the FBI, the Health and Human Services Office of Inspector General (HHS-OIG), the Housing and Urban Development Office of the Inspector General (HUD-OIG) and the Department of Social and Health Services (DSHS) Department of Fraud and Accountability.
The case was prosecuted by Assistant United States Attorney Seth Wilkinson.
Scripps Health to Pay $1.5 Million to Settle Claims for Services Rendered by Unauthorized Physical TherapistsRead the Press Release
Scripps Health (Scripps), a health care system based in San Diego, California, has agreed to pay $1.5 million to resolve allegations that it violated the False Claims Act by charging federal health care programs for physical therapy services that were rendered by therapists who did not have billing privileges for these programs and were not supervised by an authorized provider, the Justice Department announced today.
“Federal health care programs require that services are rendered by authorized providers or under the appropriate supervision of an enrolled physician,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “These requirements help protect patients from unscrupulous or unqualified medical professionals. The Department of Justice will continue to ensure that those who knowingly violate these requirements face appropriate consequences.”
Medicare and TRICARE limit billing privileges to enrolled providers. Services from unenrolled providers can be billed as “incident to” the services of an enrolled physician, but only if the physician provided direct supervision. The United States alleged that Scripps billed Medicare and TRICARE for physical therapy services provided by therapists without billing privileges and without the appropriate supervision by a physician.
“This settlement illustrates the United States Attorney’s Office’s continued commitment to protecting the integrity of the Medicare and TRICARE programs,” said U.S. Attorney Adam L. Braverman. “Unlawfully obtained payment from taxpayer-funded programs harms the entire health care system. We will hold accountable all providers who defraud these programs.”
“Patients rightly expect qualified medical providers, or at least professionals working under the supervision of authorized providers,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “As charged, these billing practices cheat patients, taxpayers, and the Medicare program.”
The settlement resolves allegations filed in a lawsuit by Suzanne Forrest, a former Scripps employee, under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in any recovery. The civil lawsuit was filed in the Southern District of California and is captioned United States ex rel. Forrest v. Scripps Health, Case No. 16-CV-0634. As part of this settlement, Ms. Forrest will receive $225,000.
“Holding providers accountable protects patients and tax-payer funded health care programs,” said Eric S. Birnbaum, FBI Special Agent in Charge of the San Diego Field Office. “The FBI will continue to work jointly with its law enforcement partners, utilizing all tools available, to pursue the repayment of monies to federal health care programs such as Medicare and TRICARE.”
"I appreciate the Department of Justice and the U.S. Attorney for its untiring efforts in holding health care providers accountable to the American taxpayer and our patients," said Vice Admiral Raquel Bono, director of the Defense Health Agency. "The Department of Justice's efforts continue to safeguard the health care benefit for American service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department and other state and federal agencies to investigate all those who participated in fraudulent practices."
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of California, the Office of Inspector General for the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Defense Health Agency Program Integrity Office.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Scripps Health to Pay $1.5 Million to Settle Claims for Services Rendered by Unauthorized Physical TherapistsRead the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – January 19, 2017
SAN DIEGO – Scripps Health (Scripps), a health care system based in San Diego, California, has agreed to pay $1.5 million to resolve allegations that it violated the False Claims Act by charging federal health care programs for physical therapy services that were rendered by therapists who did not have billing privileges for these programs and were not supervised by an authorized provider, the Justice Department announced today.
“Federal health care programs require that services are rendered by authorized providers or under the appropriate supervision of an enrolled physician to help protect patients from unscrupulous or unqualified medical professionals,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “The Department of Justice will continue to ensure that those who knowingly violate these requirements face appropriate consequences.”
Medicare and TRICARE limit billing privileges to enrolled providers. Services from unenrolled providers can be billed as “incident to” the services of an enrolled physician, but only if the physician provided direct supervision. The United States alleged that Scripps billed Medicare and TRICARE for physical therapy services provided by therapists without billing privileges and without the appropriate supervision by a physician.
“This settlement illustrates the United States Attorney’s Office’s continued commitment to protecting the integrity of the Medicare and TRICARE programs,” said U.S. Attorney Adam L. Braverman. “Unlawfully obtained payment from taxpayer-funded programs harms the entire health care system. We will hold accountable all providers who defraud these programs.”
“Patients rightly expect qualified medical providers, or at least professionals working under the supervision of authorized providers,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “As charged, these billing practices cheat patients, taxpayers, and the Medicare program.”
The settlement resolves allegations filed in a lawsuit by Suzanne Forrest, a former Scripps employee, under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in any recovery. The civil lawsuit was filed in the Southern District of California and is captioned United States ex rel. Forrest v. Scripps Health, Case No. 16-CV-0634. As part of this settlement, Ms. Forrest will receive $225,000.
“Holding providers accountable protects patients and tax-payer funded health care programs,” said Eric S. Birnbaum, FBI Special Agent in Charge of the San Diego Field Office. “The FBI will continue to work jointly with its law enforcement partners, utilizing all tools available, to pursue the repayment of monies to federal health care programs such as Medicare and TRICARE.”
“I appreciate the Department of Justice and the U.S. Attorney for their untiring efforts in holding health care providers accountable to the American taxpayer and our patients,” said Vice Admiral Raquel Bono, director of the Defense Health Agency. “The Department of Justice's efforts continue to safeguard the health care benefit for American service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department and other state and federal agencies to investigate all those who participated in fraudulent practices.”
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California, the Civil Division’s Commercial Litigation Branch of the Department of Justice, the Office of Inspector General for the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Defense Health Agency Program Integrity Office.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
San Francisco Resident Known as the Dreaded Bandit Sentenced to Twenty One Years in Prison for Armed Bank Robbery and Related CrimesRead the Press Release
SAN FRANCISCO – Andre Brown was sentenced today to 252 months in prison and ordered to pay $170,451 in restitution for four armed bank robberies and related crimes, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Susan Illston, U.S. District Judge, following Brown’s plea of guilty to the charges.
Brown, 60, of San Francisco, pleaded guilty on September 1, 2017, to bank robbery, conspiracy to commit bank robbery, attempted armed bank robbery, and being a felon in possession of a firearm. According to the plea agreement, Brown admitted to committing four bank robberies in San Francisco and San Mateo at gunpoint between April 2016 and July 2016. Brown admitted to stealing $170,451 from bank teller drawers and vaults over the course of those four robberies. The plea agreement describes details of Browns crimes. For example, the plea agreement indicates that during a robbery in San Francisco on April 22, 2016, Brown pointed a revolver at a bank employee and ordered bank employees to the vault room. Brown also admitted to robbing a credit union in San Mateo on May 12, 2016, during which Brown ordered employees at gunpoint to the bank vault room. Similarly, on June 23, 2016, Brown robbed a bank in San Francisco and on July 11, 2016, returned to the bank to rob it again. Brown used a handgun during both robberies.
The FBI and the San Francisco Police Department identified Brown as a suspect in the robberies after the authorities dubbed the suspect the “Dreaded Bandit” because of the dreadlocked wig Brown wore during a robbery. The investigation ended in Brown’s arrest in August of 2016. Specifically, on August 12, 2016, Brown and a co-conspirator, Javier Jenkins, planned a fifth bank robbery in San Francisco after which Brown approached a bank wearing a disguise. Brown intended to rob the bank, however, both Brown and Jenkins were arrested before completing their plan.
A federal grand jury indicted Brown on February 28, 2017. Initially, Brown was charged with conspiracy to commit bank robbery, attempted armed bank robbery, using, carrying, and possessing a firearm during and in relation to a crime of violence, and being a felon in possession of a firearm. Pursuant to the guilty plea, Brown pleaded guilty to four counts of bank robbery, in violation of 18 U.S.C. §§ 2113(a) and (d), and one count each of conspiracy to commit bank robbery, in violation of 18 U.S.C. §§ 371 and 2113(a); attempted armed bank robbery, in violation of 18 U.S.C. §§ 2113(a) and (d); and being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
In addition to the prison term and restitution, Judge Illston also ordered Brown to serve a three-year term of supervised release. Brown has been in custody since his arrest in August of 2016 and will begin serving the sentence immediately.
On August 18, 2017, Brown’s co-conspirator, Javier Jenkins, also known as Ollie Bryant, pleaded guilty to his role in the scheme. Jenkins admitted serving as Brown’s getaway driver during the attempted bank robbery in August 2016. On December 1, 2018, Judge Illston sentenced Jenkins to 63 months’ imprisonment for attempt to commit bank robbery and conspiracy to commit bank robbery.
Assistant U.S. Attorneys Katherine Lloyd-Lovett and Helen Gilbert are prosecuting the case with the assistance of Vanessa Vargas and Marina Ponomarchuk. The prosecution is the result of an investigation by the FBI and the San Francisco Police Department.
Rochester Brother and Sister Sentenced for Harboring Undocumented Restaurant WorkersRead 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 J. Guadalupe Hernandez, 33, and his sister, Felisita Hernandez, 32, both of Farmington, NY, who were convicted of conspiracy to harbor illegal aliens, harboring an illegal alien, and pattern and practice, were sentenced by U.S. District Judge David G. Larimer. J. Guadalupe Hernandez was sentenced to 21 months in prison and ordered to forfeit $70,101.58. Felisita Hernandez was sentenced to time served to include six months home confinement.
Assistant U.S. Attorney John J. Field, who handled the case, stated that between February 2014 and December 2015, the defendants conspired to conceal aliens working at El Jimador Mexican Restaurant in Farmington, NY, and Molcajetes Mexican Grill, in Greece, NY, in violation of the immigration laws of the United States. El Jimador was owned by defendant Guadalupe Hernandez, while Molcajetes was owned by Felisita Hernandez.
In furtherance of the conspiracy, the defendants provided apartment housing in Farmington and Geneva for some of the undocumented workers. In addition to providing housing, Guadalupe and Felisita Hernandez paid the aliens in cash in order further to conceal their employment.
The sentencings are the culmination of an investigation on the part of Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Richmond Drug Trafficker Sentenced to 12 Years in PrisonRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 12 years in prison for distributing cocaine and being a felon in possession of a firearm.
According to court documents, Parrish Williams, 31, was on federal supervision when he committed these crimes. According to court documents, Williams began selling “crack” cocaine and other controlled substances within months of his release from federal prison for previous drug and firearms convictions. Evidence presented at his sentencing hearing showed that Williams was engaged in the distribution of narcotics from October 2016 until his arrest in July 2017.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division, and Alfred Durham, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-95.
Registered Sex Offender Held on Child Pornography ChargesRead the Press Release
PROVIDENCE, RI – A registered sex offender living in Providence has been ordered detained in federal custody on charges he allegedly possessed and distributed child pornography, and allegedly transferred obscene material to a 14-year-old female.
Michael Llorca, 47, of Providence, was ordered detained on Thursday by U.S. District Court Magistrate Judge Patricia A. Sullivan on a federal criminal complaint charging him with one count each of transfer of obscene material to a minor, possession of child pornography with the intent to view and distribution of child pornography. Llorca was arrested Thursday by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force, following a three-month investigation culminating with the execution of a court-authorized search of his residence.
The arrest and detention of Michael Llorca is announced by United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations for New England.
According to court documents, it is alleged that in October 2017, the National Center for Missing and Exploited Children (NCMEC) received information that an individual allegedly had sent sexually explicit text messages and illicit images to a minor female via an application with which users can communicate and share images via text messages. The NCMEC report was reviewed by a member of the ICAC Task Force who determined that the IP address allegedly used to send the text messages and photographs belonged to Michael Llorca.
According to court documents, it is alleged that after members of the ICAC Task Force identified Llorca’s IP address as having allegedly been used to send the sexually explicit text messages and illicit images, a member of the ICAC Task Force allegedly observed a computer or other device using the same IP address to share files of suspected child pornography on a peer-to-peer file-sharing network.
On Thursday, members of the ICAC Task Force executed a federal court-authorized search of Llorca’s Providence residence and seized, among other items, sixteen electronic media storage devices consisting of seven laptop computers, six smartphones, two Apple iPods and two SD cards. Also seized was approximately two grams of heroin.
According to court documents, Llorca is a registered sex offender, having been convicted of rape of a child in Massachusetts in August 1997.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The Rhode Island State Police ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit, special agents from Homeland Security Investigations and United States Postal Inspection Services, and detectives from the Warwick, Cranston, Newport, East Providence, Pawtucket, North Kingstown, Portsmouth, Woonsocket, Bristol and Bristol Police Departments.
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Randolph Man Sentenced for Drug TraffickingRead the Press Release
BOSTON – A Randolph man who supplied narcotics to members of the Boston street gang Columbia Point Dawgs (CPD) was sentenced yesterday in federal court in Boston for drug trafficking.
Michael Coke, a/k/a “Dirty Mike,” of Randolph, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 30 months in prison and four years of supervised release. In June 2017, Coke pleaded guilty to conspiracy to distribute cocaine base and cocaine.
The defendant and 53 other members and associates of CPD were arrested and indicted in June 2015 on racketeering, drug trafficking, and firearms charges.
Michael Coke and his brother, David Coke, were long-time associates of CPD and ran a violent robbery and drug trafficking crew out of David Coke’s auto-body shop in Stoughton and Michael Coke’s storage facility in Randolph. The Coke brothers were supplied with heroin and cocaine by co-defendant Francisco Arias and were supplied kilograms of cocaine by co-defendant Larry Bailey, who used his two Boston businesses – Finest Cuts barbershop on Blue Hill Avenue and Bailey’s Laundromat on Harrison Avenue – to sell cocaine and cocaine base.
In January 2018, David Coke was sentenced to five years in prison and Francisco Arias was sentenced to 175 months in prison. Larry Bailey is scheduled to be sentenced in February 2018.
According to court documents, CPD, also known on the street as “the Point,” was Boston’s largest and most influential citywide gang. The criminal organization started in the 1980s in the former Columbia Point Housing Development (now Harbor Point), and, over the years, gang members established drug trafficking crews throughout Boston. It is alleged that CPD was responsible for the distribution of multiple kilogram quantities of heroin, cocaine, crack cocaine, and oxycodone throughout Boston and Maine.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Suffolk County District Attorney Daniel F. Conley; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Boston Police Commissioner William Evans; and Commissioner Thomas Turco of the Massachusetts Department of Correction, made the announcement.
Pollock prisoner pleads guilty possessing an improvised knifeRead the Press Release
ALEXANDRIA, La. – United States Attorney Alexander C. Van Hook announced today that a Pollock prisoner pleaded guilty to possessing an improvised knife.
Torrey Griffin, 27, a Pollock prisoner, pleaded guilty before U.S. District Judge Dee D. Drell to one count of possessing contraband in a prison. According to the guilty plea, Griffin was searched on July 30, 2017. A prison guard discovered that Griffin could not clear the metal detector and during a pat down, the guard removed a knife from Griffin’s pants. The knife was approximately six and a half inches long and made of metal sharpened on one end.
Griffin faces up to five years in prison, one year of supervised release and a $250,000 fine. The court set sentencing for April 27, 2018.
The FBI and the U.S. Bureau of Prisons-Special Investigative Services conducted the investigation. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
Pocatello Pair Sentenced in Federal Court for Possession of Methamphetamine with Intent to DistributeRead the Press Release
POCATELLO – Lataya Anderson, 21, and Matthew Toombs, 29, of Pocatello, were sentenced in federal court on Wednesday for possession of a methamphetamine with intent to distribute, U.S. Attorney Bart M. Davis announced. Chief U.S. District Judge B. Lynn Winmill ordered Anderson to serve 24 months in prison followed by three years of supervised release and ordered Toombs to serve 51 months in prison followed by three years of supervised release.
According to factual statements from the plea agreements, Anderson and Toombs sold 14.31 grams of methamphetamine for $350 to a confidential informant working with police investigators on March 10, 2017.
On April 27, 2017, Anderson and Toombs were arrested by the Idaho State Police in the parking lot of a Maverick gas station in Pocatello. Detectives observed Anderson and Toombs drive to the Maverick. Toombs was arrested on a felony warrant shortly after they arrived. Anderson was questioned by police officers and was found to have a vial with approximately 3.6 grams of methamphetamine in her pocket. Police conducted an inventory of the vehicle driven by Anderson and Toombs. They located, among other things: approximately 23.5 grams of methamphetamine, a digital scale with residue, a Phoenix Arms .22 caliber handgun, a drug ledger, approximately 2.8 grams of marijuana, small clean plastic baggies, and a glass drug pipe.
The case was investigated through the combined efforts of the Bannock County Prosecutor’s Office, the Idaho State Police, and the Eastern Idaho Partnership. The Eastern Idaho Partnership is a collaborative effort among local communities, law enforcement, the State of Idaho, and the U.S. Attorney for the District of Idaho. The Partners combine efforts to fund and support a Special Assistant United States Attorney, or “SAUSA.” The SAUSA, Bryan Wheat, works with local prosecutors and law enforcement to prosecute serious local crimes in federal court. The Partnership focuses its efforts on regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus that affect the southeast Idaho region.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, a part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launches in 2001.
Pimp Sentenced to 30 Years for Prostituting Two Minor VictimsRead the Press Release
ALEXANDRIA, Va. – A Dumfries man was sentenced today to 30 years in prison and ordered to pay $648,000 in restitution for sex trafficking two minor victims from July 2013 to July 2015.
Michael Edward Gunn, 41, is a previously convicted sex offender. According to court documents, Michael Gunn lured and enticed the two minor victims into his prostitution ring and kept them there by providing drugs, telling the victims the ring was a family that took care of each other, providing the victims a place to stay, and by engaging in sexual relationships with both minor victims. During the course of the conspiracy, the minor victims brought in approximately $648,000 in earnings, the majority of which went to Michael Gunn.
According to evidence presented at trial, Michael Gunn helped create online advertisements, drove them to prostitution appointments, and collected and controlled the money. Evidence also showed that Michael Gunn knew both minor victims were underage. For example, around the time one of the victims was 14 years old, Gunn saw a missing persons poster with the girl’s photo and her actual date of birth.
Michael Gunn was joined in this conspiracy to prostitute the two minors by his wife, Angel Gunn, 35, and his girlfriend, Vanessa Dominguez, 31. Both women were adult prostitutes who assisted him in running the prostitution ring and testified at trial as to Michael Gunn’s role in leading the conspiracy. Both women pleaded guilty to sex trafficking minors. Angel Gunn was sentenced to 140 months in prison, and Vanessa Dominguez was sentenced to 120 months in prison.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, M. Jay Farr, Arlington County Chief of Police, Barry M. Barnard, Chief of Prince William County Police, and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Maureen Cain and Kimberly R. Pedersen prosecuting the case.
The Dumfries Police Department provided significant assistance with this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-137.
North Suburban Businessman Guilty of Evading More Than $800,000 in State and Federal Income TaxesRead the Press Release
CHICAGO — A north suburban businessman who operated a cellular telephone distributorship throughout Illinois and other Midwestern states has pleaded guilty to willfully failing to pay more than $800,000 in personal and corporate income taxes.
JORDAN ECKERLING, the owner of Pagecomm of Illinois Inc., admitted in a plea agreement that from 2008 to 2012 he caused tax losses to the United States and Illinois in the total amount of $806,099. As the sole shareholder and officer of Pagecomm, Eckerling attempted to conceal income by causing the company to issue him “business checks” that he cashed and used for personal expenses, the plea agreement states. Eckerling also caused the company to directly pay a housekeeper to regularly clean Eckerling’s boat and his primary and secondary residences, the plea agreement states. Eckerling also charged personal expenses to Pagecomm’s credit card accounts, including for a family vacation to Cancun, Mexico.
Eckerling, 52, of Highland Park, pleaded guilty Wednesday to one count of tax evasion. The conviction is punishable by up to five years in prison and a fine of up to $100,000. U.S. District Judge Virginia M. Kendall set sentencing for May 17, 2018, at 10:00 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
In addition to the tax evasion, Eckerling admitted in his plea agreement that he added a relative to the payroll of Pagecomm and its successor company, PCW Holdings Inc., even though the relative was employed elsewhere and did no work for either company. Eckerling did this so that he could obtain health insurance for his family under the relative’s name instead of his own, thereby concealing that he was an income-earning employee of the companies, the plea agreement states.
The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
North Carolina Man Convicted of Sexual Exploitation of Joplin ChildRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that a North Carolina man has been convicted of the sexual exploitation of a child in Joplin, Mo.
David Lee Perkins, 33, of Winston-Salem, N.C., was found guilty following a two-day bench trial before U.S. District Judge M. Douglas Harpool that concluded on Jan. 9, 2018. The court’s findings of fact, conclusions of law and adjudication of guilt was released on Thursday, Jan. 18, 2018.
The court found that Perkins crossed state lines into Missouri with the intent to engage in a sexual act with a child victim under the age of 12, identified in court documents as Jane Doe, from April 16, 2014, to Dec. 11, 2016.
Additionally, Perkins had already pleaded guilty on Jan. 3, 2018, to two additional counts contained in the federal indictment. Perkins admitted that he used the victim to produce child pornography and that he distributed child pornography.
Joplin police officers were dispatched to a local hotel where Perkins was staying on Dec. 11, 2016. A female acquaintance of Perkins told officers that she found several videos on an iPad of Perkins engaged in sexually explicit conduct with Jane Doe. Officers contacted Perkins in his hotel room and placed him under arrest.
Perkins told investigators he used his iPad and iPhone to photograph and create videos of the sexually explicit conduct he engaged in with Jane Doe in various hotels and motels in Joplin. Investigators found three video files on Perkins’s iPad. Perkins shared those images and videos of child pornography with at least one other person by attaching them to text messages.
Under federal statutes, Perkins is subject to a mandatory minimum sentence of 30 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Joplin, Mo., Police Department, the FBI, and the Newton, N.C., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
New Jersey Man Indicted for Sex Travel to Placer and El Dorado Counties and for Production of Child PornographyRead the Press Release
SACRAMENTO, Calif. — On Thursday, a federal grand jury returned a four-count indictment against Michael Anaya-Otero, 21, of Elizabeth, New Jersey, charging him with production of child pornography and interstate travel with the intent to engage in illicit sexual conduct with a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, in April 2016 and again in January 2017, Anaya-Otero allegedly traveled to Placer County in order to engage in sexual conduct with a seventh grader. Anaya-Otero is also alleged to have taken sexually explicit pictures of the victim, which he then transported with him back to New Jersey. Separately, in June 2017, Anaya-Otero had an online relationship over Snapchat and Instagram with a second juvenile victim in El Dorado County, and he is alleged to have maintained sexually explicit images of this juvenile victim on his cellphone.
On January 5, 2018, Anaya-Otero was arrested in New Jersey.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.
If convicted, Anaya-Otero faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The charge of production of child pornography carries a mandatory minimum prison sentence of 15 years. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Monongalia County man admits to firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Morgantown, West Virginia man has admitted to a firearm charge, United States Attorney Bill Powell announced.
Jason Perry, age 35, pled guilty to one count of “Unlawful Possession of a Firearm.” Perry admitted to illegally possessing 9mm pistol in Monongalia County in March 2017.
Perry faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Michael “the Situation” Sorrentino and His Brother, Marc Sorrentino, Plead Guilty to Tax CrimesRead the Press Release
Reality television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, pleaded guilty today to violating federal tax laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Craig Carpenito for the District of New Jersey and Internal Revenue Service Criminal Investigation (IRS CI) Special Agent in Charge Jonathan D. Larsen.
According to documents and information provided to the court, Michael Sorrentino, 36, pleaded guilty to one count of tax evasion and Marc Sorrentino, 38, pleaded guilty to one count of aiding in the preparation of a fraudulent tax return.
“Today’s pleas are a reminder to all individuals to comply with the tax laws, file honest and accurate returns and pay their fair share,” said Principal Deputy Assistant Attorney General Zuckerman. “The Tax Division is committed to continuing to work with the IRS to prosecute those who seek to cheat the system, while honest hardworking taxpayers play by the rules.”
“What the defendants admitted to today, quite simply, is tantamount to stealing money from their fellow taxpayers,” said U.S. Attorney Carpenito. “All of us are required by law to pay our fair share of taxes. Celebrity status does not provide a free pass from this obligation.”
“As we approach this year’s filing season, today’s guilty pleas should serve as a stark reminder to those who would attempt to defraud our nation’s tax system,” stated Jonathan D. Larsen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office. “No matter what your stature is in our society, everyone is expected to play by the rules, and those who do not will be held accountable and brought to justice.”
Michael Sorrentino was a reality television personality who gained fame on “The Jersey Shore,” which first appeared on the MTV network. According to documents and information provided to the court, he and his brother, Marc, created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to take advantage of Michael’s celebrity status.
Michael Sorrentino admitted that in tax year 2011, he earned taxable income, including some that was paid in cash, and that he concealed a portion of his income to evade paying the full amount of taxes he owed. He also made cash deposits into bank accounts in amounts less than $10,000, in an effort to ensure that these deposits would not come to the attention of the IRS.
Marc Sorrentino admitted that for tax year 2010, he earned taxable income and that he assisted his accountants in preparing his personal tax return by willfully providing them with false information and fraudulently underreporting his income.
U.S. District Judge Susan D. Wigenton scheduled sentencing for April 25. Michael Sorrentino faces a statutory maximum sentence of five years in prison for tax evasion. Marc Sorrentino faces a statutory maximum sentence of three years in prison for aiding in the preparation of a fraudulent tax return. Both also face a period of supervised release, restitution and monetary penalties. Gregg Mark, the accountant for the Sorrentino brothers, previously pleaded guilty in 2015 to conspiring to defraud the United States with respect to their tax liabilities.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Carpenito praised special agents of IRS CI, who conducted the investigation, and Trial Attorneys Yael T. Epstein and Jeffrey B. Bender of the Tax Division of the U.S. Department of Justice and Assistant U.S. Attorney Jonathan W. Romankow, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Michael ‘The Situation’ Sorrentino and His Brother, Marc Sorrentino, Admit Tax ChargesRead the Press Release
NEWARK, N.J. – Television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, both admitted today to violating federal tax laws, U.S. Attorney Craig Carpenito, District of New Jersey; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the U.S. Department of Justice, Tax Division; and IRS Special Agent in Charge Jonathan D. Larsen announced.
Michael Sorrentino, 36, pleaded guilty to Count 13 of the superseding indictment, which charges him with tax evasion. Marc Sorrentino, 38, pleaded guilty to Count 5, which charges him with aiding in the preparation of a false and fraudulent tax return. The brothers entered their guilty pleas before U.S. District Judge Susan D. Wigenton in Newark federal court.
“What the defendants admitted to today, quite simply, is tantamount to stealing money from their fellow taxpayers,” U.S. Attorney Carpenito said. “All of us are required by law to pay our fair share of taxes. Celebrity status does not provide a free pass from this obligation.”
“As we approach this year’s filing season, today’s guilty pleas should serve as a stark reminder to those who would attempt to defraud our nation’s tax system,” Jonathan D. Larsen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office, said. “No matter what your stature is in our society, everyone is expected to play by the rules, and those who do not will be held accountable and brought to justice.”
According to documents filed in this case and statements made in court:
Michael Sorrentino was a reality television personality who gained fame on “The Jersey Shore,” which first appeared on the MTV network. He and his brother, Marc, created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to take advantage of Michael’s celebrity status.
Michael Sorrentino admitted that in tax year 2011, he earned taxable income, including some that was paid in cash, and that he took certain actions to conceal some of his income to avoid paying the full amount of taxes he owed. He made cash deposits into bank accounts in amounts less than $10,000 each so that these deposits would not come to the attention of the IRS.
Marc Sorrentino admitted that during tax years 2010, 2011 and 2012, he earned taxable income and that he assisted his accountants in preparing his personal tax return for those years, willfully providing them with false information. His personal tax returns under-reported his total income and taxable income.
The tax evasion charge to which Michael Sorrentino pleaded guilty carries a maximum penalty of five years in prison. The charge of aiding in the preparation of false and fraudulent tax return to which Marc Sorrentino pleaded guilty carries a maximum penalty of three years in prison. Both charges are punishable by a potential $250,000 fine. Sentencing is scheduled for April 25, 2018.
U.S. Attorney Carpenito and Principal Deputy Attorney General Zuckerman credited special agents of the IRS, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Criminal Division in Newark; Trial Attorneys Yael T. Epstein and Jeffrey B. Bender of the Tax Division of the U.S. Department of Justice.
Miami-Dade County Resident Sentenced to 64 Months for Stolen Identity Refund FraudRead the Press Release
A Miami-Dade County resident was sentenced to 64 months in prison for his participation in a stolen identity tax refund scheme. Nick Rickey Choute’s sentence will be followed by three years of supervised release. Additionally, Choute was ordered to pay $191,280 in restitution, a $500 special assessment, and a forfeiture money judgment of $452,006.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Nick Rickey Choute, 24, of Miami, previously pled guilty to charges relating to his participation in a stolen identity tax refund scheme that resulted in the submission of more than $400,000, in fraudulent refund claims to the IRS for tax years 2014 and 2015. Specifically, Choute pled guilty, without a plea agreement, to all charges in the indictment: one count of fraudulent use of access devices, in violation of 18 U.S.C. § 1029(a)(2); one count of possession of fifteen or more unauthorized access devices, in violation of in violation of 18 U.S.C. § 1029(a)(3); and three counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). Choute pled guilty after a jury was selected, but before jury addresses commenced.
According to documents filed with the court, from approximately January 2015 through March 2016, in Miami-Dade County, Choute used stolen identities, including the names, dates of birth, and social security numbers of hundreds of South Florida residents born in the 1990s, to file more than 150 tax returns with the IRS. These fraudulent returns sought more than $450,000, in refunds. Choute directed the refunds to be deposited into bank accounts and prepaid debit card accounts that he opened in the names of other identity theft victims. He then withdrew the fraudulently obtained funds. In addition, when the IRS conducted a search of Choute’s home in March 2016, more than 2,500 victims’ identities were found in notebooks recovered from Choute’s bedroom, and personal identifying information of additional victims was also discovered on Choute’s iPad.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Quinshawna Landon.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mead Woman Pleads Guilty to Conspiracy, Identity TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nicole Marie Harring, age 42, of Mead, Oklahoma, pled guilty to Count One, Conspiracy, in violation of Title 18, United States Code, Section 371, punishable by not less than 5 years imprisonment, and up to a $250,000.00 fine or both, and to Count Nineteen, Aggravated Identity Theft, in violation of Title 18 U.S.C. § 1028A(c)(2), punishable by 2 years imprisonment. A copy of the full indictment can be found online at /media/929731/dl?inline.
The Indictment alleges that from on or about November 28, 2016, to on or about June 9, 2017, in the Eastern District of Oklahoma and elsewhere, that the defendant, conspired: to knowingly and willfully, with intent to deceive, make, utter and possess counterfeit securities consisting of checks purporting to be drawn on banks which operate in or the activities of which affect interstate commerce, in violation of 18 U.S.C. ' 513(a); to obtain money and property by means of materially false pretenses, representations and promises, in violation of 18 U.S.C. § 1343; and to knowingly possess without lawful authority a means of identification of another person, to-wit: D.M., with the intent to commit, aid or abet in the commission of unlawful activity, in violation of 18 U.S.C. ' 1028(a)(7).The charges arose from an investigation by the Durant Police Department, the District 19 District Attorney’s Office, the Chickasaw Nation Tribal Police, the Choctaw Nation Tribal Police, the Bureau of Indian Affairs, and the United States Secret Service. Assistant United States Attorney Melody Nelson will be prosecuting the case on behalf of the United States.
United States Attorney Brian J. Kuester said, “This investigation is the result of dedicated law enforcement professionals from local, state, tribal and federal jurisdictions working together to serve and protect our communities. This team effort by many different agencies is a wonderful example of the effectiveness of multi-jurisdictional efforts to investigate criminal activity.”
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.
Maryland Man Pleads Guilty to Federal Firearm Offense Committed Months After Release from Prison in Shooting CaseRead the Press Release
WASHINGTON – Vincenzo Lomax, 22, of Temple Hills, Md., pled guilty today to a federal firearms charge stemming from his possession of a loaded firearm on July 4, 2017, in Southeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Lomax pled guilty in the U.S. District Court for the District of Columbia to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. He is to be sentenced on May 31, 2018 by the Honorable Christopher R. Cooper. He faces a statutory maximum of 10 years of incarceration.
According to the government’s evidence, on July 4, 2017, just after 2 a.m., MPD officers were in full uniform patrolling the 3200 block of Buena Vista Terrace SE, when they observed a small group of individuals —including Lomax— in the middle of the street. Lomax was wearing a backpack strapped to the front of his chest. Approximately 10 seconds after officers stopped their car to make contact with the group, Lomax took off in a full sprint. While he ran from officers, Lomax tossed his backpack, which contained a loaded firearm, to the ground.
After tossing the backpack, Lomax jumped a fence, continued running, and hid from officers at the bottom of an exterior stairwell leading to a residence. MPD officers set up a perimeter in an attempt to ensure that Lomax did not escape. Within several minutes, police located him crouched in a fetal position hiding at the bottom of the stairwell and sweating profusely. The cellphone that he was holding was subsequently searched pursuant to a search warrant and contained several photographs of Lomax holding numerous firearms. Lomax was arrested and has remained in custody ever since.
At the time of his arrest, Lomax was on supervision with the U.S. Parole Commission in connection with a March 20, 2015 shooting that took place in broad daylight aboard a Metrobus in Southeast Washington. As the bus traveled in the 2200 block of Good Hope Road SE, Lomax and a male passenger were involved in an altercation that prompted Lomax to pull out a loaded pistol. While Lomax and the male passenger physically struggled with each other, Lomax ended up shooting a wholly uninvolved innocent woman. Fortunately, the woman’s injuries were not life-threatening. Lomax pled guilty in the Superior Court of the District of Columbia to two felony offenses related to the shooting and was sentenced in June 2015 to two years in prison. He faces formal revocation of his supervised release and additional incarceration separate and apart from the sentence that he faces for possessing a firearm on July 4, 2017.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of the MPD officers who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Christopher Macchiaroli, Kondi Kleinman, and Jason Feldman, and Paralegal Specialist Candace Battle.
Mark Yancey Steps Down as United States AttorneyRead the Press Release
Oklahoma City, Oklahoma – Mark A. Yancey has accepted a Department of Justice position at the National Advocacy Center in Columbia, South Carolina, and has therefore announced his resignation as United States Attorney for the Western District of Oklahoma. First Assistant U.S. Attorney Robert J. Troester will become Acting U.S. Attorney at midnight on Saturday, January 20.
U.S. Attorney Yancey joined the office in 1991, after having served as a Special Agent with the FBI. He has prosecuted many cases and served in many roles, including as First Assistant U.S. Attorney and Criminal Chief under U.S. Attorney Sanford C. Coats from January 2010 until January 2016. He became Acting U.S. Attorney upon Mr. Coats’s resignation and was later appointed U.S. Attorney by the Attorney General and then by the district judges of the Western District of Oklahoma. During his tenure as U.S. Attorney, he has served on three sub-committees of the Attorney General’s Advisory Counsel—those concerning national security, civil rights, and Native American issues.
On January 22, Mr. Yancey will take up the position of Assistant Director at the National Advocacy Center, where he will coordinate training for federal prosecutors in national security and other criminal cases.
Upon Mr. Yancey’s resignation, First Assistant U.S. Attorney Troester will become Acting U.S. Attorney by operation of law under the Vacancies Reform Act of 1998. Like U.S. Attorney Yancey, First Assistant Troester has served the Department of Justice for many years. He became an Assistant U.S. Attorney in September 1995, after several years in private practice in Oklahoma City. As an Assistant United States Attorney, Troester has held various supervisory positions, including Civil Chief, Executive Assistant U.S. Attorney, First Assistant U.S. Attorney, and Acting U.S. Attorney on two prior occasions. Troester has also served on detail assignments within the Department of Justice in Washington D.C. as a Deputy Director in the Executive Office for United States Attorneys and, since April 2017, he has served as an Associate Deputy Attorney General and Senior Counsel to Deputy Attorney General Rod Rosenstein.
"I would like to thank Mr. Yancey for his two years of service in the challenging position of U.S. Attorney," said Mr. Troester. "He has demonstrated steady leadership for the talented prosecutors and civil litigators who are working to protect fellow citizens from crime and to further the interests of the United States. The task of continuing that leadership humbles me, but I look forward to working with federal, state, and tribal authorities for the common good, particularly on this Administration’s efforts to reduce violent crime."
Manchester Man Pleads Guilty to Bank RobberyRead the Press Release
CONCORD, N.H. - Aaron Pelchat, 36, of Manchester, pleaded guilty in federal court to bank robbery, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on May 23, 2017, Pelchat walked into a Northway Bank in Manchester, New Hampshire, and handed the teller a note demanding money. The teller gave Pelchat a quantity of United States currency. Surveillance cameras captured images of the robbery which were broadcast on local news outlets. Numerous individuals identified Pelchat from the photographs and he was apprehended the next day, May 24, 2017.
Pelchat is scheduled to be sentenced on May 8, 2018.
“Bank robberies are violent crimes that often can jeopardize the safety of bank employees, customers, and other members of the community,” said Acting U.S. Attorney Farley. “The U.S. Attorney’s Office is committed to working with the law enforcement community to combat violent crimes such as bank robberies. By combatting violent crime, our goal is ensure that the citizens of the Granite State feel safe in their local communities.”
“The Federal Bureau of Investigation (FBI) would like to thank the concerned citizens who came forward with information to help identify Mr. Pelchat. Robbing banks can put innocent lives at risk and we’re lucky Mr. Pelchat was arrested before anyone got hurt,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “Together with our law enforcement partners, the FBI will continue to do everything we can to make our communities safer.”
This matter was investigated by the Manchester Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Man Who Illegally Cut “Music Wood” Maple on Federal Land Sentenced to PrisonRead the Press Release
A long-time resident of the Olympic Peninsula was sentenced today in U.S. District Court in Tacoma to 30 days in prison for felling and stealing a big leaf maple on federal land near Olympic National Park, announced U.S. Attorney Annette L. Hayes. MICHAEL D. WELCHES, 63, pleaded guilty in October 2017 to depredation of government property for the timber theft that occurred in November 2013. At the sentencing hearing U.S. District Judge Robert J. Bryan said “These are very valuable trees and provide a great temptation. . . . People give into that temptation, but it's not appropriate. . . . It's just simple theft.”
“The natural resources in our federally protected lands belong to all of us, and to future generations not to thieves making a quick buck,” said U.S. Attorney Hayes. “But for an alert neighbor notifying a park ranger, this defendant would literally have gotten away like ‘a thief in the night.’”
According to records filed in the case, on November 11, 2013, a neighbor residing near the Elwha restoration project lands notified the Park Service that he had heard chainsaws in the middle of the night. The neighbor said he saw people in the woods wearing headlamps. The neighbor reported similar activity a few nights later. The ranger investigated in daylight and found a felled big leaf maple. He asked the neighbor to call him directly if he heard or saw additional activity. The next night, at 1:00 AM the neighbor alerted the ranger. Law enforcement responded and arrested WELCHES and two codefendants as they were cutting and loading the felled maple. A receipt indicated the men had sold the wood to a Quilcene, Washington music wood supplier. Wood retrieved from that supplier matched the wood from the felled maple.
The value of the timber as music wood is estimated to be $8,766. The tree as a living part of the Elwha ecosystem is irreplaceable.
In asking that WELCHES serve prison time, prosecutors noted that in 2004 he was convicted of illegally cutting trees on state timber trust land.
A second defendant, Matthew Hutto has pleaded guilty and is scheduled for sentencing next month. Defendant Richard Welches is being sought by law enforcement.
The case was investigated by the National Park Service Investigative Services Branch. The case is being prosecuted by Assistant United States Attorney Andre Penalver.
Man Sentenced for Sex with Minor and Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Culpeper man was sentenced to more than 15 years in prison today for sex with a minor and production of child pornography.
According to court documents, Fielding Smith Daniel, 53, met a young girl on a sugar daddy website in August 2016. Such websites are set up to facilitate interactions between wealthy older men and younger women who provide companionship in exchange for financial support. Daniel arranged to meet the girl for sex for money. The girl, who was 14 years-old, was staying with her grandmother in Stafford. Shortly after midnight on Aug. 11, 2016, Daniel picked her up from her grandmother’s house and brought her to a motel and had sex with her. Although they had negotiated a rate of $200, Daniel provided the girl with $100 after she wanted to leave early. A few weeks later, on Aug. 23, 2016, Daniel again arranged to have sex with the girl for money. On this occasion, the girl was with her 14-year-old friend. Daniel attempted to persuade the girl to have her friend watch them have sex, offering to pay her $300 if the friend watched. Daniel picked up the girl and her friend and brought them to a local hotel. The friend declined multiple offers to watch but the girl again had sex with Daniel for $140, while the friend stayed in the car. Afterwards Daniel dropped both girls off at a local Wal-Mart.
In early September 2016, the Stafford County Sheriff’s Office conducted a search of Daniel’s residence in Culpeper and found hundreds of online sexually explicit communications with women. Amongst those chats were two 2016 conversations involving girls who indicated to Daniel that they were minors and in high school. One of the minor girls produced pictures and videos of child pornography at Daniel’s request.
Daniel was sentenced to 182 months in prison, ordered to pay a $25,000 fine, a $10,200 special assessment, and will serve seven years of supervised release. Daniel also agreed to forfeit the 2016 BMW used in some of the crimes, as well as numerous electronic devices.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
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 sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Jay V. Prabhu and Whitney Russell prosecuted the case.
Significant support for the investigation was received from the Stafford County Commonwealth Attorney’s Office, the Stafford County Sheriff’s Office, and the U.S. Attorney’s Offices for the Western District of Virginia, the Eastern District of New York, and the Eastern District of Pennsylvania.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-110 and 1:17-mj-145.
Lockheed Martin Agrees to Pay $4.4 Million to Resolve Claims It Provided Faulty Equipment to the Coast GuardRead the Press Release
SAN FRANCISCO - Defense contractor Lockheed Martin Corporation has agreed to a settlement valued at $4.4 million to resolve allegations that it violated the civil False Claims Act by providing defective communications systems for the United States Coast Guard’s National Security Cutters, announced Acting United States Attorney Alex G. Tse and Department of Homeland Security Office of the Inspector General Special Agent in Charge of the San Diego Field Office Amanda Thandi.
Lockheed, headquartered in Maryland, provided communications systems for the Coast Guard’s National Security Cutters. The United States alleges that the Radio Frequency Distribution System (RFDS) Lockheed provided fails to meet the requirement of transmitting and receiving several different radio signals at the same time without undue interference (known as simultaneous operations). The Coast Guard has taken delivery of the first six Cutters and three additional Cutters are under construction. All nine Cutters have versions of the same RFDS. To settle the allegations, Lockheed has agreed to pay $2.2 million, and to provide the Coast Guard with repairs to the RFDS on the nine Cutters at no charge. The repairs are valued at $2.2 million.
“This office remains committed to fighting fraud and false claims against the federal government,” said Acting U.S. Attorney Tse. “It is essential that the communications systems on the Coast Guard’s National Security Cutters work properly. I am pleased that Lockheed has agreed to repair the systems so that they fully function to support the Coast Guard’s important mission.”
The settlement, unsealed today, resolves a whistleblower lawsuit filed in the United States District Court for the Northern District of California. An engineer who formerly worked for Lockheed filed the case pursuant to the qui tam provisions of the False Claims Act. Under those provisions, private citizens, known as “relators,” may file lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment. In this case, the relator will receive $990,000 as his share of the government’s recovery from Lockheed.
Assistant U.S. Attorney Sara Winslow is handling the case with the assistance of Kathy Terry. The settlement is the result of an investigation by the Department of Homeland Security Office of Inspector General and the U.S. Coast Guard Investigative Service. Technical aspects of the settlement were made possible by the verification and coordination of United States Navy engineers, led by the Principal Engineer from the Coast Guard.
Leader of New Haven Heroin Trafficking Ring Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANTONIO GONZALEZ, also known as “Bienve,” 47, of New Haven, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to possess with intent to distribute, and distribution of, one kilogram or more of heroin.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by GONZALEZ and his brother, Bienvenido Gonzalez. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that the Gonzalez brothers regularly purchased bulk quantities of heroin from suppliers located in the Bronx, New York, and sold the heroin through a network of redistributors in New Haven and elsewhere.
The investigation resulted in federal charges against 24 individuals.
ANTONIO GONZALEZ has been detained since his arrest on March 16, 2017. Judge Meyer scheduled sentencing for April 12, 2018, at which time GONZALEZ faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Bienvenido Gonzalez pleaded guilty to the same charge on November 30, 2017. As part of his plea, he agreed to forfeit $10,000 in cash that was seized from a stash house he operated in East Haven, his interest in a New Haven barbershop located on Farren Street in New Haven, a Dodge Ram truck, and two race cars. He awaits sentencing.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
Leader of Las Vegas to Columbus Marijuana Ring SentencedRead the Press Release
COLUMBUS, Ohio – Adrian A. Douglas, 48, of Columbus, was sentenced in U.S. District Court to 144 months in prison for conspiracy to distribute more than 1,000 kilograms of marijuana and conspiracy to commit money laundering. Douglas led a Central Ohio marijuana trafficking ring that involved receiving UPS shipments of the drug from Las Vegas and mailing cash back to the supplier. He pleaded guilty to the two charges in June 2017.
Douglas’s son, Justin A. Douglas, 28, as well as Joshua N. Barron, 28, previously pleaded guilty to the same two charges. Justin Douglas was sentenced to 48 months in prison and Barron is scheduled for sentencing on January 30.
Raymond Tillman, 42, previously pleaded guilty to conspiracy to distribute more than 1,000 kilograms of marijuana and was sentenced to 60 months in prison. All three men are also Columbus residents.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Columbus Police Chief Kim Jacobs and other members of the Ohio Organized Crime Commission’s Central Ohio Drug Enforcement task force announced the sentence imposed today by U.S. District Judge Michael H Watson.
The Statement of Facts in this case details that between November 2015 and December 2016, investigators documented 264 packages sent via UPS from Las Vegas to Columbus. Those packages contained a total of more than 3,000 kilograms of marijuana.
Once co-conspirators distributed the marijuana in Central Ohio, they mailed cash back to the source of supply in Las Vegas. Investigators documented 41 packages shipped from Columbus to Las Vegas during the same timeframe.
For example, on December 7, 2016, an 18-pound package was shipped via UPS from Columbus to Las Vegas but was interdicted in Kentucky by law enforcement. The package contained more than $199,000 in cash.
On December 21, 2016, a series of search warrants were conducted at locations associated with the drug ring and turned up more than $331,000 in cash at Justin Douglas’s residence on Scioto Chase Blvd. An Additional $27,000 in cash was found at the residence of Adrian Douglas and more than $58,000 was seized from Raymond Tillman during a traffic stop.
All four defendants were indicted in February.
As part of the federal sentencing guidelines, which are advisory and not binding on the court, both the offense level and the criminal history of the defendant were taken into account. There are six criminal history categories, with category six including the most significant past criminal conduct. Douglas’s criminal history was classified as a category five.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, DEA and Columbus Police, as well as Assistant United States Attorney Kevin W. Kelley, who is representing the United States in this case.
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Las Vegas Man Convicted of Receipt, Possession and Advertising of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was found guilty by a jury today of three counts relating to child pornography possession, receipt, and advertising, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Following a four-day trial, James Scott Alva, 45, was found guilty of one count of receipt of child pornography, one count of possession of child pornography, and one count of advertising of child pornography. United States District Judge Robert C. Jones presided over the trial and scheduled sentencing for April 9, 2018. Alva faces the statutory maximum penalty of 30 years in prison and a $250,000 fine.
According to the indictment, Alva possessed and received images of child pornography. Furthermore, he made and published an advertisement offering to exchange, display, and distribute child pornography.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Christopher Burton and Elham Roohani prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Lake County Man Sentenced to 40 Years for Production and Transportation of Child PornographyRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces that U.S. District Judge James D. Whittemore yesterday sentenced Thomas Edward Abney, Jr. (38, Leesburg) to 40 years in federal prison for production of child pornography and aiding and abetting the transportation of child pornography. The Court also ordered him to forfeit a cellular telephone used in the commission of the crimes.
Abney pleaded guilty to the charges on September 28, 2017.
According to court documents, in June 2017, Abney, a registered sex offender, contacted an undercover federal agent in an online chatroom frequented by individuals who have a sexual interest in children and incest. Abney sought images of child pornography from the agent and bragged that he recently had traded sexually explicit images of a toddler in his care to another person. Abney also claimed to have committed sex acts with this child and eventually sent the agent a photograph and an electronic link to an 11-minute movie file, all of which contained child pornography.
On June 29, 2017, the FBI executed a federal search warrant at Abney’s Leesburg residence and seized his smartphone. A forensic analysis of the phone showed that it contained sexually explicit images of the toddler that had been in Abney’s care. Abney admitted that he had used the smartphone to produce, distribute, receive, and possess child pornography, including the link to the eleven-minute movie file. He also confirmed that he recently had created and sent sexually explicit images of the toddler to another person over the Internet.
Abney is a registered sex offender in Florida due to multiple prior state convictions involving the use of a child in a sexual performance and the transmission of child pornography.
“The heinous acts committed by this defendant intensify to the FBI’s commitment to identify, investigate, and bring child predators to justice,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “The FBI Jacksonville Division is making every effort to protect our communities from those who target our innocent children."
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Lackawanna Man Pleads Guilty to Attempting to Provide Support to ISISRead 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 Arafat M. Nagi, 47, of Lackawanna, NY, pleaded guilty, before U.S. District Judge Richard J. Arcara, to attempting to provide material support and resources to a designated foreign terrorist organization. Specifically, Nagi admitted, in his plea, that the attempted to provide material support to a terrorist organization by personally traveling to Turkey in an effort to enter Syria and fight on behalf of ISIS. The charge carries a maximum penalty of 15 years in prison and a $250,000 fine.Assistant U.S. Attorneys Timothy C. Lynch and Joel L. Violanti, who are handling the case, stated that on August 28, 2014, a community member advised the Federal Bureau of Investigation that the defendant spoke about violent jihad to various people in the Lackawanna community and it was common for Nagi to get into verbal complaints over his jihadi beliefs.
Further investigation determined that the defendant pledged allegiance to ISIS and the leader of the terrorist group, Abu Bakr al Bagdadi. Investigators learned that the defendant traveled to Turkey on two occasions, in October 2012 and July 2014, with the intention of meeting with members of ISIS. Prior to traveling to Turkey, the defendant purchased a large number of military combat items, including a tactical vest, army combat shirt, body armor, Shahada Flag, combat boots, backpack, burn kit, a hunting knife, machete and night vision goggles. Once in Turkey, Nagi purchased a SIM card and activated a Turkish cell phone number. Facebook messages showed that the defendant contacted other individuals, who were prepared to help the defendant enter Syria to join ISIS, and exchanged Turkish cell phone numbers. In addition, evidence seized from the defendant’s electronic devices showed that the defendant, while in Turkey, was researching how to travel from Istanbul to cities close to the Syrian border.
During follow up interviews in December, 2014 and March 2015, the community member who alerted the FBI regarding Nagi’s actions stated that the defendant still possessed radical political and religious views. According to the individual, Nagi was angry about the killing of rebels in Yemen which he blamed on the United States; pledged an oath to ISIS leaders; expressed agreement with ISIS tactics, including the killing of innocent men, women, and children. The individual further reported that defendant planned to travel to Yemen and Turkey again soon.
“Arafat Nagi’s plea should serve as a sobering reminder that terrorism’s reach is not confined to obscure individuals operating in far-away lands,” noted U.S. Attorney Kennedy. “Nagi is not the first individual in our community who has sought to provide support to and fight on behalf of ISIS or some other terrorist organization. Likewise, he is not the first terrorist recruit to be turned over to law enforcement by others in the community. Today’s plea illustrates just how critical it is for all of us as members of this community to remain vigilant in our duty both to protect the lives of Americans at home and abroad and to preserve those values—such as liberty, tolerance, and justice—which define us as Americans around the world.”
“As important as catching those who would commit violence against our country, it is vital to cut off the money and counter their recruiting efforts which is the lifeblood of these organizations,” said Federal Bureau of Investigation Assistant Special Agent-in-Charge Philip E. Frigm, Jr.
The plea is the culmination of an investigation by the Federal Bureau of Investigation Joint Terrorism Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen. Assistance in the matter was also provided by the New York State Attorney General’s Office, under the direction of Eric Schneiderman.Sentencing is scheduled for May 7, 2018 at 12:30 p.m. before Judge Arcara.