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Wednesday 13 September 2017
Raleigh Man Sentenced to 20 Years as an Armed Career CriminalRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, John Stuart Bruce, announced that yesterday in federal court, Chief United States District Judge James C. Dever, III sentenced RICKIE MARKIECE ATKINSON, 35, of Raleigh, to 240 months of imprisonment followed by 5 years of supervised release.
On February 6, 2017, ATKINSON pled guilty to one count of being a Felon in Possession of a Firearm and Ammunition.
On September 10, 2015, officers with the Raleigh Police Department (RPD) were conducting surveillance in an effort to locate ATKINSON, who was wanted for charges stemming from a shooting which occurred on September 1, 2015. Officers observed ATKINSON leaving the residence of his girlfriend and get into a vehicle; they arrested him shortly thereafter. Officers located five rounds of .38 caliber hollow-point ammunition in ATKINSON’S vehicle and a .38 caliber revolver, loaded with the same .38 caliber ammunition , under the mattress in the master bedroom of his girlfriend’s residence. On February 12, 2016, ATKINSON contacted his girlfriend from jail and asked her to “take responsibility” for the firearm, which she declined to do.
On November 14, 2015, RPD officers, again looking for ATKINSON, responded to a gas station on Person Street in Raleigh. They observed ATKINSON hunched over in the back seat of a vehicle and arrested him. Officers located a loaded .45 caliber handgun in the seat back directly in front of where ATKINSON had been sitting. The firearm had an obliterated serial number. Officers recovered an additional magazine containing .45 caliber ammunition in ATKINSON’S pants pocket. Further investigation revealed that the firearm had been reported stolen on November 7, 2015. A serial number restoration was later completed on the firearm which revealed the number to confirm that weapon was the one reported stolen.
Several threatening Facebook posts were later discovered by investigators on ATKINSON’S Facebook page. His Facebook page included a picture of ATKINSON holding a shotgun on September 30, 2015, and a picture of a handgun, which was posted on October 10, 2015.
The investigation was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant U.S. Attorneys Erin Blondel and Ellie Morales prosecuted the case for the government.
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
Shi Luang Peng, 68, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced Acting United States Attorney Louis D. Lappen. According to the Information[1], the defendant received retirement benefits intended for his mother, after his mother’s death in July 2008 until March 2016. The defendant’s alleged actions resulted in a loss to the government of approximately $94,606.51.
If convicted, the defendant faces a term of imprisonment, a 3‑year period of supervised release, restitution to the government of $94,606.51, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
[1] An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pee Dee Reentry Job Fair & ExpoRead the Press Release
Florence, South Carolina – The United States Attorney’s Office, the South Carolina Department of Probation, Parole and Pardon Services; SC Works; SC Vocational Rehabilitation; SC Department of Social Services; and the US Probation Office are continuing their statewide partnership to help individuals with prior criminal backgrounds secure employment.
The Second Annual Pee Dee Reentry Job Fair & Expo is being held Wednesday, September 27, 2017, from 10:00 am to 1:00 pm at the Vocational Rehabilitation Office, 1947 West Darlington Street, Florence.
This fair, which targets the Pee Dee region, is part of an annual series of fairs, including the Low Country, the Upstate, and the Midlands. The partner organizations structure these expos for South Carolinians with a criminal record in order to provide some focused support to these motivated job seekers.
“Studies have demonstrated the transformative impact a job has on individuals. Our state partners have tremendous expertise in hosting these resource fairs and we welcome the opportunity to work with them with a goal of full employment for all South, including specifically individuals with a criminal history,” said U.S. Attorney Beth Drake. “We are excited to connect those who attend with employment opportunities and other critical resources and help.”
The fair and expo will include area employers and other organizations that support the employment process to include the Alston Wilkes Society and the Greater Employment Advocacy Association. Probationers, parolees, or any individual with challenges in their background are encouraged to attend. Employers from varied industry will be present, including construction, manufacturing, and food services. Employers will be receiving resumes and available to discuss job opportunities at their places of business. The event will also feature workshops on how to seek expungements and pardons of prior criminal convictions.
Professional dress is required. Discounted SLED criminal background checks will be available on site.
Any interested employers or vendors should inquire with Diana Goldwire at (864) 315-9751 or [email protected] or Vickie Tyner at [email protected].
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Parmelee Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Parmelee, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on September 11, 2017, by U.S. District Judge Roberto A. Lange.
Richard Wolf Guts, age 32, was sentenced to 27 months in prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Wolf Guts was indicted by a federal grand jury on April 12, 2017. He pled guilty on July 17, 2017.
The conviction stemmed from an incident that occurred at the Rosebud Adult Correctional Facility, in Rosebud, South Dakota, on April 2, 2017, where Wolf Guts was serving a sentence for a tribal conviction. Wolf Guts began yelling and pouring water all over the floor of his cell, and he ignored verbal commands to stop. Corrections officers subsequently removed him from his cell and placed him in a restraint chair. As he was being secured in the restraint chair, Wolf Guts continued to be combative, spitting in the face of one corrections officer, kicking a second corrections officer in the leg, and biting the hand of a third corrections officer.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Wolf Guts was immediately turned over to the custody of the U.S. Marshals Service.
Parmelee Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Parmelee, South Dakota, man convicted of Abusive Sexual Contact was sentenced on September 12, 2017, by U.S. District Judge Roberto A. Lange.
Mark Felix Clairmont, age 42, was sentenced to 36 months in prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Clairmont was indicted by a federal grand jury on November 9, 2016. He pled guilty on June 26, 2017.
The conviction stemmed from an incident that occurred on June 20, 2015, at a house near Mission, South Dakota. On that date, Clairmont was drinking and socializing with a group of individuals that included the victim. The victim became intoxicated and fell asleep on a couch that evening. She subsequently awoke to discover Clairmont was sexually assaulting her.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Clairmont was immediately turned over to the custody of the U.S. Marshals Service.
Pacific Architects and Engineers, LLC to Pay $5 Million in False Claims Act SettlementRead the Press Release
WASHINGTON - Pacific Architects and Engineers, LLC (“PAE”) has agreed to pay the United States $5 million to resolve allegations that it knowingly failed to follow vetting requirements for personnel working in Afghanistan under a State Department contract for labor services. PAE is a Virginia-based contractor that provides personnel and other support to various federal government agencies.
The settlement was announced today by U.S. Attorney Channing D. Phillips and Steve A. Linick, Inspector General for the U.S. Department of State.
The agreement resolves claims relating to PAE’s Civilian Police “CIVPOL” contract in support of State Department missions in Afghanistan, Haiti, Lebanon, Liberia, South Sudan, and elsewhere. In 2007, the State Department awarded PAE a task order under the CIVPOL contract to provide training and mentoring personnel to counter-narcotics and drug interdiction police and investigators in Afghanistan. The task order required PAE to conduct extensive background checks on U.S. personnel that were in high risk or armed positions, including independently developed reference checks. For local, national, and third party national employees working on the task order, PAE was obligated to submit their names to the State Department’s Regional Security Office in Afghanistan for additional security clearance. According to the government’s evidence, PAE was aware of these contractual requirements but did not comply with them for extended periods. The United States asserts that invoices PAE submitted to the State Department for the labor services of improperly vetted personnel were false.
“This settlement affirms our commitment to hold government contractors accountable for properly screening employees, particularly those who work alongside our government’s personnel in fragile areas of the world,” said U.S. Attorney Phillips. “In this particular matter, it is alleged that PAE failed to conduct the appropriate vetting for personnel working in Afghanistan under a State Department contract for labor services for which invoices were later submitted. Our Office will continue to investigate and seek appropriate recoveries from contractors who do not meet their obligations.”
“The OIG special agents and staff assigned to this case should be commended for their excellent investigative work,” said Inspector General Linick. “Rooting out waste, fraud, and abuse is at the heart of any OIG mission, as is ensuring that contractors are accountable for every taxpayer dollar they receive.”
The settlement also resolves a lawsuit filed in the U.S. District Court for the District of Columbia by former PAE manager Robert J. Palombo under the qui tam, or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens may bring suit on behalf of the United States and share in any recovery obtained by the government. Mr. Palombo will receive $875,000 as his share of the government’s recovery. The case is captioned United States ex rel. Robert J. Palombo v. PAE, Inc., et al.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
This settlement was the result of an investigation into Mr. Palombo’s allegations by the United States Attorney’s Office for the District of Columbia and the Department of State, Office of Inspector General.
Operator of Hospitals in Queens, NY, Agrees to Pay $4 Million to Settle Alleged False Claims Act Violations Arising from Improper Payments to PhysiciansRead the Press Release
BROOKLYN, N.Y. – MediSys Health Network, Inc., which owns and operates Jamaica Hospital Medical Center and Flushing Hospital Medical Center, two hospitals in Queens, New York, has agreed to pay $4 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Department of Justice announced today.
The settlement was announced by Bridget M. Rohde, Acting U.S. Attorney for the Eastern District of New York, Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division, and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York Region.
The government’s investigation revealed that defendants submitted false claims to the Medicare Program for services rendered to patients referred by physicians with whom defendants had improper financial relationships. These relationships took the form of compensation and office lease arrangements that did not comply with the requirements of the Stark Law, which restricts the financial relationships that hospitals may have with doctors who refer patients to them. The allegations were brought to the government’s attention through the filing of a complaint pursuant to the qui tam provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the United States and share in any recovery.
“Health care providers who enter into improper financial relations with referring physicians compromise the referral process and encourage over-utilization of services, to the potential detriment of both patients and taxpayers. We will hold health care providers accountable for their violations of federal law,” stated Acting U.S. Attorney Rohde. Ms. Rohde thanked DOJ’s Civil Division and HHS-OIG for their assistance in the investigation.
“This recovery should help to deter other health care providers from entering into improper financial relationships with physicians that can taint the physicians’ medical judgment, to the detriment of patients and taxpayers,” said Acting Assistant Attorney General Readler of the Justice Department’s Civil Division.
“When hospital operators provide financial incentives to doctors for patient referrals, individuals rightfully wonder whose best interests are being served,” said HHS-OIG Special Agent-in-Charge Lampert. “We will continue to investigate such entities who fraudulently bill government health programs.”
The United States’ case was handled by Assistant U.S. Attorney Kenneth M. Abell of the United States Attorney’s Office for the Eastern District of New York, with assistance from Senior Trial Counsel David T. Cohen from DOJ’s Civil Division’s Commercial Litigation Branch and Associate Counsel David Fuchs from HHS-OIG.
North Floridians Reminded to Report Disaster Related FraudRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Christopher P. Canova is urging North Florida residents and businesses to be aware of and report suspected fraudulent activity related to hurricane relief operations and federal funding for victims of Hurricane Irma.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of flood victims, contact the National Center for Disaster Fraud toll free at (866) 720-5721. You can also fax information to (225) 334-4707 or e-mail it to [email protected]. The telephone line is staffed by a live operator 24 hours a day, seven days a week.
“We do not tolerate fraud,” said United States Attorney Christopher P. Canova. “Individuals, families, and businesses have suffered, and will continue to suffer, tremendous losses. Emergency funds are needed to help them get back on their feet. Dozens of agencies, investigators, and prosecutors are ready to respond to credible allegations of fraud and abuse. If you are aware of fraud, we urge you to call the National Disaster Fraud Hotline.”
In anticipation of unprecedented fraud in connection with federal disaster relief following Hurricanes Katrina, Rita, and Wilma, a Joint Command Center was established in Baton Rouge, LA, to coordinate reports of fraud. The Command Center, now known as the National Center for Disaster Fraud, has since expanded its mission to include suspected fraud from any natural or manmade disaster. More than 20 federal agencies participate in the center, allowing it to act as a centralized clearinghouse of information. To date, the National Center for Disaster Fraud has received and screened more than 70,000 complaints involving 40 different disasters, resulting in 50,000 referrals to law enforcement agencies. In connection with Hurricane Katrina alone, there were 1,370 federal disaster fraud prosecutions involving 1,463 defendants in 49 different federal districts.
Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions or personal identifying information to anyone soliciting donations on behalf of hurricane victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Please also be sure to undertake necessary inquiries before giving contributions to anyone soliciting contributions on behalf of disaster victims.
Please report any suspicions of fraud to the National Center for Disaster Fraud (toll free at (866) 720-5721, (225) 334-4707 fax, or [email protected]). Fraud may also be reported directly to the United States Attorney’s Office in Tallahassee by contacting Assistant US Attorney Michael Harwin at (850) 942-8430 or [email protected].
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
New York Hospital Operator Agrees to Pay $4 Million to Settle Alleged False Claims Act Violations Arising from Improper Payments to PhysiciansRead the Press Release
MediSys Health Network Inc., which owns and operates Jamaica Hospital Medical Center and Flushing Hospital and Medical Center, two hospitals in Queens, New York, has agreed to pay $4 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
The settlement resolves allegations that the defendants submitted false claims to the Medicare program for services rendered to patients referred by physicians with whom the defendants had improper financial relationships. These relationships took the form of compensation and office lease arrangements that did not comply with the requirements of the Stark Law, which restricts the financial relationships that hospitals may have with doctors who refer patients to them.
“This recovery should help to deter other health care providers from entering into improper financial relationships with physicians that can taint the physicians’ medical judgment, to the detriment of patients and taxpayers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
The lawsuit was filed by Dr. Satish Deshpande under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the United States and share in any recovery. Dr. Deshpande will receive $600,000 as his share of the recovery.
“Health care providers who enter into improper financial relations with referring physicians compromise the referral process and encourage over-utilization of services, to the potential detriment of both patients and taxpayers,” said Acting U.S. Attorney Bridget M. Rohde for the Eastern District of New York. “We will hold health care providers accountable for their violations of federal law.”
“When hospital operators provide financial incentives to doctors for patient referrals, individuals rightfully wonder whose best interests are being served,” said Special Agent in Charge Scott J. Lampert for U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to investigate such entities who fraudulently bill government health programs.”
The case, United States ex rel. Deshpande, et al. v. The Jamaica Hospital Medical Center, et al., Case No. 13-cv-4030 (E.D.N.Y.), was handled by Senior Trial Counsel David T. Cohen of the Civil Division’s Commercial Litigation Branch, Assistant U.S. Attorney Kenneth M. Abell of the U.S. Attorney’s Office for the Eastern District of New York and Associate Counsel David Fuchs from HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability.
New Orleans CPA Pleads Guilty to Filing a False Federal Income Tax ReturnRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BRENDEL DEEMER, age 49, a New Orleans Certified Public Account (CPA), pled guilty yesterday to one count of willfully filing a false tax return for herself.
DEEMER was charged in June 2017 with filing a false 2010 individual income tax return that excluded income and inflated expenses for businesses under her control. According to court documents, DEEMER operated Deemer CPA & Consulting Services LLC since at least 2009. From 1999 through 2005, she also operated Building Blocks Academy, a day care center. DEEMER ceased operating Building Blocks Academy after Hurricane Katrina and did not resume operating the business. As DEEMER admitted pursuant to her guilty plea, for tax years 2009 and 2010, she filed individual income tax returns that falsely reported her Schedule C business income from Deemer CPA and Consulting Services, LLC, and her expenses for Building Blocks Academy.
DEEMER faces a maximum penalty of three years of imprisonment, followed by one year of supervised release. She also faces potential fines and other monetary penalties. As part of her plea agreement, DEEMER agreed to pay $88,651.22 in restitution to the IRS. U.S. District Judge Jay C. Zainey set sentencing for December 12, 2017.
Acting U. S. Attorney Evans commended the work of IRS-Criminal Investigations for investigating this matter. Assistant U.S. Attorney Hayden Brockett is in charge of the prosecution.
New London Man Sentenced to 10 Years in Prison for Possessing Ammunition in Connection with ShootingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WEST ROBERTSON, also known as “Po,” 34, of New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by three years of supervised release, for unlawfully possessing ammunition in connection with a shooting in New London. Judge Bryant also ordered ROBERTSON to perform 200 hours of community service.
According to court documents and statements made in court, on May 29, 2014, in the vicinity of Maple Avenue in New London, ROBERTSON became involved in an altercation with another individual and shot the victim several times. ROBERTSON then fled the scene.
The victim’s injuries were not life-threatening.
Eyewitness accounts identified ROBERTSON as the shooter, and a video surveillance camera captured his girlfriend’s car fleeing the scene of the shooting. Police also recovered ammunition shell casings in the Maple Avenue area.
ROBERTSON was arrested on June 6, 2014. The firearm he used in the shooting was later recovered.
ROBERTSON has multiple state felony convictions including those for robbery, kidnapping and possession of narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On December 1, 2014, ROBERTSON pleaded guilty to one count of being a felon in possession of ammunition.
ROBERTSON has been detained since his arrest.
This matter was investigated by the New London Police Department with the assistance of the Connecticut State Police, New London State’s Attorney’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Sarah Karwan.
Nauti-Block Associate Sentenced to 66 Months in Prison for Trafficking HeroinRead the Press Release
BOSTON – A Hyannis man associated with the Nauti-Block gang was sentenced today in federal court in Boston for his role in trafficking large quantities of heroin throughout Cape Cod.
Oliver Hamilton, 26, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 66 months in prison and three years of supervised release. In May 2017, Hamilton pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and possession of heroin with the intent to distribute.
Hamilton was charged as part of the federal investigation into the Nauti-Block gang led by Denzel Chisholm, Christian Chapman, and Christopher Wilkins on Cape Cod that led to the indictment of 19 individuals. Chisholm and Chapman obtained heroin in New Bedford, and from other suppliers, and distributed the heroin to numerous drug dealers on Cape Cod, including Hamilton. Hamilton accepted responsibility for distributing between 100 and 400 grams of heroin.
Chapman pleaded guilty to heroin trafficking and was sentenced to eight years in prison. Wilkins pleaded guilty to multiple federal drug trafficking charges and is scheduled to be sentenced on Sept. 18, 2017. In June 2017, a federal jury convicted Chisholm of 11 counts of drug trafficking, including possession with intent to distribute one kilogram or more of heroin. He is scheduled to be sentenced on Sept. 15, 2017.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
Mission Man Sentenced for Meth TraffickingRead the Press Release
McALLEN, Texas – A 27-year-old Mission man has been ordered to prison for possessing with the intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Bryon Olivera pleaded guilty March 3, 2016.
Today, U.S. District Judge Micaela Alvarez sentenced Olivera to 100 months in federal custody to be followed by three years of supervised release.
On Nov. 3, 2015, law enforcement were responding to a residence in Mission and found Olivera outside in possession of a pistol. They searched the house and a vehicle on the property and found two additional pistols, two shotguns, two assault rifles, multiple rounds of ammunition and approximately 1.5 kilograms of methamphetamine.
Olivera admitted the firearms and ammunition were destined for Mexico, while the methamphetamine was to be distributed further in the United States.
Previously released on bond, Olivera was taken into custody following the sentencing today pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mission Police Department. Assistant U.S. Attorney Roberto Lopez Jr. prosecuted the case.
Mexican National Sentenced to Prison for Armed Drug TraffickingRead the Press Release
A 40-year-old Vancouver, Washington resident was sentenced this week in U.S. District Court in Tacoma to 80 months in prison for drug and gun crimes, announced U.S. Attorney Annette L. Hayes. IGNACIO MAGANA MONTES, aka SOSTENES MONTOYA SANCHEZ, aka “Nacho,” pleaded guilty in April 2017, to Possession of Heroin with Intent to Distribute, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. MAGANA MONTES is a Mexican national who likely will be deported following his prison term. At the sentencing hearing, U.S. District Judge Benjamin H. Settle noted that the large amount of drugs and cash seized at MAGANA MONTES’ home demonstrated that he had been a sizable dealer for some time, and had contributed to the opioid epidemic gripping our state and nation.
According to records filed in the case, in September 2015, the Vancouver Police Department executed a search warrant on MAGANA MONTES’s home in the 2300 block of Neals Lane, in Vancouver. Inside a locked closet in the master bedroom, law enforcement seized a Jennings .22 caliber pistol, a Llama .45 caliber pistol, about a dozen cell phones, over $112,000 in cash, and an ounce of heroin. In the garage of the home officers recovered three pounds of heroin (one pound was packaged for distribution), and in a lock box buried just outside the garage they found another two pounds of heroin. In all, law enforcement seized more than five pounds of heroin and $128,000 from the house.
In their sentencing memo prosecutors noted that MAGANA MONTES is a large-scale dealer, given the amount of money and drugs in the home. The five pounds of heroin could provide upwards of 20,000 individual doses of heroin. Law enforcement searched the house and discovered the drug trafficking operation after family members were involved in a nearby drive-by shooting incident in Vancouver, and thereafter returned to the family home. It is unclear whether that shooting was drug related.
The case was investigated by the Vancouver Police Department and the FBI. The case was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Member of PCP Distribution Conspiracy Sentenced to Seven Years in Federal PrisonRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On September 12, 2017, U.S. District Judge Paula Xinis sentenced Reginald Cecil Duckett, age 49, of Washington, D.C., to seven years in federal prison, followed by three years of supervised release, for conspiracy to distribute phencyclidine (PCP).
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Director in Charge Andrew W. Vale of Federal Bureau of Investigation, Washington Field Office; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County Sheriff Melvin C. High; and Chief Peter Newsham of the District of Columbia Metropolitan Police Department.
According to his plea agreement, Duckett purchased PCP from co-conspirators and then redistributed the PCP to others. Duckett discussed particular transactions via telephone, including the distribution of multiple ounces of PCP. Duckett’s telephone calls were intercepted pursuant to a court order.
Duckett is one of nine co-conspirators charged in the case. Four co-defendants have so far pleaded guilty and will be sentenced later: Alexander Patton, Jr., Mitchell Brooks, Jermaine Washington, and Robert Beasley.
Acting United States Attorney Stephen M. Schenning commended the FBI, the Prince George’s County Police Department, the Prince George’s County Sheriff’s Office, and the Metropolitan Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Joseph Baldwin who is prosecuting the case.
Massachusetts Man Pleads Guilty to Producing Child PornographyRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Matthew Adey, 47, of Malden, Massachusetts pleaded guilty in federal court today to one count of producing child pornography.
According to statements in court and court documents, on February 26, 2017, the defendant met a 14-year-old boy in an online local interest chat group. The defendant, aware of the child’s age, requested a photograph of the child engaging in sexually explicit conduct, which the child took and sent to the defendant. The defendant continued to communicate with the child over the Internet. On March 4, 2017, the defendant traveled from Massachusetts to the child’s residence in New Hampshire. On March 4 and March 5, 2017, the defendant engaged in sexual intercourse with the child multiple times. A subsequent forensic analysis of the defendant’s computers indicated that he possessed various images and videos containing additional child pornography.
The defendant’s plea agreement includes a binding stipulated sentence of 204 months’ imprisonment followed by ten years of supervised release. A sentencing hearing has been scheduled for December 21, 2017.
The investigation in this case was led by the Londonderry, New Hampshire Police Department, the Massachusetts State Police Computer Crimes Unit, and Homeland Security Investigations, with the assistance of the Massachusetts Internet Crimes Against Children Task Force and the New Hampshire Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Marion County man sentenced for mail fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia man was sentenced today to 18 months incarceration for mail fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.
Eric Warner, age 35, pled guilty to one count of “Mail Fraud” in June 2017. Warner admitted to taking part in a staged vehicular accident in January 2012 in Harrison County. He also admitted to faking injuries from said accident and filing a false insurance claim, from which he, and others, received insurance settlements of approximately $101,500. Warner also admitted his role in procuring an insurance settlement check in someone else’s name in the amount of $46,500.
Warner was also ordered to pay $152,603.64 in restitution.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The West Virginia Insurance Commission Office of Inspector General and the United States Postal Inspection Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Marion County man sentenced for mail fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia man was sentenced today 33 months incarceration for mail fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.
Michael Sine, age 34, pled guilty to one count of “Mail Fraud” in June 2017. Sine admitted to participating in a staged vehicle accident, faking injuries from said accident, and filing false insurance claims resulting in a $41,000 settlement. The crime happened between May 2013 and October 2013 in Marion County.
Sine was also ordered to pay $74,653.42 in restitution.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The West Virginia Insurance Commission Office of Inspector General and the United States Postal Inspection Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Man Pleads Guilty to Producing Images of Child Sexual AbuseRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to child pornography crimes including enticing minor victims to produce child sexual abuse images online.
According to court documents, Larry Anthony Radebaugh, 40, established chat-based relationships with multiple children in which he persuaded them to send him nude images and videos of themselves. Posing as a teenage boy, Radebaugh used applications such as Kik and TextNow to befriend his victims. Radebaugh enticed the minors to strike sexual poses and perform sexual acts and then transmit the images over the internet. With one victim, he used Skype to engage in “phone sex,” while his own camera was disabled. For some of his victims, this conduct lasted approximately 1 1/2 years. Radebaugh stored many of these images in an online storage service and possessed other images on his cell phone.
Radebaugh pleaded guilty to production of child pornography and possession of child pornography and faces a mandatory minimum penalty of 15 years and a maximum penalty of 40 years in prison when sentenced on Jan. 18, 2017. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea. Assistant U.S. Attorney Randy Stoker is prosecuting the case.
This case is 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 and click on the tab “resources” for more information about Internet safety education.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-86.
Legal Permanent Resident Sentenced to Prison for Importing MethRead the Press Release
BROWNSVILLE, Texas – A 56-year-old legal permanent resident alien who resided in Matamoros has been ordered to prison following his conviction of methamphetamine trafficking, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Martin Araiza-Jacobo on June 14, 2017, for conspiracy to possess and possession of methamphetamine with intent to deliver as well as conspiracy to import and importation of methamphetamine following a two-day trial and approximately two hours of deliberation.
Today, U.S. District Judge Rolando Olvera handed Araiza-Jacobo a 120-month sentence. Not a U.S. citizen, Araiza-Jacobo is expected to face loss of his legal status in the U.S. and deportation proceedings following his release from prison.
On Jan. 19, 2017, Araiza-Jacobo attempted to enter the United States through a pedestrian lane at the Gateway International Bridge, at which time he declared that he was bringing in sandwiches and two bags of candies from Mexico.
A Customs and Border Protection (CBP) officer inspected the bags and immediately noticed the candies inside the bag did not match with the candy images displayed on the bag. The contents also felt harder than expected. Authorities conducted an X-ray examination which revealed anomalies in both bags. Officers then opened the bags and discovered 83 packages containing 5.19 kilograms of methamphetamine.
Araiza-Jacobo stated he worked as a “cruzador” or a person who helps people cross groceries from the United States to Mexico. He claimed he had crossed into Mexico earlier that day to buy a sandwich for a lady and met an unknown man there who asked him to cross the bags of candy. The man was supposed to call Araiza-Jacobo once back in the U.S. and would give him the name and description of the person to whom he would deliver the candy. Araiza-Jacobo denied ever seeing or talking to the unknown man before.
However, the jury heard evidence that Araiza-Jacobo had been in contact with this man since Jan. 16, 2017. Further, Araiza-Jacobo had actually initiated the contact. Testimony revealed that Araiza-Jacobo had overheard part of a conversation in which a man was looking for someone willing to cross a piñata and a box of candy into the U.S. and ship it to Atlanta, Georgia. Araiza-Jacobo got the man’s number and called him. Less than an hour later, Araiza-Jacobo commented that the trip was set.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Israel Cano III and Jason Corley are prosecuting the case.
Lee's Summit Man Pleads Guilty to Producing Thousands of Fake Driver's LicensesRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man pleaded guilty in federal court today after police officers found thousands of fake driver’s licenses during a search of his residence.
Tracy Allan Ford, 27, of Lee’s Summit, waived his right to a grand jury and pleaded guilty before U.S. District Judge Roseann Ketchmark to a federal information that charges him with one count of producing fraudulent identification documents.
Lee’s Summit police officers executed a search warrant at Ford’s residence on Sept. 29, 2015, after receiving an anonymous tip. Among the items seized from the residence were over 2,300 copies of counterfeit Missouri driver’s licenses (in various stages of production), counterfeit driver’s license producing hardware (such as milling machines and laminators), printers, flash drives and several computers.
Ford told investigators that he had been producing fraudulent Missouri driver’s licenses for profit for the past three years. Ford used specialized materials that he ordered online, including sheets of holograms from a company in China. Lee’s Summit detectives earlier had located a FedEx package, addressed to Ford, which contained multiple sheets of lamination with “Missouri” printed on them. The package was re-sealed and allowed to be delivered to Ford’s address.
The investigation of Ford began on Jan. 26, 2015, when a Lee’s Summit police officer observed an apparently underage female purchase two bottles of rum at Discount Smokes and Liquor. The officer checked with the store clerk and learned that the woman had presented a Missouri driver’s license that indicated her birth year was 1991, thus making it legal for her to purchase alcohol. Because the officer did not believe she was 21 years old, he began an investigation.
When the officer interviewed the woman, he learned that she was only 19 years old and had used a professionally made, fraudulent Missouri driver’s license that she ordered from Ford via e-mail. She paid Ford for the driver’s license by placing money on a “green dot” card and providing the account numbers to Ford via e-mail.
Under federal statutes, Ford is subject to a sentence of up to 15 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the U.S. Postal Inspection Service, the U.S. Secret Service, the Lee’s Summit, Mo., Police Department and the Missouri Department of Revenue.
Leader of Wilmington Bloods Gang Sentenced to Nearly 30 YearsRead the Press Release
WILMINGTON – The United States Attorney’s Office announced today that KEJUAN TIZOM SHABAZZ SMITH, 24, of Wilmington, North Carolina, was sentenced in federal court to 327 months imprisonment after having been convicted of conspiracy to distribute heroin and possession of a firearm by convicted felon.
An investigation by federal and state law enforcement agencies revealed that SMITH was a leader of the Nine Trey Gangsters, a Wilmington-based subset of the United Blood Nation “UBN” street gang. During the months of July and August of 2016, law enforcement conducted a federal Title III wiretap on a cell phone used by SMITH. SMITH was intercepted communicating with subordinate gang members on a daily basis in furtherance of heroin distribution and gang-related crimes.
On August 4, 2016, SMITH stockpiled firearms and ammunition at a Wilmington residence in anticipation of traveling to Goldsboro the following day with subordinate gang members for the purpose of carrying out a hit on a rival gang member. That evening, law enforcement executed a search warrant at the residence, resulting in the seizure of 13 firearms, assorted ammunition, and a military grade ballistic vest.
Multiple co-defendants were charged and have already been sentenced in federal court in connection with this prosecution:
KHALIL DJOUR TRUESDALE was convicted of conspiracy to distribute heroin and sentenced to 78 months imprisonment. THEODORE PIERCE was convicted of heroin distribution and firearms offenses and sentenced to 102 months imprisonment. THEODORE HARDY was convicted of heroin distribution and sentenced to 84 months imprisonment. DAENZAL MURPHY was convicted of heroin distribution and sentenced to 14 months imprisonment. ALICIA RASHAWN JOHNSON was convicted of heroin distribution and sentenced to 13 months imprisonment. DARRELL TYKWAN ATKINSON was convicted of heroin distribution and sentenced to 14 months imprisonment. Co-defendants TAKEEM LEINARD COLLINS and KASHIF ARDE RHODES have entered guilty pleas and will be sentenced at a later date.
This case was brought as a part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation investigating narcotics distribution and gang activity.
Investigation of this case was conducted by the Federal Bureau of Investigation – Wilmington Safe Streets Task Force consisting of the Wilmington Police Department, the New Hanover County Sheriff’s Office, North Carolina State Highway Patrol, the Onslow County Sheriff’s Office, and the Jacksonville Police Department.
Las Vegas Travel Agent Charged in White Plains Federal Court with Defrauding Westechester Youth in Connection with Travel to World Youth Day 2016 in PolandRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Phillip R. Bartlett, the Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of a Complaint charging VINCENT MAFFUCCI with mail fraud. The charge arises from an alleged fraudulent scheme whereby MAFFUCCI, a Las Vegas-based travel agent, collected over $240,000 from various parishes, including numerous parishes in and around Westchester County, New York, in connection with a tour he had organized to Europe for the Catholic Church’s World Youth Day in July and August 2016. Rather than use the money to pay for trip-related expenses, however, MAFFUCCI used more than $220,000 of the funds for his own personal expenses. MAFFUCCI was arrested this morning, and will be presented today before a United States Magistrate Judge, in the United States Courthouse in Las Vegas, Nevada.
Acting U.S. Attorney Joon H. Kim said: “Vincent Maffucci, a travel agent, allegedly collected over $240,000 from Westchester parishes, purportedly to organize a young people’s church tour to Europe. Instead of arranging the trip, Maffucci allegedly pocketed nearly all of the money and spent it on himself. Now Maffucci will face justice in federal court.”
USPIS Inspector in Charge Phillip R. Bartlett said: “Mr. Maffucci allegedly capitalized on the trust these organizations placed with him to get their youth to this faith-filled world event. He betrayed the trust of the faith community when he allegedly spent money to satisfy his personal needs, then lied about their refunds. Mr. Maffucci, however, got his first taste of karma when Postal Inspectors and their law enforcement partners uncovered his alleged faithless crimes, placed him under arrest and brought him before a Federal Magistrate Judge to answer to fraud charges.”
As alleged in the Complaint unsealed today in White Plains federal court[1]:
Every approximately two to three years, the Catholic Church organizes World Youth Day, an event for young people. Each World Youth Day is held in a different global location and attended by young people from around the world, including many people from Westchester County. World Youth Day (“WYD”) 2016 was held in Krakow, Poland.
Several parishes in and around Westchester County, New York, used a travel agency known as ITC Tours to organize their parishes’ WYD 2016 trips. VINCENT MAFFUCCI, the defendant, was the owner of ITC Tours and the person with whom the parishes dealt. In connection with the trip, MAFFUCCI provided a printed brochure, including an itinerary and a list of the various services provided in connection with the tour. Among other things, the tour was to include: “[r]ound trip airfare from JFK to Berlin returning from Budapest”; “Good 3 star hotels for 11 nights”; “Continental breakfast daily and 10 three course dinners”; “Entrance fees during sightseeing tours”; and “WYD and Solidarity fees estimated at $175.00 per person.” The brochure lists the “[c]ost per person” as “Triple $2919 Twin $3072 Single $3515.”
From in or about March 2014 until in or about June 2016, numerous parishes, including several in Westchester County, New York, sent, via Federal Express and United States mail, checks totaling approximately $240,000 to MAFFUCCI in Las Vegas, Nevada, as payment for their respective parishes’ tour participants.
Of the more than $240,000 MAFFUCCI collected for the WYD 2016 trip, he spent only $11,226 on the trip. MAFFUCCI used the remaining funds for his own personal expenses. Specifically, during the time period MAFFUCCI was soliciting and receiving checks for WYD 2016, he spent approximately $43,000 of the funds on dining, fuel, and clothing. In addition, MAFFUCCI withdrew over $94,000 in cash, and made transfers totaling over $83,000 to other bank accounts that he controlled.
In June 2016, the month before the WYD 2016 trip was to take place, MAFFUCCI cancelled the tour, citing, among other reasons, concerns about terrorism. MAFFUCCI promised full refunds to those who had already paid. To date, most of the tour participants have not received refunds from MAFFUCCI.
* * *
MAFFUCCI was arrested this morning and will be presented in federal court in Las Vegas before United States Magistrate Judge Carl W. Hoffman.
MAFFUCCI, 77, of Las Vegas, Nevada, is charged with one count of mail fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative efforts of the United States Postal Inspection Service and the Office’s criminal investigators. He also thanked the Westchester County District Attorney’s Office for their assistance in the investigation.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Kathryn Martin is in charge of the prosecution.
[1]As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Las Cruces Woman Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Alma Delia Perez, 29, of Las Cruces, N.M., pled guilty today in federal court to a heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Perez was arrested in June 2017, on a criminal complaint charging her with possessing approximately .57 kilograms of heroin on June 13, 2017, in Dona Ana County, N.M. According to the complaint, Perez was arrested after U.S. Border Patrol agents at the U.S. Border Patrol checkpoint in Las Cruces seized two packages of black tar heroin weighing approximately 570 grams that was concealed in the backseat of the vehicle in which Perez was traveling.
During today’s proceedings, Perez pled guilty to a felony information charging her with conspiracy and possession of heroin with intent to distribute. In entering the guilty plea, Perez admitted that on June 13, 2017, she entered the Border Patrol checkpoint on Interstate 25 in a vehicle containing approximately 570 grams of heroin concealed in a hallowed out portion of the backseat. Perez further admitted that she had conspired with others to deliver the heroin to individuals within the United States in exchange for money.
At sentencing, Perez faces a maximum penalty of 20 years in federal prison. Perez remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the U.S. Border Patrol. Special Assistant U.S. Attorney Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Kevin Darnell Williams Sentenced for Robbery, Drug, and Firearms OffensesRead the Press Release
Williams shot victim at drug deal in Ames, Iowa
DES MOINES, IA – On September 12, 2017, Kevin Darnell Williams, also known as “Splash,” 24, was sentenced to 270 months in federal prison for the crimes of conspiracy to possess with intent to distribute marijuana, robbery, discharge of a firearm during and in relation to a drug trafficking crime and a crime of violence, and felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Sentence was imposed by United States District Court Chief Judge John A. Jarvey. Williams was convicted of these crimes by a jury on April 20, 2017.
According to evidence presented at trial, Williams set up a marijuana deal with the victim in Ames. Once the two met, on August 9, 2016, the drug deal turned into a robbery, and Williams shot the victim four times. Williams was apprehended by law enforcement in Chicago several days after the shooting.
This matter was investigated by the Federal Bureau of Investigation's Central Iowa Gang Task Force, the Ames Police Department, the Iowa Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The 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].
Kayenta Man Sentenced to More Than 27 Years for Kidnapping and Violent AssaultRead the Press Release
PHOENIX – This week, Eli Sloan, 45, of Kayenta, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 330 months of imprisonment, to be followed by a lifetime term of supervised release. Last year, Sloan was convicted of six offenses following a jury trial, including kidnapping, two counts of aggravated sexual abuse, assault with intent to commit aggravated sexual abuse, assault resulting in substantial bodily injury to an intimate partner, and assault by strangling an intimate partner.
On Oct. 4, 2015, Sloan kidnapped the victim and held her overnight in a rural area near Kayenta, Ariz. Eventually, he took her to a trailer, where he held her until the next day. Both Sloan and the victim are members of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Public Safety. The prosecution was handled by Assistant U.S. Attorneys Alexander Samuels and Sharon Sexton, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8232-PCT-DLR
RELEASE NUMBER: 2017-085_Sloan
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Kansas City, Kan., Man Sentenced to 11.5 Years on Federal Drug, Gun ChargesRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., man who sold methamphetamine and guns to undercover investigators was sentenced Wednesday to 11.5 years in federal prison, U.S. Attorney Tom Beall said.
Eric Castillo, 28, who is citizen of Mexico, pleaded guilty to one count of possession with intent to distribute methamphetamine, and one count of unlawful possession of firearms by a person who is not in the United States legally. In a series of transactions monitored by investigators, Castillo sold methamphetamine for about $500 an ounce. Along with the drugs, he sold guns including rifles and handguns made by Beretta, Browning and Smith & Wesson. One of the handguns was a .380 pistol with a built-in laser. The first transaction took place at a McDonald’s restaurant in Kansas City, Kan. Castillo offered guns for sale by asking undercover investigators if they were interested in buying some “toys.”
Beall commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Terra Morehead for their work on the case.
Jury Convicts Sex Offender of Prostituting Two Minor VictimsRead the Press Release
ALEXANDRIA, Va. – A Dumfries man was convicted today by a federal jury on charges of sex trafficking of minors.
According to court records and evidence presented at trial, Michael Edward Gunn, 40, a previously convicted sex offender, was a pimp who sex trafficked two minor victims from July 2013 to July 2015. Gunn lured the two minor victims into his prostitution ring and kept them there by providing drugs, telling the victims the ring was a family that took care of each other, providing the victims a place to stay, and by engaging in sexual relationships with both minor victims.
According to evidence presented at trial, Gunn helped create online advertisements, drove them to prostitution appointments, and collected and controlled the money. Evidence also showed that Gunn knew both minor victims were underage. For example, around the time one of the victims was 14 years old, Gunn saw a missing persons poster with the girl’s photo and her actual date of birth.
Gunn’s two co-conspirators, adult prostitutes who assisted him in running the prostitution ring, testified at trial as to Gunn’s role in leading the conspiracy.
Gunn faces a mandatory minimum of 20 years and a maximum penalty of life in prison when sentenced on December 22. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, M. Jay Farr, Arlington County Chief of Police, Barry M. Barnard, Chief of Prince William County Police, and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict. Assistant U.S. Attorneys Maureen Cain and Kimberly R. Pedersen are prosecuting the case.
The Dumfries Police Department provided significant assistance with this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-137.
Indictment Unsealed InRead the Press Release
Acting U.S. Attorney Duane A. Evans announced the unsealing of the Superseding Indictment of LOUIS AGE, JR., age 68, LOUIS AGE, III, aka “BIG LOU,” age 47, STANTON GUILLORY, aka “NAN NAN,” age 23, KENDRICK JOHNSON, age 40, and RONALD WILSON, aka “TANK,” age 43.
All five men were indicted in an 11-count Superseding Indictment that charged them with various offenses related to the murder of Milton Womack, AGE JR.’S former employee in a healthcare company that was engaged in healthcare fraud. LOUIS AGE, JR., and others were indicted and convicted of healthcare fraud in the Middle District of Louisiana in 2013. Womack was murdered on July 27, 2012, days after it was announced that he would be pleading guilty to healthcare fraud. An outline of the charges and potential penalties are listed below.
COUNT
CHARGE
DEFENDANT(S)
POTENTIAL SENTENCE
1
Conspiracy to participate in the murder-for-hire of Milton Womack
AGE, JR.
AGE, III
GUILLORY
JOHNSON
WILSON
Death or Life Imprisonment; $250,000 fine; 5 years supervised release; $100 mandatory special assessment
2
Murder-for-hire of Milton Womack
AGE, JR.
AGE, III
GUILLORY
JOHNSON
WILSON
Death or Life Imprisonment; $250,000 fine; 5 years supervised release; $100 mandatory special assessmen
3
Conspiracy to murder Milton Womack to prevent him from testifying or providing information about a federal crime
AGE, JR.
AGE, III
GUILLORY
JOHNSON
WILSON
Death or Life Imprisonment; $250,000 fine; 5 years supervised release; $100 mandatory special assessment
4
Murder of Milton Womack to prevent him from testifying about a federal crime
AGE, JR.
AGE, III
GUILLORY
JOHNSON
WILSON
Death or Life Imprisonment; $250,000 fine; 5 years supervised release; $100 mandatory special assessment
5
Murder of Milton Womack to prevent him from providing information about a federal crime
AGE, JR.
AGE, III
Death or Life Imprisonment; $250,000 fine; 5 years supervised release; $100 mandatory special assessment
6
Conspiracy to murder Milton Womack in retaliation for disclosing information about a federal crime
AGE, JR.
AGE, III
GUILLORY
JOHNSON
WILSON
Death or Life Imprisonment; $250,000 fine; 5 years supervised release; $100 mandatory special assessment
7
Murder of Milton Womack in retaliation for disclosing information about a federal crime
AGE, JR.
AGE, III
GUILLORY
JOHNSON
WILSON
Death or Life Imprisonment; $250,000 fine; 5 years supervised release; $100 mandatory special assessment
8
Conspiracy to intimidate, threaten, and corruptly persuade witnesses
AGE, JR.
AGE, III
JOHNSON
20 Years Imprisonment; $250,000 fine; 3 years supervised release; $100 mandatory special assessment
9
Conspiracy to retaliate against witnesses
AGE, JR.
AGE, III
JOHNSON
10 Years Imprisonment; $250,000 fine; 3 years supervised release; $100 mandatory special assessment
10
Conspiracy to participate in the murder-for-hire of Milton Womack
JOHNSON
Death or Life Imprisonment; $250,000 fine; 5 years supervised release; $100 mandatory special assessment
11
Conspiracy to participate in the murder-for-hire of Milton Womack
AGE, III
Death or Life Imprisonment; $250,000 fine; 5 years supervised release; $100 mandatory special assessment
Acting U.S. Attorney Evans reiterated that the Superseding Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, which was assisted by the New Orleans Police Department. Assistant U.S. Attorneys Harry McSherry, James Baehr, and Myles Ranier are in charge of the prosecution.
Houston Man Sentenced to 77 Years in Federal Prison for Multiple Armed Robberies and Firearms ViolationsRead the Press Release
In Austin today, a federal judge sentenced 40–year-old Austin and Houston resident Marvin Lewis (aka “Beau Louis”), to 77 years in federal prison followed by three years of supervised release for a series of robberies and attempted robberies in Texas in 2014 and 2015 as well as one robbery in Ohio in 2015.
United States Attorney Richard L. Durbin, Jr.; Austin Police Chief Brian Manley; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter; and, Houston Police Chief Art Acevedo made today’s announcement.
In addition to the prison term, United States District Judge Lee Yeakel ordered that Lewis pay $1,596,873 restitution and a $2,400 special assessment. Judge Yeakel also ordered that Lewis forfeit to the government a 2010 Porsche Panamera, approximately $25,000 in U.S. Currency, as well as various pieces of gold and diamond jewelry recovered by authorities.
On June 16, 2017, jurors found Lewis guilty of one count of conspiracy to interfere with Commerce by threats or violence; seven substantive counts of interference with Commerce by threats or violence; twelve counts of money laundering; four counts of possession of a firearm in furtherance of a crime of violence; and, one count of being a felon in possession of a firearm. Jurors acquitted Lewis of two money laundering charges.
Evidence presented during trial revealed that over a two-year period beginning in November 18, 2014, Lewis, who represented himself at trial, was responsible for 13 robberies/attempted robberies and one theft including:
11.18.14 (theft) – Costco in Katy, TX – diamond ring valued at approximately $24,600;
11.28.14 – Jared the Galleria of Jewelry in Austin – 19 diamonds valued at approximately $176,600;
11.28.14 – C. Kirk Root Designs in Austin – 40 rings valued at approximately $9,700;
12.1.14 – Marc Robinson Jewelers in Austin – 6 Rolex watches valued at approximately $83,000;
1.7.15 – Exotic Diamonds in Houston – 25 pieces of jewelry valued at approximately $346,890;
1.7.15 – Deutsch and Deutsch Jewelers in Houston – attempted robbery;
1.22.15 – Wright Pawn & Jewelry Co. in Houston – 18 watches & 13 rings valued at approx. $219,280;
6.25.15 – Jared the Galleria of Jewelry in Strongsville, OH – 48 diamonds valued at approx. $548,000;
11.5.15 – Tiffany and Co. in Austin – attempted robbery;
11.5.15 – Ben Bridge Jewelers in Austin – attempted robbery;
11.5.15 – Jared the Galleria of Jewelry in Austin – 26 diamonds & 14 rings valued at approx. $196,950;
11.5.15 – Costco in Katy, TX – 10 diamond jewelry items valued at approximately $20,800;
11.5.15 – Jared the Galleria of Jewelry in Houston – attempted robbery; and,
11.6.15 – Ben Bridge Jewelers in Austin – attempted robbery.
Jurors also found, based upon the evidence presented, that Lewis structured cash deposits under $10,000 in his bank accounts in order to avoid currency transaction reporting requirements; and, on two occasions, Lewis engaged in financial transactions to conceal the nature of the illegal proceeds by purchasing the 2010 Porsche Panamera and by gambling at a casino in Louisiana.
“With more than 30 prior felony convictions, federal prison is an ideal location for Marvin Lewis to call a permanent home. No longer will Lewis be able to live a lavish lifestyle and a have nothing but complete disregard for others’ personal property,” stated United States Attorney Richard L. Durbin, Jr.
Testimony also revealed that authorities in Austin arrested the man Lewis hired to commit the Texas robberies, 38-year-old Brandon Grubbs of Houston, following the attempted robbery of Ben Bridge Jewelers on November 6, 2015. At the time of his arrest, Grubbs was in possession of a pistol that testimony revealed was given to him by Lewis.
On February 8, 2017, Grubbs pleaded guilty to one count of conspiracy to interfere with Commerce by threats or violence and one count of possession of a firearm in furtherance of a crime of violence. Yesterday, Judge Yeakel sentenced Grubbs to 184 months in federal prison followed by three years of supervised release. Judge Yeakel also ordered that Grubbs pay, jointly and severally with Lewis, $1,047,924 restitution in this case.
“Today's sentencing of Marvin Lewis sends a clear message to those who attempt to hide their ill-gotten gains,” said William J. Cotter, Special Agent in Charge San Antonio Field Office. “All financial transactions leave a trail and IRS CI Special Agents followed the money that proved Lewis lived a lifestyle he could not legitimately afford.”The Austin Police Department, FBI, IRS-CI, and the Houston Police Department investigated this case with assistance from the Travis County Sheriff’s Office, Travis County District Attorney’s Office, Strongsville (Ohio) Police Department and the United States Marshals Service. Assistant United States Attorneys Michael Galdo, Matt Harding and Daniel Castillo prosecuted this case on behalf of the Government.
Hearing Set for Brandon Michael Council in Federal CourtRead the Press Release
Columbia, South Carolina-------United States Attorney Beth Drake announced today that Brandon Michael Council, age 32, of Wilson, North Carolina, will make his initial appearance in a South Carolina courtroom at a hearing set for Thursday afternoon, September 14, 2017, at 2:30 P.M. at the McMillan Federal Building in Florence, South Carolina, 401 West Evans Street, Florence, South Carolina, 29501.
Council has been charged in a criminal complaint with Armed Bank Robbery with a Deadly Weapon Resulting in Death and with Use, Carry, and Possession of a Firearm in Furtherance of a Crime of Violence and appeared in federal court on August 24, 2017, for a hearing in Greenville, North Carolina, shortly after his arrest. Council remains in federal custody.
The case is being investigated by Special Agents with the Federal Bureau of Investigation, Conway Police Department, South Carolina Law Enforcement Division, 15th Circuit Solicitor’s Office, South Carolina Highway Patrol, Horry County Police Department, Horry County Sheriff’s Office, Myrtle Beach Police Department, Wilson North Carolina Police Department, Greenville North Carolina Police Department, Bureau of Alcohol Tobacco and Firearms, and the United States Marshal’s Service.
The United States Attorney stated that all charges are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Hazelwood Man Charged with Drug and Gun OffensesRead the Press Release
PITTSBURGH – One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug trafficking and firearms laws, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned yesterday, named James Weldon Johnson, age 32, of the Hazelwood neighborhood in Pittsburgh, as the sole defendant.
According to the indictment, on January 2, 2017, Johnson possessed with intent to distribute quantities of crack cocaine, powder cocaine, fentanyl, and methamphetamine, as well as possessed a firearm as a convicted felon. Also according to the indictment, he possessed with intent to distribute, and distributed, fentanyl on December 30, 2016.
The law provides for a maximum total sentence of 40 years in prison, a fine of $2,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Rachael L. Dizard is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco and Firearms, along with the Pittsburgh Bureau of Police, 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.
Hammond Man Convicted After 6-Day Jury TrialRead the Press Release
HAMMOND – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Ronnie C. Cosby, age 42, of Hammond, Indiana was convicted of 5 out of 7 federal criminal charges after a 6-day jury trial before District Court Judge Philip P. Simon.
The jury convicted Cosby on one count of sex trafficking of a minor, two counts of production of child pornography and two counts of transporting a minor for prostitution.
According to documents in the case, between December 2014 and February 2015, Cosby caused two minor females to engage in prostitution at his apartment in Hammond, Indiana, and other nearby locations. Cosby met one victim, then 14 years old, through an online dating website. Cosby took sexually explicit images of the victim at his apartment, which he then transmitted to prostitution customers and posted online. Cosby transported a second minor victim, then 15 years old, across state lines to a hotel in Lansing, Illinois, where he caused her to engage in prostitution. Cosby took sexually explicit images of the second victim and posted the images on a website advertising prostitution.
This case was investigated by Homeland Security Investigations with the assistance of the Hammond Police Department, the Federal Bureau of Investigations, and members of the Northwest Indiana Human Trafficking Working Group. This case was prosecuted by Assistant United States Attorneys Abizer Zanzi and Jill Koster.
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Gretna Man Sentenced to 20 Years Imprisonment for Distribution of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans, Jr. announced that GIORGIO COSENZA, age 30, of Gretna, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with distribution of images and videos depicting the sexual exploitation of children.
U.S. District Judge Kurt D. Engelhardt sentenced COSENZA to 240 months imprisonment followed by 5 years of supervised release, and a $100 special assessment. Additionally, COSENZA was ordered to register as a sex offender under the Sex Offender Registration and Notification Act. A restitution hearing is scheduled for November 8, 2017.
According to court documents, law enforcement officials executed a search warrant at COSENZA’s residence on April 14, 2016. Agents obtained the search warrant after observing a posting he authored on a New Orleans-based online classified advertisement website and engaging him in email correspondence. During the email correspondence, COSENZA told a Special Agent of the FBI, acting in an undercover capacity, that he collected images and videos of children being sexually exploited.
During the execution of the search warrant, Special Agents with the FBI seized numerous electronic items including one laptop computer and one smartphone that contained images and videos of child pornography. A forensic examination of the device revealed that COSENZA used the devices to search for, download, and save images and videos of children as young as approximately three-year-old engaging being sexually victimized. The forensic examination located approximately 740 images and 30 videos of prepubescent children engaging in sexually explicit conduct. The contents of his devices also revealed that COSENZA had taken, saved, and subsequently distributed, sexually images of an approximately fourteen-year-old female with whom he stated he had engaged in sexual contact years earlier. Further, COSENZA engaged in text-based correspondence in 2014 and 2015 in which he distributed numerous sexually explicit images of children and, further, expressed an interest in engaging in sexual activity with minors between the ages of six and fourteen years old.
Based on the information contained within COSENZA’S smartphone, agents obtained a search warrant for the contents of his email account. The results of the search warrant revealed the COSENZA had received and distributed additional images depicting the sexual victimization of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Greene County Child Pornographer Faces Life in PrisonRead the Press Release
PITTSBURGH - A former resident of Greene County, Pennsylvania, has pleaded guilty in federal court to charges of production, distribution, and possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
Eric James Stull, age 49, of Clarksville, Pennsylvania, pleaded guilty yesterday before United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, from May 8, 2006 to December 26, 2015, Stull produced 41 video and image files of the sexual exploitation of a minor. Also, on July 21, 2015, Stull knowingly distributed a video containing material depicting the sexual exploitation of a minor to an undercover Pennsylvania State Police Corporal. Further, on April 29, 2016, Stull possessed images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
United States District Judge Donetta W. Ambrose scheduled sentencing for January 8, 2018 at 11 a.m. The law provides for a maximum sentence of life imprisonment for the production of child pornography counts, a maximum sentence of 20 years imprisonment for distribution of child pornography, a maximum sentence of 10 years imprisonment for possession of child pornography, a maximum term of supervised release of life, and a fine of $10,250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Greene County District Attorney’s Office conducted the investigation that led to the prosecution of Stull.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Government Contractor and CEO Settle Civil Fraud AllegationsRead the Press Release
ALEXANDRIA, Va. – Calnet, Inc., a Reston based government contractor and its Chief Executive Officer and President, Kaleem Shah, also of Reston, agreed to pay $300,000 to settle allegations that Calnet and Shah submitted false information in Calnet’s bid proposal to the Federal Aviation Administration (“FAA”) to win an FAA contract for IT help desk services.
The settlement resolves civil claims alleged in a qui tam complaint filed against Calnet and Shah that allege that Calnet misrepresented its past private sector experience in providing help desk services in its proposal to the FAA in 2009 in an effort to win a contract to provide the FAA’s Aviation Safety office with technology support services, including help desk and desk side services throughout North America and at several international sites. FAA awarded the contract to Calnet.
The False Claims Act permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in federal district court in the Eastern District of Virginia.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the Department of Transportation’s Office of Inspector General.
The matter was investigated by Assistant U.S. Attorney Christine Roushdy and Department of Transportation Office of Inspector General. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Four Indicted for Roles in Selling Illegal Depressant Etizolam over the InternetRead the Press Release
PITTSBURGH – One resident of Alaska and three residents of Florida have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit offenses against the United States, Acting United States Attorney Soo C. Song announced today. Two of the defendants were also charged with conspiracy to commit money laundering.
The two-count indictment, returned on August 22 and unsealed today, named William Kulakevich, a/k/a Vilyam Kulakevich, 31, of Delta Junction, Alaska; and Julia Fees, 25, Jacob Bassett, 20, and Ryan Bassett, 34, all of Odessa, Florida.
According to the indictment presented to the court, Kulakevich owned the website Etizy.com and sold the drug Etizolam to customers in the United States, including in the Western District of Pennsylvania. The Food and Drug Administration (FDA) has not approved Etizolam for use as a drug, and thus it cannot be sold or prescribed in the United States. Fees was responsible for managing Etizy.com, and the indictment alleges that Kulakevich and Fees conspired to launder the proceeds of Etizolam sales. Jacob and Ryan Bassett both played a role in the operation of Etizy.com and the illegal sale of Etizolam to customers throughout the United States.
According to the indictment, Etizolam is a drug known as a thienodiazepine, a class of drugs chemically related to benzodiazepines, which produce central nervous system depression. Physicians may prescribe FDA-approved benzodiazepines to treat insomnia and anxiety, but benzodiazepines and thienodiazepines also carry risks of dependency, toxicity, and even fatal overdose, particularly when combined with other central nervous system depressants.
While prescription drugs containing Etizolam have been approved in some countries outside of the United States, such as India, Ireland, and Japan, the FDA has not approved any drugs containing Etizolam in the United States. Accordingly, Etizolam cannot be legally imported, distributed, or prescribed in the United States for use as a drug.
For Kulakevich and Fees, the law provides for a maximum total sentence of twenty years in prison, as well as a fine of not more than $500,000.00, or twice the value of the laundered funds, whichever is greater. For Jacob and Ryan Bassett, the law provides for a maximum total sentence of five years in prison, a fine of not more than $250,00.00, or both. 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 defendants.
The U.S. Food and Drug Administration, Office of Criminal Investigations, assisted by the United States Postal Inspection Service, Homeland Security Investigations, and the Pennsylvania State Police, conducted the investigation leading to the indictment in this case. Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Wedding Photographer Sentenced to 10 Years for Pornography Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former wedding photographer in Raymore, Mo., was sentenced in federal court today for a fraud scheme to dupe dozens of women into having sex – which he recorded – under the guise they were rehearsing for a pornography movie.
Mario Ambrose Antoine, 34, of Raymore, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
On May 12, 2017, Antoine pleaded guilty to one count of wire fraud. Antoine admitted that he defrauded numerous victims in a scheme that lasted from Aug. 28, 2011, until Oct. 11, 2016. Antoine, posing in various roles as a company owner, recruiter, talent manager, photographer and videographer for multiple fictitious companies and private modeling websites (such as “Playboy Worldwide,” and “Playboy Asia”), induced women to engage in sexual and pornographic activity with him. Antoine promised the women, who signed contracts and modeling release forms, they would be paid thousands of dollars by these fictitious entities for their auditioning and modeling activity.
More than two dozen women victimized by this scheme were identified and located by investigators. Victims of the wire fraud scheme were promised payments cumulatively totaling at least $550,000 and as much as $1.5 million.
According to court documents, weeks and months would pass and none of these women were ever paid. When the young women asked when the money would arrive, they were given excuses. Eventually, in many cases, Antoine engaged in a blackmail and extortion scheme. He created fake Facebook profiles through which he contacted the friends, boyfriends or employers of these women and informed them that the young woman was a porn star. These messages would often be accompanied by pictures of the young women engaged in sexual activity.
This case was prosecuted by Assistant U.S. Attorneys Patrick D. Daly and David A. Barnes. It was investigated by the FBI, the Raymore, Mo., Police Department and the Office of the Missouri Attorney General.
Former Soldier Sentenced in Connection with Theft and Conversion of $289,276 Worth of Government PropertyRead the Press Release
RALEIGH – United States Attorney John Stuart Bruce announced that today in federal court, Kenneth preston blevins, 29, of Lexington, South Carolina, was sentenced to 51 months imprisonment followed by 3 years of supervised release for theft and conversion of government property by Senior United States District Judge W. Earl Britt. BLEVINS was also ordered to pay $289,276 in restitution. BLEVINS previously pled guilty to that charge on May 1, 2017.
According to information in the public record, defendant KENNETH PRESTON BLEVINS was a Specialist (E-4) in the United States Department of the Army assigned to the Forward Support Company of the 1st Battalion, 3rd Special Forces Group. BLEVINS was a cook with a military occupational specialty of “92G,” that is, a food service specialist responsible for the preparation and service of food in field or garrison food service operations. From on or about September 1, 2012 through April 30, 2013, BLEVINS was deployed with his unit to Afghanistan. BLEVINS was assigned to the dining facility at Camp Dyer; the Special Forces camp at Jalalabad Air Base, a United States military base located approximately 80 miles east of Kabul, Afghanistan. At Camp Dyer, BLEVINS was responsible for overall operations of the dining facility. From April 22, 2014 through November 4, 2014, BLEVINS was re-deployed to Camp Dyer. Upon arriving at Camp Dyer in 2012, BLEVINS conspired with another local Afghan to steal and sell U.S. military Class 1 supplies, which include food and beverages such as protein powder and energy drinks, at a local bazaar off base. BLEVINS continued the scheme during his second deployment. To further the success of the scheme, BLEVINS threatened to fire local Afghan nationals if they did not participate in the theft scheme.
It is estimated that BLEVINS and his co-conspirators stole $289,276 worth of government Class 1 supplies. BLEVINS made approximately $50,000 in profits from the theft scheme. He wired $34,500 home via Western Union with the help of a local Afghan. He smuggled the remaining proceeds back to the United States by concealing the money in a TV.
“This prosecution demonstrates the commitment of our office, and the U.S. Department of Justice, to bring to justice those who steal from the American taxpayer and jeopardizes the mission of the brave men and women serving this nation overseas,” commented U.S. Attorney John Stuart Bruce.
John Spoko, Inspector General for Afghanistan Reconstruction (SIGAR) stated, "This case is an important reminder that crimes, no matter how big or small, committed by U.S. soldiers serving in Afghanistan betray the men and women serving honorably beside them."
Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office, commented, "This former U.S. Army Supply Specialist, while overseeing food supplies to our troops deployed to Afghanistan, betrayed his position of trust purely out of greed and for personal profit. This soldier conspired to steal hundreds of thousands of dollars in subsistence items intended for his fellow soldiers serving in a combat environment. Corruption and theft on this large scale undermines the integrity of the Department of Defense, wastes precious American taxpayer dollars, and detracts from the combat readiness and well-being of our Warfighters."
"The United States Army Criminal Investigation Command, Major Procurement Fraud Unit, along with our investigative partners and the U.S. Attorney's Office, will bring to justice those who attempt to divert funds or property from the U.S. Army and undermine the integrity of the Department of Defense," said Special Agent in Charge James T. Wallis, of the U.S. Army Criminal Investigation Command's Southeast Fraud Field Office. "Corruption and theft in the U.S. Army supply lines jeopardizes the safety and readiness of our warfighters."
The case was investigated by the Defense Criminal Investigation Service (DCIS), Army Criminal Investigation Command (CID), the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR), and the Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant United States Attorney Banumathi Rangarajan.
Former Prison Transport Officer Indicted for Sexual Assault and Possessing a Firearm in Furtherance of His Sexual AssaultRead the Press Release
A federal grand jury in Little Rock, Arkansas, returned a two-count indictment against Eric Scott Kindley, 49, a former prison transport officer, for crimes related to his sexual assault of a woman in his custody, and using his firearm in furtherance of the assault.
Count One of the indictment charges Kindley with committing civil rights offenses that resulted in bodily injury and includes the use of a dangerous weapon, kidnapping, and aggravated sexual abuse. Count Two charges Kindley with knowingly possessing a firearm in furtherance of these crimes of violence.
Kindley was indicted on June 29, 2017, in Phoenix, Arizona, for committing similar offenses related to sexual assaults he committed on a different woman in his custody, and as in this indictment, possessing his firearm in furtherance of those assaults.
These indictments stem from Kindley’s arrest in Stockton, California, on June 1, 2017, in connection with a criminal complaint filed in the District of Arizona. According to arrest paperwork, Kindley operated Group 6, LLC doing business as Special Operations Group, a company that local jails throughout the country hire to transport individuals who have been arrested on out-of-state warrants. The probable cause affidavit associated with the criminal complaint alleged that from January through May of this year, Kindley engaged in sexual misconduct in his Dodge Caravan with three different female prisoners during three different transports. The transports were from California to Arizona, Alabama to Arizona, and Mississippi to New Mexico. In each instance, the victim was handcuffed and restrained, and taken to secluded locations where Kindley sexually assaulted her. All the while, Kindley threatened each victim with his firearm and warned her that he will get away with his conduct because no one will believe her.
Following Kindley’s arrest in the Eastern District of California, the court ordered that Kindley be detained and transported to the District of Arizona, where he remains in custody.
This investigation remains ongoing. Anyone with additional information is encouraged to call the Phoenix Division of the FBI at (623) 466-1999, or can email the Criminal Section of the Civil Rights Division at the U.S. Department of Justice at [email protected].
Kindley faces a maximum of life in prison if convicted of the crimes charged, and a mandatory minimum of five years in prison for possession of the firearm in this indictment. If he is convicted of possession of a firearm in both indictments, he faces a mandatory minimum of twenty-five years in prison.
An indictment is merely a formal accusation of criminal conduct, and Kindley is presumed innocent unless proven guilty.
This case is being investigated by the Phoenix Division of the FBI and is being prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice.
Floridian Charged with Cocaine PossessionRead the Press Release
PITTSBURGH - A resident of Lauderhill, Florida, has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal drug laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Racoco Williams, age 35, of Lauderhill, Florida.
According to the indictment, on August 29, 2017, Williams possessed with intent to deliver 5 kilograms or more of cocaine. The earlier filed criminal complaint alleged that Williams was staying at a room at the Extended Stay Hotel in Monroeville, Pennsylvania. A federal search warrant of his room revealed 17 kilograms of cocaine and more than $192,000 in cash.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Williams is currently detained and has been ordered to be held without bond pending trial.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Department of Homeland Security, United States Postal Inspection Service and the Pennsylvania State Police 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.
Felon from Silver City Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Joseph A. Jacobs, 35, of Silver City, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms laws under a plea agreement with the U.S. Attorney’s Office.
Jacobs was arrested in May 2017, on an indictment charging him with being a felon in possession of a firearm and ammunition on Feb. 1, 2016, in Luna County, N.M. According to the indictment, Jacobs was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of a controlled substance with intent to distribute.
During today’s proceedings, Jacobs pled guilty to the indictment and admitted that on Feb. 1, 2016, he possessed a handgun and multiple rounds of ammunition despite his status as a convicted felon prohibited from possessing firearms or ammunition. At sentencing, Jacobs faces a statutory maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by Homeland Security Investigations and the Deming Police Department. Assistant U.S. Attorney Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Federal Jury Finds New Jersey Man Guilty in Heroin Distribution SchemeRead the Press Release
PITTSBURGH - A former New Jersey resident has been convicted in federal court for one count of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
Aldwin Vega, age 42, formerly of Elizabeth, New Jersey, was convicted yesterday by a federal jury of conspiracy to possess with intent to distribute and distribute one kilogram or more of heroin. Jury selection began on September 5, 2017, and Senior Judge Reggie B. Walton of the United States District Court for the District of Columbia presided over the trial.
For the crime of conspiracy to possess with intent to distribute and distribute one kilogram or more of heroin, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Conor Lamb and Shanicka Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution, conviction and sentencing of Aldwin Vega.
Federal Jury Finds Dona Ana County Man Guilty on Conspiracy and Transporting Illegal Aliens ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., found Jose Luis Zamora, 25, a legal permanent resident residing in Rincon, N.M., guilty on an indictment charging him with conspiracy and transporting illegal aliens. The guilty verdict was announced by Acting U.S. Attorney James D. Tierney, Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso, and El Paso Sector Chief Border Agent Jeffrey D. Self of the U.S. Border Patrol.
Zamora was arrested on Feb. 14, 2017, on a criminal complaint charging him with conspiracy to transport illegal aliens. He subsequently was indicted on April 19, 2017, and charged with conspiracy and three counts of transporting illegal aliens. Zamora’s trial began on Sept. 11, 2017, and concluded late yesterday afternoon when the jury returned a guilty verdict on all four counts of the indictment.
The evidence at trial established that on Feb. 11, 2017, U.S. Border Patrol agents encountered seven individuals who were attempting to circumvent the U.S. Border Patrol Checkpoint on Highway 185 in Dona Ana County, N.M. The agents arrested the seven individuals after determining that they were undocumented aliens. Three of the undocumented aliens testified during the trial, stating that Zamora picked them up near the border in El Paso, Tex., after they were smuggled into the United States from Juarez, Mexico, on Feb. 8, 2017. They admitted paying $1,500, $4,000 and $4,500, respectively, to be smuggled into the United States.
The undocumented aliens testified that they crossed the border into the United States, Zamora picked them up in a van, and drove them to a trailer and later to a hotel in Las Cruces where they stayed for two days. On Feb. 11, 2017, Zamora drove the undocumented aliens north on Interstate 25 before pulling off the road before the U.S. Border Patrol checkpoint. Zamora instructed them to walk around the U.S. Border Patrol checkpoint so they would not be detected, telling them that he would pick them up in two hours. Border Patrol agents arrested the undocumented aliens as they were walking around the checkpoint to meet Zamora.
The jury deliberated approximately one hour before returning its guilty verdict.
Zamora has been in federal custody since his arrest and remains in federal custody pending a sentencing hearing, which has yet to be scheduled. At sentencing, Zamora faces a statutory maximum penalty of ten years in federal prison.
This case was investigated by the Las Cruces office of Homeland Security Investigations and U.S. Border Patrol, and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez and Special Assistant U.S. Attorney Kathleen E. Robeson of the U.S. Attorney’s Las Cruces Branch Office.
Fayetteville Woman Sentenced to over 6 Years in Federal PrisonRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Hjestie Olitta Sommer, age 40, of Fayetteville, was sentenced today to 77 months in federal prison followed by three years of supervised release and was ordered to pay a $1,900.00 fine on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in August of 2016, the Fourth Judicial District Drug Taskforce (4th JDTF) learned that methamphetamine was being distributed in the Springdale, Arkansas area by Sommer. In August of 2016, the 4th JDTF arranged and conducted a controlled purchases of methamphetamine from Sommer. The substance purchased was sent to the Arkansas State Crime Lab for testing. The lab determined that it was a mixture of a substance that contained methamphetamine weighing approximately 7.1 grams.
Sommer was indicted by a federal grand jury in March, 2017 and plead guilty in May, 2017.
This case was investigated by the 4th JDTF. Assistant United States Attorney Sydney Butler prosecuted the case for the United States.
Executive Sentenced for $10.5 Million Bank FraudRead the Press Release
RICHMOND, Va. – A Charlottesville man was sentenced today to 51 months in prison for a bank fraud scheme that resulted in a loss of $10.5 million to Fauquier Bank.
Michael P. Klekamp, 68, pleaded guilty on December 9. According to court documents, Klekamp was the President of Capitol Components and Millwork, Inc. (CCM), of Culpeper. CCM was involved in the manufacture, fabrication and distribution of architectural building material millwork items for mid to high-end residential and commercial buildings. To run its business, CCM drew money from a standard secured revolving line of credit line at Fauquier Bank. The credit line agreement required CCM to submit periodic reports to the Bank about the value of the underlying collateral, such as accounts receivable and inventory, and the creditworthiness of CCM.
According to court documents, Klekamp fraudulently maintained the credit line by misrepresenting the true financial condition of CCM and made a variety of false statements to the bank about the true amount and quality of the collateral of CCM. On Oct. 25, 2015, Klekamp submitted documents to the bank fraudulently stating there was approximately $17 million of total accounts receivable and inventory securing the bank’s $11.5 million credit line, while in actuality there was no more than $3.4 million of total accounts receivable and inventory. Contrary to the fake financial statements submitted to the bank, CCM was not able to repay the interest or principal amount of the loan, resulting in a loss of approximately $10.5 million as a result of the scheme.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. The case was investigated by Richmond Division, Charlottesville Resident Agency of the FBI. Assistant U.S. Attorney David T. Maguire prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-141.
Engineering Firm Owner Charged with Bribery of Washington Township OfficialsRead the Press Release
An owner of an engineering firm, Fazullah Khan, 56, of Troy, was indicted today by a grand jury with four counts of bribery, Acting United States Attorney Daniel L. Lemisch announced.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
The indictment alleges that in 2014, Khan bribed public officials of Washington Township with $11,000 in cash, a free fishing trip and a secret financial interest in a property development deal. Unbeknownst to Khan, the township officials he was attempting to bribe were working with the FBI.
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.
Each of the four bribery charges carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.
An indictment is only a charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Employee Indicted for Embezzling $500,000 from Medical PracticeRead the Press Release
NEWPORT NEWS, Va. – A former employee of a medical practice in Williamsburg was indicted by a federal grand jury today on fraud charges for allegedly embezzling over $500,000 from her employer.
Sherea Darnell, 33, of Southfield, Michigan, has been charged with wire fraud, bank fraud, use of an unauthorized access device, and filing false tax returns. According to court documents, from March 2012 through September 2016 Darnell was employed as the administrator at Cullom Eye and Laser Center in Williamsburg.
According to allegations in the indictment, Darnell was responsible for the administrative functions of the office and was provided with two business credit cards to be used for business purposes such as supplies and office equipment. The credit cards were paid automatically each month by Cullom’s business bank accounts. When Darnell resigned in September 2016 and moved to Michigan, Cullom began reviewing the practice’s bank accounts and saw that large payments had been made to office’s credit cards. Analysis of the business credit card statements and revealed numerous charges on the cards that what were obviously personal in nature, including paying for her son’s private school tuition, maid services for her home, entertainment, dining, high end clothing, jewelry, and airline travel for Darnell and members of her family to resorts around the country and abroad. Additionally, over $90,000 in cash advances were made on the cards.
Darnell faces a maximum penalty of 30 years on each count of bank fraud, 20 years on each count of wire fraud, and 3 years on each count of filing false tax returns, if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly A. Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement. Managing Assistant U.S. Attorney Howard J. Zlotnick is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-92.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Eight Members of the Jalisco New Generation Cartel Charged in Large Scale Methamphetamine Drug Trafficking OrganizationRead the Press Release
DALLAS — Eight members or associates of the Jalisco New Generation Cartel have been charged in a federal indictment, unsealed today, with felony offenses stemming from their role in a large scale methamphetamine drug trafficking organization that operated in the Dallas and Desoto areas, announced U.S. Attorney John Parker of the Northern District of Texas.
Six of the defendants had been charged in a federal complaint filed earlier this month. All eight defendants, listed below, are charged with one count of conspiracy to possess with intent to distribute a controlled substance and at least one count of possession with intent to distribute a controlled substance. The defendants will remain in custody pending further court proceedings.
Marco Antonio Gonzalez, 31,
Ricardo Mendez-Negrete, aka “Jose Negrete,” 42
Jose Trinidad Medina Tapia, aka “Alex Aviles,” 31,
Miguel Carrillo-Ayala, aka “Tomas Rodriguez,” 38
Alma Zoraida Borrayo-Villasenor, 32,
Javier Guizar-Hernandez, aka “Jorge Hernandez,” 28,
Hector Garcia-Gomez, 36
Ivan Gonzalez, 22
Borrayo-Villasenor, Carrillo-Ayala, Tapia, Guizar-Hernandez are all citizens of Mexico and were in the United States illegally when the offenses charged occurred.
“Drug trafficking networks like this one are responsible for fueling north Texas’ largest drug threats, including methamphetamine and heroin,” said U.S. Attorney Parker. “Working with our local and federal law enforcement partners to dismantle them and bring them to justice, as we did here, is a top priority for this office.”
According to the indictment, in August 2016 through August 31, 2017, the defendants were involved in the trafficking of thousands of kilograms of methamphetamine. The defendants utilized multiple locations in residential neighborhoods in Dallas and Desoto to serve as laboratories for the recrystallization of methamphetamine. An automotive business was also utilized to store large quantities of narcotics and proceeds of drug sales were used to purchase vehicles in an effort to disguise the source of those funds.
Law enforcement executed search warrants on August 31, 2017 and seized approximately 750 kilograms of methamphetamine in both finished and liquid form, which was valued at $5 - $7 million, approximately 2 kilograms of cocaine and 6 kilograms of heroin.
An indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, statutory penalties range up to life in federal prison.
The Drug Enforcement Administration investigated the case with assistance from the Ellis County Sheriff's Office, Garland Police Department, Waxahachie Police Department, Dallas Police Department, Internal Revenue Service, and Texas Comptroller’s Office.
Assistant U.S. Attorney P.J. Meitl is prosecuting.
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Doctor Convicted of $50 Million Medicare Fraud Scheme Sentenced to 200 Months in Federal PrisonRead the Press Release
DALLAS – Noble U. Ezukanma, 57, of Fort Worth, Texas, was sentenced today by U.S. District Judge Jane Boyle to 200 months in federal prison and ordered to pay $34,003,151.24 in restitution for his role in an over $50 million Medicare fraud scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
Ezukanma was convicted, following a five-day trial, in March 2017 of one count of conspiracy to commit health care fraud and six counts of health care fraud. He was taken into custody following the verdict.
“This is the kind of flagrant fraud that drives up health care costs to consumers everywhere,” said U.S. Attorney Parker. “In return, this office will do everything we can to drive up the costs to those who choose to engage in health care fraud as a profession.”
Co-defendants Oliva A. Padilla, 57, and Ben P. Gaines, 55, have pleaded guilty to their role in the scheme and are awaiting sentencing. The following co-defendants have also pleaded guilty and were previously sentenced:
Myrna S. Parcon, a/k/a “Merna Parcon,” 62, 120 months and $51,497,930.87 in restitution Ransome N. Etindi, 57, 30 months and $18,309,171.21 in restitution
Lita S. Dejesus, 70, 24 months and $4,193,655.78 in restitution
According to evidence presented at trial, Ezukanma, Parcon, and Dejesus owned/operated US Physician Home Visits (USPHV), a/k/a “Healthcare Liaison Professionals, Inc.” located on Viceroy Drive in Dallas. Parcon was the owner/manager and Ezukanma was a licensed medical doctor who had an ownership interest in USPHV. Both Ezukanma and Etindi provided their Medicare number to the company to use to submit Medicare claims. Dejesus served in various roles at USPHV, including office manager.
Gaines formed A Good Homehealth (A Good), a/k/a “Be Good Healthcare, Inc.,” which was located in the same office as USPHV. Parcon, who owned and operated A Good, purchased the company through a “straw” buyer; both Gaines and Parcon concealed Parcon’s ownership.
Parcon and Padilla formed Essence Home Health (Essence), a/k/a “Primary Angel, Inc.,” located on Midway Road in Addison, Texas.
While the three companies appeared to be set up as three separate entities, the companies worked as one; the same employees often worked for all three companies and were often paid by all three companies.
According to evidence presented at trial, from January 1, 2009 to approximately June 9, 2013, Ezukanma and Etindi certified 94% of the Medicare beneficiaries receiving home health services from A Good, and 65% of the Medicare beneficiaries receiving home health services from Essence. Had Medicare known of the true ownership and improper relationship between the three companies, Medicare would not have allowed these companies to enroll in the program and bill for services.
USPHV submitted billing primarily under Dr. Ezukanma’s Medicare provider number, regardless of who actually performed the service. They billed at an alarming rate, generally billing for only the most comprehensive physician exam, and always adding a prolonged service code. USPHV submitted claims to Medicare for physician visits of 90 minutes or more, when most visits took only 15 to 20 minutes. Most all of USPHV patients came from home health companies soliciting certifications and recertifications for home health. More than 97% of USPHV Medicare patients received home health care, whether they needed it or not. The false certifications caused Medicare to pay more than $40 million for fraudulent home health services.
The case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, the FBI, the and the Texas Attorney General’s Medicaid Fraud Control Unit and were brought as part of the Medicare Fraud Strike.
Assistant U.S. Attorneys Katherine Pfeifle and Douglas Brasher prosecuted.
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