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19 December 2017
El Salvador man indicted for illegal re-entryRead the Press Release
ELKINS, WEST VIRGINIA – Adonai Wilfredo Parada, of El Salvador, was indicted by a federal grand jury today on an illegal re-entry charge, United States Attorney Bill Powell announced.
Parada, age 39, was indicted on one count of “Reentry of Removed Alien.” Parada is accused of being in the United States illegally after being removed as an alien in 2015. Parada was allegedly found in Ranson, West Virginia on December 7, 2017.
Parada faces up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Department of Homeland Security, Immigration and Customs Enforcement is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Duo Charged with Drug Distribution and Related Crimes in BensalemRead the Press Release
James Williams, 30, of Philadelphia, PA, and Aisha Jones, 28, of Bristol, PA, were charged today by Indictment[1] with one count of distribution of heroin, one count of possession of heroin with intent to distribute, one count of possession of a firearm in furtherance of a drug trafficking crime, and, as to Williams only, one count of possession of a firearm as a convicted felon, announced United States Attorney Louis D. Lappen.
If convicted, Williams faces a maximum possible sentence of life imprisonment, a mandatory minimum five years’ imprisonment consecutive to any other sentence imposed, a mandatory minimum three years of supervised release up to lifetime supervised release, a $2,500,000 fine, and a $400 special assessment. Jones, if convicted, faces a maximum possible sentence of life imprisonment, a mandatory minimum five years’ imprisonment consecutive to any other sentence imposed, a mandatory minimum three years of supervised release up to lifetime supervised release, a $2,250,000 fine, and a $300 special assessment.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and the Bensalem Township Police Department, and is being prosecuted by Assistant United States Attorney Andrew J. Schell.
[1]An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Drug Trafficking Organization Dismantled, Leader Sentenced to 27 Years in Federal PrisonRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that 13 individuals have been sentenced in connection with their involvement in an international heroin distribution conspiracy. During this investigation, investigators seized approximately 6.5 kilograms of heroin, 9 firearms, and approximately $600,000 in drug proceeds.
According to court documents, during the course of the conspiracy, Felix Mejia Lagunas oversaw the importation of at least 30 kilograms of heroin into the United States from Mexico, and the subsequent transportation of the narcotics to Jesus Alberto Bermudez Caraballo in Orlando. Bermudez Caraballo provided a portion of the heroin to Jose Carlos Polanco Vasquez, Raul Vicente Espada Ortiz, and Deyvis Lee Echevarria for redistribution in the Orlando area. Angel Alexis Alicea transported the remaining amount of the heroin from Orlando to the Tampa Bay area where Jose Leonardo Jimenez, Jose Leonardo Jimenez, and Jose Antonio Crespo Negron mixed the narcotics with cutting agents, packaged it for distribution, and then provided the drugs to street level distributors Freddie, Resto, Juan Carlos Lopez, Robert Kelly, and Rachel Augustine Thomas. These street level distributors then sold the heroin in Tampa, St. Petersburg, and elsewhere.
Special Agent in Charge Eric W. Sporre of the FBI’s Tampa Field Office." “By combining federal, state and local resources, a major heroin trafficking ring was dismantled; removing large quantities of a dangerous drug off the streets.”
FDLE Commissioner Rick Swearingen said, “The hard work of our partners at the federal, state and local level helped to bring these violent offenders to justice and get them off our streets. The sentences handed down should send a clear message to traffickers and help to make Florida safer.”
“This is a perfect example of the kind of multi-agency teamwork necessary to dismantle these complex conspiracies and bring criminals to justice,” said Tampa Police Chief Brian Dugan. “Our communities are safer today as a result of the work of this task force."
Name
Age, Residence
Term of Imprisonment
Felix Mejia Lagunas
42, California
27 years
Jose Leonardo Jimenez
29, Tampa
21 years, 10 months
Jose Carlos Polanco Vasquez
29, Orlando
12 years, 7 months
Jesus Alberto Bermudez Caraballo
29, Orlando
11 years, 3 months
Raul Vicente Espada Ortiz
40, Orlando
11 years, 3 months
Freddie Resto
59, Tampa
11 years, 3 months
Deyvis Lee Echevarria
30, Orlando
10 years, 1 month
Angel Alexis Alicea
29, Tampa
10 years, 1 month
Jose Angel Jimenez Villa
27, Tampa
10 years
Jose Antonio Crespo Negron
30, Tampa
10 years
Juan Carlos Lopez
34, Tampa
7 years
Robert Kelly
56, Tampa
4 years, 9 months
Rachel Augustine Thomas
56, St. Petersburg
2 years
These cases were investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this OCDETF operation include the Federal Bureau of Investigation, the Tampa Police Department, the Florida Department of Law Enforcement, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Hillsborough County Sheriff’s Office. They were prosecuted by Assistant United States Attorney Carlton C. Gammons.
Dominican National Charged with Fentanyl Distribution and Social Security FraudRead the Press Release
BOSTON – A Dominican national was arrested yesterday and charged with fentanyl distribution and Social Security fraud.
Domingo Garcia Suero, 53, a Dominican national residing in Haverhill, was charged in a criminal complaint unsealed today with one count of possession with intent to distribute and distribution of a controlled substance, specifically fentanyl, and one count of Social Security fraud. Garcia Suero will appear today before U.S. District Court Magistrate Judge Donald L. Cabell.
The criminal complaint alleges that in the fall of 2017, Garcia Suero sold fentanyl on four occasions. Garcia Suero also allegedly filed an application with the Registry of Motor Vehicles to renew his driver’s license in which he provided a name and a social security account number belonging to an individual in Puerto Rico.
The charge of possession with intent to distribute and distribution of a controlled substance provides for a sentence of no greater than 30 years in prison, at least six years of supervised release and a fine of $2 million. The charge of Social Security fraud provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Garica Suero will also face deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office made the announcement today. The case was also investigated by the DEA Cross Borders Initiative Task Force 4; U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Homeland Security Investigations in Boston; and the Boston Field Office of the U.S. Department of State's Diplomatic Security Service. Valuable assistance was also provided by the Haverhill Police Department, Lowell Housing Authority Police, Lowell Police Department, Massachusetts State Police, and the State Auditor of the Commonwealth of Massachusetts. Assistant U.S. Attorney Maxim Grinberg of Weinreb’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cocaine Distributor Sentenced to 168 Months in Federal PrisonRead the Press Release
DALLAS — Octavius Williams, 32, of Irving, Texas, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 168 months in federal prison, following his guilty plea in November 2015 to one count of conspiracy to possess with intent to distribute a controlled substance, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Williams has been in custody since his arrest in July 2015.
According to the plea agreement factual resume filed in the case, in 2014, Williams worked with associates of the Los Caballeros Templarios Mexican cartel to obtain and distribute multiple kilograms of cocaine throughout Dallas, Atlanta, Louisiana, Seattle, Oklahoma, and New York. Williams would distribute approximately 30 kilograms of cocaine per month, charging $800 to $900 per ounce. He kept between $159,000 to $200,000 cash at his house for multi-kilogram transactions.
Six Firearms, 551 rounds of ammunition, and approximately $103,354.00 were seized and forfeited as a result of Williams’ arrest.
The FBI, Dallas Police Department and Internal Revenue Service Criminal Investigation led the investigation with assistance from the Texas Department of Public Safety; the DFW Department of Public Safety; the U.S. Department of State; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Transportation Security Administration; the U.S. Secret Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and the Fort Worth, McKinney, Mesquite, and Plano Police Departments.
Assistant U.S. Attorneys George Leal and John DeLaGarza were in charge of the prosecution.
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Citation Companies Agree to Pay $2.25 Million to Settle Civil False Claims Act AllegationsRead the Press Release
DENVER – Citation Oil & Gas Corp. and its affiliates, Citation 2002 Investment Limited Partnership and Citation 2004 Investment Limited Partnership (collectively, “Citation”), have agreed to pay $2.25 million to resolve allegations under the False Claims Act that they underpaid royalties owed on natural gas produced from federal lands in Wyoming, the Justice Department announced today. Citation Oil & Gas Corp. is an oil and gas acquisition, development, and exploration company headquartered in Houston, Texas.
“When gas companies reduce the amount of money owed to the government by taking deductions they are not entitled to, American taxpayers don’t get their fair share. This settlement is a message to the entire gas industry that the government is working together to hold them accountable,” said U.S. Attorney Bob Troyer for the District of Colorado.
“The United States allows companies to remove gas from public lands, which belong to all of us, in exchange for the full payment of royalties owed,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “This settlement demonstrates that the government will hold accountable those who seek to take improper advantage of the federal royalty program at the expense of American taxpayers.”
“The obligation to properly pay federal mineral royalties is essential to the responsible development of oil and gas from public lands, and the Department of the Interior (DOI) Office of the Inspector General (OIG) is committed to working with DOJ and the Office of Natural Resources Revenue on behalf of the American public to ensure that companies meet their legal responsibilities,” said Ron Gonzales, Special Agent in Charge of the DOI OIG Energy Investigations Unit.
Congress has authorized federal lands to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced. Lessees must put the gas in marketable condition at no cost to the United States. Each month companies are required to report to DOI the amount of royalty that is due. This settlement resolves claims by the United States under the False Claims Act that Citation knowingly deducted from royalty values fees paid to other companies that included the cost of placing the gas in marketable condition.
The resolution in this matter was the result of a coordinated effort between the United States Attorney’s Office for the District of Colorado, the Civil Division of the Department of Justice, the DOI OIG, and the DOI’s Office of the Solicitor. No lawsuit was filed in this matter and there has been no determination of liability.
Citation Companies Agree to Pay $2.25 Million to Settle Civil False Claims Act AllegationsRead the Press Release
Citation Oil & Gas Corp. and its affiliates, Citation 2002 Investment Limited Partnership and Citation 2004 Investment Limited Partnership (collectively, “Citation”), have agreed to pay $2.25 million to resolve allegations under the False Claims Act that they underpaid royalties owed on natural gas produced from federal lands in Wyoming, the Justice Department announced today. Citation Oil & Gas Corp. is an oil and gas acquisition, development, and exploration company headquartered in Houston, Texas.
“The United States allows companies to remove gas from public lands, which belong to all of us, in exchange for the full payment of royalties owed,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “This settlement demonstrates that the government will hold accountable those who seek to take improper advantage of the federal royalty program at the expense of American taxpayers.”
“When gas companies reduce the amount of money owed to the government by taking deductions they are not entitled to, American taxpayers don’t get their fair share. This settlement is a message to the entire gas industry that the government is working together to hold them accountable,” said Acting U.S. Attorney Bob Troyer for the District of Colorado.
“The obligation to properly pay federal mineral royalties is essential to the responsible development of oil and gas from public lands, and the Department of the Interior (DOI) Office of the Inspector General (OIG) is committed to working with DOJ and the Office of Natural Resources Revenue on behalf of the American public to ensure that companies meet their legal responsibilities,” said Ron Gonzales, Special Agent in Charge of the DOI OIG Energy Investigations Unit.
Congress has authorized federal lands to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced. Lessees must put the gas in marketable condition at no cost to the United States. Each month companies are required to report to DOI the amount of royalty that is due. This settlement resolves claims by the United States under the False Claims Act that Citation knowingly deducted from royalty values fees paid to other companies that included the cost of placing the gas in marketable condition.
The resolution in this matter was the result of a coordinated effort between the United States Attorney’s Office for the District of Colorado, the Civil Division of the Department of Justice, the DOI OIG, and the DOI’s Office of the Solicitor. No lawsuit was filed in this matter and there has been no determination of liability.
Charlotte Man Sentenced for Child Pornography Offense Committed in High PointRead the Press Release
GREENSBORO, N.C. – An individual who pleaded guilty to production of child pornography was sentenced today, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
STEPHEN PAUL AYDELOTTE, 48, of Charlotte, North Carolina, pleaded guilty on September 14, 2017, to one count of production of child pornography. He was sentenced by United States District Judge William L. Osteen, Jr. to 25 years imprisonment followed by lifetime supervised release. AYDELOTTE was previously convicted in Utah of attempted sexual exploitation of a minor and twice failing to register as a sex offender, and in North Carolina of failing to register as a sex offender.
In February 2017, AYDELOTTE alerted authorities that, while living in High Point, North Carolina in 2012, he took photographs of himself sexually exploiting a prepubescent minor. Investigators where then able to recover the photographs from AYDELOTTE’s phone.
AYDELOTTE also admitted to sexually molesting two minor girls in Utah in 1989.
The United States recommended, and AYDELOTTE received, a degree of leniency in his sentence because AYDELOTTE voluntarily disclosed his criminal conduct, which otherwise would have not likely come to light.
This case was investigated by Homeland Security Investigations and Rowan County Sheriff’s Office. Both agencies are members of the North Carolina Internet Crimes Against Children (ICAC) Task Force.
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 online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Candia Man Sentenced to 48 Months in Prison for Heroin TraffickingRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Mark Gagnon, 54, of Candia, New Hampshire, was sentenced to 48 months in federal prison for possessing heroin with intent to distribute.
Gagnon was convicted at a jury trial on August 2, 2017. Testimony during the trial showed that on July 10, 2016, Gagnon and Alfredo Gonzalez traveled from Manchester, New Hampshire to Lawrence, Massachusetts to acquire approximately 500 grams of heroin from a drug trafficking organization led by Alberto Guerrero Marte. Gagnon and Gonzalez met with Marte at a restaurant in Lawrence at approximately 10:00 p.m. on July 10, 2016. Gagnon retrieved a shopping bag containing three cans of tomato sauce from Marte’s vehicle. Gagnon placed the cans in his own vehicle and drove to New Hampshire. During a traffic stop of Gagnon’s vehicle, a drug detection dog alerted officers that the vehicle contained drugs. After obtaining a search warrant on the following day, law enforcement officers searched the vehicle and found that the three cans of tomato sauce contained over 500 grams of heroin.
After serving his prison sentence, Gagnon will be on supervised release for a period of three years.
Alberto Guerrero Marte is serving a 15-year prison sentence. Gonzalez was convicted at trial on November 10, 2017. He is scheduled to be sentenced on February 16, 2018.
“This case is an example of how federal, state, and local law enforcement officers continue to work together to stop the flow of heroin and other drugs into New Hampshire,” said Acting U.S. Attorney Farley. “The investigators in this case prevented a large quantity of heroin from being sold in the Granite State. While we support access to treatment for those who suffer from addiction, individuals like Mr. Gagnon who participate in the distribution of deadly drugs will be prosecuted aggressively.”
“Opioid abuse is at epidemic levels in New Hampshire and across the North East,” said DEA Special Agent in Charge Michael J. Ferguson. “Fentanyl and heroin are causing overdose deaths across the Granite State, and DEA is committed to aggressively pursue and hold accountable anyone who distributes and profits from spreading this misery. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
This matter was investigated by the DEA; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. The case was prosecuted by Assistant U.S. Attorney Donald Feith.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Boston Man Pleads Guilty to Two Bank RobberiesRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to robbing a branch of the RTN Federal Credit Union in Brookline and a branch of the Mansfield Bank in West Bridgewater in November 2016.
Stephen D. Williams, 55, pleaded guilty to two counts of bank robbery. U.S. Senior District Court Judge Mark. L. Wolf scheduled sentencing for March 13, 2018.
On Nov. 15, 2016, two individuals, one later identified as Stephen Williams, and the other later identified as Joseph Morris, entered a branch of the RTN Federal Credit Union in Brookline. Williams approached a teller and demanded cash. The teller handed Williams cash from her drawer and the two exited the bank and fled the area in a dark colored Volkswagen.
On Nov. 22, 2016, an individual, later identified as Williams, entered a branch of the Mansfield Bank in West Bridgewater. Brandishing a black semi-automatic firearm, Williams approached a teller and demanded money. The teller handed Williams cash, and Williams fled the area again in a dark-colored Volkswagen. Bank surveillance cameras recorded images of Williams during the robbery.
On Nov. 23, 2016, law enforcement officers familiar with both Williams and Morris and the dark-colored Volkswagen located and arrested the two men at an apartment complex in Brockton. Morris was charged in state court, and Williams was charged in federal court.
Williams faces a sentence of no greater than 25 years in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; U.S. Marshal John Gibbons of the District of Massachusetts; Norfolk County District Attorney Michael Morrissey; West Bridgewater Police Chief Victor R. Flaherty Jr.; Brookline Police Chief Daniel C. O’Leary; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Boston Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to failing to register as a sex offender.
Rodney Anderson, 46, pleaded guilty to one count of failure to register as a sex offender. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 19, 2018.
Anderson is required to register as a sex offender in Massachusetts based on a North Carolina state court conviction for second degree rape in 1986. According to court documents, shortly following his release from custody in 2014 for his 1986 conviction, Anderson left North Carolina for Massachusetts. When he arrived, he failed to report to authorities, but was tracked to a residence in Boston.
The charge provides for a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and up to a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; U.S. Marshal John Gibbons of the District of Massachusetts; and Boston Police Commissioner William B. Evans made the announcement. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Berkeley County man admits to heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg, West Virginia man has admitted to distributing heroin, United States Attorney Bill Powell announced.
Carl Cedric Booth, age 20, pled guilty to one count of “Possession With the Intent to Distribute Heroin.” Booth admitted to distributing heroin in October 2016 in Berkeley County, West Virginia.
Booth faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Robert W. Trumble presided.
Bastrop man sentenced to 9 years in prison for defrauding USDA over fake farm benefit schemeRead the Press Release
MONROE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Bastrop farmer was sentenced to 108 months in prison for creating shell farms so he could receive more than $5.4 million in subsidy payments to which he was not entitled.
Brad A. McIntyre, 35, of Bastrop, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to commit mail fraud, five counts of mail fraud and four counts of money laundering related to engaging in monetary transactions in property derived from specified unlawful activity. He was also sentenced to three years of supervised release and ordered to pay $4.3 million in restitution to the U.S. Department of Agriculture, Farm Service Agency and Risk Management Agency. The court also ordered him to pay a $1.6 million money judgement of forfeiture. McIntyre was previously found guilty by a federal jury at a trial, which started July 10 and ended July 21, 2017.
Evidence admitted at trial revealed that McIntyre, a fourth generation farmer and the owner of Delta Agriculture and Company, sought to avoid the Farm Service Agency direct program payment limitation of $40,000 per year per farm entity member. From August 2009 until February 2013, McIntyre conspired to create fictitious farm operations. When applying for FSA’s direct program payments, McIntyre listed the names of his relatives and employees as the owners of these entities when in fact he controlled and managed all of these farming entities. The Farm Service Agency’s Supplemental Revenue Assistant (SURE) and Crop Assistance Program (CAP) payments were each limited to $100,000 per person who experienced a qualifying crop loss because of disaster. These fake farms also fraudulently received disaster program payments from FSA.
When the FSA mailed agricultural subsidy checks to the entities, they went to U.S. Post Office boxes in Mer Rouge, La., established and controlled by McIntyre. He unlawfully received more than $5.4 million during the course of the scheme.
“I want to thank the U.S. Attorney’s office, OIG special agents and our investigative partners for their hard work on this investigation,” USDA Office of Inspector General Special Agent-in-Charge Dax Roberson stated. “When the integrity of USDA’s farming programs is violated by criminal conduct, the Office of Inspector General will pursue justice to the fullest extent of the law.”
“Brad McIntyre was sentenced today for his scheme to defraud the U.S. farm subsidy program and for his associated money laundering violations,” Assistant Special Agent in Charge, Ted A. Magee, IRS Criminal Investigation, stated. “He was held accountable for his fraud and the spending of his ill-gotten gains. IRS - Criminal Investigation special agents are experts in following the money, which ultimately demonstrates that monetary gain is often the reason for criminal activity. I am especially proud of the work we do with our federal law enforcement partners and of our financial expertise that is utilized to make sense of complex schemes such as this one and helps put criminals like McIntyre in prison where they belong.”
The USDA-OIG and IRS-Criminal Investigation conducted the investigation. Supervisory Assistant U.S. Attorney Cytheria D. Jernigan and Assistant U.S. Attorney Tiffany E. Fields prosecuted the case.
Attorney General Sessions Delivers Remarks on the Department of Justice's Efforts to Combat Violent Crime in American Cities and NeighborhoodsRead the Press Release
Milwaukee, WI
We are now adding 40 slots across the country, but this is just the beginning of our push to increase the tooth-to-tail ratio at this Department to drive down violent crime. We plan to push out an additional 260 AUSAs in the months to come.
To do that, we are asking Congress to support these efforts, and to invest in you, too.
And as we’ve sadly seen in New York City just in the last two months, these are national security issues as well. So I urge Congress to take these matters seriously, to support our law enforcement in the work that we’ve asked them to do, including our immigration officers, and not to shut down the government to obstruct the President’s agenda to reduce crime and have a lawful system of immigration. We need to keep the government open—and we need to fund these priorities.
Violent crime has been increasing here in Milwaukee, and that is deeply troubling. But thanks to our law enforcement officers, this is not hopeless. We can make America safe again.Remarks as prepared for delivery
Thank you, Greg for that introduction, and thank you for 15 years of service to the Department of Justice.
You’ve got a lot to be proud of. I’ve heard about that big visa fraud case you prosecuted several years ago. That was terrific work.
I’ve visited 31 U.S. Attorney’s offices since January and each time I am immediately buoyed by the dedication of career prosecutors and all that you accomplish on a daily basis. It does my heart good to be out here with the troops on the front line. Thank you for that—you all are incredible emissaries for the rule of law and the Department that I am honored to lead.
On behalf of the President, I want to thank all of our Assistant U.S. Attorneys, the support staff here, and our state and local law enforcement officers. Thank you for all you do, day in and day out.
In particular I want to thank Special Agent in Charge Justin Tolomeo of the FBI, U.S. Marshal Kevin Carr, Milwaukee Police Chief Edward Flynn, and South Milwaukee Police Chief Ann Wellens. And Ann, I want to wish you a blessed retirement. With nearly three decades of service, you have earned it.
To all of our law enforcement officers: the President and I stand with you.
On Friday the President spoke at the FBI National Academy Graduation ceremony. He’s the first President to do so in 46 years. He said, loud and clear, “America’s police have a true friend and loyal champion in the White House…The President of the United States has your back 100 percent.”
President Trump was elected as the law and order President. He was elected to make America safe again and to have the backs of our men and women in blue.
That mission has never been more important.
Thanks to dedicated law enforcement officials like you, crime declined in America for 20 years. It wasn’t easy. It took important legal reforms, the development of new and innovative policing strategies, and decades of hard and dangerous work—but it saved lives and made a difference in countless communities.
But over the last two years, that trend has reversed. The violent crime rate is up by nearly seven percent. Robberies are up. Assaults are up nearly 10 percent. Rape is up by nearly 11 percent. Murder is up by more than 20 percent.
According to the Department of Justice study, nearly a quarter of the increase in homicides is the result of the increase in drug-related homicides. It’s why I keep saying that drug trafficking is an inherently violent business.
Meanwhile, more Americans are dying because of drugs than ever before. Last year, an estimated 64,000 Americans died of drug overdose—one every nine minutes. That’s nearly the population of Janesville.
Millions of Americans are living with the daily struggle of addiction. And for Americans under the age of 50, drug overdoses are now the leading cause of death.
These trends are not a blip or an anomaly. I fear that, if we do not act now and smartly, this nation could see decades of progress reversed.
Sadly, this beautiful city has not been immune to these problems. In Milwaukee, rape is up 21 percent in just two years. Assault is up nine percent. And murders are up an astonishing 57 percent. We cannot accept these trends.
As we all know, these are not just numbers—these are moms, dads, daughters, spouses, friends, and neighbors. These are empty places at Christmas dinner this year and holes in the hearts and souls of victims’ families that will never close.
The victims include Clarence Taper, a 60-year-old father, grandfather, and hardworking employee at a restaurant here in Milwaukee, who was robbed and shot to death in September while making a delivery.
Almost a year ago today, a young man in Milwaukee was beaten to death by three attackers, who forced him to eat cat litter and feces. The assailants filmed themselves taking turns beating and urinating on him before leaving him to die in a snowbank.
And early last year, Tamecca Perry, a 23-year-old mother of two who was nine months pregnant with her third child, was shot to death in her home because of a dispute over loud music. Her young children watched her die, just days before her unborn baby was due.
But let me tell you this: we will not allow the progress made by our women and men in blue over the past two decades to simply slip through our fingers now. Plain and simple: we will not cede a community, a block, or a street corner to violent thugs or poison peddlers.
As soon as I was sworn in as Attorney General, President Trump sent me an executive order to reduce crime in America.
At the Department of Justice, we embrace that goal. And you and I know from experience that it can be achieved.
Over these last 10 months, the Department has taken aggressive action to implement the President’s agenda.
This year alone, we have secured convictions against more than 1,000 gang members. With our Central American partners we have charged 4,000 members of the vicious MS-13. We have secured 200 human trafficking convictions, as well as four convictions for material support of terrorism.
I could go on. There’s a lot more we could talk about.
These are major accomplishments that benefit the American people.
And these are your accomplishments. We could not have done it without you.
Many of our successes have been achieved in this office. Earlier this month, a man was sentenced to 16 years in prison for stealing a 73-year-old woman’s car after threatening her at gunpoint.
Last month, a man was found guilty for distributing heroin that took at least one life. He now faces a mandatory life sentence.
And in September, five siblings were sentenced to prison for robbing several banks and businesses at gunpoint. Thanks to you, they now face a total of 50 years of prison time.
I’m grateful for the hard work of those in this office who prosecuted these cases, especially dedicated Assistant U.S. Attorneys like Maggie Honrath, Laura Kwaterski, Daniel Humble, and Andrew Maier. Great job.
We are right to be proud of these victories. But we still have more work to do.
As we know, 85 percent of law enforcement is state, local, and tribal. To be effective, we must utilize this force multiplier. These are the authorities that have the critical street level intelligence regarding the criminal element.
We are most effective when these experienced state and local investigators are united with the resources and expertise of the 15 percent that are our federal law enforcement. Put simply, this combined task force model is what truly works to reduce violent crime and that is precisely what we have established with our reinvigorated Project Safe Neighborhoods program.
PSN brings together Federal, State, Local, and Tribal collaboration, targeting the violent offenders who commit a disproportionate amount of violent crime.
Led by our 94 U.S. Attorney’s offices, Project Safe Neighborhoods task forces are hitting the streets across America to apprehend and bring violent criminals to justice. I’ve asked Congress for additional funding for these task forces next year because I believe nothing will be more effective.
Under this program, I am asking a great deal of our U.S. Attorneys. I am empowering them—but I’m holding them accountable for results.
To put them in the best position to impact and reduce violent crime, through a re-allocation of resources, we will enlist and deploy 40 additional violent crime prosecutors across the United States—including two right here in this office.
These additional Assistant United States Attorneys can make an immediate impact. I know: as a former AUSA myself, I have seen it firsthand.
A committed AUSA can supervise multiple investigations, who in turn can apprehend and dismantle multiple criminal organizations simultaneously. And that means fewer violent criminals on the streets, which means it’s even easier to concentrate resources on the bad actors who are left. That is how you reduce crime.
I know this is an investment that will pay dividends for years to come and one that will make a discernible impact in communities struggling with violence.
We are in tight budget times. Crime is rising. I am determined to move resources to the most productive areas.
We have a saying around my office that a new federal prosecutor is “the coin of the realm.” That means when we can eliminate less productive or wasteful spending, we ask whether this will allow us to deploy another AUSA to a violence-plagued district.
We are now adding 40 slots across the country, but this is just the beginning of our push to increase the tooth-to-tail ratio at this Department to drive down violent crime. We plan to push out an additional 260 AUSAs in the months to come.
To do that, we are asking Congress to support these efforts, and to invest in you, too.
And as we’ve sadly seen in New York City just in the last two months, these are national security issues as well. So I urge Congress to take these matters seriously, to support our law enforcement in the work that we’ve asked them to do, including our immigration officers, and not to shut down the government to obstruct the President’s agenda to reduce crime and have a lawful system of immigration. We need to keep the government open—and we need to fund these priorities.
Violent crime has been increasing here in Milwaukee, and that is deeply troubling. But thanks to our law enforcement officers, this is not hopeless. We can make America safe again.
I want to personally express my deep appreciation and profound thanks to all the women and men of law enforcement—state and local—and their families, for sacrificing so much and putting your lives on the line every day, so that the rest of us may enjoy the safety and security you provide. We love you and honor your work.
Know this: we have your back and you have our thanks.
Merry Christmas and Happy Holidays.# # #
Atlantic Beach Drug Dealer Pleads Guilty to Failing to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Sunshine Marie McEwen (43, Atlantic Beach) has pleaded guilty to failing to register as a sex offender. She faces up to 10 years in federal prison and a lifetime term of supervised release. A sentencing date has not yet been scheduled.
According to court documents, on August 20, 1998, McEwen was convicted of sexual battery on a minor child in Jacksonville. After her release from state prison in September 2013, she resided in Atlantic Beach. On May 15, 2015, McEwen sold drugs to an individual in Atlantic Beach and later fled to California without updating her sex offender registration. She also failed to register in California as required by the Sex Offender Registration and Notification Act. On November 28, 2015, McEwen was arrested in Palm Springs and extradited to Florida to face her drug charges. On July 6, 2016, she was convicted for selling cocaine within 1,000 feet of a church and was sentenced to 78 months in state prison.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the United States Marshals Service, the Jacksonville Sheriff’s Office, the Atlantic Beach (Florida) Police Department, the Florida Department of Law Enforcement, and the Palm Springs (California) Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ashland Man Sentenced to 15 Years for Distributing Child PornographyRead the Press Release
ASHLAND, Ky. – A Catlettsburg man, Steven Darrell Duncil, 36, has been sentenced to 15 years in prison, to be followed by a 20-year term of supervised release, for knowingly distributing child pornography.
On Monday, United States District Judge David L. Bunning formally sentenced Duncil, who had previous felony convictions for Prohibited Use of Electronic Communications to Procure a Minor (Sex Offense) and Criminal Attempt of Unlawful Transaction with a Minor in the First Degree, from 2007. Duncil must serve 85 percent of his federal prison sentence.
Duncil previously admitted in federal court that, in June of 2016, he knowingly distributed images of child pornography via ChatStep, a web chat service. The investigation was initiated by a CyberTipline report from the National Center for Missing and Exploited Children (NCMEC). The Kentucky State Police Electronic Crimes Branch (ECB), in coordination with the Internet Crimes Against Children (ICAC) Task Force obtained a search warrant for Duncil’s residence after investigating the report.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steven Igyarto, Special Agent in Charge, Department of Homeland Security-Homeland Security Investigations; and Richard Sanders, Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the DHS-HSI and KSP-ECB. The United States was represented by Assistant United States Attorney David Marye.
Ashland Bank Executive Pleads Guilty to Bank FraudRead the Press Release
ASHLAND, Ky. – On Monday, a former bank executive admitted in federal court that he executed a 17-year scheme to defraud Town Square Bank of more than a million dollars.
Martin Ross, 52, pleaded guilty to one count of bank fraud before United States District Court Judge Bunning. Ross admitted he developed and executed a scheme to defraud Town Square Bank, where he used to work. Ross admitted that between May 2000 and July 2017, he used fake names and documentation to obtain fraudulent loans that he would then use to pay his personal debts and expenses. According to the plea agreement, Ross obtained 15 fraudulent loans over the past 10 years, with an outstanding loss of $1,415,082.
Ross was charged by way of information, waiving his right to indictment by a federal grand jury.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Joseph E. Moriarty, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Investigations, Chicago Region, Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office and Todd Kelly, Chief of Police, Ashland Police Department, jointly announced the guilty plea.
The investigation was conducted by the Ashland Police Department, the FDIC, and the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Kate K. Smith.
Ross is scheduled to be sentenced on April 16, 2018. He faces up to 30 years in prison and a maximum fine of $1,000,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Arrests Made in Connection to Des Moines Metro Gun Store BurglariesRead the Press Release
DES MOINES, Iowa - Dcember 19, 2017, David Marken Aikoriegie and Myles Jordan Maricle Pena, both of Des Moines, Iowa, appeared in federal court before United States Magistrate Judge Celeste F. Bremer on charges related to a series of gun store burglaries in the Des Moines area, announced United States Attorney Marc Krickbaum.
David Marken Aikoriegie is charged with three counts of theft of firearms from a federal firearm licensee and one count of unlawful possession, receipt, and sale of a stolen firearm. The Complaint alleges between the dates of November 16, 2017, and December 14, 2017, Aikoriegie burglarized and stole firearms from JLM Gun Shoppe in Urbandale and Rangemasters in Clive. It is also alleged Aikoriegie sold some of the stolen firearms.
Myles Jordan Maricle Pena appeared on the charge of unlawful drug user in possession of a firearm. The Complaint Affidavit alleges on or about December 14, 2017, Pena sold a stolen firearm to another individual. The firearm was stolen from one of the burglaries alleged to have been committed by Aikoriegie. The complaint further alleges, during the execution of a search warrant at his home, Pena was found in possession of a firearm and marijuana.
The public is reminded the charges are an accusation, and individuals are presumed innocent unless and until proven guilty.
This investigation is being conducted by the Clive Police Department; United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Des Moines Police Department; and Iowa Division of Narcotics Enforcement. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Law enforcement request the public’s assistance in supplying any information as to the location of firearms stolen from JLM Gun Shoppe and Rangemasters. You can contact the Clive Police or the ATF.
Clive Police, during business hours 515-278-1312
Clive Police, 24/7 through Westcom 515-222-3312
ATF Tip Line 24/7 1-800-ATF-GUNS (1-800-283-4867)
ATF Online 24/7 https://www.atf.gov/contact/atf-tips
-END-
Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected] (link sends the e-mail).
Armed Felon in Possession of Heroin and Other Drugs Sentenced to 137 Months in Federal PrisonRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Billy Lee Stevens, age 48, of Spokane, Washington, was sentenced for possessing heroin with the intent to distribute it and for possessing firearms in furtherance of a drug trafficking offense. United States District Judge Stanley A. Bastian, who noted Stevens’ extensive criminal history, sentenced him to a 137-month term of imprisonment and a four-year term of court supervision following release from Federal prison.
According to information disclosed during court proceedings, law enforcement officers with the Pacific Northwest Violent Offender Task Force (PNWVOTF) observed Stevens driving a pickup truck in the 1500 block of East Sharp Avenue in Spokane, Washington. The officers initiated a traffic stop of the truck because Stevens had an active felony warrant for his arrest – he has over 25 felony previous convictions. After the officers made contact with Stevens they sought judicial authorization by way of a warrant to search the vehicle. A judge issued the search warrant and the officers discovered over 228 grams of black tar heroin, along with cocaine and methamphetamine inside the truck. The officers also discovered a pistol-grip Remington shotgun and Derringer pistol next to the drugs. In the center console of the truck, officers located a Smith & Wesson 9mm pistol. They discovered a Walther PK380 pistol and a fully automatic Special Weapon MP5 machine gun in the bed of the truck.
Joseph H. Harrington said, “Prosecuting firearms-related crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington. Previously convicted felons should be aware that there are serious criminal penalties for possessing any firearm, but particularly a fully automatic firearm. This Office is committed to prosecuting aggressively firearm-related cases and violent crime occurring in this District.”
This case was investigated by the Spokane County Sheriff’s Office, the Spokane Police Department Patrol Anti-Crime Team (PACT), the PNWVOTF, and the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Armed Drug Trafficker Sentenced to 15-Year Federal Prison TermRead the Press Release
Acting United States Attorney Corey R. Amundson announced that yesterday Chief U.S. District Judge Brian A. Jackson sentenced QUINTON HALL, age 33, of Baton Rouge, Louisiana, to serve fifteen (15) years in federal prison based on the defendant’s convictions for trafficking methamphetamine in Ascension and Livingston Parishes and possessing a firearm in furtherance of such trafficking.
A federal jury unanimously convicted HALL following a three-day trial in July 2017. At trial, the evidence established that HALL obtained kilogram and multi-ounce quantities of methamphetamine from suppliers in Texas and California through the mail and other means. HALL and others would then distribute the methamphetamine to customers in Livingston and Ascension Parishes. HALL used a hidden compartment behind the stereo of his vehicle to conceal a Smith & Wesson 9mm pistol that he used to further his drug trafficking business.
Acting U.S. Attorney Corey Amundson stated, “Armed drug traffickers contribute significantly to the threat of violence in our communities and must not be tolerated. The defendant’s fifteen-year sentence – which was mandatory under federal law – reflects our dedication to pursuing those who endanger our community with all the tools at our disposal. We do not seek to fill the prisons, but to deter others inclined to follow the same path and to spare the honest and descent members of our communities from further harm. I commend the agents and prosecutors whose dedicated work brought this defendant to justice.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the United States Drug Enforcement Administration, the United States Postal Inspection Service, the Livingston Parish Sheriff’s Office, and the Ascension Parish Sheriff’s Office. The investigation received valuable assistance from the Louisiana State Police. This matter was prosecuted by Assistant United States Attorneys J. Brady Casey and Ryan Crosswell.
Anchorage Man Charged with Stealing Cell Phones from U.S. Mail and Being a Felon in Possession of FirearmRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man has been indicted by a federal grand jury for obstructing U.S. mail parcels and stealing cell phones from the packages, as well as being a felon in possession of a firearm.
The indictment returned by the grand jury alleges that Jermaine N. Sails, 41, of Anchorage, took numerous parcels containing cell phones from the U.S. mail beginning in October 2016, and continuing until Aug. 30, 2017. Approximately 400 cell phones with an approximate value of $50,000 were reported as missing from the U.S. mail during this timeframe. Sails was employed by a private contractor which handled U.S. mail parcels – including those containing cell phones which were being mailed back to service providers for return or repairs.
On Aug. 30, 2017, Sails was confronted by special agents with the United States Postal Service, Office of Inspector General, concerning the missing cell phones. Sails, who had been convicted of a felony assault charge in Alaska state court in 2004, was found in possession of a 9mm semi-automatic handgun at that time.
According to Assistant U.S. Attorney Joseph Bottini, if convicted of the mail obstruction charge, Sails faces a prison sentence of up to 5 years. If convicted of the felon in possession of a firearm charge, Sails faces a sentence of up to 10 years in prison.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Alleged Sinaloa Cartel Associate ExtraditedRead the Press Release
Assistant U. S. Attorney Daniel Zipp (619) 546-8463
NEWS RELEASE SUMMARY – December 19, 2017
SAN DIEGO – Victor Manuel Felix-Felix, the alleged leader of a Mexican money laundering and cocaine trafficking organization, was extradited to the United States by Mexico yesterday and made his first appearance in federal court this afternoon. Felix-Felix was a close associate of Joaquin “Chapo” Guzman-Loera and Felix Felix’s daughter is reportedly married to Guzman-Loera’s son.
According to extradition documents, in 2009, Drug Enforcement Administration (DEA) agents began investigating a money laundering organization based in Southern California. One agent, acting in an undercover capacity, flew to Panama City, Panama and posed as the leader of a transportation cell capable of moving narcotics and bulk currency using private aircraft. After several additional undercover meetings, the agent gained the trust of the organization and agreed to begin picking up bulk currency for transfer to Mexico. Over the course of 2010 and 2011, the agent arranged for the transfer of millions of dollars in currency, coordinating with local law enforcement to arrange pick-ups in Los Angeles, California; New York, New York; Houston, Texas; Chicago, Illinois; Vancouver, Canada and Montreal, Canada.
After the successful currency pick-ups, the undercover agent began traveling to Central America to meet with higher-level members of Felix-Felix’s organization. In September 2010, at a meeting in the Dominican Republic, the undercover agent offered that he could transport cocaine from Ecuador to Mexico City, extradition documents said. Felix-Felix agreed, and provided the agent with an encrypted phone and a cash down-payment of $3.5 million for his services. A team of DEA agents then traveled to Ecuador and worked with local law enforcement to set up a roadside checkpoint and seize a truck containing 2,500 kilograms of cocaine intended for Felix-Felix.
After the seizure in Ecuador, the undercover agent offered Felix-Felix that he could transport another load of cocaine from Ecuador to Mexico City. After receiving another upfront payment of $1 million in cash, DEA agents coordinated with Ecuadorian and Mexican law enforcement to arrange for an international “controlled delivery” of cocaine using a private jet. Agents picked up cocaine in Ecuador, transported it to Mexico City, and then seized it after it was delivered to members of Felix-Felix’s organization, the extradition documents said. Felix-Felix and 18 others were then arrested.
On May 13, 2011, a federal grand jury in San Diego returned an indictment, charging Felix-Felix with Engaging in a Continuing Criminal Enterprise, Conspiracy to Distribute Cocaine and Conspiracy to Commit Money Laundering. Felix-Felix was flown by the United States Marshals Service from Mexico City to San Diego on December 18, 2017. He is scheduled to be arraigned on Tuesday, December 19, 2017, before U.S. Magistrate Judge Andrew Schopler.
United States Attorney Adam Braverman stated, “Today is a reminder that international drug kingpins who profit by shipping narcotics into our community are not safe from prosecution. We will work with our international partners to bring them to justice wherever they reside.”
U.S. Attorney Braverman also praised the outstanding work of the DEA, National City Police Department, San Diego Police Department, San Diego Sheriff’s Office, Mexican Federal Police, Colombian National Police, Panamanian National Police, and 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.
“DEA will continue to hunt down these violent drug traffickers,” said DEA San Diego Special Agent in Charge William R. Sherman. “Let this be a warning to those who think they can step into the shoes of those who have been arrested-we will come for you too.”
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.
In 2012, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Felix-Felix under the Foreign Narcotics Kingpin Designation Act. The Kingpin Act prohibits U.S. persons from conducting financial or commercial transactions with these individuals and freezes any assets they may have under U.S. jurisdiction.
Felix-Felix’s next court appearance is scheduled for January 16, 2018 before U.S. District Judge Marilyn Huff.
DEFENDANT 11-CR-1926-H
Victor Manuel Felix-Felix
SUMMARY OF CHARGES
- Operating a Continuing Criminal Enterprise (18 U.S.C. 848)
- Conspiracy to Launder Monetary Instruments (18 U.S.C. 1956(h))
- Transportation of Monetary Instruments from the United States to a Place Outside the United States (21 U.S.C. 1956(a))
- Conspiracy to Distribute Cocaine Outside the United States ( 21 U.S.C. 959, 960)
- Distribution of Cocaine Outside the United States (21 U.S.C. 959, 960)
- Conspiracy to import cocaine (21 U.S.C. 952 and 960)
AGENCIES
Drug Enforcement Administration
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of International Affairs
National City Police Department
San Diego Narcotics Task Force
San Diego District Attorney, Bureau of Investigations
Mexican Federal Police
Mexico’s Procuraduria General de la Republic (PGR)
Panamanian National Police
Ecuadorian National Police
Colombian National Police
Vancouver Police Department
Quebec Provisional Police
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Airway Heights, Washington Man Sentenced to Ten Years in Federal Prison for Possession of Child PornographyRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Daniel Lee Dove, age 36, of Airway Heights, Washington, was sentenced after having previously pleaded guilty on November 30, 2016, to Possession of Child Pornography. Senior United States District Judge Wm. Fremming Nielsen sentenced Dove to a nine-year term of imprisonment for possession of child pornography, and a one-year term of imprisonment for violating his supervised release conditions, for a total sentence of imprisonment of ten years, to be followed by a life-year term of court supervision after he is released from Federal prison. In addition, Judge Nielsen ordered Dove to pay $5,000 to the Justice for Victims of Trafficking Act fund. Dove agreed to the forfeiture to the United States of his cell phone that he used to possess and distribute child pornography images. Upon release from prison, Daniel Lee Dove will be required to register as a Sex Offender.
According to information obtained initially from the Federal Bureau of Investigation (FBI) Miami Division, Dove was communicating with an individual in Miami using the messaging application KIK. The KIK communications revealed that Dove was exchanging graphic descriptions of infant and toddler-aged child pornography, as well as discussing sexual contact offenses of similarly-aged children. The FBI in Spokane assisted United States Probation Officers in searching Dove’s residence and cell phone to determine if he was in compliance with his Federal supervised release conditions. A forensic examination of Dove’s cell phone revealed approximately 444 images of child pornography. The images were primarily of children under the age of twelve years of age, however, approximately 10 images were pornographic images of babies, and approximately 15 images were pornographic images of toddler-aged children. In addition, the material located on Dove’s cell phone involved material that portrayed sadistic or masochistic conduct or other depictions of violence.
Joseph H. Harrington stated, “The sentence handed down by the Judge Neilsen provides just punishment and I commend the excellent work of the FBI Special Agents who investigated this case. Prosecuting offenders who possess child pornography is one of the priorities of the United States Attorney’s Office for the Eastern District of Washington. This Office will continue to prosecute aggressively and seek appropriate punishment for child pornography crimes.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This investigation was conducted by the Federal Bureau of Investigations. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
AUSA Doris Pryor selected as United States Magistrate JudgeRead the Press Release
PRESS RELEASE
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF INDIANA
Laura A. Briggs, Clerk
46 East Ohio Street
Indianapolis, IN 46204INDIANAPOLIS, Indiana (November 17, 2017): The Honorable Jane E. Magnus-Stinson, Chief Judge of the United States District Court for the Southern District of Indiana, is pleased to announce the selection of attorney Doris L. Pryor as United States Magistrate Judge. Ms. Pryor’s appointment will be made upon completion of a Federal Bureau of Investigation background check, a process that can take several months. Once appointed, she will fill the vacancy created by the untimely death of Magistrate Judge Denise K. LaRue, who passed away on August 2, 2017.
Ms. Pryor is presently employed as the National Security Chief for the United States Attorney’s Office for the Southern District of Indiana and has served in that role since September 2014. From August 2006 until her appointment as National Security Chief, she served as an Assistant United States Attorney for the Southern District of Indiana. From August 2005 through August 2006, Ms. Pryor served as a Deputy Public Defender in the State of Arkansas Public Defender’s Commission. She also has served two terms as a law clerk, for Judge J. Leon Holmes in the U.S. District Court for the Eastern District of Arkansas (August 2004-August 2005), and for Chief Judge Lavenski Smith of the U.S. Court of Appeals for the Eighth Circuit (August 2003-August 2004).
Chief Judge Stinson said, “The court eagerly anticipates welcoming Ms. Pryor to the bench. She has demonstrated ability to handle complex cases in her varying assignments as an Assistant United States Attorney. She has also demonstrated her commitment to the principle of equal justice under law during her laudable career with the U.S. Attorney’s Office and, before that, as a deputy public defender. My fellow judges and I know that Ms. Pryor will serve the litigants who appear before her in court with the same fairness and equanimity for which she is already renowned.”
The duties of Magistrate Judges in the Southern District of Indiana are demanding and wide-ranging. Ms. Pryor will conduct various pretrial matters and evidentiary proceedings in civil cases on delegation from a district judge, and preside over trial and disposition of civil cases upon consent of the litigants. After a period of recusal, she will also conduct preliminary proceedings in criminal cases, and preside over trial and disposition of misdemeanor cases. Ms. Pryor will primarily serve in the Indianapolis Division of the Southern District and travel to the other divisional offices of the Court to hold proceedings and conduct settlement conferences.
Ms. Pryor was born in Hope, Arkansas, and graduated with a Bachelor of Science degree in 1999 from the University of Central Arkansas, where she majored in political science. She obtained her law degree from the Indiana University Maurer School of Law in 2003 and was admitted to the bar the same year. Ms. Pryor has since been admitted to practice in numerous state and federal courts, including Indiana. Ms. Pryor is active in Indiana’s legal community. She is currently serving as the program chair for the Indianapolis branch of the Federal Bar Association and has previously served as the secretary and newsletter chair of that organization. Ms. Pryor is active in a number of other bar associations and chaired the Indianapolis Bar Association Diversity Job Fair’s Student Workshop in 2016 and 2017. Ms. Pryor was also instrumental in the development and growth of the Southern District of Indiana’s Re-entry And Community Help (REACH) federal re-entry courts, which give formerly incarcerated individuals access to resources, law enforcement officials, community leaders, and other experts to help the returning citizens transition successfully back into the community.
Ms. Pryor also serves her community as a board member of Goodwill Education Initiatives, Inc., and as the Young Adult Ministry Co-Director for the Pilgrim Missionary Baptist Church. She is also passionate about the Just the Beginning Foundation, which is committed to developing and nurturing interest in the law among young persons from various socioeconomic, ethnic, and cultural backgrounds underrepresented in the legal profession.
Ms. Pryor lives in Carmel with her husband and son.
Magistrate Judges are appointed by the Judges of the United States District Courts for terms of eight years, and are eligible for reappointment to successive terms.
36th Street Bang Squad Gang Member Sentenced for Attempted MurderRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to nine years in prison for his role in planning and attempting to murder a rival gang member in Hampton in June 2015.
According to court documents, on June 5, 2015, Shaquone Ford, 22, along with co-defendants Martin Hunt, 20, of Newport News, Jamaree Green, 21, of Hampton, and Corey Sweetenburg, 21, of Hampton, all members of a local gang known as the 36th Street Bang Squad, drove to a Hampton high school looking for a rival gang member suspected of murdering a 36th Street Bang Squad member two days prior, on June 3, 2015. Once at the location, other 36th Street members and associates joined the group. The group followed a Hampton City school bus in two vehicles, waiting for their target to get off at a stop. When the target exited the bus, the defendants and other 36th Street members and associates chased him into an apartment complex. The defendants carried loaded firearms and planned to kill the target if he was found.
On December 7, co-defendant Green pleaded guilty to the conspiracy to murder the rival gang member and to possessing a firearm in furtherance of a crime of violence. Green faces a minimum of 10 years in prison and a maximum of life in prison when he is sentenced on March 2, 2018. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
This case is a product of a two-year ongoing investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Hampton Police Division and the Newport News Police Department, to address violent gang crime on the peninsula. As part of this ongoing focused effort to address violent crime, gang activities and drugs in Hampton, the Hampton Police Division has funded a full-time prosecutor to lead the federal prosecution of these cases.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, Terry L. Sult, Chief of the Hampton Police Division, and Michael C. Grimstead, Acting Chief of the Newport News Police Department, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Special Assistant U.S. Attorney Amy E. Cross and Managing Assistant U.S. Attorney Howard J. Zlotnick 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. 4:17-cr--52.
18 December 2017
Wayne County man sentenced to federal prison for oxycodone convictionRead the Press Release
HUNTINGTON, W.Va. – A Wayne County man who assisted others in distributing oxycodone in the Fort Gay area in 2015 and 2016 was sentenced today to a year and a half in federal prison, announced United States Attorney Carol Casto. Dennis Ransbottom, Jr., 32, previously pleaded guilty to conspiracy to distribute oxycodone.
Between November 2015 and November 2016, Ransbottom participated in the conspiracy with others, including an oxycodone source from Detroit. During the conspiracy, the source frequently transported oxycodone pills from Michigan to Fort Gay to distribute, and would notify Ransbottom upon arrival in West Virginia. Ransbottom agreed to introduce individuals to the source, or otherwise arrange for customers to meet the source to buy pills. On November 29, 2016, Ransbottom was arrested along with another individual while they were meeting outside of the Pit Stop gas station in Fort Gay. Investigators located and seized a total of 382 thirty mg oxycodone tablets during the arrest.
The Drug Enforcement Administration and the Wayne County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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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U.S. Attorney’s Office Settles Disability Discrimination Allegations at Young Shakespeare Players EastRead the Press Release
BOSTON – The U. S. Attorney’s Office reached a settlement agreement today with Young Shakespeare Players East (YSPE) resolving allegations that the theater company violated Title III of the Americans with Disabilities Act (ADA) by failing to provide reasonable modifications to a child enrolled in the program and retaliating against another child for her advocacy.
“Children with disabilities should be able to pursue their interests and participate in a full range of programs and activities,” said Acting United States Attorney William D. Weinreb. “Whenever necessary, reasonable modifications under the ADA must be provided to ensure that all children can take advantage of educational opportunities. Enforcement of the ADA is an important priority of this office, and we applaud children and young adults who advocate for disability rights.”
YSPE is a private, non-profit, theater company for children ages 7-18 that performs full-length works of Shakespeare. The U.S. Attorney’s Office determined that YSPE discriminated against a child with a disability as a result of a peanut allergy, by failing to make reasonable modifications to its policies, practices or procedures to permit the child to safely participate in the theater company’s programs. When a second child advocated on behalf of the child with a disability, that child was excluded from participating at YSPE.
Under the terms of the settlement agreement, YSPE will implement a disability non-discrimination policy; implement a process by which reasonable modifications will be considered and provided to participants with disabilities; and conduct appropriate training.
This matter was handled by Special Assistant U.S. Attorney Gregory Dorchak and Assistant U.S. Attorney Stephen Heymann of Weinreb’s Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two Sentenced to Federal Prison on Drug ChargesRead the Press Release
Jackson, Miss. – Charlie Lee Martin, 54, of Jackson, Mississippi, and Shredewrick Anderson, 42, of Lancaster, California, were sentenced on December 12, 2017, by U.S. District Judge Daniel P. Jordan III, for their roles in a drug conspiracy, announced U.S. Attorney Mike Hurst. Martin was sentenced to 130 months in prison followed by five years of supervised release for possession with intent to distribute 500 grams or more of cocaine. Anderson was sentenced to 90 months in prison followed by five years of supervised release for conspiracy to possess with the intent to distribute 500 grams or more of cocaine.
The defendants were charged after a lengthy investigation into a drug trafficking organization operating in Jackson. In November 2015, Martin and Anderson obtained cocaine hydrochloride from sources of supply in Texas and Jackson, Mississippi, and distributed it to other individuals in Jackson and Gulfport, Mississippi.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol Tobacco Firearms and Explosives, with assistance from the Hinds County Sheriff’s Office, the Ridgeland Police Department, the Jackson Police Department, the U.S. Marshals Service, the Federal Bureau of Investigation, the Mississippi Highway Patrol, the Madison County Sheriff’s Office, the Brandon Police Department, the Rankin County Sheriff’s Office, the Mississippi Department of Corrections, the Pearl Police Department, the Flowood Police Department, Customs and Border Patrol, and the Drug Enforcement Administration - Houston Field Division.
The case was prosecuted by Assistant United States Attorney Jerry L. Rushing.
Two Defendants Plead Guilty to Alien Harboring Scheme Involving Labor Exploitation at Nebraska MotelRead the Press Release
Defendants Vishnubhai Chaudhari, 50, and Leelabahen Chaudhari, 44, of Kimball, Nebraska, pleaded guilty today in federal court in Omaha, Nebraska, to one count of conspiracy and one count of alien harboring for financial gain, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Robert C. Stuart of the District of Nebraska, and Special Agent in Charge Alex Khu of St. Paul ICE Homeland Security Investigations (HSI).
According to documents filed in court, the defendants admitted to conspiring to harbor the victim, an Indian national who lacked immigration status, at a Super 8 Motel in Kimball, Nebraska, between October 2011 and February 2013. During that time, the defendants required the victim to work long hours, seven days a week at the motel, performing manual labor, including cleaning rooms, shoveling snow, and doing laundry. Although the defendants promised to pay the victim, they never did, but rather claimed to apply that amount to a debt the victim owed. The defendants further restricted the victim’s movement, isolated him, and verbally abused him. Defendant Vishnubhai Chaudhari also threatened to find the victim if he ever left the motel, and defendant Leelabahen Chaudhari regularly assaulted the victim, including on one occasion when she slapped his face several times because he had failed to clean a bathtub to her standards. The victim eventually escaped with the help of a motel guest and local law enforcement.
Sentencing is scheduled for March 19, 2018, before the Honorable Laurie Smith Camp. The defendants face a possible sentence of up to 18 months in prison according to their plea agreements, and they are expected to be removed from the United States at the completion of their sentences. The defendants also paid the victim $40,000 in restitution at today’s change of plea hearing as a condition of their guilty pleas.
“Motivated by their greed, the defendants violated the immigration laws and exploited a vulnerable individual who lacked immigration status,” said Acting Assisting Attorney General Gore of the Civil Rights Division. “The Department of Justice will use its resources to proactively prosecute persons who, like the defendants, unlawfully victimize others for their own monetary profit.”
“This case is a reminder that forced labor occurs in the United States, not just overseas, and federal law targets those who profit from human trafficking and related crimes,” said Acting U.S. Attorney Robert C. Stuart of the District of Nebraska. “This case is a testament that such conduct will be vigorously investigated and prosecuted in the District of Nebraska.”
“Human trafficking is the modern world’s version of enslaving another person for profit. That is what these individuals have done to this victim,” said Special Agent in Charge Alex Khu of HSI St. Paul. “I’m proud of the work accomplished by HSI’s special agents, our partners at the U.S. Attorney’s Office for the District of Nebraska, and the Department of Justice, who made these guilty pleas possible.”
The case was investigated by the Department of Homeland Security’s Homeland Security Investigations, and was prosecuted by Trial Attorneys Olimpia Michel and Shan Patel of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit and Assistant U.S. Attorney Frederick D. Franklin of the District of Nebraska.
Two California Residents Indicted for Sex Trafficking of Six VictimsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two Sacramento, Calif., residents have been indicted by a federal grand jury for the sex trafficking of six victims.
Ronald Ean Taylor, 43, and Kimberly Anne Sanford, 33, both of Sacramento, were charged in a 10-count federal indictment returned under seal by a federal grand jury on Tuesday, Dec. 12, 2017. Taylor was arrested in California and Sanford in Nebraska on Friday, Dec. 15, 2017. The indictment was unsealed today.
The federal indictment charges Taylor and Sanford together in six counts of sex trafficking of an adult by force, fraud or coercion. According to the indictment, Taylor and Sanford trafficked six separate victims at various times between Nov. 1, 2014, and May 31, 2017. They allegedly used force, fraud or coercion to cause (or attempt to cause) the six victims to engage in prostitution, from which Taylor and Sanford benefitted financially.
Taylor and Sanford are also charged together in four counts of transporting (or attempting to transport) an individual across state lines for prostitution. According to the indictment, Taylor and Sanford transported, or attempted to transport, four of the sex trafficking victims across state lines for prostitution.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Los Angeles, Calif., Police Department and the Sacramento, Calif., Police Department in conjunction with the Human Trafficking Rescue Project.
Three Major New York Diagnostic Testing Facility Owners Charged for Their Roles in Alleged Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
A 14-count indictment was unsealed today in federal court in the Eastern District of New York charging three owners of independent diagnostic testing facilities in Brooklyn for their roles in an allegedly fraudulent scheme that involved submitting over $44 million in claims to Medicare and private insurers, which included government-sponsored managed care organizations. Defendant Iskanderova is expected to make an initial appearance this afternoon before U.S. Magistrate Judge Edwin G. Torres of the Southern District of Florida at the federal courthouse in Miami. The case has been assigned to U.S. District Judge Margo K. Brodie.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), James D. Robnett, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York Region, announced the indictment.
Tea Kaganovich and Ramazi Mitaishvili were the co-owners of Sophisticated Imaging, East Coast Diagnostics, East Shore Diagnostics, East West Management and RM Global. Syora Iskanderova, also known as “Samira Sanders,” was the owner of Global Testing, Liberty Mobile Imaging, Liberty Mobile Testing, Med Tech Services and Scanwell Diagnostics. The three defendants were each charged with one count of health care fraud, two counts of making false claims to a federal agency, one count of conspiracy to pay health care kickbacks, two counts of paying health care kickbacks and four counts of money laundering. Kaganovich and Mitaishvili were also charged with one count of conspiracy to defraud the United States by obstructing the lawful functions of the IRS. Iskanderova was also charged with two counts of making false statements to federal agents.
According to the indictment, beginning in approximately January 2014 and continuing through at least December 2016, Kaganovich, Mitaishvili and Iskanderova executed a scheme in which they submitted fraudulent claims to Medicare, Medicaid managed care plans and other health care benefit programs for diagnostic testing services. As part of the scheme, the defendants allegedly paid kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. The indictment also alleges that the beneficiaries themselves received kickbacks as part of the scheme. The defendants allegedly submitted and caused to be submitted claims to Medicare, Medicaid managed care plans and other health care benefit programs for services that misrepresented which diagnostic testing company purportedly performed the services. The indictment further alleges that the defendants disguised their illicit payments by moving the proceeds of this illegal activity through shell companies and engaged in financial transactions greater than $10,000 involving the proceeds of unlawful activity. Kaganovich and Mitaishvili are alleged to have falsely reported to the IRS that the illegal payments made to co-conspirators were legitimate business expenses, which caused relevant tax forms to falsely under-report business income and claim deductions. In addition, the indictment alleges that Iskanderova, on two separate occasions, lied to federal agents about her role in the alleged fraud scheme.
As alleged in the indictment, the defendants submitted and caused to be submitted at least $44 million in claims to Medicare, Medicaid managed care plans and other health care benefit programs for diagnostic testing services and were paid at least $19 million on those claims.
The charges in the indictment are merely allegations, and all defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS-CI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys Debra Jaroslawicz and Richard Powers of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Defendants:
TEA KAGANOVICH
Age: 45
Residence: Brooklyn, New York
RAMAZI MITAISHVILI
Age: 57
Residence: Brooklyn, New York
SYORA ISKANDEROVA (also known as “Samira Sanders”)
Age: 42
Residence: Brooklyn, New York
E.D.N.Y. Docket No. 17-CR-649 (MKB)
Three Major New York Diagnostic Testing Facility Owners Charged for Their Roles in Alleged Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
Three owners of independent diagnostic testing facilities in Brooklyn, New York, were charged in an indictment unsealed today for their roles in an allegedly fraudulent scheme that involved submitting over $44 million in claims to Medicare and private insurers, which included government-sponsored managed care organizations.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office, Special Agent in Charge James D. Robnett of the Internal Revenue Service-Criminal Investigation (IRS-CI) New York Office and Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations made the announcement.
Tea Kaganovich, 45, and Ramazi Mitaishvili, 57, both of Brooklyn, were the co-owners of Sophisticated Imaging, East Coast Diagnostics, East Shore Diagnostics, East West Management and RM Global. Syora Iskanderova aka Samira Sanders, 42, also of Brooklyn, was the owner of Global Testing, Liberty Mobile Imaging, Liberty Mobile Testing, Med Tech Services and Scanwell Diagnostics. The three defendants were each charged with one count of health care fraud, two counts of making false claims to a federal agency, one count of conspiracy to pay health care kickbacks, two counts of paying health care kickbacks and four counts of money laundering. Kaganovich and Mitaishvili were also charged with one count of conspiracy to defraud the United States by obstructing the lawful functions of the IRS. Iskanderova was also charged with two counts of making false statements to federal agents. The indictment was filed on Nov. 22 and unsealed upon the arrest of the defendants this morning. Defendants Kaganovich and Mitaishvili are expected to make an initial appearance this afternoon before U.S. Magistrate Judge Steven M. Gold of the Eastern District of New York at the federal courthouse in Brooklyn. Defendant Iskanderova is expected to make an initial appearance this afternoon before U.S. Magistrate Judge Edwin G. Torres of the Southern District of Florida at the federal courthouse in Miami. The case has been assigned to U.S. District Judge Margo K. Brodie.
According to the indictment, beginning in approximately January 2014 and continuing through at least December 2016, Kaganovich, Mitaishvili and Iskanderova executed a scheme in which they submitted fraudulent claims to Medicare, Medicaid managed care plans and other health care benefit programs for diagnostic testing services. As part of the scheme, the defendants allegedly paid kickbacks for the referral of beneficiaries who submitted themselves to diagnostic testing and other purported medical services. The indictment also alleges that the beneficiaries themselves received kickbacks as part of the scheme. The defendants allegedly submitted and caused to be submitted claims to Medicare, Medicaid managed care plans and other health care benefit programs for services that misrepresented which diagnostic testing company purportedly performed the services. The indictment further alleges that the defendants disguised their illicit payments by moving the proceeds of this illegal activity through shell companies and engaged in financial transactions greater than $10,000 involving the proceeds of unlawful activity. Kaganovich and Mitaishviliare are alleged to have falsely reported to the IRS that the illegal payments made to co-conspirators were legitimate business expenses, which caused relevant tax forms to falsely under-report business income and claim deductions. In addition, the indictment alleges that Iskanderova, on two separate occasions, lied to federal agents about her role in the alleged fraud scheme.
As alleged in the indictment, the defendants submitted and caused to be submitted at least $44 million in claims to Medicare, Medicaid managed care plans and other health care benefit programs for diagnostic testing services and were paid at least $19 million on those claims.
The charges in the indictment are merely allegations, and all defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS-CI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys Debra Jaroslawicz and Richard Powers of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Three Armed Bank Robberies Lead to Multiple Federal Indictments and ConvictionsRead the Press Release
Savannah, GA – Javel Roberts, 17, of Valdosta, Georgia, entered a guilty plea Thursday, December 14, 2017, before Senior U.S. District Court Judge William T. Moore, Jr., for the armed robbery of the SunTrust Bank in Garden City, Georgia, on September 7, 2017, and for brandishing a firearm during the bank robbery. In addition to the SunTrust Bank robbery, Roberts was charged with the armed robberies of the Wells Fargo Bank at 10422 Abercorn Street in Savannah on July 25 and August 8, 2017. Although a juvenile under federal law, the U.S. Attorney’s Office prosecuted Roberts as an adult. He faces up to life imprisonment.
Roberts’ guilty plea follows the guilty pleas of India Janette Henderson, 31, and Ira King, 39, of Savannah, both of whom pled guilty before Judge Moore on November 28, 2017, to aiding and abetting the SunTrust armed robbery, and both of whom face up to twenty-five years in prison. Jamal Henderson, 30, of Savannah, previously pled guilty to being a convicted felon in possession of a handgun and faces up to ten years in prison.
Oraefein Jabre King, 20, of Savannah, Georgia, was arrested in Birmingham, Alabama on December 12, 2017. King was charged in an eight-count indictment by a federal grand jury in Savannah with conspiring to rob the Wells Fargo Bank and SunTrust Bank, aiding and abetting the armed bank robberies committed on July 25, August 8, and September 7, 2017, aiding and abetting the carrying of a firearm during the bank robberies, and unlawfully transferring a handgun to a juvenile. If convicted, King faces not less than 57 years in prison and up to life imprisonment.
United States Attorney Bobby L. Christine said, “Our office will aggressively prosecute those who commit violent crimes in our neighborhoods and anyone who aids and abets them. Those who think they may avoid federal prosecution because of their youth, let this prosecution serve notice.”
“It very disconcerting that anyone would brandish a weapon during a bank robbery, let alone a 17-year old youth,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The disregard for employees and customers is reprehensible. These arrests and prosecution of this case demonstrate the determination of the FBI Southeast Georgia Violent Crime Task Force and its local law enforcement partners to make our community a safer place.”
United States Attorney Christine emphasized that an indictment is only an accusation and is not evidence of guilty. A defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The investigation into the three bank robberies was led by the FBI Southeast Georgia Violent Crime Task Force, along with assistance from Savannah-Chatham Police Department, and Garden City Police Department. Assistant United States Attorney Chris Howard is prosecuting these cases for the United States. For any questions, please contact Appellate Chief R. Brian Tanner at (912) 652-4422.
Stratford Man Pleads Guilty to Bankruptcy FraudRead the Press Release
John H. Durham. United States Attorney for the District of Connecticut, announced that DARRYLL HARMON, 44, of Stratford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of bankruptcy fraud.
According to court documents and statements made in court, HARMON was in default on his HUD-insured mortgage, which was held by the Connecticut Housing Finance Authority (“CHFA”). In January 2009, CHFA commenced foreclosure proceedings in Connecticut Superior Court. Between January 2009 and October 2013, HARMON filed seven petitions for bankruptcy in U.S. Bankruptcy Court for the District of Connecticut, which caused the foreclosure proceedings to be automatically stayed until the bankruptcy proceedings were resolved. The bankruptcy court dismissed all but one of the bankruptcy petitions because HARMON failed to pay filing fees or to file required information. On July 25, 2014, the bankruptcy court dismissed HARMON’s seventh bankruptcy petition and issued an order barring HARMON from filing for bankruptcy for the two-year period from July 17, 2014 through July 17, 2016.
On July 1, 2016, HARMON filed another bankruptcy petition, this time in the name of another individual who lived in Texas. HARMON falsely listed his home as the other individual’s residence and forged that individual’s signature on the bankruptcy petition. The individual did not authorize the petition to be filed and did not have knowledge that it was being filed. The filing of the false bankruptcy petition caused another automatic stay of the foreclosure sale on HARMON’s home, thereby hindering and preventing CHFA from foreclosing on the HUD-insured mortgage and collecting the debts owed to it.
Bankruptcy fraud carries a maximum term of imprisonment of five years. A sentencing date has not been scheduled. HARMON is released on a $75,000 bond.
This matter is being investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Shreveport felon pleads guilty to possessing a handgunRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Shreveport man who was previously convicted of two felonies pleaded guilty to possessing a loaded revolver.
Kevin Anthony Dison Jr., 21, of Shreveport, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of possession of a firearm by a convicted felon. According to the guilty plea, Shreveport Police officers stopped the vehicle Dison was driving on April 11, 2017. Police searched the vehicle and found a loaded Rossi revolver, model .38 caliber, which was located on the floorboard partially under the driver’s seat. The revolver could be seen by anyone driving the vehicle. Dison was previously convicted of felony theft in April 2015 in Caddo Parish and simple burglary in April 2016 in Bossier Parish.
Dison faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of March 23, 2018.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford is prosecuting the case.
Shelby County Man Sentenced for Possessing Child PornographyRead the Press Release
DAYTON – Robert Phelps, 49, of Jackson Center, Ohio, was sentenced in U.S. District Court to 36 months in prison for possessing child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and other members of the FBI’s Child Exploitation Task Force announced the sentence handed down by U.S. District Judge Walter H. Rice.
Phelps was one of three defendants convicted in the Southern District of Ohio as the result of a national FBI investigation, “Operation Pacifier,” which involved the takedown of a “dark web” site dedicated to child pornography. Using a court-approved Network Investigative Technique to pierce through the anonymity provided by the Tor network, agents uncovered IP addresses and other information that helped locate and identify users. Investigators sent more than 1,000 leads to FBI field offices in every state in the country and thousands more to oversees partners.
As a result of the investigation, at least 350 U.S.-based individuals have been arrested, 25 producers of child pornography have been prosecuted, 51 alleged hands-on abusers have been prosecuted and 55 American children who were subjected to sexual abuse have been successfully identified or rescued.
According to court documents in this case, when federal agents executed a search warrant in July at Phelps’s home, on just one computer they discovered more than 6,300 images and 590 videos of minors engaged in sexually explicit conduct. A separate hard drive contained an additional 255,000 images and 120 videos.
Phelps pleaded guilty in April to one count of possessing child pornography.
U.S. Attorney Glassman commended the investigation by the FBI, as well as Assistant United States Attorneys Amy M. Smith and Andrew J. Hunt, who are representing the United States in this case.
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Seminole Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Rodney Phillip Aird, age 50, of Seminole, Oklahoma pled guilty to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years and not more than 40 years imprisonment, and up to a $5,000,000.00 fine or both.
The Indictment alleged that on or about August 13, 2017, within the Eastern District of Oklahoma, the defendant, Rodney Phillip Aird, did knowingly and intentionally possess with the intent to distribute 5 grams or more of methamphetamine (actual), a Schedule II controlled substance.
The charge arose from an investigation by the Seminole Nation Tribal Police and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney John David Luton represented the United States.
Romanian Man Pleads Guilty to Possession of A False PassportRead 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 Alin Madalin Munteanu, 37, of Romania, pleaded guilty, before Chief U.S. District Judge Frank P. Geraci, to using a false passport. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that on August 12, 2017, in the Town of Webster, NY, Munteanu was encountered by local police and asked for identification. The defendant provided a forged Hungarian passport that had been issued to someone else but had been altered to include Munteanu’s photograph.
The plea is the result of an investigation by the Department of State’s Diplomatic Security Service, under the direction of Charles Brandeis, Special Agent-in-Charge of the New York Field Office; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Webster Police Department, under the direction of Chief Joseph Rieger.
Sentencing is scheduled for March 23, 2018, at 11:00 a.m. before Chief Judge Geraci.
Resident of Webster, New York Pleads Guilty to Health Care FraudRead the Press Release
CONCORD, N.H. - Acting United States Attorney John Farley announced today that Judith Morale (formerly known as Judith Remo), 54, currently a resident of Webster, New York, has pleaded guilty to health care fraud.
According to court documents, from 2006 to 2012, Morale owned and operated a business, Bedford Geriatric Physical Therapy, LLC, that provided physical therapy services to Medicare beneficiaries. Through the business, Morale provided routine foot care (e.g., toenail trimming, ingrown toenail repair and callus shaving) to patients in an assisted living facility in Bedford, New Hampshire. Knowing that the services were not covered by Medicare, Morale obtained payments totaling $41,127.89 by submitting claims for payment to Medicare that falsely described these routine services as wound care.
Morale is scheduled to be sentenced by United States District Court Judge Joseph DiClerico on March 27, 2018.
“Fraud against federal health care programs such as Medicare is a very a serious crime,” said Acting U.S. Attorney Farley. “When health care providers fraudulently obtain money from the Medicare program, they will be held accountable for their actions. I commend the efforts of the law enforcement agents whose work led to this conviction.”
“By literally using the Medicare system as her own personal ATM, Ms. Morale violated the basic trust that taxpayers extend to healthcare providers.” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “Fraudulently billing the government defrauds every American taxpayer, and the FBI is committed to finding those who abuse public health care programs to which we all contribute and depend on.”
“Every Medicare dollar is needed to provide necessary patient care, thus skimming off funds by providers will not be tolerated,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The message is clear. Those who steal from Medicare will have to pay the price.”
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys John Davis and Robert Kinsella.
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Queens Drug Trafficker Sentenced to 84 Months’ Imprisonment for Distributing “Batman” Branded HeroinRead the Press Release
Earlier today, in federal court in Brooklyn, Lamont Moran was sentenced by United States District Judge I. Leo Glasser to 84 months’ imprisonment to be followed by four years of supervised release, after his conviction for conspiring to distribute more than 100 grams of heroin. The defendant ran a heroin distribution operation near the Baisley Park Houses in South Jamaica, Queens from 2015 until his arrest in September 2016. Moran pled guilty to the charge in April 2017.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York), William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Division (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“The defendant Lamont Moran promoted and profited from the opioid epidemic in our District,” stated Acting United States Attorney Rohde. “Today he was held accountable. Together with our law enforcement partners, this Office will continue to investigate and prosecute those like the defendant who seek to line their own pockets by selling these dangerous drugs and harming our community.”
According to court filings, the defendant was affiliated with the violent street gang “Get it in Stacks” (also known as “GI$”), a subset of the nationwide Bloods gang operating near the Baisley Park Houses in South Jamaica, Queens. The defendant supervised street-level dealers near the Baisley Park Houses—including at least one GI$ member and several elderly heroin addicts—who distributed heroin and fentanyl labeled with brand names such as “Batman,” “Call of Duty” and “Sleepys.” The defendant also sold heroin and fentanyl directly to users. From March 2016 to August 2016, for example, the defendant made more than 15 drug sales to a confidential FBI source. On many of these occasions, the defendant sold the source fentanyl instead of heroin—without ever revealing this fact to the source.
The defendant acknowledged in post-arrest statements that he personally did not use heroin: “I don’t use this [expletive]. I don’t touch this [expletive]. . . . I don’t view it as drugs, I view it as money.” A search of the defendant’s phone revealed more evidence of gang affiliation, plus photographs of the defendant with wads of cash and multiple firearms.
Four other defendants have been charged with heroin distribution crimes in this case, and each has pleaded guilty. On August 8, 2017, co-defendant Michael Singletary was sentenced to a year and a day of imprisonment for a single incident of heroin distribution. On October 3, 2017, co-defendant David Young—one of the defendant’s street-level dealers—was sentenced to 36 months’ imprisonment. On October 27, 2017, co-defendant William Parker—a career offender and another one of the defendant’s street-level dealers—was sentenced to 96 months’ imprisonment. Co-defendant Dennis Pristell—a street-level dealer who worked for the defendant—is awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Matthew Jacobs is in charge of the prosecution.
Defendant Sentenced Today:
LAMONT MORAN
Age: 30
Residence: Queens, New YorkDefendants Previously Sentenced:
WILLIAM PARKER
Age: 53
Residence: Queens, New YorkMICHAEL SINGLETARY
Age: 43
Residence: Baldwin Harbor, New YorkDAVID YOUNG
Age: 66
Residence: Queens, New YorkDefendant Awaiting Sentencing:
DENNIS PRISTELL
Age: 57
Residence: Queens, New York
E.D.N.Y. Docket No. 16-CR-506 (S-1) (ILG)
Porum Man Pleads Guilty to False StatementRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darrell Lee McLemore, age 55, of Porum, Oklahoma pled guilty to False Statement, in violation of Title 42, United States Code, Section 1383a(a)(2), punishable by not more than 5 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about February 1, 2017, within the Eastern District of Oklahoma, the defendant, Darrell Lee Mclemore, did knowingly make or caused to be made any false statement or representation of a material fact to the Social Security Administration used to determine the right for any payment. Specifically, Darrell Lee Mclemore participated in a redetermination conference wherein Darrell Lee Mclemore stated that Darrell Lee Mclemore had not worked since the date of Darrell Lee Mclemore’s last eligibility determination, when, in fact, Darrell Lee Mclemore knew that he had been gainfully employed during the period.
The charge arose from an investigation by the Social Security Administration’s Office of Inspector General.
The Honorable Steven P. Shreder, 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.
Porter Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Donald Jack Kilgore, age 67, of Porter, Oklahoma pled guilty to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about June 6, 2017, within the Eastern District of Oklahoma, the defendant, Donald Jack Kilgore, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Broken Arrow Police Department, the Wagoner County Sherriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, 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. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney John David Luton represented the United States.
Political Consultant Pleads Guilty to Conspiracy to Spend Nearly $1 Million from Springfield Charity for Illegal Political Activity, KickbacksRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Philadelphia political consultant pleaded guilty in federal court today to conspiring with a former Arkansas state legislator and several executives of a Springfield, Mo., charity to spend nearly $1 million on illegal political activity and on kickbacks to conspirators.
Donald Andrew Jones, also known as “D.A.” Jones, 62, of Willingboro, N.J., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with participating in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
Jones’s firm, D.A. Jones & Associates, based in Philadelphia, Penn., provides political and advocacy services, including consulting, analysis, and public relations. By pleading guilty today, Jones admitted that he was paid approximately $973,807 by Preferred Family Healthcare, Inc., a non-profit charity in Springfield, for illegal lobbying and political activity on behalf of the charity. Two co-conspirators received a total of $264,000 in kickbacks from Jones. (Preferred Family Healthcare resulted from the May 1, 2015, merger between Alternative Opportunities of Springfield, Mo., and Preferred Family Healthcare of Kirksville, Mo.)
Court documents cite, but do not identify by name, five individual co-conspirators who are not charged in the fraud scheme. Person #1, Person #2 and Person #3 – all residents of Springfield – were executives at the charity. Person #4, a resident of Rogers, Ark., served as an executive for company operations in the state of Arkansas. Person #4 also operated two lobbying firms. Person #7, a resident of Melbourne, Ark., was an Arkansas lobbyist and former state legislator. Person #7 also was a board member and employee of the charity.
Preferred Family Healthcare and its subsidiaries provide a variety of services to individuals, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. The charity received Medicaid reimbursements from the states of Missouri, Arkansas, Kansas and Oklahoma from 2011 to 2016, of which the federal portion totaled more than $255 million. The charity also received more than $53 million from the federal government (the Departments of Health and Human Services, Labor, Agriculture, Housing and Urban Development, Veterans Affairs, and Justice) under programs involving grants, contracts, loans, guarantees, insurance and other forms of federal assistance from July 1, 2010, to June 30, 2016.
According to today’s plea agreement, conspirators engaged in multiple schemes to unlawfully use the charity’s funds to make political contributions and for excessive and unreported lobbying and political advocacy. In order to provide a veneer of legitimacy for the kickbacks paid to themselves and others, and to disguise the nature and source of the payments, conspirators caused the payments to be described in the records as business expenses, such as “consulting” and “training” services, and executed sham “consulting agreements.”
Conspirators caused the charity to engage in political outreach that violated both law and public policy. For example, they employed lobbyists and advocates (including Jones) to influence elected and appointed public officials. Also, the conspirators caused personal contributions to elected officials and their political campaigns to be reimbursed by the charity. Such indirect contributions are prohibited by law just as if the payments had been made by the charity directly.
Jones admitted that he worked from 2011 through January 2017 to provide advocacy services, including direct contact with legislators and government officials, in order to influence elected and appointed public officials regarding legislative issues that impacted the charity. Jones also solicited the assistance of elected and appointed officials in steering grants and other sources of funding to the charity.
The charity paid Jones a total of $973,807, with some payments routed through different business entities or lobbying firms. Although his services were falsely described as “consulting” services and the payments made to Jones as payments pursuant to a “consulting agreement,” they actually were payments for Jones’s advocacy services, including direct contact with elected and appointed public officials.
Jones admitted that he paid $219,000 in kickbacks to Person #4 and that he made two payments totaling $45,000 to Person #7. Both Person #4 and Person #7 worked for the charity.
By pleading guilty today, Jones acknowledged he willfully blinded himself to (in other words, deliberately avoided learning or recognizing) the following facts, which should have been obvious to him: • Person #1, Person #2, Person #3 and Person #4 made some payments to him indirectly in order to conceal on the charity’s books and records the full amount he was paid; • Person #1, Person #2, and Person #3 caused the charity to pay him as a “consultant” in order to conceal the nature of his services for the charity, which were advocacy and lobbying; and
• Jones’s compensation for work done on behalf of Entity E – a separate for-profit company owned in part by Person #1 and Person #2 – should have been paid by Entity E, and not the charity.In a separate and unrelated case, Jones pleaded guilty in the Eastern District of Pennsylvania on Friday, Dec. 8, 2017, to lying to the FBI. Jones admitted to making a false statement to the FBI arising from his participation in a scheme involving unlawful contributions to a political candidate’s campaign.
Under federal statutes, Jones is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich and Trial Attorney Sean F. Mulryne of the Department of Justice Public Integrity Section. It was investigated by IRS-Criminal Investigation, the FBI and the Offices of the Inspectors General from the Departments of Labor, Health and Human Services, Housing and Urban Development, Veterans Affairs, and the FDIC.
Pawtucket Resident Sentenced for Trafficking MethamphetamineRead the Press Release
PROVIDENCE, RI – A Pawtucket resident who admitted to selling substantial quantities of methamphetamine has been sentenced to 5 years in federal prison, announced Acting United States Attorney Stephen G. Dambruch; Warwick Police Chief Colonel Stephen M. McCartney; Pawtucket Police Chief Tina Goncalves; and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of Bureau of Alcohol, Tobacco, Firearms and Explosives.
Christopher Bergeron, 46, pleaded guilty in U.S. District Court in Providence on September 22, 2017, to possession with the intent to distribute 50 grams or more of methamphetamine. He was arrested on May 4, 2017, after Warwick Police seized 15 grams of methamphetamine from Bergeron’s vehicle and Pawtucket Police seized 121 grams of methamphetamine during a court authorized search of his residence.
Bergeron’s drug trafficking activities came to the attention of law enforcement during an unrelated investigation into the methamphetamine trafficking activities of Jon Cascella, 49, of Warwick. A federal court jury recently convicted Cascella on four counts of distribution of methamphetamine, two counts of distribution of 5 grams or more of methamphetamine, and one count each of possession with intent to distribute 5 grams or more of methamphetamine, being a felon in possession of a firearm arm and possession of a firearm in furtherance of drug trafficking. Cascella is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on March 2, 2018.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Christopher Bergeron to serve 4 years supervised release upon completion of his term of incarceration. The statutorily required minimum sentence of 5 years imposed by the Court is greater than the U.S. Sentencing Guidelines imprisonment range in this matter of 41-51 months. The government recommended the Court impose a sentence of 60 months of incarceration.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah, with the assistance of Assistant U.S. Attorney Zechariah Chafee.
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Owners of Oklahoma City Diabetic Supply Company Charged with Medicaid FraudRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury has charged EUNJA VASQUEZ, 55, and LAWRENCE VASQUEZ, 61, of Edmond, Oklahoma, with Medicaid fraud, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma, and Mike Hunter, Oklahoma Attorney General.
According to the 115-count indictment, the Vasquezes used their own Oklahoma City company, Mercy Diabetic Supply, Inc., to defraud the Oklahoma Health Care Authority. Mercy Diabetic Supply is not affiliated with Mercy Health System. The indictment alleges that the Vasquezes submitted Medicaid claims for insulin pump supplies in the names of 29 Medicaid beneficiaries who did not, in fact, use insulin pumps in the treatment of their diabetes and whose physicians had not prescribed the use of insulin pumps for them. According to the indictment, some had not been diagnosed with diabetes. It is further alleged that Eunja Vasquez falsified medical forms and forged physician signatures as part of the scheme.
Attorney General Hunter’s Medicaid Fraud Control Unit investigated the case and brought the charges to the U.S. Attorney for the Western District of Oklahoma. The Attorney General said his office is dedicated to working with federal prosecutors to pursue individuals and companies committing fraud in the state.
"I commend the attorneys and investigators in the Medicaid Fraud Control Unit, who worked tirelessly on this case," Attorney General Hunter said. "Our office remains committed to fighting fraud, waste, and abuse of the state’s Medicaid program that helps vulnerable Oklahomans. I appreciate U.S. Attorney Mark Yancey and his team for taking this case."
U.S. Attorney Yancey said his office will continue its partnership with state agencies and state law enforcement to prevent fraud and corruption.
If convicted, the Vasquezes could each be imprisoned for a maximum of ten years on each count, to be followed by three years of supervised release. They could also be fined up to $250,000 on each count and would be subject to mandatory restitution.
The public is reminded these charges are merely accusations and that the Vasquezes are presumed innocent unless found guilty beyond a reasonable doubt by a unanimous jury.
Assistant U.S. Attorney Amanda Maxfield Green and Assistant Oklahoma Attorney General Lory Dewey, who is also a Special Assistant U.S. Attorney, are prosecuting the case. Reference is made to court filings for further information.
Orlando Woman Convicted of Tax Refund Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury found Jeanine Jeanty guilty of one count of conspiracy to steal tax refunds, five counts of theft of tax refunds, and two counts of aggravated identity theft. She faces a maximum penalty of five years in prison on the conspiracy charge, up to 10 years’ imprisonment on each of the theft charges, and a mandatory minimum of two years in federal prison for the aggravated identity theft charges. The sentencing hearing will take place on March 16, 2018.
According to testimony and evidence presented at trial, Jeanty conspired with others to steal federal tax refunds by filing false tax returns using stolen personal identifying information. She also purchased fraudulently-obtained tax refund checks from others for half of the face value of the checks. In less than two years, Jeanty and her co-conspirators stole more than $2.7 million in tax refunds from the Department of the Treasury.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Karen L. Gable.
Newington Man Sentenced to 57 Months in Federal Prison for Role in Drug RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TREVON TERRY, also known as “B.J.,” 39, of Newington, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 57 months of imprisonment, followed by three years supervised release, for his role in a cocaine and crack cocaine distribution ring.
According to court documents and statements made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that David Gil-Grande, of Manchester, received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to TERRY, Anthony Shelton, also known as “Pretty,” and Gerard Brown, also known as “Goldie,” who converted much of the cocaine into crack and distributed both forms of the drug in the area of Barbour Street in Hartford.
Twenty individuals were charged and convicted as a result of the investigation.
TERRY has been detained since his arrest on January 21, 2016. On that date, investigators seized $19,487 in cash from a safe in his Newington residence.
On August 31, 2017, TERRY pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
TERRY’s criminal history includes several state drug convictions, including a 2008 conviction for sale of narcotics for which he was sentenced to 11 years of incarceration, suspended after four years, and five years of probation. He was on probation for that narcotics offense while he was engaged in the criminal conduct that led to this federal conviction.
Gil-Grande, Shelton and Brown have pleaded guilty to related charges. On January 31, 2017, Gil-Grande was sentenced to 70 months of imprisonment. Shelton and Brown await sentencing.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the Drug Enforcement Administration have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
New Haven Heroin Dealer Sentenced to 3 Years in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ISMAEL RUIZ, also known as “Papo,” 51, of New Haven, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that members of the organization regularly purchased bulk quantities of heroin from suppliers located in the Bronx, New York, and sold the heroin through a network of redistributors, including RUIZ, on the streets of New Haven.
The investigation has resulted in federal charges against 24 individuals.
RUIZ was arrested on March 15, 2017. On August 10, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments.
The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
Mexican Citizen Sentenced for Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Avelarto Lopez Garcia, age 22, and a citizen of Mexico, was sentenced today to time served (29 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Lopez Garcia admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on December 12, 2015. Lopez-Garcia had previously been removed from the United States back to Mexico on December 15, 2012, October 27, 2015, October 30, 2015, and December 9, 2015.
On November 16, 2017, ICE officers arrested Lopez Garcia in Latham, New York.
Following the sentencing, Lopez Garcia was remanded to the custody of the Department of Homeland Security, for removal proceedings.
The case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Member of Cowboys Gang in South Carolina Sentenced to 20 Years in Prison for RICO ConspiracyRead the Press Release
WASHINGTON – The last indicted member of the Cowboys gang, a violent street gang that originated in “Eastside” area of Walterboro, South Carolina, was sentenced today to 20 years in prison in federal court in Charleston, South Carolina.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
Dashawn Trevell Brown, aka TOB and Shawny, 24, of Walterboro, South Carolina, was sentenced to 240 months in prison by U.S. District Court Judge David C. Norton. Judge Norton sentenced Brown to three years of supervised release following his prison sentence, and restitution for victims injured as a result of his criminal activity.
According to the plea agreement, Brown was a member of the Cowboys gang, a violent street gang that originated in the “Eastside” area of Walterboro, South Carolina. Members of the Cowboys show their allegiance by wearing red, white, and blue clothing, and carrying rags in these colors, including depictions of the American flag. Further, members of the Cowboys greet each other and show their membership in the gang using a set of hand-signs intended to evoke the shape of a “b.” This hand sign also shows an affiliation with the “Bloods” gang. Members of the Cowboys also show allegiance to the gang by having the words “Cowboy(s)” or “GMC” tattooed to some part of their body. The Cowboys gang was also, for a time, aligned with another violent street gang called the “Wildboys,” that originated out of the Green Pond area of Walterboro. In addition to sharing a common interest in posting threats, firearms, large amounts of cash, and what purported to be narcotics on Facebook and YouTube, Cowboys and Wildboys shared common enemies. These shared interests resulted in shootings, aimed at rival gang members, which left innocent by-standers seriously injured.
Brown was sentenced for his role in four shootings committed on behalf of his membership as a Cowboys. On May 12, 2011, after an encounter with an individual believed to be a member of a rival gang, Brown fired shots at the victim. The shooting occurred because of an on-going dispute between the Cowboys and the rival gang. Brown was identified by witnesses to the shooting. As a result of this, a retaliatory shooting occurred on May 14, 2011, during which, another innocent bystsander was shot and seriously injured. Brown was also identified as having fired shots during this incident.
Second, Brown was sentenced for his role in a June 30, 2013 shooting in the Druid Hills areas of Walterboro. Brown, who was in a vehicle occupied by two other members of the Cowboys, participated in a drive-by shooting of individuals believed to be members of a rival gang. Brown, who fired shots resulting in injuries to the victim’s arm, days later encountered the victim and told him, “I should have killed you.”
Third, Brown was sentenced for his role in the July 14, 2013 shooting at the Starlite Lounge in St. George. Brown, and other members of the Cowboys, attended a party at the lounge while dressed in Cowboys colors, including displays of red, white, and blue bandanas. While members of the Cowboys were on stage, members of the Cowboys exchanged words with a patron. After they believed they were disrespected by the patron, members of the Cowboys left the club and waited outside. As individuals began to leave the club, Brown and at least four other members of the Cowboys fired guns toward those coming out of the club. As a result of the shooting, at least three victims were shot and injured.
Lastly, Brown was sentenced for his role in a Nov. 6, 2015 attempted murder. Brown, along with co-defendants Khiry Broughton and Quintin Fishburne, attended a drag race outside of Walterboro. After bets were placed, Broughton questioned the results of the race and demanded the winnings, which were held by one of the race drivers. Broughton decided to rob the winner of the race and in so doing retrieved a backpack containing firearms from Fishburne’s vehicle. Broughton provided the firearms to Brown and other members of the Cowboys. After the winner refused to provide the money, the winner and another innocent bystander were shot and severely injured. After the shooting occurred, Fishburne, who transported Brown and Broughton, drove Brown and Broughton from the scene to avoid apprehension by the police.
Khiry Broughton, Clyde Naquan Hampton, Matthew Rashuan Jones, William Lamont Cox, Bryant Jameek Davis, Zaquann Ernest Hampton, Christopher Sean Brown, and Quintin Fishburne were all sentenced in November for their roles in criminal activity related to the Cowboys.
In August, Attorney General Jeff Sessions delivered remarks to the 2017 Gangs Across the Carolinas Training Symposium in Winston-Salem, North Carolina. Since the beginning of this year, the Department of Justice has secured more than 1,260 convictions against gang members.
The case was investigated by the ATF Charleston, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Special Assistant U.S. Attorney Tameaka A. Legette from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
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