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Friday 22 September 2017
Marshall County man pleads guilty to drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Moundsville, West Virginia man has admitted to a drug distribution charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Rhett D. Gump, age 24, pled guilty to one count of “Distribution of Methamphetamine in Proximity to a Protected Location.” Gump admitted to selling methamphetamine near the Golden Towers in Moundsville on January 5, 2017.
Gump faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr., prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James E. Seibert presided.
Marshall County man admits to drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Moundsville, West Virginia man has admitted to a drug distribution charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Ronald Lee Shaw, also known as “Fuzz,” age 46, pled guilty to one count of “Distribution of Cocaine within 1,000 Feet of a Protected Location.” Shaw admitted to selling cocaine near Riverview Towers in Wheeling on April 18, 2017.
Shaw faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James E. Seibert presided.
Marrero Man Sentenced for Bank RobberyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TRAVIS CARTER, age 38, of Marrero, was sentenced yesterday after previously pleading guilty to a one-count Indictment for bank robbery.
U.S. District Judge Susie Morgan sentenced CARTER to 30 months incarceration, followed by two years of supervised release, restitution in the amount of $4,444.95, and a $100 special assessment.
According to the court documents, on July 22, 2016, CARTER, wearing a disguise of a baseball hat, sunglasses, and with a towel covering his face, robbed the Whitney Bank located in Marrero. CARTER escaped with over $4,000 dollars in U.S. currency. Citizens identified CARTER after local news outlets reported the robbery and featured still images of him captured from bank surveillance. Additionally, the vehicle driven by CARTER during the robbery, was identified by an automatic license plate recognition camera after it was captured fleeing the bank.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Brittany Reed was in charge of the prosecution.
Margate, New Jersey, Doctor Pleads Guilty in Healthcare Fraud Conspiracy Targeting New Jersey Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A doctor with a medical practice in Margate, New Jersey, today admitted defrauding New Jersey state health benefits programs and other insurers by signing prescriptions for patients he never saw, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
John Gaffney, 55, of Linwood, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
“Dr. Gaffney sold phony prescriptions for unnecessary medications to patients he never examined as part of a sophisticated scheme to defraud a prescription benefits program available to New Jersey state and municipal employees,” Acting U.S. Attorney Fitzpatrick said. “In an era when many Americans work hard to maintain affordable health insurance for their families, Dr. Gaffney and his conspirators criminally exploited the health care system and left New Jersey tax payers on the hook for approximately $25 million in losses.”
“New Jersey’s families are the ones who pay the cost for healthcare fraud,” said Attorney General Porrino. “In New Jersey, law enforcement partners are working together to fight back against those who use their positions to steal millions of dollars from our healthcare system for personal gain. I want to thank the United States Attorney's Office for the District of New Jersey, Acting U.S. Attorney Fitzpatrick and all of our federal partners for aggressively attacking incidents of insurance fraud and for successfully prosecuting these often complicated schemes.”
“This is another demonstration of the FBI’s commitment to aggressively pursue healthcare fraud, along with our federal, state, and local law enforcement partners and the U.S. Attorney’s Office,” stated Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office. “We will not tolerate unscrupulous healthcare professionals who are entrusted with providing honest services to the citizens of New Jersey.”
“Doctors play a trusted and vital role in the American healthcare system. John Gaffney broke this trust when he wrote and accepted payment for prescriptions that were medically unnecessary. This fraudulent conduct creates risks for patients and undermines the system. The U.S. Department of Labor Office of Inspector General remains committed to combating illegal prescription drug schemes, like compounded medication fraud, particularly when they victimize programs administered by the Department of Labor. We will continue to work with our law enforcement partners to aggressively investigate allegations of this nature,” said Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor, Office of Inspector General.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Gaffney’s conspirators persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the information as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, Gaffney’s conspirators would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They then had Gaffney sign prescriptions for compounded medications for numerous individuals, even though Gaffney never saw the individuals or evaluated whether they had a medical necessity for the compounded medication. Gaffney also signed a blank prescription form, which other conspirators copied and used to submit additional fraudulent prescriptions to the Compounding Pharmacy.
Other conspirators submitted fraudulent prescriptions bearing Gaffney’s signature for over 200 individuals, and the Pharmacy Benefits Administrator paid just under $25 million for those prescriptions. Gaffney received payments of thousands of dollars in cash and other benefits to reward him for his role in the scheme.
As part of his plea agreement, Gaffney must forfeit $25,000 in criminal proceeds and pay restitution of at least $24,956,435.08. He faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Jan. 5, 2018.
Five other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, and Steven Urbanski – pleaded guilty in August 2017 and await sentencing.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gallagher in Newark, agents of the IRS – Criminal Investigation, under the direction of Jonathan D. Larsen in Newark, and agents of the Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Mikulka in New York, for their roles in the investigation leading to the guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel: Michael Engle Esq., Philadelphia
Lewiston Man Sentenced to over 15 Years on Interstate Robbery and Gun ChargesRead the Press Release
Portland, Maine: Acting United States Richard W. Murphy announced that Kourtney Williams, 27, of Lewiston, Maine was sentenced today in U.S. District Court by Judge Jon D. Levy to 184 months in prison and five years of supervised release for interstate robbery conspiracy and using a firearm during a crime of violence. The defendant was convicted following a jury trial on September 12, 2016.
Court records and trial evidence revealed that on August 2, 2014, at about 11:00 p.m., the defendant, armed with a pistol, and associates, one of whom had a crowbar, broke into a residence on the Garfield Road in Minot, Maine intending to steal drugs and money from its occupants. The defendant used the pistol to repeatedly threaten and assault the occupants.
The investigation was conducted by the Maine State Police; the Lewiston and Auburn Police Departments; the U.S. Drug Enforcement Administration; and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Kennewick Man Sentenced to 5 Years in Federal Prison for Attempted Transfer of Obscene Material to a MinorRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Donald Russell Tyke Wheeler, of Kennewick, Washington, was sentenced after previously having plead guilty on February 9, 2017, to attempted transfer of obscene materials to a minor. United States District Judge Stanley A. Bastian sentenced Wheeler to a 5-year term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, in July of 2016, a detective with the Southeast Regional Internet Crimes Against Children Task Force (SER-ICAC) and Homeland Security Investigations (HSI) observed an ad on a well-known website seeking a female to “play”. The detective responded to the ad posing as a thirteen (13) year old minor female. During the course of communications with the minor, Wheeler described in graphic detail the manner in which he wished to have sexual intercourse with the purported child. He also sent multiple pictures of his genitalia to the purported child labeled with the purported child’s name. Wheeler made multiple attempts to meet the purported child to commit the described sexual acts in Kennewick, Washington.
In the fall of 2016, Wheeler was arrested upon arrival at the meet location where he had directed the purported child. In a post-arrest interview, Wheeler admitted that he had communicated with the purported child, and sent the labeled photographs of his genitalia to the purported child. Wheeler further admitted that he had tried to meet with the purported minor on two prior occasions to engage in sexual intercourse.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington continues to prioritize the investigation and prosecution of crimes involving children, like the offense in this case.”
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.”
Homeland Security Investigations and the Southeast Regional Internet Crimes Against Children Task Force conducted the investigation of this matter. The case was prosecuted by Laurel J. Holland, an Assistant United States Attorney for the Eastern District of Washington.
Kansas to Receive Federal Funds to Fight Opioid EpidemicRead the Press Release
TOPEKA, KAN. – Kansas will receive more than $500,000 in federal grants to help fight the opioid crisis, the U.S. Justice Department announced Friday.
The city of Wichita will receive $398,972 from the Adult Drug Court and Veterans Treatment Courts grant program. The grant is aimed at supporting drug courts that hold offenders accountable and reduce victimization by intervening early in the process to prevent crimes. It also supports programs to assist offenders who are veterans.
The Kansas State Board of Pharmacy will receive $178,680 to support the state’s prescription drug monitoring program. The pharmacy board oversees K-TRACS, a system for monitoring prescriptions for controlled substances.
The grants are part of nearly $59 million the Justice Department announced Friday it will spend to strengthen drug court programs and address the opioid epidemic nationwide.
In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues.
“Today, we are facing the deadliest drug crisis in American history,” said Attorney General Jeff Sessions. “These trends are shocking and the numbers tell us a lot– but they aren’t just numbers. They represent moms and dads, brothers and sisters, neighbors and friends.”
Justice Department Awards Nearly $59,000,000 to Combat Opioid Epidemic, Fund Drug CourtsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Erie County to receive $300,000;
Seneca Nation of Indians to receive $399,000BUFFALO, NY–The Department of Justice today announced $58,800,000 to strengthen drug court programs and address the opioid epidemic nationwide.
In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues. The opioid epidemic, a public health crisis, is also a growing public safety crisis.
“Today, we are facing the deadliest drug crisis in American history,” said Attorney General Jeff Sessions. “These trends are shocking and the numbers tell us a lot– but they aren’t just numbers. They represent moms and dads, brothers and sisters, neighbors and friends. And make no mistake combatting this poison is a top priority for President Trump and his administration, and you can be sure that we are taking action to address it. Today, we are announcing that we will be awarding millions in federal grants to help law enforcement and public health agencies address prescription drug and opioid abuse. This is an urgent problem and we are making it a top priority.”
In Erie County, there were 301 confirmed opioid related deaths in 2016. There have been 112 confirmed deaths so far in 2017 with another 132 suspected deaths.
“Hopefully, this significant funding from the Department of Justice will further assist our federal, state, and local partners in our combined and ongoing effort to turn the tide in our battle against opioids. It is a battle we continue to fight on multiple fronts,” said Acting U.S. Attorney James P. Kennedy, Jr. “Our District will be receiving funding which includes: $300,000 to Erie County to support programs designed to connect overdose survivors to services; and $399,344 is being provided to the Seneca Nation of Indians to support county-based approaches to establish effective diversion and/or alternatives to incarceration programs for individuals with opioid use disorders.”
About $24,000,000 in federal grants will be awarded to 50 cities, counties and public health departments to provide financial and technical assistance to state, local, and tribal governments to create comprehensive diversion and alternatives to incarceration programs for those impacted by the opioid epidemic. These funds, awarded under the Office of Justice Programs’ Bureau of Justice Assistance’s Comprehensive Opioid Abuse Program, also included funds from the Harold Rogers Prescription Drug Monitoring Program. This program helps regulatory, law enforcement, and public health agencies address prescription drug and opioid misuse; reduce crime; and save lives.
An additional $3,100,000 million will be awarded by the National Institute of Justice for research and evaluation on drugs and crime. The research priorities are heroin and other opioids and synthetic drugs.
The department is also awarding more than $22,200,000 to 53 jurisdictions to support the implementation and enhancement of adult drug courts and Veterans Treatment Courts, which serve as “one-stop-shops” to link veterans with services, benefits and program providers, including the Department of Veterans Affairs, Veterans Service Organizations and volunteer veteran mentors.
The department is also awarding more than $9,500,000 under several Office of Juvenile Justice and Delinquency Prevention grant programs, including the Juvenile Drug Treatment Court Grant Program and the Family Drug Court Statewide System Reform Implementation Program. These programs help jurisdictions build effective family drug treatment courts and ensure current juvenile drug treatment courts follow established guidelines.
Jefferson County man admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Harpers Ferry, West Virginia man has admitted to distributing heroin, Acting United States Attorney Betsy Steinfeld Jividen announced.
Blake Ramsey Viands, age 25, pled guilty to one count of “Distribution of a Heroin.” Viands admitted to distributing heroin in November 2016 in Jefferson County, West Virginia.
Viands 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.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Drug Enforcement Agency and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jamestown Man Sentenced on Child Pornogrpahy ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. James P. Kennedy, Jr. announced today that Christopher Whitford, 46, of Jamestown, NY, who was convicted of distribution of child pornography, was sentenced to 120 months in prison and 10 years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Mary C. Baumgarten, who handled the case, stated that on May 1, 2016, the defendant, using a peer-to-peer file sharing program, shared files with an undercover law enforcement officer. On June 23, 2016, a federal search warrant was executed at the defendant’s residence at 42 West 13th Street, Jamestown, New York, during which several items of electronic media were seized. Forensic analysis revealed images and videos constituting child pornography were stored on those items. The images and videos that the defendant previously shared with the undercover officer were among them. Whitford had approximately 2405 images and 1188 videos constituting child pornography.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on September 21, 2017 and entering pleas of Not Guilty were:
- JOSHUA ABRAM DISKIN, a 47-year-old resident of Yuba City, California, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, DISKIN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Montana HIDTA. PACER Case Reference. 17-60
- RONALD DUANE KNAUB, a 68-year-old resident of Shepherd, appeared on charges of felon in possession of a firearm and ammunition. If convicted of the charge contained in the indictment, KNAUB faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-99
Appearing before U.S. Magistrate Johnston in Great Falls on September 20, 2017 and entering pleas of Not Guilty were:
- BRITTANY MARTELL, a 25-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, MARTELL faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 17-61
Appearing before U.S. Magistrate Johnston in Great Falls on September 19, 2017 and entering pleas of Not Guilty were:
- ROBERT ALAN CONNOLLY, a 67-year-old resident of Ranson, West Virginia, appeared on charges of failure to register/update registration as a sexual offender. If convicted of the charge contained in the indictment, CONNOLLY faces 10 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 17-60
- LANDON DUPREE, a 31-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, DUPREE faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 17-61
- STEPHAN DUANE KOROL-LOCKE, a 44-year-old resident of Great Falls, appeared on charges of attempted coercion and enticement. If convicted of the charge contained in the indictment, KOROL-LOCKE faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations and Great Falls Police Department. PACER Case Reference. 17-62
- JODY DOWD WOOTEN, a 50-year-old resident of Sacramento, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, WOOTEN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations, Russell Country Drug Task Force, and Lewistown Police Department. PACER Case Reference. 17-65
Appearing before U.S. Magistrate Johnston in Great Falls, on September 14, 2017 and entering pleas of Not Guilty were:
- EDWARD DEAN CASSIDY, a 50-year-old resident of Browning, appeared on charges of abusive sexual contact. If convicted of the most serious charge contained in the indictment, CASSIDY faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-59
- LEWIS PATRICK MARCHAND, a 57-year-old resident of Heart Butte, appeared on charges of failure to register. If convicted of the charge contained in the indictment, MARCHAND faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 17-63
- JONATHAN PAUL SCHULZ, a 48-year-old resident of Conrad, appeared on charges of felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, SCHULZ faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-64
Appearing before U.S. Magistrate Cavan in Billings on September 12, 2017 and entering pleas of Not Guilty were:
- MISTY NICOLE MARCUM, a 38-year-old resident of Bakersfield, California, appeared on charges counterfeiting and forging obligations or securities of the United States, and passing or uttering counterfeit obligations or securities of the United States. If convicted of the most serious charge contained in the indictment, MARCUM faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Secret Service. PACER Case Reference. 16-99
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indian Defendant Appears in Federal Court to Face Fraud, Conspiracy and Money Laundering ChargesRead the Press Release
PITTSBURGH - A resident of Mumbai, India, made his initial appearance in U.S. District Court in Pittsburgh this afternoon to face charges of mail fraud, conspiracy to misbrand and smuggle drugs, conspiracy to import Schedule IV controlled substances and money laundering, Acting United States Attorney Soo C. Song announced today.
The 14-count indictment, returned on July 28, 2015, named Ramesh Buchirajam Akkela, aka Ramesh Bhai, 44, of Mumbai, India as the sole defendant. Akkela was arrested in Panama earlier this year. He was extradited to the United States yesterday.
According to the indictment, Akkela, an Indian Internet-based supplier of prescription drugs, supplied those drugs - without prescriptions - to U.S. consumers. He was indicted on 10 counts of mail fraud, one count of conspiracy to misbrand and smuggle drugs, one count of conspiracy to import Schedule IV controlled substances and two counts of money laundering.
Except for the conspiracy counts, each of which is punishable by five years imprisonment, all the other counts have a maximum penalty of 20 years in prison. Each money laundering count carries a maximum $500,000 fine, while $250,000 is the maximum fine for the remaining counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, Homeland Security Investigations, United States Postal Inspection Service, Pennsylvania State Police and the Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Houston Man Sentenced to 13 Years Imprisonment for Conspiracy to Traffick Cocaine from Houston to New OrleansRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CRAIG JAMES, age 39, of Houston, was sentenced yesterday after having previously pled guilty to one count of conspiring to distribute and to possess with intent to distribute five kilograms or more of cocaine hydrochloride and twenty-eight grams or more of cocaine base.
U.S. District Judge Jane Triche Milazzo sentenced JAMES to 156 months of incarceration, to be followed by 10 years of supervised release.
According to court documents, JAMES, along with codefendants JOPPA JACKSON, LAZANDY DANIELS, and LEON JACKSON, JR., conspired to distribute cocaine in the New Orleans area. In 2015, JAMES traveled to New Orleans multiple times per month in order to deliver kilogram quantities of cocaine to his local customers, including JOPPA JACKSON, DANIELS, and LEON JACKSON. JOPPA JACKSON, DANIELS, and LEON JACKSON then sold the cocaine to users and other drug dealers in the New Orleans area.
JOPPA JACKSON pled guilty to conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride. Sentencing for JOPPA JACKSON is scheduled for October 5, 2017.
On June 14, 2017, a jury convicted LAZANDY DANIELS of conspiracy to distribute 5 kilograms or more of cocaine hydrochloride and 27 grams or more of cocaine base (crack) (2counts), possession with intent to distribute 28 grams or more of cocaine base (crack) (2 counts), and knowingly and intentionally distributing cocaine base (crack). Sentencing for DANIELS is scheduled for October 19, 2017.
LEON JACKSON pled guilty to conspiracy to distribute five kilograms or more of a mixture or substance containing cocaine hydrochloride and 28 grams or more of cocaine base (crack). LEON JACKSON was sentenced to 70 months of imprisonment, followed by five years of supervised release, and a $100 special assessment
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration (DEA) and the New Orleans Police Department (NOPD) in investigating this matter. Assistant United States Attorneys Brandon S. Long and Theodore Carter are in charge of the prosecution.
Home Health Care Aide Pleads Guilty to Defrauding Her EmployerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced that Cassie Tillinghast, 32, of Buffalo, NY, pleaded guilty to bank fraud before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that in May 2015, the defendant was hired as an in-home health care aide to assist with the care of Victim 1’s elderly mother in the home of Victim 1 and her husband. Subsequently, Tillinghast fraudulently applied for a Discover credit card in the name of Victim 1, and between November 25, 2015, and December 21, 2015, the defendant fraudulently used the Discover credit card in Victim 1’s name at retail establishments in the Western District of New York to obtain goods and merchandise. Discover Financial Services suffered a total loss of $6,462.89.
The plea is the result of an investigation by the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, Boston Field Division.
Sentencing is scheduled for February 8, 2018, at 2:00 p.m. before Judge Geraci.
Hanford DOE Subcontractor Agrees to Pay $2.0 Million to Settle Allegations of Small Business FraudRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Federal Engineers & Constructors (FE&C), a subcontractor at the Department of Energy’s (DOE) Hanford Site, has agreed to pay $2 Million ($2,000,000) to resolve allegations that it violated the False Claims Act (FCA) in connection with a number small business subcontracts with DOE at its Hanford nuclear site.
Between 2005 and 2016, Washington Closure Hanford, LLC (WCH), a jointly owned by AECOM, Bechtel National Inc., and CH2M Hill Companies Ltd., was a DOE prime contractor that was awarded a multi-billion dollar River Corridor Closure Contract (RCC) at DOE’s Hanford Site. WCH was responsible for environmental remediation on Hanford's River Corridor. WCH workers were responsible for cleaning up waste sites at Hanford, decontaminating and decommissioning former plutonium production nuclear reactors and surplus facilities, and disposing of contaminated waste. The RCC required WCH to award a certain percentage of subcontracts to small and disadvantaged businesses, including woman-owned small businesses. Pursuant to its contract, DOE fully reimbursed WCH for hundreds of millions of dollars in subcontracts WCH awarded to qualified small, disadvantaged businesses, including women-owned small businesses.
The case originally arose out of a whistleblower complaint filed in U.S. District Court by Savage Logistics LLC, a Hanford-area small business, and Salina Savage, its owner. In December 2013, the United States filed a Complaint intervening in the lawsuit, alleging that WCH, FE&C, Sage Tec LLC (purported to be a small, disadvantaged business) and Laura Shikashio, the owner of Sage Tec, violated the False Claims Act (FCA) with respect to two multi-million dollar subcontracts arranged between WCH and Sage Tec. The Complaint alleges that WCH, FE&C, Sage Tec and Ms. Sikashio knowingly misrepresented Sage Tec to be a qualified disadvantaged small business in order to be eligible for two multi-million dollar subcontracts that were designated for truly qualified small disadvantaged businesses. The Complaint further alleges that Sage Tec was not a legitimate small, disadvantaged business; rather it was a pass-through front company for FE&C, which performed substantially all of the work on WHC’s improperly awarded subcontracts.
FE&C’s settlement with the DOJ resolves its liability for the misconduct alleged and set forth in the United States’ Complaint. The United States’ case against WCH, Sage Tec, and Ms. Shikashio continues to be prosecuted and the remaining defendants still deny liability.
Joseph H. Harrington said, “Small business fraud not only harms the taxpayers and the vital cleanup mission at Hanford, but legitimate small, disadvantaged businesses that do not have the opportunity to fairly compete for and perform subcontracts. I want to commend the Department of Energy Office of Inspector General (DOE-OIG) and the Small Business Administration Office of Inspector General (SBA-OIG) for the outstanding efforts investigating and uncovering the scheme perpetrated here. The United States Attorney’s Office for the Eastern District of Washington, together with the Office’s law enforcement partners, will continue to pursue vigorously large and small business fraud at Hanford.”
“The false statements in this case were intended to deceive the government into believing that a woman-owned small, disadvantaged business was performing valuable work as a government subcontractor,” said Small Business Administration Acting Inspector General Hannibal “Mike” Ware. “OIG will aggressively pursue parties that, through fraud, gain access to SBA’s small business contracting programs. I want to thank the U.S. Attorney’s Office for their dedication to enforcing compliance in SBA’s contracting programs.”
Department of Energy Acting Inspector General April G. Stephenson said, “The Department of Energy Office of Inspector General is committed to ensuring the integrity of Departmental contracts and financial expenditures. We will continue to investigate allegations of fraudulent diversion of tax dollars throughout DOE programs. This settlement is a result of our staff’s dedicated work to ensure public funds are properly used for the mission-related purposes for which they are intended. We appreciate the support of Department of Justice’s and Department of Energy’s attorneys in these matters.”
The Savage whistleblowers will receive approximately $470,000 of the $2.0 Million settlement DOJ reached with FE&C due to their private efforts in exposing – reporting the described scheme to the DOE and DOJ.
DOE-OIG and SBA-OIG conducted the investigation on the Relators’ whistleblower complaint. The DOJ’s lawsuit is being prosecuted by Tyler H.L. Tornabene, Vanessa R.Waldref, and Daniel Fruchter, Assistant United States Attorneys for the Eastern District of Washington.
This case is captioned United States of America ex rel. Salina Savage, Savage Logistics LLC, vs. Washington Closure Hanford LLC, Federal Engineers and Constructors, Inc., Sage Tec LLC, and Laura Shikashio, CV-10-5051-SMJ.
Guatemalan National Charged with Illegal Reentry after DeportationRead the Press Release
BOSTON - A Guatemalan national was charged yesterday in federal court in Boston with a federal immigration crime.
Juan Chilel-Sandoval, a/k/a Jose Bartolome Chilel Sandoval, 28, was indicted on one count of unlawful reentry of a deported alien. Chilel-Sandoval was previously deported on Oct. 22, 2010. On Aug. 31, 2017, Chilel-Sandoval was encountered by law enforcement in Lynn and determined to be illegally present in the United States.
Chilel-Sandoval faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. 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 and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting this 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.
Guatemalan National Charged with Illegal Reentry after DeportationRead the Press Release
BOSTON - A Guatemalan national was charged yesterday in federal court in Boston with an immigration crime.
Gilberto Chavez-Mendez, 24, was indicted on one count of unlawful reentry of a deported alien. Chavez-Mendez was previously deported on May 23, 2012. On Aug. 28, 2017, Chavez-Mendez was encountered by law enforcement in Lynn and determined to be illegally present in the United States.
Chavez-Mendez faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. 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 and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting this 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.
Former Executive Director of Newark Watershed Conservation and Development Corp. Sentenced to 102 Months in Prison for Role in Nearly $1 Million Kickback and Fraud SchemeRead the Press Release
NEWARK, N.J. – The former executive director of the Newark Watershed Conservation and Development Corp. (NWCDC) was sentenced today to 102 months in prison for accepting nearly $1 million in kickback payments in exchange for her assistance in awarding work to various vendors and contractors of the agency, Acting U.S. Attorney William E. Fitzpatrick announced.
Linda Watkins Brashear, 57, of West Orange, New Jersey, previously pleaded guilty before U.S. District Judge José Linares to Counts 1 and 5 of a five-count information charging her with a wire fraud scheme to defraud the NWCDC by accepting bribes and kickback payments from contractors and an employee of the corporation, which were funded by payments from the NWCDC based on fraudulently inflated invoices or issued for work that was not performed by the contractors (Count 1), and subscribing a false tax return for the year 2012 (Count 5). Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Brashear served as the executive director for the NWCDC from 2007 to March 2013. During this time, she and others devised a scheme to defraud the NWCDC of her honest services in the affairs of the NWCDC and of the NWCDC’s money and property. The object of the scheme was for Brashear and others to accept a substantial stream of concealed and undisclosed kickbacks from NWCDC contractors and an employee of the NWCDC for her direct and indirect benefit in exchange for action and assistance in the affairs of the NWCDC, and for her violating her official duties and responsibilities.
Between 2008 and March 2013, Brashear accepted approximately $999,000, in kickbacks financed through the receipt of payments by contractors and an employee of the NWCDC that were fraudulently obtained from the NWCDC with Brashear’s assistance, through materially false pretenses, representations and promises. In particular, Brashear accepted kickbacks as summarized below:
Time Period
Approximate Amount of Kickbacks
Paid By
September 2012 - March 2013
$39,000
NWCDC “Employee 1”
January 2009 – December 2012
$260,000
James Porter (identified in Count 1 as “partner of the special projects manager”)
January 2008 – June 2012
$70,000
Printing contractor
January 2011 – January 2013
$33,000
Marketing contractor
September 2012 – April 2013
$90,000
Cleaning contractor
April 2009 – February 2013
$118,000
Homeland Security contractor
January 2009 – May 2012
$40,000
Interior designer
January 2008 – March 2013
$177,000
Internet research consultant
October 2011 – March 2013
$29,000
Political consultant
April 2011 – September 2012
$32,000
Media consultant
January 2008 – March 2013
$27,000
Giacomo “Jack” DeRosa
May 2011 – March 2013
$84,000
Security consultant
Brashear routinely accepted payments from some of these contractors through Donald Bernard Sr. Brashear and Bernard also used their email accounts to facilitate this kickback and fraud scheme. Bernard was previously charged in December 2014 in a 20-count indictment with various federal offenses involving a scheme to defraud the NWCDC of his honest services and the NWCDC’s money and property by accepting and agreeing to accept bribes and kickbacks from certain NWCDC contractors, which were financed at least in part through the contractors’ fraudulent padding of invoices to the NWCDC.
Brashear admitted taking payments from James Porter, a contractor who pleaded guilty in January 2015 to conspiracy to defraud the NWCDC of honest services, money and property through the use of interstate wire transmissions, as well as tax evasion for his role in the kickback scheme. The roofing contractor referred to in Count 1 of the information, Giacomo “Jack” DeRosa, was charged in a six-count fraud and money laundering indictment in December 2014 for his role in passing kickbacks to Bernard, which were shared, in part, with Brashear.
Brashear also admitted making and subscribing a U.S. Individual Income Tax Return, Form 1040, for tax year 2012, signed and filed with the IRS under penalty of perjury, which she did not believe to be true and correct, including approximately $316,000 in unreported income that she received through the kickback payments.
In addition to the prison term, Judge Linares sentenced Brashear to three years of supervised release and ordered her to pay $1.3 million in restitution.
On July 13, 2017, Judge Linares sentenced Bernard to eight years in prison for his role in the kickback scheme and for filing false tax returns. DeRosa was sentenced on Oct. 25, 2016, to six months in prison. On July 20, 2017, Porter was sentenced to two years in prison for his role in the scheme.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; IRS – Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi, as well as criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s sentencing. Acting U.S. Attorney Fitzpatrick also thanked the N.J. Office of the State Comptroller, under the direction of State Comptroller Philip James Degnan, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Jacques Pierre and Leslie Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Michael Baldassare Esq., Newark
Former Clinical Psychologist Sentenced to 25 Years in Prison for Role in $550 Million Social Security Fraud SchemeRead the Press Release
A former Kentucky clinical psychologist was sentenced today to 25 years in prison for his role in a scheme to fraudulently obtain more than $550 million in federal disability payments from the Social Security Administration (SSA) for thousands of claimants.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division, Special Agent in Charge Amy S. Hess of the FBI’s Louisville Field Division, Special Agent in Charge Tracey D. Montaño of Internal Revenue Service Criminal Investigation (IRS-CI) Nashville Field Office and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.
Alfred Bradley Adkins, 46, of Pikeville, Kentucky, was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky, who also ordered Adkins to pay restitution of over $93 million to the SSA and HHS. Adkins was found guilty following a six-day trial in June 2017 of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements.
According to trial evidence, beginning in 2004, David Black Daugherty, an SSA administrative law judge assigned to the SSA Huntington, West Virginia, hearing office, sought out pending disability cases in which Kentucky attorney Eric Christopher Conn represented claimants and often reassigned those cases to himself. Daugherty then contacted Conn and identified the cases he intended to decide the following month and further solicited Conn to provide either physical or mental medical documentation supporting disability determinations, whether or not the claimants were actually disabled. When mental medical documentation was requested, Conn solicited Adkins to sign medical evaluation forms that Conn had previously prepared. Without first reviewing these forms, Adkins signed them; Conn subsequently forwarded the forms to the SSA, primarily to Daugherty, in support of disability determinations. Conn, in turn, paid Daugherty more than $609,000 for granting benefits in his cases, and almost $200,000 to Adkins for signing the fraudulent forms. For his part, Conn received more than $7 million in related attorney’s fees.
As a result of the scheme, Adkins, Conn, Daugherty and others obligated the SSA to pay more than $550 million in lifetime benefits to claimants based upon cases Daugherty approved for which he received payment from Conn.
Adkins was indicted last year, along with Conn and Daugherty. The defendants were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme. Daugherty pleaded guilty in May 2017 to a two-count information charging him with receiving illegal gratuities, and was sentenced on August 25, to 4 years in prison.
Conn pleaded guilty on March 24, to a two-count information charging him with theft of government money and paying illegal gratuities, and was sentenced on July 14 to 12 years in prison. Conn subsequently absconded from electronic monitoring on June 2, and is considered a fugitive. Conn remains charged under the original indictment.
The FBI is offering a reward of up to $20,000 for information leading to the arrest of Eric Christopher Conn. Anyone with information relating to Conn’s whereabouts should contact their local FBI office or the nearest American Embassy or Consulate.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The SSA-OIG, FBI, IRS-CI and HHS-OIG investigated the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorney Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with previous co-counsel including Assistant U.S. Attorney Trey Alford of the Western District of Missouri and Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Former Clerk in Orange County Superior Court Sentenced to over 11 Years in Federal Prison for Racketeering Offense Stemming from Bribery Scheme to ‘Fix’ Criminal Cases and Traffic ChargesRead the Press Release
SANTA ANA, California – A former clerk of the Orange County Superior Court was sentenced today to 135 months in federal prison for orchestrating a scheme in which he was paid approximately $420,000 dollars in bribes to “fix” criminal cases and traffic offenses on terms favorable to hundreds of defendants without the knowledge of prosecutors or judges.
Jose Lopez Jr., 36, of Anaheim, was sentenced this morning after pleading guilty in March to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO).
Lopez was sentenced by United States District Judge Josephine L. Staton, who said Lopez created, led and profited from the scheme.
“This [criminal conduct] was not an aberration from his character – this was his character,” the judge said.
Lopez admitted that he was at the center of a scheme in which bribes as high as $8,000 were paid to co-conspirators to fraudulently resolve cases for hundreds of defendants. The co-conspirators were middlemen who recruited individuals with pending cases to pay money that was given to Lopez to resolve their cases without the authorization of the court.
“People who were facing their second drunk driving offense were able to bribe their way out of mandatory jail sentences,” said Acting United States Attorney Sandra R. Brown. “Mr. Lopez led a long-running scheme that brought him well over $400,000 and caused untold damage to the operations and reputation of the criminal justice system in Orange County.”
According to court documents, Lopez improperly resolved approximately 1,034 cases, including 69 misdemeanor driving under the influence cases, 160 other misdemeanor cases and 805 traffic-related infraction cases.
Over the course of more than five years, Lopez “resolved” cases by entering information into the court’s computers to make it appear that a defendant had pleaded guilty, paid required fees or had performed community service. In some cases, Lopez fraudulently created records that made it appear drunk driving charges had been dismissed or defendants had served mandatory jail time.
In addition to taking the bribes and falsifying court records, Lopez forged the signature of a prosecutor with the Orange County District Attorney’s Office.
The conspiracy ended in the spring of 2015 when the Orange County Superior Court learned about the misconduct and took steps to reopen the cases that Lopez tampered with.
“Because of [Lopez]’s corrupt actions, the Orange County Superior Court audited each and every case that [Lopez] handled,” prosecutors wrote in a sentencing memorandum filed with the court. “The state court recalled the cases where fraud was found to restore the integrity of its records.” According to a victim impact statement submitted by the Orange County Superior Court, Lopez’s corruption scheme cost the Orange County Superior Court about $170,000 to clean up.
Lopez used the money he received as part of the scheme to pay for, among other things, international vacations, trips to Las Vegas and the opening of a restaurant in Garden Grove.
“Defendant Lopez was entrusted with protecting the interests of justice but instead made a lucrative income operating an underground business for clients seeking a pass on criminal activity,” said Danny Kennedy, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The successful investigation and prosecution of Mr. Lopez and his many co-conspirators is a result of a collaborative effort by multiple agencies and should serve as a warning to public officials who use their access to benefit personally.”
“Mr. Lopez used his public position of trust to enrich himself and undermined public safety,” stated IRS Criminal Investigation’s Acting Special Agent in Charge Aimee Schabilion. “IRS Criminal Investigation will continue to use our financial investigative expertise to combat public corruption and hold officers of the court accountable for their actions.”
Lopez is one of a dozen defendants who have been convicted of participating in the racketeering conspiracy. The other 10 defendants who have pleaded guilty before Judge Staton are:
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Ricardo Quinones, 33, of Santa Ana, who was sentenced to 15 months in federal prison;
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Juan C. Rosas Santillana, 33, of Chino Hills, who is scheduled to be sentenced on October 13;
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Ramon Salvador Vasquez, 28, of Santa Ana, who was sentenced to two years in prison;
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Manuel Galindo Jr., 27, of Santa Ana, who was sentenced to one year and one day in prison;
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Gibram Rene Lopez, also known as “Ivan,” 27, of Anaheim, who was also sentenced today to 15 months in prison;
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Agustin Sanchez Jr., 33, of Santa Ana, who was sentenced to one year and one day in prison;
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Luis Alberto Flores Guillen, also known as “Bills,” 27, of Santa Ana, who was sentenced last Friday to 10 months (five months in jail and five months of home confinement);
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Oscar Centeno, also known as “Mosquito,” 27, of Santa Ana, who is scheduled to be sentenced on November 17;
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Jeff Reynes Fernandez, also known as “Lean,” 25, of Fullerton, who was sentenced last Friday to one year and one day in prison ; and
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Jesus Saldana, 29, of Garden Grove, who was sentenced to 10 months (five months in jail and five months of home confinement).
The twelfth defendant, Javed Asefi, also known as “Joey,” 44, of Ladera Ranch, was found guilty by a federal jury earlier this month and is scheduled to be sentenced on December 8.
Prior to the 12-defendant indictment being returned by a federal grand jury last fall, three other recruiters pleaded guilty to federal bribery charges, including Rebeca Sarai Rosell, who worked at a Santa Ana bail bonds company and funneled a bribe to Lopez so a second-time drunk driving offender could avoid serving his mandatory 60-day jail sentence.
This case was investigated by special agents with the Federal Bureau of Investigation and IRS Criminal Investigation.
This case was prosecuted by Assistant United States Attorney Vib Mittal of the Santa Ana Branch Office.
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Follow the U.S. Attorney's Office on TwitterRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that the U.S. Attorney’s Office for the District of Maine launched its official Twitter account with the aim of increasing the accessibility of news and information.
Members of the public and media can now follow https://twitter.com/USAO_ME on Twitter, a social media, microblogging service which limits text messages to 140 characters.
Florida Return Preparers Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
Two Broward County, Florida tax return preparers were sentenced to prison today for conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
Luczor Fertilien, 39, was sentenced to 30 months in prison and David Joseph, 37, was sentenced to 24 months in prison.
According to documents and information provided to the court, Fertilien, Joseph and Frantz Petit-Dos owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc. From approximately 2010 through 2016, Fertilien, Joseph and Petit-Dos filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals, whose identities were stolen, as dependents. Fertilien, Joseph and Petit-Dos did not report the illegal proceeds they received from this scheme on their personal tax returns. The court found that Fertilien and Joseph caused a tax loss of more than $1 million.
In addition to the term of prison imposed, U.S. District Judge William P. Dimitrouleas ordered Fertilien and Joseph to each serve three years of supervised release and ordered Fertilien to pay $$1,038,129 in restitution to the IRS and ordered Joseph to pay $1,289,351 in restitution to the IRS. Fertilien, Joseph and Petit-Dos previously pleaded guilty to conspiring to defraud the United States and filing fraudulent tax returns. Petit-Dos is scheduled to be sentenced on Oct. 6.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Florida Return Preparers Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
Two Broward County, Florida tax return preparers were sentenced to prison today for conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Luczor Fertilien, 39, was sentenced to 30 months in prison and David Joseph, 37, was sentenced to 24 months in prison.
According to documents and information provided to the court, Fertilien, Joseph and Frantz Petit-Dos owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc. From approximately 2010 through 2016, Fertilien, Joseph and Petit-Dos filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals, whose identities were stolen, as dependents. Fertilien, Joseph and Petit-Dos did not report the illegal proceeds they received from this scheme on their personal tax returns. The court found that Fertilien and Joseph caused a tax loss of more than $1 million.
In addition to the term of prison imposed, U.S. District Judge William P. Dimitrouleas ordered Fertilien and Joseph to each serve three years of supervised release and ordered Fertilien to pay $$1,038,129 in restitution to the IRS and ordered Joseph to pay $1,289,351 in restitution to the IRS. Fertilien, Joseph and Petit-Dos previously pleaded guilty to conspiring to defraud the United States and filing fraudulent tax returns. Petit-Dos is scheduled to be sentenced on Oct. 6.
Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Florida Resident Sentenced to Prison for Preparing Fraudulent Tax ReturnsRead the Press Release
A Florida resident was sentenced today in federal court in White Plains, New York to 18 months in prison, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joon H. Kim for the Southern District of New York.
According to documents filed with the court, from February 2010 through March 2011, Damyon Shuler, 47, approached relatives and others and told them that he could claim slave reparations on their behalf by filing tax returns with the Internal Revenue Service (IRS), for which he charged a $4,000 to $5,000 fee. Shuler then filed 30 returns with the IRS on behalf of other taxpayers, claiming bogus refunds of between $48,184 and $61,300 on each return. To generate the fraudulent refunds, Shuler reported fake capital gains income and taxes paid on that income in the exact same amount. He also attached to each return a form falsely reporting that a Treasury Department office or program identified as “Overpayment of Black Invest Taxes” had paid the taxes to the IRS. To conceal that he prepared these returns, Shuler did not list himself as the preparer. Shuler also filed a fraudulent 2009 income tax return for himself claiming a refund of $46,685 based on the same scheme. In total, Shuler’s fraudulent refund scheme led to losses of more than $1.2 million.
In addition to the term of prison imposed, U.S. District Court Judge Nelson S. Roman ordered Shuler to serve one year of supervised release and to pay restitution to the IRS in the amount of $1.18 million. Shuler pleaded guilty in April to filing his own fraudulent return and filing a fraudulent return on behalf of another taxpayer.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Kim thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Olga Zverovich and Assistant Chief Andrew Kameros of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Florida Resident Sentenced to Prison for Preparing Fraudulent Tax ReturnsRead the Press Release
Joon H. Kim, the Acting United States for the Southern District of New York, and Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, announced that DAMYON SHULER was sentenced today in White Plains federal court to 18 months in prison for filing false tax returns. SHULER pled guilty in April before U.S. District Court Judge Nelson S. Román, who also imposed today’s sentence.
According to documents filed with the court, from February 2010 through March 2011, SHULER, 47, of Orange City, Florida, approached relatives and others and told them that he could claim slave reparations on their behalf by filing tax returns with the Internal Revenue Service (IRS), for which he charged a $4,000 to $5,000 fee. SHULER then filed 30 returns with the IRS on behalf of other taxpayers, claiming bogus refunds of between $48,184 and $61,300 on each return.
To generate the fraudulent refunds, SHULER reported fake capital gains income and taxes paid on that income in the exact same amount. He also attached to each return a form falsely reporting that a Treasury Department office or program identified as “Overpayment of Black Invest Taxes” had paid the taxes to the IRS. To conceal that he prepared these returns, SHULER did not list himself as the preparer. SHULER also filed a fraudulent 2009 income tax return for himself claiming a refund of $46,685 based on the same scheme. In total, SHULER’s fraudulent refund scheme led to losses of more than $1.2 million.
In addition to the term of prison imposed, U.S. District Court Judge Nelson S. Román ordered SHULER to serve one year of supervised release and to pay restitution to the IRS in the amount of $1,180,150.
Mr. Kim thanked IRS Criminal Investigation for its work on the investigation.
Assistant U.S. Attorney Olga Zverovich of the Office’s White Plains Division and Assistant Chief Andrew Kameros of the Tax Division are in charge of the prosecution.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Five Alleged Members and Associates of Bloods Gang Indicted for Federal Racketeering and Other Related OffensesRead the Press Release
WASHINGTON - Five alleged members and associates of the Black Mob Gangstas/Donald Gee Family (BMG/DGF), a set of the Bloods streeg gang, have been indicted in a superseding indictment returned by a federal grand jury in Raleigh, North Carolina, for various gang-related crimes, including conspiracy to participate in racketeering, murder, witness tampering and related offenses. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department's Criminal Division, U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina, Special Agent in Charge John A. Strong of the FBI North Carolina Field Office and Chief Cassandra Deck-Brown of the Raleigh Police Department made the announcement.
Demetrice Regus Devine aka Respect, 34, of Raleigh; Dontaous Demond Devine aka Scooch and Boochie, 28, of Raleigh; Demetrius Deshaun Toney aka Meat, 24, of Raleigh; Brandon Jowan Mangum aka B-Easy, 28, of Knightdale, North Carolina; and Shaiona Marie Smith aka Slyfox, 22, of Raleigh, were charged in a 12-count superseding indictment returned on September 21, in U.S. District Court for the Eastern District of North Carolina. Four of the defendants charged in the indictment are in custody.
According to the indictment, the BMG/DGF is a set of the Bloods, a violent street gang with members operating in Raleigh, including the Haywood Street area, since the early 2000s. The indictment alleges that the BMG/DGF Bloods have a detailed hierarchical structure. Senior leadership, including Demetrice Regus Devine and Dontaous Demond Devine, regularly conducted formal meetings, collected dues from the rank and file members, and assaulted members who failed to pay dues or follow orders. Gang members earned money for their dues through various criminal activities, including robberies, fraud schemes and drug distribution. BMG/DGF members also committed various acts of violence in furtherance of the gang’s activities, including murder, attempted murder and assaults.
The indictment charges Demetrice Regus Devine, Dontaous Demond Devine, Toney and Mangum with conspiracy to participate in the racketeering activities of BMG/DGF Bloods and conspiracy to distribute narcotics. Demetrice Regus Devine and Dontaous Demond Devine are also each charged with one count of murder in aid of racketeering and related offenses, among other crimes.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
FBI and the Raleigh Police Department investigated the case. Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina and Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
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Five Alleged Members and Associates of Bloods Gang Indicted for Federal Racketeering and Other Related OffensesRead the Press Release
Five alleged members and associates of the Black Mob Gangstas/Donald Gee Family (BMG/DGF), a set of the Bloods street gang, have been indicted in a superseding indictment returned by a federal grand jury in Raleigh, North Carolina, for various gang-related crimes, including conspiracy to participate in racketeering, murder, witness tampering and related offenses. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina, Special Agent in Charge John A. Strong of the FBI North Carolina Field Office and Chief Cassandra Deck-Brown of the Raleigh Police Department made the announcement.
Demetrice Regus Devine aka Respect, 34, of Raleigh; Dontaous Demond Devine aka Scooch and Boochie, 28, of Raleigh; Demetrius Deshaun Toney aka Meat, 24, of Raleigh; Brandon Jowan Mangum aka B-Easy, 28, of Knightdale, North Carolina; and Shaiona Marie Smith aka Slyfox, 22, of Raleigh, were charged in a 12-count superseding indictment returned on September 21, in U.S. District Court for the Eastern District of North Carolina. Four of the defendants charged in the indictment are in custody.
According to the indictment, the BMG/DGF is a set of the Bloods, a violent street gang with members operating in Raleigh, including the Haywood Street area, since the early 2000s. The indictment alleges that the BMG/DGF Bloods have a detailed hierarchical structure. Senior leadership, including Demetrice Regus Devine and Dontaous Demond Devine, regularly conducted formal meetings, collected dues from the rank and file members, and assaulted members who failed to pay dues or follow orders. Gang members earned money for their dues through various criminal activities, including robberies, fraud schemes and drug distribution. BMG/DGF members also committed various acts of violence in furtherance of the gang’s activities, including murder, attempted murder and assaults.
The indictment charges Demetrice Regus Devine, Dontaous Demond Devine, Toney and Mangum with conspiracy to participate in the racketeering activities of BMG/DGF Bloods and conspiracy to distribute narcotics. Demetrice Regus Devine and Dontaous Demond Devine are also each charged with one count of murder in aid of racketeering and related offenses, among other crimes.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
FBI and the Raleigh Police Department investigated the case. Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina and Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Federal Jury Convicts Former Substitute Teacher and Private Tutor of Distribution, Receipt and Possession of Child PornographyRead the Press Release
Assistant U. S. Attorneys Alessandra P. Serano (619) 546-8104 or Connie V. Wu (619) 546-8592
NEWS RELEASE SUMMARY – September 21, 2017
SAN DIEGO – A federal jury yesterday convicted Marlin Lee Gougher, a former substitute teacher in the Temecula School District and private tutor, of three counts of distribution, receipt and possession of child pornography.
Gougher possessed two laptop computers with over 300 videos of child pornography, some of which depicted children as young as four years of age. The FBI executed the search warrant of his Oceanside apartment in January 2013.
Gougher, who elected to appear in court wearing a prison issued orange jumpsuit, testified on his own behalf. However, all of the testimony was stricken by United States District Court Judge William Q. Hayes as being non-responsive to any question posed.
“The jury has recognized the defendant for who he is – every parent’s nightmare,” said Acting U.S. Attorney Alana W. Robinson. “This trusted teacher and tutor with direct access to children was exploiting young victims in the worst way. I consider protecting the well-being of children to be our highest calling as prosecutors.”
“Each image Mr. Gougher possessed represented the victimization of a child. This case is particularly disturbing given the defendant’s former position as a teacher and tutor.” said FBI Special Agent in Charge Eric S. Birnbaum. “We hope this jury conviction sends a clear message to anyone involved in the online sexual exploitation of a child: the FBI will not tolerate the victimization and destruction of our children’s future and will remain vigilant and committed to removing sexual predators from our children’s lives.”
DEFENDANT Case Number 14cr0635-WQH
Marlin Lee Gougher Age: 59 Oceanside, CA
SUMMARY OF CHARGES
Distribution and Receipt of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2252(a)(2)
Maximum penalty: 20 years’ imprisonment with a mandatory minimum sentence of 5 years. Lifetime of supervised release
Possession of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2252(a)(4)
Maximum penalty: 20 years’ imprisonment. Lifetime of supervised release
AGENCY
Federal Bureau of Investigation
FCI-Berlin Inmate Sentenced to Five Months in Prison for Attempting to Obtain Controlled DrugRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that Dieuny Pasius, 26, an inmate at the Federal Correctional Institution, Berlin, New Hampshire, was sentenced to five months in prison for attempting to obtain a controlled substance.
Statements made during the court proceedings established that Pasius wrote a letter to an individual that contained a coded message concerning a scheme to sneak “Flakka” into the prison. Flakka is a slang term for Alpha-PVP, an illegal synthetic cathinone drug. Pasius’ letter instructed the intended recipient to obtain a quantity of Flakka, dilute the drug in a liquid, spread the liquid on sheets of paper, and let them dry. The recipient was then supposed to write a letter to Pasius using the treated sheets of paper. Pasius indicated that he could sell the drug soaked papers for $600 each in the prison. A staff member at FCI-Berlin intercepted the letter before it could be sent out and decoded it.
Pasius previously pleaded guilty on June 6, 2017. His sentence for this offense will be added on to the sentence that he is already serving.
The case was investigated by the staff of the Bureau of Prisons. It was prosecuted by Assistant U.S. Attorney Donald Feith.
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Endicott Man Convicted for Sexual Exploitation of Two ChildrenRead the Press Release
BINGHAMTON, NEW YORK – Michael Gumaer, 50, of Endicott, New York, was convicted yesterday of all eight felony counts of an indictment charging him with the sexual exploitation of two children. The verdict came at the conclusion of a four-day jury trial in Binghamton, New York, announced Acting United States Attorney Grant C. Jaquith and Vadim Thomas, Special Agent in Charge of the FBI Albany Field office.
The evidence at trial established that Gumaer sexually exploited two minor children at his home in Endicott, New York. Upon discovery of his offenses, the defendant fled for two weeks until his arrest by the Endicott Police Department on September 18, 2016. Upon being apprehended, he was subsequently interviewed and confessed to FBI Agents who had seized his electronic media that contained images documenting his sexual exploitation of the two victims.
Sentencing is scheduled for January 26, 2018 in Binghamton, New York. On Counts 1-4 charging sexual exploitation of a child, the defendant faces a minimum 15 years and a maximum sentence of up to 30 years in prison. On Counts 5 and 6, charging receipt and transportation of child pornography, the defendant faces a minimum sentence of 5 years and a maximum sentence of 20 years in prison. On counts 7 and 8, charging possession of child pornography that involved an image of a prepubescent minor, the defendant faces a maximum sentence of up to 20 years in prison. Gumaer could be sentenced to a term of supervised release of up to life for these convictions and a fine of up to $250,000 on each count. The Court has discretion to sentence the defendant either consecutively or concurrently as to each count of conviction. Michael Gumaer will also be required to register as sex offender.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and the Endicott Police Department, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Eastern Panhandle woman admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Kearneysville, West Virginia woman has admitted to distributing cocaine, Acting United States Attorney Betsy Steinfeld Jividen announced.
Jennifer Gibbs, age 31, pled guilty to one count of “Distribution of a Controlled Substance.” Gibbs admitted to selling cocaine in November 2016 in Jefferson County, West Virginia.
Gibbs 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.Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Drug Maker Aegerion Agrees to Plead Guilty; Will Pay More Than $35 Million to Resolve Criminal Charges and Civil False Claims AllegationsRead the Press Release
Aegerion Pharmaceuticals Inc., a Cambridge, Massachusetts-based subsidiary of Novelion Therapeutics Inc., has agreed to plead guilty to charges relating to its prescription drug, Juxtapid, the Justice Department announced today.
As charged in a criminal information filed today, Aegerion introduced Juxtapid into interstate commerce that was misbranded because, among other things, Aegerion failed to comply with a Risk Evaluation and Mitigation Strategy (REMS). The resolution also includes a deferred prosecution agreement relating to criminal liability under the Health Insurance Portability and Accountability Act of 1996 (HIPAA). In addition, Aegerion has agreed to settle allegations that it caused false claims to be submitted to federal health care programs for Juxtapid. Aegerion has agreed to pay more than $35 million to resolve criminal and civil liability arising from these matters. Aegerion has also agreed to enter into a civil consent decree of permanent injunction aimed at preventing future violations of the Federal Food, Drug, and Cosmetic Act (FDCA).
“Today’s settlement shows that the government will continue to hold accountable drug companies that violate laws designed to protect the health and safety of patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Aegerion has agreed to plead guilty to breaking the law. The Justice Department will continue to ensure that taxpayers do not foot the bill when such conduct occurs.”
In a criminal information filed on Sept. 22 in the District of Massachusetts, the United States charged that, from December 2012 to December 2015, Aegerion introduced into interstate commerce Juxtapid, a drug that was misbranded under the FDCA. During this time period, Juxtapid was approved by the U.S. Food and Drug Administration (FDA) to treat patients with homozygous familial hypercholesterolemia (HoFH), a rare disorder, inherited from both parents, that prevents the removal of LDL-C, often called the “bad” cholesterol, from the blood, causing abnormally high levels of circulating LDL-C. The Juxtapid label carried a black box warning that Juxtapid may cause liver toxicity, a serious side effect of using the drug, and the label also warned that Juxtapid may cause gastrointestinal adverse reactions. FDA required a REMS, which is a risk management plan deemed necessary to ensure that a drug’s benefits outweigh its risks, as part of Juxtapid’s approval. The specific purpose of the Juxtapid REMS was to educate prescribers about the risks of liver toxicity and to restrict access to Juxtapid only to those patients with a clinical or laboratory diagnosis consistent with HoFH.
The information alleges that during the relevant time period, Aegerion failed to give health care providers complete and accurate information about HoFH and how to properly diagnose it, and that Aegerion also filed a misleading REMS assessment report. According to the information, Aegerion therefore failed to comply with the required elements under the REMS to assure safe use of Juxtapid, in violation of the FDCA. The information further alleges that Aegerion management and sales personnel distributed Juxtapid not only for the treatment of HoFH, but also as a treatment for high cholesterol generally, without adequate directions for such use. Under the terms of a plea agreement, Aegerion has agreed to plead guilty to these charges and pay a criminal fine and forfeiture of $7.2 million.
In a deferred prosecution agreement to resolve a felony charge that Aegerion conspired to violate HIPAA, 42 U.S.C. §§ 1320d-6(a) and 1320-6(b)(3), Aegerion admitted that it conspired to obtain patients’ personally identifiable health information, without patient authorization, for commercial gain. Under the terms of the deferred prosecution agreement, Aegerion will implement enhanced compliance provisions, including periodic certifications to the government concerning its implementation of those provisions.
Under the civil false claims settlement, Aegerion will pay $28.8 million over three years to resolve federal and state civil liability for causing false claims for Juxtapid to be submitted to government health care programs (Medicare, Medicaid, and TRICARE) arising from its promotion of Juxtapid for patients without a diagnosis of, or consistent with, HoFH; false and misleading statements to doctors that the use of Juxtapid was appropriate in patients with symptoms including high cholesterol, irrespective of whether such patients had a diagnosis of HoFH and despite counter-indications to a diagnosis of HoFH; and alteration or falsification of statements of medical necessity and prior authorizations that were submitted to federal health care programs. The government further alleged that Aegerion defrayed patients’ copayment obligations for Juxtapid, in violation of the Anti-Kickback Statute (AKS), by funneling funds through Patient Services Inc. (PSI), an entity that claimed to be a non-profit patient assistance organization. The federal share of the $28.8 million civil false claims settlement is $26.1 million and the state portion is $2.7 million.
“Aegerion put profits over patient safety and enriched itself at taxpayer expense,” said Acting U.S. Attorney William D. Weinreb for the District of Massachusetts. “Our Office is committed to protecting patient safety and the integrity of federal health care programs, and we will continue to use our criminal and civil authority to ensure that drug companies play by the rules that protect the public, ensure quality of care, and preserve patient privacy.”
As part of the resolution, Aegerion has agreed to enter into a separate civil consent decree to resolve civil liability under the FDCA in connection with its failure to comply with the requirements of the Juxtapid REMS program and its distribution of Juxtapid with labeling that lacked adequate directions for all of Juxtapid’s intended uses. Aegerion also entered into a Corporate Integrity Agreement (CIA) with the HHS-OIG. The five-year CIA requires, among other things, that Aegerion implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs comply with the law. In addition, the CIA requires reviews by an independent review organization and compliance-related certifications from company executives and Board members.
“We sometimes require companies to put in place certain measures to more closely manage a drug’s risks when we don’t believe a medicine’s benefits would outweigh its side effects without these risk mitigation strategies,” said FDA Commissioner Scott Gottlieb, M.D. “This might include requiring prescribers to undergo certain training on a drug’s risks, or having providers take steps to more closely monitor patients. By failing to follow the safety requirements that Aegerion had agreed to, the company put patients’ lives at risk and didn’t honor the safety commitments they made as a condition of gaining approval for their drug. This is unacceptable. We will continue to pursue those who skirt the law, and flout patient safety and other post-market commitments, using all of the enforcement tools available to us. Post-market safety requirements are a key element of FDA’s public health protections and we will ensure that they are fulfilled.”
“Today’s plea and settlement with Aegerion shows how the government will hold the pharmaceutical industry accountable for violating important FDA and privacy rules that are intended to keep patients safe and ensure the confidentiality of their information,” said Special Agent in Charge Harold H. Shaw of the FBI, Boston Field Division. “The FBI will continue to investigate companies like Aegerion that profit from exploiting patients who are searching for treatments for serious medical conditions.”
“Our corporate integrity agreement increases individual accountability for board members and company executives and it requires Aegerion to strengthen controls around promotional activities and other interactions with health care providers,” said Chief Counsel to the U.S. Department of Health and Human Services (HHS) Inspector General Gregory E. Demske. “Importantly, the CIA also requires that Aegerion implement controls and monitoring designed to ensure true independence from any charity patient assistance programs to which it donates in the future.”
“Today’s agreement demonstrates that we will not allow pharmaceutical manufacturers to provide the medical community with false and incomplete information about their products, thereby jeopardizing the health and safety of our citizens,” said Special Agent in Charge Phillip Coyne for the HHS Office of Inspector General (OIG). “Nor will we allow corporations to profit at the expense of patient care and their personal information.”
The civil false claims settlement resolves a lawsuit filed by Michele Clarke, Tricia Mullins, and Kristi Winger Szudlo, former employees of Aegerion, under the qui tam or whistleblower, provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suit was filed in the District of Massachusetts and is captioned United States ex rel. Clarke, et al. v. Aegerion Pharmaceuticals, Inc., et al., No. 13-CV-11785 (D. Mass.). Relators will receive $4.7 million from the federal proceeds of the civil false claims settlement.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
This resolution was the result of a coordinated effort by the U.S. Attorney’s Office for the District of Massachusetts, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, the FDA’s Office of Chief Counsel and Office of Criminal Investigations, the FBI, HHS-OIG, and the Department of Labor’s Employee Benefits Security Administration.
Except as to conduct admitted as part of the guilty plea and deferred prosecution agreement, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Drug Maker Aegerion Agrees to Plead Guilty and Pay $35 Million to Resolve Criminal Charges and False Claims Act AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that Aegerion Pharmaceuticals, Inc, a Cambridge, Massachusetts-based subsidiary of Novelion Therapeutics Inc., has agreed to pay over $35 million to resolve criminal and civil charges relating to its marketing of Juxtapid, a drug that is labeled with a warning that it may cause serious liver and stomach problems and that is approved to treat high cholesterol only for patients with a rare genetic disease called homozygous familial hypercholesterolemia (HoFH).
“Aegerion put profits over patient safety and enriched itself at taxpayer expense,” said Acting U.S. Attorney William D. Weinreb. “Our Office is committed to protecting patient safety and the integrity of federal health care programs, and we will continue to use our criminal and civil authority to ensure that drug companies play by the rules that protect the public, ensure quality of care, and preserve patient privacy.”
“Today’s settlement shows that the government will continue to hold accountable drug companies that violate laws designed to protect the health and safety of patients,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “Aegerion has agreed to plead guilty to breaking the law. The Justice Department will continue to ensure that taxpayers do not foot the bill when such conduct occurs.”
In a criminal Information filed today, the United States charged that, from December 2012 to December 2015, Aegerion violated the Federal Food, Drug, and Cosmetic Act in connection with its sale and promotion of the drug Juxtapid. Aegerion management and sales personnel distributed Juxtapid not only for the treatment of HoFH, but also as a treatment for high cholesterol generally, without adequate directions for such use. Furthermore, even though the FDA had approved Juxtapid subject to a Risk Evaluation Mitigation Strategy (REMS) to ensure that prescribers were informed of the drug’s risks and that Juxtapid was prescribed only for patients with a clinical or laboratory diagnosis consistent with HoFH, the Information alleges that, during the relevant time period, Aegerion failed to give health care providers complete and accurate information about the clinical diagnosis of HoFH, therefore failing to comply with the required elements under the REMS to assure safe use of Juxtapid. Under the terms of a plea agreement, Aegerion has agreed to plead guilty to these charges and to pay a criminal fine and forfeiture of $7.2 million.
Today’s resolution includes a deferred prosecution agreement to resolve a felony charge that Aegerion conspired to violate the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Under the terms of the deferred prosecution agreement, Aegerion admitted to facts demonstrating that the company conspired with its sales employees, including senior managers, to obtain patients’ personally identifiable health information, without patient authorization, for commercial gain. Aegerion has agreed to implement enhanced compliance provisions, including periodic certifications to the government concerning its implementation of those provisions.
Under the terms of a civil False Claims Act settlement, Aegerion will pay $28.8 million over three years to resolve allegations that: Aegerion distributed Juxtapid for patients without a diagnosis of, or consistent with, HoFH; Aegerion employees, including senior managers, made false and misleading statements to doctors that the use of Juxtapid was appropriate in patients with high cholesterol, irrespective of whether such patients had a diagnosis of HoFH and despite counter-indications to a diagnosis of HoFH; Aegerion employees at times altered or falsified statements of medical necessity and prior authorizations that were submitted to federal health care programs; and Aegerion defrayed patients’ copayment obligations for Juxtapid, in violation of the Anti-Kickback Statute, by funneling funds through Patient Services, Inc., an entity that promoted its ability to create a “reimbursement vehicle” for Aegerion from patients who otherwise would have received free drug.
As part of the resolution, Aegerion has also agreed to enter into a separate civil consent decree with the FDA to resolve civil liability under the FDCA for its distribution of Juxtapid that was misbranded because Aegerion failed to comply with the requirements of the Juxtapid REMS program and because Juxtapid’s labeling lacked adequate directions for all of Juxtapid’s intended uses.. Aegerion also entered into a Corporate Integrity Agreement (CIA) with the Office of Inspector General of the Department of Health and Human Services. The five-year CIA requires, among other things, that Aegerion implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization and compliance-related certifications from company executives and Board members.
“Today’s settlement with Aegerion shows how the government will hold the pharmaceutical industry accountable for violating important FDA and privacy rules that are intended to keep patients safe and ensure the confidentiality of their information,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The FBI will continue to investigate companies like Aegerion that profit from exploiting patients who are searching for treatments to serious medical conditions.”
“Today’s agreement demonstrates that we will not allow pharmaceutical manufacturers to provide the medical community with false and incomplete information about their products, thereby jeopardizing the health and safety of our citizens,” said Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “Nor will we allow corporations to profit at the expense of patient care and their personal information.”
“Our corporate integrity agreement increases individual accountability for board members and company executives and it requires Aegerion to strengthen controls around promotional activities and other interactions with health care providers,” said Gregory E. Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “Importantly, the CIA also requires that Aegerion implement controls and monitoring designed to ensure true independence from any charity patient assistance programs to which it donates in the future.”
“We sometimes require companies to put in place certain measures to more closely manage a drug’s risks when we don’t believe a medicine’s benefits would outweigh its side effects without these risk mitigation strategies. This might include requiring prescribers to undergo certain training on a drug’s risks, or having providers take steps to more closely monitor patients,” said FDA Commissioner Scott Gottlieb, M.D. “By failing to follow the safety requirements that Aegerion had agreed to, the company put patients’ lives at risk and didn’t honor the safety commitments they made as a condition of gaining approval for their drug. This is unacceptable. We will continue to pursue those who skirt the law, and flout safety patient and other post-market commitments, using all of the enforcement tools available to us. Post-market safety requirements are a key element of FDA’s public health protections and we will ensure that they are fulfilled.”
“By failing to comply with all requirements of FDA’s approval of Juxtapid, including its Risk Evaluation and Mitigation Strategy, Aegerion subjected patients to unnecessary risk” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office. “When a company subverts FDA’s approval conditions, we will pursue and bring them to justice in order to fulfill our mission of protecting the public health.”
“EBSA is very pleased to have had the opportunity to work collaboratively with our law enforcement partners on this important investigation,” said Susan A. Hensley, Regional Director, U. S. Dept. of Labor, Employee Benefits Security Administration, Boston Regional Office. “I commend the exceptional work performed by our investigators and their law enforcement partners. This office will continue to vigorously pursue cases where participants and private sector health benefit plans are victimized by unscrupulous and illegal pharmaceutical sales practices.”
The civil settlement resolves a lawsuit filed by Michele Clarke, Tricia Mullins, and Kristi Winger Szudlo, former employees of Aegerion, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suit was filed in the District of Massachusetts and is captioned United States ex rel. Clarke, et al. v. Aegerion Pharmaceuticals, Inc., et al., No. 13-CV-11785 (D. Mass.). Relators will receive $4.7 million from the proceeds of the federal civil settlement.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services’ Office of Inspector General, the Department of Labor’s Employee Benefits Security Administration, and the FDA. This matter was handled by Assistant U.S. Attorneys Kriss Basil, Young Paik, Sara Bloom and Abraham George of Weinreb’s Office and Trial Attorneys Shannon Pedersen and Holly Snow of the Civil Division’s Consumer Protection Branch and Civil Fraud Section, respectively.
Dominican National Charged with Identity TheftRead the Press Release
BOSTON – A Dominican national was charged yesterday in federal court in Boston with identity theft.
Willy Antonio Hernandez Camilo, 33, a Dominican national residing in Lawrence, was indicted on one count of passport fraud, two counts of misuse of a Social Security number, and two counts of aggravated identity theft.
According to the indictment, Hernandez Camilo purported to be a U.S. citizen in 2014 when he applied for a passport at a Methuen post office. On the passport application, Hernandez Camilo represented the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico as his own and supported the application by presenting a birth certificate and Massachusetts driver’s license in the victim’s name. Court documents further allege that Hernandez Camilo misused a Social Security number and committed aggravated identity theft in connection with a Massachusetts driver’s license renewal application that he submitted in 2016.
The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, one year of supervised release, and a fine of up to $250,000. The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised released, and a fine of up to $250,000. The charge of misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. 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 and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit 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.
District Man Sentenced to 40 Years in Prison for 2014 Slaying in Northeast WashingtonRead the Press Release
WASHINGTON – Jonathan Taylor, 26, of Washington, D.C., was sentenced today to 40 years in prison for his role in a shooting that killed one man and wounded another in Northeast Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Taylor was found guilty by a jury in June 2017 of first-degree murder while armed, assault with intent to kill while armed, and two related firearms offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable José M. Lόpez. Following his prison term, Taylor will be placed on five years of supervised release.
According to the government’s evidence, on Aug. 13, 2014, at approximately 9:30 p.m., Taylor and three unidentified associates drove together in a gold Honda Accord, looking to kill their target, 25-year-old Dexter Motley. They found Mr. Motley standing on a corner near the unit block of 46th Place NE, talking casually to his friends and their neighbors. Taylor and his associates then drove around the block and approached Mr. Motley on foot. One of the four men—the triggerman—walked by Mr. Motley, as if walking leisurely down the sidewalk. The triggerman then pulled out a revolver and fired five shots at close range, including a fatal shot into Mr. Motley’s forehead. Another shot hit one of Mr. Motley’s friends. The friend was able to flee into an alley and survived the attack. The defendants fled. Taylor later was linked to the crime through information tying him to the Honda Accord and other evidence.
In a separate case, Taylor is awaiting trial on second-degree murder while armed and other charges in the July 4, 2015 slaying of Dwayne Dillard. Mr. Dillard, 23, was fatally shot at about 11 p.m. in the 2600 block of Douglass Place SE. Taylor has pled not guilty.
In announcing the sentence, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Park Police. They also acknowledged the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michelle Bradford, Magdalena Acevedo, Christian Natiello, and Michael Spence; Paralegal Specialists Lashone Samuels and Debra Joyner; Victim/Witness Services Coordinators M. Laverne Perry and Tanya Via; Victim/Witness Advocate Marcey Rinker; Investigative Analyst Zachary McMenamin; Litigation Technology Specialist Jeanie Latimore-Brown, and Intern Reed Stadler.
Finally, U.S. Attorney Phillips and Chief Newsham commended the work of Assistant U.S. Attorneys Thomas N. Saunders and Jin Park, who prosecuted the case.
District Man Sentenced to 16 1/2-Year Prison Term for Assaulting and Attempting to Rob Three VictimsRead the Press Release
WASHINGTON – Eric Aguilar-Gamez, 20, of Washington, D.C. was sentenced today to 16 ½ years in prison for assaulting and attempting to rob three young victims at gunpoint, as well as a separate gun offense, U.S. Attorney Channing D. Phillips announced.
Gamez was found guilty by a jury in July 2017, following a trial in the Superior Court of the District of Columbia, of three counts of assault with a dangerous weapon, two counts of assault with intent to commit robbery while armed, and five counts of possession of a firearm during a crime of violence. After the trial, Gamez pled guilty to a separate gun offense for unlawful possession of a firearm, which occurred in April of 2016.
In sentencing Gamez, the Honorable Juliet McKenna noted that in just two years, he had been convicted of five separate offenses, three involving firearms. She also cited the young age of the victims in this case and the seriousness of the offense. Following his prison term, Gamez will be placed on five years of supervised release.
According to the government’s evidence at trial, in the early evening of May 19, 2016, two sisters, ages 16 and 12, were walking in Northwest Washington to a store to meet the 16-year-old’s boyfriend, who was 19 years old. While heading to the store, they noticed a group of men, including Gamez, near the tennis courts of the Fort Stevens Recreation Center. Feeling uncomfortable with the fact that people in this group appeared to be staring at her phone, the 16-year-old asked her boyfriend to walk back home with them.
Just as they were turning onto Whittier Place NW, they heard tires screech behind them and saw a black two-door Honda chasing after them. The three ran as fast as they could, nearly making it to the girls’ home, but Gamez jumped out of the front passenger seat, pulling a black handgun from under his seat. Gamez then lifted the gun, pointing it at the three victims and yelling what appeared to be a gang-related threat. The 19-year-old hopped a fence and ran off. Gamez then looked directly at the girls and demanded their belongings. The 16-year-old threw herself between the gun and her sister and refused to comply with Gamez’s demands. The girls’ mother heard her daughters screaming and opened the door of their home, confronting Gamez before he hopped back in the black two-door Honda and drove away.
Gamez was arrested May 22, 2016.
Unfortunately, this wasn’t the last time the 16-year-old saw Gamez. On Nov. 28, 2016, she was in the basement of the courthouse when she saw Gamez seated across from her. She told him how what he had done had affected her sister. In response, he laughed and said he should have pulled the trigger.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kelly Blakeney, Troy Griffith, Tamaya Reid, and Sharon Newman. Finally, he commended the work of Assistant U.S. Attorneys Allessandra Stewart, Marisa West, and Ethan Carroll who investigated and prosecuted the cases.
District Man Pleads Guilty to Murder Charge in Slaying of His 81-Year-Old MotherRead the Press Release
WASHINGTON – Derek Cook, 52, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed in the killing last month of his 81-year-old mother, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Cook entered the guilty plea in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 20 years in prison. The Honorable Zoe Bush scheduled sentencing for Dec. 1, 2017.
According to a proffer of facts submitted at today’s hearing, on the night of Aug. 12, 2017, Cook was having a conversation with his mother, Ann Alfredia Cook, in the bedroom of their apartment in the 5000 block of Fourth Street NE. Cook began to repeatedly strike his mother with a closed first, and she yelled for help. Cook also struck his mother repeatedly with a wooden stick and an iron, hitting her on various parts of her face and body. At the time of the beating, his mother was unarmed and in bed.
The Metropolitan Police Department (MPD) arrived at the apartment at about 10:45 p.m., and Cook let them into the apartment building. However, he would not let police into the apartment. To gain entry, the police had to ram down the apartment door. After doing so, the police found Ms. Cook, who was severely injured. She was taken to a hospital, where she died later that night. Derek Cook was arrested and has remained in custody ever since.
In announcing the plea, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of Assistant U.S Attorney Thomas N. Saunders, who investigated and prosecuted the matter.
Department of Justice Awards Nearly $59 Million to Combat Opioid Epidemic, Fund Drug CourtsRead the Press Release
The Department of Justice today announced $58.8 million to strengthen drug court programs and address the opioid epidemic nationwide.
In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues. The opioid epidemic, a public health crisis, is also a growing public safety crisis.
“Today, we are facing the deadliest drug crisis in American history,” said Attorney General Jeff Sessions. “These trends are shocking and the numbers tell us a lot– but they aren’t just numbers. They represent moms and dads, brothers and sisters, neighbors and friends. And make no mistake combatting this poison is a top priority for President Trump and his administration, and you can be sure that we are taking action to address it. Today, we are announcing that we will be awarding millions in federal grants to help law enforcement and public health agencies address prescription drug and opioid abuse. This is an urgent problem and we are making it a top priority.”
About $24 million in federal grants will be awarded to 50 cities, counties and public health departments to provide financial and technical assistance to state, local, and tribal governments to create comprehensive diversion and alternatives to incarceration programs for those impacted by the opioid epidemic. These funds, awarded under the Office of Justice Programs’ Bureau of Justice Assistance’s Comprehensive Opioid Abuse Program, also included funds from the Harold Rogers Prescription Drug Monitoring Program. This program helps regulatory, law enforcement, and public health agencies address prescription drug and opioid misuse; reduce crime; and save lives.
An additional $3.1 million will be awarded by the National Institute of Justice for research and evaluation on drugs and crime. The research priorities are heroin and other opioids and synthetic drugs.
The department is also awarding more than $22.2 million to 53 jurisdictions to support the implementation and enhancement of adult drug courts and Veterans Treatment Courts, which serve as “one-stop-shops” to link veterans with services, benefits and program providers, including the Department of Veterans Affairs, Veterans Service Organizations and volunteer veteran mentors.
Specific sites and funds awarded can be found online at: https://go.usa.gov/xRJWE.
The department is also awarding more than $9.5 million under several Office of Juvenile Justice and Delinquency Prevention grant programs, including the Juvenile Drug Treatment Court Grant Program and the Family Drug Court Statewide System Reform Implementation Program. These programs helps jurisdictions build effective family drug treatment courts and ensure current juvenile drug treatment courts follow established guidelines.
Specific sites and funds awarded can be found online at: https://go.usa.gov/xRJDf.
Finally, read more about the importance of these programs in a new blog by OJP Acting Assistant Attorney General Alan R. Hanson online at https://go.usa.gov/xRJBp.
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.Davenport Man Sentenced to Prison for Felon in Possession of FirearmRead the Press Release
DAVENPORT, Iowa - On September 21, 2017, Chief United States District Court Judge John A. Jarvey sentenced Michael Scott Parker, 32, formerly of Davenport, Iowa, to 80 months in prison after pleading guilty to felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Parker was also ordered to serve three years of supervised release and pay $100 to the Crime Victims’ Fund.
On August 28, 2016, Davenport police responded to a disturbance call and encountered Parker, who attempted to flee while in possession of a loaded Taurus .38 caliber revolver.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Davenport Police Department conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Jason T. Griess at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
D. Michael Dunavant Sworn in as United States AttorneyRead the Press Release
D. Michael Dunavant was sworn in September 21, 2017, as the United States Attorney for the Western District of Tennessee. In a brief ceremony, Chief U.S. District Judge S. Thomas Anderson administered the oath of office in Jackson, Tennessee, making Dunavant the 50th person to serve as the chief federal prosecutor for the Western District.
Dunavant was nominated by President Donald Trump on June 12, 2017 and he was confirmed by the United States Senate on September 14, 2017.
"I am extremely humbled to be afforded the opportunity to serve the citizens of the Western District of Tennessee as their top federal-law enforcement officer. This responsibility will not be taken lightly. I, along with the dedicated professionals in the U.S. Attorney’s Office are committed to ensuring a safer community for our citizens in this 22-county district. I want to thank President Trump for his nomination."
Prior to his appointment as U.S. Attorney, Dunavant served as District Attorney General, 25th Judicial District of Tennessee. For eleven years prior to that, he was a partner in the law firm of Carney, Wilder and Dunavant, in Ripley, Tennessee.
Compliance Officer Convicted of Perjury in Investigation of Illegal DumpingRead the Press Release
NEWS RELEASE SUMMARY – September 21, 2017
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
SAN DIEGO – Ronald Fabor, the Operations Safety and Compliance Manager of Diamond Environmental Services, was convicted by a federal jury yesterday of two counts of perjury relating to his testimony before a grand jury.
The grand jury investigation involved allegations that Diamond had unlawfully discharged trucked portable toilet waste into municipal sewer systems at their facilities in violation of federal law. The trial jury found that Fabor falsely testified that the first time he learned that individuals at Diamond were dumping sewage into the municipal sewers (rather than taking it to the designated locations) was the date that federal search warrants were executed at the Diamond locations in San Diego and San Marcos. The jury also convicted Fabor of falsely testifying that he had never personally observed Diamond trucks connected by hoses to the illegal sewer connections at the Diamond facilities.
Fabor was ordered to appear on January 8, 2018,at 9:00 am before the U.S. District Judge Roger T. Benitez for sentencing.
In a related case (17cr1305-BEN), on June 1, 2017, Diamond Environmental Services LP pled guilty to mail fraud, for defrauding various municipalities of revenue relating to the fees for disposal avoided by the unlawful discharges. On that same date, diamond owner Eric De Jong pled guilty to conspiring to violate the Clean Water Act for his role in the dumping. Earlier, on May 24, 2017, Diamond Chief Operating Officer Warren Van Dam had also pled guilty to participating in the same conspiracy. Diamond, De Jong and Van Dam are scheduled to be sentenced by U.S. District Court Judge Benitez on November 13, 2017, at 9:00 am
“Mr. Fabor delivered false testimony to a grand jury about illegal pollution that put public health and safety at risk,” said Jay M. Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “Providing honest testimony is a fundamental necessity of our legal system and is critical to EPA's ability to protect public health and the environment.”
DEFENDANT Criminal Case No 17cr1064-BEN
Ronald B. Fabor Age: 55
San Marcos, California
SUMMARY OF CHARGES
Perjury, 18 U.S.C. § 1621
Maximum penalty: 5 years’ prison and/or a fine of $250,000
AGENCIES
Federal Bureau of Investigation
U.S. Environmental Protection Agency, Criminal Investigation Division
Charlottesville Man Sentenced on Federal Drug ChargeRead the Press Release
Charlottesville, VIRGINIA – A Charlottesville man, who distributed crack cocaine throughout the Charlottesville Region, was sentenced yesterday in the United States District for the Western District of Virginia in Charlottesville, Acting United States Attorney Rick A. Mountcastle announced.
Ricco Jamel Harris, 35, was sentenced yesterday to 14 years in federal prison. Harris previously pleaded guilty to one count of distributing and possessing with the intent to distribute 280 grams or more of cocaine base.
According to evidence previously presented by Assistant United States Attorney Ronald M. Huber, Harris distributed crack cocaine throughout Central Virginia between late 2012 and November 2015. The evidence established that Harris was a major supplier of cocaine in Charlottesville. He also supplied the drug to members of a cocaine distribution ring operating out of the Culpeper area, whose members were previously prosecuted in Federal court.
During the period at issue, agents with the Jefferson Area Drug Task Force [JADE] made a series of controlled buys from Harris and seized over 75 grams of crack cocaine during a traffic stop. Ultimately, it was determined that Harris was responsible for the distribution of over 4 kilograms of crack cocaine between late 2012 and November 2015.
The investigation of the case was conducted by the Jefferson Area Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration and the City of Charlottesville Police Department. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Charles Tan Arrested for Federal Firearms FeloniesRead the Press Release
SYRACUSE, NEW YORK - Charles Tan, 22, of Pittsford, New York, was arrested today in Lewiston, New York, on a federal indictment, as he crossed into the United States from Canada.
The announcement was made by Acting United States Attorney Grant C. Jaquith, Special Agent in Charge Ashan M. Benedict, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Monroe County (New York) Sheriff Patrick O'Flynn.
Tan will appear before a United States Magistrate Judge in Syracuse, New York, at 4 pm on Saturday, September 23, 2017, on an Indictment charging him with one count of Receiving a Firearm and Ammunition with Intent to Commit an Offense, and two counts of Making a False Statement During the Purchase of a Firearm.
Tan faces a maximum term of imprisonment of 10 years on each count charging him with Making a False Statement During the Purchase of a Firearm and a maximum term of imprisonment of 5 years for the charge of Receiving a Firearm and Ammunition with Intent to Commit an Offense. He also faces a maximum fine of $250,000 on each count and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by ATF and the Monroe County, New York, Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Cedar Rapids Man Charged with Distribution, Receipt, and Possession of Child PornographyRead the Press Release
Craig Watters, age 30, of Cedar Rapids, Iowa, has been charged with distribution, receipt, and possession of child pornography. The charges are contained in an Indictment filed on September 14, 2017 in United States District Court in Cedar Rapids.
The Indictment alleges that, in 2014, Watters distributed child pornography, received child pornography, and possessed child pornography on a computer. The Indictment also alleges that Watters was convicted of receipt of child pornography in the Northern District of Iowa in 2009.
If convicted, Watters faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 100 years’ imprisonment, a $750,000 fine, $300 in special assessments, and at least five years and up to life on supervised release following any imprisonment.
Watters appeared on September 20, 2017 in federal court in Cedar Rapids and was held without bond. Watters’s next appearance for trial is set for November 20, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-69.
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Bradenton Man Pleads Guilty to Firearm OffenseRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Luis Quinones (33, Bradenton) has pleaded guilty to being a felon in possession of a firearm. He faces up to 10 years in federal prison. A sentencing date has not yet been set.
According to the
plea agreement , Quinones and two of his associates traveled to a Walmart parking lot for the purpose of robbing a person scheduled to arrive with drugs that had been paid for in advance. Acting on information, law enforcement officers arrived in the parking lot and approached Quinones and his associates’ car. The officers located three firearms in the car, including a Ruger 9mm pistol with a high-capacity magazine in the backseat where Quinones had been sitting.This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Frank Murray.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program — a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Boston Police Sergeant Detective Agrees to Plead Guilty to Making False Statements and Unlawfully Entering Secure Airport AreaRead the Press Release
BOSTON – A Boston Police Sergeant Detective agreed to plead guilty today to repeatedly making false statements so that he could fly armed on personal trips and enable a friend to fly with him without being screened by security personnel at Boston’s Logan International Airport.
Bruce E. Smith, 53, of Randolph, agreed to plead guilty to making false statements to the Transportation Security Administration (TSA) and the Department of Homeland Security, as well as unlawfully entering a secure airport area with intent to evade security requirements. In June 2017, Smith was arrested and charged by criminal complaint.
Smith has been employed with the Boston Police Department since 1989 and is currently a Sergeant Detective assigned to District E-13, Jamaica Plain, as a district detective supervisor. Under the terms of the plea agreement, Smith faces a sentence of six months to one year of probation, with the possibility of home confinement. Smith has also agreed to resign from the Boston Police Department and pay a $7,500 fine.
Between May 2011 and April 2017, Smith flew armed on approximately 28 separate trips departing from Logan Airport even though he was not on official business, which is a violation of federal law. On each of those trips, he falsely claimed to have obtained supervisor approval for his travel. On at least two of them, Smith also escorted or attempted to escort a friend through Logan Airport without security screening. Smith falsely claimed that his friend was a “dignitary” under Smith’s official police escort. When questioned by TSA security personnel as to what type of dignitary his friend was, Smith falsely replied, “I am not at liberty to divulge that information.” In fact, Smith’s friend, who has a criminal record, is not a dignitary, but a mobile HIV clinic operator.
Acting United States Attorney William D. Weinreb; Boston Police Commissioner William Evans; and Mark Tasky, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Washington Field Office, made the announcement today. The investigation was conducted jointly by BPD’s Anti-Corruption Division and DHS-OIG. Assistant U.S. Attorney Zachary R. Hafer of Weinreb’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
Boston Man Pleads Guilty to Robbing Five BanksRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston to robbing five banks throughout April and June 2017.
Thomas W. Nee, 46, pleaded guilty to five counts of bank robbery. U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 9, 2018.
Nee robbed five different banks stealing a total of over $8,200. The robberies occurred at Santander Bank on Commonwealth Avenue on April 21; Citizens Bank on Tremont Street on May 5; Century Bank on State Street on May 8; Randolph Savings Bank on May 22; and Eastern Bank on West Broadway on June 8. Nee committed each of the robberies by handing a teller a note demanding money.
Each count of bank robbery provides for a sentence of no greater than 20 years in prison, three years of supervised released, and a fine of up to $250,000. 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 and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
Big Island Capital Fraudster Pleads Guilty to Million Dollar Ponzi SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of JEREMY RICHARD LUNDIN, 30, for operating a Ponzi scheme through which he stole more than $1 million from individual investors. LUNDIN, who was charged via a criminal information on September 1, 2017, pleaded guilty yesterday before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minn. A sentencing date has not yet been scheduled.
“Jeremy Lundin’s friends and associates gave him hundreds of thousands of dollars based upon outright lies. Mr. Lundin spent their hard-earned money – in some cases, their life savings – to travel, shop, drive luxury cars, and otherwise fund a lifestyle that many of his victims will never enjoy,” said Assistant U.S. Attorney Amber Brennan. “Mr. Lundin has admitted his crime and he will now face the consequences of his criminal actions.”
“IRS Criminal Investigation is committed to help put an end to the criminal behavior of those who prey on investors for their personal financial gain”, stated Hubbard Burgess, IRS Criminal Investigation Special Agent in Charge of the St. Paul Field Office. “The guilty plea of Jeremy Lundin again emphasizes that we and our law enforcement partners will continue our aggressive pursuit of those who defraud and harm investors.”
“Postal Inspectors will continue to protect the integrity of the US Postal Service and aggressively investigate and prosecute those cases where the US Mails are used to defraud individuals of their hard-earned money and property,” said Denver Division INC Nicole Davis. “The U.S. Postal Inspection Service and its law enforcement partners play a critical role in protecting the American consumer from these types of fraudulent schemes.”
According to the defendant’s guilty plea, from approximately December 2014 until May 2017, LUNDIN claimed that he conducted “options trading” through his company Big Island Capital. LUNDIN worked through a network of associates and friends to solicit investors to invest with Big Island Capital by promising those potential investors exponential growth through options trading. LUNDIN solicited more than $1 million from at least 51 investors, but instead of using the funds for options trading, LUNDIN spent investors’ money to fund his and his wife’s lavish lifestyle.
According to the defendant’s guilty plea, as part of the scheme, LUNDIN provided victim investors with written materials relating to his purported investment strategy. Through these materials, LUNDIN claimed that the goal of Big Island Capital was to “generate profits with options trading” and that while he could not “guarantee” an exact percent, he would “shoot for” returns of between 40 percent and 80 percent. LUNDIN also entered into contract agreements with victim investors. These agreements, titled, “Big Island Capital Investment Advisory Agreement,” purported that the assets of Big Island’s account would be held for safekeeping in a brokerage account. LUNDIN regularly represented that the value of the account was several hundred thousand dollars. For example, “Welcome Packet” materials LUNDIN sent to a new victim investor on November 24, 2015, claimed that the firm’s capital was then $730,000 when, in reality, LUNDIN did not even open the brokerage account until December 21, 2015.
According to the defendant’s guilty plea, in order to appear legitimate and promote his scheme, LUNDIN created phony account statements. He also provided victim investors with online access to fictitious quarterly statements and purportedly “up to date” information about the rate of growth and the market value of the accounts, which commonly and falsely showed double-digit gains. As part of the scheme, LUNDIN directed his victim investors to make their checks payable to “Big Island Capital,” he would then deposit those checks into a bank account he had established in the company’s name. Between May 2015 and May 2017, at least $992,000 was deposited into that account. During roughly the same time period, however, LUNDIN transferred $933,950 from the business account directly into his and his wife’s personal checking account. LUNDIN and his wife used the majority of those investor funds on personal expenses including travel, luxury automobiles, a boat, jewelry, retail purchases, and more than $366,000 in credit card payments.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Federal Bureau of Investigation, United States Postal Inspection Service, and Minnesota Department of Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan is prosecuting the case.
Defendant Information:
JEREMY RICHARD LUNDIN, 30
Mound, Minn.
Convicted:
- Mail fraud, 1 count
- Money laundering – transaction involving fraud proceeds, 1 count
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Benton City Man Sentenced to 20 Years in Federal Prison for Production of Child PornographyRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Robert Cody Cameron Genoway, of Benton City, Washington, was sentenced after previously having plead guilty on July 26, 2017, to production of child pornography. United States District Judge Stanley A. Bastian sentenced Genoway to a 20-year term of imprisonment, to be followed by a 30-year term of court supervision after he is released from federal prison. Genoway will also be required to register as a sex offender.
According to information disclosed during court proceedings, in July of 2016, a detective with the Southeast Regional Internet Crimes Against Children Task Force (SER-ICAC) and Homeland Security Investigations (HSI) observed an ad on a well-known website seeking a “petite young teeny bopper” for sexual acts. The detective responded to the ad posing as a thirteen (13) year old minor female. During the course of the communications, Genoway described in graphic detail the manner in which he wished to have sexual intercourse with the purported child, including choking the child for his own sexual pleasure, and made multiple attempts to meet the purported child to commit the described sexual acts in Kennewick, Washington. Genoway communicated with the undercover detective for a number of months via text message and e-mail, despite the detective advising that the purported thirteen (13) year old was actually eleven (11) years old.
Genoway was subsequently arrested, and during the course of a post arrest interview, admitted that he sought to meet the purported minor for the purpose of sexual intercourse. Genoway also admitted to engaging in sexual intercourse with another minor female, and to producing child pornography images and videos depicting these acts. Genoway further described that he choked that minor child during the course of his sexual interactions with her.
Through subsequent investigation, law enforcement officers with the SER-ICAC and HSI located the minor victim and learned that Genoway began producing child pornography images of the minor victim when she thirteen (13) years old, and continued to engage in sexual acts with her for a three year period. These images and videos were located among other child pornography images during the course of a forensic examination on Genoway’s electronic devices. Law enforcement officials also learned that Genoway had distributed the child pornography images and sought other adult males to have sexual intercourse with the minor victim.
During the sentencing hearing, Judge Bastian stated that the acts perpetrated by Genoway were “very concerning because it indicates that you were forcible, violent, and dangerous in your sex [acts with the] 13 year old victim.” Judge Bastian further characterized Genoway’s conduct as “egregious,” and advised that Genoway’s “interest in young girls was ongoing and ultimately…led to [Genoway’s] downfall in the undercover enticement investigation.”
Joseph H. Harrington said, “I commend the officers working with Homeland Security Investigations and the Southeast Regional Internet Crimes Against Children Task Force for their outstanding work in the investigation of this case. This case is yet another example of the remarkable results that local and federal law enforcement officers can accomplished when they work together in partnership. The sentence imposed reflects how egregious Genoway’s criminal conduct was.”
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.”
Homeland Security Investigations and the Southeast Regional Internet Crimes Against Children Task Force conducted the investigation of this matter. The case was prosecuted by Laurel J. Holland, an Assistant United States Attorney for the Eastern District of Washington.
Austin Pilot Sentenced to Federal Prison for Transporting Marijuana in His PlaneRead the Press Release
In Austin today, a federal judge sentenced 65–year-old pilot Wayne Douglas Brunet to 37 months in federal prison for possession with intent to distribute between 50 and 100 kilograms of marijuana announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
In addition to the prison term, U.S. District Judge Sam Sparks ordered that Brunet pay a $5,000 fine and be placed on supervised release for a period of three years after completing his prison term. Judge Sparks also ordered that Brunet forfeit his 1969 Piper PA-30 Comanche aircraft, $5,400 in U.S. Currency, and approximately $3,000 worth of prepaid cards seized by law enforcement.
On March 20, 2017, state authorities arrested Brunet at the Llano (TX) Municipal Airport after discovering approximately 206 pounds of hydroponic marijuana on board his aircraft. According to court records, HSI agents were prepared to interdict Brunet as he attempted to land at an unmanned airport in Bulverde (TX). The Department of Homeland Security Customs and Border Protection (CBP) Air and Marine Operation Center (AMOC) began tracking his single-engine plane after observing that it had a suspicious flight pattern from Medford, OR, to Texas and had landed only once in Holbrook, AZ, to refuel.
Brunet landed at the unmanned airport in Bulverde, but departed again after spotting authorities on the ground. Brunet then proceeded to the Lago Vista (TX) airport, but again, aborted his landing as he did in Bulverde when encountered by law enforcement. Brunet then proceeded to the Llano Municipal Airport where he landed at approximately midnight. After bringing the aircraft to a stop, Brunet attempted to flee on foot, but was apprehended on the tarmac by the Texas Department of Public Safety Air Unit. Authorities recovered 15 duffle bags filled with vacuum-sealed packages of marijuana along with approximately $5,400 in U.S. Currency.
Brunet has remained in federal custody since his arrest. On June 28, 2017, Brunet pleaded guilty to the drug trafficking charge.
HSI agents conducted this investigation together with assistance from CBP AMOC, Texas Department of Public Safety Air Unit and the Llano County Sheriff’s Office. Assistant United States Attorney Matthew Devlin prosecuted this case on behalf of the Government.