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22 February 2018
Vidalia man pleads guilty to cocaine distributionRead the Press Release
ALEXANDRIA, La. – United States Attorney Alexander C. Van Hook announced that a Vidalia man pleaded guilty Tuesday to possession with intent to distribute cocaine.
Demond Fleming, 40, Vidalia, La., pleaded guilty before U.S District Judge Dee D. Drell to one count of possession with intent to distribute cocaine. According to the guilty plea, law enforcement agents noticed Fleming parked in the middle of Concordia Park Drive in Vidalia on July 11, 2017. Agents searched his car and found 82.18 grams of cocaine, two hydrocodone pills and $4,751. They also discovered that he was on supervised release for a previous drug conviction.
Fleming faces 20 years in prison, three years of supervised release and a $1 million fine. The court set a sentencing date of May 18, 2018.
The DEA and Louisiana State Probation and Parole conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. is prosecuting the case.
Vermont Man Pleads Guilty to Child Sexual OffensesRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced that Joseph Norko, 50, of Saint Johnsbury, Vermont, pleaded guilty today to two counts of attempted online enticement and one count of interstate travel with intent to engage in illicit sexual activity.
According to court documents and statements made in court, Norko’s charges were based on two online undercover investigations. One investigation was conducted by the Portsmouth Police Department and one was conducted by the Lebanon Police Department. In July of 2017, the defendant responded to an online advertisement posted by a Portsmouth police officer purporting to offer sex with a 12-year-old girl. In September of 2017, he responded to an online advertisement posted by a Lebanon police officer purporting to be a 15-year-old girl. The defendant then traveled from Vermont to New Hampshire in order to engage in sexual contact with the person he thought was 15 years old.
A sentencing hearing has been scheduled for June 1, 2018.
“The United States Attorney’s Office is committed to working with our law enforcement partners to protect the children of the Granite State,” said Acting U.S. Attorney Farley. “This case is yet another example of the dangers that lurk on the Internet. I am grateful to the law enforcement officers whose work led to the conviction of this Internet predator.”
“Online exploitation of children is one of the most disturbing crimes we investigate. It’s always very satisfying when our close coordination with our federal and state partners successfully brings the predators who engage in this behavior to justice,” said Michael Shea, Acting Special Agent in Charge, for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Lebanon Police Department, the Portsmouth Police Department, and the New Hampshire Internet Crimes Against Children Task Force, which includes members of several other police departments. The case is being prosecuted by Assistant U.S. Attorney Georgiana Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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United States Citizens and Illegal Aliens Sentenced for Involvement in Brevard Marriage Fraud RingRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced three individuals for their involvement in a marriage fraud ring operating out of Brevard County. William Matthew Tex Price (31, Cocoa) was sentenced to two years in federal prison for marriage fraud to run concurrent to a two-year sentence for possessing a firearm as a convicted felon. Maria Rogacheva (28, Russia) was sentenced to 5 months’ imprisonment and Khagan Mushfig Oglu Nabili (24, Azerbaijan) was sentenced to time served.
According to court documents, in October 2015, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations worked with the Brevard County Clerk of the Court to investigate a significant surge in the number of aliens from Uzbekistan, Kazakhstan, Kyrgyzstan, and other former Soviet countries marrying U.S. citizens in Brevard County. This led to the arrest of Denis Yakovlev (40, Russia) and Meghan Toole (28, Cocoa) on July 13, 2016.
After his arrest, Yakovlev admitted to introducing approximately 100 individuals to each other over an 18-month period for the purpose of them entering into sham marriages for immigration benefits. Yakovlev claimed that his payment ranged from $1,000 to $2,000 per sham marriage, and that the American citizens were paid between $10,000 and $20,000 each.
Yakovlev “employed” Price, who recruited at least 20 U.S. citizens to participate in the scheme. In August 2015, Price recruited a U.S. citizen to enter into a sham marriage with Nabili. The citizen then filed an immigration petition on Nabili’s behalf in an attempt to obtain lawful status for him. The following month, Price recruited his ex-wife, Toole, to enter into a sham marriage with Bakhramovich Yadigarov (26, Uzbekistan). Toole filed an immigration petition on Yadigarov’s behalf in an attempt to gain lawful status for him.
Price also engaged in fraudulent marriages with Maria Rogacheva and Svetlana Vladimirovna Shakhramanyan (28, Azerbaijan). Rogacheva attempted to avoid prosecution by filing a lengthy petition falsely claiming to be a battered spouse based on her sham marriage to Price. She later admitted that she had not entered into the marriage in good faith, she had never lived with Price as husband and wife, and she had never been battered by Price.
“These criminals defrauded the government and undermined the integrity of our nation’s legal immigration system” said HSI Special Agent in Charge James C. Spero. “This case should send a clear message that we will continue to target those who try to circumvent our nation’s immigration laws.”
Denis Yakovlev (40, Russia) and Meghan Toole (28, Cocoa) previously pleaded guilty for their involvement in this conspiracy. In November 2016, Yakovlev was sentenced to 15 months’ imprisonment for encouraging or inducing an alien to reside in the United States, and Toole was sentenced to 4 months’ imprisonment for marriage fraud.
April Coleen Moore (24, Satellite Beach) pleaded guilty on January 2, 2018, for her sham marriage to Valriy Tsoy (33, Kazakhstan). Her sentencing hearing is on March 23, 2018. Tsoy, Yadigarov, and Shakhramanyan are set for trial in May 2018.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Enforcement and Removal Operations, U.S. Citizenship and Immigration Services - Fraud Detection and National Security Directorate, the Brevard County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Special Assistant U.S. Attorney Christina R. Downes who is on assignment from the Office of the Principal Legal Advisor, ICE.
United States Attorney’s Office for the Eastern District of North Carolina Collects over $12 Million in Civil and Criminal Actions in Fiscal Year 2017, and $4.8 Million in Asset Forfeiture ActionsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced today that his office collected over $12 million in criminal and civil actions in fiscal year 2017. Of this amount, $7,115,289.63 was collected in criminal actions and $5,008,219.81 was collected in civil actions.
The Eastern District of North Carolina also collaborated with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $581,492.70. Of this amount, $59,927.77 was collected in criminal actions and $521,564.93 was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in fiscal year 2017.
In the past fiscal year, the Eastern District of North Carolina has returned millions of dollars to crime victims. For example, in United States v. William Larry Rogers, over $695,000 was recovered in victim restitution. Additionally, in United States v. Ronald Doerrer, over $550,000.00 was recovered for victims of the defendant’s criminal conduct.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. For example, in United States v. James Taggart, $995,000.00 was recovered for the Health and Human Services’ Center for Medicare & Medicaid Services. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Internal Revenue Service, Small Business Administration and Department of Education.
“We will use every tool in our arsenal to aggressively collect victim restitution and criminal fines, and recover taxpayer dollars lost to fraud and owed to government agencies,” said Mr. Higdon. “We are proud of the men and women in our office who have worked so hard to ensure justice through their collection efforts. They are to be congratulated for their tremendously successful efforts.”
The U.S. Attorney’s Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to the victims of federal crimes. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in the Eastern District of North Carolina, working with partner agencies and divisions, collected $4,800,593.00 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. Mr. Higdon stated, “asset forfeiture serves an important law enforcement interest, and we will continue to aggressively forfeit instrumentalities and fruits of criminal conduct.”
U.S. Attorney’s Office for Eastern District of Tennessee Supports Justice Department Initiative to Protect Elders from Fraud and AbuseRead the Press Release
KNOXVILLE, Tenn. – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than 250 defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Although not directly involved in today’s national sweep, the U.S. Attorney’s Office for the Eastern District of Tennessee fully supports this initiative,” said U.S. Attorney J. Douglas Overbey. “Protecting our seniors has been, and will continue to be, a top priority of our office. Working with our local, state and federal law enforcement partners, we will investigate and build cases for successful prosecution of these individuals who choose to victimize some of our most vulnerable citizens. I encourage everyone to speak out and tell someone if he or she has been a victim of elder abuse or financial fraud. Please do not remain silent,” added U.S. Attorney Overbey.
In the Eastern District of Tennessee, two individuals were recently sentenced for their roles in a conspiracy to commit mail and wire fraud against elderly victims. In July 2017, Christy A. Greider, 40, and Jason A. Greider, 42, both of Huber Heights, Ohio, were sentenced in U.S. District Court in Knoxville to serve 33 and 27 months respectively in federal prison.
Christy Greider worked as the bookkeeper for M-3 Construction, Inc., located in Oak Ridge, Tennessee. She also helped the company’s elderly owners keep track of their personal finances. Christy and Jason Greider made unauthorized purchases totaling more than $350,000 using the company’s and its elderly owners’ personal credit cards. Some of these unauthorized purchases included a boat, pool, furniture, and a trip to Hawaii.
These charges and subsequent guilty plea and sentencing were the results of a cooperative investigation by the Oak Ridge Police Department and FBI. Assistant U.S. Attorney Kelly A. Norris represented the United States in the court proceedings.
In another case in U.S. District Court in Chattanooga, John Allen Morris, Jr., 51, of Knoxville, Tennessee, was sentenced to serve 36 months in federal prison and ordered to pay over $1.2 million in restitution to identified victims of his offenses, for wire fraud, mail fraud, bank fraud, and wrongful use of a government seal.
Morris was employed as an insurance and annuities broker with a legitimate insurance company. His scheme to sell fraudulent annuities to elderly clients began in late 2006 when he established two fictitious companies and convinced elderly clients to cash out legitimate annuities and invest their money with those companies, promising a higher rate of return. He created and provided his clients with imaginary elaborate and personalized financial statements reflecting the supposed status of their accounts. Establishing multiple accounts at various banks, Morris would deposit investment checks from his clients, and later use these funds to pay off initial investors in a Ponzi-like scheme, as well as pay personal bills, buy material items for himself and his family and invest himself in his own ventures. These schemes included a Lamborghini car kit selling enterprise and “Football Tech,” a company created to train high school football players by attempting to attract prominent former NFL players and coaches into contributing to camps for kids based on Morris’s claims of his own football coaching expertise.
A cooperative investigation by the FBI, U.S. Postal Inspection Service, and Tennessee Department of Commerce and Insurance lead to the indictment, guilty plea and subsequent sentencing of Morris. Assistant U.S. Attorney Steve Neff represented the United States in court proceedings.
Although not as recent as the other two referenced cases, Mark Kevin Tudor, 42, of Knoxville, Tennessee was sentenced in 2014 to serve 36 months in federal prison and pay $266,227.80 in restitution for federal wire fraud charges.
An investigation by the Knoxville Police Department and U.S. Postal Inspection Service determined that Tudor abused a position of trust after having been granted a power-of-attorney by his 93-year-old great aunt, who suffered from a visual disability and needed assistance with her financial affairs. Without his great aunt’s permission or authority, Tudor systematically depleted her bank and credit union account and life insurance policy. In total, Tudor stole over $267,000 before the fraud was discovered, which nearly depleted her life savings. According to a written statement read by his great aunt in court, when the she discovered the fraud only $347 remained in her credit union account, which held over $200,000 before the theft. Assistant U.S. Attorney Matthew Morris represented the United States in court proceedings for this case.
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.
For the full-version of the Department’s release on today’s national sweep click here: https://www.justice.gov/opa/pr/justice-department-coordinates-nationwide-elder-fraud-sweep-more-250-defendants
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U.S. Attorney Mike Stuart to hold press conference today regarding indictmentRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart will hold a press conference at 2:00 p.m. today announcing an indictment.
WHO: Michael B. Stuart, United States Attorney, Southern District of West Virginia
FBI Officials
West Virginia Legislature Commission on Special Investigations Officials
Other Law Enforcement Officials
WHAT: Press Conference
WHEN: Thursday, February 22, 2018, at 2:00 p.m.
WHERE: Robert C. Byrd United States Courthouse
300 Virginia Street, East
Charleston, WV 25301
United States Attorney’s Office
4th Floor, Suite 4000
- Follow us on Twitter: SDWVNews and USAttyStuart
Two Sentenced for Conspiracy to Sexually Exploit a ChildRead the Press Release
United States Attorney Trent Shores announced today that District Judge Claire V. Eagan sentenced Chance Tyler Hood, 20, of Sapulpa, to serve 180 months in federal prison and Kristina Jean Koehn, 29, of Hominy, to serve 240 months in federal prison for Conspiracy to Sexually Exploit a Child.
Koehn took sexually explicit pictures of her 4-year-old daughter by cell phone and then distributed the images by text message to Hood.
United States Attorney Shores stated, “This office will aggressively prosecute defendants who victimize those who cannot protect themselves and, as in this case, are in the hands of those who exploit them. We are thankful for the hard work of the Sapulpa Police Department, Osage County Sheriff’s Department, and the Federal Bureau of Investigation for joining together to fight child sexual exploitation.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The prosecution resulted from an investigation conducted by the Federal Bureau of Investigation, the Sapulpa Police Department, and the Osage County Sheriff’s Department. Assistant United States Attorney Shannon B. Cozzoni handled the prosecution of this case.
Two More Defendants Sentenced and One More Pleads Guilty to Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the ATF concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 85 of these defendants have been convicted, including 84 who have entered guilty pleas, and 64 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Today, two more Albuquerque residents were sentenced for their convictions on drug trafficking charges in federal court. Anthony Barela, 34, was sentenced to 60 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction. Chere Juarez, 29, was sentenced to 42 months in prison followed by three years of supervised release for her methamphetamine trafficking conviction.
In addition, Albuquerque resident Letitia Toya, 39, entered a guilty plea in federal court in two cases charging her with methamphetamine trafficking and assault on a federal officer. Under the terms of her plea agreement, Toya will be sentenced within the range of ten to twelve years in federal prison followed by a term of supervised release to be determined by the court.
Barela and co-defendants Guajira Maya Lovato, 45, Janet Bowman, 40, and Juan Jose Rivas, 33, were charged by indictment in July 2016, with a methamphetamine trafficking offense. The indictment later was superseded to add a fifth defendant, Maria Citlaly Beltran-Ahumada, 37, and another methamphetamine trafficking charge. The superseding indictment charged the five defendants with conspiring to distribute methamphetamine from June 21, 2016 through Aug. 9, 2016, and with distributing methamphetamine on June 22, 2016. On Aug. 3, 2017, Barela pled guilty to an information charging him with distributing methamphetamine. Lovato pled guilty on July 27, 2017, and was sentenced on Feb. 15, 2018, to 60 months in prison followed by four years of supervised release. Beltran-Ahumada pled guilty on June 9, 2017, and was sentenced on June 26, 2017 to time served. Rivas pled guilty on July 27, 2017, and is scheduled for sentencing on March 8, 2018. The charges against Bowman were dismissed on Aug. 22, 2017.
Juarez and co-defendant David Rayford, 26, were charged in a three-count indictment on June 30, 2016. Rayford and Juarez were charged with distribution of methamphetamine on June 7, 2016, and June 14, 2016, and Rayford was charged individually with being a felon in possession of a firearm on May 27, 2016. On June 19, 2017, Juarez pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. In entering the guilty plea, Juarez admitted that on June 14, 2016, she sold approximately two ounces of methamphetamine to an undercover law enforcement agent. Rayford is currently scheduled for trial in April 2018.
Toya was charged in the following two cases arising out of this operation. The indictment in the first case charged Toya and co-defendant Eugene Fales, 53, in a six-count indictment with methamphetamine trafficking and firearms offenses. The indictment charged Toya and Fales with distributing methamphetamine on May 23, 2016, May 25, 2016, and June 20, 2016, and with conspiring to distribute methamphetamine on May 25, 2016 and June 20, 2016. Toya was charged individually with being a felon in possession of firearms on May 27, 2015, because of her prior felony convictions for possession of a controlled substance, tampering with evidence, aggravated assault on a peace officer and trafficking a controlled substance with intent to distribute. Fales pled guilty on Aug. 14, 2017, and is pending sentencing. The indictment in the second case charged Toya with assaulting a federal officer on July 6, 2016.
During today’s proceedings, Toya pled guilty to Count 3 in the first case charging her with distributing methamphetamine, and to the indictment in the second case. In entering the guilty plea in the first case, Toya admitted that on May 25, 2016, she arranged for the delivery and distributed approximately 45.8 grams of methamphetamine to an undercover law enforcement agent. In pleading guilty in the second case, Toya admitted that on July 6, 2016, she assaulted a federal officer by spitting in the face of a federal officer while being taken into custody. Toya remains in custody pending a sentencing hearing, which has yet to be scheduled.
Fifteen of the defendants charged as the result of the ATF investigation have entered not guilty pleas. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. Two defendants are fugitives and the charges against two defendants have been dismissed.
These cases were investigated by the Albuquerque office of ATF. The case against Barela was prosecuted by Assistant U.S. Attorney Presiliano Torrez, the case against Juarez was prosecuted by Assistant U.S. Attorneys David M. Walsh and Norman Cairns, and the case against Toya is being prosecuted by Assistant U.S. Attorney David M. Walsh.
Two Individuals Plead Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christina Crystal Hernandez, age 37, of Poteau, Oklahoma; and Deana Marie Oakes, age 35, of Panama, Oklahoma, pled guilty to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 or more than life imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on or about August 8, 2017, within the Eastern District of Oklahoma, the defendants, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.The charges arose from an investigation by the Panama City Police Department and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Two Illinois Postal Employees Indicted for Theft and Delay of United States MailRead the Press Release
On February 21, 2018, a federal grand jury for the Southern District of Illinois returned two separate indictments against former United States Postal Service employees who had been employed in Post Offices in Belleville, Illinois, and Godfrey, Illinois, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois.
In the first indictment, Briana N. Burrage, 22, of Belleville, Illinois, was charged with unlawful delay of United States Mail while working as a letter carrier at a Belleville, Illinois Post Office. The indictment alleged that in September of 2017, Burrage, failed to deliver thousands of pieces of United States mail by placing the mail in large trash bags in her personal vehicle over a several week period.
The second indictment charged Amber J. Brawley, 36, of Godfrey, Illinois with theft and embezzlement of United States Mail while working as a postal employee at a Godfrey, Illinois Post Office. The indictment alleged that in August of 2017, Brawley stole items from the United States Mail and converted the contents of the mail for her own use.
Burrage and Brawley both face up to five years of imprisonment and a fine of up to $250,000.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigations were conducted by the United States Postal Service, Office of Inspector General and are being prosecuted by Assistant United States Attorney Ranley R. Killian.
Two Delaware Men Indicted for Sex Trafficking of A Child by Force, Fraud, and CoercionRead the Press Release
February 22, 2018
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury has indicted Steven M. Williams a/k/a “Brother Ray,” a/k/a “Ray”, age 38, and Harry E. Rivers a/k/a “Hakeem,” a/k/a “Pots,” age 28, both of Delaware, for sex trafficking of a child and by force, fraud, and coercion. The indictment was returned on February 21, 2018.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Matthew Donnelly of the Elkton Police Department.
According to the indictment, Williams and Rivers were pimps, engaged in the business of recruiting, enticing, harboring, transporting, providing, obtaining, advertising, and maintaining by any means girls and women to engage in commercial sex acts. In July 2017, a female child, “Girl 1,” was a victim of these crimes. “Girl 1” was a resident of Delaware, had recently completed the eighth grade, and was 15 years old.
Williams and Rivers both face a maximum sentence of life in prison. An initial appearance has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the FBI, the Elkton Police Department, the Newark (Delaware) Police Department, the Wilmington (Delaware) Police Department, the Cecil County Department of Social Services, the Cecil County State's Attorney's Office, and the Delaware Department of Justice for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Patricia McLane and Zachary A. Myers, who are prosecuting the case.
Two Area Men Sentenced to Prison Terms for Conspiracy to Rob Banks in District of Columbia and MarylandRead the Press Release
WASHINGTON – John King Lionell, 26, of Washington, D.C., was sentenced today to 42 months in prison for his role in a conspiracy to rob banks in the District of Columbia and Maryland. A co-defendant, Steve Jamal Smith, also known as Jabrail Love, 23, of Hyattsville, Md., earlier also was sentenced to a 42-month prison term.
The announcement was made by U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, Peter Newsham, Chief of the Metropolitan Police Department (MPD), J. Thomas Manger, Chief of the Montgomery County, Md., Police Department, and Ron Pavlik, Chief of the Metro Transit Police.
Lionell and Smith were found guilty by a jury in November 2017 of conspiracy to commit bank robbery, following a trial in the U.S. District Court for the District of Columbia. Upon completion of their prison terms, each defendant will be placed on three years of supervised release. Smith was sentenced on Feb. 2, 2018, by the Honorable Randolph D. Moss and Lionell was sentenced today.
According to the evidence at trial, on Jan. 26, 2016, at approximately 1:50 p.m., Lionell and Smith entered a BB&T Bank in the 3100 block of 14th Street NW. While inside, they inquired about opening a bank account. A bank employee provided them with a brochure. Both defendants were observed in possession of the brochure. They then walked to a bank teller, and Lionell presented a demand note for money. He also instructed the teller not to press the silent alarm. The teller did not provide the defendants with any money. After not receiving any cash, Lionell told Smith: “Hurry up let’s go! Let’s go!”
At that time, the two men exited the bank together. They then entered the Columbia Heights Metro station and rode Metrorail to the Silver Spring stop.
After exiting the subway station, at approximately 2:40 p.m., Lionell and Smith entered a Capital One Bank in the 8600 block of Georgia Avenue in Silver Spring and approached the teller’s window. This time, Smith displayed a demand note for money to the teller, while Lionell stood next to him. Smith told the teller: “Put your hands up ... Don’t put your hands down.” They did not receive any money at this bank, either, and left the branch.
During the course of the investigation by law enforcement of the bank robbery at the BB&T Bank, the FBI retrieved the bank brochure that the defendants had possessed, and sent it to be further examined for possible fingerprints. A subsequent forensic examination by an FBI fingerprint examiner determined that Smith’s fingerprint were on the brochure. After the identification of Smith from his fingerprint on the BB&T brochure, agents from the FBI were able to identify several witnesses who identified both defendants from bank surveillance photos.
In announcing the sentences, U.S. Attorney Liu, Assistant Director in Charge Vale, Chief Newsham, Chief Manger, and Chief Pavlik commended the work of those who investigated the case from the FBI’s Washington Field Office, the Metropolitan Police Department, the Montgomery County Police Department, and the Metro Transit Police Department. They expressed appreciation for the assistance provided by the FBI Laboratory.
Additionally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Lisa Walters, Paralegal Specialists Jeannette Litz and Teesha Tobias; Legal Assistant Peter Gaboton and Litigation Technology Specialist Claudia Gutierrez. Finally, they commended the work of Assistant U.S. Attorneys Kamilah O. House and Emory V. Cole, who prosecuted the case.
Twentieth Defendant Pleads Guilty to Fraud and Money Laundering Charges Related to Telemarketing EnterpriseRead the Press Release
St. Louis, MO – Timothy Murphy, a/k/a Mr. Black, a/k/a Colby Muhlberg, a/k/a Arthur Whitton, 34, of Phoenix, Arizona, pled guilty to one count of wire fraud in connection with telemarketing and one count of conspiracy to commit money laundering on Thursday, February 22, 2018, before United States Judge John Ross. Sentencing has been set for May 22, 2018. All twenty defendants have now pled guilty in federal court in connection with a multi-count indictment arising from their participation in a fraudulent telemarketing enterprise that often targeted elderly victims.
On November 20, 2017, Michael McNeill, a/k/a Mr. White, a/k/a Todd Lockwood, 48, of Phoenix, Arizona, pled guilty to one count of wire fraud in connection with telemarketing and one count of conspiracy to commit money laundering before United States Judge John Ross. Also on November 20, 2017, Joshua Flynn, a/k/a Mr. Pink, a/k/a Jeff Thomas, 36, of Chandler, Arizona, pled guilty to one count of wire fraud in connection with telemarketing and one count of conspiracy to commit money laundering. Sentencings for both are set for March 6, 2018.
As organized and led by Defendant McNeill and Defendant Flynn, and others, the telemarketing enterprise sold false and fictitious business opportunities as part of a scheme that reached across the United States and Canada and generated in excess of $20,000,000 in fraudulent sales. The Phoenix, Arizona, based telemarketing enterprise operated under multiple business names and utilized multiple business entities over the course of the scheme, including Smart Business Pros LLC of Warson Woods, Missouri. The sophisticated money laundering activity of the telemarketing enterprise and the conspiracy included transfers involving criminal proceeds used for the purchase of gold and silver coins, ultimately distributed to McNeill and Flynn as the owners of the enterprise.
In October 2016, nine individuals were initially indicted. In February 2017, an additional ten individuals were indicted. In July 2017, an additional individual was indicted. All twenty defendants have now pled guilty to one or more offenses arising from the telemarketing enterprise and the scheme to defraud. Multiple defendants have also pled guilty to money laundering offenses.
Ashley Powell, a/k/a Brittany Wilson, 26, of Phoenix, Arizona, pled guilty to one count of wire fraud in connection with telemarketing on January 22, 2018, before United States Judge Audrey Fleissig. Sentencing is set for May 4, 2018.
Dean Miller, a/k/a Jeffrey Wilkes, 44, of Phoenix, Arizona, pled guilty to one count of conspiracy to commit wire fraud; and Michael Silver, a/k/a Michael Wright, 33, of Phoenix, Arizona, pled guilty to one count of conspiracy to commit wire fraud on January 12, 2018, before United States Judge John Ross. Sentencings are set for April 17, 2018.
Scott Shocklee, a/k/a Fredo, 40, of Phoenix, Arizona, pled guilty to one count of conspiracy to commit money laundering on January 4, 2018, before United States Judge John Ross. Sentencing is set for April 10, 2018.
Jason Gallagher, 36, of Gilbert, Arizona, pled guilty to one count of conspiracy to commit wire fraud on December 12, 2017, before United States Judge John Ross. Sentencing is set for April 19, 2018.
Donald Schnock, 34, of Phoenix, Arizona, pled guilty to one count of wire fraud in connection with telemarketing and one count of money laundering on November 17, 2017, before United States Judge John Ross. Sentencing is set for March 1, 2018.
Russell Hibbert, 44, of Phoenix, Arizona, pled guilty to one count of conspiracy to commit wire fraud on November 17, 2017, before United States Judge John Ross. Sentencing is set for March 8, 2018.
Andre Devoe, 43, of Tempe, Arizona, pled guilty to one count of conspiracy to commit wire fraud and Thomas Silhaa/k/a Keith Henderson, a/k/a Dave Marsh, 56, of Phoenix, Arizona, pled guilty to one count of wire fraud in connection with telemarketing on November 4, 2017, before United States Judge John Ross. Sentencing for Andre Devoe has been set for March 14, 2018. Sentencing for Thomas Silha has been set for March 8, 2018.
Shawn Casey, a/k/a Shawn Anderson, a/k/a Daniel Arenson, 41, of Phoenix, Arizona, pled guilty to one count of wire fraud in connection with telemarketing; and Bruce Doll, 52, of Las Vegas, Nevada, pled guilty to one count of wire fraud in connection with telemarketing on August 29, 2017, before United States Judge John Ross. Sentencings have been set for March 7, 2018.
Cybill Osterman, 26, of Scottsdale, Arizona, pled guilty to one count of conspiracy to commit money laundering on August 28, 2017, before United States District Judge John Ross. Sentencing is set for March 7, 2018.
Brian Phillips, 28, of Tempe, Arizona, pled guilty to one count of conspiracy to commit money laundering on August 25, 2017, before United States District Judge John Ross. Sentencing is set for March 7, 2018.
Jennifer Hansen, a/k/a Hailee Randall, 35, of El Mirage, Arizona, pled guilty to conspiracy to commit wire fraud; and John Balleweg, a/k/a Trent Lombardi, 37, of Phoenix, Arizona, pled guilty to one count of conspiracy to commit wire fraud on August 18, 2017, before United States District Judge John Ross. Sentencings have been set for March 8, 2018.
Philip Hale, 37, of Brentwood, Missouri, pled guilty to one count of conspiracy to commit money laundering; and Anthony Swiantek, 40, of Salina, Kansas, pled guilty to one count of conspiracy to commit bank fraud on August 15, 2017, before United States District Judge John Ross. Sentencings have been set for March 14, 2018.
As to Mr. Murphy’s offenses, wire fraud in connection with telemarketing carries a maximum penalty of 30 years in prison, a fine or both. Conspiracy to commit money laundering, carries a maximum penalty of 20 years in prison, a fine or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the United States Postal Inspection Service, IRS Criminal Investigation, the Federal Bureau of Investigation and the Office of the Arizona Attorney General. Assistant United States Attorneys Charles Birmingham and Gwendolyn Carroll are handling the case for the U.S. Attorney's Office.
Texas Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
Gulfport, Miss. – Deandrae Damonn Washington, 33, of Dallas, Texas, pled guilty yesterday before U.S. District Judge Sul Ozerden to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze, Federal Bureau of Investigation (FBI).
On August 20, 2017, Washington’s vehicle was stopped at a checkpoint in Magee, Mississippi. During the stop, officers smelled marijuana emitting from the vehicle, and Washington admitted to smoking marijuana an hour before being stopped. Upon consent being given to search the vehicle, officers located several packages of methamphetamine concealed in a backpack. Washington admitted to knowing the methamphetamine was in the vehicle and conspiring to transport it from Texas to Jackson County, Mississippi. He further admitted that he had previously transported methamphetamine on seven separate occasion to the Gulf Coast. A laboratory analyzed the methamphetamine and determined it had a purity level of 100% and weighed 1,964 grams. A Federal Grand Jury indicted Washington on September 19, 2017.
Washington will be sentenced on June 26, 2018, by Judge Ozerden, and faces a maximum penalty of life in prison and a $10 million fine.
The case was investigated by the Magee Police Department, South Mississippi Metropolitan Enforcement Team, Mississippi Bureau of Narcotics, and the FBI Safe Streets Task Force. The case is being prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Texas Man Pleads Guilty to Marijuana and Cocaine ConspiracyRead the Press Release
Gulfport, Miss. – Juan Luis Cantu a/k/a "Flaco," 24, of La Joya, Texas, pled guilty yesterday before U.S. District Judge Sul Ozerden to conspiracy to possess with intent to distribute 500 grams or more of cocaine and 100 kilograms or more of marijuana, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Special Agent in Charge Stephen G. Azzam.
During the investigation of a drug conspiracy ring, DEA agents learned through cooperating sources that Cantu was a source of supply of cocaine and marijuana for individuals on the Mississippi Gulf Coast. Specifically, during the DEA investigation, one source who knew Cantu only as "Flaco" stated that he negotiated with Cantu for the delivery of over 100 kilograms of marijuana. The source was also able to identify Cantu in a photo lineup provided by DEA agents.
Two of Cantu’s co-defendants stated that Cantu was instrumental in introducing the two of them to each other for the purposes of assisting in the distribution of at least 500 grams or more of cocaine. The co-defendants also stated that Cantu was present at a meeting where they discussed the distribution of narcotics, specifically one kilogram of cocaine and 117 pounds of marijuana, and those discussions ultimately led to the distribution of narcotics on the Mississippi Gulf Coast. Cantu was apprehended on October 23, 2017, in McAllen, Texas and brought to Mississippi for prosecution.
Cantu will be sentenced on June 13, 2018, by Judge Ozerden, and he faces a maximum penalty of 40 years in prison and a $5 million fine.
The case was investigated by the DEA and the FBI Safe Streets Task Force. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Sweepstakes Scheme Targets Elderly Missouri ResidentRead the Press Release
St. Louis, MO – Fernando Reyes, 37, a resident of Florida, was indicted today on charges of conspiracy to commit mail fraud and mail fraud.
The indictment alleges that beginning in April 2016, Reyes and other individuals telephoned a Missouri resident over the age of 80 to advise the resident that he had won large sums of money through a sweepstakes. In order to secure his winnings, the Missouri resident was advised to mail various amounts of money to an individual in New Hampshire and the defendant in Florida. During the telephone calls, the caller identified Reyes as a federal attorney. However, Reyes is not affiliated with the United States Department of Justice or any other federal agency or department.
Four checks totalling more than $53,000 were deposited into defendant’s financial accounts. After the deposits, Reyes electronically transmitted a portion of the funds to an individual in Costa Rica, and kept the remaining funds for his personal use.
If Reyes is convicted, each charge carries a maximum penalty of 20 years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
This case is being investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
This indictment coincides with the United States Department of Justice coordination of a nationwide elder fraud sweep. Attorney General Jeff Sessions and law enforcement partners are coordinating the largest sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Elder Fraud Complaints
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.
Stewart County Students to Participate in "Successful Tips for Youth on Law Enforcement Encounters"Read the Press Release
LUMPKIN: Stewart County Middle School students will participate in a program designed to teach them how to have positive encounters with law enforcement on Friday, February 23, 2018. “Successful Tips for Youth on Law Enforcement Encounters” (STYLE) is a program developed by the Federal Bureau of Investigation (FBI) to bridge the gap between our youth and our law enforcement community.
In order to foster positive relationships in our community, the United States Attorney’s Office for the Middle District of Georgia has partnered with the Columbus Field Office of the FBI, the Stewart County Sheriff’s Office, the Lumpkin Police Department and the Richland Police Department to host this youth program for students.
In addition to building relationships, the program is designed to teach our youth how to have a positive encounter with law enforcement, if ever faced with such a situation.
The program consists of various mock scenarios that mirror a potential traffic stop, a home encounter, and a street encounter. The various scenarios have been carefully designed to show our youth both the right and wrong way of dealing with law enforcement.
The students are also provided with a demonstration of use of force scenarios, which allow them to see the split-second decisions that law enforcement officers often face.
Next, the students are able to engage our law enforcement during a roundtable discussion. During this time, students and law enforcement get to know each other, and discuss the scenarios in further detail.
Finally, students are equipped with an understanding of the proper way to file a civil rights complaint should they feel their rights were violated during a law enforcement encounter.
S.T.Y.L.E. is an element of the Middle District’s Project Safe Neighborhoods (PSN) initiative. PSN is 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.
For further information, contact Pamela Lightsey, Public Information Officer, at 478-731-1824 or [email protected].
South Saint Paul Man Sentenced to Federal Prison for Check Forgery SchemeRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of JAMES MARIO LEWIS, a/k/a/ “Lowdown,” 47, to 61 months in prison for operating a years-long check fraud scheme. The defendant, who pleaded guilty on July 6, 2017, to one count of bank fraud and one count of aggravated identity theft, was sentenced on February 20, 2018, before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.
“The recent sentencing of Mr. Lewis to over five years in prison for theft of mail should be a wake-up call to those individuals who are contemplating a similar crime”, said Acting Postal Inspector in Charge Dana Carter of the Denver Division. “The US Postal Inspection Service continues a long tradition of protecting the American public from those individuals who would steal or use the US Mail in furtherance of their criminal activities.”
According to his guilty plea and documents filed in court, from May 2009 through April 2014, LEWIS led a fraud scheme in which he and multiple co-conspirators would steal checks from victims’ mailboxes, change the name on the checks, deposit them at local banks, and then withdraw the cash proceeds. LEWIS would use chemicals to “wash” the stolen checks to remove the true payee and rewrite the checks using the names and bank account information of his co-conspirators. In total, LEWIS and his co-conspirators cashed or attempted to cash more than 60 counterfeit checks totaling more than $120,000.00.
This case was the result of an investigation conducted by the United States Postal Inspection Service, the Ramsey County Sheriff’s Office, and the Minnesota Financial Crimes Task Force.
Assistant United States Attorney Manda M. Sertich prosecuted this case.
Defendant Information:
JAMES MARIO LEWIS, a/k/a/ “Lowdown,” 47
South Saint Paul, Minn.
Convicted:
- Bank fraud, 1 count
- Aggravated identity theft, 1 count
Sentenced:- 61 months in prison
- Five years supervised release
- $57,963.41 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600South Florida Doctor Sentenced in Medicare Fraud SchemeRead the Press Release
Dr. Salomon Melgen was sentenced today to 17 years in prison, to be followed by three years of supervised release by the U.S. District Judge Kenneth A. Marra in West Palm Beach, Florida. This sentencing is the culmination of a multi-year investigation, which was followed by an eight week jury trial in April 2017 that resulted in Melgen’s conviction on 67 counts of health care fraud and related charges.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office; Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG); Patrick Fletcher, Special Agent in Charge, U.S. Railroad Retirement Board, Office of Inspector General (RRB-OIG); and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), made the announcement.
Melgen, an ophthalmologist who specialized in the treatment of retinal disorders and who had practiced in Palm Beach and St. Lucie Counties for many years until his arrest in 2015, engaged in a scheme to defraud the Medicare program and other health care benefit programs, by, among other things, falsely diagnosing Medicare patients with macular degeneration and then performing and billing for excessive and medically unnecessary tests and procedures, which included injections of expensive drugs and laser treatments. These tests and procedures resulted in Melgen’s receiving tens of millions of dollars in reimbursement from the Medicare program alone during the six-year period of January 2008 through December 2013.
In sentencing Melgen, Judge Marra found that the intended fraud loss was over $70 million and the actual fraud loss to Medicare was $42 million. In addition to the term of incarceration, the defendant was ordered to make full restitution to Medicare. Losses to other insurance companies and to individual patients will be determined at a future hearing.
“In perpetrating his multi-million fraud scheme on health care benefit programs like Medicare, Dr. Melgen showed complete disregard for what was best for his patients and abused their trust for his own personal financial gain,” stated U.S. Attorney Benjamin G. Greenberg. “Dr. Melgen has been held responsible for his egregious fraud scheme. Today’s sentence should serve as a reminder that the U.S. Attorney’s Office and our law enforcement partners remain committed to bringing those who illegally divert the community’s tax dollars to justice, regardless of their professional position.”
“The reprehensible conduct of Salomon Melgen is a disgrace to the medical profession,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “Not satisfied with being a successful ophthalmologist committed to treating his patients’ legitimate medical conditions, Melgen devised a scheme to enrich himself by defrauding Medicare and other benefit programs to the tune of tens of millions of dollars. The FBI will not relent in its pursuit of Medicare fraudsters – including greedy doctors.”
“Salomon Melgen callously took advantage of patients who came to him fearing blindness,” said Shimon Richmond, Special Agent in Charge of the U.S. DHHS Office of Inspector General’s Miami Region. “Instead of treatment, they received medically unreasonable and unnecessary tests and procedures that victimized his patients and the American taxpayer. Today’s sentencing is a stark reminder that the OIG and our partners will not tolerate Medicare fraud and will not rest in our efforts to protect patients in their time of need.”
“The U.S. Railroad Retirement Board, Office of Inspector General is committed to fighting Medicare fraud, waste and abuse and is proud to be part of this collaborative effort with the FBI, HHS-OIG, DCIS-OIG and OPM-OIG,” said Inspector General Martin J. Dickman. “The sentencing of Dr. Melgen sends a loud and clear message that combating Medicare fraud is a top Federal law enforcement priority and unscrupulous Medicare providers will not be tolerated.”
“This sentencing demonstrates the effectiveness of our joint investigations to pursue corrupt health care providers who defraud Federal health care programs,” stated Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS is committed to preserving the integrity of DoD’s TRICARE program which serves America's Warfighters and their families.”
Mr. Greenberg commended the investigative efforts of the FBI, HHS-OIG, RRB-OIG and DCIS. This case was prosecuted by Assistant United States Attorneys Roger H. Stefin, Carolyn Bell and Alexandra Chase.
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.
Six More Defendants Indicted in Multi-Agency Investigation into Coordinated Criminal Activity Centered in WoodlandRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned five indictments today against six additional defendants arrested as part of last week’s multi-agency coordinated series of searches and arrests throughout Northern California, U.S. Attorney McGregor W. Scott announced.
- Daisy Gonzalez, 32, of Termo in Lassen County, and Jose Trinidad Heredia Romero, a Mexican national, are charged with conspiracy to manufacture marijuana, the manufacture of marijuana, and possession with intent to distribute methamphetamine. Gonzalez is also charged with unlawful possession of a firearm.
- Asencion Jimenez, 38, of North Highlands, is charged with being a felon in possession of firearms.
- Stefanie Lavan, 65, Woodland, is charged with possession with intent to distribute methamphetamine.
- John Lemus, 31, of Woodland, is charged with being a felon in possession of a firearm;
- Carlos Martinez, 38, of Woodland, is charged with unlawful possession of a firearm, possession with intent to distribute cocaine, and possession of a firearm during and in furtherance of a drug-trafficking offense.
These new indictments arise from a multi-agency law enforcement investigation focused on Woodland, but which spread to multiple counties in Northern California and to two additional states. For more information, go to the website for the Eastern District of California.
If convicted, the defendants face statutory penalties of five to 40 years in prison for conspiracy to manufacture marijuana or the manufacture of marijuana and up to a $5 million fine; 10 years to life and up to a $10 million fine for possession with intent to distribute methamphetamine; up to 10 years in prison and a $250,000 fine for being a prohibited person in possession of a firearm; up to 20 years in prison and a $1 million fine for possession with intent to distribute cocaine, and up to five years in prison and a $250,000 fine for possession of firearms during and in furtherance of a drug trafficking crime. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
This case is brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
These cases, and others unveiled in six indictments last week, are the product of an investigation by the FBI, California Department of Corrections and Rehabilitation (CDCR), Yolo County District Attorney, Woodland Police Department, and the California Highway Patrol. The following agencies provided substantial assistance: Colusa County Sheriff’s Office, Sacramento Police Department, Sacramento County Sheriff’s Office, West Sacramento Police Department, Yolo County Sheriff’s Office, Davis Police Department, Yuba City Police Department, Yuba County Sheriff’s Office, Sutter County Sheriff’s Office, Solano County Sheriff’s Office, Vacaville Police Department, the Correctional Intelligence Task Force (CITF), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, and the Drug Enforcement Administration (DEA). Assistant U.S. Attorneys Owen Roth and Justin L. Lee are prosecuting the cases.Shreveport felon pleads guilty to illegally possessing a firearm, parked at apartment complexRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a Shreveport man previously convicted of a felony pleaded guilty Wednesday to unlawfully possessing a pistol while parked outside a Shreveport apartment.
Charles M. Thomas, 21, of Shreveport, pleaded guilty before U.S. Magistrate Judge Mark L. Hornsby to one count of felon in possession of a firearm. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, a Shreveport Police officer observed a vehicle idling in the parking lot of an apartment complex on Quail Creek Road. When the officer approached the vehicle, he observed Thomas, the driver, placing a handgun under his seat. The firearm was loaded with four rounds of .45 caliber ammunition. Thomas had previously been convicted of three counts of aggravated assault with a firearm in 2016.
Thomas faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of May 18, 2018.
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 safe 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.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Shreveport felon pleads guilty to illegal possession of a firearmRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a Shreveport man previously convicted of a felony pleaded guilty last week possessing a .45 caliber pistol.
Jelantis J. Chatman, 22, of Shreveport, pleaded guilty Friday before U.S. Magistrate Judge Mark L. Hornsby to one count of felon in possession of a firearm. According to the guilty plea, law enforcement officers arrested Chatman at his residence on July 12, 2017. During his arrest, officers discovered a Springfield Armory, model: XD45, .45 caliber pistol and ammunition. Chatman was previously convicted of a felony in 2015 and is not allowed to possess a firearm.
Chatman faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of May 16, 2018.
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 safe 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.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Seven Defendants Indicted, Connected to Two MurdersRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that seven defendants have been indicted on charges related to two murders.
Shawn Burkhalter, also known as “Deuce,” 29, Sharika Hooker, 29, and Autry Hines, also known as “Bud,” 26, all of Kansas City, Mo.; Joslyn Lee, also known as “Bless,” 26, and Nickayla Jones, 22, both of Blue Springs, Mo.; Rachel Ryce, 30, of Raytown, Mo.; and Joshua Nesbitt, also known as “T,” 23, of Crowder, Miss., were charged in a 14-count indictment returned under seal on Wednesday, Feb. 21, 2018. The indictment was unsealed and made public today upon the arrests of Lee and Hooker. The remaining defendants are already in state custody on related charges.
The federal indictment contains four capital counts related to the murders of two individuals.
Murder of Danny Lamont Dean
The indictment alleges that Burkhalter and Nesbitt shot and killed Danny Lamont Dean on Sept. 10, 2015, while robbing him of cocaine. Burkhalter and Nesbitt are charged together in one count of using a firearm to commit murder in relation to a drug-trafficking crime. They allegedly used a Rock River Arms AR-15 5.56-caliber semi-automatic rifle.
Lee is charged with one count of being an accessory after the fact. She allegedly assisted Burkhalter and Nesbitt after the murder in order to hinder and prevent their apprehension, trial and punishment.
Murder of Anthony Dwayne Johnson
The indictment alleges that Nesbitt shot and killed Anthony Dwayne Johnson on Oct. 4, 2015. Burkhalter and Nesbitt are charged together in a second count of using a firearm to commit murder in relation to a drug-trafficking crime; the indictment alleges that the murder occurred while they were robbing marijuana from an apartment. Burkhalter and Nesbitt are also charged in one count of murdering a potential witness; the indictment alleges that the murder occurred in order to prevent the victim’s testimony and to prevent him from communicating with law enforcement. They allegedly used the same AR-15 rifle.
Burkhalter, Nesbitt, Lee, Jones, Hines and Ryce are charged together with participating in a witness and evidence-tampering conspiracy. Their objectives were to kill or at least intimidate and threaten Johnson, the indictment says. Nesbitt, Lee, Jones, Hines and Ryce allegedly stashed the AR-15 rifle at a residence.
Lee, Jones, Hines, Ryce and Hooker are charged together with being accessories after the fact. The indictment alleges that they assisted Burkhalter and Nesbitt by, anmong other things, taking steps to hide or destroy evidence pertaining to the murder. Hooker allegedly assisted Burkhalter and Nesbitt by providing Nesbitt with sanctuary and money after the murder.
Drug-Trafficking Conspiracy
Six of the seven defendants – Burkhalter, Nesbitt, Lee, Jones, Hines and Ryce – are charged with participating in a conspiracy to distribute cocaine and marijuana from 2008 to Feb. 20, 2018.
In addition to the conspiracy, Burkhalter and Nesbitt are charged together with one count of possessing cocaine with the intent to distribute on Sept. 10, 2015.
Burkhalter and Nesbitt are charged together with one count of discharging a firearm in furtherance of a drug-trafficking crime, related to the discharge of the AR-15 rifle in furtherance of the drug-traffficking conspiracy and the possession of cocaine to distribute.
Burkhalter, Nesbitt, Lee, Jones, Hines and Ryce are charged together with possessing marijuana with the intent to distribute on Oct. 4, 2015. The indictment alleges that they intended to sell a quantity of the marijuana they robbed on that date. They are also charged together in one count of discharging a firearm in furtherance of a drug-trafficking crime.
Armed Robbery
Burkhalter and Nesbitt are charged together in one count with robbing a Kansas City, Mo., business on Sept. 8, 2015, and in one count with brandishing a firearm (the same AR-15 rifle) in furtherance of a crime of violence. Burkhalter and Nesbitt are also charged together in one count of being felons in possession of a firearm.
Garrison cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys David Raskin and Adam Caine. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Sarasota Felon Indicted for Possessing More Than Two Tons of ExplosivesRead the Press Release
Tampa, Florida – A federal grand jury has returned an indictment charging Marc Jason Levene (56, Sarasota) with three counts of possessing explosives as a convicted felon, two counts of improper storage of explosive materials, and one count of possessing ammunition as a convicted felon. If convicted, he faces a maximum penalty of 10 years in federal prison for each of the possession counts and up to one year in federal prison for each improper storage count. The indictment also notifies Levene that the United States intends to forfeit approximately 4,362 pounds of quick match and 858 rounds of .22 caliber ammunition, which are alleged to be explosive materials and ammunition involved in the charged offenses.
According to the indictment, Levene stored explosives in an exterior shed at his home and in a storage unit at a commercial storage facility in Sarasota. Last Thursday, law enforcement officers executed search warrants at Levene’s home and storage unit and seized explosives and ammunition.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sarasota County Sheriff’s Office, and the Bureau of Fire and Arson Investigations. It will be prosecuted by Assistant United States Attorney Simon Gaugush.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
San Antonio Man Sentenced to 45 Years in Federal Prison for Production of Child PornographyRead the Press Release
In San Antonio this afternoon, a federal judge sentenced 31-year-old Nicholas Andreas Gonzalez-Malven to 45 years in federal prison for production of child pornography, announced United States Attorney John F. Bash and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Senior United States District Judge David A. Ezra ordered that Gonzalez pay a $3,000 fine and be placed on supervised release for ten years after completing his prison term.
On June 14, 2017, Gonzalez pleaded guilty to two counts of production of child pornography. According to court records, Gonzalez took photographs of a child on two separate occasions in 2016 that depicted sexually explicit conduct. FBI agents recovered the photographs from a phone seized during a separate investigation.
The FBI and the Bexar County Sheriff’s Office conducted this joint investigation. Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
San Antonio Man Enters Guilty Plea to Federal Charge in Connection with Shooting of U.S. Mail CarrierRead the Press Release
In San Antonio this afternoon, 23–year-old Bradley Ahearn admitted to shooting a U.S. Mail carrier last year in Spring Branch, TX, announced United States Attorney John F. Bash; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; and, San Antonio Police Chief William McManus.
Appearing before United States Magistrate Judge Elizabeth S. Chestney, Ahearn pleaded guilty to a total of seven federal charges including aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, four counts of aiding and abetting assault on a federal officer. He faces 20 years in federal prison.
By pleading guilty, Ahearn admitted that on February 11, 2017, he shot a female U.S. Mail carrier as she was delivering mail to a cluster of mailboxes in Spring Branch, TX, because the victim would not would not give him her cell phone. The victim is still recovering from the gunshot that pierced both of her legs. Ahearn left the scene in the victim’s pickup truck while it still contained the victim’s purse and personal effects as well as a considerable amount of U.S. Mail. According to court records, Ahearn’s co-defendant, 27-year-old Sarah Richford, followed Ahearn in a maroon/brown colored Toyota Venza as he left the scene.
Two days after the shooting, a U.S. Postal Inspector spotted the Toyota Venza at a restaurant near the location of the shooting. The Postal Inspector attempted to initiate an investigative stop, but was unsuccessful as Ahearn fired a handgun in the direction of the federal officer. Ahearn admitted to firing his weapon at the U.S. Postal Inspector and another federal agent during a subsequent 19-mile-long, high-speed pursuit. Ahearn and Richford managed to avoid capture.
According to court records, on February 14, 2017, employees of a local motel notified investigators of the presence of a large amount of U.S. Mail and a handgun case in one of the motel rooms. Much of the discovered mail, originating from locations across the country, was destined for addresses in the Spring Branch, TX area. That same day, not far from the motel, investigators recovered the abandoned Toyota Venza. From motel surveillance footage, investigators discovered Ahearn, Richford and 41-year-old Piper Lee leave the motel in Lee’s yellow Volkswagen and requested San Antonio police to initiate a stop of the vehicle. While failing to yield to SAPD officers, Ahearn began shooting at the police officers and another high-speed pursuit ensued. Ultimately, the defendants abandoned their vehicle inside a parking garage of a local mall and managed to elude capture by law enforcement.
On February 15, 2017, San Antonio police officers, acting on information provided to investigators, arrested Ahearn, Richford and Lee without incident in a parking lot of a different local motel. All three remain in custody.
Richford is scheduled to have a re-arraignment hearing tomorrow at 2:30pm before Judge Chestney in San Antonio. She faces federal charges of aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, two counts of aiding and abetting assault on a federal officer.
Lee is charged with two counts of aiding and abetting the assault of a federal officer; one count of aiding and abetting use of a firearm during a crime of violence; and, one count of possession of stolen mail. He is currently set for jury selection on August 20, 2018, before Chief U.S. District Judge Orlando L. Garcia.
It is important to note that an indictment is merely a charge and should not be evidence of guilt. A defendant is considered innocent until proven guilty in a court of law.
The U.S. Postal Inspection Service together with the San Antonio Police Department, Texas Department of Public Safety, Texas Rangers, Comal County Sheriff’s Office, Bulverde Police Department, Federal Bureau of Investigation, U.S. Marshals Service and Homeland Security Investigations (HSI) investigated this case. Assistant United States Attorneys Bettina Richardson and Christina Playton are prosecuting this case on behalf of the Government.
Sacramento Woman Sentenced to over 5 Years in Prison for a Scheme to Steal Mail Using Fraudulent Vacation Holds and Address Change FormsRead the Press Release
SACRAMENTO, Calif. — Latomba Bishop, 33 of Sacramento, was sentenced today to five years and 10 months in prison for a scheme to obtain mail through fraudulent vacation holds and mail forwarding requests and steal the identities of the mail theft victims, U.S. Attorney McGregor W. Scott announced. In addition, U.S. District Judge Troy L. Nunley ordered Bishop to pay $38,371 in restitution to the victims.
On November 30, 2017, Bishop pleaded guilty to mail fraud and aggravated identity theft in connection with the scheme.
According to court documents, Bishop and her co-defendants Joshua Yadon, 33, and Norman Thompson, 37, both of Sacramento, used stolen personal identifying information to fraudulently obtain credit cards, checks, and merchandise. To avoid detection, the conspirators would often request that the items be mailed to the victims’ real addresses but then would file false vacation holds and change of address forms with the United States Postal Service in order to divert the items into the conspirators’ possession.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for the thefts of mail and financial crimes committed against the public.”
Thompson pleaded guilty to the conspiracy and on October 5, 2017, was sentenced to three years and 10 months in prison. Yadon also pleaded guilty and is scheduled to be sentenced on April 12, 2018. Yadon faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Postal Inspection Service with assistance from the Davis Police Department, Sacramento County Probation, and the Woodland Police Department. Assistant U.S. Attorney Jeremy J. Kelley is prosecuting the case.
Sacramento Man Indicted for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against William Lamar Blessett, 38, of Sacramento, charging him with receipt and possession of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, a search of Blessett’s home revealed child pornography on at least six separate electronic devices, including a laptop, three smart phones, and two tablets.
This case was the product of an investigation by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
If convicted, Blessett faces a minimum statutory penalty of 15 years in prison and a maximum penalty of 40 years in prison, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Reserve Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that BRIAN BURNS, age 34, of Reserve, pled guilty today to charges relating to narcotics trafficking and illegal possession of firearms.
According to court documents, BURNS conspired to distribute at least 50 grams of methamphetamine. For that charge, BURNS faces a term of imprisonment of at least five and up to forty years, a fine of up to $5,000,000, and at least four years of supervised release following any term of imprisonment,
BURNS pled guilty to possession of firearms in furtherance of a drug trafficking crime. BURNS possessed a Remington Model AR-15, .223 caliber semi-automatic assault rifle; a Kel-Tec Model Tec-9, 9mm caliber semi-automatic pistol with an extended magazine; and a Taurus Model 738 TCP, .380 caliber, semi-automatic pistol. For the firearms charge, BURNS faces a minimum term of imprisonment of five years, which must run consecutive to any other sentence, and a maximum term of life imprisonment, a fine of $250,000, and three years of supervised release following any term of imprisonment.
Judge Nanette Jolivette Brown set sentencing for May 17, 2018 at 10:00 a.m.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant U.S. Attorneys Nicholas D. Moses and Jonathan L. Shih are in charge of the prosecution.
RI Man Charged in International Telemarketing Scheme Targeting U.S. CitizensRead the Press Release
PROVIDENCE, RI – A Pawtucket, Rhode Island man is among more than 250 defendants from around the globe named in criminal, civil and forfeiture fraud cases brought by federal and state law enforcement against individuals and organizations that allegedly victimized more than a million Americans, most of whom are elderly, it was announced today by Attorney General Jeff Sessions and United States Attorney Stephen G. Dambruch.
Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than 250 defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts, including Rhode Island. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
In Rhode Island, United States Attorney Stephen G. Dambruch and Raymond D. Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service (USPIS), Boston Division, announced the arrest of Shawn Whitfield, 47, of Pawtucket, on a federal criminal complaint charging him with mail fraud, conspiracy, wire fraud, and international money laundering.
According to court documents filed in Rhode Island, it is alleged that Whitfield participated in a telemarketing lottery scam originating out of Jamaica that targeted United States residents, many of them seniors. It is alleged the scammers led victims to believe that they have won a lottery. However, the cash or prizes they purportedly won would not be released without upfront payment of taxes or fees.
It is alleged that between April 2015 and January 2018, Whitfield collected an estimated $98,100 in payments from at least 47 individuals from 23 states who fell victim to the lottery telemarketing scam. It is alleged that the majority of funds collected by Whitfield were transferred electronically to individuals in Jamaica.
In this particular telemarketing scam, an individual in the United States receives an unsolicited telephone call from an individual in Jamaica claiming to work for a well-known organization, such as Publishers Clearinghouse. The scammer tells the victims that they have won large cash prizes, vacation getaways, vehicles, or other prizes. However, in order to collect their winnings, the individual is instructed to send money to pay for processing fees or taxes on their winnings. The scammer typically assures people that they will receive their prize shortly after the lottery has received their payment.
It is alleged in this matter that at least 47 individuals in 23 states were contacted via telephone and told of their purported winnings. They were instructed to send upfront payments for taxes and fees to Shawn Whitfield at his Pawtucket, R.I., residence. An investigation by the U.S. Postal Inspection Service and the U.S. Attorney’s Office determined that Whitfield collected an estimated $98,100, most of which was later transferred electronically by Whitfield to individuals in Jamaica. Additionally, investigators determined that between January 2016 and May 2017, there were 2,167 successfully completed incoming telephone calls to Whitfield’s cell phone from multiple telephone numbers in Jamaica and 415 successfully completed outgoing telephone calls from Whitfield’s cell phone to multiple telephone numbers in Jamaica.
USPIS agents, assisted by members of the Pawtucket Police Department, Rhode Island State Police and the U.S. Marshals Service, executed a court-authorized search of Whitfield’s residence on Tuesday. Whitfield was arrested simultaneously at his place of employment in Norwood, Mass., by USPIS agents, with the assistance of members of the Norwood Police Department. Whitfield was released on $10,000 unsecured bond and GPS monitoring following his initial appearance in U.S. District Court in Providence before U.S. District Court Magistrate Judge Patricia A. Sullivan.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Shawn Whitfield is being prosecuted by Assistant U.S. Attorney Denise M. Barton, Elder Justice Coordinator for the United States Attorney’s Office for the District of Rhode Island.
Actions against the mass-mailing fraud industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public Education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them.
- If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint
- For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice
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Physician Practicing in Grass Valley and Yuba City Sentenced to over 4 Years in Prison for Illegal Prescription PracticeRead the Press Release
SACRAMENTO, Calif. — A formerly licensed physician, Nicholas J. Capos Jr., 67, of Yuba City, was sentenced today by U.S. District Judge Morrison C. England Jr. to four years and four months in prison for selling prescriptions of controlled substances such as oxycodone and methadone, U.S. Attorney McGregor W. Scott announced.
“By prescribing medications to patients he never physically examined in amounts clearly intended for abuse and resale, Capos injected potent and potentially lethal drugs into the community, putting lives at risk,” said U.S. Attorney Scott. “The U.S. Attorney’s Office is committed to doing its part to combat the nation’s opioid crisis by devoting resources to cases like this and working with our law enforcement partners to end the unlawful distribution of these dangerous drugs.”
“The public should have confidence that practicing physicians will adhere to the do‑no‑harm principle. Nicholas Capos did just the opposite when he prescribed oxycodone without legitimate medical purpose and outside the usual course of practice. This type of reckless behavior provides fuel to the fire of the opioid epidemic plaguing our nation,” stated DEA Special Agent in Charge John J. Martin.
According to court documents, between April 3, 2008, and October 30, 2012, Capos, who was then a licensed physician with a specialty in cardiology, knowingly and intentionally prescribed controlled substances without properly examining the patients and ignoring obvious signs that the patients were abusing or reselling the medications. He prescribed quantities far in excess of human tolerance and charged patients a “DEA Fee” of $100 per prescription, which is contrary to accepted medical practice. He is no longer licensed to practice medicine.
On May 5, 2016, Capos pleaded guilty to distribution and dispensation of oxycodone. According to the plea agreement, Capos prescribed 2,640 APAP/Hydrocodone 325/10 pills in 28 days for one patient (325 mg acetaminophen and 10 mg hydrocodone). At that rate, the patient
Pennsylvania Woman Sentenced for Stealing Funds Which Resulted in Closing of Credit UnionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Norma Gold, 57, of Eldred, PA, who was convicted of making false entries in federal credit union reports, was sentenced to 30 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $179,939.21.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that Gold was an employee of the Olean Tile Employees Federal Credit Union (OTEFCU) for approximately 26 years between 1986 and December 2012. For a portion of her tenure, Gold served as office manager and was responsible for keeping accurate financial records on behalf of the Credit Union.
Between December 2007 and December 2012, Gold embezzled funds and made false entries in OTEFCU’s general ledger and altered financial statements, making it appear that the OTEFCU’s account balances were larger than they actually were. Gold’s conduct caused substantial hardship to the OTEFCU and it was ultimately forced to close as a result of the theft. The OTEFCU suffered a total loss of $179,939.21.
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; the National Credit Union Administration; the U.S. Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson; and the Olean Police Department, under the direction Chief Jeffrey Rowley.
Pennsylvania Tobacco Distributor Sentenced for Aiding Tobacco Trafficking in MassachusettsRead the Press Release
BOSTON – A Pennsylvania wholesale tobacco distributor was sentenced yesterday in federal court in Boston for aiding and abetting untaxed shipments of tobacco products into Massachusetts and evading financial reporting requirements.
Kamlesh Patel, 60, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one year and one day in prison, two years of supervised release, and ordered to pay fine of $500,000 and forfeiture of $153,846. In September 2017, Patel pleaded guilty to one count of aiding and abetting a Norwood-based wholesaler to violate the Prevent All Cigarette Trafficking Act (PACT Act) and one count of failing to report large cash transactions to the IRS.
Patel owned and operated RDK Distributors (RDK) and MV Distributors (MV) in Stroudsburg, Penn., through which he distributed wholesale quantities of cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), among other products.
Title 15 of the PACT Act requires people who sell, advertise for sale, transfer or ship for profit smokeless tobacco between states to file a statement with the Attorney General and the tobacco tax administrator in the states to which they ship their products. The PACT Act also requires them to file with the tax administrator a monthly record of each shipment of smokeless tobacco that they transport into the state.
Beginning in approximately January 2013, Patel sold large quantities of tobacco products to a Norwood wholesaler, often worth more than $100,000 at a time. The Norwood wholesaler typically paid Patel for the tobacco products in cash. To evade financial reporting requirements that would have notified the IRS of the size, nature and income of the Norwood wholesaler’s business, Patel falsely divided the bulk cash payments he received among multiple invoices. Patel created and instructed his employees to record the large cash payments he received as if there had been numerous sales over numerous days among numerous companies, each less than $10,000, rather than the single sale for which he had received one or two sizeable cash payments, often amounting to more than $100,000 at a time.
United States Attorney Andrew E. Lelling and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The Massachusetts Department of Revenue also provided valuable assistance. Assistant U.S. Attorney Stephen Heymann of Lelling’s Economic Crimes Unit prosecuted the case.
Pekin Man to be Sentenced for Defrauding Elderly VictimRead the Press Release
PEORIA, Ill., A Pekin, Ill., man, Deryl Wright, 42, of the 1400 block of Camden St., is scheduled to be sentenced next week, on Feb. 28, 2018, after admitting that he engaged in a two-year scheme that defrauded an elderly, vulnerable victim of nearly $100,000.
Wright is among the more than 250 defendants included in today’s announcement by Attorney General Jeff Sessions and the Department of Justice of the largest coordinated sweep of elder fraud cases in history. In total, the charged elder fraud schemes caused losses of more than half a billion dollars.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Wright was indicted in September 2017, and on Nov. 22, 2017, pleaded guilty to the three counts of wire fraud charged. Wright admitted that beginning in 2015 and continuing to April 2017, he defrauded the victim under the premise that Wright’s father had died and he was to inherit a large sum of money. 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.
It was part of the scheme that Wright gave the victim a continual source of reasons why the inheritance check was delayed or he was unable to obtain it. For example, Wright said he needed money to pay taxes and for processing fees; for claimed arrests, car accidents, and hospital admissions that did not occur; or, for car repairs so he could travel to pick up the check. Wright asked the victim to wire the money using money transfers at Walmart in Pekin, Ill., to Walmart stores located out of state.
At sentencing, the maximum penalty for wire fraud is up to 20 years in prison. Wright has remained in the custody of the U.S. Marshals Service since his arrest on Oct. 2, 2017.
The Pekin Police Department investigated the charges. Assistant U.S. Attorney Katherine G. Legge is prosecuting 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.
Partner at International Law Firm Sentenced for Insider TradingRead the Press Release
Geoffrey H. Berman, the United States Attorney for the Southern District of New York, announced today that WALTER C. LITTLE, a/k/a “Chet,” a former partner at an international law firm (the “Firm”), was sentenced today to 27 months in prison for conspiring to commit insider trading from at least February 2015 through May 2016. LITTLE pled guilty on November 9, 2017, before U.S. District Judge Katherine Polk Failla, who also imposed today’s sentence.
U.S. Attorney Geoffrey H. Berman said: “Walter Little, a law firm partner with access to sensitive nonpublic client information, selfishly chose to exploit it for personal gain rather than safeguard it. Today’s sentence underscores the seriousness of insider trading, as Little will now serve serious time in prison.”
According to allegations in a Complaint and Indictment filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:
LITTLE began working for the Firm as an associate in 2005 and eventually became a partner. The Firm provided legal services in connection with financial transactions and regulatory issues to a wide variety of clients. Those clients entrusted the Firm with nonpublic information when using its services. Contrary to Firm policies requiring that this information be kept secret and be used only for business purposes, LITTLE improperly accessed sensitive information on the Firm’s servers and used it to make profitable securities trades. LITTLE viewed numerous documents that contained material nonpublic information about, among other things, an anticipated delisting from the NASDAQ stock exchange, unannounced mergers and acquisitions, anticipated earnings releases, and a planned securities offering. All of these events had predictable impacts on the associated stocks’ prices, and, between February 2015 and May 2016, LITTLE made hundreds of thousands of dollars trading stocks and options based on the information contained in these documents.
In addition to trading on the information himself, LITTLE also provided the information to Andrew Berke, his business associate and friend, who also traded on it and made hundreds of thousands of dollars in illegal gains as well. At LITTLE’s request, Berke subsequently kicked back portions of his own profits to LITTLE through the use of fake legal invoices. Berke pled guilty on December 28, 2017, to his role in the scheme and is scheduled to be sentenced on April 17, 2018.
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In addition to the prison sentence, LITTLE, 44, was sentenced to three years of supervised release. The Court further ordered LITTLE to forfeit a sum of $452,998.
Mr. Berman praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Robert Allen and Samson Enzer are in charge of the prosecution.
Pair of Bank Robbers Sentenced for Armed Bank RobberyRead the Press Release
Two men who robbed the Citizens State Bank in Hopkinton, Iowa were sentenced today to more than 10 years’ in federal prison.
Daniel Louis Jackson, age 28, from Yonkers, New York, received the prison term after an October 12, 2017, jury verdict finding him guilty of armed bank robbery, conspiracy to commit armed bank robbery, aiding and abetting the use, carrying, and brandishing of a firearm during a crime of violence, and conspiracy to use, carry, and brandish a firearm during a crime of violence. Jason Centeno, age 22, from Yonkers, New York, received the prison term after a September 14, 2017, guilty plea to armed bank robbery and using, carrying, and brandishing a firearm during a crime of violence.
Evidence at trial showed that Jackson and Centeno moved to Muscatine, Iowa, during the summer of 2016. While in Iowa, they reached an agreement to rob the Citizens State Bank in Hopkinton, Iowa. Prior to the robbery, Jackson obtained a .38 caliber revolver from an individual in Detroit, Michigan. Video evidence admitted at trial obtained from a cell phone showed both men using the firearm prior to the robbery. One video showed Centeno shooting at various residences from the passenger seat of a car driven by Jackson. A second video showed Jackson and Centeno shooting at what appeared to be an abandoned warehouse.
On the morning of October 21, 2016, Jackson and Centeno drove Jackson’s car from Muscatine to Hopkinton. Centeno entered the bank brandishing the firearm, while Jackson carried a knife. Both men jumped over the bank counter and demanded money from the two employees working at the time. While Centeno collected money from one teller at gun point, Jackson forced the other teller to place her hands behind her back and restrained her using zip ties. Jackson and Centeno had purchased the zip ties together the day before at the Wal-Mart in Muscatine. During the robbery, a third bank employee entered the bank. Jackson also ordered him to place his hands behind his bank and secured his hands with zip ties. Jackson and Centeno left the bank, taking more than $8,000, and returned to Muscatine. Jackson and Centeno the fled from Iowa, first to Yonkers, New York, and later to Florida, where they were eventually arrested by the Volusia County Sheriff’s Office.
Jackson and Centeno were sentenced in Cedar Rapids by Chief United States District Court Leonard T. Strand. Jackson was sentenced to 180 months’ imprisonment. A special assessment of $400 was imposed, and he was ordered to make $8,225 in restitution to the Citizens State Bank. Centeno was sentenced to 130 months’ imprisonment. A special assessment of $200 was imposed, and he was ordered to make $8,225 in restitution Citizens State Bank. Both men must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. In imposing these sentences, the court noted the “egregious and violent” nature of the offense.
Jackson and Centeno are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Williams and Jacob Schunk and was investigated by the Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, the Delaware County Sheriff’s Office, the Muscatine County Sheriff’s Office, the Muscatine Police Department, the Manchester Police Department, the Yonkers Police Department, and the Volusia County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-2057.
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Oakland Man Sentenced to 12 Months for Conspiring to Alter U.S. Postal Money OrdersRead the Press Release
U.S. Attorney Duane A. Evans announced that DARREN BRANDON WILLIAMS, age 29, of Oakland, California, was sentenced to 6 months of incarceration followed by 6 months of home confinement by United States District Court Judge for the Eastern District of Louisiana Sarah S. Vance after he previously pleaded guilty to conspiracy to alter U.S. Postal money orders.
According to the court records, WILLIAMS conspired with others in the New Orleans area to buy U.S. Postal money orders in small amounts (typically $1.00) and then the money orders were sent out of state where they were altered to much higher amounts. WILLIAMS, working with other conspirators, then enlisted individuals to deposit the altered U.S. Postal money orders into local bank accounts. Once the money orders cleared, the funds were withdrawn and split by WILLIAMS and the conspirators.
In addition to 12 months, WILLIAMS was sentenced to 3 years of supervised release, ordered to pay $25,000 in restitution to two victim banks and ordered to pay a fine of $2,000.
U. S. Attorney Evans praised the investigative work of the United States Postal Inspector Office for its handling of the matter. Assistant U.S. Attorney Edward J. Rivera was in charge of the prosecution.
New York Woman Admits to Embezzling $1.1 Million from Darien Auto DealershipRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that VANESSA VENCE-SMALL, 50, of New Windsor, New York, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of wire fraud arising from an embezzlement scheme.
According to court documents and statements made in court, VENCE-SMALL was the controller of Felix F. Callari, Inc., doing business as Continental BMW of Darien, an automobile dealership. From October 2014 to June 2017, VENCE-SMALL made 65 unauthorized electronic fund transfers, totaling $904,659.29, from the dealership’s bank account to her personal American Express account. VENCE-SMALL also issued and signed 28 checks drawn on the dealership’s bank account, in the total amount of $207,777.78, to pay various third parties, including credit card companies, contractors who performed work at her residence, and a different dealership from which she purchased a car. She also incurred on company accounts an additional $31,452.08 in unauthorized credit card charges and reimbursements.
Judge Meyer scheduled sentencing for May 24, 2018, at which time VENCE-SMALL faces a maximum term of imprisonment of 20 years, a fine of up to approximately $2.3 million, and an order of full restitution.
VENCE-SMALL is released on a $100,000 bond pending sentencing.
This matter is being investigated by the U.S. Secret Service, Darien Police Department and Connecticut Financial Crimes Task Force. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
New Castle Man Admits Traveling for Sex with a MinorRead the Press Release
PITTSBURGH - A Lawrence County resident pleaded guilty in federal court to a charge of travel with intent to engage in illicit sexual conduct, United States Attorney Scott W. Brady announced today.
Bradley Richard Moore, 44, of New Castle, Pennsylvania, pleaded guilty before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Moore posted an ad on Craigslist seeking to "participate in real incest." A Special Agent of the Office of the Pennsylvania Attorney General working in an undercover capacity posed as an adult male and responded to this advertisement. During communications with the advertisement’s poster, the undercover agent stated that he was a father of a 12-year-old boy who would be open to a sexual relationship with the poster. On October 14, 2017, Moore knowingly traveled from Ohio to Cranberry, Twp., Pennsylvania, for the purpose of engaging in illicit sexual conduct with the child.
United States District Judge Schwab scheduled sentencing June 13, 2018, at 9 a.m. The law provides for a maximum total sentence of 30 years imprisonment, a fine of $250,000.00, a term of lifetime supervised release, or any or all. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Office of the Pennsylvania Attorney General conducted the investigation that led to the prosecution of Moore.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Navajo Man from McKinley County Pleads Guilty to Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Clyde Peterson, 46, an enrolled member of the Navajo Nation who resides in Yahtahey, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to a sexual abuse of a minor or ward charge. Under the terms of his plea agreement, Peterson will be sentenced 21 months in prison followed by a term of supervised release to be determined by the court. Peterson also will be required to register as a sex offender.
Peterson was arrested on April 18, 2016, on an indictment charging him with sexual abuse of a child between the ages of 12 and 16 years from June 1, 2014 through Aug. 31, 2014, on the Navajo Indian Reservation in McKinley County, N.M.
During today’s change of plea hearing, Peterson pled guilty to the indictment, and admitted that between June 1, 2014 and Aug. 31, 2014, he engaged in sexual intercourse with the victim who was between the age of 12 and 16 years. A sentencing hearing has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and is being prosecuted by Assistant U.S. Attorney Nicholas J. Marshall pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was driven largely by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Navajo Man from Gallup Sentenced to Prison for Making False Statements to the FBIRead the Press Release
ALBUQUERQUE – Bronson Tony, 45, an enrolled member of the Navajo Nation who resides in Gallup, N.M., was sentenced today in Santa Fe, N.M., federal court to a six-month term of imprisonment followed by one year of supervised release for making false statements to the FBI.
Bronson Tony was charged in a felony information filed on Aug. 14, 2017, with making a false statement to the FBI on May 14, 2016 and June 2, 2016. The information alleged that Bronson Tony falsely represented to the FBI that he and others did not accompany Brian Tony, 46,of Gallup, and a male victim to an area on the Navajo Indian Reservation in McKinley County, N.M., on May 8, 2016, where the male victim was later murdered.
Bronson Tony entered a guilty plea to the felony information on Aug. 14, 2017, and admitted that on May 8, 2016, Brian Tony, the victim, he and others drove to an area on the Navajo Indian Reservation called “Superman Canyon.” Bronson Tony stated that he did not leave the vehicle or see what occurred outside of the vehicle, and kept the victim’s friend from leaving the vehicle after the victim and Brian Tony were heard yelling outside of the vehicle. Brian Tony later re-entered the vehicle without the victim.
In his plea agreement, Bronson Tony admitted that on May 14, 2016, when he was interviewed by an FBI agent regarding the victim’s death, he made false statements regarding his whereabouts on May 8, 2016 and May 9, 2016. Specifically Bronson Tony denied accompanying Brian Tony to “Superman Canyon,” and claimed that Brian Tony injured his arm on barbed wire. Bronson Tony further admitted that on June 2, 2016, during a subsequent interview with an FBI agent regarding the victim’s death, he made false statements regarding the individuals present at the time of the victim’s death.
A federal jury found Brian Tony guilty of first degree murder and two counts of witness tampering on Sept. 30, 2017. At sentencing, Brian Tony faces a statutory mandatory sentence of life imprisonment.
This case was investigated by the Albuquerque and Gallup offices of the FBI. The case against Brian Tony was also investigated by the Albuquerque and Gallup offices of the FBI and the Navajo Nation Division of Public Safety. Both cases are being prosecuted by Assistant U.S. Attorneys Joseph M. Spindle and Nicholas J. Marshall.
Municipal, State, and Federal Partnership Targets Car ThievesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned a series of indictments over the last few months charging individuals for various alleged firearms offenses arising from a number of vehicle thefts investigated by the Anchorage Police Department (APD).
The U.S. Attorney’s Office for the District of Alaska and its law enforcement partners have combined resources to address Anchorage’s car theft problem. In the past few months, federal gun charges have been filed against 10 individuals, all of whom reside in Anchorage, in connection with a number of stolen vehicle investigations:
- Jesse Contreras, 24, is currently charged with being a felon in possession of a firearm on two different occasions. Contreras was stopped by APD while in a stolen vehicle, and has prior state felony convictions for coercion and assault;
- Christopher Curtin, 30, is currently charged with being a felon in possession of a firearm. Curtin had burglar and auto theft tools in a vehicle, and has a prior state felony conviction for misconduct involving a controlled substance;
- Timothy Fyffe, 35, is currently charged with being a felon in possession of a firearm. Fyffe has a previous vehicle theft conviction with the state of Alaska, and has additional state charges pending for theft and vehicle theft;
- Jarsis Howard, 40, is currently charged with being a felon in possession of a firearm. Howard has prior felony convictions for misconduct involving a controlled substance, theft, and failure to register as a sex offender, among other offenses. Howard has additional state charges pending against him for vehicle theft and failure to register as a sex offender;
- Cody Iverson, 23, is currently charged with being a felon possession of a firearm. Iverson has a prior felony conviction for robbery, and has additional state charges pending for robbery and theft;
- Poly Lomu, 21, is currently charged with being a felon in possession of a firearm. Lomu has prior felony convictions for theft and vehicle theft, and has additional state charges pending for vehicle theft;
- Todd Margerum, 47, is currently charged for being a drug user in possession of a firearm, and for possession of a stolen firearm. Margerum was stopped in a stolen vehicle and has additional state charges pending for vehicle theft;
- Antoni Peralta, 31, is currently charged with being a felon in possession of a firearm. Peralta has prior felony convictions for vehicle theft and robbery;
- Navy Tauinaola, 35, is currently charged with being a felon in possession of a firearm on three different occasions. Tauinaola has prior felony convictions for failure to stop at direction of officer and a felony DUI, and has additional state charges pending for vehicle theft;
- Tony Tuaato, 23, is currently charged with being felon in possession of a firearm and possession of an unregistered firearm. When Tuaato was stopped, APD recovered a sawed off shotgun. Tuaato has prior felony convictions for vehicle theft and unlawful taking or driving of vehicle, and has additional state charges pending for attempted murder.
If convicted, they each face a maximum sentence of ten years in prison, a $250,000 fine, and three years of supervised release.
In addition, Roy Naughton, 39, of Anchorage, was indicted in December 2017 on federal carjacking charges. If convicted, Naughton faces a maximum sentence of 25 years in prison, a $250,000 fine, and five years of supervised release.
These cases were investigated by APD’s Property Crime Unit, with the cooperation and assistance from the Alaska Department of Law, FBI and ATF. Several are being handled by a Special Assistant U.S. Attorney, who is an Anchorage Municipal Prosecutor on loan to the U.S. Attorney’s Office to prosecute firearm, drug, and violent crime offenses that occur in Anchorage.
These cases were 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. Alaska U.S. Attorney Bryan Schroder has made partnerships with state and local police departments and prosecutors a cornerstone of this strategy. The above cases are the result of this partnership.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
More Alarm Monitoring Company Workers Admit to Stealing from CompanyRead the Press Release
HOUSTON – The final two defendants charged in a conspiracy to commit wire fraud involving their former employer have pleaded guilty, announced U.S. Attorney Ryan K. Patrick.
Michell Garcia, 36, and Ray Torres, 46, both of Houston, admitted they electronically submitted falsified vendor requests for payment to divert money to themselves from their former employer’s bank account. Torres pleaded guilty today, while Garcia pleaded guilty Feb. 16, 2018. A third member of the scheme - Sonja Martinez, 47 of Rosharon, entered her guilty plea Feb. 9, 2018.
All three worked at the Houston branch of a Florida-based security company that installed, tested and monitored fire and security systems. The Florida company had acquired the Houston branch from another company and Garcia, Torres and Martinez all worked at the predecessor company.
The company used third party vendors to install its alarm systems. Garcia, Torres and Martinez all worked in the Accounting Department and were responsible for paying the vendors and noting in the company’s accounting system. From November 2011 until May 2016, they all participated in a scheme to divert approximately $1,661,163 to themselves and their family members.
A computer in Texas was used to submit fraudulent vendor requests for payment to their employer’s out-of-state bank. The defendants then utilized an electronic bank token to release funds and transfer money from their employer’s account to their own bank accounts and the bank accounts of their relatives.
U.S. District Judge Keith Ellison set sentencing for Torres on May 10, 2018, while Garcia and Martinez are set for May 3 and April 26, 2018, respectively. All face up to five years in federal prison and a possible $250,000 fine. At the hearing today, the court also entered a money judgment against Torres for $174,647.48, while Garcia and Martinez have respective money judgements for $801,198.40 and $739,450.36.
All were permitted to remain on bond pending their sentencing hearings.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Montgomery man pleads guilty for role in federal drug conspiracyRead the Press Release
BECKLEY, W.Va. – A Montgomery man pled guilty today for his role in a drug trafficking conspiracy, announced United States Attorney Mike Stuart. Rory White, also known as “Dub,” 34, entered his guilty plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin and a quantity of oxycodone. White is one of 23 defendants indicted in June 2017 after a comprehensive investigation of drug trafficking in Southern West Virginia.
U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies. The investigation was led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service provided assistance throughout the investigation.
“The teamwork that law enforcement demonstrated to complete this investigation is outstanding,” said U.S. Attorney Stuart. “I can assure you that we will keep working together as a team to hold drug criminals accountable and take back our communities from this drug epidemic.”
White admitted that between October 2016 and June 28, 2017, he took part in a drug trafficking conspiracy with multiple participants. During this time period, White admitted to working with Cheyenne Fragale and others to distribute heroin and oxycodone in the Fayette County area. White also admitted that he distributed approximately 5,400 thirty mg oxycodone tablets and approximately 900 grams of heroin to Cheyenne Fragale and others. He further admitted that he knew Cheyenne Fragale and others intended to redistribute the pills and heroin. White faces at least five and up to 40 years federal prison when he is sentenced on June 6, 2018.
Several individuals implicated as a result of this investigation have entered guilty pleas to drug charges and are awaiting sentencing. Cheyenne Fragale and Macon Fragale, two brothers from Boomer in Fayette County, face a mandatory minimum of 10 years and up to life in federal prison when they are sentenced on March 14, 2018. Velarian Carter, of Beckley, faces a mandatory minimum of not less than 20 years and up to life in federal prison when he is sentenced on April 17, 2018. Dominic Copney, of Beckley, faces a mandatory minimum of five and up to 40 years in federal prison when he is sentenced on April 17, 2018. Detria Carter, of Beckley, faces a mandatory minimum sentence of not less than five and up to 40 years in federal prison when she is sentenced on April 24, 2018. Donald Scalise, of Montgomery, faces up to 20 years in federal prison when he is sentenced on April 25, 2018. Tiffany Ramsey, of Boomer, faces at least five years and up to 40 years in federal prison when she is sentenced on May 2, 2018. Shawn Akiem Anderson, of Mt. Hope, faces up to 10 years in federal prison when he is sentenced on May 29, 2018.
Karl Funderburk, of Teays Valley, who previously pled guilty to a gun charge, faces at least 5 years and up to life in federal prison for using and carrying a firearm during a drug trafficking crime when he is sentenced on May 29, 2018.
Assistant United States Attorney Timothy D. Boggess is in charge of these prosecutions. The White plea hearing was held before United States District Judge Irene C. Berger.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Monroe man sentenced to 10 years in prison for methamphetamine distributionRead the Press Release
MONROE, La. – United States Attorney Alexander C. Van Hook announced today that a man from Monroe was sentenced Wednesday to 120 months in prison for distribution of methamphetamine.
Devin S. McMillian, 27, of Monroe, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession with intent to distribute controlled substances. He was also sentenced to five years of supervised release. According to the September 14, 2017 guilty plea, Ouachita Parish Sheriff’s deputies conducted a traffic stop February 16, 2017 on the vehicle McMillian was driving. They found 23 grams of methamphetamine. McMillian made a call from prison to a friend after the arrest. He told the friend to travel to his residence and retrieve some items. Deputies overheard the call and searched the house. They found 754.9 grams of methamphetamine and one gram of marijuana.
The DEA and the Ouachita Parish Sheriff’s Office Special Crimes Apprehension Team conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields prosecuted the case.
Monroe County Woman Charged with Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kassandra Mattox, age 25, of Tobyhanna, Pennsylvania, was indicted on September 19, 2017, by a federal grand jury on multiple counts of making false statements to federally licensed firearms dealers. The indictment was unsealed yesterday following the arrest of Mattox.
According to United States Attorney David J. Freed, the indictment alleges that Mattox provided false information regarding the purchase of three firearms from Dunkelberger’s Sports Outfitter, in Stroudsburg, Monroe County, on October 24 and 27, 2016, and the purchase of three firearms from Pocono Mountain Firearms, in Scotrun, Monroe County, on October 27, 2016 and November 9, 2016.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, and the Pocono Mountain Regional Police Department. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the 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 all lesson learned since PSN launched in 2001.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Middle District of Tennessee Persists in Fight Against Elder Fraud and AbuseRead the Press Release
Attorney General Jeff Sessions and law enforcement partners emphasized today the importance of the fight against elder fraud and abuse as the Department of Justice announced the largest coordinated sweep of elder fraud cases in history. Joined by representatives of the FBI, FTC, Postal Inspection Service, National Association of Attorneys General, and Senior Corps, among others, the Attorney General discussed the filing of more than 80 federal elder fraud cases against over 250 defendants. The cases include criminal, civil, and forfeiture actions in more than 50 federal districts. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. The charged schemes caused over half a billion dollars of loss to more than one million victims. One of these cases is one of several elder fraud and abuse cases and investigations currently pending in the Middle District of Tennessee.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
“Many senior citizens experience circumstances that make them particularly vulnerable to fraud and abuse,” said U.S. Attorney Don Cochran. “This Office has been honored to participate in the Department of Justice’s Elder Justice Initiative, and to be home to one of its 10 regional Elder Justice Task Forces. We will continue to vigorously pursue and prosecute those who take advantage of seniors and the federal programs that serve them, and to coordinate with our state and local partners to fight elder fraud and abuse throughout our region.”
Over the last four years, this Office has obtained judgments, settlements, or indictments in over a dozen elder fraud and abuse cases. On March 30, 2016, the Department of Justice announced the formation of 10 regional Elder Justice Task Forces, including one in the Middle District of Tennessee. These teams have worked to bring together federal, state, and local prosecutors, law enforcement, and oversight agencies to provide community outreach and law enforcement training relating to elder fraud and abuse issues.
Since its formation, the Middle District of Tennessee’s Elder Justice Task Force has met regularly to discuss issues facing senior citizens. The Task Force includes representatives from, among others, the FBI, HHS, TBI, Tennessee Commission on Aging and Disability, and the Tennessee Department of Health. In light of the recently enacted Elder Abuse Prevention & Prosecution Act, the Task Force will be redoubling its law enforcement training and community outreach efforts in the coming months.
As part of this work, the Middle District of Tennessee has launched an Elder Justice Task Force page on its website. The page contains an overview of the Department of Justice’s Elder Justice Initiative, links to elder justice resources provided by our State partners in Tennessee, resources for victims seeking legal assistance, and a list of recent elder fraud and abuse matters resolved in the Middle District of Tennessee.
Anyone wishing to report elder fraud and abuse should complete the Elder Justice Complaint Form on the Elder Justice Task Force webpage, and submit the completed form to [email protected], or mail it to our Nashville Office, Attn: Elder Justice Coordinator.
Miami-Area Man Sentenced to Five Years in Prison for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A Miami-area man was sentenced to 60 months in prison today for his role in a $63 million health care fraud scheme involving a now-defunct community mental health center located in Miami that purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness.
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 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 Regional Office made the announcement.
Samuel Konell, 70, of Boca Raton, Florida, was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida. Judge Martinez also ordered Konell to pay $9,921,726 in restitution and to forfeit certain substitute assets, including several pieces of jewelry, in partial satisfaction of a personal money judgment entered against the defendant in the amount of $432,829. Konell pleaded guilty on Nov. 21, 2017, to one count of conspiracy to defraud the United States and receive health care kickbacks.
As part of his guilty plea, Konell admitted that from approximately January 2006 through June 2012, he received kickbacks and/or bribes in return for referring Medicare beneficiaries from the Miami-Dade state court system to Greater Miami Behavioral Healthcare Center Inc. (Greater Miami) to serve as patients. He admitted that he coordinated with criminal defendants in the state court system to obtain court orders for mental health treatment in lieu of incarceration so that he could refer those individuals to Greater Miami to serve as patients in return for kickbacks and/or bribes. Konell further admitted that he did so knowing that certain of those individuals were not mentally ill or otherwise did not meet the criteria for PHP treatment.
In addition, Konell admitted that he and his co-conspirators at Greater Miami took steps to disguise the true nature of the kickbacks and/or bribes that Greater Miami paid to Konell and other patient brokers. Specifically, Konell was placed on the Greater Miami payroll to make the kickbacks and/or bribes appear as though they were legitimate salary payments, he admitted. Konell further admitted that he was originally paid a flat monthly rate that was based on the number of patients he referred to Greater Miami from the state court system, and when Konell referred more patients to Greater Miami, his co-conspirators found ways to pay him over and above his regular kickback payments, including by providing him with holiday bonuses.
In furtherance of the kickback conspiracy, Konell made representations to judges and others in the Miami-Dade state court system that the individuals he referred to Greater Miami received medically necessary PHP services from Greater Miami when in reality such services were not always needed, he admitted.
According to plea documents, Konell’s co-conspirators caused the submission of over $63 million in false and fraudulent claims to Medicare. These claims were based on kickbacks and/or bribes paid to Konell and others and were for services that were medically unnecessary, were not eligible for Medicare reimbursement or were never provided by Greater Miami. Konell admitted that his participation in the Greater Miami scheme resulted in the submission of claims to Medicare totaling between at least approximately $9.5 and $25 million.
Eleven other individuals have pleaded guilty and have been sentenced for their roles in the scheme, including the owner of Greater Miami, three administrators and seven patient brokers.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Former Senior Trial Attorney Christopher J. Hunter and Trial Attorneys Elizabeth Young and Leslie Wright of the Fraud Section prosecuted the case. Assistant U.S. Attorney Adrienne Rosen of the Southern District of Florida is handling the forfeiture aspects of the case.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Miami-Area Man Sentenced to Five Years in Prison for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A Miami-area man was sentenced to 60 months in prison today for his role in a $63 million health care fraud scheme involving a now-defunct community mental health center located in Miami that purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness.
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 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 Regional Office made the announcement.
Samuel Konell, 70, of Boca Raton, Florida, was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida. Judge Martinez also ordered Konell to pay $9,921,726 in restitution and to forfeit certain substitute assets, including several pieces of jewelry, in partial satisfaction of a personal money judgment entered against the defendant in the amount of $432,829. Konell pleaded guilty on Nov. 21, 2017, to one count of conspiracy to defraud the United States and receive health care kickbacks.
As part of his guilty plea, Konell admitted that from approximately January 2006 through June 2012, he received kickbacks and/or bribes in return for referring Medicare beneficiaries from the Miami-Dade state court system to Greater Miami Behavioral Healthcare Center Inc. (Greater Miami) to serve as patients. He admitted that he coordinated with criminal defendants in the state court system to obtain court orders for mental health treatment in lieu of incarceration so that he could refer those individuals to Greater Miami to serve as patients in return for kickbacks and/or bribes. Konell further admitted that he did so knowing that certain of those individuals were not mentally ill or otherwise did not meet the criteria for PHP treatment.
In addition, Konell admitted that he and his co-conspirators at Greater Miami took steps to disguise the true nature of the kickbacks and/or bribes that Greater Miami paid to Konell and other patient brokers. Specifically, Konell was placed on the Greater Miami payroll to make the kickbacks and/or bribes appear as though they were legitimate salary payments, he admitted. Konell further admitted that he was originally paid a flat monthly rate that was based on the number of patients he referred to Greater Miami from the state court system, and when Konell referred more patients to Greater Miami, his co-conspirators found ways to pay him over and above his regular kickback payments, including by providing him with holiday bonuses.
In furtherance of the kickback conspiracy, Konell made representations to judges and others in the Miami-Dade state court system that the individuals he referred to Greater Miami received medically necessary PHP services from Greater Miami when in reality such services were not always needed, he admitted.
According to plea documents, Konell’s co-conspirators caused the submission of over $63 million in false and fraudulent claims to Medicare. These claims were based on kickbacks and/or bribes paid to Konell and others and were for services that were medically unnecessary, were not eligible for Medicare reimbursement or were never provided by Greater Miami. Konell admitted that his participation in the Greater Miami scheme resulted in the submission of claims to Medicare totaling between at least approximately $9.5 and $25 million.
Eleven other individuals have pleaded guilty and have been sentenced for their roles in the scheme, including the owner of Greater Miami, three administrators and seven patient brokers.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Former Senior Trial Attorney Christopher J. Hunter and Trial Attorneys Elizabeth Young and Leslie Wright of the Fraud Section prosecuted the case. Assistant U.S. Attorney Adrienne Rosen of the Southern District of Florida is handling the forfeiture aspects of the case.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
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.
Mi Salud Program Technician Sentenced to Four Years in Prison in Bribery and Health Care Fraud CaseRead the Press Release
SAN JUAN, P.R. – On February 22, 2018, defendant Karen Curet-Nieves was sentenced to a term of 48 months (four years) of imprisonment, and two years of supervised release term by District Judge Pedro A. Delgado for her participation in a bribery and health care fraud scheme that occurred from approximately July 2014 through October 2015 at the Programa de Asistencia Médica office in Santurce, Puerto Rico, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Curet-Nieves was also ordered to pay restitution in an amount of twenty thousand dollars ($20,000) to the United States Department of Health and Human Services and to complete 100 hours of community service. Curet-Nieves previously entered a guilty plea to three separate counts charging her with bribery, conspiracy to commit health care fraud, and aggravated identity theft in violation of 18 U.S.C. §§ 666(a)(1)(B), 1347, 1349, and 1028A.
Curet-Nieves was a Program Technician at the Programa de Asistencia Médica office in Santurce who evaluated and determined eligibility of Mi Salud applicants, input data in the Medicaid Integrated Technology Initiative (“MEDITI”) system, and fraudulently approved Mi Salud benefits for otherwise ineligible participants in exchange for cash payments. The fraudulent enrollment of these health plan participants caused federal funds to be paid to Managed Care Organizations for monthly premiums and utilization of the health care plans.
Curet-Nieves received the names, Social Security numbers, birth dates, and addresses of individuals from co-conspirators for purposes of fraudulently enrolling individuals into the health care benefit programs. In exchange for a cash bribe, Curet-Nieves fraudulently enrolled individuals into the Mi Salud health care benefits program with the MEDITI database without conducting an interview and without determining the individual’s eligibility. Curet-Nieves approved twenty to thirty unqualified individuals per week into the Mi Salud program for a payment of $10.00 each.
On February 24, 2016, a Federal grand jury indicted Curet-Nieves, two other agents of the Programa de Asistencia Médica, and five additional individuals that participated in this bribery and health care fraud scheme. Luis González-Cordova, a clerk in the Santurce office, pled guilty on August 25, 2016 to bribery, conspiracy to commit health care fraud, and aggravated identity theft in violation of 18 U.S.C. § 666(a)(1)(B), 1347, 1349, and 1028A. González-Cordova was sentenced on May 26, 2017, to twenty-four (24) months and one day of imprisonment and ordered to pay twenty thousand dollars ($20,000) in restitution to the United States Department of Health and Human Services.
Orlando Negrón-Bonilla, a program technician in the Santurce office, pled guilty on November 9, 2016 to aggravated identity theft in violation of 18 U.S.C. § 1028A. Negrón-Bonilla was sentenced on March 17, 2017 to twenty-four (24) months of imprisonment and ordered to pay twenty thousand dollars ($20,000) in restitution to the United States Department of Health and Human Services.
The remaining five individuals, Ruben Escalera-Rivera, Perfecto De León-Toribio, Luis Caceres-De León, Luis Ángel García-Rosa, and Andrea Jiménez-De Jesús, acted as “runners,” soliciting and referring individuals to González-Cordova for their fraudulent entry into the Medicaid health care benefit programs. Each entered guilty pleas to conspiracy to commit health care fraud, a felony, in violation of 18 U.S.C. §§ 1347, 1349.
The runners would recruit individuals to be fraudulently enrolled into the Medicaid health care benefits programs in exchange for cash bribes and monetary payments without personally meeting with the individuals to determine their eligibility as required by PR-DOH procedures. The runners delivered cash bribes to González-Cordova and upon receiving the personal identification information, including names, social security numbers, dates of birth, and addresses, from the runners, González-Cordova would provide it to Curet-Nieves or Negrón-Bonilla by text or handwritten note for entry into the MEDITI database. Curet-Nieves and Negrón-Bonilla fraudulently certified the participants as eligible to receive Medicaid health care benefits.
The Medicaid Program (“Medicaid”) is a federal health benefit program intended to provide benefits to low-income individuals and families. Medicaid is monitored and funded by the United States Department of Health and Human Services (“HHS”) through its agency, the Centers for Medicare and Medicaid Services (“CMS”). In the Commonwealth of Puerto Rico, Medicaid is referred to in Spanish as “Mi Salud,” or “Plan de Salud del Gobierno” (PSG). Mi Salud beneficiaries included Medicaid participants and “state only funded health care recipients,” commonly referred to as “Commonwealth participants.” An individual’s eligibility for Medicaid or Commonwealth health care benefits depends on certain eligibility requirements.
The investigation was led by the U.S. Department of Health and Human Services-Office of Inspector General, with the collaboration of the Federal Bureau of Investigation, United States Secret Service, United States Postal Inspection Service, and the Puerto Rico Department of Health Medicaid Anti-Fraud Unit, and prosecuted by Assistant U.S. Attorney Seth A. Erbe.
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