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5 February 2018
California and Ohio Residents Plead Guilty to Trafficking 15 Kilograms of MethamphetamineRead the Press Release
A California resident and an Ohio resident pled guilty last week to federal charges involving their participation in trafficking over fifteen kilograms of methamphetamine.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Defendants Ricardo Zavala, 24, of California, and Jeffery Clevenger, 65, of Ohio, pled guilty to one count of conspiracy to possess with intent to distribute methamphetamine, in violation to Title 21, United States Code, Sections 846 and 841(b)(1)(A). According to court documents, the defendants arranged to travel to the Southern District of Florida to sell more than fifteen kilograms of methamphetamine. On November 20, 2017, the defendants traveled to a hotel located in Broward County. The defendants subsequently transported the narcotics and were taken into custody.
At sentencing, each defendant faces a mandatory minimum sentence of ten years imprisonment and a maximum sentence of up to life imprisonment. The sentencing hearings are set for April 12, 2018, at 10:30 and 11:00 A.M. before Senior U.S. District Judge William Zloch in Fort Lauderdale.
Mr. Greenberg commended the investigative efforts of ICE-HSI and BSO. This case is prosecuted by Assistant U.S. Attorney Randy Katz.
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.
California Man Sentenced to Five Years for Federal Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Jamell Damian Harris, Jr., 38, of Los Angeles, Calif., was sentenced this afternoon in federal court in Albuquerque, N.M., to 60 months in prison for his heroin trafficking conviction. Harris will be on supervised release for four years after completing his prison sentence.
The DEA arrested Harris in July 2017, after seizing approximately 470 grams (1.04 pounds) of heroin from him during an interdiction investigation at the Amtrak Train Station in Albuquerque. The criminal complaint setting forth the charge against Harris stated that the heroin was concealed in a suitcase belonging to Harris’ travel companion.
Harris subsequently was indicted on Aug. 8, 2017, and was charged with conspiracy and possession of heroin with intent to distribute on July 13, 2017, in Bernalillo County, N.M.
On Sept. 27, 2017, Harris pled guilty to Count 2 of the indictment charging him with possession of heroin with intent to distribute. In entering the guilty plea, Harris admitted transporting approximately 390.90 grams of heroin from Victorville, Calif., to Albuquerque on the Amtrak train by concealing the heroin inside a shopping bag of men’s clothing in a suitcase belonging to his traveling companion. Harris also admitted that he intended to give the heroin to another individual for further distribution when he reached his final destination of Chicago.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Rumaldo R. Armijo prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Bowling Green Physician Guilty of Conspiring to Unlawfully Distribute and Dispense Controlled Substances and Health Care FraudRead the Press Release
BOWLING GREEN, Ky. – United States Attorney Russell M. Coleman today announced the guilty plea by former Warren County, Kentucky, physician Charles Fred Gott to multiple charges of unlawful distribution and dispensing of controlled substances and health care fraud, in United States District Court, before United States District Judge Greg N. Stivers.
Charles Fred Gott, age 66, a formerly licensed physician in the Commonwealth of Kentucky, was initially indicted by grand jury in Bowling Green on June 10, 2015. According to the terms of the plea agreement, Gott has agreed to serve a sentence of 96 months in prison, and pay restitution in an amount to be determined at sentencing. Gott is scheduled for sentencing by Judge Stivers, in Bowling Green, on May 7, 2018, at 9am.
Today’s plea agreement covers criminal activity between 2006 and September 19, 2013, in Warren County, Kentucky. In court today, Gott admitted to conspiring with members of his office and others to knowingly and intentionally distribute and dispense, not for a legitimate medical purpose in the usual course of professional practice, Schedule II, Schedule III and Schedule IV controlled substances. Included are 14 counts of unlawfully dispensing Methadone and Fentanyl – Schedule II controlled substances, Hydrocodone – a Schedule III controlled substance, and Clonazepam and Oxymorphone – Schedule IV controlled substances – between June 10, 2010 and September 19, 2013.
Further, between 2006 and September 19, 2013, Gott admitted to falsely and fraudulently billing various health care benefit programs, including Medicare and Medicaid, among others, by submitting claims for office visits at a higher code than the service actually provided for patients under his care.
Also, during that same period, Gott falsely and fraudulently billed various health care benefit programs, including Medicare and Medicaid, among others, by submitting claims for medically unnecessary spirometry tests for patients and electrocardiogram (EKG/ECG) tests for patients.
Gott is further subject to forfeiture to the United States government any and all proceeds derived from unlawful activity as a result of the offenses and forfeiture of his license to practice medicine.
This case is being prosecuted by Assistant United States Attorneys Mac Shannon, Lettricea Jefferson-Webb and Joseph Ansari. This case was investigated by the Warren County Drug Task Force, Drug Enforcement Administration (DEA) Drug Diversion Section, the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), Kentucky State Police, Office of the Attorney General, Medicaid Fraud and Abuse Division and Federal Bureau of Investigation (FBI). The Warren County Drug Task Force, led by Director Tommy Loving, along with detectives from KSP’s West Drug Enforcement Branch, were instrumental in identifying and developing this case for federal prosecution.
Bookkeeper Admits to Embezzling Client FundsRead the Press Release
HOUSTON – A local woman has entered a guilty plea to 12 counts of mail and wire fraud and four counts of filing a false tax return, announced U.S. Attorney Ryan K. Patrick.
Gwendolyn M. Berry admitted that from September 2008 through Oct. 1, 2014, she took funds in excess of $1.7 million from a family for whom she provided bookkeeping services. Berry stole from the education accounts of the minor children and other family bank accounts and it to make payments for the benefit of herself and her family.
Berry has also admitted she filed a false federal tax return for the tax years 2011 through 2014. In each of these tax returns, Berry omitted reporting some of her income and falsely claimed a refund.
Sentencing is set for May 4, 2018, before U.S. District Judge Gray Miller. At that time, she faces up to 20 years in federal prison for each of the fraud counts as well as another three years for the tax convictions.
Berry was permitted to remain on bond pending that hearing.
The U.S. Secret Service and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Biloxi Man Pleads Guilty to Possession of Methamphetamine with Intent to DistributeRead the Press Release
Gulfport, Miss. – Antonio Michael Ross, 49, of Biloxi, Mississippi, pled guilty before U.S. District Judge Louis Guirola, Jr. to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Thomas M. Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
On March 31, 2017, Antonio Michael Ross approached a safety checkpoint in d’Iberville, Mississippi. As he approached the checkpoint, he took evasive action which was observed by police officers. As a result, officers attempted to initiate a traffic stop. Ross did not immediately stop his vehicle, sped up and ran a stop sign. As he was fleeing, Mr. Ross threw a bag out of the vehicle which later was discovered to contain over 100 grams of pure methamphetamine.
Ross will be sentenced on May 8, 2018 by Judge Guirola, and faces a maximum penalty of life in prison and a $10 million fine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Berrien County Resident Charged with Federal Tax EvasionRead the Press Release
Lori Lynn Pawielski admits embezzling more than $1.9 million and failing to pay $511,433 in federal income tax
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Lori Lynn Pawielski, a resident of Buchanan, Michigan, has been charged with tax evasion. Pawielski has agreed to plead guilty to one count of attempting to evade or defeat tax and pay the Internal Revenue Service additional tax due and owing for tax years 2009 through 2015.
In a Felony Information filed in federal court, the government alleged that, in March 2016, Pawielski willfully attempted to evade and defeat income tax due and owing to the United States for calendar year 2015 by preparing and signing a false and fraudulent Form 1040 tax return. The charge alleges that the Form 1040 tax return falsely claimed that her taxable income was $149,160 when in fact it was $330,166. The charge also alleges that the tax due and owing for calendar year 2015 was $84,516, not $28,941 as reported on the tax return.
If convicted, Pawielski faces up to five years in federal prison and a fine of $250,000.
In a written plea agreement filed with the Court, Pawielski admitted embezzling more than $1.9 million from her former employer between 2009 and 2016 by writing 271 checks to herself without her employer’s authorization. She further admitted that she concealed her embezzlement by altering the company’s accounting software to make it appear those checks were issued to suppliers. Pawielski admitted that she failed to report the additional income to the IRS on her 2009-2015 federal tax returns. She has agreed to pay restitution to the IRS, currently estimated at $511,433, and restitution to her former employer in the amount of $1,962,611.
This matter was investigated by the Internal Revenue Service Criminal Investigation division and is being prosecuted by Assistant U.S. Attorney Christopher O’Connor.
An arraignment and plea hearing is scheduled for February 15, 2018. The charge in a felony information is merely an accusation, and the defendant is presumed innocent until proven guilty in court.
END
Attorney General Sessions Will Travel to Tampa on Wednesday to Deliver Remarks on Efforts to Combat Drug Trafficking and End the Opioid CrisisRead the Press Release
WHO
Attorney General Jeff Sessions
WHATAttorney General Jeff Sessions will deliver remarks on efforts to combat drug trafficking and end the opioid crisis.
WHEN
Wednesday, February 7, 2018
12:50 p.m. EST
U.S. Attorney's Office for the Middle District of Florida
Press Room (Check-in: 32nd floor // Press will be escorted up to 35th floor)
400 N. Tampa St.
Tampa, FL 33602
OPEN PRESS
(Final access and Camera Preset: 12:10 p.m. EST // Final access time for print media: 12:40 p.m. EST)
NOTE: All media must RSVP and present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. The RSVP and any inquiries regarding logistics should be directed to Kelly Laco in the Office of Public Affairs at (202) 305-5219 or [email protected]. Please RSVP with the email address of the person(s) attending the event, so that we may reach them directly if details change. Media may begin arriving at the USAO lobby on the 32nd floor at 11:45 a.m. for a security screen. ALL gear must be in place in the press room by 12:10 p.m. EST. Note--the AG will not be taking questions upon the conclusion of his remarks.
Albuquerque Man Sentenced to Seven Years for Armed Robbery of Pizza Delivery PersonRead the Press Release
ALBUQUERQUE – Xavior Akina, 21, of Albuquerque, N.M., was sentenced today in federal court to 84 months in prison for violating the Hobbs Act by robbing a pizza delivery person on March 7, 2016. Akina will be on supervised release for three years after completing his prison sentence.
Akina was charged in a three-count indictment filed on May 10, 2016. The indictment charged Akina with two counts of violating the Hobbs Act, the first on March 6, 2016, by robbing a Domino’s Pizza employee at gunpoint, and the second on March 7, 2016, by robbing a Papa John’s Pizza employee at gunpoint. It also charged Akina with brandishing a firearm during the two crimes of violence, and alleged that Akina committed the offenses in Bernalillo County, N.M.
On July 20, 2017, Akina pled guilty to the armed robbery of a Papa Johns pizza delivery person and to brandishing a firearm during the robbery. In entering the guilty plea, Akina admitted that on March 7, 2016, he threatened the victim with a firearm and demanded money from the victim while the victim was delivering pizza.
This case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney Eva Fontanez.
Albuquerque Man Sentenced to Prison for Federal Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – Richard J. Hall, 32, of Albuquerque, N.M., was sentenced today in federal court to 63 months in prison followed by three years of supervised release for his conviction on a bank robbery charge.
Hall was arrested on April 6, 2017, on a criminal complaint charging him with robbing the Wells Fargo Bank located at 1800 Eubank Blvd. NE, in Albuquerque, on March 30, 2017. According to the complaint, Hall robbed the Wells Fargo Bank by handing a bank teller a note in which he threatened to hurt someone if the bank teller did not give Hall money.
Hall subsequently was indicted on April 26, 2017, on a bank robbery charge. On June 13, 2017, Hall pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of the FBI. Assistant U.S. Attorney George C. Kraehe prosecuted the case.
"Freedom Fighter Bandit" Arrested and Charged with Bank RobberyRead the Press Release
Nilsa Marie Urena, 25, of Philadelphia, Pennsylvania, was charged with bank robbery yesterday, after being arrested near the Greyhound Bus Terminal in Nashville on Saturday, following an earlier robbery of the Upper Cumberland Credit Union in Crossville, Tennessee.
According to allegations in the criminal complaint, on Saturday, February 3, 2018, a woman entered the Upper Cumberland Federal Credit Union and handed a teller a note which read, “Bomb [;] 20 minutes [;] no cops [;] Allah.” The robber was given $1,000 in $100 bills, after which she left the bank and walked toward a nearby apartment complex, where another bank employee observed her to be changing clothes.
During the immediate investigation by responding officers from the Crossville Police Department and the Cumberland County Sheriff’s Department, officers determined that a suspect matching the description of the robber was seen entering a vehicle at a nearby grocery store. The investigation led officers to an address where the vehicle was registered, where they learned that the vehicle’s owner operated a car service and was currently transporting a client to Nashville.
Officers called the owner of the vehicle and surreptitiously alerted him to the possibility that he was transporting a bank robbery suspect. It was determined that the rider’s destination was the Greyhound Bus Terminal in Nashville and the driver continued to send text message updates to the officers, updating them with the destination and estimated time of arrival.
The complaint alleges that after the suspect was dropped off at the Greyhound Terminal, she was taken into custody at a market across the street by officers from the Nashville Metropolitan Police Department and the Tennessee Highway Patrol.
The complaint also alleges that Urena was being sought by the FBI for her involvement in multiple bank robberies in Georgia and had been dubbed by the media as the “Freedom Fighter Bandit.” There was also an active warrant for Urena charging her with one of those robberies in Douglas County, Georgia.
If convicted, Urena faces up to 20 years in prison and a $250,000 fine.
U.S. Attorney Cochran commended the outstanding response and investigation by the Crossville Police Department; the Cumberland County Sheriff’s Department; the FBI; the Metropolitan Nashville Police Department; and the Tennessee Highway Patrol. U.S. Attorney Cochran also commended the actions of the witnesses and the driver of the vehicle who provided invaluable assistance to law enforcement. Assistant U.S. Attorney Thomas J. Jaworski is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
2 February 2018
Wilmington Man Sentenced to More Than 18 Years for Drug Distribution and Firearm ChargesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday in federal court, Senior United States District Judge W. Earl Britt sentenced DARIUS J. WILLIAMS, 38, of Wilmington, to 225 months of imprisonment followed by 6 years of supervised release.
WILLIAMS was named in an Indictment filed on July 19, 2017 charging him with Distribution of a Quantity of Heroin. On September 27, 2017, WILLIAMS was also named in a two-count Criminal Information. Count 1 charged Conspiracy to Distribute and Possession with Intent to Distribute a Quantity of Heroin, Cocaine Base, and Marijuana. Count 2 charged Possession of a Firearm by Felon. On September 27, 2017, WILLIAMS pled guilty to Counts 1 and 2 of the Criminal Information.
On February 21, 2017, agents with the Federal Bureau of Investigation (FBI) observed an individual using heroin in a restaurant parking lot in Wilmington. His sleeve was rolled up, exposing his forearm, and 87 dosage units of heroin were in his lap. The man informed the agents he was on federal supervised release. The agents seized the evidence and took him into custody where he was debriefed. Agents learned the individual was living in a federal halfway house, where he had previously purchased heroin from WILLIAMS, who was also on federal supervised release and living in the same house.
On February 23, 2017, the man assisted the FBI in their investigation of WILLIAMS. At the FBI’s instruction, and with their supervision, the man traveled to WILLIAMS' residence in Wilmington. Upon arrival, he purchased 351 dosage units (9 grams) of heroin. Before leaving, WILLIAMS told the man to call whenever more heroin was needed. On June 26, 2017, agents coordinated with federal probation to place WILLIAMS under arrest at the probation office in Wilmington.
Following WILLIAMS' detention, law enforcement monitored a number of phone calls between WILLIAMS and associates under the belief that WILLIAMS was attempting to lead them to a location where narcotics were stored. Law enforcement officers observed the associates park their vehicle near the address identified as belonging to WILLIAMS' mother. The associates were detained upon leaving. An examination of the vehicle recovered two plastic bags containing 91.78 grams of Methylenedioxymethamphetamine (MDMA), 33.68 grams of cocaine, 62.78 grams of marijuana, and a loaded .380 pistol which was later determined to be stolen.
The Federal Bureau of Investigation conducted the criminal investigation of this case. Assistant United States Attorney Bradford Knott handled the prosecution of this case for the government. At sentencing, Judge Britt instructed that, among other reasons, WILLIAMS’S recidivism with serious drug trafficking felonies served as a basis for the sentence imposed.
Upshur County residents admit to their roles in a methamphetamine distribution operationRead the Press Release
LKINS, WEST VIRGINIA – Two Buckhannon, West Virginia residents have admitted today to conspiring with others to distribute methamphetamine, United States Attorney Bill Powell announced.
Amanda Mae Bachman, also known as “AB,” age 33, and Steven Larry Harper, also known as “Skip,” age 40, each pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Bachman and Harper admitted to conspiring with others to distribute more than 50 grams of methamphetamine. The crime occurred in Upshur County and elsewhere from March 2016 to September 2017.
Bachman and Harper each face up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
United States Withdraws Appeal of Medical Malpractice JudgmentRead the Press Release
Harrisburg - The United States Attorney’s Office for the Middle District of Pennsylvania announced that it withdrew an appeal of an April 20, 2017 district court decision that included findings of fact and conclusions of law, and its verdict and judgment on May 9, 2017.
In this FTCA medical malpractice action, the district court entered a verdict in favor of Plaintiffs Christina Late and Nathan Armolt, individually, and as parents and natural guardians of D.A., a minor. The court awarded plaintiffs $103,967.10 in past medical expenses; $5,000,000 in past and future noneconomic damages; and $3,553,616 in lost earnings and fringe benefits. The court also awarded plaintiffs future medical expenses at a present value of $9,309,503.90 and at a future value of $32,984,383.50.
The future value payment of $32,984,383.50 will be provided to the Clerk’s Office for the Middle District of Pennsylvania. The Clerk will deposit the money in an interest bearing account. The Clerk will then make yearly payments to the Plaintiffs per the Court’s schedule for the next 74 years. All interest earned in the account will be returned to the United States at the end of the 74 years or when the minor dies, whichever occurs first.
According to United States Attorney David J. Freed, the United States often files protective notice of appeal, while the Solicitor General’s Office determines whether an appeal should be continued. In this case, the Solicitor General’s Office determined that an appeal should not proceed. Because of attorney-work product and deliberative-process considerations, no further information can be provided about this decision.
“The United States Attorney’s Offices throughout the country are tasked with defending government employees accused of medical malpractice, and there are times when district courts will find our employees negligent,” said U.S. Attorney Freed. “Our mission, however, is to defend the government’s employees and to limit damages with the assistance of medical and economic experts. We respect the court’s decision in this matter, and wish nothing but the best for the minor child and his parents.”
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U.S. Attorney for the District of Minnesota Greg Brooker Delivers Remarks at the Department of Justice’s Human Trafficking SummitRead the Press Release
Remarks as prepared for delivery.
Good Morning. Thank you to Acting Deputy Assistant Attorney General Richard Downing for the introduction and thank you to Attorney General Sessions and Associate Attorney General Brand for hosting this Summit. As noted, I am Greg Brooker, the United States Attorney for the District of Minnesota. I am pleased to be here today to talk about an issue that my office is deeply committed to, and that the Department has placed such a high priority on: Prosecuting Human Trafficking Cases.
It is timely that this Summit comes at the end of Human Trafficking Awareness Month and with the Super Bowl taking place just two days from now in my home town of Minneapolis. I would like to take this opportunity to highlight trends and cases in my federal district, as well as talk about some of the proactive work we have done to prepare for a potential uptick in human trafficking during one of the world’s largest sporting events.
Sex trafficking is a market-driven enterprise, and empirical data show that a major sporting event like the Super Bowl can bring about an increase in online sex ads on Craigslist, Backpage, and other places. We also know from recent research studies that those who purchase commercial sex are not confined to one demographic group -- they come from all walks of life. According to a recent survey of 750 men in Minnesota, most sex buyers are men between the ages of 30 & 60. More than 70 percent of them are white, and half are married. Nearly 70 percent have kids and almost half make $50,000 or more a year.
A recent assessment by the Human Smuggling and Trafficking Center (HSTC) concludes that high profile events with large crowds, like the Super Bowl, can be attractive targets for sex traffickers, and we know that there is a short-term uptick in advertisements during this period.
In preparation for the Super Bowl in Minneapolis, an Anti-Sex Trafficking Team with over 40 organizations was created to map out strategies to crack down on sex trafficking - from all angles - across the entire state. The Team is led by Hennepin County, which is Minneapolis, and Ramsey County, which is St. Paul. And the Team includes the US Attorney’s Office, Carlson Family Foundation and the Women’s Foundation of Minnesota, which have both been leaders on this issue. The Team also includes representatives from nonprofits, hospitals, private businesses, and law enforcement entities and has been supported by the National Football League.
So what has this Team been up to? We have developed a plan that includes additional emergency shelter beds, increased street outreach and a hotline to report trafficking related tips. We have created a 24-hour, fully staffed hotline to ensure victims can immediately find safe shelter. Service providers have worked with city governments to relax zoning requirements if needed during the timeframe of the Super Bowl to ensure that no one will be denied space in a shelter in the cold winter months in Minnesota. What is especially unique is that this Team not only brought together private and public sector stakeholders, but it includes the key voices of sex trafficking survivors.
The Team designed multiple public awareness campaigns, specifically for the Super Bowl, including the “Don’t Buy it” campaign, designed to educate men and boys about sex trafficking. This campaign aims to focus on the demand side.
Here’s a short clip of the “Don’t Buy It” Public Service Announcement running in Minnesota and Online:
“Don’t Buy it” https://www.youtube.com/watch?v=AVE4Z2RXsCc
The Team also created a campaign aimed at preventing at-risk youth from being trafficked. The “I Am Priceless” campaign is geared toward youth between the ages of 8 and 12 who are at risk for being trafficked. The Team sought the input of youth who are trafficking survivors to develop the campaign, which is focused on reaffirming self-esteem and self-worth. These campaign ads are on posters at malls, on bus shelters, murals, billboards, and include a 30-second radio spot. They are being featured on social media apps like Instagram, Facebook, Snapchat and YouTube. Here’s a short clip of the “I am Priceless” video:
“I Am Priceless” https://vimeo.com/240218675
In the months leading up to the Super Bowl, bus drivers, hotel workers and all 10,000 Super Bowl volunteers received training on how to identify sex trafficking when they see it and where to report it. In addition, U.S. Bank has taken the lead to train internal investigators and analysts to identify trends and red flags that may be human trafficking indicators – this new Team is reporting directly to law enforcement.
A collaborative team of dozens of local police departments and federal agencies, led primarily by Homeland Security Investigations, FBI, and the Minneapolis Police Department, has made great efforts to plan and execute proactive strategies such as coordinating targeted sex trafficking stings during the week of the Super Bowl. And multiple arrests have been made.
Human trafficking, of course, is not limited to large-scale events like the Super Bowl. Sadly, these crimes against human rights occur 365 days a year. It is a prevalent and persistent problem that shows its face in many disturbing ways, yet often remains hidden in plain sight.
Many people wouldn’t think of Minnesota as one of the prime locations for human trafficking; however, the FBI has identified the Twin Cities as the nation’s 13th largest location for child sex trafficking in the country. Minnesota is unique in its geography, its diverse populations and its major industries. The Twin Cities represent a large metropolitan area that is home to more than a dozen Fortune 500 companies, a major international airport, the largest shopping mall in the United States, as well as multiple major league sports teams and event venues. We also share our northern border with Canada, we have an international shipping port in Duluth, and through our interstate corridors we are directly connected to other large Midwestern cities such as Chicago, St. Louis, and Milwaukee. The State has 11 federally recognized Indian Tribes and is home to many immigrant groups, including sizable Hmong, Somali, Ethiopian, and Liberian communities. Minnesota pretty much has everything. However, the things that make our state unique are also the things that present human trafficking vulnerabilities. Minnesota is also nationally recognized as a leader on human trafficking awareness – its Safe Harbor Law served as a template for federal legislation. This is why the fight against human trafficking is a crucial mission that none of us can afford to ignore or to only emphasize during a Super Bowl.
In 2016, the district was one of only six districts designated as an Anti-Trafficking Coordination Team (ACTeam) location. This is a collaborative initiative among my office, the FBI, the Department of Homeland Security and the Department of Labor. Through this initiative, we focus on developing high impact human trafficking investigations and prosecutions, as well as developing strong partnerships with victim service providers and state and local law enforcement partners.
I am proud of the depth and breadth of the work of my office, in conjunction with our partners in federal, tribal, state, and local law enforcement. Together we have investigated and prosecuted trafficking cases ranging from large-scale, transnational organized criminal enterprises, to individual traffickers who target minor victims, to labor traffickers who prey on vulnerable, often foreign-born populations.
We know that as people go about their busy lives they usually aren’t paying attention to indicators of human trafficking, so these crimes often occur in plain sight. That’s why through our federal and state law enforcement task forces in Minnesota, we have trained those on the front lines to identify signs of human trafficking and to report it to law enforcement. Throughout the year, we are focusing our training efforts on employees who work in hotels, airports, casinos and other hospitality and entertainment occupations. We are also reaching out to schoolteachers and administrators, bankers, transportation industry workers, hospital workers and faith communities. These trainings throughout Minnesota have resulted in actionable tips that have contributed directly to the successful investigation and prosecution of human traffickers. We have also collaborated with an organization called “COAST” – Club Operators Against Sex Trafficking – to provide education and training to owners and employees of adult entertainment clubs who may be most likely to encounter the signs of a sex trafficking victim – currently my office is investigating such tips now.
Let me highlight a handful of the cases we’ve handled that are result of some of these tips.
Last year, in a wealthy suburb of St. Paul, local police officers encountered a woman wandering the streets at night, bloody, beat up and frail. She was heading in the direction of the airport. They stopped and spoke to the woman and because of their recent training; the officers were able to quickly recognize that the woman was a victim of human trafficking and were able to access the appropriate help and resources for her, including involving Homeland Security Investigations from the outset. The subsequent investigation revealed that the woman endured horrific abuse at the hands of the defendant, Lili Huang. In addition to being held against her will and forced to work up to 18 hours a day, the victim was kicked, punched, grabbed by her hair and threatened with knives. The victim told law enforcement that she hid clumps of her hair, which had been grabbed and torn out by the defendant, under her mattress so that she wouldn’t be forced to eat it. My Office worked hand in hand with our state and local law enforcement partners to achieve a successful prosecution of the defendant, who was ultimately sentenced to more than a year in custody after which she will be deported to China, ordered to pay over $100,000 in restitution to the victim and to third-party victim services, and required to forfeit her house.
In another all too common scenario, last year four teenage girls testified at a federal trial against a trafficker who had sold them for sex in the Twin Cities. The investigation began when a concerned mother reached out to her local Sheriff’s Office to report that a man named Deuvontay Charles was recruiting her 17-year-old daughter to engage in prostitution. In the defendant’s Facebook messages, he described how the girl could “make money” and promised a trip to Las Vegas and that “life will be smooth sailing.” He told her that he would provide condoms and protect her from the “clients.” The defendant also instructed the young girl to save his phone number as “Daddy.”
That initial report led to law enforcement identifying additional juvenile victims. A 14-year-old girl told law enforcement that this same defendant had requested sexually-explicit images of her. The defendant also sent two pornographic images of an adult female and instructed the 14-year-old victim to send pictures of herself in similar sexual poses.
The defendant trafficked a second victim, who was also only 14-years-old, and used her to produce sexually-explicit images. Charles asked the victim to make a video of herself engaged in sexual acts. While recruiting the victim, the defendant asked if she wanted “to make money.” When she asked what he meant, Charles replied “sex.” Knowing she was only 14-years-old, Charles responded that while she is “kinda young,” there would be a lot of money to make.
Charles preyed on yet another victim. He sent messages to a 17-year-old about making “quick money.” After picking the victim up in a Minneapolis suburb, he posted her as an “escort” on backpage.com. He then made a hotel reservation using an alias and paid for the room in cash. For the next several days, the defendant sold the victim for commercial sex and kept all the money the victim received as a result of the sex acts that she was forced to engaged in.
At the time he committed these offenses, Charles was a registered sex offender based on a prior conviction for soliciting a child to engage in sexual conduct.
Clearly, this man is a predator who targeted vulnerable young girls. Justice was served when the victims’ important testimony led to Charles’ conviction and a thirty-six year sentence in federal prison.
Our office is also actively prosecuting one of the largest transnational sex trafficking cases in the nation. This particular case is truly remarkable because of the collaborative efforts of multiple law enforcement agencies, victim service providers, and industry partners across multiple jurisdictions who took on this case and attacked the international criminal enterprise from every angle.
The investigation started through good old fashion police work. A federal agent with Homeland Security Investigations received a report from her HSI colleagues in Arizona that multiple Thai women were being trafficked in Arizona and the operation was moving some of the women to Minneapolis. Our office commenced an investigation with our federal and local law enforcement partners and, eventually, other federal, state and local jurisdictions from around the country.
We worked with multiple U.S. Attorneys’ offices, HSI, state and local law enforcement across the country, the Department of State, as well as components within the Department of Justice including the Human Trafficking Prosecution Unit and the Money Laundering and Asset Recovery Section. Through surveillance, review of records and receipts, and other techniques, law enforcement learned that these victims were being trafficked in nearly every major city throughout the U.S. under the watchful eye of a massive criminal organization.
I would like to take a moment to describe the vast criminal enterprise that was responsible for trafficking hundreds of impoverished women from Bangkok, Thailand, to cities through the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Las Vegas, Houston, Dallas, Austin, Seattle and right here in the nation’s capital. Putting the pieces together required close coordination with international, national, state and local partners. It is the result of more than four years’ worth of work, and begins the current prosecution process of dismantling a highly profitable operation that generated millions of dollars through a highly sophisticated sex trafficking scheme.
These victims typically came from impoverished backgrounds and spoke little English- vulnerabilities that the traffickers exploited during the recruitment process. The women were promised a better life in the United States in exchange for a large “bondage debt,” of anywhere between $40,000 and $60,000. The women were told that, after they worked off their debt, they could become U.S. citizens. The recruiters who met with them in Thailand were friendly, helpful and made the future in the United States sound bright. They brought them to photography studios to take professional-quality, escort-style photographs, which ultimately were sent to traffickers here in the United States and used to advertise the victims for sex on websites. The traffickers also encouraged the women to get breast implants in an effort to make the women “more appealing” to men in the U.S. The cost of the cosmetic surgery was added to the victims’ bondage debt.
When the women arrived in the U.S., everything changed. They were essentially held prisoner in prostitution houses and only allowed to leave if accompanied by an employee of the organization. The women were forced to have sex with strangers for many hours every day, even if the men were abusive. They were threatened by the organization. The traffickers ensured that the women remained isolated in the United States. They had little money, no freedom of movement, and no interaction with the outside world.
The structure of this sex trafficking organization was hierarchical. It consisted of Traffickers, House Bosses, Money Launderers, Facilitators and Runners. Each of these players had their own clearly defined role to play in keeping this criminal organization profitable.
At the top of the organization were the Traffickers. Traffickers in the United States and in Thailand were responsible for recruiting the victims and controlling the bondage debt. They learned everything they could about the women, including detailed information about their families.
The information obtained about the victims’ families was an important part of the scheme. Armed with this information, the traffickers threatened anyone who wanted to or tried to escape the organization, including threats that their families would be harmed if the women did not do everything they were told.
The traffickers also determined where in the United States the women would be sent. But first, they had to get the women into the U.S. The traffickers did this by engaging in widespread visa fraud, including arranging sham marriages and lying on visa applications, in order to facilitate the travel of the women from Thailand into the United States. Once in the U.S., the women were sent to one of many houses of prostitution.
The House Bosses, who reported to the traffickers, were responsible for the day-to-day operations of these houses. They advertised the women, usually on websites like backpage.com, scheduled sex buyers, and ensured that the cash earned by the victim was routed back to the trafficker, with the house boss taking her cut. Little money was left for the victim herself to pay off the bondage debt.
The Facilitators assisted in the money laundering and other activities of the organization. They helped lease apartments and other locations used as houses of prostitution, book travel, advertise the women, and schedule commercial sex acts. They were also responsible for laundering and routing millions of dollars generated through this commercial sex trade.
And, finally, there were the Runners. The trafficking organization feared the women would try to escape, so the runners accompanied them when they left the house, apartment, or hotel room. The runners were also responsible for bringing them to and from the airport. The organization regularly moved the woman to different cities so that the women did not develop connections, to generate new clientele and to supply new markets. Runners also took them to the bank where the victims would deposit the payments on their bondage debt. The runners were typically men, and were often paid, at least in part, in sex with the victims.
This prosecution has been a massive undertaking. As noted, to date, it is one of the largest federal sex trafficking prosecutions in the United States. In total, we have publicly indicted 38 members of the organization.
Seventeen have thus far pleaded guilty. A trial date has been set for early May for the remaining defendants. Hundreds of victims have been recovered around the country. Millions of dollars have been seized, which will go toward much-deserved restitution to the victims. Weapons have also been confiscated.
One thing I would like to emphasize in particular is our work in helping the victims find hope and a sense of justice. As noted, this organization made millions of dollars annually and the prosecution team is working to secure that money for victim restitution. The DOJ Money Laundering and Asset Recovery Section (MLARS) is playing an integral role in this aspect of the case. MLARS has documented more than $25 million in proceeds from the commercial sex acts having been laundered back to the traffickers. When dealing with this level of organized crime, we know that we can only shut down a sophisticated sex trafficking organization when we take away their money.
My office has also collaborated with an organization in Los Angeles called the Thai Community Development Center, a DOJ grantee. They specialize in working with the Thai population to help provide victims with access to culturally sensitive and language specific resources and services. Today, some of the victims have learned English, some are taking vocational courses, and some are living independently and finding a future.
We take seriously the Department of Justice’s directive to take a victim-centered approach to our trafficking cases and, thankfully, Minnesota has unique resources that provide exceptional services to stabilize and support victims throughout a case’s full investigation and prosecution.
In conclusion, while the increased awareness and attention that the Super Bowl brings to this issue is important, I want to again emphasize that human trafficking is not a problem unique to the Super Bowl or any other major event. If we want to get the problem of human trafficking under control, awareness and enforcement efforts must continue long after the big game is over.
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U.S Attorney Statement on Veteran Care Agreement with Disability Rights OregonRead the Press Release
PORTLAND, Ore. – Today, the U.S. Attorney’s Office and Disability Rights Oregon announced that they have reached an agreement providing Springfield, Oregon veteran Michael Williamson with continued in-home care services, at least through April 15, 2018. With this temporary extension of services in place, the U.S. Department of Veterans Affairs (VA) will continue to seek a long-term solution to keep Mr. Williamson in his home.
“We are pleased to announce that the VA reached an agreement with New Horizons, a home health agency, to extend Mr. Williamson’s in-home care services in the short-term,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “We look forward to our continued work with the VA and Disability Rights Oregon to find a long-term solution that will provide care to an honored veteran in an integrated setting with the appropriate level of care to meet Mr. Williamson’s needs.”
Two Springfield Men Arrested for Distributing Crack CocaineRead the Press Release
BOSTON – Two Springfield men were arrested today and charged in separate indictments in federal court in Springfield with distribution of crack cocaine.
Donovan Coombs-Thompson, 24, of Springfield, and Kayvon Lovejoy, 26, were each charged in separate indictments with two counts of distribution of crack cocaine. Both men were detained following an appearance in federal court in Springfield this afternoon.
The indictment charging Coombs-Thompson alleges that in October 2017, he distributed cocaine base on two occasions. The indictment charging Lovejoy alleges that in August 2017, he distributed crack cocaine on two occasions.
Coombs-Thompson faces no greater than 20 years in prison, a minimum of three years of supervised release, and a fine of $1 million. Lovejoy faces no greater than 30 years in prison, a minimum of six years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James Neiswanger made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office is prosecuting the case
The details contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Charged with Drug Offenses Following Investigation of Drug Trafficking at D.C. Barber ShopRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Washington D.C. / Greenbelt, Maryland – Two area men have been arrested in an investigation that led to the seizure of firearms, ammunition and narcotics at various locations in the District of Columbia and Maryland, including a barbershop and surrounding property in Southeast Washington.
The charges were announced today by Acting United States Attorney Stephen M. Schenning, United States Attorney Jessie K. Liu; Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Special Agent in Charge Daniel L. Board, Jr., of the Bureau of ATF - Baltimore Field Division; Peter Newsham, Chief of the Metropolitan Police Department (MPD); and Henry P. Stawinski III, Chief of the Prince George’s County, Maryland Police Department.
On Feb. 1, 2018, law enforcement agents from ATF, MPD and the Prince George’s County Police Department executed search warrants on three locations and five vehicles linked to a seven-month investigation into alleged drug trafficking from the Next Level Cuts barbershop and surrounding property in the 2400 block of Martin Luther King, Jr. Avenue SE. The searches led to the seizure of firearms, ammunition, and quantities of narcotics.
The investigation established that drug traffickers would use the barbershop and adjoining property as a stash location for the trafficking of narcotics. A search at that location led to the seizure of more than $7,000 in cash, more than 800 grams of PCP, more than 300 grams of heroin, boxes of Suboxone strips, three firearms, and ammunition.
As a result of the search warrants, Anthony Fields, 44, of Washington, D.C., was arrested and charged in a criminal complaint filed in the U.S. District Court for the District of Columbia with drug trafficking offenses. As a result of a subsequent search warrant executed in Prince George’s County, James Venable, 46, of Fort Washington, Md., was arrested by Prince George’s County officers on narcotics and firearms charges.
The charges in criminal complaints are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
In announcing the arrests and seizures, Acting United States Attorney Stephen M. Schenning, United States Attorney Liu, Special Agent in Charge Chittum, Special Agent Board, Chief Newsham, and Chief Stawinski commended the work of those who are investigating the case. They also acknowledged the efforts of those who are handling the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Christopher Macchiaroli, and from the U.S. Attorney’s Office for the District of Maryland, including Assistant U.S. Attorney Jennifer Sykes.
Two Austinites Sentenced to Federal Prison on Fraud and Tax ChargesRead the Press Release
In Austin today, a federal judge sentenced two Austinites to federal prison for defrauding Dell, Inc. and the Internal Revenue Service, announced United States Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio, and IRS-Criminal Investigation Acting Special Agent in Charge Andy Tsui, San Antonio.
Senior United States District Judge Sam Sparks sentenced 50-year-old Kelly Burton Nunn and 55-year-old Bryan Dale Wallace to 40 months and 26 months in federal prison, respectively, followed by three years of supervised release. Judge Sparks also ordered that Nunn pay $10,888,122 restitution; Wallace, $849,000 restitution--jointly and severally with Nunn.
“Today’s sentencing is a reminder that the Department of Justice takes fraud against the business community very seriously,” stated United States Attorney John F. Bash. “Together with our law-enforcement partners, we will remain steadfast in our efforts to protect the American economy from those who seek to profit from deception and dishonesty.”
In November 2017, Nunn pleaded guilty to one count of conspiracy to commit wire fraud and one count of subscribing a false Income Tax Return. Wallace pleaded guilty to the conspiracy charge.
According to court records, Kelly Nunn and Bryan Wallace conspired from January 2007 to August 2012 to defraud Nunn’s employer, Dell, Inc. (Dell), by charging Dell for services Dell did not receive or excessive amounts for services that Dell did receive. Nunn and Wallace submitted numerous fraudulent invoices under the business name of Bison Services (Bison) for computer-aided-design services related to management of Dell’s business locations. The defendants admitted that they caused Dell to pay Wallace millions of dollars to which Wallace was not entitled. Wallace subsequently paid over $1 million to Nunn during the course of their scheme.
“The defendants in this case carried out a lengthy scheme of fraud and deception for their own personal gain,” said FBI Special Agent in Charge Christopher Combs. “The message today is clear - those who seek to line their pockets by defrauding others will be held accountable.”
On November 8, 2017, Kelly’s wife--47-year-old Tobie R. Nunn--pleaded guilty to the same tax charge as her husband. By pleading guilty, the Nunns admitted that in April 2011, they intentionally filed electronically a fraudulent 2010 Individual Income Tax Return with the IRS that substantially understated their actual income.
Tobie Nunn remains on bond pending sentencing scheduled for 9:00am on February 23, 2018, before Judge Sparks. She faces up to three years in federal prison.
FBI agents and IRS-Criminal Investigation agents investigated this case. Assistant United States Attorney Alan Buie is prosecuting this case on behalf of the Government.
Two Area Men Charged with Drug Offenses Following Investigation of Drug Trafficking at D.C. Barber ShopRead the Press Release
WASHINGTON – Two area men have been arrested in an investigation that led to the seizure of firearms, ammunition and narcotics at various locations in the District of Columbia and Maryland, including a barbershop and surrounding property in Southeast Washington.
The charges were announced today by U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Daniel L. Board, Jr., Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Baltimore Field Division, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Henry P. Stawinski III, Chief of the Prince George’s County, Md. Police Department.
On Feb. 1, 2018, law enforcement agents from ATF, MPD and the Prince George’s County Police Department executed search warrants on three locations and five vehicles linked to a seven-month investigation into alleged drug trafficking from the Next Level Cuts barbershop and surrounding property in the 2400 block of Martin Luther King, Jr. Avenue SE, which led to the seizure of firearms, ammunition, and quantities of narcotics.
The investigation established that drug traffickers would use the barbershop and adjoining property as a stash location for the trafficking of narcotics. A search at that location led to the seizure of more than $7,000 in cash, more than 800 grams of PCP, more than 300 grams of heroin, boxes of Suboxone strips, three firearms, and ammunition.
As a result of the search warrants, Anthony Fields, 44, of Washington, D.C., was arrested and charged in a criminal complaint filed in the U.S. District Court for the District of Columbia with two drug trafficking offenses. Fields made his first court appearance today and was ordered held pending a detention hearing set for Feb. 7, 2018.
As a result of a search warrant executed in Prince George’s County, James Venable, 46, of Fort Washington, Md., was arrested by Prince George’s County officers on narcotics and firearms charges.
The charges in criminal complaints are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
In announcing the arrests and seizures, U.S. Attorney Liu, Special Agent in Charge Chittum, Special Agent in Charge Board, Chief Newsham, and Chief Stawinski commended the work of those who are investigating the case. They also acknowledged the efforts of those who are handling the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Christopher Macchiaroli, and from the U.S. Attorney’s Office for the District of Maryland, including Assistant U.S. Attorney Jennifer Sykes.
Three Individuals Charged with Conspiring to Defraud Unsuspecting Used Car Buyers in BrooklynRead the Press Release
A federal grand jury sitting in the Eastern District of New York returned an indictment charging Inna Chebanenko, Andrii Gerasymenko, and Georgy Zakalyugin with conspiracy to commit wire fraud. The defendants were arrested in Illinois last week and are scheduled to be arraigned this afternoon before United States Magistrate Judge James Orenstein in federal court in Brooklyn.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charge.
“As alleged in the indictment, the defendants profited through obtaining fraudulent titles to used cars in order to peddle salvaged or rebuilt vehicles to unsuspecting buyers,” stated United States Attorney Donoghue. “This Office, working with our law enforcement partners, is committed to protecting consumers and ensuring that they get what they are paying for.” Mr. Donoghue also expressed his grateful appreciation to the United States Postal Inspection Service, the New York State Department of Motor Vehicles, the Indiana Bureau of Motor Vehicles and the Delaware Division of Motor Vehicles for their assistance in the investigation.
“Most of us would not be able to pop the hood of a car and see for ourselves that there was damage or something seriously wrong with the vehicle. There are laws protecting consumers for a reason because fraudsters will use whatever means they can to make money illegally,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI will continue to work with our law enforcement partners and other governmental agencies to do all we can to stop criminals from taking advantage of unsuspecting people.”
According to the court documents, between 2013 and 2016, the defendants conspired to defraud car buyers in Brooklyn and elsewhere by concealing the fact that the cars were “salvage” or “rebuilt” vehicles. Vehicles are given a “salvage” title when they have been destroyed or received substantial damage. Cars with “salvage” titles are worth a fraction of the value of a comparable car without a “salvage” title. By forging the signatures of non-existent Indiana law enforcement officers on the necessary certifications, the conspirators obtained car titles from the State of Indiana stating that the salvage cars had been “rebuilt,” indicating the cars had been repaired and restored to operational condition. However, the “rebuilt” status of the cars was concealed on the titles by, among other means, placing an automobile auction sticker on the title before selling the cars to unsuspecting buyers in Brooklyn and elsewhere at inflated prices. The buyers would then find themselves in possession of a vehicle with a value that was a fraction of the value-as-represented at the time of the sale.
The charges announced today are merely allegations and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney G. Karthik Srinivasan.
The Defendants:
INNA CHEBANENKO
Age: 31
Elmhurst, IndianaANDRII GERASYMENKO
Age: 32
River Grove, IllinoisGEORGY ZAKALYUGIN
Age: 32
Chicago, IllinoisE.D.N.Y. Docket Nos. 18-CR- 51
Three Florida Residents Sentenced for Operating an Illegal Steroid and Counterfeit Prescription Drug LabRead the Press Release
Montgomery, Alabama – Three Chipley, Florida residents were sentenced yesterday to serve time in federal prison for their involvement in a steroid and counterfeit prescription drug lab in Northwest Florida, announced Louis V. Franklin, Sr., United States Attorney for the Middle District of Alabama.
Ryan Anthony Sikora (24) was sentenced to 41 months in prison, Ariel Anna Murphy (29) to 12 months, and John Joseph Bush, II (26) was sentenced to 8 months. The three received their sentences after pleading guilty to conspiracy charges for importing, manufacturing, and distributing anabolic steroids as well as counterfeit prescription drugs.
The investigation began when United States Postal Inspectors determined that large amounts of steroid and counterfeit prescription drug ingredients were being shipped from China to various locations in South Alabama and Northwest Florida. The defendants mass-produced counterfeit pills at a lab near Chipley, Florida using two large-scale pill presses. They marketed the counterfeit drugs online using the brand name “Future Pharma” and they would typically process the orders through encrypted email, and then use the United States Postal Service to send the contraband products across the United States.
U.S. Attorney Franklin would like to thank the following agencies for their assistance with this case: The United States Postal Inspection Service, the United States Food and Drug Administration (FDA) Office of Criminal Investigations, the Alabama Law Enforcement Agency (ALEA), the Florida Department of Law Enforcement (FDLE), the Washington County (Florida) Sheriff’s Office, and the Chipley, Florida Police Department. This case was prosecuted by Assistant United States Attorney Bradley Bodiford.
Three Alleged Gang Members Charged with Dealing FirearmsRead the Press Release
BOSTON – Three alleged members of the Latin Gangsta’ Disciples were charged yesterday with federal firearm offenses.
Jose Ilarraza, a/k/a “Kae-Kae,” 26, of Newburyport; Bryan Torres-Almanzar, a/k/a “Flex,” 19, of Lawrence; and Eric Valentin, a/k/a “Jefe,” 22, also of Lawrence, were charged with dealing firearms without a license and conspiracy to deal firearms without a license. Torres-Almanzar and Valentin were arrested yesterday in Nashua, N.H., and detained following an appearance in federal court in Boston. Ilarraza is in state custody for an unrelated offense.
As alleged in court documents, in September 2017, an individual who was working as a cooperating witness for federal investigators was approached by Ilarraza after hearing that the cooperating witness was interested in obtaining firearms that could be sent to the Dominican Republic. Ilarraza, who was incarcerated at the time at the Essex County Jail following a conviction for breaking and entering and resisting arrest, instructed the cooperating witness to contact Torres-Almanzar, who was allegedly heavily involved in firearms trafficking.
This information and another cooperating witness were used to purchase firearms from Torres-Almanzar and his “partner,” Valentin, on six occasions between Sept. 12, 2017, and Oct. 19, 2017. For example, on Sept. 14, 2017, the cooperating witness arranged to purchase a 9mm semiautomatic pistol with a laser sight and an extended magazine for $1,000 from Torres-Almanzar and Valentin. During the sale, Torres-Almanzar and Valentin talked about future gun purchases and told the cooperating witness that “we do business and will take care of you.” They also said that they were in the business of “growing our organization” and that it was a “good thing that he [Ilarraza] introduced us.” During the course of the investigation, the cooperating witness purchased eight firearms from Torres-Almanzar and Valentin.
The charges of dealing in firearms without a license and conspiracy each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Lawrence Police Chief Roy P. Vasque; Essex County Sheriff Kevin F. Coppinger; Essex County District Attorney Jonathan W. Blodgett; Lowell Chief of Police William Taylor; and Nashua (N.H.) Police Chief Andrew J. Lavoie made the announcement today.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ten Individuals Indicted by a Federal Grand Jury in Denver and Then Arrested for Diesel Fuel FraudRead the Press Release
DENVER – Following a year and a half investigation conducted by the FBI and other law enforcement agencies, a federal grand jury in Denver returned six indictments charging a total of ten individuals with a variety of charges related to the theft and sale of diesel fuel. During an operation this past Tuesday, January 30th, 2018, all ten defendants were arrested and have subsequently appeared before a U.S. Magistrate Judge where they were advised of their rights and the charges pending against them. Three homes and a business premises were searched and 13 gas haul trucks used during the scheme were seized.
According to the indictment, the defendants, acting as a loose-knit ring of diesel fuel thieves, went to gas stations throughout the Northern Front Range of Colorado, purchasing thousands of gallons of fuel using fraudulent credit cards. The thieves obtained individuals’ bank account numbers through illicit means, to include skimmers (devices used for secretly capturing bank account numbers and information) and/or from purchases of stolen account numbers on the dark web. The defendants or others associated with the ring would then take that information and put it on blank credit cards, also known as access devices. The credit card thieves would then use the fraudulent cards to fill trucks with diesel fuel. The defendants off-loaded the diesel fuel at storage depots located at various truck lots or businesses within Colorado, in exchange for money from fuel buyers. The trucks utilized in the scheme to haul and distribute the fuel contained modified and/or supplemental fuel tanks capable of storing approximately 100 gallons or more of diesel fuel at any given time. In several cases, the fuel tanks were installed on the trucks in a manner designed to conceal the fact that the trucks were being utilized to store and transport substantial volumes of fuel.
In one case, a defendant controlled and utilized a semi-trailer on the premises of his business --“Salinas Trucking” located in Fort Lupton, Colorado -- which served as a hidden fuel depot where defendants would off-load diesel fuel purchased with clone cards. Salinas in turn would transfer, or cause to be transferred, such fuel to various large semi-trailer trucks, buses and other commercial vehicles which he used in the course of operating his trucking business.
Those indicted and arrested include:
Moises Ramirez-Duenas (18-cr-00047)
Eddie Luis Tamayo Pena (18-cr-00025)
Lisvan Leiva Perez (18-cr-00046)
Javier Vergara Rodriquez (18-cr-00026)
Yordanis Tamayo Aguilar (18-cr-00041)
Yunior Ricardo Gutierrez Bermudez
Sergio Reynier Ona Lago
Fidel Salinas*
Yordanis Batista Pacho (18-cr-00045)
Ricardo Sarmiento Pacho
Fidel Salinas*
*Defendant Fidel Salinas named in two separate indictments
Charges include Bank Fraud, Fraudulent Use of Counterfeit Devices or Conspiracy to Fraudulently Use Counterfeit Devices, and Aggravated Identity Theft. Penalties for the ten defendants range from not more than 10 years, to not more than 30 years in federal prison.
This case was investigated by the FBI Denver Division, with assistance from Immigration Customs Enforcement - Enforcement and Removal Operations; Brighton Police Department and Colorado State Patrol.
The defendants are being prosecuted by Assistant U.S. Attorney Tim Neff.
The charges contained in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
Takoma Park Man Pleads Guilty to Drug and Firearms ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On January 31, 2018, Stanley Eugene Green, Jr., age 42, of Takoma Park, Maryland, pleaded guilty to Distribution of Heroin, and Possession of Firearms in Furtherance of a Drug Trafficking Crime. The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr., of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Baltimore Field Division; and Police Chief Antonio DeVaul of the Takoma Park Police Department.
According to his plea agreement, between in or about February 2015, and continuing through April 27, 2017, in the District of Maryland and elsewhere, Green, together with others, distributed, conspired to distribute, and possessed with intent to distribute heroin and fentanyl. During the conspiracy, Green obtained distribution quantities of heroin (that contained fentanyl), and redistributed those drugs to users in Montgomery County, Maryland, and elsewhere.
In August 2016, law enforcement officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Takoma Park Police Department received information from a confidential informant about narcotics distribution in Takoma Park, Maryland, specifically 636 Houston Court, Takoma Park, Maryland (an apartment complex with multiple residential units). Between August 2016 and April 2017, ATF and local law enforcement identified and investigated someone named “Rico” who was selling heroin (later found to contain fentanyl). Law enforcement identified “Rico” as Green.
In late January 2017, a victim who obtained heroin from Green suffered an overdose and required emergency medical attention. The victim fell into a coma and thereafter required hospitalization and physical rehabilitation, and was hospitalized for approximately 2½ months.
United States District Judge George J. Hazel has scheduled the sentencing for April 5, 2018.
As part of his plea agreement, Green will be required to forfeit the firearms and ammunition seized during the search of his residence, as well as the $37,592.00.
Acting United States Attorney Stephen M. Schenning praised the ATF Baltimore Field Division, Takoma Park Police Department, and Montgomery County Police Department for their work in the investigation. He also recognized the assistance Harford County Sheriff’s Office and the Drug Enforcement Administration gave to the lead investigating agencies. Mr. Schenning thanked Assistant United States Attorney Thomas M. Sullivan, who is prosecuting the case.
Southern District of Florida U.S. Attorney’s Office Collects $81,953,065.05 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
U.S. Attorney Benjamin G. Greenberg announced today that the Southern District of Florida collected $81,953,065.05 in criminal and civil actions in Fiscal Year 2017. Of this amount, $57,410,683.40 was collected in criminal actions and $24,542,381.65 was collected in civil actions.
Additionally, the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $84,495,243.94 in cases pursued jointly with these offices. Of this amount, $23,280.87 was collected in criminal actions and $84,471,963.07 was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
U.S. Attorney Benjamin G. Greenberg stated, “Through great efforts and diligence our office was once again able to secure restitution for crime victims and recover monies for the U.S. taxpayers. We work hard not only to protect the people of our great nation, but to ensure that criminals do not profit from their crime. Today’s numbers reflect that the U.S. Attorney’s Office collects substantially more money than it spends, and provides the taxpayers with an excellent return on their investment.”
For example, the Southern District of Florida recovered $12,000,000 from a not-for-profit hospital to settle allegations that the hospital violated the False Claims Act by submitting false claims to federal healthcare programs for medically unnecessary cardiac procedures.
In United States v. Goodman, Case No. 07-20871-CR-Seitz, the government recovered $1,474,027.84 from the sale of the criminal defendant’s two luxury condominiums in Costa Rica. In his plea agreement, the defendant agreed to the sale of the Costa Rican properties. The court ordered that the two condominiums be sold and the proceeds applied to Goodman’s restitution judgment.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Southern District of Florida, working with partner agencies and divisions, collected $232,327,657.00 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.
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.
South Bend Man Sentenced to 60 Months ImprisonmentRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Larry D. Cole, age 46, of South Bend, Indiana was sentenced before District Court Judge Jon E. DeGuilio for one count of possession of a firearm in furtherance of a drug trafficking crime
Cole was sentenced to 60 months imprisonment and 2 years of supervised release.
According to documents in this case, in May of 2017, Cole sold 3.6 grams of cocaine to an individual working for the St. Joseph County Drug Interdiction Unit. When officers executed a search warrant on an address in South Bend where the drugs were sold, they observed Cole running from the rear of the house to the living room and reaching under the couch for a .45 caliber handgun. Cole also had $1,188 in cash and a small amount of marijuana and cocaine. Some of the cash was from the sale of drugs the day before to the individual working with the Drug Interdiction Unit.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the St. Joseph County Drug Interdiction Unit which is comprised of officers from the Mishawaka Police Department; the South Bend Police Department and the St. Joseph County Sheriff’s Department. This case was handled by Assistant U.S. Attorney John M. Maciejczyk.
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Seven Sentenced in Money Laundering Scheme Involving Proceeds from Multiple Foreign Scams that Targeted U.S. VictimsRead the Press Release
In Austin today, a federal judge sentenced two Nigerian citizens and a Houston man to federal prison for their roles in a money laundering conspiracy that collected millions of dollars from victims located across the country, announced United States Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio; Acting Special Agent in Charge Andy Tsui, Internal Revenue Service – Criminal Investigation (IRS-CI); and, Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service, Houston Division.
United States District Judge Sam Sparks sentenced:
- Nathaniel Itimi, a 46-year-old native of Nigeria and current U.S. citizen residing in Houston, to 97 months in federal prison and ordered him to pay, jointly and severally, $1,672,805.51 restitution;
- Lewis Akpomofune, a 41-year-old citizen of Nigeria residing in Houston, to 108 months in federal prison and ordered him to pay, jointly and severally, $1,672,805.51 restitution; and,
- Michael Omoh Okiki, a 37-year-old citizen of Nigeria residing in Houston, to 57 months in federal prison and ordered him to pay, jointly and severally, $1,213,354.94 restitution.
“Today’s sentencing reflects the commitment of the Department of Justice to destroy the money-laundering networks that facilitate fraud against the most vulnerable Americans, such as the elderly,” stated United States Attorney John F. Bash.
Last year, all three defendants pleaded guilty to a charge of conspiracy to commit money laundering.
Four other individuals received federal prison terms in connection with this investigation. They are:
- Ayibatonye Bienzigha, a 23-year-old citizen of Nigeria residing in New Jersey, received 37 months in federal prison and was ordered to pay $51,307 restitution;
- Eghosa Obaretin, a 30-year-old citizen of Nigeria residing in Austin, received 40 months in federal prison and was ordered to pay $677,303.83 restitution and forfeit $222,000;
- Roland Imoe, a 37-year-old native of Nigeria and current U.S. citizen residing in Austin, ten months in federal prison and ordered to pay $25,632 restitution; and,
- Augustine Ikolo, a 41-year-old citizen of Nigeria residing in Austin, received 97 months in federal prison and ordered to pay $842,970 restitution.
Previously, Obaretin and Imoe pleaded guilty to one count of Passport Fraud; Bienzigha, to one count of conspiracy to commit money laundering; and, Ikolo to one count of conspiracy to commit money laundering.
In December 2017, co-defendant Ochuko Sylvester Eruotor, a 43-year-old resident of Canada and citizen of Nigeria, was extradited from Germany to the United States after being arrested with assistance from Interpol. Yesterday in Austin, Eruotor pleaded guilty to one count of conspiracy to commit money laundering. He remains in federal custody awaiting sentencing. No sentencing date has been scheduled.
Court documents showed that this investigation targeted a money laundering network that laundered the proceeds of various fraud schemes perpetrated against U.S. victims by scammers based in Canada, Nigeria, and the United States. The schemes included: “grandson-in-jail” frauds over the phone targeting elderly victims; fake investment scams; business email compromise scams; Stolen Identity Refund Fraud (SIRF) tax filing scams; and, romance victim scams.
The money launderers opened bank accounts, sometimes using fraudulent passports in fake identities, or hired others to open bank accounts in order to facilitate their scheme. Those U.S.-based bank accounts would receive the fraudulently obtained funds from the victims. The U.S.-based conspirators quickly withdrew the money from the bank accounts with a portion of the fraud proceeds kept as a fee. Then the remainder of the funds were sent to Canada or Nigeria. To date, law enforcement has identified in excess of $3.5 million dollars of fraud proceeds from hundreds of victims laundered by the conspiracy.
“Today’s actions will not only bring a sense of justice to the victims in this case, but this significant investigation will also help increase awareness of this type of fraud,” said Shane Folden, Special Agent in Charge, HSI San Antonio. “To potential victims, we encourage you to be vigilant and if you feel like you are being scammed, please contact law enforcement to report the suspected scam before you make a payment. There are criminals who are always seeking to exploit the vulnerable in our communities for their own personal gain.”
“The defendants who perpetrated this scheme systematically defrauded innocent American citizens,” stated Andy Tsui, IRS Criminal Investigation, Acting Special Agent in Charge, San Antonio Field Office. “Protecting taxpayer money is a matter we take very seriously. IRS-Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by creating elaborate money laundering schemes such as this one.”
Agents with HSI, IRS-CI, and U.S. Postal Inspection Service investigated this case. The United States Marshals Service provided assistance with Eruotor’s extradition. Assistant United States Attorney Michael C. Galdo prosecuted this case on behalf of the Government.
Security Guard at the 9/11 Memorial and A Conspirator Charged in Manhattan Federal Court with Firearms TraffickingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest of MAQUAN MOORE, a 9/11 Memorial security guard, and MORRIS WILSON, for the trafficking of more than 25 firearms from locations outside of New York into Manhattan. MOORE and WILSON were arrested last night by the ATF and NYPD, and presented today on separate complaints before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Maquan Moore and Morris Wilson are responsible for illegally introducing into Manhattan scores of illegal firearms – including assault-style weapons capable of inflicting mass casualties – and knowingly doing so in the neighborhood of a nearby school. Their alleged disregard for public safety could have had catastrophic consequences. The danger of selling unlicensed firearms cannot be overstated. I commend our NYPD and ATF partners for keeping these guns out of the hands of unlicensed owners.”
ATF Special Agent-in-Charge Ashan M. Benedict said: “ATF is committed to making the streets safe by ridding neighborhoods of individuals that seek to distribute illegal firearms. Maquan Moore and Morris Wilson are alleged to have trafficked numerous firearms into New York City endangering the lives of its citizens. Thanks to the efforts of the Special Agents and Detectives assigned to the ATF/NYPD Joint Firearms Task Force, this interstate firearms trafficking network will be disbanded and all of its tentacles prosecuted to the full extent of the law. I would like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
NYPD Commissioner James P. O’Neill said: “As charged, these defendants engaged in several transactions involving the sale of multiple illegal firearms on the streets of New York City. Their actions could have jeopardized the lives of an untold number of citizens as we have seen far too often. It was only through the well-coordinated efforts of the Joint Firearms Task Force that this gun-trafficking operation was successfully curtailed.”
According to the allegations in the Complaints[1]:
Beginning in December 2017, an ATF/NYPD Task Force made multiple undercover purchases of firearms from MOORE, who at the time was working as a security guard at the 9/11 Memorial. These firearms included several assault-styled weapons, such as a MAC-10 machine pistol, and various other handguns and rifles. On the evening of February 1, 2018, an undercover officer purchased from MOORE additional firearms, many of which had been brought by WILSON from Florida to New York. In connection with MOORE and WILSON’s arrest, the ATF/NYPD Task Force seized 21 additional firearms.
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MOORE, 29, of Manhattan, is charged with conspiracy to traffic in firearms, firearms trafficking, interstate transportation and receipt of firearms, and possession of a firearm near a school zone, each of which carries a maximum statutory penalty of five years in prison; and receiving a firearm with intent to commit an offense, which carries a maximum statutory penalty of 10 years in prison.
WILSON, 32, of Orlando, Florida, is charged with conspiracy to traffic firearms, firearms trafficking, and interstate transportation and receipt of firearms, each of which carries a maximum statutory penalty of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the efforts of the ATF and NYPD in this case.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jacob Warren and Dominic Gentile are in charge of the prosecution.
The charges contained in the Complaints are merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints forth herein constitute only allegations, and every fact described should be treated as an allegation.
Santa Fe Cardiologist Pleads Guilty to Obstructing Justice While Awaiting Sentencing on Health Care Fraud ChargeRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division and U.S. Marshal Conrad E. Candelaria today announced that Roy G. Heilbron, 54, a cardiologist residing in Santa Fe, N.M., pled guilty in federal court in Albuquerque, N.M., to an obstruction of justice charge. The charge against Heilbron arises out of his alleged attempt to obstruct and impede sentencing proceedings in a pending criminal case.
“The administration of justice depends on the honesty and good faith of all concerned, even those charged with crimes,” said Acting U.S. Attorney Tierney. “In this case, Mr. Heilbron impeded the administration of justice by falsely claiming that he required medical treatment in Costa Rica for the purpose of delaying or avoiding sentencing for committing healthcare fraud. For this, he deserves just punishment.”
“A doctor who cheats Medicare and private insurance companies by billing them for unnecessary tests is a criminal,” said FBI Special Agent in Charge Wade. “When that doctor tries to delay sentencing by lying and making up phony documents, he’s a criminal looking at possibly spending a lot more time in prison. The FBI hopes today’s guilty plea sends a message that we will not allow wrongdoers to avoid paying for their crimes.”
Heilbron was charged on Sept. 6, 2017, in a two-count indictment with making and presenting fraudulent documents regarding his medical condition to a U.S. Probation Officer, and submitting the fraudulent documents for the purpose of postponing or avoiding sentencing in a pending health care fraud prosecution. The indictment alleges that Heilbron committed the two crimes in Bernalillo County, N.M., and elsewhere, between Aug. 3, 2017 and Aug. 7, 2017.
Heilbron previously had pleaded guilty in federal court in Albuquerque, N.M., to a health care fraud charge on Feb. 17, 2017, under a plea agreement recommending a sentence of two years of imprisonment followed by a term of supervised release to be determined by the court.
On Aug. 7, 2017, Heilbron’s attorney filed a motion to continue Heilbron’s sentencing hearing, which was then scheduled for Aug. 28, 2017, to permit Heilbron to begin chemotherapy in Costa Rica for prostate cancer. The motion included two attachments: a one-page “Treatment Protocol for Roy Heilbron” dated Aug. 3, 2017, which purported to detail Heilbron’s alleged prostate cancer diagnosis, and a three-page “Clinical Summary” dated June 24, 2017, which purported to outline a four-cycle chemotherapy treatment plan. The two documents purported to be authored by a physician with offices in San Jose, Costa Rica, and Miami, Fla.
On Aug. 9, 2017, a U.S. Magistrate Judge issued a warrant for Heilbron’s arrest based on a criminal complaint setting forth the same charges as those contained in the indictment. The complaint outlined the FBI’s investigation into the claims made in the “Clinical Summary” and “Treatment Protocol,” and asserted that Heilbron created the two documents himself and that Heilbron was not a patient of the physician whose name appears on the fraudulent documents. According to the complaint, Heilbron allegedly provided the fraudulent documents to his U.S. Probation Officer on Aug. 4, 2017, in support of a request to postpone his sentencing hearing.
During today’s proceedings, Heilbron entered a guilty plea to the obstruction of justice charge of the indictment. According to the plea agreement, Heilbron acknowledged that he previously pled guilty to a health care fraud charge on Feb. 17, 2017, and had a sentencing hearing on Aug. 28, 2017. In entering his guilty plea, Heilbron admitted that on Aug. 4, 2017, he sent his Probation Officer an email requesting to postpone his sentencing hearing based on the representation that he was scheduled to begin chemotherapy treatments in Costa Rica on Aug. 14, 2017. In support of his request, Heilbron attached a clinical summary and treatment protocol purportedly authored by Heilbron’s physician. Heilbron further admitted that the email was false and created for the purpose of delaying or avoiding the sentencing hearing on his health care fraud plea, and at the time he made the request for the postponement, he was on vacation in Europe with no intention of beginning chemotherapy treatments in Costa Rica beginning on Aug. 14, 2017.
In entering the guilty plea, Heilbron acknowledged that when he sent the false email, he was on release under a July 1, 2015 order of the U.S. District Court for the District of New Mexico relating to his health care fraud charge that put him on notice on the effect of committing crimes while on presentence release.
At sentencing, Heilbron faces a maximum penalty of 30 years in federal prison, which will run consecutive to the two-year term of term of imprisonment he faces as the result of his guilty plea in the health care fraud case. Heilbron remains in federal custody pending sentencing hearings in in his obstruction of justice and health care fraud cases, which have yet to be scheduled.
The obstruction of justice case was investigated by the Santa Fe and Albuquerque offices of the FBI, with assistance from the Charlotte office of the FBI and the U.S. Marshals Service, and the Santa Fe office of the FBI investigated the health care fraud case. Assistant U.S. Attorneys Jeremy Peña and George C. Kraehe are prosecuting both cases.
Saint Bernard Resident Pleads Guilty toRead the Press Release
United States Attorney Duane A. Evans announced that EMELDA MATTHEWS (“MATTHEWS”), age 36, of Violet, Louisiana, pleaded guilty yesterday to Aiding and Assisting in the Preparation of False Tax Returns.
According to documents filed in federal court, MATTHEWS operated a small tax preparer business from her home in Violet, Louisiana. And from 2013 through 2015, MATTHEWS, aided and assisted numerous federal income tax filers in preparing and filing false tax returns with the Internal Revenue Service.
The maximum penalty for aiding and assisting in the preparation of false tax returns is three years of imprisonment, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. United States District Judge Susie Morgan set the sentencing hearing for May 2, 2018.
United States Attorney Evans praised the work of the Internal Revenue Service, Criminal Investigations Division in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Reserve Man Pleads Guilty to Crack ChargeRead the Press Release
U.S. Attorney Duane A. Evans announced that MICHAEL SANDERS, age 36, of Reserve, pled guilty today to charges relating to narcotics trafficking.
According to court documents, SANDERS conspired with others to distribute cocaine base (“crack”). SANDERS faces a term of imprisonment of up to twenty years, a fine of $1,000,000, and at least three years of supervised release following any term of imprisonment.
Judge Jane Triche Milazzo set sentencing for May 3, 2018. 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. Attorney Nicholas D. Moses is in charge of the prosecution.
Repeat Investment Fraudster Convicted of Wire Fraud, Securities Fraud and Aggravated Identity TheftRead the Press Release
A federal jury convicted RICHARD THOMAS ZIESKE, a Renton man who presented himself as an investment advisor, of eight federal felonies late yesterday, announced U.S. Attorney Annette L. Hayes. ZIESKE was previously convicted of federal fraud charges for defrauding members of his church and others out of over $1.2 million by posing as an investment advisor. In the present prosecution, ZIESKE was charged with a similar scheme to defraud victims he met through a Renton martial arts studio. The jury deliberated for about two hours following the three-day trial before finding ZIESKE, 48, guilty of eight federal felonies. ZIESKE was convicted of five counts of wire fraud, one count of securities fraud and two counts of aggravated identity theft. U.S. District Judge James L. Robart scheduled sentencing for April 30, 2018.
According to records in the case and testimony at trial, in 2005 ZIESKE pleaded guilty to mail fraud, securities fraud and wire fraud for a scheme in which he solicited nearly $2 million from members of his church and others, fraudulently promising big returns on investments. ZIESKE was sentenced to 41 months in prison and ordered to pay more than $1.3 million in restitution. The Washington Department of Financial Institutions also entered a cease and desist order against him.
Nevertheless, in 2013, ZIESKE overheard a member of his Renton martial arts studio talking about his 401k account. The victim had been forced to retire and limit his martial arts due to a degenerative neck condition. ZIESKE convinced the victim to allow him to manage more than $95,000 in retirement funds, promising big returns. Instead, ZIESKE used the money to purchase a limited edition Harley Davidson motorcycle, to pay for liposuction surgery, and to finance a luxury SUV. ZIESKE attempted to recruit other ‘investors,’ and convinced the founder of the martial arts studio to invest about $40,000 with him. A brokerage firm closed ZIESKE’s trading account after its check revealed ZIESKE’s prior conviction. ZIESKE then opened another brokerage account using the identity of another member of the martial arts studio. That conduct is the basis for the aggravated identity theft convictions.
Wire fraud is punishable by up to 20 years in prison. Securities fraud is punishable by up to five years in prison. Aggravated identity theft is punishable by two years in prison consecutive to any other sentence imposed on other counts of conviction.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Michael Dion.
Pittston Man Sentenced to 33 Month’s Imprisonment for Role in Drug ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on January 31, 2018, United States District Court Judge Malachy E. Mannion sentenced Evans Samuel Santos Diaz, age 33, of Pittston, Pennsylvania, to 33 months’ imprisonment for his role in a drug conspiracy.
According to United States Attorney David J. Freed, Santos Diaz was convicted after a three-day trial in August 2017, of conspiring to distribute cocaine and 30 grams of heroin (which equates to approximately 1,200 individual doses) throughout Northeastern Pennsylvania between February and April 2016.
Santos Diaz was indicted by a grand jury on October 25, 2016.
The investigation was conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation, Pennsylvania State Police, and the Scranton and Wilkes-Barre Police Departments. Assistant United States Attorneys Evan Gotlob and Sean Camoni prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Pittsburgh Woman Sentenced to Prison for Dealing HeroinRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to 18 months’ imprisonment on her conviction of conspiracy to possess with intent to distribute and distribute 100 grams or more of heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Auriana Torrez, age 25, of Pittsburgh, PA.
According to information presented to the court, from April through August 2016, Torrez was intercepted over a DEA wiretap conspiring with others to possess with intent to distribute and distribute heroin and was found in possession of 200 stamp bags of heroin.
Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Torrez. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Orlando Lawyer Sentenced to Three Years for Tax EvasionRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced William B. Pringle, III to three years in federal prison for tax evasion. He also was ordered to pay $1,650,744 in restitution to the Internal Revenue Service.
A federal jury found Pringle guilty on November 3, 2017.
According to evidence presented at trial, Pringle owed more than $2.1 million in federal income taxes, interest, and penalties for the years 1996 and 1998-2010. Over a period of at least nine years, he avoided paying income taxes by hiding his substantial income and luxury assets from the IRS, and by engaging in tactics to stop the IRS from locating and seizing his assets to pay the taxes he owed.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
Omaha Man Sentenced to 8 Years for Attempting to Receive Child PornographyRead the Press Release
Acting U.S. Attorney Robert C. Stuart announced today that Jeffrey T. Fenn, Jr., 37, was sentenced in federal court in Omaha for attempting to receive child pornography. The Honorable Robert F. Rossiter, Jr., sentenced Fenn to 96 months’ imprisonment. There is no parole in the federal system. After his release from prison, Fenn will begin a five-year term of supervised release.
Fenn befriended a 12-year-old girl while playing an online video game. They then began an online relationship over a popular messaging service. During the course of the online relationship, Fenn asked the girl to take sexually explicit pictures of herself and send them to him. She sent suggestive but not sexually explicit images. Fenn repeatedly asked for specific images of sexually explicit body parts and directed her to pose in specific ways. He threatened to end the online relationship if she did not comply. The minor girl refused to send the explicit images Fenn requested. The texts were reported to the Georgia Bureau of Investigation.
On January 19, 2017, the FBI Cyber Crimes Task Force served a search warrant on the Omaha address used during the online chats and texts. Fenn admitted to texting the minor and admitted to sending her images.
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 Attorney’s 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.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Oil and Gas Repairman Pleads Guilty to over $400,000 in Fraudulent InvoicesRead the Press Release
Oklahoma City, Oklahoma – LUIS ENRIQUE DAMAZO, also known as Luis Enrique Cassinelli, 54, of Oklahoma City, Oklahoma, has pleaded guilty to defrauding a Texas company of more than $400,000 through fraudulent invoices, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to charges filed on December 29, 2017, Damazo was employed as a repair technician by Dexter Field Services LP, a company headquartered in Austin, Texas. Dexter Field Services provided leak detection, environmental monitoring, and consulting services to industrial clients in the energy sector. Damazo’s job was to repair toxic vapor analyzers used to detect leaks at oil and gas refineries, which involved ordering replacement parts. From November 2009 through October 2015, he is alleged to have secretly operated a business known as BC Environmental. According to the charges, he used that business to prepare fictitious order forms and invoices showing purchases purportedly made on behalf of Dexter Field Services for equipment, replacement parts, and tools. He is charged with having received more than $400,000 from Dexter Field Services as a result of these fraudulent documents. He allegedly caused these checks to be deposited in a BC Environmental bank account and used the money for his personal benefit.
Today Damazo admitted these allegations and entered a guilty plea to mail fraud before U.S. District Judge Stephen P. Friot. As a result, he could be imprisoned for a maximum of twenty years, to be followed by three years of supervised release. He could also be fined up to $250,000 and will be subject to mandatory restitution. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Jessica L. Perry and William E. Farrior are prosecuting the case.
Reference is made to court filings for further information.
O.C. Man Charged with Producing Child Pornography and Child Sex Tourism for Allegedly Engaging in Sexual Conduct with Boy in ChinaRead the Press Release
LOS ANGELES – A federal grand jury today named an Aliso Viejo man in an indictment that accuses him of traveling to China to engage in illegal sexual activity with a 16-year-old and taking sexually explicit photographs of the victim.
Ezequiel Christopher Barragan, 51 – who previously was a Spanish teacher at Dana Hills High School, as well as a youth baseball coach – was charged today in a three-count indictment that accuses him of producing child pornography, traveling with the intent to engage in illicit sexual conduct with a minor, and engaging in illicit sexual conduct with a minor in a foreign place.
According to the indictment, Barragan traveled to China in August 2009, where he allegedly coerced a boy to engage in sexual conduct “for the purpose of producing a visual depiction of such conduct.”
The charge of producing child pornography carries a mandatory minimum prison sentence of 15 years and a maximum of 30 years. The charges of international travel and engaging in illicit sexual activity each carry a statutory maximum sentence of 30 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Barragan, who is currently serving a state prison sentence in an unrelated case, will be arraigned on the indictment in the coming weeks. The case against Barragan was investigated by the United States Postal Inspection Service, which received substantial assistance from the Los Angeles Joint Regional Intelligence Center and the Orange County Child Exploitation Task Force.
This case was indicted by Assistant United States Attorney Vanessa Baehr-Jones of the Violent and Organized Crime Section.
Nine Indicted by Federal Grand Jury for Multiple Violent Robberies in North TexasRead the Press Release
DALLAS — A federal grand jury returned an indictment last week charging nine Houston residents with offenses related to eight violent robberies in North Texas, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Specifically, the nine-count indictment, unsealed yesterday afternoon, charges, Jarvis Broussard, aka “Koppo,” 29; Trey Nathaniel Dickerson, 25; Christian Demond Gilbert, aka “Go Getta,” 28; Randy Lamark Hammond, 23; John Christopher Jones, aka “2tall,” 27; Brandon Chermaine Mallet, aka “Wookie,” 31; Chrisheena Ladale Milburn, aka “Beanz,” 27; Fernando Rafael Taylor, 29; and Jonathan Walker, aka “Johnathan Walker,” 31, with one count each of conspiracy to interfere with commerce by robbery and at least one additional count of interference with commerce by robbery.
The defendants were arrested today and will remain in custody pending their initial appearances.
The indictment arises out of a series of “jugging” offenses in the Dallas area. “Jugging” is a term informally used to refer to crimes that involve surveilling banks for potential targets suspected of having significant sums of cash and following the targeted victims to other locations where they are robbed. The indictment alleges that, on February 4, 2016 and continuing until at least July 22, 2017, the defendants conspired together to commit several robberies to obtain U.S. currency. The defendants discussed and planned the surveillance and selection of individuals for robbery; the acquisition of property for use in committing robbery; the timing and means of transportation to commit robbery; the roles of participants during the preparation for and commission of robbery; the division of proceeds obtained from robbery; and plans to avoid detection and apprehension by law enforcement.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
The investigation is being conducted by the FBI, with assistance from the Dallas, Garland, Irving, and Richardson Police Departments. Assistant U.S. Attorneys Brian McKay and Sid Mody are in charge of the prosecution.
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New Orleans Men Plead Guilty to Gun and Carjacking ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced today that RODNEY BROWN, age 22 and MICHAEL PORTIS, 27, both of New Orleans, pled guilty to carjacking related charges. PORTIS pled guilty to brandishing a firearm during and in relation to a carjacking and BROWN pled guilty to carjacking.
According to court documents, on April 24, 2016, at approximately 2:29 a.m., two females were carjacked in the driveway of a house located in the 5000 block of N. Derbigny Street. The victims stated that they exited the house and entered a vehicle that was parked in the driveway of that location. PORTIS and BROWN, dressed in black and brandishing guns, approached from opposite sides of the vehicle. BROWN tapped on the window of the vehicle with a gun and stated, “You move I’ll shoot.” A third suspect stood nearby and acted as a lookout. The two females exited the car and the suspects entered and drove away. A short time later, the car was returned and left in the driveway.
One of the victims told the police officers that one of the suspects had facial tattoos. Officers canvassed the area, set up a perimeter and searched the block. Officers located PORTIS and two other subjects hiding in high bush nearby. PORTIS had facial tattoos and was wearing dark pants and a dark, hooded sweatshirt, consistent with the description given by the victims. The victim positively identified PORTIS as one of the gunmen. BROWN was not apprehended on the date of the incident, but was later identified and implicated on jail phone call recordings.
PORTIS faces a possible maximum sentence of life imprisonment, a fine of $250,000 and up to five years on supervised release. BROWN faces up to 15 years imprisonment, a fine of $250,000, and up to three years on supervised release. U.S. District Judge Carl J. Barbier scheduled PORTIS and BROWN to be sentenced on May 17, 2018.
New Haven Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT EPPS, 25, of New Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on August 28, 2017, EPPS participated in the sale of a stolen Smith and Wesson .223 caliber semi-automatic rifle and two rifle magazines containing a total of 39 rounds of .223 caliber ammunition. On that date, EPPS transported the rifle and ammunition to a parking lot in New Haven. He then removed the firearm and ammunition from the trunk of his vehicle and handed the items to another person who, in turn, handed them to the purchaser.
EPPS’ criminal history includes state felony convictions for narcotics distribution and identity theft.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Arterton scheduled sentencing for April 27, 2018, at which time EPPS faces a maximum term of imprisonment of 10 years. EPPS is released on bond pending sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Mexican Man Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that JORGE GARCIA-HERNANDEZ, age 33, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien.
According to court documents, GARCIA was previously removed from the United States on April 21, 2012. He was later found in the Eastern District of Louisiana on September 15, 2017, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
GARCIA faces a maximum term of imprisonment of two years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee. U.S. District Judge Mary Ann Vial Lemmon set sentencing for March 1, 2018.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mexican Citizen who was in the U.S. Illegally Sentenced to 210 Months in Federal Prison for His Role in a Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Rosalio Ramos Tapia, aka “Rosalio Ramos,” “Chale,” and “Mocho,” 43, a citizen of Mexico and in the United States illegally, was sentenced earlier this week before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Tapia was sentenced to 210 months in federal prison following his guilty plea in October 2016 to one count of conspiracy to possess with intent to distribute and to distribute a controlled substance, said substance being 50 grams or more of methamphetamine. He was in the United States illegally at the time of the offense and will be deported after serving his sentence. Tapia has been in custody since his arrest in July 2016.
Tapia was charged along with twenty-one others with various offenses related to a methamphetamine distribution conspiracy. Of the twenty-one charged, fourteen have pleaded guilty, seven have been sentenced and two are awaiting trial. Four defendants remain fugitives.
According to documents filed in the case, between September 25, 2015 through March 18, 2016, Tapia and his coconspirators conspired to distribute methamphetamine and on several occasions, discussed the preparation and conversion of liquid methamphetamine into crystal methamphetamine.
Specifically, Tapia used coded language to purchase multiple kilograms of methamphetamine so that he could distribute the methamphetamine to other people. Once Tapia sold the kilograms of methamphetamine he provided drug proceeds to the supplier of the methamphetamine.
The Federal Bureau of Investigation investigated, with assistance from the Dallas Police Department and the Internal Revenue Service Criminal Investigations Division. Assistant U.S. Attorney George Leal prosecuted.
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Memphis Operator, LLC d/b/a Spring Gate Rehabilitation and Healthcare Center will pay $500,000 to the United States and the State of Tennessee for services rendered to residents of Spring Gate that were materially substandard and worthlessRead the Press Release
Memphis, TN – Memphis Operator, LLC d/b/a Spring Gate Rehabilitation and Healthcare Center will pay $500,000 to the United States and the State of Tennessee to resolve allegations of false claims to Medicare and Tenncare for services rendered to residents of Spring Gate that were materially substandard, worthless and were provided in violation of certain essential requirements that the United States expects skilled nursing facilities to meet.
The Complaint alleged that from 2012 to 2015, Spring Gate provided substandard and worthless nursing home services to residents. Under federal and state law, Medicare and Tenncare will not pay for services deemed to be so deficient that they are essentially worthless.
The allegations resolved in this settlement were first raised in a lawsuit filed against Spring Gate under the qui tam provisions of the False Claims Act, which permits parties to sue on behalf of the government for the submission of false claims and share in the recovery. The False Claims Act, 31 U.S.C. §§ 3729-3733, provides the United States with a cause of action against any person or entity that knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval.
The case was captioned United States of America and the State of Tennessee ex rel. Chris Godwin v. Memphis Operator, LLC (d/b/a Spring Gate Rehabilitation and Healthcare Center). Vericare Management, Inc. and PharMerica Corporation, No. 2:15-cv-2090 (W.D.Tenn.). During the investigation of this matter, Spring Gate cooperated with the United States and the State of Tennessee in bringing this matter to a resolution.
"Residents of nursing homes are some of our most vulnerable citizens. When nursing homes break the law by defrauding the government for substandard or worthless services we will use our resources to combat this fraud and hold them accountable," said D. Michael Dunavant, United States Attorney for the Western District of Tennessee.
"Protecting the health and safety of Medicare patients is one of our primary concerns," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "Nursing facilities that fail to meet minimum quality standards can expect to pay a heavy price for neglecting their residents."
In addition to the $500,000 settlement, Spring Gate entered into a Corporate Integrity Agreement with the Department of Health and Human Services’ Office of Inspector General intended to deter future wrongful conduct.
This investigation was conducted by the United States Department of Health and Human Services Office of the Inspector General, the Tennessee Bureau of Investigation and the Tennessee State Attorney General’s Office.
Assistant United States Attorneys Stuart J. Canale and Matt Waldrop and Steve Jobe, Senior Counsel for the Tennessee Attorney General prosecuted this case on the government’s behalf.
McHenry Man Convicted of Child Pornography ChargesRead the Press Release
ROCKFORD — A McHenry man was found guilty of child pornography charges following a four-day jury trial in federal court in Rockford.
MICHAEL L. CHAPARRO, 29, was charged with one count of transporting child pornography via the internet, and two counts of accessing child pornography that had crossed state lines, including an image of a prepubescent minor and a minor under 12 years of age, with intent to view the child pornography.
According to the indictment and the evidence at trial, on Aug. 7, 2014, Chaparro knowingly transported to Pennsylvania and Texas materials depicting one or more actual minors engaged in sexually explicit conduct. In addition, evidence at trial indicated that Chaparro accessed a smart phone on Nov. 24, 2014, and computer hard drive on July 30, 2013, with intent to view child pornography, knowing that one or more persons depicted in an image involved a prepubescent minor or a minor who had not attained 12 years of age.
Transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, and accessing child pornography carries a maximum of ten years in prison and up to 20 years in prison for an offense involving a minor under 12 years of age. Each count carries a $250,000 maximum fine. The court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. A sentencing hearing will be set by the Court at a later date.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey Sallet, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Bill Prim, McHenry County Sheriff. The Illinois Internet Crimes Against Children Task Force assisted in the investigation.
The government is represented by Assistant U.S. Attorneys Michael D. Love and Margaret J. Schneider.
Manhattan Man Charged in Connection with Arson at A Manhattan BarRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Daniel A. Nigro, the Commissioner of the New York City Fire Department (“FDNY”), announced today the arrest of LUIS SAQUICILI in connection with an arson in New York, which occurred on the evening on January 31, 2018. It is alleged that SAQUICILI threw a glass bottle with ignitable liquid and a lit wick, commonly known as a “Molotov cocktail,” into a bar in East Harlem. SAQUICILI was arrested this morning, and presented today in Manhattan federal court before the Honorable Kevin N. Fox.
Manhattan U.S. Geoffrey S. Berman said: “As alleged, Luis Saquicili put the public at grave risk when he threw an incendiary device into a bar that was open for business. Thanks to the Strategic Explosive and Arson Response Task Force, shortly after this incident, Saquicili was located and arrested.”
ATF Special Agent-in-Charge Ashan M. Benedict said: “The alleged actions of Luis Saquicili could have resulted in damage, destruction and death for many innocent people. Thanks to the efforts of the Agents, Detectives and Fire Marshals assigned to the ATF/ NYPD/FDNY Strategic Explosive and Arson Response Task Force, Mr. Saquicili was quickly apprehended and brought to justice. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting this case.”
Police Commissioner James P. O’Neill said: "This defendant is accused to hurling a Molotov cocktail into an East Harlem bar that was open for business. He put the lives of civilians and first responders at risk, so I want to thank those who responded to and investigated this act of arson for their hard work to bring this dangerous individual to justice."
Fire Commissioner Daniel A. Nigro said: “Without question, this fire could have resulted in many lives lost. I applaud our Fire Marshals and the members of the NYPD and ATF for their quick work and collaboration to apprehend this suspect.”
Accordingly to allegations in the Complaint filed in Manhattan federal court.[1]
On January 31, 2018, at approximately 8:00 p.m., SAQUICILI entered a bar in New York, where he had been a patron for over one year. He was refused entry by the owner of the bar because he was heavily intoxicated. At approximately 10:45 p.m., SAQUICILI returned to the bar and threw a glass bottle that contained an ignitable fluid and lit wick onto the floor of the bar. The bottle broke causing a fire and charring the floor of the bar.
Mr. Berman praised the outstanding work of the Strategic Explosive and Arson Response Task Force of the ATF, the NYPD, and the FDNY.
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SAQUICILI, 46, of New York, New York, is charged with one count of arson, which carries a mandatory minimum of five years in prison and a maximum 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jamie E. Bagliebter is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man from Liberal Sentenced for Distributing Child PornographyRead the Press Release
WICHITA, KAN. – A man from Liberal was sentenced Thursday to 72 months in federal prison for distributing child pornography, U.S. Attorney Stephen McAllister said.
Michael Martin, 50, Liberal, Kan., pleaded guilty to one count of distributing child pornography. Martin admitted that a detective with the Kansas Internet Crimes Against Children Task Force downloaded child pornography from Martin’s computer over a file-sharing network. The images depicted a prepubescent girl engaged in sex acts with an adult. Investigator also found child pornography on Martin’s smartphone.
McAllister commended Homeland Security Investigations, the Kansas Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.
Man Indicted for Firearms and Hobbs Act RobberyRead the Press Release
U.S. Attorney Duane A. Evans announced that STEPHAN MITCHEL THOMAS, age 22, of Holden, Louisiana, was charged with federal firearms violations and Hobbs Act robberies in a seven-count indictment.
According to the indictment, THOMAS committed robberies in violation of Title 18, United States Code 1951(a) on July 11, 2016 and September 1, 2016, and brandished firearms during these robberies, in violation of Title 18, United States Code 924(c). The indictment also alleges that, on August 31, 2016, THOMAS possessed a firearm silencer, a short-barrel rifle, and a sawed-off shotgun, without registering these firearms in the National Firearms Registration and Transfer Record, in violation of Title 26, United States Code, Section 5861.
U. S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, THOMAS faces, as to each count of Hobbs Act robbery, a maximum term of imprisonment of 20 years, a fine of $250,000, five years supervised release after imprisonment, and a $100 special assessment. As to each count of brandishing a firearm during a crime of violence, THOMAS faces a minimum sentence of seven years up to a maximum term of imprisonment of life, consecutive to any other term of imprisonment, a fine of $250,000, five years supervised release after imprisonment, and a $100 special assessment. As to each count of possessing unregistered firearms, THOMAS faces a maximum term of imprisonment of 20 years, a fine of $250,000, five years supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Shirin Hakimzadeh.
Lubbock Man Involved in Furanyl Fentanyl Distribution Conspiracy Pleads Guilty to Federal Drug ChargeRead the Press Release
LUBBOCK, Texas — A Lubbock, Texas, man, Steven Lawrence Forcum, 32, appeared yesterday before U.S. Magistrate Judge D. Gordon Bryant Jr. and pleaded guilty to a federal offense stemming from his role in a large-scale furanyl fentanyl distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Forcum pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute furanyl fentanyl. He faces a statutory penalty of not more than twenty years in federal prison and a $1 million fine. Judge Bryant recommended that the district court accept Forcum’s guilty plea.
Co-defendants, Krisandrea Monee Dobbs, 31; Peyton Cleveland Wilson, 27; and Ashlyn Paige Utley, 23, previously pleaded guilty to their role in the conspiracy and are awaiting sentencing.
Law enforcement first learned of Forcum’s involvement in distributing the potent synthetic opioid when Forcum voluntarily made a police report that someone had stolen his supply of fentanyl.
According to the plea agreement factual resume in Forcum’s case, between 2015 and October 2016, Forcum used his email account to contact numerous international companies to purchase large quantities of furanyl fentanyl and other controlled substances. In corresponding with these international companies, Forcum would boast that he sells a kilogram of furanyl fentanyl every two months. He also bragged that fentanyl and synthetic fentanyl were his “hottest sellers for years.” Forcum admitted that he routinely supplied Wilson and Dobbs with furanyl fentanyl for distribution in the Lubbock, Texas, area.
Fentanyl is a potent synthetic opioid analgesic that is about 30 to 40 times stronger than heroin and up to 100 times more powerful than morphine. Besides analgesia, Fentanyl produces a variety of pharmacological effects, including alteration in mood, euphoria, drowsiness, respiratory depression, suppression of cough reflex, constriction of pupils, and impaired gastrointestinal mobility. Fentanyl is a Schedule II controlled substance. Fentanyl is potentially lethal, even at very low levels. Ingestion of small dosages—the equivalent of a grain of salt—can be fatal. Fentanyl can also be absorbed through the skin and accidental inhalation of airborne powder can occur.
Furanyl Fentanyl is a controlled substance analogue that has a chemical structure substantially similar to Fentanyl, a Schedule II controlled substance under the Controlled Substances Act, and has a stimulant, depressant, or hallucinogenic effect on the central nervous system that is substantially similar to or greater than the stimulant, depressant, or hallucinogenic effect on the central nervous system of Fentanyl, a Schedule II controlled substance.
The Drug Enforcement Administration and the Lubbock Police Department are in charge of the investigation.
Assistant United States Attorney Russell Lorfing is in charge of the prosecution.
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Leonardtown Man Exiled to 10 Years in Prison for Possession of A FirearmRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Deborah J. Chasanow sentenced Jason Andre Armstrong, age 43, of Leonardtown, Maryland to 10 years in prison followed by three years of supervised release for being a felon in possession of a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Sheriff Timothy K. Cameron of the St. Mary’s County Sheriff’s Department; and Richard Fritz of the St. Mary’s County State’s Attorney’s office.
According to his plea agreement, on March 5, 2016, Armstrong entered a residence in Lexington Park, Maryland, demanded money from the occupants and threatened them with a handgun. Armstrong then left the residence, got into the rear driver’s side passenger seat of a vehicle, and the vehicle drove away. Shortly after receiving a description of the vehicle, St. Mary’s County Sheriff’s officers stopped the vehicle and arrested Armstrong.
Officers recovered a 9mm caliber semi-automatic pistol from underneath the driver’s seat on the rear passenger side. The pistol was reported stolen in 1995 from a federally licensed firearms store in St. Mary’s County, Maryland. After the officers advised Armstrong of his rights on the scene, Armstrong admitted that he possessed the firearm.
On April 20, 2005, in St. Mary’s County, Maryland, Armstrong was convicted of robbery. As a felon, Armstrong was prohibited from possessing a firearm.
Acting United States Attorney Stephen M. Schenning commended the FBI, the St. Mary’s County Sheriff’s Department and the St. Mary’s County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Schenning thanked Assistant U.S. Attorney Kelly Hayes, who prosecuted the case.