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25 January 2018
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned an Indictment against the following:
Murrells Inlet Man Indicted for Illegal Re-entry into the United States After Deportation. Jesus Patino-Lopez, age 31, of Murrells Inlet, South Carolina, was charged in a single-count indictment with illegal re-entry into the United States after deportation, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Patino-Lopez could receive is a fine of $250,000.00 and/or two years imprisonment.
The case was investigated by the Immigration and Customs Enforcement-Enforcement Removal Operations. The case is assigned to Assistant United States Attorney Lauren Hummel of the Florence office for prosecution.Two South Carolina Men Indicted in Connection with Conspiracy to Import Cocaine. Kemo Jason Smith, age 39, of Camden, South Carolina, and Deandre Adarias Jenkins, age 27, of Conway, South Carolina, were both charged in a multi-count indictment with Conspiracy to Import Cocaine and Conspiracy to Possess With Intent to Distribute Cocaine, in violation of Title 21, United States Code, Sections 846 and 963. Jenkins was additionally charged with Possession of Firearm in Furtherance of a Drug Trafficking Crime, Possession With Intent to Distribute Controlled Substances, and Unlawful Use of U.S. Mail, in violation of Title 18, United States Code, Section 924(c), and Title 21, United States Code, Sections 841 and 843(b). The maximum penalty they could receive for the conspiracy charges is a fine of $5,000,000.00 and/or 40 years imprisonment.
The case was investigated by the U.S. Postal Inspection Service with assistance by the Horry County Police Department. The case is assigned to Assistant United States Attorney Everett McMillian of the Florence office for prosecution.The United States Attorney stated that all charges in this Indictment are merely accusations and that the defendant is presumed innocent until and unless proven guilty.
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Elizabethtown Man Pleads Guilty to Attempted Online Enticement and Distribution of Obscene Material to A MinorRead the Press Release
LOUISVILLE, Ky. – An Elizabethtown man pled guilty to two child exploitation offenses yesterday in United States District Court, announced United States Attorney Russel M. Coleman.
Timothy Scott Walters, 51, admitted to online communications with a person he believed to be a 15-year-old girl for the purpose of meeting her to engage in sexual conduct. He also admitted to sending obscene material to the same person.
According to the plea agreement and other court records, law enforcement officials became aware of Walters’ conduct as the result of an online undercover operation. In March of last year, an investigator responded to a Louisville Craigslist ad indicating that the person who placed the ad was “looking for a sub girl to please me, the younger the better”. The investigator replied to the ad an advised that he was a 15-year-old girl. Walters asked details about the girl’s sexual history, sent graphic sexual photos of himself, and requested to meet her to engage in sex acts.
The investigator determined that Walters worked for the United States Postal Service in Elizabethtown, Kentucky. After being advised of his constitutional rights and waiving those rights, Walters admitted that he had placed the Craigslist ad that resulted in the conversation with a 15-year-old girl. He went on to state that he used the Craigslist personals site in the past to meet people for sexual encounters. In his estimate he had used the site 10 to 15 times to meet individuals for sex. He also admitted that the photos he sent to the girl were pornographic and that the age of consent in Kentucky is 16.
Walters will be sentenced on May 11, 2018, at 11:00 a.m. before Chief United States District Judge Joseph H. McKinley, Jr. Walters faces a statutorily mandated sentence of 10 years in prison and at least five years of Supervised Release. There is no parole in the federal system. Walters remains in the custody of the United States Marshals Service.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Office of Attorney General’s Department of Criminal Investigations conducted the investigation with assistance from the United States Postal Inspectors.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Eastern District of New York U.S. Attorney’s Office Joins in Collections of over $3.4 Billion in Criminal and Civil Actions in Fiscal Year 2017Read the Press Release
United States Attorney Richard P. Donoghue announced today that the Eastern District of New York, working collaboratively with other offices as well as on its own, collected over $3.4 billion in criminal and civil actions in Fiscal Year 2017. Of this amount, $3,109,923,738 resulted from cases handled in conjunction with other U.S. Attorneys’ Offices and components of the Department of Justice. Collections from criminal and civil actions handled solely by the Eastern District of New York totaled $319,091,148, with $216,178,698 in criminal actions and $102,912,449 in civil actions.
“The Eastern District’s robust recoveries in Fiscal Year 2017 reflects the Office’s commitment to justice by combatting fraud and other misconduct, forfeiting the proceeds and instrumentalities of crime, and providing restitution to the victims of crime,” stated U.S. Attorney Donoghue.
Overall, the Department of Justice collected just over $15 billion in civil and criminal actions in the fiscal year ending September 30, 2017.
Additionally, working with partner agencies and divisions within the Department of Justice, the Eastern District forfeited $92,106,132 in assets tainted by crime. 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.
FY 2017 Collections Highlights
In January 2017, the Eastern District of New York, in conjunction with its partners, recovered $3.1 billion in civil penalties from Deutsche Bank under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), to resolve claims related to Deutsche Bank’s conduct in the packaging, securitization, marketing, sale and issuance of Residential Mortgage Backed Securities (RMBS) prior to 2008. In a Statement of Facts that accompanied the settlement, Deutsche Bank admitted to making false representations and omitting material information from disclosures to investors about the loans in its RMBS securitizations.
In September 2017, AmerisourceBergen Specialty Group (ABSG), a wholly-owned subsidiary of AmerisourceBergen Corporation, one of the nation’s largest wholesale drug companies and number 11 on the Fortune 500 list, pled guilty to illegally distributing misbranded drugs. ABSG agreed to pay a total of $260 million to resolve criminal liability for its distribution of oncology supportive-care drugs from a facility that was not registered with the Food and Drug Administration (FDA).
Collections Overview
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.
Drug Cartel Leader ConvictedRead the Press Release
Assistant U.S. Attorney Matthew J. Sutton
(619) 546-8941
NEWS RELEASE SUMMARY – January 25, 2018
SAN DIEGO – Major Mexican drug cartel leader Sajid Emilio Quintero Navidad, aka Cadete, pleaded guilty in federal court today, following his arrest by United States law enforcement at the San Ysidro Port of Entry on October 11, 2017.
Quintero Navidad, 36, pleaded guilty to all charges in an indictment returned by a federal grand jury in San Diego on September 22, 2017, charging him with Conspiracy to Distribute Controlled Substances Intended for Importation, Conspiracy to Import Controlled Substances, and Conspiracy to Launder Monetary Instruments. Quintero Navidad is the cousin of fugitive Mexican drug lord Rafael Caro Quintero and the associate of high-ranking Mexican cartel leader Ismael Zambada-Garcia, aka Mayo. He is believed to be one of the highest-ranking Mexican cartel leaders to be arrested in the United States.
In August 2014, the Department of Treasury’s Office of Foreign Assets Control (OFAC) designated Quintero Navidad as a “Special Designated Narcotics Trafficker,” pursuant to the Foreign Narcotics Kingpin Designation Act. As part of that designation, OFAC identified Quintero Navidad as a Mexico-based narcotics trafficker who coordinated the transportation of ton quantities of cocaine from South America through Mexico and onto the United States.
In a proceeding today before U.S. District Judge Cathy Ann Bencivengo, Quintero Navidad accepted responsibility for his role as a leader within a drug trafficking organization based in Mexico, acknowledging that he organized the transportation and distribution of hundreds of kilograms of controlled substances, including cocaine and heroin, for importation from Mexico into the United States. Quintero Navidad also admitted to laundering thousands of dollars of U.S. currency, which represented the proceeds of the importation and distribution of drugs within the United States back to Mexico. A sentencing hearing is scheduled for April 20, 2018 at 9 a.m. before Judge Bencivengo.
“Quintero Navidad’s guilty plea today sends a clear message to other drug kingpins operating in Mexico. There is no place to hide because our federal team will work tirelessly to hunt you down to face justice in our courts,” said U.S. Attorney Adam L. Braverman. “Our investigation and prosecution of other high-level cartel members is continuing and is having a significant impact on the global operations of the Mexican drug cartels.”
“Today’s guilty plea is an example of the great partnership of HSI Calexico and other federal law enforcement agencies, who worked diligently to bring this case to prosecution,” said Dave Shaw, special agent in charge of HSI in San Diego. “HSI will continue to investigate, disrupt, and ultimately dismantle these drug trafficking organizations who continue to engage in violent criminal activity.”
“The importance of this plea is twofold: One, drug traffickers will be arrested and prosecuted to the full extent of the law; and two, it sends the message to the other members of this violent drug trafficking organization that they are next,” said DEA San Diego Acting SAC Steve Woodland. “This is a major blow to this international drug trafficking organization and DEA will continue to investigate its members.”
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The indictment in this case marks the conclusion of the initial phase of a multi-year OCDETF investigation. This joint Homeland Security Investigations (HSI) and Drug Enforcement Administration (DEA) investigation targeted the leadership elements, lieutenants, associates, and money launderers connected with the Rafael Caro-Quintero (RCQ) Drug Trafficking Organization and Beltran Leyva Organization (BLO).
U.S. Attorney Braverman praised the outstanding work of the federal team from HSI Calexico/DEA Imperial County in the culmination of this investigation. U.S. Attorney Braverman also thanked U.S. Customs and Border Protection, the U.S. Marshals Service, the U.S. Department of Justice’s Office of Enforcement Operations and the Office of International Affairs, and the Department of Treasury’s Office of Foreign Assets Control for their ongoing assistance in this investigation.
The government’s case is being prosecuted by Assistant U.S. Attorney Matthew J. Sutton.
DEFENDANT Case Number 17CR2976-CAB
Sajid Emilio Quintero Navidad, aka Cadete Age: 36 Mexico City, Mexico
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. § 1956. Term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and 5 years of supervised release.
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Department of Homeland Security, Joint Task Force – Investigations
Customs and Border Protection, Office of Field Operations
United States Marshals Service
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
Department of Treasury, Office of Foreign Assets Control
Customs and Border Protection, Office of Border Patrol
Immigration and Customs Enforcement, Enforcement and Removal Operations
El Centro Police Department
Brawley Police Department
Imperial County District Attorney’s Office
Imperial Valley, Law Enforcement Coordination Center
Dover Insurance Broker Sentenced for Tax FraudRead the Press Release
BOSTON – A Dover, Mass. insurance broker was sentenced today in federal court in Boston in connection with filing fraudulent personal tax returns.
Anthony J. May, 62, was sentenced by U.S. District Court Judge William G. Young to eight months in prison and one year of supervised release. In April 2017, May was convicted by a federal jury of two counts of filing false tax returns for 2008 and 2009.
May owned and operated Clients First Financial Insurance Agency, LLC, through which he sold life insurance products as a broker, and Advantage Life Settlements, LLC, through which he which he served as a broker for insured individuals looking to sell their personal life insurance policies to third party investors. May operated his businesses out of an office suite in Hingham where he also leased space to other independent insurance agents. May filed false 2006 through 2009 individual income tax returns that did not report $735,000 in income that he received from insurance commissions, broker fees and lease rental payments.
United States Attorney Andrew E. Lelling; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Victor A. Wild of Lelling’s Economic Crimes Unit and Trial Attorney Eric Powers of the Justice Department’s Tax Division prosecuted the case.
District Man Sentenced to Five Years in Prison for Robbing Food Delivery WorkerRead the Press Release
WASHINGTON – Deavies Kelley, 24, of Washington, D.C., was sentenced today to a five-year prison term for robbing a food delivery driver of the man’s scooter last year in Southwest Washington, U.S. Attorney Jessie K. Liu announced.
Kelley pled guilty in October 2017, in the Superior Court of the District of Columbia, to a charge of robbery. He was sentenced by the Honorable Thomas J. Motley. Upon completion of his prison term, Kelley will be placed on five years of supervised release. At the time he committed this crime, Kelley was on supervised release stemming from a 2013 robbery conviction. He could face additional prison term for violating terms of his release.
According to the government’s evidence, on April 21, 2017, at approximately 9:20 p.m., the victim rode his motor scooter to the 300 block of O Street SW to make a food delivery. When he arrived, he saw a group of individuals and asked them if they had ordered food. Kelley replied, “Yes” and gave his name as “Marcus.” Because “Marcus” was not the name of the person who ordered the food, the victim drove around the block. When he returned, he asked the group the same questions. This time, an accomplice of Kelley’s placed a cold metal object to the victim’s head and told him to get on the ground. The victim got off his scooter and laid down on the pavement. Kelley drove off with the scooter. The victim walked away and called 911.
The scooter was recovered the next day. Kelley, who was wearing a GPS monitoring device at the time of the crime, was linked to the robbery and arrested on June 13, 2017. No others have been arrested in the investigation.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the work of Assistant U.S. Attorney Louis Manzo, who prosecuted the case.
Controller at Fontana Company Sentenced to over One Year in Federal Prison for Embezzling $1.5 Million from EmployerRead the Press Release
LOS ANGELES – A Riverside woman who was the controller at a Fontana-based metal forging company was sentenced this morning to one year and one day in federal prison for embezzling more than $1.5 million from her employer.
Jacquelin Dyer, 68, who was the controller and co-general manager at Pacific Forge, Inc., was sentenced by United States District Judge George H. Wu. In addition to the prison term, which Dyer will begin serving next week, Judge Wu ordered her to pay $1,365,556 in restitution to the victim company.
As the controller of Pacific Forge, Dyer was responsible for all aspects of accounting at the company, and she was authorized to sign corporate checks for amounts up to $5,000. According to court documents, Dyer used Pacific Forge corporate checks to pay her personal bills for about 10 years. Dyer printed and signed corporate checks that she made appear would be used to pay Pacific Forge vendors, but in reality were mailed to pay her personal expenses.
Dyer pleaded guilty in September to a mail fraud charge specifically related to a $4,752 check that she mailed to American Express on January 11, 2013 to pay her personal credit card bill. Dyer made false entries in the Pacific Forge books to make this check appear to be a payment to a vendor.
“[F]or about a decade, [Dyer] embezzled and stole over $1.5 million of funds that had been entrusted to her by her employer,” prosecutors wrote in papers filed with the court. “[Dyer] used this money to pay her credit card expenses, her mortgage, her car repairs, and other personal expenditures.”
In total, Dyer embezzled approximately $1,525,556 of Pacific Forge funds to pay for her mortgage, personal tax payments, and vehicle repair expenses.
Dyer has already paid $160,000 in restitution.
This case was investigated by the Federal Bureau of Investigation, which received substantial assistance from the Fontana Police Department.
The case against Dyer was prosecuted by Assistant United States Attorney Bilal A. Essayli of the Riverside Branch Office.
Conspirator in Multi-State Drug Trafficking Organization to be Sentenced on MondayRead the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced today that Antonio Crawley, age 39, will be sentenced on Monday, January 29th, at 9:30 A.M. The sentencing hearing will take place in the G. Ross Anderson, Jr. Federal Courthouse, 315 South McDuffie Street, Anderson, South Carolina, before the Honorable Timothy M. Cain, U.S. District Judge.
The Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation Division, the Anderson County Sheriff’s Office, the Anderson Police Department, the Greenville County Sheriff’s Office, the Greenville Department of Public Safety, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the Richland County Sheriff’s Office, the South Carolina Law Enforcement Division, the Franklin County (GA) Sheriff’s Office, and the Douglas County (GA) Sheriff’s Office investigated the case.
This case is assigned to Assistant U.S. Attorney Andy Moorman, Deputy Criminal Chief for the Narcotics Unit.
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Connecticut Resident Sentenced to Prison for Concealing Assets in Swiss AccountsRead the Press Release
A Greenwich, Connecticut, man was sentenced to six months in prison today for failing to report over $28 million in funds he maintained in Swiss bank accounts to the Department of Treasury, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, and Chief Don Fort, IRS Criminal Investigation (IRS CI). In pronouncing the sentence, U.S. District Court Judge Brinkema took into consideration Kim’s cooperation with the government, which occurred for more than a five-year span.
According to documents and other information provided in court, Hyong Kwon Kim, a citizen of South Korea and, since 1998, a legal permanent resident of the United States, resided in Massachusetts and later in Connecticut. Kim, a sophisticated business executive who ran family businesses with operations in the United States and internationally, inherited tens of millions of dollars that he stashed in secret accounts at Credit Suisse, its subsidiaries, and another Swiss bank. Kim deliberately violated the U.S. bank secrecy laws by failing to report his foreign financial accounts to the Treasury Department. U.S. citizens, resident aliens, and permanent legal residents with a foreign financial interest in or signatory authority over a foreign financial account worth more than $10,000 are required to file a Report of Foreign Bank and Financial Accounts, commonly known as an FBAR, disclosing the account.
Kim conspired with a host of foreign enablers, including Dr. Edgar H. Paltzer, his Swiss attorney who pleaded guilty in 2013 in the Southern District of New York, and bankers to conceal his assets and income in Swiss accounts held in his own name, the name of a relative, and in the names of sham corporate entities. Kim schemed with Paltzer and his bankers to structure financial transactions in a manner that allowed him to utilize the funds in the United States, while concealing his ownership and control of the offshore funds. For example, Kim had checks issued to third parties in the United States in order to purchase a luxury home in Greenwich, Connecticut, a waterfront vacation retreat in Chatham, Massachusetts, and jewelry adorned with multi-carat diamonds, emeralds, and rubies. In order to conceal his ownership of the vacation home, Kim and Paltzer created a sham entity to hold title to the home. Kim and Paltzer acted as if Kim rented the home from a fictitious owner.
In 2008, as Credit Suisse closed accounts held in the names of sham entities owned by persons residing in the United States, Kim refused to bring his assets to the United States. Instead, he transferred his assets to another Swiss bank. Kim send coded messages from the United States to his Swiss banker in order to maintain control of his account.
Kim ultimately brought his assets to the United States by paying a Swiss jeweler millions of dollars for a ring with a 13.9 carat sapphire and three loose diamonds totaling 13 carats.
Along with failing to report his foreign accounts, Kim also filed false income tax returns for 1999 through 2010 with the IRS, failing to report investment income and failing to disclose the earnings from his holdings in the offshore accounts.
In addition to his term of incarceration, U.S. District Court Judge Brinkema ordered Kim to pay a fine of $100,000 and $243,542 in restitution to the IRS. Kim, in accordance with his plea agreement, also paid a civil penalty of over $14 million dollars to the U.S. Treasury for his willful failure to file, and willfully filing false, FBARs.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Boente and IRS CI Chief Fort commended special agents of IRS CI, who investigated the case, and Senior Litigation Counsel Mark F. Daly and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Mark Lytle of the Eastern District of Virginia, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Conference to Explore Veterans Treatment Courts, Behavioral Health of VeteransRead the Press Release
HUNTSVILLE – The U.S. Attorney’s Office, University of Alabama in Huntsville’s Office of Diversity and Multicultural Affairs, University of Alabama School of Social Work, and U.S. Department of Veterans Affairs will present a conference Feb. 9 to discuss Veterans Treatment Courts and their positive impact on making communities safer and helping veterans reintegrate into society.
“Veterans Treatment Courts: No Veteran Left Behind” will be a daylong conference in the Charger Union Theater on the UAH campus. The conference will explore the structure and work that Veterans Treatment Courts provide to participating veterans, and the tools needed to ensure success for those veterans. The conference also will examine the behavioral health of veterans, who after long deployments or recovery from serious injuries have problems readjusting to civilian life.
“The VTC is something every judicial circuit should have,” Town said. “It gives our veterans not just a holistic system to get their honor back, but vests them with the truth that they never lost it in the first place.”
The conference will include morning and afternoon keynote addresses, followed by panel discussions. Buffalo, N.Y., Judge Robert Russell, who is credited with starting the first Veterans Treatment Court in the nation, will provide the morning keynote address.
Judge Russell began presiding over the Veterans Treatment Court in Buffalo in January 2008. Before that, he created Buffalo’s Drug Treatment Court in December 1995, and continues to serve as its presiding judge. In December 2002, Judge Russell established and began presiding over Buffalo’s Mental Health Treatment Court. Judge Russell is the past chairman of the National Association of Drug Court Professionals Board of Directors and the past president of the New York State Association of Drug Treatment Court Professionals. He also serves on the National Advisory Board of the Judges’ Criminal Justice/Mental Health Leadership Initiative.
Dr. Eric Seemann, a counseling psychologist, U.S. Navy veteran and a member of the Alabama Army National Guard, will present the afternoon keynote address. Seemann is the Veterans’ Services Coordinator for UAH. His research and teaching interests include post-traumatic stress and recovery, chronic pain and resilience, psychometrics, personality, social support and coping. Seemann’s areas of specialization as a licensed psychologist include forensic psychology, assessment, military psychology, crisis intervention, risk assessment, pain psychology, and dangerous populations.
Lt. Gen. Jim Pillsbury will also be a guest speaker during the afternoon. Pillsbury has 38 years of military experience and retired as commander of Redstone Arsenal and the Aviation and Missile Command. Pillsbury was commissioned as a second lieutenant in 1973, after graduating college, and became an infantry officer. He would go on to become a pilot, holding several positions in the Army. He retired in 2011.
Panels during the conference will address topics including the role of judges in Veterans Treatment Courts and the role mentors play in ensuring the success of court participants. Panelists will include Madison County Circuit Court Judge Ruth Ann Hall, Shelby County Circuit Court Judge Bill Bostick, Cumberland School of Law Professor and former U.S. Magistrate Judge John Carroll, Alabama Department of Veterans Affairs General Counsel Beverly Gebhardt, Madison County Assistant District Attorney Emily Carroll, VA’s Veterans Justice Outreach Coordinator Ahmad Brewer, and Madison County Veterans Treatment Court mentor Ray Zimmerman.
The conference is free and open to the public, but seating is limited. Please click on the following link to register: https://usaoalntraining.org/VeteransTreatmentCourtsConference, or contact [email protected]. Six APOST hours have been approved for law enforcement officers. Continuing Education Units of 5.8 hours of have been approved for attorneys. CEUs for social workers are pending.
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Citizen of Honduras Sentenced to Time Served for Entering the United States after RemovalRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Juan Carlos Martinez-Recarte, 38, a citizen of Honduras, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen, to time served (about four months) in prison for illegally entering and being found in the United States after having been removed. The defendant pleaded guilty on November 14, 2017.
Court documents reveal that on September 20, 2017, a Maine State Police (MSP) trooper stopped a van in Portland being operated in violation of state law and found seven occupants, five of whom appeared to be foreign nationals who could not produce identification documents. Immigration officials were called to the traffic stop and determined that the defendant had no immigration documentation and was in the country illegally. Immigration records showed that the defendant had been removed from the United States on two prior occasions, including, most recently, on November 1, 2013.
The case was investigated by the MSP and the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Chicago Heights Man Sentenced to 276 Months ImprisonmentRead the Press Release
HAMMOND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that on January 23, 2018, Joseph Uvalle, 35, of Chicago Heights, IL, was sentenced to 276 months imprisonment followed by 3 years of supervised release following his conviction by guilty plea to conspiracy to commit racketeering activity (RICO) as a member of the Latin Kings.
According to documents in this case, as part of Uvalle’s plea agreement, he admitted responsibility for the homicide of Raudel Contreras, who was killed in Hammond, Indiana, on August 14, 2014. Uvalle was also sentenced to 120 months imprisonment on each of two counts of transportation for prostitution with the sentence to run concurrent to his 276-month sentence on the racketeering conspiracy conviction. Uvalle has been in custody since his arrest in June 2015.
United States Attorney Thomas L. Kirsch II said, “If you are a gang member committing crimes in Northwest Indiana, we are going to focus our cooperative law enforcement efforts on you and your associates.”
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the FBI Gang Response Investigative Team Task Force and the ATF/HIDTA Task Force. This case was prosecuted by Assistant United States Attorneys’ David Nozick, Abizer Zanzi, and Dean Lanter.
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Cherokee County Man Sentenced to Prison for String of Robberies of Hotels and Businesses Across Three CountiesRead the Press Release
According to filed court documents and court proceedings, between November 20, 2015, and February 10, 2016, McCoy robbed six hotels and businesses in Cherokee, Swain and Jackson counties. According to court records, on November 20, 2015, at approximately 3:40 a.m., McCoy brandished a knife to an employee of the Quality Inn located in Swain County, in Indian Country. McCoy demanded money, and obtained approximately $150 from the desk drawer and $30 from the employee’s wallet. Court records show that McCoy also told the employee, “I’ve hit all these hotels.” Twenty minutes later, on November 20, 2015, at approximately 4:00 a.m., McCoy entered the Baymont Inn, also in Swain County, in Indian Country. McCoy again brandished a knife and demanded money from a hotel employee, who gave McCoy approximately $140 in cash.
On January 26, 2016, at approximately 10:40 p.m., McCoy brandished a knife and demanded money from a clerk at the Fairfield Inn and Suites located in Jackson County, in Indian Country. When the hotel employee attempted to call 911, McCoy grabbed her, threw her in a corner, and cut her hand with the knife causing the employee to sustain injuries. McCoy fled with $225 in cash. Then, on January 30, 2016, at approximately 9:45 p.m., McCoy brandished a knife and demanded money from an employee at Ric’s Smoke Shop in Jackson County, in Indian country. McCoy told the victim to open the cash drawer, and ordered the victim to lay down on the floor. McCoy left the store with $1,724 in cash and a Gatorade drink.
According to court records, on February 9, 2016, at approximately 11:10 a.m., McCoy entered a Dollar General Store in Whitter, N.C., in Jackson County. Court records show that McCoy approached the register with three food items and asked the store clerk about telephone cards. Then, McCoy pulled out a knife and demanded money from the clerk. McCoy fled the store with $442.38 in cash.
A day later, on February 10, 2016, at approximately 3:26 a.m., McCoy and his co-defendant, David James Littlejohn, entered a Microtel Inn located in Bryson City, N.C. A guest of the hotel, identified as “R.E.” was in the lobby. McCoy jumped behind the counter and ordered R.E. to come behind the counter as well. R.E refused. McCoy jumped on the counter, pulled a large fixed knife and went towards R.E., with Littlejohn following behind him. McCoy, holding the knife, asked R.E. multiple times where the woman was that worked the hotel desk. McCoy pointed the knife at R.E. and told R.E. to get on the ground. R.E. laid down on the floor, and McCoy told Littlejohn to get everything from R.E.’s pockets and said if R.E. moved then cut him. Littlejohn took R.E.’s wallet, $45 in cash and other items while McCoy went behind the front desk. A store employee heard the commotion, walked into the lobby and saw R.E. on the floor. Littlejohn grabbed the employee and forced her to the floor, then took from her the key for the cash drawer and gave it to McCoy. McCoy opened the drawer and took $200. After ripping all the phones out of the wall, both McCoy and Littlejohn ran out of the front door.
McCoy previously pleaded guilty to one count of robbery within Indian Country, one count of assault with a dangerous weapon, and two counts of Hobbs Act robbery. Littlejohn was also sentenced today to 70 months in prison, followed by three years of supervised release, and was ordered to pay $1,090 as restitution. Littlejohn pleaded guilty to one count of Hobbs Act robbery.
Both defendants are currently in federal custody and will be transferred into custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanks the Cherokee Indian Police Department, the Bryson City Police Department, and the Jackson County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Chris Hess, of the U.S. Attorney’s Office in Charlotte, and Special Assistant U.S. Attorney Justin Eason of the Office of the Tribal Prosecutor for the Eastern Band of Cherokee Indians prosecuted the case.
Chapin Woman Sentenced for Bank FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Yvonne Sanchez, age 40, of Chapin, was sentenced to fifteen months in jail for committing Bank Fraud, a violation of Title 18, United States Code, § 1344. Senior United States District Judge Cameron McGowan Currie, of Columbia, also ordered her to pay restitution of $121,461.76 to the victim.
From July 2014 through June 2016, Sanchez was the bookkeeper for EveryWord, Inc., a court reporting business in the Columbia area. Sanchez opened fake accounts in the name of EveryWord at All South Federal Credit Union. As part of her duties, Sanchez was supposed to be depositing checks made payable to EveryWord into the legitimate business account at First Community. Instead, she diverted the checks into her own accounts for her personal use. Overall, Sanchez defrauded EveryWord of $121,461.76.
The United States Department of Homeland Security investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
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Central Falls Man Sentenced in Stolen Identity, Fraud SchemeRead the Press Release
PROVIDENCE – A Central Falls man who participated in a scheme to use the stolen identity of numerous individuals to open retail store credit cards and lines of credits, which he used to purchase tens of thousands of dollars worth of goods in Rhode Island and Massachusetts, was sentenced today to 48 months in federal prison.
Reynaldo Martinez, 25, pleaded guilty in November 2017 as charged in a superseding indictment returned on August 15, 2017, charging him with four counts of aggravated identity theft, two counts of access fraud, and one count each of bank fraud, conspiracy to commit fraud, attempted access fraud, and interstate transportation of stolen goods.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Martinez to serve 3 years supervised release upon completion of his term of incarceration and to pay restitution totaling $38,126.62 to businesses he defrauded.
The government and the defense recommended to the court a sentence of 48 months incarceration as stipulated in a plea agreement filed with the Court. The U.S. Sentencing Guideline imprisonment range in this matter is 57-71 months.
Martinez’s sentence is announced by United States Attorney Stephen G. Dambruch and Brian Deck, Resident Agent in Charge of the United States Secret Service.
At the time of his guilty plea, admitted to the Court that beginning as early as March 15, 2017, he used various sources, including internet websites, to obtain personal identification information of individuals, including their Social Security Numbers, dates of birth and addresses, after which he would have false, counterfeit government identifications, manufactured bearing his photograph. Martinez admitted that he used the counterfeit identifications to secure credit to make purchases at various businesses including Sprint Cell Phone locations, Kohl's Department Store, Sak' s Fifth Avenue, Best Buy, Cardi' s Furniture, Raymour and Flanigan Furniture, and Home Depot. Martinez admitted that he used the stolen credit to make between $40,000 and $90,000 dollars in purchases, for which he had no intention of paying.
Martinez has been detained in federal custody since his arrest on May 24, 2017.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland.
United States Attorney Stephen G. Dambruch acknowledges and thanks the Middletown, Warwick, Richmond and Central Falls, R.I., Police Departments; Rhode Island State Police; Mansfield and Seekonk, Mass, Police Departments; West Hartford and Hamden, Conn., Police Departments; and the Richardson, Texas, Police Department for their assistance in gathering and providing information to the United States Attorney’s Office in Rhode Island and the United States Secret Service New England Electronic Crimes Task Force during the course of the investigation.
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Canandaigua Man Arrested on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Rochester, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Eric P. Laube, 45, of Canandaigua, NY, was arrested and charged by criminal complaint with receipt, distribution, and possession of child pornography. The charges carry a minimum sentenced of five years in prison, a maximum of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, in August, 2017, an undercover FBI Task Force Officer connected to a certain Peer-To-Peer network, and discovered that a device belonging to the defendant was being used to distribute video and picture files containing child pornography. The images and video depicted naked, prepubescent females.
In December, 2017, a federal search warrant was executed at Laube’s State Route 64 residence. Officers seized several digital devices, including two portable hard drives, a thumb drive, a laptop, and a desktop computer. A subsequent review determined that the devices contained approximately 1,130 images of child pornography and approximately 10 videos of child pornography.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jonathan W. Feldman and was released on electronic monitoring.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Rochester Police Department, under the direction of Chief Michael Ciminelli; the Monroe County Sheriff’s Office, under the Direction of Sheriff Todd Baxter; and the Ontario County Sheriff’s Department, under the direction of Sheriff Philip Povero.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
Canadian Man Sentenced for Internet CrimeRead the Press Release
United States Attorney Ron Parsons announced that a man from Calgary, who was convicted of Attempted Trafficking in Involuntary Servitude and Forced Labor, was sentenced on January 19, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Alexandros Thymaras, age 35, was sentenced to 30 months of imprisonment, followed by 1 year of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund, a $1,000 fine, and a $5,000 special assessment to victims of trafficking fund.
Thymaras was one of five men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2014 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet. All five men were indicted for Commercial Sex Trafficking.
The conviction stemmed from Thymaras responding to a Craigslist.com advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several messages with a person Thymaras believed to be associated with a 15 year-old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place theywould meet, along with the price he would pay, which was $70.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Thymaras was immediately turned over to the custody of the U.S. Marshal's Service.
Business Owner Pleads Guilty to Obstructing a Federal Investigation and Willful Failure to Pay Employees OvertimeRead the Press Release
Acting United States Attorney Corey Amundson announced today the convictions of a local business owner for obstructing a federal investigation and failing to pay his workers overtime wages.
This morning, MICHAEL L. LANGSTON, JR., age 47, of St. Amant, Louisiana, pled guilty before U.S. District Judge Shelly D. Dick to obstructing an investigation by the U.S. Department of Labor, and willful failure to pay employees overtime wages in violation of the Fair Labor Standards Act (“FLSA”). These convictions arose from LANGSTON’S ownership and operation of Langston Construction, LLC (“LC”) and Composite Architectural Design Systems (“CADS”), companies headquartered in Gonzales, Louisiana. Through LC and CADS, LANGSTON employed dozens of workers at construction sites around the country. By failing to pay time and a half for overtime, the defendant withheld approximately $240,388.21 from his employees between August 2013 and August 2016.
During the guilty plea hearing, LANGSTON admitted to a factual summary which detailed his crimes. According to that summary, in January of 2016, the U.S. Department of Labor, Wage and Hour Division (“DOL WHD”), opened a civil investigation to determine whether the defendant was paying his employees proper overtime and minimum pay in compliance with the FLSA. As part of that investigation, DOL WHD investigators requested complete payroll and wage records and met with the defendant. In order to corruptly impede and obstruct that DOL investigation, LANGSTON instructed one of his employees to provide DOL WHD investigators with only partial wage and hour records which, at his direction, had been altered to hide the true number, identities, and wages of employees working for LC. The defendant subsequently provided these false and fraudulent document to DOL investigators during a meeting. Following this meeting, and for the purpose of impeding and corruptly obstructing the same DOL investigation, LANGSTON hid and removed additional LC and CADS records which reflected accurate employee wage and hour information.
LANGSTON also admitted at the hearing that, at least from August of 2013 through August of 2016, at his direction, LC and CADS failed to pay approximately 150 individuals overtime, willfully withholding approximately $240,388 in time-and-a-half wages, in violation of the FLSA. LANGSTON admitted that his actions were done, in part, because he was concerned about the immigration status of many of his employees.
Acting U.S. Attorney Amundson stated, “The aggressive prosecution of those who obstruct federal investigations and companies that evade fair labor practices is a priority of this office. I greatly appreciate the outstanding efforts of our excellent Department of Labor partners in addressing this important case.”
This investigation was conducted by the U.S. Department of Labor, Office of Inspector General, with assistance from the Department of Labor, Wage and Hour Division. The matter is being prosecuted by Assistant United States Attorney Peter J. Smyczek.
Buffalo Man Sentenced in Narcotics ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that William Padovani, 37, of Buffalo, NY, who was convicted of narcotics conspiracy, was sentenced to 60 months in prison by Senior U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that in November 2014, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Buffalo. A search warrant was executed on the package, which contained cocaine and heroin packaged inside coffee grounds. After removing the controlled substances, the Drug Enforcement Administration conducted a controlled delivery of the package. During the delivery, the defendant arrived at the address and placed the package inside of his car. After he began to drive away, Padovani was arrested.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Damone Robertson-Burts, 35, of Buffalo, NY, pleaded guilty to possession with intent to distribute, and distribution of, cocaine, and maintaining a drug-involved premises before Senior U.S. District Judge William M. Skretny. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on August 10, 2017, officers executed a federal search warrant at the defendant’s residence at 57 Roosevelt Avenue, after previously making three controlled buys of cocaine from the defendant. During the execution of the search warrant, officers recovered two packages of powder cocaine, $3,978 in cash, two digital scales with cocaine residue, a sifter with cocaine residue, and assorted ammunition.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt.
Sentencing is scheduled for May 7, 2018 before Judge Skretny.Buffalo Man Indicted on Fentanyl ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Donald Hennings, 32, of Buffalo, NY, with possession with intent to distribute and distribution of 10 grams or more of butyryl fentanyl and furanyl fentanyl, and maintaining a drug-involved premises. The charges carry a minimum penalty of five years in prison and a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the indictment, between September 28, 2016, and November 17, 2016, law enforcement officers made 10 controlled purchases of substances containing butyryl fentanyl and furanyl fentanyl from the defendant using a confidential source (CS). Hennings conducted the transactions inside a Chevy Traverse at various locations in Buffalo, often in parking lots of high-traffic locations like supermarkets or gas stations. The defendant was surveilled before and after several of the purchases coming from or returning to his residence at 325 Southside Parkway in Buffalo.
A search warrant was subsequently executed at the defendant’s residence. Officers recovered quantities of butyryl fentanyl and furanyl fentanyl, and crack cocaine, along with distribution paraphernalia including a grinder, rubber bands, and glassine bags.
The indictment is the result of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.Brooklyn Man Sentenced to 100 Months’ Imprisonment for Gunpoint Robberies of PharmaciesRead the Press Release
Earlier today, in federal court in Brooklyn, Gregory St. Juste was sentenced to 100 months’ imprisonment by United States Chief District Judge Dora L. Irizarry for his role in three gun-point robberies of pharmacies. St. Juste had previously pled guilty on February 16, 2017 to Hobbs Act robbery conspiracy and brandishing a firearm during the conspiracy. On August 4, 2017, co-defendant Wensley Paul was sentenced to nine years’ imprisonment following his March 20, 2017 guilty plea to the same charges. On October 24, 2017 and November 15, 2017, respectively, co-defendants Max Narcisse, Jr. and Jeff Roselien pleaded guilty to the same charges and are awaiting sentencing.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, New York Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Gregory St. Juste and his co-conspirators caused employees and customers to fear for their lives during the armed robberies of the targeted pharmacies,” stated United States Attorney Donoghue. “Besides terrorizing his victims, the defendant stole oxycodone pills to resell on the street, contributing to the deadly opioid epidemic. This Office and our law enforcement partners continue to work tirelessly to hold accountable those who seek to profit from this scourge that has taken such a great toll on the community.”
“St. Juste and his co-conspirators committed brazen acts of violence that endangered many in his community,” stated Special Agent-in-Charge Benedict. “The violence was driven by the desire to profit from peddling death in the form of pills sold to individuals suffering through addiction. Thanks to the efforts of local and federal law enforcement, St. Juste will no longer be in a position to harm his community. I would like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case. I would also like to thank the Special Agents and NYPD Detectives of the ATF Joint Robbery Task Force for their investigative efforts that helped bring St. Juste to justice.”
According to court filings and statements at court proceedings, in August and September 2016, the defendants and their co-conspirators conducted a series of gunpoint robberies of pharmacies in Brooklyn. On August 16, 2016, two co-conspirators entered the Mill Basin Pharmacy on Avenue T. While inside, the perpetrators pulled out a revolver and entered the back of the pharmacy, causing store employees, one of whom was pregnant, to cower in the corner. The robbers made off with over $4,000 in prescription pills and merchandise, and escaped in a car driven by Roselien. On September 8, 2016, St. Juste and a co-conspirator entered This Way Pharmacy on Quentin Road. Inside the store, the robbers brandished a firearm, stole oxycodone pills and cash and again left in a getaway car driven by Roselien. On September 13, 2016, St. Juste and two other co-conspirators entered the Living Word Pharmacy located on Utica Avenue. St. Juste stormed into the back of the pharmacy and brandished a revolver. The robbers made off with oxycodone pills, employees’ cell phones and cash, and left in a getaway car driven by Roselien.
On September 26, 2016, St. Juste, Paul and Naricisse robbed the Mill Park Pharmacy on Avenue U. Upon entering the pharmacy, St. Juste pulled out a firearm and forced a store clerk to go behind a counter, demanding to know where the “oxy” was and threatening to shoot the clerk. Narcisse then went behind the counter to the cash register and placed cigarettes, cash and other items into a backpack, while Paul acted as a lookout. After a few minutes, the three perpetrators left the store and ran into the getaway car, which was driven by Roselien. Shortly after the perpetrators left the scene, NYPD officers recognized Roselien’s car from the prior robberies and pulled it over, arresting all four defendants. Upon searching the car, officers recovered a loaded, stolen .45 caliber pistol, as well as cash and the stolen merchandise.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Keith D. Edelman is in charge of the prosecution.
Defendant Sentenced Today:
GREGORY ST. JUSTE
Age: 21
Brooklyn, New YorkDefendant Previously Sentenced:
WENSLEY PAUL
Age: 25
Brooklyn, New YorkDefendants Awaiting Sentencing:
MAX NARICSSE, JR.
Age: 25
Brooklyn, New YorkJEFF ROSELIEN
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-554 (DLI)
Boone County man pleads guilty to federal opioid crimeRead the Press Release
CHARLESTON, W.Va. – A Boone County man pleaded guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Roger Dane Adkins, 45, of Morrisvale entered his guilty plea to obtaining hydromorphone and fentanyl by subterfuge. U.S. Attorney Stuart commended the Drug Enforcement Administration’s Tactical Diversion Squad and the Charleston Police Department for the investigation.
In 2016 and early 2017, Adkins was employed as a parcel delivery driver whose route included several Kanawha County pharmacies operating within hospitals or other medical service providers. In March 2017, a hospital pharmacist reported that controlled substances had been removed from a number of parcels that had been shipped for disposal. Investigators from DEA and the Charleston Police Department contacted other pharmacies in Charleston to see whether anyone else had experienced a similar loss. They identified several other pharmacies on the same route that had also reported the loss of controlled substances from parcels shipped to the same location for disposal.
On March 22, 2017, investigators coordinated with one of the pharmacies and the disposal location to set up the shipment of a dummy parcel containing a tracking device. Once Adkins took the parcel into his delivery vehicle, investigators approached and found him in the process of opening it. He waived his Miranda rights and admitted that he had been opening similar packages for several months in order to steal drugs. He further admitted that after removing some of the drugs, he would reseal and send the packages along the intended route in order to avoid detection.
Adkins faces up to four years in federal prison when he is sentenced on April 25, 2018.
Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Billings Man Sentenced to 11 Years in Prison for Meth OffenseRead the Press Release
BILLINGS—Billings resident Michael James Chapman was sentenced yesterday to 132 months of imprisonment and four years of supervised release after pleading guilty to possession with intent to distribute methamphetamine. United States District Judge Susan P. Watters presided over Chapman’s sentencing.
In March 2016, drug-task-force agents in Billings received information that Chapman, 47, was involved in the local distribution of methamphetamine. On April 6, 2016, agents located Chapman at a hotel in Billings and began surveilling him. During their surveillance, they observed Chapman conduct a hand-to-hand drug transaction. Officers stopped Chapman’s vehicle a short time later and he agreed to speak with agents about methamphetamine trafficking. His statements led to the seizure of approximately 2.75 pounds of methamphetamine from various locations in and around Billings. Historically, Chapman admitted to obtaining approximately six pounds of methamphetamine from sources in Utah for redistribution in the Billings community.
The case was prosecuted by Assistant U.S. Attorney John Sullivan and investigated by the FBI Transnational Organized Crime Western Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Baytown, Texas Men Sentenced in Covington Cocaine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that JOSE CARPIO, age 32, and LUIS ENRIQUE HERNANDEZ, age 22, both of Baytown, Texas, were sentenced after previously pleading guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine hydrochloride. HERNANDEZ additionally had pleaded guilty to possessing with the intent to distribute 500 grams or more of cocaine hydrochloride.
U.S. District Judge Nannette Jolivette Brown sentenced CARPIO to 46 months imprisonment, and HERNANDEZ to 60 months imprisonment.
On October 27, 2016, CARPIO and HERNANDEZ were two of four defendants charged in a two-count indictment. According to court documents, this investigation resulted in the seizure of 4,971 grams of cocaine hydrochloride, which the defendants had agreed to deliver from Texas to Covington, Louisiana.
Co-defendants include:
JUAN CHAVEZ, who pled guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine hydrochloride and to possession with intent to distribute 500 grams of hydrochloride, for which he was sentenced to 60 months incarceration.
JOACOBO JOSE SANTOS, who pled guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine hydrochloride, for which he awaits sentencing on March 22, 2018.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys Jeff Sandman and James Baehr are in charge of the prosecution.
Avondale Man Sentenced for Drug ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that TIMOTHY JOHNSON, age 35, a resident of Avondale, was sentenced January 23, 2018 after previously pleading guilty to one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and a quantity of heroin.
U.S. District Judge Kurt D. Engelhardt sentenced JOHNSON to a term of imprisonment of 60 months, 4 years of supervised release, and a $100 mandatory special assessment.
According to court documents, a search warrant executed at JOHNSON’s residence in 2013 discovered approximately 150 grams of cocaine, other controlled substances, and paraphernalia associated with the distribution of narcotics. A subsequent investigation in 2015 led to the interception of a package containing heroin intended for JOHNSON’s distribution
U. S. Attorney Evans praised the work of the Federal Bureau of Investigation, United States Postal Inspection Service, and Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys James S. C. Baehr and J. Ryan McLaren were in charge of the prosecution.
Austin Businessman Indicted in Wire Fraud SchemeRead the Press Release
In Austin, 47-year-old Charles McAllister, owner of Bullion Direct, Inc. (BDI), faces federal wire fraud and money laundering charges in connection with a scheme to defraud customers out of millions of dollars announced United States Attorney John F. Bash, Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Acting Special Agent in Charge Andy Tsui; and, Texas State Securities Board Commissioner Travis J. Iles.
A federal grand jury indictment unsealed on Tuesday charges McAllister with two counts of wire fraud and one count of engaging in a monetary transaction with criminally derived property.
The indictment alleges that from January 2009 through July 2015, McAllister perpetrated a scheme that falsely represented that funds obtained from individual customers would be used to purchase precious metals on behalf of the customer and either shipped directly to the customer or stored in BDI’s vault. Instead of buying the precious metals with the customer’s funds, McAllister spent the money on BDI corporate expenses, on other investment activities, and for his own personal use and benefit.
The indictment also seeks a monetary judgment in the case totaling $16,186,212.56. That sum represents the amount of proceeds obtained directly or indirectly from the defendant’s alleged scheme during the time of the indictment.
McAllister, who is currently on bond, has waived formal arraignment and entered a plea of not guilty to the indictment. No further court dates have been scheduled. Upon conviction, he faces up to 20 years in federal prison for each wire fraud count and up to ten years in federal prison for the money laundering charge.
Agents with the FBI, IRS-CI and the Texas State Securities Board conducted this investigation. Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Associate Attorney General Brand Announces End to Use of Civil Enforcement Authority to Enforce Agency Guidance DocumentsRead the Press Release
Today, as a follow-up to a memo issued by Attorney General Jeff Sessions in November, the Office of the Associate Attorney General issued a new policy that prohibits the Department of Justice from using its civil enforcement authority to convert agency guidance documents into binding rules. Under the Department’s new policy, Department civil litigators are prohibited from using guidance documents—or noncompliance with guidance documents—to establish violations of law in affirmative civil enforcement actions.
On November 17, 2017, Attorney General Jeff Sessions issued a memo prohibiting the Department of Justice from issuing guidance documents that have the effect of adopting new regulatory requirements or amending the law binding on persons or entities outside the Executive Branch. The memo prevents the Department of Justice from evading required rulemaking processes by using guidance memos to create de facto regulations. In the past, the Department of Justice and other agencies had blurred the distinction between regulations and guidance documents.
“Although guidance documents can be helpful in educating the public about already existing law, they do not have the binding force or effect of law and should not be used as a substitute for rulemaking,” Associate Attorney General Rachel Brand said. “Consistent with our duty to uphold the rule of law with fair notice and due process, this policy helps restore the appropriate role of guidance documents and avoids rulemaking by enforcement.”NOTE: The new policy can be found here.
Additional Members of Detroit-Based Gang “YNS” Charged with Racketeering, Kidnapping, and Trafficking Crack CocaineRead the Press Release
New charges were filed yesterday in the prosecution of the northwest Detroit street gang Young and Scantless (YNS).
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan; Special Agent in Charge James Dier of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division; and Police Chief James E. Craig of Detroit made the announcement.
The second superseding indictment charges George Eubanks, 30, of Detroit, and James Bowens, 37, of Detroit with taking part in the YNS racketeering enterprise. The charges describe YNS as one of the most dangerous in the city of Detroit, known for its ruthless reputation and violent acts including seeking to intimidate, injure and kill rival drug dealers to eliminate competition; attempting to instill fear in the community in order to discourage cooperation with police and witnesses from reporting YNS-related crime; and posting numerous intimidating photographs and videos to social media.
Five YNS members, including alleged leader Edward Tavorn, 31, of Detroit, were previously charged with a variety of crimes including a murder, robberies that turned into murders, shootings, a home invasion, arson, and narcotics distribution.
The latest indictment also charges Tavorn, Eubanks and Bowens with a narcotics conspiracy in which Eubanks and Bowens agreed to sell drugs in West Virginia on Tavorn’s behalf while Tavorn was incarcerated on pending charges. The indictment alleges that in furtherance of the plot, Eubanks and Bowens possessed firearms; Bowens kidnapped and fired gunshots at a victim to force the victim to rent a vehicle for gang members to use to transport narcotics to West Virginia; and Eubanks and Bowens possessed with intent to distribute approximately 550 grams of cocaine base.
The charges are the result of the Detroit One initiative, a collaborative effort between law enforcement and the community to reduce violent crime in Detroit.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the ATF’s Comprehensive Violence Reduction Partnership Task Force, consisting of representatives of the ATF, Detroit Police Department, Michigan State Police and Michigan Department of Corrections. Assistance has been provided by the West Virginia State Police. The case is being prosecuted by Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Jerome F. Gorgon Jr. of the U.S. Attorney’s Office of the Eastern District of Michigan.
Abbeville man sentenced to 70 years in prison for production, possession of child pornographyRead the Press Release
ALEXANDRIA, La. – United States Attorney Alexander C. Van Hook announced that a former Vermilion Parish middle school teacher was sentenced last week to 70 years in prison for making and possessing child pornography.
James Stacey Harber, 33, of Abbeville, La., previously of Ohio, was sentenced Friday by U.S. District Judge Dee D. Drell on three counts of production of child pornography and one count of possession of child pornography. He was also sentenced to a lifetime of supervised release and is required to register as a sex offender. According to the August 18, 2017 guilty plea, Harber began communicating with a woman in Abbeville while he was living in Ohio in 2010. They began having a sexual relationship online and communicating via online video. The woman later included her three minor children in the online sexual relationship. Harber moved to Abbeville in 2013 and gained employment at the Louisiana Office of Child Services and then as a middle school teacher. He sexually abused the woman’s children after moving to Louisiana in addition to recording sexually explicit images of them. Law enforcement agents searched Harber’s home on April 26, 2016 and found numerous images and videos of child pornography on various electronic media, which included images downloaded from the internet as well as images he recorded himself sexually exploiting the children.
“These types of horrific cases must not be allowed to continue,” said Van Hook. “It is vital that the public and people in the community help to bring these cases to light as happened in this case. This 70-year sentence shows our resolve to prosecute and convict to the fullest extent of the law.”
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security and Abbeville Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
5 Members of Washington Heights Drug Crew Charged with Distribution of Cocaine, Heroin, and FentanylRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent-in-Charge of the New York Division of the Drug Enforcement Administration (“DEA”), James P. O’Neill, Police Commissioner of the City of New York (“NYPD”), and George P. Beach II, the Superintendent of the New York State Police (“NYSP”), announced today the unsealing of an Indictment charging AMIN HERNANDEZ, a/k/a “Face,” MIGUEL GIL, JORALBI LORA, a/k/a “K,” ISMAEL GARCIA, a/k/a “Swiss,” and FRANCISCO TIBULCIOMERINO, a/k/a “Cousin,” with conspiring to distribute crack cocaine, powder cocaine, heroin, fentanyl, and acetyl fentanyl in Washington Heights. HERNANDEZ, LORA, and TIBULCIOMERINO were arrested last night, and will be presented today before United States Magistrate Judge Andrew J. Peck. GIL and GARCIA are already in state custody and will be transferred to federal custody shortly. The case has been assigned to U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, this drug crew was responsible for distributing highly addictive drugs, including fentanyl, an extremely lethal drug 50 to 100 times more potent than morphine. These arrests are part of our continued commitment to stem the opioid epidemic that is plaguing our nation and our City. We thank our partners in the NYPD and DEA for their outstanding work in this investigation.”
DEA Special Agent-In-Charge James J. Hunt said: “As drug overdose rates rise throughout the country, this drug crew allegedly pushed a toxic medley of drugs onto our streets. We will continue to investigate traffickers at all levels in an effort to stop the number of overdoses and drug-related fatalities.”
Commissioner James P. O’Neill said: “This group was allegedly involved in the business of bringing potentially deadly drugs to the streets of Washington Heights. But now they have learned that our Drug Enforcement Task Force is in the business of bringing them to the halls of justice.”
As alleged in the Indictment unsealed today[1]:
AMIN HERNANDEZ, a/k/a “Face,” MIGUEL GIL, JORALBI LORA, a/k/a “K,” ISMAEL GARCIA, a/k/a “Swiss,” and FRANCISCO TIBULCIOMERINO, a/k/a “Cousin,” conspired to distribute 280 grams and more of cocaine base, or “crack,” 500 grams and more of powder cocaine, heroin, fentanyl, and acetyl fentanyl. Each defendant faces a mandatory minimum sentence of ten years in prison, and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
* * *
Mr. Berman praised the outstanding work of the DEA, the NYPD, and the State Police. This case was done by NYPD and DEA’s REDRUM group in the New York Drug Enforcement Task Force. The Task Force comprises agents and officers of the DEA, New York City Police Department, and New York State Police.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Rachel Maimin is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment, and the descriptions of the Indictment set forth below, constitute only allegations, and every fact described should be treated as an allegation.
24 January 2018
West Tennessee Dentist Sentenced to Federal Prison for Tax EvasionRead the Press Release
Memphis, TN – A Shelby County, Tennessee, resident was sentenced to 12 months in prison today for evading payment of taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 45, owned the Henry Polk Dental Group D.P.C. and the Smile Spa LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008 and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing, and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
In addition to the term of prison imposed, U.S. District Judge John T. Fowlkes, Jr. ordered Henry to serve three years of supervised release and to pay $653,116.78 in restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney D. Michael Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee, who prosecuted the case.
Virginia Man Convicted of Anti-Gay Hate CrimeRead the Press Release
A federal jury convicted a Virginia man of committing a hate crime for assaulting a co-worker at the Amazon Fulfillment Center in Chester in May 2015.
James William Hill III, 36, of Chester, was found guilty yesterday of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his assault on a co-worker at the Amazon Fulfillment Center on May 22, 2015. Evidence showed that Hill assaulted the co-worker because of the co-worker’s perceived sexual orientation. Hill admitted to an Amazon manager and a Chesterfield County Police Officer that he dislikes people who are gay, and further stated that people who are gay should expect to be assaulted because of their sexual orientation.
Hill faces a maximum penalty of 10 years in prison when sentenced at a later date. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
John M. Gore, Acting Assistant Attorney General for the Civil Rights Division, Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the verdict was accepted by U.S. District Judge John A. Gibney. Assistant U.S. Attorney S. David Schiller, and Trial Attorney Saeed Mody of the Civil Rights Division’s Criminal Section prosecuted the case.
This case was investigated by the FBI with assistance from the Chesterfield County Police Department.
Virginia Man Convicted of Anti-Gay Hate CrimeRead the Press Release
RICHMOND, Va. – A federal jury convicted a Virginia man of committing a hate crime for assaulting a co-worker at the Amazon Fulfillment Center in Chester in May 2015.
James William Hill III, 36, of Chester, was found guilty yesterday of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his assault on a co-worker at the Amazon Fulfillment Center on May 22, 2015. Evidence showed that Hill assaulted the co-worker because of the co-worker’s perceived sexual orientation. Hill admitted to an Amazon manager and a Chesterfield County Police Officer that he dislikes people who are gay, and further stated that people who are gay should expect to be assaulted because of their sexual orientation.
Hill faces a maximum penalty of 10 years in prison when sentenced at a later date. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, John M. Gore, Acting Assistant Attorney General for the Civil Rights Division, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Colonel Jeffrey S. Katz, Chief of Chesterfield County Police Department, made the announcement after the verdict was accepted by U.S. District Judge John A. Gibney. Assistant U.S. Attorney S. David Schiller, and Trial Attorney Saeed Mody of the Civil Rights Division’s Criminal Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-009.
U.S. Citizen Pleads Guilty to Passport and Citizenship FraudRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Jose Alberto Hernandez (45, Tampa) has pleaded guilty to making a false statement in an application for a U.S. Passport and to making a false statement in connection with an application for U.S. citizenship. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, Hernandez is a Dominican national who illegally entered the United States through the Mexican border on or about January 21, 1999. On February 14, 2001, he married an American citizen living in Tampa. On December 12, 2007, Hernandez appeared at the Tampa U.S. Citizenship and Immigration Services office for an interview in connection with his petition to remove conditions of his residency. Later that month, he went to a U.S. Postal facility in Tampa and applied for a U.S. Passport under the identity of Jose Angel Santos Figueroa. As proof of his citizenship, Hernandez presented a Puerto Rico birth certificate and Florida driver license, all belonging to Jose Angel Santos Figueroa. On January 8, 2008, Hernandez was granted a U.S. Passport under the name Jose Santos Figueroa.
On December 12, 2008, Hernandez submitted an application for U.S. citizenship under his own identity that contained several false statements. On October 28, 2009, he became a naturalized citizen of the United States. As a result of this conviction, he now faces denaturalization and the mandatory revocation of his citizenship.
This case was investigated by the U.S. Department of Homeland Security Investigations and the U.S. Department of State, Diplomatic Security Services. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
U.S. Attorney's Office enters settlement with Rite Aid based on improper sales of meth precursor pseudoephedrineRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced a deal today between the United States Attorney’s Office and Rite Aid Corporation to resolve a criminal investigation in the Southern District of West Virginia regarding Rite Aid’s improper sale of the methamphetamine precursor pseudoephedrine (PSE) between January 2009 and October 2012. Signed by U.S. Attorney Stuart today, the settlement includes Rite Aid’s full acceptance of responsibility for its improper sale of the methamphetamine precursor PSE, it acknowledges Rite Aid’s remedial efforts and ensures future steps to help prevent abuse of pseudoephedrine, and it mandates that Rite Aid pay $4 million dollars, which is approximately 80% of its gross sales of pseudoephedrine in West Virginia during the relevant time period, to provide resources for crime victim compensation and treatment of drug addiction.
“This settlement sends a strong message to businesses that we will not tolerate putting sales over safety. Most significantly, every dollar paid out by Rite Aid is going to stay right here in West Virginia, and not go into the black hole of Washington,” stated U.S. Attorney Stuart. “This funding will provide increased resources for two critical areas – compensating crime victims and drug treatment. Rest assured that my office will keep fighting to ensure that anyone responsible for the drug scourge in our state is held responsible, from the suppliers to the pharmacies to the street dealers poisoning our communities.”
“Regulation of drugs such as pseudoephedrine is critical to improving West Virginia’s substance abuse epidemic,” said Bill J. Crouch, Cabinet Secretary of the West Virginia Department of Health and Human Resources. “This funding will support DHHR’s ongoing efforts to strengthen substance abuse treatment programs and ultimately improve the health and well-being of impacted residents across the state.”
DEA’s Assistant Special Agent in Charge David W. Gourley stated, “Even though the opioid crisis has been in the forefront, we will not neglect any investigations of other dangerous drugs which are readily available in the state of West Virginia. Methamphetamine use is on the rise. This is a reminder to pharmacies out there not to turn a blind eye to their responsibilities under the Controlled Substances Act.”
“We are grateful to the U.S. Attorney’s Office for including the West Virginia Crime Victims Compensation Fund as a recipient of this settlement,” stated Aaron Allred, Legislative Manager, West Virginia Legislature. “These funds will allow us to assist even more West Virginians as they try to rebuild their lives after being innocent victims of crime. These funds will be used to pay medical bills, provide medical devices, pay for burial and funeral services, lost wages, counseling and other economic losses sustained by victims of crime in our state.”
The $4 million dollar payment will stay entirely in West Virginia. Per the settlement, Rite Aid must pay $2.6 million to the West Virginia Crime Victims Compensation Fund. That figure is more than double the total federal grants the Fund receives in an entire year, and is just shy of the total amount of money the Fund paid to crime victims in all of 2016 and 2017 combined. The settlement further requires Rite Aid to pay $1.4 million to the West Virginia Department of Health and Human Resources. As a condition of his agreement to this settlement, U.S. Attorney Stuart required the agreement of DHHR to use this funding for substance abuse treatment to help fight addiction.
U.S. Attorney Stuart praised the investigative efforts that led to this settlement: “I want to strongly commend the DEA, assisted by the FBI, and the tremendous work of our team and the leadership of AUSAs Steve Loew and Greg McVey, who handled this complex case for the U.S. Attorney’s Office. Job well done.”
During the investigation, Rite Aid has taken remedial actions to comply with federal law and to help ensure that PSE is sold only to people who have a legitimate need for it. The agreement requires Rite Aid to continue those remedial steps and to take additional action. For example, in November 2013, Rite Aid removed single ingredient PSE products (the PSE product preferred by manufacturers of methamphetamine) from its stores, and now only sells tamper-resistant, single-ingredient PSE products in West Virginia. Importantly, Rite Aid will now train its employees on how to identify people who may be purchasing PSE to manufacture methamphetamine, and it will further train and instruct its employees to deny such sales. Furthermore, Rite Aid will continue requiring stores in West Virginia to store PSE products out of the view of customers to make it easier and safer for store employees to deny suspicious sales, and Rite Aid will require pharmacists to counsel all customers seeking to purchase PSE.
A fact sheet highlighting the terms of the settlement is attached to this press release.
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Two felons sentenced to federal prison for gun crimesRead the Press Release
BECKLEY, W.Va. – Two felons were sentenced to federal prison today for gun crimes, announced United States Attorney Mike Stuart. Jerry Wayne Phillips, Jr., 40, of Beckley, was sentenced to three years and 10 months in prison after previously pleading guilty to being a felon in possession of a firearm. In a separate prosecution, Cleveland McDowell Meador, IV, 44, of St. Albans, was sentenced to two years in prison after being convicted of being a felon in possession of a firearm following a one-day jury trial.
U.S. Attorney Stuart commended the Beckley Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the investigation of Phillips, and the St. Albans Police Department and the ATF for the investigation of Meador.
Phillips admitted that on June 23, 2016, he possessed six stolen firearms, including a Marlin, Model 30AW, .30/.30 caliber rifle; a Norinco, Model Type 56 SKS, 7.62x39mm rifle; a Mossberg, Model 500, 12 gauge shotgun; a Keystone Sporting Arms, Model Cricket, .22 caliber rifle; a Winchester, Model 190, .22 caliber rifle; and a Rossi (Taurus), Model S411220BS, .410/.22 caliber rifle. Phillips was prohibited from possessing any firearms under federal law because of a 1998 felony drug conviction in Raleigh County Circuit Court and a 2004 misdemeanor conviction for domestic violence.
In a separate prosecution, witnesses for the United States testified that on May 10, 2017, Meador gave permission to officers with the St. Albans Police Department to search his home on Bard Avenue in St. Albans. During the search, an officer discovered a Hi-Point, Model C9, 9mm pistol in an air register vent in the ceiling of Meador’s home. After Meador’s arrest, law enforcement read him his Miranda rights and in a recorded interview, Meador admitted that he put the gun in the air register vent, that he was a convicted felon, and that he knew that he was not supposed to have a gun. Meador was prohibited from possessing any firearm under federal law because of a 2016 felony conviction in Kanawha County Circuit Court for third offense driving while license revoked for driving under the influence.
United States District Judge Irene C. Berger imposed the sentence in the Phillips case. United States District Judge Joseph R. Goodwin presided over the Meador trial and imposed the sentence.
These cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Two Lewisburg defendants sentenced to federal prison for oxymorphone crimesRead the Press Release
BECKLEY, W.Va. – Two Lewisburg defendants were sentenced to federal prison today for drug crimes, announced United States Attorney Mike Stuart. Joshua Adam Smith, 35, was sentenced to eight years in prison after previously pleading guilty to distribution of oxymorphone. Jessica Nicole Honaker, 26, was sentenced to two years in prison after previously pleading guilty to aiding and abetting the distribution of oxymorphone. U.S. Attorney Stuart commended the Greenbrier Valley Drug and Violent Crime Task Force for the investigation.
Smith admitted on November 6, 2016, he distributed oxymorphone to a confidential informant working with law enforcement. Honaker admitted that on November 17, 2016, she distributed oxymorphone to a confidential informant to complete a drug deal that Smith had arranged. Both of the drug deals took place at a residence on Battle Hill Drive in Lewisburg. As part of their plea agreements, Smith and Honaker took responsibility for all of the drug trafficking activity charged in the indictment. Smith and Honaker also admitted that, along with their codefendant Tremaine Dean Pool, Jr., they had distributed, or possessed with the intent to distribute, a total of about 300 oxymorphone pills. Pool has pled guilty to possession with intent to distribute oxymorphone and faces up to 20 years in federal prison when he is sentenced on April 18, 2018.
Assistant United States Attorney John File handled these prosecutions. United States District Judge Irene C. Berger imposed the sentences.
These defendants were prosecuted under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Individuals Plead Guilty to Possession of Electronic Image of CurrencyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brandon Everett Barker, age 36, of Austin, Texas; and Michelle Denise Carson, age 39, of Indianapolis, Indiana, each pled guilty to one count of Possession Of An Electronic Image Of An Obligation Of The United States, in violation of Title 18 United States Code, Sections 474(a) and 2, punishable by not more than 25 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about September 17, 2017, in the Eastern District of Oklahoma, the defendants, Brandon Everett Barker and Michelle Denise Carson, did unlawfully and with intent to defraud, have in in their control, custody, and possession, a digital and electronic image of an obligation or other security of the United States, to wit: a one hundred dollar bill.The charges arose from an investigation by the Atoka Police Department and the United States Secret Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Two Buffalo Men Indicted on Fentanyl ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Jerell Weathersby, 21, and Dontrell Wise, 31, both of Buffalo, NY, with conspiracy to possess with intent to distribute a mixture and substance containing butyryl fentanyl, a Schedule I controlled substance. The charge carries a maximum of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that according to the indictment and a previously filed complaint, on November 09, 2017, at approximately 11:40 p.m., two Buffalo Police officers stopped a rental vehicle in the area of Erb Street after detecting the smell of marijuana as the vehicle passed. Officers also noticed the rental vehicle appeared to have aftermarket window tint in violation of New York State vehicle and traffic law. Dontrell Wise was the driver and Jerell Weathersby was a passenger.
During a pat down of Weathersby, officers found a clear bag of what was believed to be powdered cocaine in his pant pocket. Weathersby stated to officers that it was morphine, which he was taking for a toothache. Forensic testing determined that the substance was actually butyryl fentanyl. Weathersby, who also had two phones and approximately $1,000 in cash, was arrested at the scene.
During a pat down of Wise, officers recovered approximately $6,000 in cash which Wise stated was from working in a restaurant. According to Wise’s Pennsylvania Board of Probation and Parole Agent, the defendant works in a warehouse in Erie, Pennsylvania, and is not allowed into New York State without parole approval. On December 14, 2017, Wise told the Pennsylvania Board of Probation and Parole office that he was not in Buffalo on November 9, 2017, and that someone used his name without his knowledge.
On November 11, 2017, in the area of West Ferry Avenue, Wise and Weathersby were again stopped by the same two officers but in a different rental vehicle. Once again, the officers detected a strong odor of marijuana. Both men were ordered out of the vehicle. The officers observed two large bulges in Wise’s front pant pockets which the defendant responded was approximately $11,000 in cash. Following a pat down, officers confirmed that the bulges were large bundles of cash.
The defendants are being held pending arraignment on January 25, 2018 at 10:00 a.m. before U.S. Magistrate Judge Jeremiah J. McCarthy.
The complaint is the result of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Buffalo Police Department, under the direction of Acting Police Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
Two Argentine Men Sentenced for Passing Counterfeit CurrencyRead the Press Release
Jackson, Miss. – Gonzalo De La Fuente, 23, and Alejandro Boynak, 35, both citizens of Argentina who came to the United States on tourist visas, were sentenced yesterday by U.S. District Judge Henry T. Wingate to serve 17 months in federal prison for possessing and passing counterfeit currency in Meridian, announced U.S. Attorney Mike Hurst and United States Secret Service Special Agent in Charge Michael Williams.
On July 17, 2017, De La Fuente and Boynak were arrested by the Meridian Police Department at the Wal-Mart in Meridian, where they attempted to pass counterfeit $100 bills while making small purchases. Upon their arrest, officers found approximately $100,000 in counterfeit and genuine United States currency in their possession. Both defendants pled guilty to federal charges on October 25, 2017.
Both defendants will be subject to deportation after serving their full prison sentences, and they will be subject to three years of supervised release if they return to the United States.
The case was investigated by the Meridian Police Department and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Dave Fulcher.
Trussville Man Sentenced to 15½ Years in Federal Prison for Child PornographyRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced a Trussville man to more than 15 years in prison for distributing and possessing child pornography, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
U.S. District Judge R. David Proctor sentenced BRIAN WAYNE RAY, 55, to 15 years and eight months in prison. Ray pleaded guilty in October to one count of distributing child pornography between March 9, 2016, and March 15, 2016, using the internet and an email account. He also pleaded guilty to one count of possessing child pornography between Feb. 14, 2016, and July 5, 2016, in Jefferson County.
“Long prison sentences are well-deserved for both defendants in this case,” Town said. “Mr. Ray assumed different personas to troll the internet for child pornography and Ms. Galloway produced and provided pornographic images of a child she should have been protecting. Fortunately, neither one of these individuals will be near children for years to come.”
Judge Proctor last year sentenced Ray’s co-defendant, Jennifer Lynne Galloway, 34, of Shelby County, to 24 years and six months in prison for producing child pornography of an eight-year-old relative in 2015.
After Galloway took the explicit photos of the child, she sent them to a man she knew as Cory Haynes, whom she had met on the internet. Haynes actually was Ray, according to his plea agreement with federal prosecutors. FBI investigators discovered the pornographic images that Galloway produced attached to emails between Ray and a man living in Washington, D.C., according to the plea agreement. The FBI also located other images of child pornography within Ray’s email account.
The FBI investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes prosecuted.
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Three Clerical Workers Charged for Participating in the Operation of a Montgomery “Pill Mill”Read the Press Release
Montgomery, Ala. – This week, Misty Michelle Fannin, 41, of Tallassee, Alabama, Jacqueline Suzanne Brownfield, 33, of Wetumpka, Alabama, and Akash Kumar, 27, of Montgomery, Alabama, were arrested in connection with the ongoing investigation and prosecution of a “pill mill,” announced United States Attorney Louis V. Franklin, Sr.
All of the defendants are alleged to have assisted Dr. Gilberto Sanchez in operating a “pill mill,” out of Family Practice, a medical clinic located at 4143 Atlanta Highway in Montgomery. Dr. Gilberto Sanchez, previously a Montgomery physician, owned Family Practice. In November 2017, Dr. Sanchez pled guilty in federal court to drug distribution, health care fraud, and money laundering charges.
The indictment in this case alleges that Fannin worked as an office administrator for Sanchez and, in that role, helped Sanchez to launder the money generated by the illegal drug distribution. It also states that Brownfield and Kumar worked in the practice’s billing office and used their positions to commit health care fraud by overbilling for services provided by the nurse practitioners.
If convicted, Fannin faces a maximum sentence of 20 years’ imprisonment on the money laundering charges. Brownfield and Kumar face maximum sentences of 10 years’ imprisonment if convicted of health care fraud. All defendants could also be assessed substantial fines and other monetary penalties.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad, the Internal Revenue Service’s Criminal Investigation Division, and the United States Department of Health and Human Services – Office of Inspector General. The Montgomery County, Alabama Sheriff’s Office, the Alabama Board of Medical Examiners, the Montgomery, Alabama Police Department, the Opelika, Alabama Police Department, and the Elmore County Sheriff’s Office assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross and R. Rand Neeley are prosecuting the case.
Texas Man Sentenced for Conspiring to Illegally Export Radiation Hardened Integrated Circuits to Russia and ChinaRead the Press Release
Peter Zuccarelli, 62, of Plano, Texas was sentenced today to 46 months in prison for conspiring to smuggle and illegally export from the U.S. in violation of the International Emergency Economic Powers Act (IEEPA), radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia. Zuccarelli was also sentenced to three years supervised release and a $50,000 fine.
Acting Assistant Attorney General for National Security Dana J. Boente and U.S. Attorney for the Eastern District of Texas Alan R. Jackson made the announcement after Zuccarelli was sentenced by U.S. District Judge Amos Mazzant.
According to the plea agreement, between approximately June 2015 and March 2016, Zuccarelli and his co-conspirators agreed to illegally export RHICs to China and Russia. RHICs have military and space applications, and their export is strictly controlled. In furtherance of the conspiracy, Zuccarelli’s co-conspirator received purchase orders from customers seeking to purchase RHICs for use in China’s and Russia’s space programs. Zuccarelli received these orders from his co-conspirator, as well as payment of approximately $1.5 million to purchase the RHICs for the Chinese and Russian customers. Zuccarelli placed orders with U.S. suppliers, and used the money received from his co-conspirator to pay the U.S. suppliers. In communications with the U.S. suppliers, Zuccarelli certified that his company, American Coating Technologies, was the end user of the RHICs, knowing that this was false. Zuccarelli received the RHICs he ordered from U.S. suppliers, removed them from their original packaging, repackaged them, falsely declared them as “touch screen parts,” and shipped them out of the U.S. without the required licenses. He also attempted to export what he believed to be RHICs. In an attempt to hide the conspiracy from the U.S. government, he created false paperwork and made false statements.
This case was investigated by the Dallas and Denver Offices of the Department of Homeland Security, Homeland Security Investigations; the FBI; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; the Department of Defense, Defense Criminal Investigative Service; and the U.S. Postal Inspection Service. This case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.
Tennessee Dentist Sentenced to Prison for Tax EvasionRead the Press Release
A Shelby County, Tennessee, resident was sentenced to 12 months in prison today for evading payment of taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Michael Dunavant for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 45, owned The Henry Polk Dental Group D.P.C. and The Smile Spa LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008, and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing, and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
In addition to the term of prison imposed, U.S. District Court Judge John T. Fowlkes, Jr. ordered Henry to serve three years of supervised release and to pay $653,116.78 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tennessee Chiropractor Pays More Than $1.45 Million to Resolve False Claims Act AllegationsRead the Press Release
A Lenior City, Tennessee, chiropractor has paid $1.45 million, plus interest, to resolve False Claims Act violations, announced U.S. Attorney General Jeff Sessions and U.S. Attorney Don Cochran of the Middle District of Tennessee. The settlement also calls for a Cookeville, Tennessee, pain clinic nurse practitioner to pay $32,000 and surrender her DEA registration to settle allegations that she violated the Controlled Substances Act.
Matthew Anderson and his management company, PMC LLC, managed four pain clinics in Tennessee, most recently known as; Cookeville Center for Pain Management; Spinal Pain Solutions in Harriman; Preferred Pain Center of Grundy County in Gruetli Laager; and McMinnville Pain Relief Center. All of these clinics are now closed.
“More Americans are dying because of drugs today than ever before—a trend that is being driven by opioids,” said Attorney General Jeff Sessions. “If we’re going to end this unprecedented drug crisis, which is claiming the lives of 64,000 Americans each year, doctors must stop overprescribing opioids and law enforcement must aggressively pursue those medical professionals who act in their own financial interests, at the expense of their patients’ best interests. Today’s settlement is a positive step that will help save lives, as well as protect taxpayers’ money, in Tennessee and across the United States.”
“As evidenced here, we will use all available resources, including civil remedies, to pursue those whose actions continue to fuel the opioid epidemic plaguing our nation,” said U.S. Attorney Cochran. “In this case, a concerned whistleblower brought a civil suit which has ultimately held those responsible for the illicit prescribing of opioids and at the same time cheating the taxpayers by causing federal healthcare programs to pay for such highly addictive drugs. We will continue to give the highest priority to fighting opioid abuse on all fronts.”
The settlement with Anderson and PMC resolves the governments’ claims that from 2011 through 2014, they caused pharmacies to submit requests for Medicare and TennCare payments for pain killers, including opioids, which were dispensed based upon prescriptions written at the Cookeville Center for Pain Management and which had no legitimate medical purpose. The United States also contended that Anderson caused all four clinics to bill Medicare for upcoded claims for office visits that were not reimbursable at the levels sought. In addition, the United States claimed that Anderson and PMC caused the submission of Medicare claims by the Cookeville and Harriman clinics for services provided by two nurse practitioners who were not collaborating with a physician as required by Tennessee law during parts of 2011 and 2012.
Under the settlement agreement, Anderson and PMC paid a total of $1,450,000, plus interest. Of that amount, the United States will receive $1,040,275, and the State of Tennessee will receive $163,225. Anderson and PMC also agreed to be excluded from billing federal health care programs for five years. Three of the clinics will also forfeit $53,840, which the United States seized from the clinics’ bank accounts.
The settlement agreement also calls for Cindy Scott, a nurse practitioner from Nashville, to pay $32,000 and to surrender her DEA registration until October 2021. Scott is prohibited from prescribing medications until her DEA registration is renewed.
“The opioid epidemic has had a crushing effect on patients and families across middle Tennessee,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “Pill mills like these billed medically unnecessary services to Medicare and TennCare and contributed to problems of opioid abuse and addiction.”
The United States and Tennessee initiated this investigation after a former office manager for the Cookeville Center for Pain Management filed a qui tam lawsuit against Anderson, Scott, three pain clinics, and others. The qui tam, or whistleblower, provisions of the False Claims Act allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. The whistleblower will receive $246,500 under the settlement with Anderson and lesser amounts under the settlements with Scott and the three pain clinics.
The case was handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office and investigated by the Department of Health and Human Services - Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Ellen Bowden McIntyre represented the United States, and Assistant Attorney General Philip Bangle represented the State of Tennessee.
The case is docketed as United States ex rel. Norris v. Anderson, No. 3:12-cv-00035 (M.D. Tenn.). The claims in the complaint are allegations only, and there has been no determination of liability.
Tennessee Chiropractor Pays More Than $1.45 Million to Resolve False Claims Act AllegationsRead the Press Release
A Lenior City, Tennessee, chiropractor has paid $1.45 million, plus interest, to resolve False Claims Act violations, announced U.S. Attorney General Jeff Sessions and U.S. Attorney Don Cochran of the Middle District of Tennessee. The settlement also calls for a Cookeville, Tennessee, pain clinic nurse practitioner to pay $32,000 and surrender her DEA registration to settle allegations that she violated the Controlled Substances Act.
Matthew Anderson and his management company, PMC LLC, managed four pain clinics in Tennessee, most recently known as; Cookeville Center for Pain Management; Spinal Pain Solutions in Harriman; Preferred Pain Center of Grundy County in Gruetli Laager; and McMinnville Pain Relief Center. All of these clinics are now closed.
“More Americans are dying because of drugs today than ever before—a trend that is being driven by opioids,” said Attorney General Jeff Sessions. “If we’re going to end this unprecedented drug crisis, which is claiming the lives of 64,000 Americans each year, doctors must stop overprescribing opioids and law enforcement must aggressively pursue those medical professionals who act in their own financial interests, at the expense of their patients’ best interests. Today’s settlement is a positive step that will help save lives, as well as protect taxpayers’ money, in Tennessee and across the United States.”
“As evidenced here, we will use all available resources, including civil remedies, to pursue those whose actions continue to fuel the opioid epidemic plaguing our nation,” said U.S. Attorney Cochran. “In this case, a concerned whistleblower brought a civil suit which has ultimately held those responsible for the illicit prescribing of opioids and at the same time cheating the taxpayers by causing federal healthcare programs to pay for such highly addictive drugs. We will continue to give the highest priority to fighting opioid abuse on all fronts.”
The settlement with Anderson and PMC resolves the governments’ claims that from 2011 through 2014, they caused pharmacies to submit requests for Medicare and TennCare payments for pain killers, including opioids, which were dispensed based upon prescriptions written at the Cookeville Center for Pain Management and which had no legitimate medical purpose. The United States also contended that Anderson caused all four clinics to bill Medicare for upcoded claims for office visits that were not reimbursable at the levels sought. In addition, the United States claimed that Anderson and PMC caused the submission of Medicare claims by the Cookeville and Harriman clinics for services provided by two nurse practitioners who were not collaborating with a physician as required by Tennessee law during parts of 2011 and 2012.
Under the settlement agreement, Anderson and PMC paid a total of $1,450,000, plus interest. Of that amount, the United States will receive $1,040,275, and the State of Tennessee will receive $163,225. Anderson and PMC also agreed to be excluded from billing federal health care programs for five years. Three of the clinics will also forfeit $53,840, which the United States seized from the clinics’ bank accounts.
The settlement agreement also calls for Cindy Scott, a nurse practitioner from Nashville, to pay $32,000 and to surrender her DEA registration until October 2021. Scott is prohibited from prescribing medications until her DEA registration is renewed.
“The opioid epidemic has had a crushing effect on patients and families across middle Tennessee,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “Pill mills like these billed medically unnecessary services to Medicare and TennCare and contributed to problems of opioid abuse and addiction.”
The United States and Tennessee initiated this investigation after a former office manager for the Cookeville Center for Pain Management filed a qui tam lawsuit against Anderson, Scott, three pain clinics, and others. The qui tam, or whistleblower, provisions of the False Claims Act allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. The whistleblower will receive $246,500 under the settlement with Anderson and lesser amounts under the settlements with Scott and the three pain clinics.
The case was handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office and investigated by the Department of Health and Human Services - Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Ellen Bowden McIntyre represented the United States, and Assistant Attorney General Philip Bangle represented the State of Tennessee.
The case is docketed as United States ex rel. Norris v. Anderson, No. 3:12-cv-00035 (M.D. Tenn.). The claims in the complaint are allegations only, and there has been no determination of liability.
Texas Man Sentenced for Conspiring to Illegally Export Radiation Hardened Integrated Circuits to Russia and ChinaRead the Press Release
SHERMAN, Texas - Peter Zuccarelli, 62, of Plano, Texas was sentenced today to 46 months in prison for conspiring to smuggle and illegally export from the U.S. in violation of the International Emergency Economic Powers Act (IEEPA), radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia. Zuccarelli was also sentenced to three years supervised release and a $50,000 fine.
Acting Assistant Attorney General for National Security Dana J. Boente and U.S. Attorney for the Eastern District of Texas Alan R. Jackson made the announcement after Zuccarelli was sentenced by U.S. District Judge Amos Mazzant.
“The United States rightfully restricts, as a national security concern, the exportation of technological equipment that can, if not controlled, be put to improper use,” said U.S. Attorney Alan R. Jackson. “This prosecution confirms the resolve of the Eastern District of Texas, working with its law enforcement partners, to enforce those restrictions for the safety of our citizens.”
According to the plea agreement, between approximately June 2015 and March 2016, Zuccarelli and his co-conspirators agreed to illegally export RHICs to China and Russia. RHICs have military and space applications, and their export is strictly controlled. In furtherance of the conspiracy, Zuccarelli’s co-conspirator received purchase orders from customers seeking to purchase RHICs for use in China’s and Russia’s space programs. Zuccarelli received these orders from his co-conspirator, as well as payment of approximately $1.5 million to purchase the RHICs for the Chinese and Russian customers. Zuccarelli placed orders with U.S. suppliers, and used the money received from his co-conspirator to pay the U.S. suppliers. In communications with the U.S. suppliers, Zuccarelli certified that his company, American Coating Technologies, was the end user of the RHICs, knowing that this was false. Zuccarelli received the RHICs he ordered from U.S. suppliers, removed them from their original packaging, repackaged them, falsely declared them as “touch screen parts,” and shipped them out of the U.S. without the required licenses. He also attempted to export what he believed to be RHICs. In an attempt to hide the conspiracy from the U.S. government, he created false paperwork and made false statements.
This case was investigated by the Dallas and Denver Offices of the Department of Homeland Security, Homeland Security Investigations; the FBI; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; the Department of Defense, Defense Criminal Investigative Service; and the U.S. Postal Inspection Service. This case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.
Superseding Indictment Charges Peoria Man with Distribution of Heroin and Acryl Fentanyl Resulting in DeathRead the Press Release
Peoria, Ill. – A Peoria, Ill., man, Isaiah “Rico” Richardson, is scheduled to appear in federal court on Jan. 30, after a federal grand jury returned a superseding indictment late yesterday that charges him with distribution of heroin and acryl fentanyl that resulted in the death of another person in June 2017. In addition, the indictment charges Richardson, 28, of the 2200 block of Monroe Street, with distribution of heroin, being a felon in possession of a firearm, and possession of heroin with intent to distribute in June 2017.
The superseding indictment alleges that on or about June 10, 2017, Richardson distributed a mixture of heroin and acryl fentanyl, a synthetic opioid and analogue of fentanyl, and that death resulted from its use, specifically, the death of D.W. on or about June 11. In addition, the indictment alleges that Richardson possessed a Ruger .45 caliber handgun on June 29, when he was arrested.
Richardson was previously charged by complaint and was indicted in July on the charge of distribution of heroin. The affidavit filed in support of the criminal complaint alleges that Richardson regularly sold heroin to users and that he sold heroin that resulted in at least one nonfatal drug overdose in June 2017. At the time, according to public records, Richardson had been released on bond on May 5, 2017, for a state charge of unlawful possession of heroin with intent to deliver, which remains pending in Peoria County Circuit Court.
U.S. Magistrate Judge Jonathan E. Hawley has ordered that Richardson remain detained in the custody of the U.S. Marshals Service since his arrest.
The Drug Enforcement Administration and the Pekin Police Department conducted the investigation. Assistant U.S. Attorney Katherine Legge is prosecuting the case.
If convicted, the statutory penalty for distributing heroin and acryl fentanyl that results in the death or serious bodily injury of another person is 20 years to life in prison. If convicted on the other drug charges, the penalty is up to 30 years in prison, and the firearm charge carries a maximum term of 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
St. Thomas Man Arrested on Five Firearm ChargesRead the Press Release
St. Thomas, USVI- Levi Registe, 26, of St. Thomas, was arrested today on an indictment charging him with two federal firearms offenses and three territorial firearms offenses, United States Attorney Gretchen C.F. Shappert announced. Registe made his initial appearance before Magistrate Judge Ruth Miller on the federal charges of possession of a firearm by a convicted felon and possession of ammunition by a convicted felon, and the territorial charges of possession of a firearm by a convicted felon, possession of an unlicensed firearm, and possession of body armor by a person convicted of a crime of violence. He was detained pending a detention hearing on January 25, 2018.
According to the indictment, on December 16, 2017, Registe possessed a SKS rifle, a shotgun, and a bulletproof vest. The indictment further states that Registe was previously convicted in the Superior Court of the Virgin Islands for assault in the first degree, and is not licensed to possess any of the firearms in the Virgin Islands.
Under federal law, possession of a firearm or ammunition by a convicted felon carries a sentence of not more than 10 years and a $250,000 fine. Under territorial law, possession of a firearm by a convicted felon carries a minimum sentence of 20 years and a $50,000 fine; possession of an unlicensed firearm carries a minimum sentence of 10 years and a minimum fine of $10,000, and possession of body armor by a person convicted of a crime of violence carries a maximum sentence of three years.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Drug Enforcement Administration and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.