Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
28 February 2018
United States Border Patrol Agent Sentenced to Prison for Theft of Firearm Parts and Unlawful Possession of MachinegunRead the Press Release
TUCSON, Ariz. – Yesterday, Jesus Manuel Franco, a former United States Border Patrol Agent, 39, of Vail, Ariz., was sentenced by U.S. District Judge Cindy K. Jorgenson, to 18 months’ imprisonment for theft of firearm parts and equipment valued at approximately $100,000 and for the unlawful possession and transfer of two machinegun conversion devices. Franco had been previously found guilty of these offenses after a jury trial.
The evidence at trial demonstrated that in 2014, Franco accepted a temporary assignment to the Customs and Border Protection (CBP) Armory in Harper’s Ferry, W. Va. During a two-month period, Franco unlawfully transferred 47 boxes of firearm parts and equipment from the Armory to the Wilcox, Ariz. CBP Station without authorization and for personal use. One of the boxes transferred by Franco contained two machine gun conversion devices that qualified under federal law as machineguns. Franco also charged the government for shipping costs.
The investigation in this case was conducted by the Department of Homeland Security, Office of Inspector General. The prosecution was handled by Jane L. Westby and Sarah B. Houston, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-16-00268-TUC-CKJ
RELEASE NUMBER: 2018-19_Franco
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
U.S./Israeli Man Indicted for Hate Crime and Threats to Jewish Community Centers, Israeli Embassy, Anti-Defamation League, Conveying False Information, and CyberstalkingRead the Press Release
The Department of Justice today announced the indictment of Michael Ron David Kadar, 19, who holds dual United States and Israeli citizenship, in three jurisdictions for hate crimes and other offenses.
The indictment from Florida charges Kadar with hate crimes as a result of threatening calls he made to Jewish Community Centers in the state. In addition, the indictment from the District of Columbia charges Kadar with threatening the Israeli Embassy and the Anti-Defamation League in Washington, D.C. The third indictment charges Kadar with cyberstalking and conveying false information to police dispatch regarding harm to private residents in Georgia.
An investigation into numerous threats made to individuals and organizations throughout the United States in 2016 and early 2017 led to Kadar being charged initially in criminal complaints on April 21, 2017 in Florida and Georgia following his arrest in Israel. Kadar remains in custody in Israel where he also faces charges.
The indictment from the Middle District of Florida charges that beginning on or about Jan. 4, 2017, and continuing until Feb. 27, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Additionally, the indictment charges Kadar with attempting to obstruct the free exercise of religion at the Jewish Community Centers when he made the bomb threats and active shooter threats. Finally, the indictment charges that Kadar made bomb threats to the Orlando International Airport and a middle school in the Middle District of Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond to and clear the area.
The indictment from the District of Columbia charges that on or about March 7, 2017, Kadar made a threatening call to the Anti-Defamation League involving a bomb threat. Additionally, the indictment alleges that on or about March 9, 2017, Kadar sent a threatening email to the Israeli Embassy involving a bomb threat.
The indictment from the Middle District of Georgia charges that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged hostage situation in progress at a private residence in Athens, Georgia, which included a threat to kill responding police officers. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
The hate crime charges each carry a maximum penalty of 20 years imprisonment, the bomb threats charges each carry a maximum penalty of 10 years imprisonment, and the interstate threats charge, the hoax charge, and the cyberstalking charge each carry a maximum penalty of five years imprisonment. If convicted, Kadar could also be subject to court ordered restitution.
“When individuals target victims of their crimes based on who they are, what they believe, or how they worship, they target the bedrock principles on which our nation was founded,” said Attorney General Jeff Sessions. “These alleged threats of violence instilled fear in the Jewish community and other communities across the country, and it is the Justice Department’s duty to make sure all Americans can live their lives without this type of fear.”
“These alleged threats were very real for those individuals who were evacuated, for the first responders who quickly mobilized to get people out of harm’s way, and for those in Jewish communities across the United States who felt targeted and unsafe,” said FBI Director Christopher Wray. “This indictment demonstrates the FBI’s commitment to working together with our partners to protect the safety and civil rights of all Americans, and shows that we will not stand by as someone threatens our communities based on their religion or their beliefs.”
“Threats, intimidation, or violence perpetrated against anyone because of their beliefs, their faith, or how they choose to worship is intolerable,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “Individuals should be free to exercise these rights without fear. We will continue to use our resources to enforce these precious rights for all individuals.”
“The indictment returned today in the District of Columbia is part of a broader nationwide fight against hate, terror, and threats in all of their forms,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “The charges also reflect the tireless dedication of the DOJ, the FBI, and our local and international partners to rooting out and prosecuting those who would terrorize our communities.”
“Hiding behind anonymous phone calls to threaten innocent citizens is cowardly and dangerous,” said U.S. Attorney Charles E. Peeler for the Middle District of Georgia. “The calls that this defendant allegedly made harassed innocent victims, endangered first responders and the victims themselves, and needlessly consumed law enforcement resources vital to protecting our communities.”
This case was investigated by the FBI Tampa Division, FBI Washington Field Office, and FBI Atlanta Division; the U.S. Attorney’s Office for the Middle District of Florida; the U.S. Attorney’s Office for the District of Columbia; U.S. Attorney’s Office for the Middle District of Georgia; the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division; and the Criminal Section of the Justice Department’s Civil Rights Division. The Criminal Division’s Office of International Affairs provided significant assistance in this case. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
U.S./Israeli Man Indicted for Hate Crime and Threats to Jewish Community Centers, Israeli Embassy, Anti-Defamation League, Conveying False Information and CyberstalkingRead the Press Release
WASHINGTON – The Department of Justice today announced the indictment of Michael Ron David Kadar, 19, who holds dual United States and Israeli citizenship, in three jurisdictions for hate crimes and other offenses.
The indictment from Florida charges Kadar with hate crimes as a result of threatening calls he made to Jewish Community Centers in the state. In addition, the indictment from the District of Columbia charges Kadar with threatening the Israeli Embassy and the Anti-Defamation League in Washington, D.C. The third indictment charges Kadar with cyberstalking and conveying false information to police dispatch regarding harm to private residents in Georgia.
An investigation into numerous threats made to individuals and organizations throughout the United States in 2016 and early 2017 led to Kadar being charged initially in criminal complaints on April 21, 2017 in Florida and Georgia following his arrest in Israel. Kadar remains in custody in Israel where he also faces charges.
The indictment from the Middle District of Florida charges that beginning on or about Jan. 4, 2017, and continuing until Feb. 27, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Additionally, the indictment charges Kadar with attempting to obstruct the free exercise of religion at the Jewish Community Centers when he made the bomb threats and active shooter threats. Finally, the indictment charges that Kadar made bomb threats to the Orlando International Airport and a middle school in the Middle District of Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond to and clear the area.
The indictment from the District of Columbia charges that on or about March 7, 2017, Kadar made a threatening call to the Anti-Defamation League involving a bomb threat. Additionally, the indictment alleges that on or about March 9, 2017, Kadar sent a threatening email to the Israeli Embassy involving a bomb threat.
The indictment from the Middle District of Georgia charges that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged hostage situation in progress at a private residence in Athens, Georgia, which included a threat to kill responding police officers. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
The hate crime charges each carry a maximum penalty of 20 years imprisonment, the bomb threats charges each carry a maximum penalty of 10 years imprisonment, and the interstate threats charge, the hoax charge, and the cyberstalking charge each carry a maximum penalty of five years imprisonment. If convicted, Kadar could also be subject to court ordered restitution.
“When individuals target victims of their crimes based on who they are, what they believe, or how they worship, they target the bedrock principles on which our nation was founded,” said Attorney General Jeff Sessions. “These alleged threats of violence instilled fear in the Jewish community and other communities across the country, and it is the Justice Department’s duty to make sure all Americans can live their lives without this type of fear.”
“These alleged threats were very real for those individuals who were evacuated, for the first responders who quickly mobilized to get people out of harm’s way, and for those in Jewish communities across the United States who felt targeted and unsafe,” said FBI Director Christopher Wray. “This indictment demonstrates the FBI’s commitment to working together with our partners to protect the safety and civil rights of all Americans, and shows that we will not stand by as someone threatens our communities based on their religion or their beliefs.”
“Threats, intimidation, or violence perpetrated against anyone because of their beliefs, their faith, or how they choose to worship is intolerable,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “Individuals should be free to exercise these rights without fear. We will continue to use our resources to enforce these precious rights for all individuals.”
“The indictment returned today in the District of Columbia is part of a broader nationwide fight against hate, terror, and threats in all of their forms,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “The charges also reflect the tireless dedication of the DOJ, the FBI, and our local and international partners to rooting out and prosecuting those who would terrorize our communities.”
“Hiding behind anonymous phone calls to threaten innocent citizens is cowardly and dangerous,” said U.S. Attorney Charles E. Peeler for the Middle District of Georgia. “The calls that this defendant allegedly made harassed innocent victims, endangered first responders and the victims themselves, and needlessly consumed law enforcement resources vital to protecting our communities.”
This case was investigated by the FBI Tampa Division, FBI Washington Field Office, and FBI Atlanta Division; the U.S. Attorney’s Office for the Middle District of Florida; the U.S. Attorney’s Office for the District of Columbia; U.S. Attorney’s Office for the Middle District of Georgia; the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division; and the Criminal Section of the Justice Department’s Civil Rights Division. The Criminal Division’s Office of International Affairs provided significant assistance in this case. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
U.S./Israeli Man Indicted for Hate Crime and Threats to Jewish Community Centers, Israeli Embassy, Anti-Defamation League, Conveying False Information, and CyberstalkingRead the Press Release
WASHINGTON – The Department of Justice today announced the indictment of Michael Ron David Kadar, 19, who holds dual United States and Israeli citizenship, in three jurisdictions for hate crimes and other offenses.
The indictment from Florida charges Kadar with hate crimes as a result of threatening calls he made to Jewish Community Centers in the state. In addition, the indictment from the District of Columbia charges Kadar with threatening the Israeli Embassy and the Anti-Defamation League in Washington, D.C. The third indictment charges Kadar with cyberstalking and conveying false information to police dispatch regarding harm to private residents in Georgia.
An investigation into numerous threats made to individuals and organizations throughout the United States in 2016 and early 2017 led to Kadar being charged initially in criminal complaints on April 21, 2017 in Florida and Georgia following his arrest in Israel. Kadar remains in custody in Israel where he also faces charges.
The indictment from the Middle District of Florida charges that beginning on or about Jan. 4, 2017, and continuing until Feb. 27, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Additionally, the indictment charges Kadar with attempting to obstruct the free exercise of religion at the Jewish Community Centers when he made the bomb threats and active shooter threats. Finally, the indictment charges that Kadar made bomb threats to the Orlando International Airport and a middle school in the Middle District of Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond to and clear the area.
The indictment from the District of Columbia charges that on or about March 7, 2017, Kadar made a threatening call to the Anti-Defamation League involving a bomb threat. Additionally, the indictment alleges that on or about March 9, 2017, Kadar sent a threatening email to the Israeli Embassy involving a bomb threat.
The indictment from the Middle District of Georgia charges that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged hostage situation in progress at a private residence in Athens, Georgia, which included a threat to kill responding police officers. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
The hate crime charges each carry a maximum penalty of 20 years imprisonment, the bomb threats charges each carry a maximum penalty of 10 years imprisonment, and the interstate threats charge, the hoax charge, and the cyberstalking charge each carry a maximum penalty of five years imprisonment. If convicted, Kadar could also be subject to court ordered restitution.
“When individuals target victims of their crimes based on who they are, what they believe, or how they worship, they target the bedrock principles on which our nation was founded,” said Attorney General Jeff Sessions. “These alleged threats of violence instilled fear in the Jewish community and other communities across the country, and it is the Justice Department’s duty to make sure all Americans can live their lives without this type of fear.”
“These alleged threats were very real for those individuals who were evacuated, for the first responders who quickly mobilized to get people out of harm’s way, and for those in Jewish communities across the United States who felt targeted and unsafe,” said FBI Director Christopher Wray. “This indictment demonstrates the FBI’s commitment to working together with our partners to protect the safety and civil rights of all Americans, and shows that we will not stand by as someone threatens our communities based on their religion or their beliefs.”
“Threats, intimidation, or violence perpetrated against anyone because of their beliefs, their faith, or how they choose to worship is intolerable,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “Individuals should be free to exercise these rights without fear. We will continue to use our resources to enforce these precious rights for all individuals.”
“The indictment returned today in the District of Columbia is part of a broader nationwide fight against hate, terror, and threats in all of their forms,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “The charges also reflect the tireless dedication of the DOJ, the FBI, and our local and international partners to rooting out and prosecuting those who would terrorize our communities.”
“Hiding behind anonymous phone calls to threaten innocent citizens is cowardly and dangerous,” said U.S. Attorney Charles E. Peeler for the Middle District of Georgia. “The calls that this defendant allegedly made harassed innocent victims, endangered first responders and the victims themselves, and needlessly consumed law enforcement resources vital to protecting our communities.”
This case was investigated by the FBI Tampa Division, FBI Washington Field Office, and FBI Atlanta Division; the U.S. Attorney’s Office for the Middle District of Florida; the U.S. Attorney’s Office for the District of Columbia; U.S. Attorney’s Office for the Middle District of Georgia; the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division; and the Criminal Section of the Justice Department’s Civil Rights Division. The Criminal Division’s Office of International Affairs provided significant assistance in this case. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
U.S./Israeli Man Indicted for Hate Crime and Threats to Jewish Community Centers, Israeli Embassy, Anti-Defamation League, Conveying False Information, and CyberstalkingRead the Press Release
NOTE: The indictments can be found here: Florida Indictment, D.C. Indictment, Georgia Indictment.
WASHINGTON – The Department of Justice today announced the indictment of Michael Ron David Kadar, 19, who holds dual United States and Israeli citizenship, in three jurisdictions for hate crimes and other offenses.
The indictment from Florida charges Kadar with hate crimes as a result of threatening calls he made to Jewish Community Centers in the state. In addition, the indictment from the District of Columbia charges Kadar with threatening the Israeli Embassy and the Anti-Defamation League in Washington, D.C. The third indictment charges Kadar with cyberstalking and conveying false information to police dispatch regarding harm to private residents in Georgia.
An investigation into numerous threats made to individuals and organizations throughout the United States in 2016 and early 2017 led to Kadar being charged initially in criminal complaints on April 21, 2017 in Florida and Georgia following his arrest in Israel. Kadar remains in custody in Israel where he also faces charges.
The indictment from the Middle District of Florida charges that beginning on or about Jan. 4, 2017, and continuing until Feb. 27, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Additionally, the indictment charges Kadar with attempting to obstruct the free exercise of religion at the Jewish Community Centers when he made the bomb threats and active shooter threats. Finally, the indictment charges that Kadar made bomb threats to the Orlando International Airport and a middle school in the Middle District of Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond to and clear the area.
The indictment from the District of Columbia charges that on or about March 7, 2017, Kadar made a threatening call to the Anti-Defamation League involving a bomb threat. Additionally, the indictment alleges that on or about March 9, 2017, Kadar sent a threatening email to the Israeli Embassy involving a bomb threat.
The indictment from the Middle District of Georgia charges that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged hostage situation in progress at a private residence in Athens, Georgia, which included a threat to kill responding police officers. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
The hate crime charges each carry a maximum penalty of 20 years imprisonment, the bomb threats charges each carry a maximum penalty of 10 years imprisonment, and the interstate threats charge, the hoax charge, and the cyberstalking charge each carry a maximum penalty of five years imprisonment. If convicted, Kadar could also be subject to court ordered restitution.
“When individuals target victims of their crimes based on who they are, what they believe, or how they worship, they target the bedrock principles on which our nation was founded,” said Attorney General Jeff Sessions. “These alleged threats of violence instilled fear in the Jewish community and other communities across the country, and it is the Justice Department’s duty to make sure all Americans can live their lives without this type of fear.”
“These alleged threats were very real for those individuals who were evacuated, for the first responders who quickly mobilized to get people out of harm’s way, and for those in Jewish communities across the United States who felt targeted and unsafe,” said FBI Director Christopher Wray. “This indictment demonstrates the FBI’s commitment to working together with our partners to protect the safety and civil rights of all Americans, and shows that we will not stand by as someone threatens our communities based on their religion or their beliefs.”
“Threats, intimidation, or violence perpetrated against anyone because of their beliefs, their faith, or how they choose to worship is intolerable,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “Individuals should be free to exercise these rights without fear. We will continue to use our resources to enforce these precious rights for all individuals.”
“The indictment returned today in the District of Columbia is part of a broader nationwide fight against hate, terror, and threats in all of their forms,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “The charges also reflect the tireless dedication of the DOJ, the FBI, and our local and international partners to rooting out and prosecuting those who would terrorize our communities.”
“Hiding behind anonymous phone calls to threaten innocent citizens is cowardly and dangerous,” said U.S. Attorney Charles E. Peeler for the Middle District of Georgia. “The calls that this defendant allegedly made harassed innocent victims, endangered first responders and the victims themselves, and needlessly consumed law enforcement resources vital to protecting our communities.”
This case was investigated by the FBI Tampa Division, FBI Washington Field Office, and FBI Atlanta Division; the U.S. Attorney’s Office for the Middle District of Florida; the U.S. Attorney’s Office for the District of Columbia; U.S. Attorney’s Office for the Middle District of Georgia; the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division; and the Criminal Section of the Justice Department’s Civil Rights Division. The Criminal Division’s Office of International Affairs provided significant assistance in this case. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Bill Powell applauds the creation of a Prescription Interdiction and Litigation Task ForceRead the Press Release
WHEELING, WV – The U.S. Attorney’s office in the Northern District of West Virginia is applauding Attorney General Jeff Sessions and the Department of Justice’s newest tool to fight the opioid epidemic.
Attorney General Jeff Sessions today announced the creation of a new effort, the Department of Justice Prescription Interdiction & Litigation (PIL) Task Force, to fight the prescription opioid crisis.
“West Virginia, with the highest number of overdose deaths per capita in the country, is ground zero of the epidemic. Our office has seen successful prosecution of distributors and physicians who are irresponsible with prescription opioids, and we aren’t stopping. If you are a physician, pharmacy or distributor who is playing roulette with prescription opioids, know that you will be prosecuted to the fullest extent of the law,” said U.S. Attorney Bill Powell.
The PIL Task Force will aggressively deploy and coordinate all available criminal and civil law enforcement tools to reverse the tide of opioid overdoses in the United States, with a particular focus on opioid manufacturers and distributors.
“Over the past year, the Department has vigorously fought the prescription opioid crisis, and we are determined to continue making progress. Today, we are opening a new front in the war on the opioid crisis by bringing all of our anti-opioid efforts under one banner,” said Attorney General Sessions. “We have no time to waste. Every day, 180 Americans die from drug overdoses. This epidemic actually lowered American life expectancy in 2015 and 2016 for the first time in decades, with drug overdose now the leading cause of death for Americans under age 50. These are not acceptable trends and this new task force will make us more effective in reversing them and saving Americans from the scourge of opioid addiction.”
The PIL Task Force will include senior officials from the offices of the Attorney General, the Deputy Attorney General, and the Associate Attorney General, as well as senior officials from the Executive Office for U.S. Attorneys, the Civil Division, the Criminal Division, and the Drug Enforcement Administration. The Task Force will coordinate the Department’s many efforts and tools to combat the opioid epidemic.
The PIL Task Force will combat the opioid crisis at every level of the distribution system. At the manufacturer level, the PIL Task Force will use all available criminal and civil remedies available under federal law to hold opioid manufacturers accountable for unlawful practices. The PIL Task Force will build on and strengthen existing Department of Justice initiatives to ensure that opioid manufacturers are marketing their products truthfully and in accordance with Food and Drug Administration rules.
The Attorney General has also directed the PIL Task Force to examine existing state and local government lawsuits against opioid manufacturers to determine what assistance, if any, federal law can provide in those lawsuits. The federal government has borne substantial costs from the opioid crisis, and it must be compensated by any party whose illegal activity contributed to those costs.
The Department will also use all criminal and civil tools at its disposal to hold distributors such as pharmacies, pain management clinics, drug testing facilities, and individual physicians accountable for unlawful actions.
The PIL Task Force will use criminal and civil actions to ensure that distributors and pharmacies are obeying Drug Enforcement Administration rules designed to prevent diversion and improper prescribing. It will use the False Claims Act and other tools to crack down on pain-management clinics, drug testing facilities, and physicians that make opioid prescriptions.
The PIL Task Force will use the criminal and civil tools available under the Controlled Substances Act against doctors, pharmacies, and others that break the law. The PIL Task Force will build upon and expand the efforts of the existing Opioid Fraud and Abuse Detection Unit. Created in August 2017, the Unit uses sophisticated data analysis to identify and prosecute individuals who are contributing to the opioid epidemic, including pill-mill schemes and pharmacies that unlawfully divert or dispense prescription opioids for illegitimate purposes.
The PIL Task Force will also work closely with the Department of Health and Human Services to investigate and hold accountable any parties who engage in illegal activity surrounding prescription opioids. The Attorney General has directed the PIL Task Force to establish immediately a working group to: (1) improve coordination and data sharing across the federal government to better identify violations of law and patterns of fraud related to the opioid epidemic; (2) evaluate possible changes to the regulatory regime governing opioid distribution; and (3) recommend changes in laws.
This new Task Force will build on a number of new initiatives begun by Attorney General Sessions over the past year that will help us end the drug crisis, including the following:
• In July, the Attorney General announced charges against more than 120 defendants, including doctors, for crimes related to prescribing or distributing opioids and other dangerous narcotics.
• One week later, the Attorney General announced the seizure of AlphaBay, the largest criminal marketplace on the Internet. This site hosted some 220,000 drug listings – including more than 100 vendors advertising fentanyl – and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13-year old in Utah.
• In August, the Attorney General created the Opioid Fraud and Abuse Detection Unit, a new data analytics program to help find evidence of overprescribing and opioid-related health care fraud.
• The Attorney General then assigned 12 experienced Assistant United States Attorneys to opioid “hot-spots” to focus solely on investigating and prosecuting opioid-related health care fraud. By November they had begun issuing indictments.
• In October, the Department announced the first-ever indictments of Chinese nationals and their North American-based traffickers and distributers for separate conspiracies to distribute fentanyl and other opioids in the United States.
• Also in October, the DEA announced the establishment of six new enforcement teams focused on combatting the flow of heroin and illicit fentanyl into the U.S. These enforcement teams are based in communities facing some of the most significant challenges with heroin and fentanyl.
• In 2017, the DEA held two of its National Prescription Drug Takeback Days, when people can dispose of unnecessary and potentially dangerous drugs with no questions asked. In total, DEA took a record 956 tons of drugs out of American communities.
• In January 2018, the Department announced a new resource to target traffickers who sell drugs online called J-CODE: Joint Criminal Opioid Darknet Enforcement team. The J-CODE team will coordinate efforts across the FBI’s offices all around the world – bringing together DEA, our Safe Streets Task Forces, drug trafficking task forces, Health Care Fraud Special Agents, and other assets – effectively doubling the FBI’s investment into fighting against online drug trafficking.
• Also in January 2018, the DEA announced a 45-day surge of Special Agents, Diversion Investigators, and Intelligence Research Specialists to focus on pharmacies and prescribers who are dispensing unusual or disproportionate amounts of drugs.
• On February 7, 2018, the DEA placed all fentanyl analogues not already regulated by the Controlled Substances Act into Schedule I – the category for substances with no currently accepted medical use – for at least two years. This makes it harder for people to acquire illicit fentanyl and easier for law enforcement to investigate and prosecute drug traffickers.
• The Department anticipates filing a statement of interest in the coming days in a multi-district action regarding hundreds of lawsuits against opioid manufacturers and distributors.
Two Mexican Nationals Sentenced for Growing Marijuana on National Forest LandRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced sentences in two unrelated cases involving growing marijuana in national forests. In addition to the marijuana charges, both defendants were sentenced for depredation of federal property. Not only are the marijuana grow sites an illegal trespass, they cause significant environmental damage, through the use of harmful – and often banned – pesticides, as well as harm to natural rivers and streams, which the site’s operators divert to irrigate the marijuana crops.
In the first case, U.S. District Judge Kimberly J. Mueller sentenced Sebastian Martinez Arreola, 20, of Michoacán, Mexico, to 20 months in prison for manufacturing marijuana, conspiring to do the same, and depredation of federal property. According to court documents, Martinez Arreola and others were arrested by law enforcement on August 7, 2017, following a search of a marijuana-cultivation site in the Limedyke Mountain area of the Shasta-Trinity National Forest in Trinity County. At the site, they found approximately 2,500 marijuana plants and a .45‑caliber Ruger handgun.
This case was the product of an investigation by the United States Forest Service, Bureau of Land Management, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, and the North State Marijuana Investigation Team. Assistant U.S. Attorney Richard Bender is prosecuting the case.
In the second case, Judge Mueller sentenced Pedro Sanchez Muniz, 39, native of Mexico, to two years in prison for conspiracy to manufacture at least 1,000 marijuana plants, as well as depredation of federal property. According to court documents, Sanchez Muniz was arrested by law enforcement officers at a marijuana cultivation site growing approximately 1,500 plants on the Mendocino National Forest in Tehama County. He was found tending to marijuana plants at the site.
This case was the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Fish & Wildlife, and Tehama County Sheriff’s Office. Assistant U.S. Attorney James Conolly prosecuted the case.
Two Doctors Arrested Pursuant to Federal Indictment that Alleges Bogus Sleep Studies Helped 1-800-GET-THIN Fraudulently Bill Insurance Programs over $250 Million Related to Lap-Band SurgeriesRead the Press Release
LOS ANGELES – Two doctors were arrested this morning on federal fraud charges stemming from more than $250 million in allegedly fraudulent bills related to the 1-800-GET-THIN Lap-Band surgery business.
Julian Omidi, 49, of West Hollywood, and Mirali Zarrabi, 55, of Beverly Hills, were arrested pursuant to a federal indictment that alleges a host of criminal charges stemming from GET THIN’s Lap-Band (or bariatric) surgery and sleep study programs between May 2010 and March 2016.
Two corporations controlled, in part, by Omidi – Surgery Center Management, LLC (SCM), and Independent Medical Services, Inc. (IMS) – are also named in the 37-count superseding indictment that was unsealed today.
The indictment contains charges of mail fraud, wire fraud, false statements, money laundering and aggravated identity theft.
Omidi, a physician whose license was revoked in 2009, controlled, in part, the GET THIN network of entities, including SCM and IMS, that focused on the promotion and performance of elective, Lap-Band weight-loss surgeries. Omidi established procedures requiring prospective Lap-Band patients – even those covered by insurance plans he knew would never cover Lap-Band surgery – to have at least one sleep study, and employees were incentivized with commissions to make sure the studies occurred, according to the indictment. The purpose of the sleep studies was to find a second reason – a “co-morbidity,” such as sleep apnea – that GET THIN would use to convince the patient’s insurance company to pre-approve the Lap-Band procedure.
After patients underwent sleep studies – often with little indication that any doctor had ever determined the study was medically necessary – GET THIN employees, acting at Omidi’s direction, allegedly often falsified the results to reflect that the patient had moderate or severe sleep apnea, and that they suffered from severe daytime sleepiness. Omidi then caused those falsified sleep study reports to be used in support of GET THIN’s pre-authorization requests for Lap-Band surgery.
Relying on the false sleep studies – as well as other false information, including patients’ heights and weights – insurance companies authorized payment for some of the proposed Lap-Band surgeries. The indictment alleges that GET THIN received at least $38 million for the Lap-Band procedures.
Even if the insurance company did not authorize the surgery, GET THIN still was able to submit bills for approximately $15,000 for each sleep study, receiving millions of dollars in payments for these claims, according to the indictment. The insurance payments were deposited into bank accounts associated with the GET THIN entities.
The victim health care benefit programs include TriCare, Anthem Blue Cross, UnitedHealthcare, Aetna, Cigna and others.
“The scheme outlined in the indictment focuses on bogus sleep studies that the defendants utilized to engage in a much more lucrative fraud involving Lap-Band procedures,” said Acting United States Attorney Sandra R. Brown. “Patients were harmed as a result of this fraud scheme when they were subjected to unnecessary medical procedures, and insurance providers were harmed when they paid out tens of millions of dollars after receiving fraudulent bills.”
Zarrabi allowed his electronic signature to be used by GET THIN to make it falsely appear that he had reviewed and interpreted the falsified sleep studies, even though he knew the reports were being altered, according to the indictment. Zarrabi also allegedly demanded to be paid for the use of his electronic signature on hundreds of prescriptions for devices to treat sleep apnea. Zarrabi allegedly did not review the prescriptions, which were sent with the falsified sleep study reports to durable medical equipment providers that billed for sleep apnea equipment that patients often did not need.
“While the defendants in this case were scheming victims who had hopes of ‘getting thin,’ they were also busy getting rich by defrauding the insurance companies and exploiting unwitting victims in many cases,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and its law enforcement partners worked collaboratively to reach this successful result and will continue to hold the perpetrators of health care fraud accountable.”
“The FDA takes seriously its responsibility to protect patients by requiring truthful, non-misleading, and accurate information in the labeling of FDA-regulated products, such as medical devices,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations’ Los Angeles Field Office. “Patients, who may be influenced by false or misleading information, need to be fully aware of the risks of any surgical procedure.”
“Doctor Zarrabi and former physician Omidi victimized countless patients when they allegedly provided medically unnecessary treatment in order to boost their own profits to the tune of tens of millions of dollars,” said California Insurance Commissioner Dave Jones. “Medical provider fraud is multi-billion dollar problem that drives up health insurance premiums and creates a drain on our economy.”
In 2014, the government seized more than $110 million in funds and securities from accounts held by individuals and entities involved in the criminal scheme described in the indictment, including Omidi. The government is seeking forfeiture of some or all of those funds in the criminal case, and also intends to pursue civil forfeiture of some or all of the assets.
“Driven by greed, Omidi and Zarrabi allegedly sought to cheat their way to riches by bilking millions of dollars from Tricare and other health care providers,” stated R. Damon Rowe, Special Agent in Charge for IRS Criminal Investigation. “Those who betray patients and commit health care fraud steal from taxpayers and insurance providers, while corrupting the integrity of our nation’s health care system. IRS Criminal Investigation and our law enforcement partners will investigate and criminally prosecute such fraud schemes to the fullest extent of the law.”
Omidi and Zarrabi, along with the corporate defendants, are scheduled to be arraigned on the indictment this afternoon in United States District Court.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If they were to be convicted in this case, Omidi and Zarrabi potentially would face decades in federal prison, including a statutory maximum penalty of 20 years in prison for each of the 31 mail fraud and wire fraud counts alleged in the indictment.
This case is the product of an investigation by the U.S. Food and Drug Administration, Office of Criminal Investigations; the Federal Bureau of Investigation; the Defense Criminal Investigative Service; IRS Criminal Investigation; the California Department of Insurance; and the California Department of Justice.
The GET THIN case is being prosecuted by Assistant United States Attorneys Kristen A. Williams and Cathy J. Ostiller of the Major Frauds Section.
Two Charged in Scheme to Illegally Export Night Sighting Equipment, Firearms and Ammo to UkraineRead the Press Release
PITTSBURGH - One Michigan resident and one New Jersey resident have been indicted by a federal grand jury in Pittsburgh on a charge of conspiracy, United States Attorney Scott W. Brady announced today.
The one-count indictment named Michael Cox, 42, of Beverly Hills, Michigan, and Michael Stashchyshyn, 55, of Cedar Knolls, New Jersey, as defendants.
According to the indictment, Cox and Stashchyshyn conspired with others to export night sighting equipment, firearms and ammunition to Ukraine without the requisite license issued by the State Department. The items were purchased in the United States by Cox and others, and shipped to Stashchyshyn who owns a freight forwarder business in Parsippany, New Jersey. Stashchyshyn then shipped the items to an individual in Ukraine in violation of U.S. law and regulations. The items shipped are contained on the Federal Munitions List and are controlled by the International Traffic in Arms (ITAR) regulations. They are illegal to ship without a license from the State Department, which the defendants and their co-conspirators did not have.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Charles A. Eberle and Shardul Desai are prosecuting this case on behalf of the government.
U.S. Immigration and Customs Enforcement/Homeland Security Investigations and the United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Gang Members Sentenced for Shooting an Oakland Police Officer and A Rival Gang MemberRead the Press Release
OAKLAND – Three members of the “Sem City” street gang in East Oakland were sentenced today for their respective roles in the shooting of an Oakland police officer on January 21, 2013, and, just 28 hours earlier, shooting a rival gang member in a street-corner ambush in the Seminary neighborhood of Oakland, announced Acting United States Attorney Alex G. Tse and FBI Special Agent in Charge John F. Bennett. The Honorable Phyllis J. Hamilton, Chief United States District Judge, sentenced Purvis Ellis (aka “Bot”) to 20 years in prison, Deante Kincaid (aka “Tay-Tay”) to 23 years in prison, and Joseph Pennymon (aka “Junkie”) to 18 years in prison. On September 20, 2017, Judge Hamilton sentenced co-defendant Damien McDaniel to 33 years in prison for his role in the same crimes. Along with the sentence Judge Hamilton imposed upon McDaniel last fall, today’s sentences bring the case of the attempted murder and assault against the police officer to a close.
“Messrs. Ellis, Kincaid, McDaniel, and Pennymon and the Sem City criminal enterprise posed a significant threat to the public,” said Acting U.S. Attorney Tse. “Today’s just sentences assure the public that brazen acts of violence against our communities and the peace officers sworn to protect them will not be tolerated. This office will continue to prosecute violent and dangerous criminals to the fullest extent of the law. I want to thank all of our federal and state law enforcement partners whose cooperation and efforts helped bring these violent criminals to justice.”
The defendants, all from Oakland, pleaded guilty to their respective roles in the crimes. Ellis, 31; Kincaid, 33; Pennymon, 27; and McDaniel, 27, all admitted they were gang members from East Oakland’s Seminary neighborhood, known as “Sem City.” Ellis, Pennymon, and McDaniel admitted they attempted to murder a member of a rival gang found on their gang’s “turf.” The three men converged on the victim who was standing at a bus stop and fired 13 shots, striking the man in the forehead and leg. In addition, Kincaid and McDaniel admitted assaulting an Oakland police officer the next day. The police officer received a tip that the get-away car was located in an apartment complex in East Oakland. When the officer went to investigate the tip, he was attacked by Kincaid and McDaniel. The officer resisted their attack, but Kincaid restrained him, struck the officer in the head, and threatened to kill him. McDaniel shot the officer in the arm when the officer refused to give up his service pistol. The officer sustained injuries to the head and forearm.
A federal grand jury indicted the defendants on December 19, 2013. On April 24, 2017, McDaniel pleaded guilty to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5) and 2; discharging a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c); and assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(3) and 2. Pennymon and Ellis pleaded guilty to the first three crimes. Pennymon pleaded guilty on August 31, 2017, and Ellis pleaded guilty on September 21, 2017. For his role in the crimes, Kincaid, pleaded guilty on August 31, 2017, to the racketeering conspiracy, assault with a dangerous weapon, and brandishing a firearm charges.
In addition to the prison terms, as part of today’s sentences, Judge Hamilton also sentenced Ellis, Kincaid, and Pennymon to 5-year periods of supervised release to follow the prison terms. The defendants have been in custody since 2013 and will begin serving their sentences immediately.
Assistant U.S. Attorneys Joseph Alioto and Scott Joiner are prosecuting the case, with the assistance of Kevin Costello. The prosecution is the result of an investigation led by the Federal Bureau of Investigation and the Oakland Police Department.
Three Cedar Rapids Men Sent to Federal Prison for Counterfeiting, Possessing Stolen U.S. Mail, and Identify TheftRead the Press Release
Three men were sentenced to federal prison after pleading guilty to counterfeiting U.S. currency, possessing stolen U.S. mail, and aggravated identity theft. The men stole U.S. mail from dozens of mailboxes in the Cedar Rapids area, altered the payee names on checks, often to their own names, and then fraudulently cashed the checks.
Joshua Chalk, age 31, from Cedar Rapids, Iowa, was sentenced today to 36 months in federal prison and three years of supervised release. Chalk was also ordered to make $11,463.45 in restitution to the victims of his crimes. Chalk received the prison term after pleading guilty on July 17, 2017, to manufacturing counterfeit currency and aggravated identity theft. At his plea hearing, Chalk admitted he manufactured a $100 bill in March 2017. Chalk was making counterfeit currency to purchase pizza and other items. Chalk provided counterfeit bills to his girlfriend, who ordered the pizza. Chalk also admitted he participated in a larger bank fraud scheme with Kevin Kappmeyer and Darrell Turner to remove checks from stolen U.S. mail, alter the payee names on the checks, and then attempt to cash those checks. Chalk admitted he presented an altered check on December 26, 2016, at a local check cashing company, with his own name as the payee.
Darrell Turner, age 50, from Cedar Rapids, Iowa, was sentenced on October 26, 2017, to 38 months in federal prison and three years of supervised release. Turner was also ordered to make $7,271.13 in restitution to the victims of his crimes. Turner received the prison term after pleading guilty on April 18, 2017, to possession of stolen mail matter and aggravated identity theft. At his plea hearing, Turner admitted he participated in the stolen mail scheme with Chalk and Kappmeyer. Turner admitted he tried to cash one of the altered checks, bearing his own name as the payee, on January 6, 2017, at a local bank.
Kevin Kappmeyer, age 51, from Cedar Rapids, Iowa, was sentenced on February 15, 2018, to 40 months in federal prison and three years of supervised release. Kappmeyer was also ordered to make $2,680.82 in restitution. Kappmeyer received the prison term after pleading guilty on June 28, 2017, to possession of stolen mail matter and aggravated identity theft. At his plea hearing, Kappmeyer admitted he participated in the stolen mail scheme. Kappmeyer admitted he possessed a check that was stolen from the mail. Kappmeyer cashed the check, bearing his own name as payee, on January 4, 2017.
The men were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Judge Reade increased the sentences of Turner and Kappmeyer because of their “horrible” criminal histories. Turner’s criminal activity stretches back to 1985, when he 18 years old. Turner has numerous convictions for theft and forgery. He also has 12 past violations or revocations of work release, probation, or parole in state court. Kappmeyer’s criminal activity stretches back to 1981, when he was 14 years old. Kappmeyer has convictions from four states: Iowa, Colorado, Wisconsin, and Florida. Kappmeyer has convictions for assault and drunk driving.
Chalk, Turner, and Kappmeyer were all held in the United States Marshal’s custody until they could be transported to a federal prison. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the United States Postal Inspection Service, the Cedar Rapids Police Department, and the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-CR-17-LRR, 17-CR-44-LRR, and 17-CR-47-LRR.
Follow us on Twitter @USAO_NDIA.
Thirty-Seven Gang Members Charged in Crackdown of North County Heroin, Methamphetamine and Firearms TraffickersRead the Press Release
SAN DIEGO – Eleven federal indictments unsealed in San Diego today charge 37 defendants with heroin, methamphetamine and firearms trafficking, in many cases within feet of North County schools.
The crackdown announced today is the latest in a series of efforts by the Department of Justice to turn the tide of the opioid epidemic and reduce the inevitable violent crime that accompanies widespread drug trafficking.
Early this morning, more than 100 members of the North County Regional Gang Task Force, the FBI SWAT team, plus other law enforcement agencies made numerous arrests and, both today and during the course of the investigation, searched more than a dozen locations in Oceanside, Vista, San Marcos, and elsewhere in North County.
As of today at noon, 27 of the 37 defendants are either in federal or state custody. Twenty one were arrested this week, including 18 this morning; the rest were already in custody. Authorities are continuing to search for 10 defendants. Many of the defendants are scheduled to be arraigned before U.S. Magistrate Judge Mitchell D. Dembin at 2:00 p.m. today and tomorrow.
These yearlong investigations involved months of federal wiretaps, dozens of undercover drug and gun buys and extensive surveillance. Many of the defendants are documented members or associates of violent North County street gangs operating out of Encinitas, San Marcos, Oceanside, Vista, Carlsbad, Escondido, and elsewhere. Many of these gang have long-standing ties to the Mexican Mafia. In total, authorities seized heroin, methamphetamine and fentanyl and firearms, including a semi-automatic pistol, revolvers, and a two AR-15 style assault rifles.
These drugs and guns were being stored and sold in North County neighborhoods, including near Libby Lake Park and across the street from several schools – Jefferson Middle School, Clair W. Burgener Academy, Mission Elementary School, San Marcos High School, and Joli Ann Leichtag Elementary School.
“We have a special resolve to go after gangs that have the audacity to operate on the boundaries of our schools, where children play and learn,” said U.S. Attorney Adam L. Braverman. “The gangs are always on our radar, but when they endanger our most precious and vulnerable population – our children - we will act decisively.”
Through one investigation, the gang task force targeted major heroin and methamphetamine distribution cells led by North County street gang members. This investigation was initiated in the fall of 2016 after two gang-related homicides in North County. Anticipating additional violence, the gang task force set forth a plan to dismantle gang-related drug trafficking and violence in North County. As part of this investigation, the gang task force targeted Adrian Gomez, aka “Bandit,” a known Carlsbad gang member, methamphetamine distributor, and felon, who was found in possession of ammunition and a semi-automatic pistol.
The gang task force also targeted Theresa Lapolla, who was found in possession of over 100 grams of heroin at her home, located less than 700 feet from three Oceanside schools. She was charged with possession with intent to distribute over 100 grams of heroin within 1000 feet of a school — a charge that doubles the maximum punishment to 80 years in prison.
This investigation also targeted Robert Gonzalez, aka “Sleepy,” a Carlsbad gang member living in Oceanside’s Posole neighborhood. Months of federal wiretaps showed that Gonzalez was a prolific heroin and methamphetamine distributor who controlled drug sales in that neighborhood, which is a Posole territory located off the I-5 freeway and Highway 76 in Oceanside. In fact, Gonzalez sold narcotics every single day of the roughly three-month wiretap on his telephones. Gonzalez did so by working with multiple gang members and associates to distribute drugs to dozens of customers in and around Oceanside. Gonzalez typically met with his customers and sub-distributors in the parking lots of Wal-Mart, Harbor Freight, Mission Donuts, Burger King, El Super, and a local methadone clinic, all within Oceanside.
Another investigation by the gang task force targeted Encinitas Flats gang member Colin Jones as a high-volume heroin and methamphetamine dealer throughout North County. On June 8, 2017, Jones was arrested after investigators learned through electronic surveillance that he had a loaded AR-style assault rifle in his vehicle. Agents located him at the Pala Indian Casino with the rifle on his front passenger seat and additional ammunition and heroin in the car. Jones is charged with conspiracy to import heroin, conspiracy to distribute methamphetamine and heroin and felon in possession of ammunition.
Jones and his co-conspirators are accused of distributing narcotics in a variety of locations, including near schools. For example, according to court documents, Jones met with a San Marcos gang member at an Albertson’s across the street from San Marcos High School in late April to conduct a narcotics transaction. At other times, Jones and other co-conspirators operated out of a large private parcel of land directly across from Joli Ann Leichtag Elementary School in Vista.
According to court documents, some of the drugs in these investigations were obtained in Tijuana, Mexico, and then North County Gang members used unsanitary methods to sneak heroin and methamphetamine across the border: They repeatedly smuggled small quantities of narcotics in body cavities, via pedestrian lanes at the San Ysidro and Otay Mesa border crossings. Because of the method the conspirators used to smuggle drugs into the United States, which limited the amount that could be smuggled at a given time, Jones would travel to Mexico approximately every five days to replenish his supply of narcotics. Between October 7, 2016 and June 4, 2017 (four days before Jones was arrested in this case), Jones crossed from Mexico into the United States approximately 38 times, with the most recent being on June 4, 2017. Jones typically crossed late at night via the pedestrian lanes.
“The FBI and our law enforcement partners at the North County Regional Gang Task Force won’t accept when gang activity coupled with drugs, firearms and violence infests our communities,” said FBI Special Agent in Charge John A. Brown. “The FBI will continue to pursue violent gang members and work tirelessly with our law enforcement partners to keep our communities safe.”
“The Oceanside Police Department supports the efforts of the San Diego County Gang Task Force, Federal Bureau of Investigation and the U.S. Attorney’s Office in identifying, arresting and prosecuting those that sell and distribute drugs and advocate violence,” said Oceanside Police Chief Frank McCoy.
“This investigation illustrates that these violent street gangs will not prosper in our communities”, says DEA San Diego Acting Special Agent in Charge Steve Woodland. “With the cooperation of all law enforcement agencies involved, these offenders are now off the streets.”
U.S. Attorney Braverman praised the task force for the coordinated team effort in the culmination of this investigation. Agents and officers from the Federal Bureau of Investigation, San Diego County Sheriff’s Office, Oceanside Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, the California Department of Corrections and Rehabilitation, Bureau of Prisons, Homeland Security Investigations, U.S. Marshals Service, California Highway Patrol, and the Escondido and Carlsbad Police Departments collaborated on this investigation. Attorneys from the Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit, also provided critical assistance to the investigation.
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The United States is represented in court by Assistant U.S. Attorneys Kevin Mokhtari, Janaki S. Gandhi and Matthew J. Sutton.
Defendant InformationDEFENDANT Criminal Case No: 17CR1791-JLS
Name
Age
Hometown
Colin Kenneth Jones
AKA “Frosty”
29
Vista, CA
SUMMARY OF CHARGES
Felon in Possession of Ammunition (Title 21, U.S.C., Sec. 922(g)(1)); Conspiracy to Distribute Methamphetamine and Heroin (Title 21, U.S.C., Secs. 841(a)(1), 846); Conspiracy to Import Heroin (Title 21, U.S.C, Secs. 952, 960, 963).
Maximum Penalties: For heroin charges: 40 years in prison with a mandatory minimum sentence of 5 years, and a $5 million fine. For methamphetamine charge: life in prison with a mandatory minimum sentence of 10 years, and a $10 million fine. For firearms charges: 10 years’ in prison, and a $250,000 fine.DEFENDANTS Criminal Case No: 18CR0872-JLS
Name
Age
Hometown
Ikaika Ryan Chung
AKA “Chino”38
Encinitas, CA
Luis Armando Garcia
AKA “Junior”35
San Marcos, CA
Lauren Nicole Valenzuela
AKA “Huera”23
Surprise, AZ
Christopher Tiburski*
39
Escondido, CA
David Alfaro
AKA “Stranger”23
Encinitas, CA
Edgar Delgadillo
AKA “Big E”24
Encinitas, CA
David Loera*
AKA “Porky”37
Encinitas, CA
Ramon Caldera
AKA “Evil”37
San Marcos, CA
Mark Thomas Reed
39
San Diego, CA
Matthew Wayne Truax
34
Escondido, CA
Megan Renee Brown
32
Encinitas, CA
Melissa Sue Borst
37
Orange County, CA
SUMMARY OF CHARGES
Conspiracy to Distribute Heroin and Methamphetamine (Title 21, U.S.C., Secs. 841(a)(1) and 846); Importation of Heroin (Title 21, U.S.C. Secs. 952 and 960).
Maximum Penalties: For the conspiracy charge, life in prison with a mandatory minimum sentence of 10 years and a $10 million fine. For the importation of heroin charges, 20 years in prison and a $1 million fine.
DEFENDANTS Criminal Case No: 18CR0873-JLS
Name
Age
Hometown
Anthony Michele DiGiovanni
34
El Cajon, CA
Kimberly Marie Lawson
34
El Cajon, CA
SUMMARY OF CHARGES
Conspiracy to Import Heroin and Methamphetamine (Title 21, U.S.C., Secs. 952, 960, 963);
Importation of Heroin and Methamphetamine (Title 21, U.S.C., Secs. 952, 960).
Maximum Penalties: For conspiracy charge: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine. For importation charges, one charge carries a maximum 40 years in prison, with a mandatory minimum of 5 years, and $5 million fine; the other two charges carry a maximum 20 years in prison and $1 million fine.
DEFENDANT Criminal Case No: 18CR0874-JLS
Name
Age
Hometown
John Nicholas Hernandez
AKA “Hitman”
36
Los Angeles, CA
SUMMARY OF CHARGES
Use of a Communication Device in Drug-Trafficking Offense (Title 21, U.S.C., Sect. 843(b))
Maximum Penalties: 4 years in prison, $250,000 fine
DEFENDANT Criminal Case No: 18CR1006-JAH
Name
Age
Hometown
Marco Antonio Flores
AKA “Tripps”
38
Oceanside
SUMMARY OF CHARGES
Distribution of Heroin, in violation of Title 21, U.S.C., Sec. 841(a)(1).
Maximum Penalties: 20 years in prison and a $1 million fine.
DEFENDANT Criminal Case No: 18CR1007-JAH
Name
Age
Hometown
Adrian Gomez
AKA “Bandit”
42
Oceanside
SUMMARY OF CHARGES
Felon in Possession of Ammunition and Firearm, in violation of Title 18, U.S.C., Sec. 922(g).
Maximum Penalties: 10 years in prison and a $250,000 fine.
DEFENDANTS Criminal Case No: 18CR1008-JAH
Name
Age
Hometown
Robert Gonzalez
AKA “Sleepy”
41
Oceanside
Luis Campos
AKA “Monster”
45
Oceanside
Daniel Santiago-Martinez
AKA “Tiny”
26
Oceanside
Martin Rodriguez
AKA “Osama”
30
Oceanside
Sergio Caro
AKA “Soldier”
41
Carlsbad
Raul Lopez
AKA “Lalo,” aka “Speedy”
38
Oceanside
Francisco Arzola
AKA “Spanky”
50
Oceanside
Irma Urena
41
Oceanside
Mario Alcantar
39
Oceanside
SUMMARY OF CHARGES
Conspiracy to Distribute Heroin, in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846.
Maximum Penalties: 40 years in prison with a mandatory minimum sentence of 5 years and a $5 million dollar fine.
DEFENDANT Criminal Case No: 18CR1009-JAH
Name
Age
Hometown
Cesar Herrera
AKA “Froggy”
56
Oceanside
SUMMARY OF CHARGES
Distribution of Heroin, in violation of Title 21, U.S.C., Sec. 841(a)(1).
Maximum Penalties: 20 years in prison and a $1 million fine.
DEFENDANT Criminal Case No: 18CR1010-JAH
Name
Age
Hometown
Theresa Lapolla
52
Oceanside
SUMMARY OF CHARGES
Possession with Intent to Distribute Heroin Within 1000 Feet of a School, in violation of Title 21, U.S.C., Secs. 841(a)(1) and 860.
Maximum Penalties: 80 years in prison with a mandatory minimum sentence of 5 years and a $10 million fine.
DEFENDANT Criminal Case No: 18CR1011-JAH
Name
Age
Hometown
Amando Carrasco Martinez
AKA “Cowboy”
34
Vista
SUMMARY OF CHARGES
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1).
Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
DEFENDANTS Criminal Case No: 18CR1012-JAH
Name
Age
Hometown
Benjamin Martinez
AKA “Knuckles”
24
Oceanside
Miguel Silva
AKA “Mikey”
23
Oceanside
SUMMARY OF CHARGES
Conspiracy to Distribute Methamphetamine in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846;
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1).
Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
DEFENDANT Criminal Case No: 18CR1013-JAH
Name
Age
Hometown
Ray Soto
56
Oceanside
SUMMARY OF CHARGES
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1).
Maximum Penalties: 40 years in prison with a mandatory minimum sentence of 5 years and a $5 million fine.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
AGENCIES
North County Regional Gang Task Force, which includes the Federal Bureau of Investigation, San Diego County Sheriff’s Office, Oceanside Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, the California Department of Corrections and Rehabilitation, Bureau of Prisons, Homeland Security Investigations, U.S. Marshals Service, California Highway Patrol, and the Escondido and Carlsbad Police Departments.
Texas Man Wanted by Federal Authorities Sentenced to Prison for Credit Card FraudRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Jose Carlos Terra Izquierdo (24, Amarillo, TX) to 24 months in federal prison for credit card fraud, to run consecutive to the 12 month and 1 day prison sentence he received in the District of Nebraska. The court also ordered Izquierdo to pay restitution to the companies that he defrauded.
According to court documents, in 2016, Izquierdo was convicted of credit card fraud in the District of Nebraska. He was scheduled to turn himself in and begin his prison sentence in March 2017, but instead traveled to Florida in violation of his conditions of release. Federal authorities in Nebraska subsequently issued a warrant for his arrest. On March 2, 2017, Izquierdo was pulled over in Columbia County by the Florida Highway Patrol for an expired Texas tag. During a subsequent search of the vehicle, troopers located a credit card reader and stolen credit card information belonging to more than 50 victims.
This case was investigated by the Florida Highway Patrol and the United States Secret Service - Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Texas Man Sentenced to 10 Years in Prison for Hate Crime Assault Based on Victim’s Sexual OrientationRead the Press Release
Chancler Encalade, 20, was sentenced yesterday to 10 years in prison for assaulting a man because of the victim’s sexual orientation, announced the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division.
According to the plea agreement, Encalade admitted he, Nigel Garrett, and another co-defendant, used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.
A federal grand jury previously returned an eighteen-count superseding indictment that included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged the defendants with conspiring to cause bodily injury because of the victims’ sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, from Jan. 17 to Feb. 7, 2017. Garrett, their other co-defendant, and Encalade subsequently pleaded guilty to hate crime charges from this indictment. Garrett was recently sentenced to 15 years in prison.
“The defendant targeted his victim with violence because of his sexual orientation, and used the internet to facilitate this crime,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute hate crimes such as this one.”
“The defendant not only broke in, but he did it specifically to intimidate individuals because of their sexual orientation,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “This is the kind of case where federal and local law enforcement should come together, and that happened effectively here.”
The investigation is being conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Teenage Dealer of Deadly Drugs Sentenced to 5 Years in PrisonRead the Press Release
PITTSBURGH – A teenage resident of Westmoreland County, Pennsylvania, has been sentenced in federal court to 60 months imprisonment, followed by three years supervised release, on a charge of violating federal drug laws. The Court also ordered Tristin Bradley Axton, 19, of Greensburg, to pay $8,120.00 for the funeral expenses of the victim, United States Attorney Scott W. Brady announced today.
According to information presented to the Court, while Axton was a juvenile, he sold opiates that caused the death of victim Anthony Terrant on August 16, 2015. On September 20, 2016, when Axton was barely 18, federal law enforcement officers apprehended Axton in the middle of selling 50 stamp bags of heroin and he was also found to possess additional amounts of heroin and three cellphones. In court, Axton specifically admitted to selling the drugs which caused Mr. Terrant’s death.
United States District Judge Cathy Bissoon noted the "very serious nature of this offense" when imposing the sentence on Axton. The Judge ordered that 50% of Axton’s prison salary and, after his release from federal prison, a minimum of 10% of his gross earnings be set aside to pay his debt to the victim’s family for the victim’s funeral expenses.
Assistant United States Attorneys Ross E. Lenhardt, of the Violent Crime Section of the U.S. Attorney’s Office, prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration (DEA), the Washington County Drug Task Force, the Washington County Sheriff’s Office, the Washington County District Attorney’s Office, and local police departments including the Canonsburg Police Department, the Charleroi Police Department, the Rostraver Township Police Department and the Monessen Police Department, as well as the Washington County Coroner’s Office and the Allegheny County Medical Examiner’s Office, for the investigation leading to the successful prosecution of Axton.
Supervisor of Fraudulent Debt Collection Company Pleads Guilty for His Role in Conspiracy to Defraud Victims Throughout the United StatesRead the Press Release
CHARLOTTE, N.C. – Ronald Shane Hough, 50, of Mt. Holly, N.C. pleaded guilty to federal charges for his role in a fraudulent debt collection scheme operating out of Mecklenburg County, announced R. Andrew Murray, United States Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins the U.S. Attorney’s Office in making today’s announcement.
Hough appeared before U.S. Magistrate Judge David C. Keesler and admitted he was a collections manager for Direct Processing LLC (Direct Processing), a fraudulent debt collection company. According to documents filed in connection with the guilty plea, while working there, Hough and others defrauded victims by using fraudulent misrepresentations and threatening and abusive tactics to induce victims to pay money they purportedly owed. The fraudulent tactics included using fictitious company names in communications with victims and falsely representing that there was pending litigation or charges against victims. The filed criminal bill of information states that, between January 2013 and July 2014, Hough and others at Direct Processing defrauded thousands of individuals throughout the United States of between $550,000 and $1,000,000.
“Hough is a financial predator who harassed, bullied and tricked victims into paying off debts that, in many instances, were not owed. The victims targeted by the scheme, some of whom were elderly, were forced to pay off debts, many times fictitious, just to get the harassing calls to stop. Protecting Americans from financial exploitation is a priority for this office and we will continue to go after fraudulent debt collection companies that use threats and lies to force victims into submitting to demands for money,” said U.S. Attorney Murray.
Hough pled guilty to conspiracy to commit mail and wire fraud. The maximum prison term for the charge is five years. A sentencing date has not yet been set.
The Federal Bureau of Investigation led the investigation. Assistant United States Attorney William M. Miller, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Speech Therapist and Clinic Owner Found Guilty in Health Care Fraud SchemeRead the Press Release
BROWNSVILLE, Texas ‐ A federal judge has imposed a guilty verdict against a speech therapist and part-owner of a pediatric speech therapy for conspiring to defraud Texas Medicaid through fraudulent billings, announced U.S. Attorney Ryan K. Patrick.
U.S. District Judge Andrew Hanen presided over the seven-day trial that occurred in September 2017. Today, the court found Georgia Phillips, 67, of Olmito, guilty of conspiracy to commit health care fraud. Judge Hanen found that she conspired with the clinic’s biller to submit false and fraudulent claims to Texas Medicaid on behalf of Children’s First Pediatric Rehabilitation (CFPR) in Harlingen and Georgia M. Phillips LLC in Brownsville.
The evidence presented during the bench trial showed that the biller for CFPR and Georgia M. Phillips LLC submitted thousands of false and fraudulent claims to Texas Medicaid for children’s therapy services that were not provided, submitted duplicate bills for therapy services that had already been paid by Medicaid and overbilled therapy services that were provided.
The court heard evidence that from May 1, 2009, to May 31, 2012, CFPR and Georgia M. Phillips LLC submitted false and fraudulent claims totaling $821,145 to Texas Medicaid for children’s therapy services allegedly provided to Texas Medicaid recipients on behalf of the two companies.
The defense attempted to convince the judge that the fraudulent claims were the result of sloppy billing on the part of the biller. Judge Hanen did not believe defense’s argument and found Georgia Phillips guilty of conspiring to defraud Texas Medicaid.
Conspiracy to commit health care fraud carries a maximum punishment of 10 years in federal prison and a potential $250,000 maximum fine.
Sentencing has been set for June 5, 2018. Phillips was permitted to remain on bond pending that hearing.
The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services‐Office of Inspector General, FBI and the Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorneys Michael Day and Andrew Swartz are prosecuting the case.
South Bend Man ChargedRead the Press Release
SOUTH BEND – Branden Furnari, 31, of South Bend, Indiana was charged with possession of a firearm (destructive device) not registered in the National Firearms Registration Record.
According to documents in this case, Furnari was arrested after allegedly selling destructive devices to an undercover law enforcement officer. Furnari explained in detail how to assemble the components using the “Det cord” and “Blasting caps” which was all provided in the transaction for $800 dollars to the undercover officer.
U.S. Attorney Kirsch, “My office will continue to aggressively prosecute violations of federal firearms laws.”
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the ATF with the assistance of the South Bend Police Department. This case is being handled by Assistant U.S. Attorney Jesse Barrett.
###
San Francisco Resident Sentenced to Ten Years in Prison for Conspiracy to Distribute Methamphetamine, Firearms Possession and Related ChargesRead the Press Release
SAN FRANCISCO – Vincente Cruz was sentenced today to 120 months in prison for conspiring to distribute and possess with intent to distribute methamphetamine, being a felon in possession of a firearm, and related charges, announced Acting United States Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down today by the Honorable Edward M. Chen, United States District Judge.
Cruz, 36, of San Francisco, pleaded guilty on November 15, 2017, to the drug distribution-related and firearms possession-related charges. According to his plea agreement, on September 26, 2016, Cruz possessed and sold more than 55 grams of methamphetamine. Cruz further admitted that on October 25, 2016, he possessed a .22 caliber Ruger pistol as well as methamphetamine that he intended to distribute. Cruz admitted that at the time he possessed the pistol, he was legally disqualified from doing so because of a prior felony conviction. Additionally, Cruz admitted that on October 27, 2016, he sold another 92.9 grams of a substance containing a detectable amount of methamphetamine.
On June 29, 2017, a federal grand jury indicted Cruz and co-defendant Etevati Levi, charging them both with conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(B)(viii), and possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii). In addition, Cruz was charged in the indictment with one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. § § 841(a)(1) and (b)(1)(A)(viii), and being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). Pursuant to his plea agreement, Cruz pleaded guilty to all four counts with which he was charged in the indictment.
In addition to the prison term, Judge Chen also sentenced the defendant to a five-year period of supervised release. Cruz has been in federal custody since entering his guilty plea on November 15, 2017, and will begin serving his sentence immediately.
For his part in the scheme, Levi pleaded guilty on September 27, 2017, to the two charges filed against him in the indictment. On December 13, 2017, Judge Chen sentenced Levi to 60 months in prison and four years of supervised release. Levy is in federal custody and has been serving his sentence since August 23, 2017.
Assistant U.S. Attorney Karen Kreuzkamp is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the ATF and concludes another case brought as part of Operation Cold Day, an effort spearheaded by the ATF to bring federal resources to bear in support of ongoing state and local efforts to combat gun and drug-related crime.
Port Arthur Convicted Felon Sentenced for Gun ViolationsRead the Press Release
BEAUMONT, Texas - A 43-year-old Port Arthur, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Robert Lee Johnson, Jr., pleaded guilty on Oct. 31, 2017, to being a felon in possession of a firearm and was sentenced to 44 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Feb. 22, 2016, law enforcement officers executed a search warrant at Johnson’s residence on 5th Avenue in Port Arthur. During the execution of the warrant, officers discovered drug paraphernalia, a digital scale, Johnson’s prisoner identification card, ammunition, and a loaded semi-automatic handgun. Further investigation revealed Johnson was a convicted felon, having been previously found guilty of numerous felony offenses, including multiple convictions for possession of cocaine. As a convicted felon, Johnson is prohibited from owning or possessing firearms or ammunition. Johnson was indicted by a federal grand jury on Aug. 10, 2017 and charged with federal firearms violations.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Port Arthur Police Department, and the Jefferson County Crime Lab. This case was prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Pittsburgh-area Drug Dealer Gets 8 Years for Selling Fatal Dose of FentanylRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 96 months in prison on his guilty plea to violating federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Court Judge Joy Flowers Conti imposed the sentence yesterday on Matthew David Adams, age 29.
In connection with the guilty plea, the court was advised that Adams was a drug dealer who sold both heroin and fentanyl. Adams sold 15 stamp bags marked "OMG" and two of those bags were given to the victim who died as a result of using the fentanyl in them. After law enforcement officers identified Adams as the dealer of the deadly drugs, he was arrested and found in possession of stamp bags containing fentanyl and others containing heroin. In Court, Adams admitted that the fentanyl he sold caused the April 19, 2016 death of Jesse James King in Houston Borough, Washington County.
Judge Conti told Adams that he would have to live with the fact that he caused the death of another person "for the rest of [his] life" and ordered that he be supervised by federal Probation Officers for five years after his release from the 8-year term of imprisonment. Judge Conti imposed strict conditions on Adams’ supervision which included requirements that he work at least 30 hours per week, not associate with felons, notify his Probation Officer if he is stopped or questioned by police, and pay his debt to society. The defendant personally apologized for becoming involved in the incident that brought him to federal court.
Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor in the Violent Crime section of the U.S. Attorney’s Office, prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration (DEA), the Washington County Drug Task Force, the Washington County Sheriff’s Office, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the Washington County District Attorney’s Office, and numerous local police departments including the Canonsburg Police Department, the Stowe Township Police Department, the Donora Police Department, the Monessen Police Department, and the Charleroi Police Department, as well as the Washington County Coroner’s Office and the Allegheny County Medical Examiner’s Office, for the investigation leading to the successful prosecution of Adams.
Pittsburgh Man Sentenced in Heroin and Fentanyl Trafficking SchemeRead the Press Release
PITTSBURGH – A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 12 months and one day in jail, to be followed by three years of supervised release on his convictions for conspiracy to possess with the intent to distribute heroin, as well as heroin and fentanyl, and possession with the intent to distribute and distribution of heroin and fentanyl, United States Attorney Scott W. Brady announced today.
On February 27, United States District Judge Nora Barry Fischer imposed the sentence on Antoine Johnson, aka Twezzy, age 31.
According to information presented to the court, on December 2, 2016, Antoine Johnson, as part of a conspiracy with co-defendants Kimn Booth, Erik McCoy and Maurice Boxley, sold a heroin and fentanyl mixture to an undercover FBI Task Force Officer.
Assistant United States Attorney Timothy M. Lanni prosecuted this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.
Pittsburgh Man Charged with Trafficking CocaineRead the Press Release
PITTSBURGH – A former resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of trafficking cocaine, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on February 20, named Johnny Lee Jones, 46, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on March 13, 2017, Jones knowingly, intentionally, and unlawfully possessed with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not less than five years and up to 40 years imprisonment, a maximum fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation (FBI) and the Bethel Park Police Department conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Assaulting Two Federal OfficersRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of assault of federal officers, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on February 27, named Leonard Rushin-Felder, 21, as the sole defendant.
According to the indictment, on or about May 2, 2017, Rushin-Felder forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with two Deputy United States Marshals who were engaged in the performance of their official duties in the Joseph F. Weis, Jr., United States Courthouse.
The law provides for a maximum total sentence of not more than eight years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Rachael L. Dizard and Eric G. Olshan are prosecuting this case on behalf of the government. The United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pine Bluff Man Sentenced to Prison for His Role in Stealing Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced today that United States District Court Judge Kristine G. Baker sentenced Elbert Harris, 58, of Pine Bluff, to federal prison for his role in a widespread scheme to steal money intended for feeding children in low income areas in Arkansas.
Judge Baker sentenced Harris, who pleaded guilty to conspiring to commit wire fraud on October 10, 2017, to 33 months’ imprisonment, to be followed by three years of supervised release. Harris was also ordered to pay $1,084,130.13 in restitution and to forfeit property he bought with money he acquired during the scheme.
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs and they are reimbursed for the eligible meals they serve.
Harris was a sponsor for a feeding program through an organization called “Greater Faith Ministries.” Harris had 14 approved feeding site locations, which were located in Pine Bluff, Altheimer, and Wabbaseka. Harris submitted fraudulent claims to DHS, claiming to have fed many more children than were actually fed, and then DHS would reimburse him for that amount. Harris submitted claims of up to 165 children per day at some of his feeding sites, but fewer than 20 children were actually fed at these locations.
Harris is the 16th defendant sentenced who was charged in connection with a scheme to fraudulently obtain USDA program funds intended to feed children in low income areas. Other defendants include: Kattie Jordan (63 months imprisonment on March 15, 2016); Reuben Nims (21 months imprisonment on November 2, 2016); Tonique Hatton (108 months’ imprisonment on January 4, 2017); James Franklin (24 months’ imprisonment on January 10, 2017); Maria Nelson, (30 months’ imprisonment on January 31, 2017); Michael Lee (30 months’ imprisonment on May 1, 2017); Christopher Nichols (3 years’ probation on May 16, 2017); Gladys Waits (108 months’ imprisonment on July 17, 2017); Alexis Young (18 months’ imprisonment on August 18, 2017); Erica Warren (18 months’ imprisonment on August 18, 2017); Francine Leon (34 months imprisonment on September 21, 2017); Anthony Waits (175 months’ imprisonment on October 20, 2017); Jacqueline Mills (150 months imprisonment on December 6, 2017); Dorothy Harper (33 months imprisonment on January 9, 2018); and ); and Waymon Weeams (15 months imprisonment on February 15, 2018).
Debora Washington was indicted on conspiracy and fraud charges related to this scheme on February 1, 2018, and is awaiting a jury trial in front of United States District Judge J. Leon Holmes. Also, Nigel Hall has pleaded guilty to conspiracy to commit wire fraud in relation to the same feeding programs and is awaiting sentencing before Judge Holmes at a later date.
The investigation is still ongoing and continues to be conducted by the USDA–Office of Inspector General, IRS–Criminal Investigations, and the FBI. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison W. Bragg, and Cameron McCree.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Pendleton County man sentenced to 70 months for firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Randy David May, of Franklin, West Virginia, was sentenced today to 70 months incarceration for a firearms violation, United States Attorney Bill Powell announced.
May, age 37, pled guilty to “Felon in Possession of a Firearm” in October 2017. May, having been convicted of three prior felonies, admitted to possessing a 12-gauge shotgun on August 28, 2016 in Pendleton County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.Pekin Man Sentenced to Two Years in Prison for Defrauding Elderly VictimRead the Press Release
PEORIA, Ill. - A Pekin, Ill., man has been ordered to serve 24 months in federal prison for defrauding an elderly victim of his life savings over a two-year period. U.S. District Judge Joe Billy McDade today sentenced Deryl Wright, 42, of the 1400 block of Camden St., to the prison term and ordered that Wright pay restitution in the amount of $100,585 to the victim. Wright has been in the custody of the U.S. Marshals Service since his arrest on Oct. 2, 2017.
In an announcement on Feb. 22, 2018, the U.S. Attorney’s Office cited Wright’s case among more than 250 defendants in a nationwide elder fraud sweep by the Department of Justice. The Department has made prosecuting fraud schemes that target the elderly a key priority.
On Nov. 22, 2017, Wright entered pleas of guilty to charges that he defrauded an elderly, vulnerable victim under the premise that Wright’s father had died and he was to inherit a large sum of money. From 2015 to April 2017, Wright told the victim that he needed to borrow money to receive the inheritance check and that he would pay back the victim from the inheritance money. In fact, Wright had no such inheritance check; rather, the money he obtained from the victim was used to support his lifestyle and for his personal benefit.
The Pekin Police Department investigated the charges. Assistant U.S. Attorney Katherine G. Legge prosecuted the case in the Peoria Division of the U.S. Attorney’s Office for the Central District of Illinois.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Pawtucket Man Facing 5-40 Years in Prison on Drug Trafficking ChargesRead the Press Release
PROVIDENCE, RI – David Reis, 41, of Pawtucket, is facing a statutory sentence of 5-40 years in federal prison for trafficking significant quantities of crack cocaine and cocaine when he is sentenced in May.
Following a lengthy investigation into Reis’ drug trafficking activities, which included controlled purchases of cocaine from Reis, members of the Pawtucket Police Special Squad executed a court authorized search of Reis’ residence on October 26, 2017. The search resulted in the seizure of 323.67 grams of cocaine, 188.26 grams of crack cocaine, and, among several other items, items used in the packaging and distribution of the drugs and an elaborate indoor/outdoor wireless video security system.
On Tuesday, Reis pleaded guilty to one count each of possession with intent to deliver 28 grams or more of cocaine base and possession with intent to distribute cocaine, announced United States Attorney Stephen G. Dambruch and Pawtucket Police Chief Tina Goncalves.
David Reis is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on May 18, 2017. The maximum statutory sentence for possession with intent to deliver 28 grams or more of cocaine base is 40 years’ imprisonment with a mandatory minimum term of 5 years in federal prison and a term of supervised release of 4 years up to lifetime supervised release. The maximum statutory sentence for possession with intent to deliver cocaine is 20 years’ imprisonment and a term of supervised release of 3 years up to lifetime supervised release.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
United States Attorney Stephen G. Dambruch thanks the Drug Enforcement Administration for their assistance in the prosecution of this matter.
###
Owner of Numerous Miami-Area Home Health Agencies Sentenced to 20 Years in Prison for Role in $66 Million Medicare Fraud ConspiracyRead the Press Release
The owner and operator of numerous Miami, Florida-area home health agencies was sentenced to 240 months in prison today for his role in a $66 million conspiracy to defraud the Medicare program.
U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Field Office made the announcement.
Rafael Arias, 52, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, who ordered Arias to pay $66.4 million in restitution and to forfeit the gross proceeds traced to the offense. Arias pleaded guilty on Nov. 30, 2017, to one count of conspiracy to commit health care fraud and wire fraud.
“Today’s sentencing sends a clear message to anyone who is considering defrauding the Medicare system: You will not only be caught, prosecuted, and sent to prison, but you will also have to pay back all of your ill-gotten gains,” said Acting Assistant Attorney General Cronan.
“Arias assumed that in Medicare fraud lay a path to riches,” said Special Agent in Charge Richmond. “Instead he discovered that we are working tirelessly with our law enforcement partners to protect patients and taxpayers while holding criminals accountable for their unlawful actions.”
As part of his guilty plea, Arias admitted that, between December 2007 and September 2015, he was the owner and operator of more than 20 home health agencies. In many cases, however, Arias recruited nominee owners to falsely and fraudulently represent themselves as the agencies’ owners to hide his identity and ownership interest. Arias and his co-conspirators paid illegal bribes and kickbacks to patient recruiters to refer patients to these agencies, and submitted false and fraudulent home health care claims to Medicare for beneficiaries who, in many cases, did not qualify or for whom the services were never provided. In addition, Arias provided checks to other individuals and entities to cash so that Arias and his co-conspirators could obtain fraud proceeds to benefit themselves and further the fraudulent scheme.
Arias was charged along with Aylen Gonzalez, 39, of Hialeah, Florida; Ana Gabriela Mursuli Caballero, 51, of Miami; and Rafael Cabrera, 51, of Miami, in a July 2017 indictment. Gonzalez, a patient recruiter who owned a medical clinic and co-owned two home health agencies, pleaded guilty in November 2017 to one count of conspiracy to commit health care fraud and wire fraud and was sentenced to 180 months in prison. Mursuli Caballero, a patient recruiter and owner of two home health agencies, pleaded guilty in October 2017 to one count of conspiracy to commit health care fraud and wire fraud and was sentenced to 115 months in prison. Cabrera, who participated in laundering and concealing the proceeds from the fraud, pleaded guilty in November 2017 to one count of conspiracy to commit money laundering and was sentenced to 71 months in prison.
This case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys Angela Adams and Jessica Collins of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Numerous Miami-Area Home Health Agencies Sentenced to 20 Years in Prison for Role in $66 Million Medicare Fraud ConspiracyRead the Press Release
The owner and operator of numerous Miami, Florida-area home health agencies was sentenced to 240 months in prison today for his role in a $66 million conspiracy to defraud the Medicare program.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Field Office made the announcement.
Rafael Arias, 52, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, who ordered Arias to pay $66.4 million in restitution and to forfeit the gross proceeds traced to the offense. Arias pleaded guilty on Nov. 30, 2017, to one count of conspiracy to commit health care fraud and wire fraud.
“Today’s sentencing sends a clear message to anyone who is considering defrauding the Medicare system: You will not only be caught, prosecuted, and sent to prison, but you will also have to pay back all of your ill-gotten gains,” said Acting Assistant Attorney General Cronan.
“Arias assumed that in Medicare fraud lay a path to riches,” said Special Agent in Charge Richmond. “Instead he discovered that we are working tirelessly with our law enforcement partners to protect patients and taxpayers while holding criminals accountable for their unlawful actions.”
As part of his guilty plea, Arias admitted that, between December 2007 and September 2015, he was the owner and operator of more than 20 home health agencies. In many cases, however, Arias recruited nominee owners to falsely and fraudulently represent themselves as the agencies’ owners to hide his identity and ownership interest. Arias and his co-conspirators paid illegal bribes and kickbacks to patient recruiters to refer patients to these agencies, and submitted false and fraudulent home health care claims to Medicare for beneficiaries who, in many cases, did not qualify or for whom the services were never provided. In addition, Arias provided checks to other individuals and entities to cash so that Arias and his co-conspirators could obtain fraud proceeds to benefit themselves and further the fraudulent scheme.
Arias was charged along with Aylen Gonzalez, 39, of Hialeah, Florida; Ana Gabriela Mursuli Caballero, 51, of Miami; and Rafael Cabrera, 51, of Miami, in a July 2017 indictment. Gonzalez, a patient recruiter who owned a medical clinic and co-owned two home health agencies, pleaded guilty in November 2017 to one count of conspiracy to commit health care fraud and wire fraud and was sentenced to 180 months in prison. Mursuli Caballero, a patient recruiter and owner of two home health agencies, pleaded guilty in October 2017 to one count of conspiracy to commit health care fraud and wire fraud and was sentenced to 115 months in prison. Cabrera, who participated in laundering and concealing the proceeds from the fraud, pleaded guilty in November 2017 to one count of conspiracy to commit money laundering and was sentenced to 71 months in prison.
This case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys Angela Adams and Jessica Collins of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Overdose Investigation Results in 7-Year Sentence for Waterbury ManRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JEREMY WAVER, 31, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer to 84 months of imprisonment, followed by three years of supervised release, for distributing controlled substances.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 2, 2017, Ansonia Police and emergency medical personnel responded to a report of an overdose death at an Ansonia residence. At the residence, responders encountered a deceased 23-year-old female. Investigators collected evidence including a hypodermic needle and several wax folds of a substance that was later determined to contain furanyl fentanyl. Investigators also seized the victim’s iPhone.
The investigation revealed that, on April 1, the victim and another individual purchased heroin from WAVER in Waterbury.
WAVER was arrested in Waterbury on May 4. At the time of his arrest, WAVER possessed more than 100 wax folds of substances that contained heroin, U-47700 (a synthetic opioid), fentanyl, and furanyl fentanyl. In addition, WAVER possessed a quantity of crack cocaine. Many of the folds were stamped with the same image found on the folds recovered at the scene of the victim’s overdose death.
On December 4, 2017, WAVER pleaded guilty to one count of possession with intent to distribute, and distribution of, controlled substances.
WAVER’s criminal history includes numerous drug convictions.
As part of the sentence, Judge Meyer ordered WAVER to pay restitution of $4,503.96 to the victim’s father to cover the a portion of the victim’s funeral expenses.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Ansonia Police Department. The case was prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Ontario, NY Woman Sentenced for Committing Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Cortney Vogt, 38, of Ontario, NY, who was convicted of two counts of bank fraud was sentenced to 60 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Vogt was employed by SalesSource International and ID SignSystems. From September 2013 to April 2017, Vogt abused her position of trust at those businesses and forged checks and embezzled money from them. In total, the defendant stole approximately $167,319.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.
Norteño Gang Member Sentenced to 17 Years and Six Months in Prison for RICO Conspiracy and Use of FirearmsRead the Press Release
SAN JOSE – Julian Ruiz was sentenced today to 210 months in prison for his role in a racketeering conspiracy and for using or possessing firearms in furtherance of a crime of violence, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down earlier today by the Honorable Lucy H. Koh, U.S. District Judge.
“Mr. Ruiz and the East Las Casitas gang have committed horrible acts of violence against the public,” said Acting U.S. Attorney Tse. “This prosecution and today’s appropriate sentence will hopefully provide solace to the victims, their families, and the Salinas community.”
“This sentencing is a testament to our dedication to get members of violent gangs and criminal organizations off the street and out of our communities," said Special Agent in Charge Bennett of the FBI's San Francisco Division. “Those who facilitate violent acts by racketeering and other means cannot and will not be tolerated.”
On December 6, 2017, Ruiz, 29, of Salinas, pleaded guilty to two counts of racketeering conspiracy; using or possessing a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A); and aiding and abetting the use or possession of a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A) and 2. According to the plea agreement, Ruiz admitted to being a member of the Norteño street gang clique known as “East Las Casitas” or “ELC” since at least 2006. Along with other Norteño cliques in Salinas, the ELC committed acts of violence for the benefit of the gang including murder, attempted murder, and robbery. Among other acts of violence, members of ELC sought to attack and kill members of rival Sureño gangs, as well as members of other rival gangs.
The racketeering-related attempted murders to which Ruiz pleaded guilty took place over a one-month period in 2009. On September 15, 2009, Ruiz was in a car hunting for Sureños to shoot, and spotted a suspected Sureño on a bicycle in front of an apartment complex. Ruiz used a handgun to fire multiple shots at the suspected Sureño as he fled on foot. A few weeks later, on October 3, 2009, Ruiz participated in the attempted murder of a rival gang member from the Fremont gang. After learning that an ELC hang out was shot into, and suspecting the shooting was done by Fremont gang members, Ruiz agreed to shoot at and attempted to kill additional Fremont gang members. Ruiz went to the home of a Fremont gang member, kicked the front door open, and opened fire at two Fremont gang members inside. Ruiz shot one victim in the stomach and shoulder and the other victim in the left arm.
On October 28, 2015, a grand jury charged Ruiz with one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); one count of conspiracy to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6); and one count of use of firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A) and 2. Pursuant to his plea agreement, Ruiz pleaded guilty to one of the racketeering charges and the firearms charge. The investigation leading to the indictment was part of the FBI’s crackdown on Norteño gangs in Monterey County.
In addition to the prison term, Judge Koh also sentenced Ruiz to a five-year period of supervised release, to commence after Ruiz completes his prison sentence. Ruiz has been in federal custody since December 1, 2015, and will begin serving his sentence immediately.
Assistant U.S. Attorneys Kimberly Hopkins, Christiaan Highsmith, and Stephen Meyer are prosecuting the case with the assistance of Nina Burney Williams, Adria Trgovich, and Lance Libatique. The prosecution is the result of an investigation by the FBI and Salinas Police Department.
New Orleans Man Sentenced in Methamphetamine-Trafficking ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that CLARK McALPIN, age 37, of New Orleans, was sentenced today after previously pleading guilty to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically McALPIN pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine, in violation of 21 U.S.C. '' 841(a)(1), 841(b)(1)(A) and 846.
U.S. District Judge Ivan L.R. Lemelle sentenced McALPIN to 10 years’ incarceration, followed by 5 years of supervised release.
According to court documents, in 2016, codefendant Steven Lyons was a New Orleans-based drug trafficker who was receiving parcels of methamphetamine via common mail carriers. McALPIN would assist Lyons in distributing the quantities of methamphetamine in the New Orleans area.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Amtrak Police, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
New Orleans Man Sentenced for Illegal Possession of a Firearm and False Statements to Federal AgentsRead the Press Release
U.S. Attorney Duane A. Evans announced that DARRION YOUNG, age 32, from New Orleans, was sentenced to serve forty months imprisonment for being a felon in possession of a firearm and for making false statements to federal agents. DARRION YOUNG pleaded guilty in June 2017.
According to documents filed in court, DARRION YOUNG, who had previously been convicted of a felony in the United States District Court for the Eastern District of Louisiana, possessed a firearm on November 24, 2015. Moreover, after he was arrested, on two occasions, DARRION YOUNG made false statements to agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, during which he falsely accused a person of taking part in a shooting at the Bunny Friend Park on November 22, 2015. In fact, the person that DARRION YOUNG falsely accused was not in Louisiana on the date of the Bunny Friend Park shooting. However, that person was incarcerated for approximately two weeks until he was released.
In addition to the term of imprisonment, United States District Judge Susie Morgan sentenced DARRION YOUNG to a term of three years of supervised release.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
New Castle Man Pleads Guilty in Lawrence and Mercer County Robbery SpreeRead the Press Release
PITTSBURGH – A former resident of New Castle, Pennsylvania, pleaded guilty in federal court to robbery charges, United States Attorney Scott W. Brady announced today.
Eric Barbati, age 32, pleaded guilty to four counts of Hobbs Act robbery and two counts of bank robbery before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that Eric Barbati robbed four convenience stores and two banks over a three-week period across Lawrence County, PA. Barbati committed the following convenience store robberies:
- August 26, 2017 – BFS Foods Convenience Store, New Castle, PA
- August 31, 2017 – Red Apple Convenience Store, New Castle, PA
- September 4, 2017 – Market 24 Convenience Store, New Castle, PA
- September 17, 2017 – Market 24 Convenience Store, New Castle, PA
In each robbery, Barbati approached the teller at the store while holding a Mountain Dew bottle. When the teller went to give Barbati change for his purchase, Barbati would forcefully take money from the drawer or the entire cash drawer and flee from the store.
Barbati also robbed the PNC Bank in Hermitage, PA on September 5, 2017 and the Huntington Bank in New Wilmington, PA on September 11, 2017. At the PNC Bank robbery, Barbati approached the teller and stated, "This is a robbery, place all your money on the counter," and then received approximately $2,702 in U.S. currency before fleeing the bank. At the Huntington Bank robbery, Barbati passed a note to the teller stating, "This is a robbery, put all your money on the counter," then received approximately $1,641 in U.S. currency before fleeing the bank.
Judge Cercone scheduled sentencing for July 23, 2018. The law provides for a maximum sentence of up to 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior record, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Hermitage Police Department, the New Wilmington Borough Police Department, the New Castle Police Department, and the Neshannock Township Police Department conducted the investigation leading to the guilty plea in this case.
Misdemeanor Immigration Prosecutions – January and February 2018Read the Press Release
ALBANY, NEW YORK – The following is a summary of misdemeanor immigration prosecutions from January and February 2018. All defendants were or will be placed into removal proceedings, by the Department of Homeland Security, following the completion of their sentences.
Citizen of Haiti Sentenced For Illegal Entry
Keetzall Baptiste, age 38, of Haiti, was sentenced on January 2 to 23 days in jail, following his plea to illegally entering the United States from Canada.
Baptiste admitted that he crossed the border approximately one-half mile east of the Champlain Port of Entry on December 18, 2017. He was found and arrested by Border Patrol Agents as he was walking south away from the border.
Two Citizens of Uzbekistan Sentenced For Illegal Entry
Bahodir Rustamov, age 38, of Uzbekistan, was sentenced on January 11 to 19 days in jail and Davlat Ahmedov, age 29, of Uzbekistan, was sentenced to 27 days in jail on January 18, following their respective guilty pleas to illegally entering the United States.
Rustamov and Ahmedov each admitted that together they walked across the border about four miles west of the Mooers Port of Entry a few minutes after midnight on the morning of December 30, 2017. They were arrested together as they hid in the woods approximately one hour after they crossed the border.
Citizen of Mali Sentenced For Illegal Entry
Hacim Oumar Idar Rachid, age 28, of Mali, was sentenced on January 16 to 30 days in jail, following his guilty plea to illegally entering the United States.
Rachid admitted that he walked across the border without inspection two miles west of the Champlain Port of Entry on December 29, 2017. He was arrested by Border Patrol Agents as he was being driven away from the border.
Citizen of Romania Sentenced For Illegal Entry
Dan-Stefan Cirpaci, age 29, of Romania, was sentenced on January 25 to 30 days in jail, following his guilty plea to illegally entering the United States from Canada.
Cirpaci admitted that he crossed the border approximately one mile west of the Churubusco Port of Entry on January 2. He was found and arrested by Border Patrol Agents as he was trying to leave the border area. Cirpaci was a passenger in a car that was stopped by Border Patrol near the border.
Citizen of Haiti Sentenced For Illegal Entry
Idoinien Saint Fleur, age 44, of Haiti, was sentenced on January 25 to time served (51 days in jail) and to pay a $500 fine, following his guilty plea to illegally entering the United States from Canada.
Saint Fleur admitted that he crossed the border approximately one-quarter mile east of the Champlain Port of Entry on December 5, 2017. He was found and arrested by Border Patrol Agents as he was trying to leave the border area.
Citizen of Canada Sentenced For Illegal Entry
Sebastien Cote-Champagne, age 31, of Canada, was sentenced on February 6 to 42 days in jail, following his guilty plea to illegally entering the United States from Canada.
Cote-Champagne admitted that he crossed the border approximately 1.5 miles west of the Champlain Port of Entry on January 23. He was found and arrested by Border Patrol Agents as he was walking south away from the border.
Citizen of Romania Sentenced For Illegal Entry
Ciuciu Ximena, age 42, of Romania, was sentenced on February 6 to 20 days in jail and to pay a $2,500 fine, following her guilty plea to illegally entering the United States from Canada.
Ximena admitted that she crossed the border approximately one-half mile west of the Rouses Point Port of Entry on January 25. She was found and arrested by Border Patrol Agents as she walked south toward a waiting car.
Two Citizens of Guatemala Sentenced For Illegal Entry
Amilcar Tuch-Xinico, age 26, of Guatemala, was sentenced to 15 days in jail and Jose Morales-Zet, age 21, of Guatemala, was sentenced to 22 days in jail on February 13, following their respective guilty pleas to illegally entering the United States.
Tuch-Xinico and Morales-Zet each admitted that together they walked across the border about two miles west of the Champlain Port of Entry on February 1. They were arrested together as they walked south away from the border.
Three Citizens of Guatemala Sentenced For Illegal Entry
Gelber Cacacil-Perez, age 22, Eddy Chonoy-Chonoy, age 28, and Elvidio Mendoza-Tino, age 28, all of Guatemala, were each sentenced on February 15 to 20 days in jail, following their respective guilty pleas to illegally entering the United States.
Cacacil-Perez, Chonoy-Chonoy, and Mendoza-Tino each admitted that together they walked across the border without inspection two miles west of the Champlain Port of Entry on February 1. Chonoy-Chonoy and Mendoza-Tino were arrested by Border Patrol Agents as they were walking south away from the border. Cacacil-Perez was arrested the next day in Plattsburgh, New York, approximately 25 miles south of the border.
Citizens of Haiti Sentenced For Illegal Entry
Louiguenson Charles, age 30, of Haiti, was sentenced on February 20 to time served (13 days in jail) following his guilty plea to illegally entering the United States. Charles admitted that on February 8, he entered the United States by walking through the woods from Canada.
Jean Sanon, age 31, of Haiti, was sentenced on February 20 to time served (13 days in jail) following his guilty plea to illegally entering the United States. Sanon admitted that on February 8, he entered the United States by walking through the woods from Canada.
Citizen of Jamaica Sentenced For Illegal Entry
Dwayne Berry, age 33, of Toronto, Canada, was sentenced on February 22 to 60 days in jail, following his guilty plea to illegally entering the United States from Canada.
Berry, a citizen of Jamaica, admitted that he crossed the border approximately three miles west of the Trout River Port of Entry on February 2. He was found by Border Patrol Agents performing inspection duties on a bus in Massena, New York. Berry was inadmissible to the United States due to his Canadian criminal history.
Two Citizens of India Sentenced For Illegal Entry
Surinder Singh, age 43, of India, and Anil Singh, age 27, of India, were each sentenced on February 23 to time served (4 days in jail), following their respective guilty plea to illegally entering the United States from Canada.
Surinder Singh admitted that he crossed the border approximately five miles east of the Massena Port of Entry on February 18. He was found and arrested by Border Patrol Agents as he was leaving the border area as a passenger in a taxi. Anil Singh admitted that he crossed the border approximately three miles east of the Massena Port of Entry on February 18. He was found and arrested by Border Patrol Agents as he was leaving the border area as a passenger in a car.
Minneapolis Man Sentenced to Nine Years in Prison for Tax Fraud ConspiracyRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of HASSAN OSMAN, 52, to 108 months in prison for conspiracy, tax fraud and failing to appear on the day of trial. OSMAN was found guilty on September 21, 2017, following a four-day trial, on one count of conspiracy, 13 counts of aiding and assisting in the preparation of a false tax return, and one count of unlawful flight from prosecution. OSMAN was sentenced earlier today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn.
“Mr. Osman and his co-conspirators viewed the IRS not as a tax collection agency, but a way to generate illicit revenue. They filed 100 fraudulent tax returns claiming nearly $1 million in fraudulent tax refunds,” said Assistant U.S. Attorney Joe Thompson. “Today’s sentence underscores the seriousness of Mr. Osman’s crimes and his complete lack of remorse for his actions.”
“As we are in the midst of tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced by the 108 month sentencing today of Hassan Osman,” said Hubbard Burgess, Acting Special Agent in Charge of the St. Paul Field Office. “Today's sentencing of Mr. Osman again emphasizes that IRS Criminal Investigation and the U.S. Attorney’s Office will continue their aggressive pursuit of those who would attempt to defraud America's tax system.”
As proven at trial, between January 2008 and April 2011, OSMAN and his co-conspirators devised and carried out a tax fraud scheme by filing false federal income tax returns claiming fraudulent refunds. OSMAN and his co-conspirators prepared fraudulent tax returns using fake W-2s created in the name of several front companies. Most of the returns were filed electronically, either from coffee shops or from a business in south Minneapolis owned by OSMAN. The resulting refunds were split among OSMAN and his co-conspirators. Often times, the fraudulent refunds were deposited onto prepaid debit cards and sent to addresses controlled by OSMAN or his co-conspirators. During the course of the conspiracy, OSMAN and his co-conspirators filed more than 90 income tax returns claiming approximately $1,012,877 in fraudulent tax refunds.
As proven at trial, OSMAN was arrested on April 17, 2015 and was later released on bond pending trial. On July 28, 2015, when OSMAN failed to appear for a court ordered pretrial conference, a warrant was issued for his arrest. On April 14, 2016, OSMAN was arrested in Toronto, Canada and later extradited back to the United States to face trial.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
This case was prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and Michelle E. Jones.
Defendant Information:
HASSAN OSMAN, 52
Minneapolis, Minn.
Convicted:
- Conspiracy, 1 count
- Aiding and assisting in the preparation of a false tax return, 13 counts
- Failure to appear, 1 count
Sentenced:
- 108 months in prison
- Three years of supervised release
- $394,120.14 in restitution
# # #
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Married Couple, Son, and Accomplice Convicted of Defrauding Medicare, Medicaid and TriCareRead the Press Release
Jackson, TN – Following a three-week trial, a federal jury has convicted a married couple and their son, of health-care fraud offenses that led to millions of dollars lost to federal health care programs. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the convictions today.
Sandra Bailey, 67 of Jackson, Tenn., was convicted of 16 counts, including conspiracy, health care fraud, and paying illegal kickbacks in connection with health care services. Her husband, Calvin Bailey, 67, was convicted of conspiracy. Their son, Bryan Bailey, 39, of Milan, Tenn., was convicted of conspiracy and wire fraud. The jury returned guilty verdicts on all 17 counts alleged in the indictment.
U.S. Attorney D. Michael Dunavant said: "Dishonest criminals are using more creative and disturbing fraudulent schemes to victimize vulnerable citizens and the American taxpayers for their own selfish gain. This case represents our commitment to expose these fraudulent schemes, protect the integrity of the Medicaid system, hold offenders accountable for their dishonest criminal conduct, and to recover ill-gotten proceeds on behalf of the government. The U.S. Attorney’s Office is willing and able to go to any lengths in our pursuit of justice in healthcare fraud cases."
Evidence at trial revealed Sandra Bailey and Calvin Bailey sold durable medical equipment including power wheelchairs and back braces. From November 2009 to September 2011, they were both employed at Jaspan Medical Systems ("Jaspan"), a durable medical equipment company with an office in Jackson, Tenn. Durable medical equipment is designed for repeated use and legitimate medical purposes. Following their employment at Jaspan, the couple was employed by other medical supply companies in West Tennessee, Kentucky and Mississippi. Calvin Bailey is also the former principal at Medina Elementary School in Medina, Tenn. Bryan Bailey was the operations and sales manager at Jaspan from October 2009 to July 2013.
While employed at Jaspan, the Baileys began to market wheelchairs to patients and represented them as paid fully by Medicare, and at no cost to the patients. To market the equipment, the Baileys used an extensive network of illegally paid recruiters to find eligible patients. After finding the patients, Sandra and Bryan Bailey would forge and falsify documents to make it appear that the patients qualified for the equipment. They also enlisted a local physician and nurse practitioner to order the equipment without the required physical examinations to determine if the equipment was medically necessary. To facilitate this scheme, Sandra Bailey paid illegal kickbacks to the medical providers.
Numerous patients testified that Sandra Bailey offered the equipment at no cost, and that they never saw the doctor or nurse practitioner before the Baileys delivered the back braces and power wheelchairs. Many also testified that they never used the power wheelchairs, and that the power wheelchairs were too large to be used in their homes. Even though most of the patients could walk, drive vehicles, and care for themselves without the need for a power wheelchair, the Baileys would falsify medical records to make it appear that the patients were qualified. In order to qualify the patients to receive the equipment at no cost, Bryan Bailey falsified and directed others to falsify patients’ income and expenses to make it appear that they were indigent.
In 2010, Bryan Bailey expanded Jaspan’s sales into North Mississippi, and hired a sales representative named Dennis Sensing to sell power wheelchairs. Sensing paid illegal kickbacks to patient recruiters to find Medicare and Medicaid patients. Bryan Bailey received sales commissions for the power wheelchairs sold by Sensing. In order to bill Medicare and Medicaid for the equipment, Sensing forged the signature of a nurse practitioner with Bryan Bailey’s knowledge. Bryan Bailey directed Sensing to falsify patients’ income and expenses to make it appear that they were indigent. Sensing sent via facsimile the forged and falsified documents to Bryan Bailey, who caused the claims to be submitted for payment. Sensing, who previously pleaded guilty to conspiracy to commit healthcare fraud and pay illegal kickbacks, testified in the government’s case.
"This type of criminal activity speaks to the core of why the Tennessee Bureau of Investigation began its Medicaid Fraud Control Unit," said Director Mark Gwyn. "The Tennessee Bureau of Investigation will continue to pursue those who are defrauding the Medicaid system and taking advantage of vulnerable Tennesseans in need of these services."
"We always appreciate the opportunity to work with multi-state law enforcement agencies to combat healthcare fraud and protect our citizens’ resources and tax dollars," said Jim Hood, Attorney General of Mississippi.
"This verdict sends a strong message; members of the Bailey family each face up to 20 years in prison for crimes costing taxpayers millions of dollars," said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. "We will continue to work with our law enforcement partners to investigate individuals who profit from preying on unsuspecting beneficiaries."
The Baileys caused more than$4 million in billing of power wheelchairs and back braces to be paid by taxpayers. During the time the Baileys worked at Jaspan and the other companies, they received more than $1.2 million in salary and sales commissions.
Sandra Bailey and Bryan Bailey each face up to 20 years in prison and a fine of up to $250,000. Calvin Bailey faces up to five years in prison, and a fine of up to $250,000. There is no parole in the federal system.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General, the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, and the Attorney General’s Office of Mississippi.
Assistant U.S. Attorneys Stuart Canale and Matt Wilson prosecuted this case on the government’s behalf.
Man Sentenced to over Seven Years in Federal Prison for Attempting to Manufacture MethamphetamineRead the Press Release
A man who was manufacturing methamphetamine on his relative’s property was sentenced today to more than seven years in federal prison.
Jason Tooley, age 35, most recently from Lowden, Iowa, and originally from Kentucky, received the prison term after a September 28, 2017, guilty plea to one count of attempt to manufacture methamphetamine.
Information presented at the sentencing hearing showed that in October 2016, Tooley had absconded from state probation. Tooley’s cousin permitted him to live in a shed on her property in Lowden, Iowa. The shed was next to the cousin’s house where her two young children also lived. On October 25, 2016, a deputy sheriff with the Cedar County Sheriff’s Office was investigating a stolen license plate. The deputy saw the license plate on Tooley’s car, which was parked by the shed. When Tooley saw the deputy, he locked the shed and fled into the nearby woods. Deputies returned later and arrested Tooley. On October 26, 2017, deputies executed a search warrant for Tooley’s car and shed and recovered methamphetamine, chemical by-products from the “one-pot” methamphetamine manufacturing process, and various other materials for manufacturing methamphetamine. Tooley had been purchasing pseudoephedrine for manufacturing methamphetamine for several years, continuing up until the time of his arrest.
Tooley was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. He was sentenced to 85 months’ imprisonment. Tooley must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Tooley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by Cedar County Sheriff’s Office, the Muscatine County Drug Task Force, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-62.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to Two Years in Prison for Conspiracy to Commit Tax Return Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A man was sentenced today to a total of 25 months in prison for his role in a $290,000 income tax return fraud conspiracy and for violation of his supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Walter Fabian Guzman, 39, of Pahrump, Nevada, previously pleaded guilty to one-count of conspiracy to defraud and one-count of violation under supervision. United States District Judge Kent J. Dawson also ordered him to pay restitution in the amount of $290,364 to the victims.
According to the plea agreement, Guzman admitted that, from January 1, 2010 to August 9, 2010, he conspired with co-defendants Felix Guzman and Judas Godina to defraud the IRS by submitting false income tax returns for customers. Guzman recruited customers by telling them that he could generate large returns on their individual income tax returns. In furtherance of the scheme, Guzman and others submitted false W-2 forms which reported additional income and withholdings, and Schedule E forms which falsely reported business losses.
The case was investigated by the IRS-Criminal Investigations. Assistant U.S. Attorney Kathryn Newman prosecuted the case.
###
Man Sentenced to Life in Prison for Violent CrimesRead the Press Release
SAN JUAN, P.R. – Today, U.S. District Court Judge Pedro A. Delgado sentenced Luis Javier Correa-Figueroa, a.k.a. “Barney/Gordo” to life imprisonment for firearm offenses, a controlled substance offense, assaulting federal officers, and willfully injuring property of the United States, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The DEA, FBI, and Puerto Rico Police Department Strike Force Unit were in charge of the investigation of this case.
On April 4, 2017, Correa-Figueroa was found guilty by a jury of 16 counts, including: being a convicted felon in possession of a firearm; illegal possession of a machinegun; possession of a firearm in furtherance of a drug trafficking crime; possession of a machinegun in furtherance of a drug trafficking crime; three counts of willfully injuring property of the United States; eight counts of assault upon a federal officer; and one count of attempt to possess cocaine with intent to distribute.
During trial, the government proved that on July 7, 2015, Correa-Figueroa intended to exchange two firearms in his possession for cocaine. The exchange was to occur at the Plaza Guaynabo Shopping Center in the area of the parking lot. After receiving confirmation the defendant was in possession of the two firearms (one of which was modified to fire in a fully automatic mode), DEA agents intervened with the defendant to execute the arrest. Correa-Figueroa drove away, in an attempt to flee from law enforcement. He was ultimately apprehended at the scene. Correa-Figueroa’s actions resulted in the damage to three parked civilian vehicles and three official government vehicles.
The case was prosecuted by Assistant United States Attorneys Vanessa Bonhomme and Maria Montañez.
# # #
Man Sentenced to Federal Prison for Meth-Distribution ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced February 27, 2018, to 10 years in federal prison.
Delbert Raymond Lane, age 40, of Nora Springs, Iowa, received his prison term after a November 13, 2017, guilty plea to conspiracy to distribute methamphetamine.
Lane admitted his involvement in a conspiracy to distribute methamphetamine in North Central Iowa between 2014 and April of 2017. During this time frame, Lane was receiving ounces of high purity methamphetamine and breaking them into smaller quantities for resale. In August 2016, Lane sold an eighth of an ounce of methamphetamine to a confidential informant in Mason City. On November 23, 2016, defendant was in possession, with intent to deliver, approximately 43 grams of 96% pure methamphetamine. Lane sold methamphetamine in various quantities, up to ounces.
Lane sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Lane was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Lane is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force and the Cerro Gordo County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3048. Follow us on Twitter @USAO_NDIA.
Man Pleads Guilty to Lying to FBI about Fraudulent BP Oil Spill ClaimRead the Press Release
U.S. Attorney Duane A. Evans announced that JETTY HUI, age 44, a resident of New Orleans, pleaded guilty to one count of lying to the FBI, in violation of 18 U.S.C. § 1001(a)(2). The guilty plea was taken before United States District Judge Nannette Jolivette Brown.
According to the bill of information, JETTY HUI was a business owner of Cabinets and Countertops Direct. After the April 20, 2010, Deepwater Horizon explosion, HUI submitted documentation of losses to his business to the Deepwater Horizon Oil Spill Trust. Those losses were fraudulent and were only submitted to facilitate a refund. On December 2, 2010, HUI received approximately $72,500 in funds. In May, 2012, HUI knowingly and willfully made false, fictitious, and fraudulent material statements and representations regarding the veracity of his claim for those funds, indicating to the FBI that the losses were real, when in fact they were not.
HUI faces a maximum term of imprisonment of five (5) years, a fine of up to $250,000.00, three (3) years supervised release after imprisonment, and a mandatory $100 special assessment.
A sentencing hearing is set for June 14, 2018 at 10:00 a.m. before the United Stated District Court Judge Nannette Jolivette Brown. U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr., is in charge of the prosecution.
Man Pleads Guilty in Selma Police Evidence Room Gun Theft CaseRead the Press Release
United States Attorney Richard Moore of the Southern District of Alabama announced that Richard Allen Canterbury, of Valley Grande, entered a guilty plea in federal court to three charges involving weapons stolen from the evidence room at the Selma Police Department. Court documents reflect that Canterbury was implicated in an investigation initiated by the Selma Police Department when officers received information that some items from the evidence room were found at a middle school. Responding officers interviewed Canterbury’s wife, who was employed at the police department as an evidence technician. Because she had access to the evidence room, police concluded that she had taken some property from the evidence room without permission. Subsequently, police received information that Canterbury was selling numerous firearms at a job site near Selma. Police were concerned that the firearms may have come from the evidence room, so they contacted Canterbury. Canterbury was interviewed and admitted his participation in selling numerous firearms provided to him by his wife. He also admitted using social media to advertise firearms for sale. He took some money from the firearm sales back to his wife. Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Alabama Attorney General’ Office were called in to assist in the investigation. Agents recovered approximately 239 guns stolen from a storage unit inside the police evidence. Many firearms have been recovered so far in the investigation. Agents also determined that Canterbury had been convicted of a felony, discharging a firearm into an occupied dwelling, in 1996.
United States District Court Judge Kristi K. Dubose accepted Canterbury’s guilty plea to the charges of possession of firearms by a convicted felon, possession of firearms with an obliterated serial number and selling firearms without a federal license. He faces a penalty of up to 10 years on the first charge, and up to 5 years on each of the next two; a fine of up to $250,000; a three-year term of supervised release following any sentence of imprisonment; and a special mandatory assessment of $300. Canterbury’s sentencing is set for July 27, 2018. He remains under conditions of release pending the imposition of sentence.
The federal case was investigated by the Alabama Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigations. Assistant United States Attorney Gloria Bedwell prosecuted the case for the United States Attorney’s Office.
Local Man Gets 25 Years for Child Pornography ConvictionsRead the Press Release
GALVESTON – A 37-year-old Galveston sex offender has been ordered to federal prison following his conviction for distribution and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Adam Vargas pleaded guilty April 21, 2017.
Today, Judge George C. Hanks ordered Vargas to serve 300 months in prison for the distribution charge and 240 months in prison for the possession charge to run concurrently. Vargas was further ordered supervised release for life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. In imposing the sentence, the court noted his prior conviction of two counts of aggravated sexual assault against a minor.
Vargas came to the attention of law enforcement after investigators found evidence he was uploading child pornography to his DropBox account. A search warrant was executed on Vargas’ residence on Sep. 24, 2015, at which time investigators found the cellphone he used to upload and store the child pornography. During a forensic examination on that phone, agents found more than 2,000 images and 1,100 videos of child pornography. This was in addition to the numerous images and videos of child pornography found in his DropBox account.
The FBI and the Galveston Police Department conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lincoln County Man Convicted by Jury of Drug Trafficking and Firearm OffensesRead the Press Release
LEXINGTON, Ky. — A federal jury in Lexington has found William J. Hampton, of Lincoln County, Kentucky, guilty of possession with intent to distribute 50 grams or more of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. The jury convicted Hampton on Tuesday, February 27, 2018, following a 2-day trial in U.S. District Court.
According to trial testimony, officers stopped Hampton after observing him driving a vehicle with no taillights and a flat tire. Hampton falsely identified himself during the stop and attempted to flee, leading officers on an approximately 3-mile pursuit down U.S. highway 27 in Lincoln County, Kentucky. After apprehending Hampton, officers located approximately 120 grams of methamphetamine and a .40 caliber Smith and Wesson pistol in the front passenger area of the vehicle. Hampton is a convicted felon and prohibited from possessing a firearm.
The sentencing hearing is currently scheduled for June 8, 2018, at the federal courthouse in Lexington. Hampton faces a minimum mandatory sentence of not less than 10 years nor more than life imprisonment on the drug offense. Because the jury also convicted Hampton of possessing a firearm in furtherance of the drug trafficking crime, Hampton also faces a minimum mandatory sentence of 5 years consecutive to any sentence imposed for the drug offense. The Court, however, will impose sentence after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowery, Special Agent in Charge, ATF; Chief Zachary Middleton, Stanford Police Department; and Sheriff Curt Folger, Lincoln County Sheriff’s Department, jointly announced the jury’s verdict.
ATF, Stanford Police Department, and Lincoln County Sheriff’s Department conducted the investigation. Assistant United States Attorneys Lauren Tanner Bradley and Ron Walker represented the United States in the case. The case is part of the Project Safe Neighborhoods (PSN) Program, a Department of Justice initiative to reduce violent crime through partnerships between federal, state, and local law enforcement. The goal of the PSN Program is to use these partnerships to make communities safer.
Justice Department Statement on Claims of NIJ Certification of Ballistic BackpacksRead the Press Release
Please attribute the following statement to Justice Department spokesman Devin O'Malley:
"The National Institute of Justice—the research, development, and evaluation agency of the Department of Justice—has never tested nor certified ballistic items, such as backpacks, blankets, or briefcases, other than body armor for law enforcement. Marketing that claims NIJ testing or certification for such products is false."
Background:
In recent days, multiple media outlets have repeated misleading statements made by companies about "NIJ certification" of their ballistic backpack products.
Additional Background:
The only ballistic-resistant product that NIJ certifies is law enforcement body armor that meet the requirements of NIJ’s Compliance Testing Program (CTP), which are then listed on NIJ’s Compliant Products List. Testing body armor involves a technically rigorous test campaign that must be carried out by one of four laboratories that are accredited by the National Voluntary Laboratory Accreditation Program and approved by NIJ to participate in the CTP. The protocols and procedures are described in the current NIJ performance standard NIJ Standard 0101.06, Ballistic Resistance of Body Armor. In addition, NIJ offers many informational resources on law enforcement body armor at policearmor.org.
Justice Department Statement on Claims of NIJ Certification of Ballistic BackpacksRead the Press Release
"The National Institute of Justice—the research, development, and evaluation agency of the Department of Justice—has never tested nor certified ballistic items, such as backpacks, blankets, or briefcases, other than body armor for law enforcement. Marketing that claims NIJ testing or certification for such products is false," said Justice Department spokesman Devin O’Malley.
In recent days, multiple media outlets have repeated misleading statements made by companies about "NIJ certification" of their ballistic backpack products.
The only ballistic-resistant product that NIJ certifies is law enforcement body armor that meet the requirements of NIJ’s Compliance Testing Program (CTP), which are then listed on NIJ’s Compliant Products List. Testing body armor involves a technically rigorous test campaign that must be carried out by one of four laboratories that are accredited by the National Voluntary Laboratory Accreditation Program and approved by NIJ to participate in the CTP. The protocols and procedures are described in the current NIJ performance standard NIJ Standard 0101.06, Ballistic Resistance of Body Armor. In addition, NIJ offers many informational resources on law enforcement body armor at policearmor.org.
Justice Department Statement on Claims of NIJ Certification of Ballistic BackpacksRead the Press Release
Please attribute the following statement to Justice Department spokesman Devin O'Malley:
"The National Institute of Justice—the research, development, and evaluation agency of the Department of Justice—has never tested nor certified ballistic items, such as backpacks, blankets, or briefcases, other than body armor for law enforcement. Marketing that claims NIJ testing or certification for such products is false."
Background:In recent days, multiple media outlets have repeated misleading statements made by companies about "NIJ certification" of their ballistic backpack products.
Additional Background:
The only ballistic-resistant product that NIJ certifies is law enforcement body armor that meet the requirements of NIJ’s Compliance Testing Program (CTP), which are then listed on NIJ’s Compliant Products List. Testing body armor involves a technically rigorous test campaign that must be carried out by one of four laboratories that are accredited by the National Voluntary Laboratory Accreditation Program and approved by NIJ to participate in the CTP. The protocols and procedures are described in the current NIJ performance standard NIJ Standard 0101.06, Ballistic Resistance of Body Armor. In addition, NIJ offers many informational resources on law enforcement body armor at policearmor.org.