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Thursday 17 August 2017
White Plains Press Conference TodayRead the Press Release
There will be a press conference today in White Plains to announce federal criminal charges against 31 members and associates of two rival street gangs in Poughkeepsie. The charges include the murders of Caval Haylett in March 2016 and Daquell LeBlanc in December 2012, as well as racketeering, racketeering conspiracy, attempted murder, narcotics, and firearms offenses. Relevant charging documents are attached.
WHO: Joon H. Kim, Acting United States Attorney for the Southern District of New York
William F. Sweeney, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation
William V. Grady, Dutchess County District Attorney
Thomas Pape, Chief of the City of Poughkeepsie Police Department
WHAT: Press Conference
WHEN: Thursday, August 17, 2017 at 12:00 p.m.
WHERE: U.S. Attorney’s Office, Southern District of New York, White Plains Division
300 Quarropas Street
Third Floor Library
White Plains, NY
CONTACT: James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
NOTE: Please silence all cell phones, PDAs, and pagers before start of press conference.
Union Man Sentenced to 15 Years for Illegal Possession of FirearmRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Dennis Earl Byrd, age 35, of Union, South Carolina, was sentenced to 15 years imprisonment, followed by 5 years of supervised release, after pleading guilty to being a felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g). United States District Judge Bruce Howe Hendricks, of Greenville, sentenced Byrd on August 16, 2017.
At an earlier guilty plea hearing, Assistant U. S. Attorney Jeanne Howard, established that on August 25, 2015, Byrd was arrested after an altercation with Union Police Officers while they were responding to a disturbance call. Byrd was found in possession of a loaded .32 caliber revolver. Because of his prior criminal history including three prior convictions for distribution of crack cocaine and a conviction for lynching, 2nd degree, Byrd is considered an armed career criminal and subject to a statutory mandatory minimum sentence of 15 years.
The case was investigated by agents of the FBI Safe Streets Task Force, Union Police Department, and the Union County Sheriff’s Office. Assistant United States Attorney Jeanne Howard of the Greenville office handled the case.
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Two Sentenced in Stolen Identity Theft and Money Laundering SchemeRead the Press Release
DALLAS — Latonya Lanette Carson, 43, of Dallas, Texas and Smith Olsola Akin, 34, of Plano, Texas were sentenced this afternoon for their role in a scheme to steal personal identifying information, use it to fraudulently obtain income tax refunds, and then launder those funds, announced U.S. Attorney John Parker of the Northern District of Texas.
Following a four-day trial in October 2016 before Chief U.S. District Judge Barbara M. G. Lynn, a federal jury convicted Carson of one count of conspiracy to commit theft of public funds, access device fraud and wire fraud; three counts of aggravated identity theft; one count of conspiracy to commit money laundering; four counts of money laundering; and four counts of wire fraud. Judge Lynn sentenced Carson to 120 months in federal prison.
Akin pleaded guilty to one count of conspiracy to commit money laundering in May 2016. Judge Lynn sentenced Akin to 135 months in federal prison.
Three additional defendants were charged in the scheme. Segun Edomwonyi, a/k/a “Benny O. Prince,” and Titalayo Idowu Olukoya remain fugitives. Charges were dismissed against Ricardo Garth Solomon.
According to evidence presented at Carson’s trial, beginning in 2013, Carson and Akin, along with other coconspirators, were involved in a scheme in which they filed false tax returns using stolen identities, some of which belonged to incarcerated individuals. The coconspirators converted the tax refunds from debit/Green Dot cards, using shell company bank accounts, into cash and cashier’s checks used to purchase vehicles that they then shipped to Nigeria.
Between May 2013 and May 2014, the defendants and their conspirators paid $1,184,950 from these accounts to purchase used cars from wholesale dealer auctions in Dallas County, and between January 2012 and January 2015, the defendants and their conspirators exported approximately 279 used cars to Nigeria.
The FBI, IRS Criminal Investigation, and U.S Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. The case was prosecuted by Assistant U.S. Attorneys Christopher Stokes and Camille Sparks.
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Two Men Plead Guilty in $25 Million Healthcare Fraud Conspiracy Targeting New Jersey Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Two men today admitted defrauding New Jersey state health benefits programs and other insurers out of $25 million by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
Matthew Tedesco, 42, a pharmaceutical sales representative from Linwood, New Jersey, and Robert Bessey, 43, of Philadelphia, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them with conspiracy to commit health care fraud.
“Using a network of recruiters, doctors, and state and local government employees, the defendants defrauded the state of New Jersey and other health insurers out of millions of dollars by getting reimbursed for phony prescriptions on expensive and medically unnecessary compounded medications,” Acting U.S. Attorney Fitzpatrick said. “This conduct, which fraudulently exploited state health benefits programs and left New Jersey taxpayers on the hook for millions in losses, is especially brazen in an era when health insurance is a constant concern for many Americans.”
“While many New Jersey residents were hard at work trying to pay for adequate healthcare insurance coverage for their families, these two individuals were illegally bilking our system for millions,” said Attorney General Porrino. “Law enforcement partners across the state are attacking fraud on all fronts, prosecuting those who steal while honest citizens struggle. I want to thank the United States Attorney's Office for the District of New Jersey, Acting U.S. Attorney Fitzpatrick and all of our federal partners for unraveling and successfully prosecuting this complicated scheme.”
“These types of schemes and kickback arrangements cripple the healthcare industry and steal money from hardworking taxpayers by driving up the price of insurance,” Special Agent in Charge Timothy Gallagher of the FBI Newark Division said. “The FBI in conjunction with our federal and local law enforcement partners will continue to investigate allegations of fraud that undermine the integrity of our health care system.”
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Tedesco, a leader in the conspiracy, Bessey, a recruiter in the conspiracy, and others persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that an entity referred to in the informations as the “Pharmacy Benefits Administrator” would reimburse pharmacies thousands of dollars for a one-month supply of certain prescription compounded medications, including pain, scar, antifungal, and libido creams, as well as over $10,000 per month for certain vitamin combinations.
The conspirators also learned that the Pharmacy Benefits Administrator managed the prescription drug benefit for some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers. The Pharmacy Benefits Administrator provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
The conspirators recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Tedesco and Bessey’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to other members of the conspiracy.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, Tedesco, Bessey, and others would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They would select the compounded medications that paid the most and order 12 months of refills without regard to their medical necessity.
Tedesco and others had prescriptions signed by doctors who never saw the patients and never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator. Tedesco and others gave money and other benefits to doctors who signed the prescriptions and individuals who agreed to receive the medication.
According to the informations, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey. Over $25 million of that was for prescriptions arranged by Tedesco and the conspirators working for him. Tedesco admitted receiving approximately $11,166,844.20 for submitting those fraudulent claims. He paid some of that money to the conspirators who worked for him. Bessey received approximately $485,540.09 for his role in the scheme.
“The U.S. Department of Labor Office of Inspector General is committed to combating illegal prescription drug schemes, like compounded medication fraud, particularly when they victimize programs administered by the Department of Labor. We will continue to work with our colleagues in other federal and state law enforcement agencies to aggressively investigate allegations of this nature,” said Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor, Office of Inspector General.
“Healthcare programs are in place to provide the American taxpayer with valuable benefits, not for individuals like Mr. Tedesco and Mr. Bessey to exploit and pilfer in order to line their own pockets,” stated Jonathan D. Larsen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office.
As part of his plea agreement, Tedesco must forfeit $11,166,844.20 in criminal proceeds and pay restitution of at least $28,773,906.97. Bessey agreed to forfeit $485,540.09 and pay restitution of at least $2,693,192.63.
Each defendant faces a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss caused by the offense. Sentencing for both defendants is set for Dec. 4, 2017.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gallagher in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Larsen in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Mikulka, with the investigation leading to the guilty pleas. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel:
Matthew Tedesco: Michael Elliott Esq., Dallas, Texas
Robert Bessey: Brian J. McMonagle Esq., Philadelphia
Two Men Indicted for Growing Marijuana on Public Land in Tehama CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Gabriel Sanchez-Madris, 41, and Mark Espinoza, 26, charging them with manufacturing marijuana and conspiring to do the same, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sanchez-Madris and Espinoza were arrested by law enforcement on August 1, 2017, following a search of a marijuana-cultivation site in the Cub Creek area of Lassen National Forest in Tehama County. The site contained approximately 2,640 marijuana plants.
This case is the product of an investigation by the United States Forest Service, the Tehama County Sheriff’s Office, and the California Department of Fish and Wildlife.
If convicted of the marijuana charges, Sanchez-Madris and Espinoza both face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations; the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two Men Charged with Growing Marijuana on Public LandsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Uriel Madrigal-Perez, 23, of Bakersfield, and Silviano Madrigal-Herrera, 27, of Perris, charging them with cultivation of marijuana and conspiring to cultivate marijuana, U.S. Attorney Phillip A. Talbert announced.
According to court documents, both men were arrested in the early morning hours of August 4, 2017, as they left an area that was used to drop off supplies and personnel for a remote clandestine marijuana grow in the in the Upper Kern Canyon area of Sequoia National Forest in Tulare County. The grow was found to contain in excess of 1,000 marijuana plants.
This case is the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, both defendants faces a maximum statutory penalty of a minimum of 10 years to life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Illegal Aliens Head to Prison for Trafficking MethRead the Press Release
McALLEN, Texas – Two illegal aliens who resided in Texas have been ordered to federal prison following their convictions of possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Mexican national Johnathan Ricardo Alvarez, 24, and El Salvadorian national Melvin Noel Vasquez, 33, who resided in Mission and Houston, respectively, pleaded guilty May 31, 2017.
Today, U.S. District Judge Micaela Alvarez ordered Alvarez to serve a 200-month sentence, while Vasquez received a 147-month term of imprisonment. At the hearing, additional testimony was presented establishing that the methamphetamine was imported from Mexico in a liquid form and converted into crystalized methamphetamine at an apartment in Harris County for further distribution. In handing down the sentence, Judge Alvarez noted the defendants had a choice not to involve themselves in drug trafficking but chose to anyway without consideration of the harm to the community. Not U.S. citizens, both are expected to face deportation proceedings following release from prison.
Co-defendant Oscar Diaz-Pineda, 27, a Mexican national who resided in Houston, also pleaded guilty May 31, 2017, and is set for sentencing Sept. 28, 2017.
At the time of his plea, Alvarez admitted to brokering a drug transaction with an undercover agent via telephone on Dec. 7, 2016. Two days later, Vasquez and Diaz-Pineda met with the undercover agent in Houston to deliver five kilograms of methamphetamine on behalf of Alvarez. Agents arrested Vasquez and Diaz-Pineda that same day and seized the narcotics. Alvarez was subsequently arrested on April 16, 2017, in South Texas.
All three have been and will remain in custody.
The Drug Enforcement Administration conducted the investigation along with task force officers from the Harris County Sheriff’s Office, police departments in Humble and Missouri City and the Texas Department of Public Safety. Assistant U.S. Attorney Juan F. Alanis is prosecuting the case.
Two Detroit Men Sentenced for Robbing Springfield Jewelry StoreRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two Detroit, Mich., men were sentenced in federal court today for robbing a Springfield, Mo., jewelry store.
Justin B. Anderson, 33, and Mark Anthone Pitts, 32, both of Detroit, were sentenced in separate appearances before U.S. District Judge Beth Phillips. Anderson and Pitts were each sentenced to five years in federal prison without parole. The court also ordered them to pay $78,374, for which they are jointly and severally liable.
Anderson and Pitts each pleaded guilty to robbing Maxon’s Diamond Merchants, 2622 S. Glenstone Ave., Springfield, on Sept. 1, 2016.
An unknown African-American male was buzzed through the secured front door of the jewelry store. When the male entered the store, he refused to close the front door. Employees approached the male, telling him to close the door. When the individual refused to shut the door, the employees attempted to push him out of the store. The male then physically shoved an employee as he kept the front door open.
Anderson and Pitts then entered the store. They pulled out small sledgehammers, causing employees to retreat from the front of the store out of fear of being harmed. Anderson and Pitts used the sledgehammers to break the glass counters and display cases that contained Rolex watches. Anderson and Pitts then grabbed several Rolex watches and fled from the store. Officers later determined that 11 Rolex watches, valued at a total of $118,000, were stolen in the robbery.
Cell phone video from a store employee showed the getaway car – a 2000 Dodge Stratus that had been stolen from a local Target department store earlier that day – waiting for the three men. Anderson and Pitts, however, failed to escape in the getaway car, which left the scene without them. Pitts was arrested after store employees who followed him took police officers to his location.
Pitts told officers that he did not specifically threaten an employee of Maxon’s Diamond Merchants, but if they had actively resisted the robbery, he would have used his sledgehammer to physically assault the employees.
This case was prosecuted by Assistant U.S. Attorneys Patrick Carney and Nhan D. Nguyen. It was investigated by the FBI and the Springfield, Mo., Police Department.
Texas Woman Charged with Interstate Travel for the Purpose of Engaging in Illicit Sexual Conduct with a Fifteen-Year-Old MinorRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MARTHA OJEDA, age 41, of Pflugerville, Texas, was charged in a one-count Bill of Information with interstate travel with intent to engage in illicit sexual conduct.
According to the Bill of Information, in early April 2017, OJEDA travelled from Franklinton, Louisiana, to the State of Texas by commercial bus and automobile for the purposes of engaging in sexual conduct with a fifteen-year-old minor.
If convicted, OJEDA faces a maximum term of imprisonment of not more than thirty (30) years followed by between five (5) years and a lifetime of supervised release, and a $250,000 fine. OJEDA may also be required to register as a sex offender.
Acting United States Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Terre Haute man sentenced in federal court on firearm chargeRead the Press Release
Extensive criminal history including more than five felony convictions
PRESS RELEASE
Terre Haute – United States Attorney Josh J. Minkler announced today that a Terre Haute man was sentenced in federal court for illegally possessing a firearm. Andre Jackson, 57, Terre Haute, was sentenced to 210 months (over 17 years) imprisonment by U.S. District Judge William T. Lawrence.
“Protecting our neighborhoods from gun violence is one of the top priorities of my office,” said Minkler. “There is no tolerance for this type of violence and those who choose to violate our laws will be held accountable.”
On May 2, 2015, officers from the Terre Haute Police Department responded to a call of shots fired near Liberty Avenue and North 21st Street. Law enforcement officers arrived in the area and encountered an individual who had been shot in the leg. Other officers encountered Jackson. In a statement to police, Jackson stated he had been in an argument with the man and shot at him with his shotgun to prevent him from entering Jackson’s house. Officers located several spent shells in the yard, however, and they seized a .12-gauge shotgun in a trashcan adjacent to Jackson’s house.
Jackson is not legally permitted to own a firearm because he has more than five felony convictions, including convictions for crimes of violence, and is considered an armed career criminal under federal law. His convictions include residential burglary, two robberies, unlawful use of a weapon, and aggravated vehicular hijacking, all of which were from Cook County, Illinois. He was also convicted of strong-armed robbery in Vigo County for a 2010 incident, and he was on probation for that case at the time of his arrest for this incident.
This case was investigate d by the Terre Haute Police Department and the Federal Bureau of Investigation.
"This individual is a perfect example of why the law, illegal possession of a firearm by a prohibited person, was enacted," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "He is a career criminal with a long history of violence and this sentence ensures he is no longer a threat to the community."
According to Assistant United States Attorneys Matthew J. Lasher who prosecuted this case for the government, Jackson must serve five years of supervised release after his sentence.
Statement of the September 11th Victim Compensation Fund on the Office of Inspector General’s ReportRead the Press Release
The September 11th Victim Compensation Fund (VCF) acknowledges the work done by the Department’s Office of the Inspector General (OIG), as described in its report released today, entitled “Audit of the Department of Justice’s Administration of the September 11th Victim Compensation Fund.”
Today’s VCF has undergone many positive changes since OIG concluded its substantive review, including new leadership and updated regulations that implement changes as a result of the Dec. 18, 2015, reauthorization of the program by Congress and the President for an additional five years. That reauthorization, which extended the application period until Dec. 18, 2020, and appropriated $4.6 billion in additional funding, was a demonstration of Congress’s faith in the program and a recognition both of its success and of the enormity of the work that remains to be done. The OIG’s report similarly recognizes the substantial work done by the VCF, finding that each of its recommendations has already been met by the VCF and deeming each one closed and requiring no further follow-up.
“While no amount of money can alleviate the losses suffered as a result of the events of Sept. 11, 2001, the VCF plays a critical role in providing some measure of relief to those who continue to suffer,” said VCF Special Master Rupa Bhattacharyya. “The VCF today is reauthorized and reinvigorated in its efforts to serve the 9/11 community, and has taken substantial steps to realign the program to promptly, accurately, consistently, and fairly decide the claims already pending and the claims still anticipated to be filed. The VCF is grateful for OIG’s collaborative approach to the audit, and for the time and effort that OIG expended in reviewing the Fund’s operations through February of 2016, when it completed its substantive review.”
Since 2011, the VCF has awarded over $2.8 billion in compensation to responders to the attacks in New York City, at the Pentagon, and at the Shanksville site, as well as to those who lived, worked, or traveled through areas of lower Manhattan that were exposed to debris and toxins generated by the attacks and their aftermath. The VCF continues to receive and review claims from those who have suffered, and has over $4 billion in funds remaining.
To date, the VCF has made more than 21,000 eligibility decisions, finding more than 16,900 claimants eligible for compensation. The VCF had also made award determinations on more than 13,000 of those claims, including over 11,000 responders. More than 4,000 of these claimants suffer from one or more cancers related to their 9/11 exposure, while the remainder suffer from other, often times disabling, physical injuries.
The VCF was created to provide compensation for any individual (or a personal representative of a deceased individual) who suffered physical harm or was killed as a result of the terrorist-related aircraft crashes of Sept. 11, 2001 or the debris removal efforts that took place in the immediate aftermath of those crashes. The original VCF operated from 2001-2004. On Jan. 2, 2011, President Obama signed into law the James Zadroga 9/11 Health and Compensation Act of 2010 (Zadroga Act). Title II of the Zadroga Act reactivated the September 11th Victim Compensation Fund. The reactivated VCF opened in October 2011 and was authorized to operate for a period of five years, ending in October 2016. On Dec. 18, 2015, President Obama signed into law a bill reauthorizing the James Zadroga 9/11 Health and Compensation Act of 2010, which included the reauthorization of the VCF.
For additional information about how to file a claim, please visit the “How to File a Claim” page on the VCF’s website at www.vcf.gov; information on VCF policies and procedures can be obtained at https://www.vcf.gov/pdf/VCFPolicy.pdf. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
Solano County Man Sentenced to 10 Years in Prison for Possessing Gun as a FelonRead the Press Release
SACRAMENTO, Calif. — Markell Darrell Davis, 31, of Solano County, was sentenced today by United States District Judge Morrison C. England Jr. to 10 years in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on February 17, 2014, Davis was involved in a shooting in a residential neighborhood in Fairfield. Davis was driving on a residential block when a car pulled alongside him and an occupant of that car fired shots at Davis, then drove away. Davis returned fire with his .40-caliber Glock semi-automatic pistol in the direction of the other car as it drove away. One of the bullets that Davis fired struck and injured a bystander. At the time of the shooting, Davis was a convicted felon who was prohibited by law from possessing a firearm.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fairfield Police Department. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
Six More Defendants Plead Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that six more defendants have pleaded guilty in federal court to their roles in a conspiracy to distribute methamphetamine in Greene County, Mo.
Adrian Ortiz-Corrales, 42, of Las Vegas, Nev., pleaded guilty before U.S. Magistrate Judge David P. Rush today to 10 counts charged against him in an indictment returned on Sept. 28, 2016. Specifically, Ortiz-Corrales pleaded guilty to counts of conspiracy to distribute methamphetamine and conspiracy to commit money laundering, six counts of money laundering, and counts of possessing methamphetamine and heroin for distribution.
Gary Lee Driggers, 65, of Springfield, Mo., pleaded guilty to his role in the drug-trafficking conspiracy on Tuesday, Aug. 15, 2017. William Frank Eft, 67, and Williams David Watts, 59, both of Springfield, pleaded guilty to the same charge on Monday, Aug. 14, 2017. Richard Todd Sherwood, 59, of Willard, Mo., and Eduardo Diaz, 53, of Las Vegas, each pleaded guilty to the same charge last week.
In total, the quantity of pure methamphetamine involved in the conspiracy, which lasted from October 2013 to Feb. 29, 2016, weighed in excess of 4.5 kilograms.
Patrick R. Brigaudin, 55, of Springfield, and Gayla Rochelle Phillips, 42, of Willard, have also pleaded guilty to their roles in the drug-trafficking conspiracy as well as to participating in the related money-laundering conspiracy.
In March 2015, a shipment of approximately 15 pounds of pure methamphetamine was interdicted by law enforcement officers. Three persons were arrested following a controlled delivery of the methamphetamine to a Springfield hotel. Brigaudin admitted that he attempted to possess some or all of the methamphetamine, which he intended to distribute to others. Brigaudin also admitted to distributing methamphetamine on several occasions in 2015 and 2016.
On Feb. 29, 2016, Diaz and Ortiz-Corrales transported approximately 12 pounds of methamphetamine and six pounds of heroin to Brigaudin’s residence. While they were removing the methamphetamine from a vehicle, they and Brigaudin were arrested.
Watts admitted that he made his residence available to store methamphetamine. Driggers, Eft and Sherwood each admitted that he obtained methamphetamine from Brigaudin, which he intended to distribute to another person.
This case is being prosecuted by Assistant U.S. Attorney Timothy A. Garrison. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Ozark, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, COMET (the Combined Ozarks Multijurisdictional Enforcement Team) and the South Central Drug Task Force.
Six Indicted for Large-Scale Drug Distribution via the Dark WebRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today charging six defendants in a scheme to distribute controlled substances throughout the United States via the dark web, U.S. Attorney Phillip A. Talbert announced.
William James Farber, aka Bill Danzerian, 37, of Los Angeles, and Bryan Anthony Lemons, 29, of Los Angeles, were charged with conspiracy to possess and distribute controlled substances and conspiracy to launder money. Richard Thomas Martinsen, 29, of Studio City; Michael Angelo Palma, 22, of Los Angeles; Michele Pickerell, 47, of Altadena; and Faysal Mustafa Alkhayat, 31, of Woodland Hills, were charged with conspiracy to possess and distribute controlled substances.
According to court documents, Farber and his co-conspirators, operating under the name PureFireMeds, sold narcotics including marijuana, cocaine, oxycodone, hydrocodone, psilocybin, MDMA (Ecstasy), LSD, Xanax, and ketamine on dark web marketplaces, including Silk Road and Pandora. After Silk Road was shut down by law enforcement in October 2013, it is alleged that Farber and his co-conspirators began selling on the AlphaBay dark web marketplace under the name HumboldtFarms. It became one of the largest vendors on AlphaBay, allegedly completing more than 78,000 orders of marijuana on the site to customers throughout the United States and the world. Palma, Martinsen and others allegedly used Pickerell’s home to assemble an estimated 1,000 parcels of marijuana a week that were mailed throughout the United States. Farber and Lemons allegedly exchanged at least $7 million in bitcoin for cash that was allegedly the proceeds of the HumboldtFarms drug distribution.
Dark web sites such as AlphaBay operate on “The Onion Router” or “TOR” network, a special network of computers on the internet, distributed around the world, that is designed to conceal the true Internet Protocol (IP) addresses of the computers accessing the network, and, thereby, the locations and identities of the network’s users and computer servers hosting the websites, which are referred to as “hidden services.” The “hidden services” have complex web addresses, generated by a computer algorithm, ending in “.onion” and can only be accessed through specific web browser software designed to access the TOR network. AlphaBay was shut down by U.S. law enforcement on July 5, 2017, and is no longer in operation.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service in Los Angeles, the Los Angeles Police Department, and the Bakersfield Police Department with assistance from the Los Angeles Joint Regional Intelligence Center. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted of conspiracy to possess controlled substance, all six defendants face a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted of conspiracy to distribute controlled substance, each defendant faces a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of the money laundering conspiracy, Farber and Lemons each face a maximum statutory penalty of 20 years in prison and a fine up to $500,000 or up to twice the value of the property involved in the transactions, whichever is greater. Any sentence, however, would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sentencings for August 16, 2017Read the Press Release
Matthew Wayne Miller, 24, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 16, 2017, for being a felon in possession of firearms. Miller was arrested in Cheyenne, Wyoming. He received 41 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Cheyenne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
John T. Rudnick, 63, of Indianapolis, Indiana, was sentenced by Chief Magistrate Judge Kelly H. Rankin on August 16, 2017, for contempt of court. Mr. Rudnick intentionally provided misleading and inaccurate information to questions during a deposition in a bankruptcy case and his misbehavior obstructed the administration of justice. Rudnick was ordered to pay a $10.00 special assessment and a $5,000.00 fine. This case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation.
Scott Eugene Bronson, 33, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 16, 2017, for possession of a machine gun. Bronson received 80 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Sheridan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rashaan Fredrick Burton, 40, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 16, 2017, for conspiracy to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Burton was arrested in Gillette, Wyoming. He received 160 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Campbell County Sheriff’s Office, the Gillette Police Department, and the Wyoming Division of Criminal Investigation.
Search of Homedale Residence Leads to Methamphetamine Charges Against Mexican NationalRead the Press Release
BOISE — Acting United States Attorney Rafael Gonzalez announced today that last week’s search of a residence in Homedale, Idaho, resulted in the filing of federal drug charges against Ricardo Renteria-Castillo, 29, a Mexican national. A criminal complaint filed last week in federal court alleges that on August 9, 2017, Renteria-Castillo possessed methamphetamine with the intent to distribute it. It also alleges that from July 2017, until August 8, 2017, Renteria-Castillo conspired with others to distribute methamphetamine.
Renteria-Castillo appeared in federal court in Boise on August 11, 2017. Trial has not yet been scheduled.
Both charges are punishable by up to 20 years in prison, a fine up to $1 million and three years of supervised release.
The following law enforcement agencies participated in the search of the residence were the Drug Enforcement Administration, the Homedale Police Department, the Boise Police Department, the Nampa Police Department, the Valley County Sheriff’s Office, the Canyon County Sheriff’s Office, the Ada County Sheriff’s Office, and the Mini Cassia Drug Task Force. The investigation is also part of the Organized Crime and Drug Enforcement Task Force (OCDETF), which includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and the U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
A complaint is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rosebud Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance, Methamphetamine, was sentenced on August 10, 2017, by U.S. District Judge Roberto A. Lange.
Benjamin Jason Young, a/k/a, Benjamin Jason Two Eagle, age 36, was sentenced to 40 months in custody, followed by 3 years of supervised release, a fine of $500, forfeiture of a firearm and ammunition, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Young was indicted by a federal grand jury on May 17, 2016. He pled guilty on April 11, 2017.
Between January 2015 and May 2016, Young knowingly and intentionally conspired with others to distribute methamphetamine, a Schedule II controlled substance, in the District of South Dakota. Young received distributable quantities of methamphetamine and distributed some of that methamphetamine in South Dakota. The individuals who provided Young with the methamphetamine knew that he intended to engage in further distribution. Young admitted that it was reasonably foreseeable to him that more than 50 grams of methamphetamine would be distributed during the course of the conspiracy.
When law enforcement executed a search warrant on Young’s residence on September 23, 2015, Young had methamphetamine, paraphernalia testing positive for methamphetamine, a firearm, and ammunition in his possession. Those items were seized by law enforcement and the firearm and ammunition were forfeited.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Young was immediately turned over to the custody of the U.S. Marshals Service.
Pittsburgh Woman Admits Defrauding Social SecurityRead the Press Release
PITTSBURGH - A Pittsburgh resident has pled guilty to the charge of theft of government money, stemming from her receipt and use of social security benefits to which she knew she was not entitled, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, to which she pled guilty before United States District Court Judge David Cercone on August 9, 2017, named Rosemary Thomas, 64, as the sole defendant.
According to the indictment and the evidence summarized during the plea proceeding, from January 2001 to February 2014, Thomas converted to her own use $98,949 in Social Security Title II, Old Age, Survivor’s Disability Insurance benefits of another individual to whom she was not related, to which benefits she knew she was not entitled.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, 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.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment and guilty plea in this case.
Oak Park Doctor Pleads Guilty to Unlawful Distribution of Prescription PillsRead the Press Release
A physician who practiced in Oak Park pleaded guilty yesterday to writing prescriptions for oxycodone without medical justification, acting United States Attorney Daniel L. Lemisch announced today.
Lemisch was joined in the announcement by Timothy Plancon, Special Agent in Charge of the Drug Enforcement Administration and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service, Criminal Investigation.
Jennifer Franklin, 40, of Harrison Township, entered the guilty plea before U.S. District Judge George Caram Steeh.
As part of the plea agreement, Franklin, admitted that between the latter part of 2013 and April 2015, she conspired with Boris Zigmond, to prescribe medically unnecessary oxycodone. Franklin acknowledged that she earned approximately $200,000 from the scheme to distribute oxycodone. She also acknowledged that the street value of the oxycodone she prescribed without justification exceeded $2 million.
Boris Zigmond, Dr. Carlos Godoy, and six other codefendants have previously pleaded guilty for their roles in the conspiracy.
"More people die from overdoses of prescription drugs in America than from overdoses of all other drugs combined,” Lemisch said. “We hope that prosecuting the doctors who are putting these drugs on the streets will deter others from contributing to this epidemic.”
IRS-CI Special Agent in Charge Muriel, stated “It is unfortunate that greed and the desire for financial gain overpowers a physician’s Hippocratic Oath to use treatment to help the sick, but never with a view to injury and wrong-doing. The medically unnecessary prescribing of Oxycodone continues to be a contributing factor to the Opioid epidemic that is facing Michigan. IRS and its partners will continue to work to identify those who look to gain financial reward from medically unnecessary prescriptions.”
As part of their plea agreements, Zigmond, Franklin, and Godoy could receive a maximum sentence of 20 years imprisonment.
Sentencing is scheduled for December 18, 2017.
New Paltz Man Sentenced to More Than 18 Years in Prison for Sex Trafficking of MinorsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that MARK CASTAGNETTA was sentenced to 218 months in prison and a lifetime term of supervised release for child sex trafficking. CASTAGNETTA pled guilty on November 21, 2016, before U.S. District Judge Cathy Seibel, who imposed today’s sentence. In imposing sentence, Judge Seibel characterized the defendant’s misconduct as some of the most serious conduct she had encountered during her time on the bench.
Acting U.S. Attorney Joon H. Kim said: “This defendant callously robbed two children of their innocence, inducing them to travel to his home in New Paltz, New York, where he not only sexually abused them, but forced them to have sex with other men in exchange for drugs and money. Today, for his reprehensible crimes, he has been sentenced to over 18 years in federal prison.”
From 2014 through July 2016, CASTAGNETTA engaged in trafficking of minors by contacting two minor victims through an adult fetish website and enticing them to travel to his residence to engage in a sexual relationship in which he played the role of “slave master” and the victim played the role of “slave.” Once there, the defendant engaged in abusive sexual conduct with the victims, supplied the victims with illegal drugs, and induced them to engage in sexual conduct with other individuals in exchange for drugs and money. The defendant also produced an image containing child pornography of one of the victims.
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CASTAGNETTA, age 52, pled guilty to one count of sex trafficking of children.
Mr. Kim praised the investigative work of the FBI’s Westchester County Safe Streets Task Force and the FBI’s Violent Crimes Against Children Squad and thanked the New York City Police Department, the Manhattan District Attorney’s Office, the Town of New Paltz Police Department, the Westchester County Human Trafficking Task Force, and the Westchester Department of Social Services for their valuable cooperation in this matter.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jacqueline Kelly is in charge of the prosecution.
New Castle Man Pleads Guilty to Sex Trafficking a MinorRead the Press Release
PITTSBURGH – A former resident of Lawrence County, Pennsylvania, has pleaded guilty in federal court to a charge of sex trafficking of a child, Acting United States Attorney Soo C. Song announced today.
Ronald Kyle Hartman, 28, of New Castle, Pennsylvania, pleaded guilty before United States District Judge Mark R. Hornak.
In connection with the guilty plea, from August 14, 2016, to August 16, 2016, Hartman knowingly recruited, enticed, harbored, transported, provided, obtained and maintained by any means, in and affecting interstate commerce, a female minor under the age of 18 years, and did benefit financially or by receiving anything of value from participation in a venture engaged in commercial sexual acts, knowing and in reckless disregard of the fact, and having had a reasonable opportunity to observe Minor A, that Minor A had not attained the age of 18 years and that Minor A would be caused to engage in a commercial sex act.
United States District Judge Mark R. Hornak scheduled sentencing for December 7, 2017, at 9:30 a.m. The law provides for a maximum total sentence of life imprisonment, a fine of $1,000,000, and a term of supervised release for any term of years not less than five, and up to life, 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.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Grove City Police conducted the investigation that led to the prosecution of Hartman.
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.
Navajo Man from Shiprock Sentenced to Prison for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Byron Harold Peshlakai, 26, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Santa Fe, N.M., to 30 months in prison for his involuntary manslaughter conviction. Peshlakai will be on supervised release for three years after completing his prison sentence.
Peshlakai was arrested in Oct. 2016, on an indictment charging him with involuntary manslaughter. According to the indictment, Peshlakai killed the victim with his vehicle while driving under the influence of alcohol on the Navajo Indian Reservation on Oct. 25, 2015.
On March 2, 2017, Peshlakai pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Michael D. Murphy prosecuted the case.
Myrtle Beach Man Sentenced in Federal Court on Possession of Firearm ChargeRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Jeremey Dewayne Faulk, 30, of Myrtle Beach, was sentenced in federal court in Florence, South Carolina, for felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g). United States District Judge R. Bryan Harwell, of Florence, sentenced Faulk to 84 months in prison followed by a three-year term of supervised released.
Evidence presented at the change of plea on November 29, 2016, and the sentencing hearing, established that on February 7, 2016, officers with the Horry County Police Department initiated a traffic stop in Longs, South Carolina, on a vehicle driven by Faulk. A subsequent search of the vehicle, led to the seizure of a .380 caliber pistol, 71 rounds of ammunition and a small amount of marijuana. Faulk later admitted that the firearm was his. Faulk was prohibited from possessing a firearm or ammunition due to previous felony convictions.
The case was investigated by ATF and the Horry County Police Department. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Mylan Agrees to Pay $465 Million to Resolve False Claims Act Liability for Underpaying EpiPen RebatesRead the Press Release
Pharmaceutical companies Mylan Inc. and Mylan Specialty L.P. have agreed to pay $465 million to resolve claims that they violated the False Claims Act by knowingly misclassifying EpiPen as a generic drug to avoid paying rebates owed primarily to Medicaid, the Justice Department announced today. Mylan Inc. and Mylan Specialty L.P. are both wholly owned subsidiaries of Mylan N.V., which is headquartered in Canonsburg, Pennsylvania.
“This settlement demonstrates the Department of Justice’s unwavering commitment to hold pharmaceutical companies accountable for schemes to overbill Medicaid, a taxpayer-funded program whose purpose is to help the poor and disabled,” said Acting Assistant Attorney General Chad A. Readler of the Department of Justice’s Civil Division. “Drug manufacturers must abide by their legal obligations to pay appropriate rebates to state Medicaid programs.”
“Mylan misclassified its brand name drug, EpiPen, to profit at the expense of the Medicaid program,” said Acting United States Attorney William D. Weinreb. “Taxpayers rightly expect companies like Mylan that receive payments from taxpayer-funded programs to scrupulously follow the rules. We will continue to protect the integrity of Medicaid and ensure a level playing field for pharmaceutical companies. ”
Congress enacted the Medicaid Drug Rebate Program to ensure that state Medicaid programs were not susceptible to price gouging by manufacturers of drugs that were available from only a single source. It therefore subjected such single-source, or brand name drugs, to a higher rebate that is payable to Medicaid and that increases to the extent the price of the drug outpaces the rate of inflation. In contrast, generic drugs originating from multiple manufacturers are subject to lower rebates that, at least until recently, were not subject to inflationary adjustments.
The settlement resolves the government’s allegations that Mylan, by erroneously reporting EpiPen as a generic drug to Medicaid despite the absence of any therapeutically equivalent drugs, was able to demand massive price increases in the private market while avoiding its corresponding rebate obligations to Medicaid. Between 2010 and 2016, Mylan increased the price of EpiPen by approximately 400 percent yet paid only a fixed 13 percent rebate to Medicaid during the same period. The government further alleged that although Mylan was well-aware that its drug was not a generic, it nevertheless claimed generic status for EpiPen in the Medicaid program to avoid paying a higher rebate.
The settlement resolves allegations brought in a lawsuit filed under the whistleblower provisions of the False Claims Act, which permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblower in this case was the pharmaceutical manufacturer, Sanofi-Aventis US LLC. It will receive approximately $38.7 million as its share of the federal recovery.
Mylan has also entered into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other things, an independent review organization to annually review multiple aspects of Mylan’s practices relating to the Medicaid drug rebate program.
“Our five-year corporate integrity agreement requires intensive outside scrutiny to assess whether Mylan is complying with the rules of the Medicaid drug rebate program,” said Gregory E. Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “In addition, the CIA requires individual accountability by Mylan board members and executives.”
The government’s intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with various state attorneys general, the Department of Health and Human Services Office of Inspector General, and the Medicaid Fraud Control Units.
The case is captioned United States ex rel. Sanofi-Aventis US LLC v. Mylan Inc., et al., No. 16-CV-11572 (D. Mass.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Mylan Agrees to Pay $465 Million to Resolve False Claims Act LiabilityRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical companies Mylan Inc. and Mylan Specialty L.P. have agreed to pay $465 million to resolve allegations that they violated the False Claims Act by knowingly misclassifying EpiPen, a branded epinephrine auto-injector drug, as a generic drug to avoid paying rebates owed to Medicaid. Mylan Inc. and Mylan Specialty L.P. are both wholly owned subsidiaries of Mylan N.V., a Dutch-registered entity headquartered in Canonsburg, Penn.
Congress enacted the Medicaid Drug Rebate Program to ensure that state Medicaid programs were not susceptible to price gouging by manufacturers of drugs that were available from only a single source. It therefore subjected such single-source, or brand name drugs, to a higher rebate that includes any difference between the drug’s current price and the price the drug would have had if its price had increased only at the general rate of inflation. In contrast, generic drugs originating from multiple manufacturers are subject to lower rebates that, at least until recently, did not include an inflationary component.
The government contends that Mylan improperly avoided paying state Medicaid programs the higher rebates for branded drugs by misclassifying EpiPen as a generic drug, even though EpiPen had no FDA-approved therapeutic equivalents and even though Mylan marketed and priced EpiPen as a brand name drug. Mylan raised the price of EpiPen by approximately 400% between 2010 and 2016.
“Mylan misclassified its brand name drug, EpiPen, to profit at the expense of the Medicaid program,” said Acting United States Attorney William D. Weinreb. “Taxpayers rightly expect companies like Mylan that receive payments from taxpayer-funded programs to scrupulously follow the rules. We will continue to root out fraud and abuse to protect the integrity of Medicaid and ensure a level playing field for pharmaceutical companies. We commend Sanofi for bringing this matter to our attention.”
“This settlement demonstrates the Department of Justice’s unwavering commitment to hold pharmaceutical companies accountable for schemes to overbill Medicaid, a taxpayer-funded program whose purpose is to help the poor and disabled,” said Acting Assistant Attorney General Chad A. Readler of the Department of Justice’s Civil Division. “Drug manufacturers must abide by their legal obligations to pay appropriate rebates to state Medicaid programs.”
As part of this settlement, Mylan has also entered into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other things, an independent review organization to annually review multiple aspects of Mylan’s practices relating to the Medicaid drug rebate program.
“Our five-year corporate integrity agreement requires intensive outside scrutiny to assess whether Mylan is complying with the rules of the Medicaid Drug Rebate Program,” said Gregory E. Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “In addition, the CIA requires individual accountability by Mylan board members and executives.”
A competing pharmaceutical manufacturer, Sanofi, raised this matter with the United States Attorney’s Office in 2014. At the time, Sanofi was selling another epinephrine auto-injector drug called AUVI-Q and was reporting it to the Medicaid Drug Rebate Program as a brand name drug. In 2016, Sanofi filed a complaint against Mylan under the qui tam provisions of the False Claims Act, which permits private parties to sue on behalf of the government and to receive a share of any recovery. See United States ex rel. sanofi-aventis US LLC v. Mylan Inc., et al., No. 16cv11572 (D. Mass.). As a result of today’s settlement, Sanofi will receive $38.7 million as its share of the federal recovery, plus a share of the states’ recovery.
Acting U.S. Attorney Weinreb, Acting Deputy Assistant Attorney General Raab, and HHS OIG Chief Counsel Demske made the announcement today. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Kriss Basil of Weinreb’s Office, and by Trial Attorneys Augustine Ripa and Nicholas Perros of the Justice Department’s Civil Division.
Mosheim Resident Sentenced to over Fifteen Years on Methamphetamine Conspiracy ChargeRead the Press Release
GREENEVILLE, Tenn. – On August 17, 2017, David Lee Sicilia, 32, of Mosheim, Tennessee, was sentenced by the Honorable R. Leon Jordan, Senior U.S. District Court Judge, to serve 188 months in federal prison following a conviction for his role in a conspiracy to distribute methamphetamine in east Tennessee.
According to the plea agreement on file with the U.S. District Court, Sicilia admitted that he was responsible for the distribution of at least 500 grams but less than 1.5 kilograms of actual methamphetamine.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation, Hamblen County Sheriff’s Office, Morristown Police Department and Third and Fourth District Judicial Drug Task Forces. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Michigan Man Sentenced for Credit and Debit Card FraudRead the Press Release
BOISE – Devin Arthur Searcy, 23, of Redford Charter Town, Michigan, was sentenced today to 24 months in prison followed by three years of supervised release for conspiracy to commit wire fraud, Acting U.S. Attorney Rafael Gonzalez announced. Chief U.S. District Judge B. Lynn Winmill also ordered Searcy to pay $7,299.33 in restitution. Searcy pleaded guilty on May 8, 2017.
According to statements made in court, Searcy and his co-defendant, Juwuan Demilo Gordon, agreed to travel to the District of Idaho, the District of Colorado, the District of Utah, and the Western District of Oklahoma for the purpose of making fraudulent purchases of gift cards and prepaid debit cards from retail stores, using stolen credit card numbers embossed onto counterfeit credit and debit cards. Prior to traveling to the different districts, Searcy and Gordon obtained counterfeit credit and debit cards in Michigan. Law enforcement recovered at least 12 counterfeit credit cards and 105 gift cards and prepaid debit cards from the pair.
Juwuan Gordon, 27, of Westland, Michigan, was sentenced on July 27, 2017, to 27 months in prison followed by three years of supervised release for conspiracy to commit wire fraud. Judge Winmill also ordered Gordon to pay $7,299.33 in restitution.
The case was investigated by the Boise Police Department and the United States Secret Service.
Mexican National Pleads Guilty to Drug TraffickingRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOACOBO JOSE SANTOS, age 43, a naturalized citizen of Mexico, pled guilty today to conspiracy to possess with the intent to distribute five hundred grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride.
According to the court documents, SANTOS was arrested with co-conspirators on October 15, 2016, in possession of nearly five kilograms of cocaine in Covington, Louisiana meant for distribution in the Eastern District of Louisiana.
SANTOS faces a maximum of forty years imprisonment and a minimum of five years imprisonment, a maximum fine of $5,000,000, a term of supervised release of at least four years up to life, and a mandatory $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for November 30, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration in investigating this matter. Assistant U.S. Attorney James S. C. Baehr is in charge of the prosecution.
Meriden Man Pleads Guilty to Sex Trafficking of 3 Teenage GirlsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLEN DAVIS, 36, of Meriden, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of sex trafficking of a minor.
According to court documents and statements made in court, at various time between late 2014 and November 2016, DAVIS recruited harbored and transported three females, who at the time were 14, 15 and 16 years old, to engage in commercial acts. DAVIS used the website Backpage.com to advertise the minor victims’ services, and he transported the girls to various Connecticut hotels, including hotels in Meriden, Milford and Hamden, where they engaged in prostitution.
DAVIS has been detained since his arrest on related state charges on December 9, 2016.
Judge Shea scheduled sentencing for November 14, 2017, at which time DAVIS faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. DAVIS also has agreed to pay restitution to the minor victims.
This matter is being investigated by the Connecticut Human Trafficking Task Force, Federal Bureau of Investigation and Meriden Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Sarala V. Nagala.
McCracken County, Kentucky Attorney Guilty of Defrauding Clients of Insurance SettlementsRead the Press Release
Kept at least $550,000 in settlement amounts that should have gone to his clients.
PADUCAH, Ky. – A licensed Kentucky attorney pleaded guilty in United States District Court today, before Senior Judge Thomas B. Russell, to various charges including devising a scheme to defraud numerous clients of insurance settlements totaling at least $550,000 announced United States Attorney John E. Kuhn, Jr.
“Clients trust their attorneys to act as fiduciaries, to put the clients’ interests first and to conduct themselves honestly and honorably,” stated U.S. Attorney John Kuhn. “In this case, Mr. King violated that trust and dishonored his profession by stealing from his clients. We will pursue justice for his defrauded clients, seek restitution on their behalf, and seek a sentence for Mr. King commensurate with his crime.”
From at least March of 2007 through May of 2017, James Grant King, 43, of McCracken County, Kentucky, was an attorney licensed by the Kentucky Bar Association and licensed to practice law in the Commonwealth of Kentucky. In court today, King admitted that during that time period, he committed aggravated identity theft and wire fraud.
King practiced as a plaintiff’s attorney for numerous clients within the Western District of Kentucky and elsewhere. These clients came to the defendant seeking his services in order to recover monetary damages and other remedies. After learning about his clients’ cases, King would seek to settle their cases with insurance companies. However, after reaching a settlement with the insurance companies, and unbeknownst to his clients, King would then keep most or all of the settlement amounts for himself.
Specifically, depending on the case, King would either keep the entire settlement amount for himself or tell clients that he was still awaiting resolution and settlement of the case with the insurance company, knowing that the insurance company had already settled the case and sent him the full settlement amount. King’s clients would believe him because they trusted him. The settlements that King received from the insurance companies often came in the form of a check. In order to cash or deposit the check, King would forge the signatures of his clients so that they would not know about the check. King would forge these signatures without any lawful authority
King is also charged with obtaining a $97,500 personal loan from a McCracken County individual. As collateral for the loan, King transferred the title of a Phoenix Model 920 Pro XP boat. However, a few months later, King applied for a duplicate title to the boat, and then, unbeknownst to the individual who loaned him the money, King sold the boat, without repaying the $97,500 loan.
If convicted at trial, King could face a sentence of 42 years in prison, pay a fine of $750,000 and be required to serve a three years period of supervised release.
This case is being prosecuted by Assistant United States Nute A. Bonner and is being investigated by the Federal Bureau of Investigation (FBI) and the McCracken County Kentucky Sheriff’s Department.
king_grant_plea_8-19-17.pdfManhattan U.S. Attorney Announces Conviction of Rikers Island Correction Officer in Connection with Cover-Up of Inmate AssaultRead the Press Release
Joon H. Kim, Acting United States Attorney for the Southern District of New York, announced today that RODINY CALYPSO, a New York City Correction Officer, was convicted yesterday of filing a false report in connection with the assault of a handcuffed inmate at Rikers Island. The jury acquitted the defendant on one count of violating the inmate’s civil rights and one count of obstruction of justice. The jury returned the verdict after a one-week trial before the Honorable Valerie E. Caproni.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Prisoners at Rikers Island have the same constitutional rights we all enjoy, and corrections officers do not have the right to abuse inmates in their custody and care. Rodiny Calypso’s lies about his use of force undermined the investigation into his brutal beating of a handcuffed, defenseless inmate. We will continue to aggressively protect the rights of prisoners and the integrity of investigations into uses of force to ensure that justice reaches everywhere, including isolated corners of Rikers Island.”
According to the Complaint, Indictment, and evidence presented at trial:
Rikers Island is a jail complex, located in the Bronx, New York, maintained by the New York City Department of Correction. At the time of his assault, the inmate (“Inmate-1”) was a pretrial detainee in the Otis Bantum Correctional Center (“OBCC”), a facility that houses, among other inmates, inmates in need of maximum security. Inmate-1 was housed in 5 North, a dormitory area within the OBCC in which inmates were generally kept in solitary confinement in individual cells for 23 hours per day. The shower facilities within 5 North were individual stalls, to be occupied by one inmate at a time, and to which inmates were brought handcuffed, then uncuffed through a port in the shower stall door, and then handcuffed again through the port before being brought out of the stalls by correction officers.
The Assault and Cover-Up
Shortly before noon on February 27, 2014, CALYPSO relieved another correction officer at 5 North while Inmate-1 was in the shower. Inmate-1 and CALYPSO had an extended and heated verbal exchange, during which CALYPSO picked up some personal items Inmate-1 had dropped outside the door through the port. At one point, CALYPSO stepped away from the door and spoke to a fellow correction officer one level down within the dorm area. That person left the dorm area and returned with another officer (“Officer-1”).
CALYPSO rear-cuffed Inmate-1 for removal, and then opened the door to the shower stall. Within seconds, CALYPSO punched Inmate-1 several times in the face. He followed Inmate-1 into the shower area, where he put Inmate-1 into a headlock and punched him several more times in the head. CALYPSO began to lose his footing at this point, and clung to Inmate-1’s side. Officer-1 then arrived outside the stall. As Officer-1 restrained Inmate-1, CALYPSO regained his footing and elbowed Inmate-1 repeatedly – approximately five times – in the head. As a result of the assault, Inmate-1 suffered lacerations to his face and the back of his head. The entire assault was captured on surveillance video and witnessed by multiple inmates whose cells were positioned across from the shower area.
The New York City Department of Correction issues directives governing the circumstances under which the use of force against inmates is appropriate. Under these directives, when a restrained inmate is still dangerous to himself and others, force is to be used as a last resort. The directives also dictate that any use of force must be reported – on a “Use of Force” report that is filled out truthfully and promptly.
A full day after the assault, in violation of the directives, CALYPSO filled out a “Use of Force” report on which he was supposed to report truthfully the circumstances of that assault. In this report, CALYPSO attempted to justify his conduct by lying about how he and Inmate-1 had acted. He mischaracterized and misstated portions of the assault, omitting the close-fisted punches he delivered to Inmate-1 while holding him in a headlock and claiming that he had hit Inmate-1 only in the “upper torso” area.
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RODINY CALYPSO, 38, of Springfield Gardens, New York, was convicted of one count of filing a false form. CALYPSO faces a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. CALYPSO is scheduled to be sentenced on November 30, 2017.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation. Mr. Kim also thanked the New York City Department of Investigation, the New York City Department of Correction, Investigative Division, and the Bronx District Attorney’s Office for their assistance in the investigation, which remains ongoing.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Martin S. Bell and Tara M. La Morte are in charge of the prosecution.
Manhattan U.S. Attorney Announces Consent Decree with Accolade Construction Group Inc. for Violating Lead Paint Safety RulesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Catherine R. McCabe, Acting Regional Administrator for the U.S. Environmental Protection Agency (“EPA”), Region 2, announced today that the United States entered into a Consent Decree settling a civil lawsuit against Accolade Construction Group Inc. (“Accolade”) for violations of the Toxic Substances Control Act (“TSCA”) and EPA’s Renovation, Repair, and Painting Rule (“RRP Rule”). The provisions of TSCA and the RRP Rule that Accolade violated are designed to protect public health by minimizing the risk of lead exposure during renovations of residential buildings.
Acting U.S. Attorney Joon H. Kim stated: “Accolade repeatedly ignored rules designed to protect children and others from lead poisoning. By requiring Accolade to turn over profits it made by evading these requirements, this Consent Decree ensures that Accolade will not benefit from its misdeeds. And because Accolade’s future work will be subject to court oversight, the public health will be protected.”
EPA Acting Regional Administrator McCabe stated: “Lead paint is very dangerous when it is being stripped or sanded during renovations. By not complying with EPA rules designed to ensure that the paint dust is properly handled by properly trained workers, Accolade put people, including its own workers, at risk. This Consent Decree protects the public by requiring company officials to get training to ensure that the company follows the rules in all future renovations.”
The Consent Decree, which is subject to public comment and approval by the court, will resolve a lawsuit filed in Manhattan federal court in 2015, which alleged that Accolade repeatedly violated TSCA and the RRP Rule in the course of renovating six different Manhattan apartment buildings. The lawsuit also alleged that Accolade violated TSCA and the RRP Rule by failing to provide EPA with records necessary to enable EPA to monitor Accolade’s compliance. Accolade committed these violations despite a prior administrative settlement with the EPA for violations of the RRP Rule.
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In the Consent Decree entered today, Accolade admits, acknowledges, and accepts responsibility for the fact that it “violated the RRP Rule and, consequently, TSCA” as a result of the following conduct at each of the six buildings at issue:
- Failing to have a certified renovator direct the renovations and to ensure that all other persons performing the renovations received training on lead-safe work practices;
- Failing to post warning signs defining the work areas and cautioning occupants and other persons to keep out;
- Failing to provide the owner of the units being renovated with an EPA pamphlet on lead hazards, The Lead-Safe Certified Guide to Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools;
- Failing to contain the renovation work areas to minimize the risk of lead exposure;
- Failing to clean the work areas after the renovations were completed to ensure that no dust, debris, or residue remained in those areas; and
- Failing to make available to EPA the records necessary to demonstrate Accolade’s compliance with the RRP Rule.
Pursuant to the Consent Decree, Accolade will disgorge $58,000 in profits obtained from the conduct alleged in the lawsuit. Further, the Consent Decree requires Accolade’s principal to receive training before Accolade conducts future RRP Rule-covered work and requires Accolade to comply with safe work practices and other RRP Rule requirements in the future. Failure to comply with the Consent Decree will give rise to significant penalties.
To provide public notice and to afford members of the public the opportunity to comment on the Consent Decree, the Consent Decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.
Acting U.S. Attorney Kim thanked the attorneys and enforcement staff at EPA Region 2 for their critical work in this matter.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorneys Mónica P. Folch and Sharanya Mohan are in charge of the case.
Louisville Man Sentenced to 51 Months in Prison for Being A Convicted Felon in Possession of A FirearmRead the Press Release
Federal prosecution resulted following the use of a firearm during a road rage incident on I-265 in Louisville
LOUISVILLE, Ky. – A convicted felon was sentenced in United States District Court today, by Senior Judge Thomas B. Russell, to 51 months in prison followed by three years of supervised release, for unlawful possession of a firearm by a felon, announced United States Attorney John E. Kuhn, Jr.
“One can only imagine how terrified the victim of this crime must have felt not only for herself, but for the safety of her two children,” stated U.S. Attorney John Kuhn. “In this case, no one was injured, but this community well knows how dangerous and deadly the outcome could have been. For the safety of our communities, we will continue to enforce the laws that keep felons from possessing firearms.”
Timothy Wayne Corbin, 45, from Louisville, previously admitted, in United States District Court, that on September 9, 2016, on I-265 in Louisville, Kentucky, that he pointed and fired a gun at a vehicle driven by Jacqueline Morris and occupied by her and her two children. The projectile penetrated the engine compartment and radiator of the vehicle, but Ms. Morris was able to safely exit the interstate and call 911. Mr. Corbin then hid the gun inside the home of his girlfriend and texted her, asking her to provide an alibi for his whereabouts that evening. The gun, a Smith and Wesson, 40 caliber semiautomatic pistol and ammunition with magazine, was determined to have traveled in interstate commerce by an interstate nexus expert with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
In 2010 Corbin was convicted in Jefferson Circuit Court Case No. 07-CR-2677 of Manufacturing Methamphetamine, a felony offense punishable by more than one year.
This case was prosecuted by Assistant United States Attorney Erin McKenzie and was investigated by ATF.
Loris Man Sentenced in Federal Court on Drug Conspiracy ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Emmanuel Lamar Bellamy, age 28, of Loris, was sentenced in Florence to 108 months imprisonment followed by a three-year term of supervised release. On April 18, 2017, Bellamy entered a guilty plea in federal court to conspiracy to possess with intent to distribute a quantity of marijuana, cocaine, cocaine base and oxycodone. United States District Judge R. Bryan Harwell imposed the sentence.
The evidence presented at the change of plea hearing and sentencing hearing established that members of ATF and the Horry County Police Department were investigating illegal drug activity in the Loris, South Carolina area. As part of that investigation, agents made two controlled buys of cocaine base from Bellamy in October and November 2015.
On September 7, 2016, agents were investigating information that Bellamy and others were using a hotel in Loris for illegal drug activity. Agents set up surveillance on the hotel and observed Bellamy entering and leaving the hotel. Agents stopped Bellamy as he drove away from the hotel. After the initial stop, Bellamy fled the scene in his vehicle and led agents on a brief chase before his vehicle struck another vehicle ending the pursuit. At that point, a passenger in Bellamy’s vehicle jumped out of vehicle and fled the scene but was apprehended. Bellamy and the passenger were arrested. Officers searched Bellamy and found over $3,000 in cash on him. Police also searched the vehicle and found marijuana and oxycodone pills. A firearm and drugs were also found near where the passenger was apprehended. Agents also found Bellamy in possession of a room key to the hotel. Agents obtained a search warrant for the hotel room and located nearly 800 grams of cocaine, 78 grams of cocaine base, $80,000 in cash, two handguns and more oxycodone pills.
The case was investigated by agents with ATF and the Horry County Police Department. Assistant United States Attorney Chris Taylor of the Florence office prosecuted the case.
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Lithuanian Man Extradited for Theft of over $100 Million in Fraudulent Business Email Compromise Scheme Against Multinational Internet CompaniesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that EVALDAS RIMASAUSKAS was extradited from Lithuania. In March 2017, RIMASAUSKAS was arrested in Lithuania on the basis of a provisional arrest warrant for orchestrating a fraudulent business email compromise scheme that induced two U.S.-based Internet companies to wire more than $100 million to bank accounts controlled by RIMASAUSKAS. RIMASAUSKAS arrived in the Southern District of New York last night, and will be presented today in Manhattan federal court before the Honorable Barbara Moses, U.S. Magistrate Judge.
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RIMASAUSKAS, 48, of Vilnius, Lithuania, is charged in an Indictment with one count of wire fraud and two counts of money laundering, each of which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation, and thanked the Prosecutor General’s Office of the Republic of Lithuania, the Lithuanian Criminal Police Bureau, the Vilnius District Prosecutor’s Office and the Economic Crime Investigation Board of Vilnius County Police Headquarters, the International Assistance Group at the Department of Justice, Canada, and the Department of Justice’s Office of International Affairs for their assistance in this matter.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Eun Young Choi is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Last Co-Conspirator of Loren Toelle Drug Trafficking Organization Sentenced to PrisonRead the Press Release
COEUR D'ALENE – The last co-conspirator from the Loren Toelle drug trafficking organization was sentenced yesterday to prison, Acting U.S. Attorney Rafael Gonzalez announced. The sentence was part of a significant drug investigation and prosecution under the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The sentence was handed down by Chief U.S. District Judge B. Lynn Winmill.
Jessica Nadine Frederick, 27, of Liberty Lake, Washington, was sentenced to 37 months prison and 3 years supervised release for her role in the drug conspiracy. Frederick became involved in 2011 when she began dating Loren Toelle’s brother and co-conspirator, Robert Hill. In November of last year, Frederick pleaded guilty to conspiracy to distribute heroin, oxycodone and methamphetamine.
Overall, the ten defendants in the Loren Toelle drug trafficking organization were sentenced to a total of 729 months in prison, or over 60 years. Throughout the sentencings, Judge Winmill noted the devastating effect the opioid epidemic has had on individuals.
Judge Winmill also ordered Frederick to forfeit $355,000 in cash proceeds.
The case is a result of a joint investigation and cooperative law enforcement efforts of the Organized Crime and Drug Enforcement Task Force. The OCDETF program is a federal multi-agency, multi-jurisdiction task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations.
Several federal, state and local agencies participated in the investigation and prosecution: the FBI North Idaho Violent Crime Task Force, consisting of the FBI, the Coeur d’Alene Police Department, the Kootenai County Sheriff’s Office, and the Post Falls Police Department; the Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigation (IRS-CI), the U.S. Marshals Service and the Department of Homeland Security. Other agencies involved included the Williston, North Dakota, Police Department; the United States Attorney’s Offices in the Districts of Nevada and North Dakota; the Williams County, North Dakota Sheriff’s Office in South Dakota; the U.S. Border Patrol; the North Dakota Bureau of Criminal Investigation; the Northwest Narcotics Task Force; and the Washington State Patrol.
Las Vegas Man Pleads Guilty to Robbing over $200,000 from Armored Vehicle and Stealing 18 Firearms from Gun StoreRead the Press Release
LAS VEGAS, Nev. – A man pleaded guilty on Wednesday to using a baseball bat to rob over $200,000 from an armored vehicle and for stealing 18 firearms, including a suppressor, from a gun store, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Anthony Jovan Greene, 31, of Las Vegas, pleaded guilty to one count each of interference with commerce by robbery and theft from a Federal Firearms Licensee. United States District Judge James C. Mahan accepted the guilty plea and scheduled sentencing for Nov. 16, 2017.
According to admissions made in the plea agreement, Greene and at least one other co-conspirator were both armed with baseball bats and robbed a Garda Cash Logistics armored truck on Oct. 5, 2012. One of the robbers used a baseball bat to strike the driver causing the driver to drop a bag containing approximately $210,889. Greene and the co-conspirator grabbed the moneybag and fled. Greene further admitted that on Sept. 8, 2016, he robbed the 2nd Amendment Gun shop at 4570 N. Rancho Drive, Suite #4, in Las Vegas. Greene stole a total of 18 handguns, rifles, and a suppressor from the display cases and racks inside of the business.
At the time of sentencing, the interference with commerce by robbery charge carries a maximum penalty of 20 years in prison and a $250,000 fine and the theft from a Federal Firearms Licensee charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Phillip N. Smith Jr.
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Justice Department Announces Actions to Strengthen Public Safety in Indian CountryRead the Press Release
The Justice Department today announced recent developments under the Task Force on Crime Reduction and Public Safety to strengthen law enforcement and public safety in Indian country, including the continued expansion of a program that gives tribes access to federal crime data, addressing the opioid crisis, serving victims of sex trafficking, and strengthening investigations into crimes against children.
“We have listened to the concerns of tribal law enforcement, who are dealing with public safety challenges including rising violent crime, the opioid crisis, and human trafficking, often with limited resources and manpower,” said Associate Attorney General Rachel Brand. “The Justice Department is committed to a strong government-to-government partnership with tribal nations, including sharing valuable crime data and supporting Native American victims of crime.”
Listening sessions with tribal law enforcement in May and June clarified some of the most pressing public safety issues in Indian country. The following actions will strengthen efforts to address these challenges.
The Department of Justice is expanding the Tribal Access Program (TAP) for National Crime Information in Fiscal Year 2018. TAP provides federally-recognized tribes access to national crime information databases for both civil and criminal purposes. TAP supports the selected tribes in analyzing their needs for national crime information and provides access, technology and training.
In its first two years, the department has worked collaboratively with tribal governments on the TAP program to help resolve long-standing public safety issues in Indian country, such as the inability to access national crime information databases.
Any federally-recognized tribe interested in joining TAP is invited to submit an expression of interest between Aug.16, 2017 and Sept. 15, 2017. For more information about TAP and instructions on submitting a statement of interest, please visit www.justice.gov/tribal/tribal-access-program-tap.
The Department of Justice and the Department of the Interior are hosting two upcoming Opioid Awareness Outreach meetings in August. The Drug Enforcement Administration (DEA), Executive office for the U.S. Attorneys (EOUSA), and the United States Attorney’s Offices (USAOs) in Alaska and Eastern California, in conjunction with the Department of the Interior’s Bureau of Indian Affairs Office of Justice Services (OJS), are sponsoring and co-hosting these important events. The outreach meetings will commence immediately after tribal consultations on Aug.16 in Anchorage, Alaska and on Aug. 29 in Sacramento, California. The opioid awareness outreach will include presentations from DEA on the signs of opioid abuse, especially heroin and fentanyl awareness; from BIA’s OJS on Narcan deployment initiatives in Indian country; and from the USAOs on federal drug laws. These discussions are part of an inter-departmental initiative to address the opioid crisis in Indian country.
“The developments announced today by Attorney General Sessions are vitally important to aiding tribal governments in dealing with and seeking solutions to serious drug, sex trafficking, and crimes against children issues afflicting their communities,” said acting Assistant Secretary of the Department of the Interior for Indian Affairs Michael S. Black. “I urge tribal leaders and their police departments to take advantage of upcoming opportunities to provide their input on and learn more about ways of addressing these critical areas of public safety in Indian country. I also want to thank Attorney General Sessions and DOJ for their work in supporting BIA and tribal law enforcement efforts to strengthen public safety in these vulnerable communities.”
The Justice Department’s Office of Justice Programs Diagnostic Center, a training and technical assistance resource, is expanding its presence in Indian country. At the request of interested tribes, the Diagnostic Center provides customized assistance on a wide range of public safety issues. Among the issues being addressed in current tribal engagements include information sharing in tribal justice systems and jurisdictional coordination among tribal and local police departments. For more information about the Diagnostic Center, please see www.ojpdiagnosticcenter.org.
The Office for Victims of Crime (OVC) is developing programs in partnership with Native organizations in Seattle, Chicago, and Albuquerque to provide urban American Indian and Alaska Native victims of sex trafficking with access to culturally appropriate, comprehensive victim services. Funded under OVC’s Project Beacon grant award program, these organizations will work collaboratively with state and local human trafficking task forces, as well as tribal communities, to ensure that American Indian and Alaska Native victims have an opportunity to receive a full complement of services designed to aid them in their recovery and healing from the experience of being trafficked.
Associate Attorney General Brand added: “We are committed to partnering with tribal nations, Native American organizations and others to meet the particular needs of Native American victims of sex trafficking, and to end the scourge of human trafficking more broadly.”
The Department of Justice’s National Indian Country Training Initiative, together with the FBI’s Indian Country Crimes Unit, recently co-sponsored an Indian Country Homicide and Child Abuse Training Seminar. The seminar was attended by FBI Special Agents, Assistant United States Attorneys, Bureau of Indian Affairs Agents and tribal law enforcement from across the country. The training covered a variety of topics meant to strengthen investigations into crimes against children, such as crime scene management, evidence collection, forensics, interviews, and dealing with victims of violent crime and sexual abuse.
The Attorney General remains committed to combatting violent crime and maintaining public safety in tribal lands, and will continue to pursue partnerships in support of American Indian and Alaska Native communities.
Jury Convicts Honduran Man of Assaulting Federal OfficerRead the Press Release
BROWNSVILLE, Texas – A 35-year-old illegal alien from Honduras has been convicted of assaulting a U.S. Border Patrol (BP) agent, announced Acting U.S. Attorney Abe Martinez. A federal jury returned a guilty verdict today against Hernan Cortez-Mazariegos following a one-day trial and approximately two hours of deliberations.
On Nov. 15, 2016, BP agents responded to illegal alien traffic south of the border fence near Azucena street in Brownsville. A BP agent attempted to apprehend Cortez-Mazariegos, but he fled. The agent followed and attempted to arrest him, at which time Cortez-Mazariegos struck him on the side of his face, sustaining minor injury. Cortez-Mazariegos was eventually subdued and apprehended with the assistance of another BP agent.
U.S. District Judge Andrew S. Hanen presided over the trial and has set sentencing for Nov. 21, 2017, at which time Cortez-Mazariegos faces up to eight years in prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The FBI and U.S. Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys David Coronado and Jody Young are prosecuting the case.
Johnson City Resident Sentenced to Serve over Twenty-Two Years in Prison for Role in Conspiracy to Distribute Crack CocaineRead the Press Release
GREENEVILLE, Tenn. – On August 17, 2017, Lamont Darnell Fortune, 37, of Johnson City, Tennessee, was sentenced by the Honorable R. Leon Jordan, Senior U.S. District Judge, to serve 272 months in federal prison for his role in a conspiracy to distribute crack cocaine in east Tennessee. Fortune was convicted of conspiracy in April 2017, following a two-day jury trial.
The evidence presented at trial showed that, from January 2011 to November 2015, Fortune conspired with others to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine. During this period, he made regular trips from Johnson City to Winston-Salem, North Carolina, to obtain multi-ounce quantities of crack cocaine to supply his coconspirators, who then sold those drugs in Johnson City and Bristol, Tennessee. Fortune supplied crack cocaine to an individual working on behalf of law enforcement on two occasions. In May 2015, he led Virginia law enforcement on a high-speed chase on I-77, at speeds of over 120 mph, as he returned from picking up a shipment of crack cocaine. Three of Fortune’s coconspirators pleaded guilty prior to his trial and have been sentenced.
This long-term investigation was the product of a partnership between the Johnson City Police Department and Federal Bureau of Investigation. Assistant U.S. Attorneys David Gunn and Christian Lampe represented the United States at trial.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Investment Advisor Who Stole Millions in Ponzi Scheme Sentenced to 9 Years in Prison for Wire Fraud and False StatementRead the Press Release
A long-time Bellevue investment advisor was sentenced today in U.S. District Court in Seattle to nine years in prison, three years supervised release, and $3,660,216 in restitution for wire fraud and making false statements, announced U.S. Attorney Annette L. Hayes. CHRIS YOUNG YOO, 44, pleaded guilty in March 2017, admitting he raised millions of dollars in investments by promising to invest his clients’ money in funds he managed. However, YOO never actually invested the money of certain clients, and instead used their money to pay his own living and business expenses, resulting in a loss of over $3.6 million to those clients. To conceal his fraud YOO provided false information to Securities and Exchange Commission (SEC) regulators in connection with an SEC investigation. At the sentencing hearing, U.S. District Judge Thomas S. Zilly said, “you’ve destroyed (the victims) lives, financially, emotionally and physically . . . your scheme went on for nine years. I think a nine-year sentence is appropriate.”
“This defendant thought he could lie, steal, and live the good life off his clients’ life savings,” said U. S. Attorney Annette L. Hayes. “Instead, he will be spending nine years in prison and many more years working to pay his clients back. Sadly, no matter what he does, he will never be able to make up for the betrayal and loss of peace of mind that he caused those who trusted him.”
According to records filed in the case, between 2006, and 2015, YOO was the majority owner and operator of Summit Asset Strategies, a Bellevue investment company. The company operated two funds that invested primarily in South Korea. After opening Summit, YOO realized that the management fees he was permitted to charge investors would not support his company or lifestyle, so he began funneling some investors’ money into a separate bank account, rather than into the Summit investment funds as promised. YOO misused the investments of 17 investors in this manner. YOO sent those investors fake account statements making it appear they were invested in the funds as he promised. Instead their money went to pay for luxury cars, and the rental of a $4 million Bellevue home.
YOO identified those investors he thought he could manipulate, and encouraged them to invest their life savings with him. Some sold their homes and invested the proceeds, while others drained their retirement accounts, trusting YOO with their futures. One of the victims wrote to Judge Zilly saying, “I have lost everything I worked for, including money gifted to me by my grandparents and parents. I have lost my future. I worked an honest job, packing my lunch to work each day to save. I thought I was making sound financial decisions, and trusting Yoo cost me everything. . . . My life savings. Gone.”
In 2014, YOO was required to disclose all of his bank accounts to the SEC as part of an SEC investigation into YOO’s management of two investment funds. YOO submitted misleading documents to the SEC to conceal the bank account he was using to commit his fraud. In 2015, YOO reached a settlement with the SEC in which he was ordered to pay restitution to Summit Asset Management investors because he had fraudulently inflated the fees he charged the funds. YOO has not paid the restitution, and even after this settlement YOO continued to fraudulently solicit investments and use the funds for his own purposes. In all, some 17 investors were defrauded of $3,660,216.
The case was investigated by the FBI, the Washington State Department of Financial Institutions, and the Bellevue Police Department. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Individual Convicted Overseas of Being Terrorist Who Participated in the 1969 British Consulate, Supermarket Bombings in Jerusalem SentencedRead the Press Release
Rasmieh Yousef Odeh, 70, was sentenced today, lost her United States citizenship, and will be deported from the United States for having obtained her United States citizenship unlawfully, Daniel L. Lemisch, acting United States Attorney announced.
Joining Lemisch in the announcement was Steve Francis, Special Agent in Charge of Immigration and Customs Enforcement, Homeland Security Investigations.
Odeh, a Chicago-area resident, was sentenced by United States District Judge Gershwin A. Drain. During the sentencing hearing, Judge Drain indicated that he would sign an order, today, revoking Odeh’s United States citizenship. As a result of that order, Odeh will no longer have legal status in the United States, will be deported to her nation of citizenship, Jordan, and is barred for life from reentering the United States. Judge Drain said Odeh intentionally falsified her U.S. citizenship documents and this sentence should be a deterrent to others thinking of lying to gain admission into the United States and citizenship.
Before immigrating to the United States, Odeh had been convicted overseas for participation in two terrorist bombings and for having been a member of the Popular Front for the Liberation of Palestine (PFLP), which has been designated a Terrorist Organization by the United States.
Acting U.S. Attorney Lemisch stated, “In 1969, the Popular Front for the Liberation of Palestine conducted two bombings in Jerusalem, Israel. One was at a Supersol supermarket, in which two individuals were killed and many more wounded. The second bombing was at the British Consulate. Defendant Odeh was arrested and charged with participation in the bombings, and in 1970 was convicted. She was sentenced to life imprisonment, but was released in 1979 after ten years’ imprisonment, as part of a prisoner exchange. In numerous television and video interviews throughout the years, other admitted participants in the bombings named Odeh as the person who chose the supermarket as a target, scouted the location and placed the bomb.”
“Today’s court action clears the way for this defendant’s removal from the United States and should serve as an unequivocal message that the U.S. will never be a haven for those seeking to distance themselves from their past atrocities,” said Steve Francis, HSI special agent in charge.
Odeh obtained a United States immigrant visa in 1994 and has lived in the United States for the last 22 years. In 2004, she obtained United States citizenship. She unlawfully failed to disclose her arrest and convictions regarding the bombings in both her application for her visa and her separate application for United States citizenship.
According to the plea agreement signed by Odeh and accepted by the court, Odeh admitted that in those applications, she lied about her criminal history by falsely denying that she ever had been arrested, charged with a crime, convicted, or imprisoned. In her plea, Odeh also admitted that “At the time she made the false statements, Defendant knew the statements were false, and that she made the false statements intentionally and not as a result of any mistake, Post-Traumatic Stress Disorder or any other psychological issue or condition, as she had previously claimed in court proceedings, or for any innocent reason. Odeh also admitted that at the time she made the false statements, she knew that it was unlawful for her to provide false information to the United States government in connection with her application for Immigrant Visa and her application for naturalization. Had Odeh revealed the truth about her criminal history, as she was required to by law, she never would have been granted an immigrant visa, admitted to the United States, allowed to live here for the last 22 years, or granted United States Citizenship.”
Acting U.S. Attorney Lemisch commended Immigration and Customs Enforcement, Homeland Security Investigations, and particularly Special Agent Stephen A. Webber, for the outstanding investigation which led to Odeh’s conviction. The prosecution was conducted by Assistant U.S. Attorneys Jonathan Tukel and Michael Martin.
Hialeah Woman Charged with Embezzling over $2.6 Million from Local BusinessRead the Press Release
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of federal charges against Carmen Silvia Rodriguez in connection with a fraud scheme to steal over $2.6 million from her employer.
Rodriguez, 55, of Hialeah, was charged with two counts of wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the information, from April 2010 through May 2016, Rodriguez worked for Starboard Cruise Services, Inc. (“SCS”), a Florida company that operates tax- and duty-free retail stores aboard cruise ships.
During the course of the alleged scheme, Rodriguez worked in SCS’s Finance and Administration Department. There, Rodriguez accessed company records related to two former SCS vendors (“SCS Vendor #1” and “SCS Vendor #2”) and added her own bank account information to the two vendors’ accounts. SCS Vendor #1 and SCS Vendor #2 did not do business with SCS after 2010.
The information further alleges that between April 1, 2010, and May 31, 2016, Rodriguez created false internal invoices that inflated the price of certain products purchased by SCS, often by overstating the shipping and handling costs associated with SCS’s purchase of the products. Rodriguez also created false internal invoices that purportedly reflected the purchase of certain products by SCS. For each of the inflated and/or false internal invoices, Rodriguez created a false purchase order, listing either SCS Vendor #1 or SCS Vendor #2 as the payee, for the difference between the money actually owed to the vendor, if any, and the inflated and/or false invoice price.
By creating the false purchase orders and making them payable to SCS Vendor #1 and/or SCS Vendor #2, Rodriguez caused approximately $2,669,372.30 in electronic Automated Clearinghouse payments to be transmitted from SCS’s bank account to Rodriguez’s personal bank accounts.
Each count of wire fraud carries a maximum term of twenty years in prison. Rodriguez made her initial appearance in Federal court on August 16, 2017 before U.S. Magistrate Judge Edwin G. Torres.
Mr. Greenberg commended the investigative efforts of the FBI. This case is being prosecuted by Assistant United States Attorney Christopher Browne.
An Information is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Harvey Man Sentenced for Receipt of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CHRISTOPHER ORGERON, age 34, of Harvey, was sentenced today for crimes involving the sexual exploitation of children.
U.S. District Judge Mary Ann Vial Lemmon sentenced ORGERON to seventy-five (75) months incarceration and five (5) years of supervised release. ORGERON was also ordered to pay restitution in the amount of $5,000.00 and he must register as a sex offender.
According to court records, beginning at an unknown time and continuing to on or about June 25, 2015, ORGERON knowingly received child pornography. On June 25, 2015, special agents with the U.S. Department of Homeland Security, Homeland Security Investigations executed a federal search warrant at ORGERON’s Harvey home. Computer forensic agents located over 26,000 images and 612 videos depicting the sexual exploitation of minors on ORGERON’s computers.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Harford County Man Sentenced to 10 Years in Prison for Using a Computer to Attempt to Coerce a Minor to Engage in SexRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On August 16, 2017, U.S. District Judge George L. Russell III sentenced William Ray Wagner, age 34, a resident of Harford County, Maryland, to 10 years in prison followed by a lifetime of supervised release for the use of interstate facilities to coerce a minor to engage in sex.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation; Harford County Sheriff Jeffrey R. Gahler; and Harford County State’s Attorney Joseph I. Cassilly.
According to his plea agreement, in the fall of 2014, Wagner was communicating on Facebook with an individual he believed was a 14-year-old girl who lived with her parents. The individual was actually an undercover Harford County detective.
In early October 2014, Wagner attempted to meet the individual to engage in sex, and used his computer to initiate graphic discussions about sex. He ultimately arranged to meet the individual at a restaurant in Bel Air on October 13, and then walk to a nearby trail to engage in sex. On that date, Wagner arrived at the agreed upon meeting location with a blanket and two condoms. He was arrested.
Wagner had previously been convicted of unlawful contact with a minor in 2009 and as a result, was required to register as a sex offender in Maryland. In April 2014, Wagner was arrested in Harford County and charged with failure to register as a sex offender.
As part of his plea agreement, Wagner must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
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. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the FBI, Harford County Sheriff‘s Office and Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Fresno Man Charged with Laundering over $800,000 in Marijuana Trafficking ProceedsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a seven-count indictment today against Omar Manuel Ramirez, 34, of Fresno, charging him with conspiracy to distribute marijuana, manufacture of marijuana, money laundering conspiracy, and money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ramirez grew marijuana in Fresno County and shipped it to states around the country, including Illinois, Virginia, and North Carolina. Ramirez’s customers deposited their payments for the marijuana into a bank account in Ramirez’s name. Typically within a day, Ramirez withdrew the deposits in Fresno. Over the course of two and a half years, Ramirez and co-conspirators used this technique to launder more than $800,000 in proceeds from selling marijuana.
This case is the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Ross Pearson is prosecuting the case.
If convicted, Ramirez faces a mandatory minimum penalty of five years in prison, a maximum statutory penalty of 40 years in prison, and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Defendants Indicted for Growing Marijuana in Lassen National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Guillermo Rubio-Alvarado, 43; Omar Rubio-Alvarado, 28; Sebastian Rubio-Aboyte, 23, all of Sinaloa, Mexico; and Fortino Chavarin-Parra, 19, of Jalisco, Mexico, charging them with conspiring to manufacture marijuana and manufacturing marijuana, and damaging public lands, U.S. Attorney Phillip A. Talbert announced.
According to court documents, all four defendants were arrested by law enforcement on July 31, 2017, following a search of a marijuana-cultivation site in the Lassen National Forest in Tehama County. Law enforcement eradicated approximately 15,000 marijuana plants at this cultivation site. A large quantity of additional plants was left undisturbed after agents discovered they were allegedly contaminated with Carbofuran (Furadan), a dangerous neurotoxic pesticide that has been banned in the United States, Canada, and the European Union.
This case is the product of an investigation by the United States Forest Service, the Tehama County Sheriff’s Office, and the California Department of Fish and Wildlife. Assistant U.S. Attorney Katherine T. Lydon is prosecuting the case.
If convicted of the marijuana charges, the defendants face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of damaging public lands, all four defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine.
Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations; the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Senior VP of Sales of Hudson County, New Jersey, Scrap Metal Company Admits 17-Year Conspiracy to Defraud CustomersRead the Press Release
NEWARK, N.J. – The former senior vice president of sales at Cinelli Iron & Metal Co. (CIMCO) today admitted participating in a 17-year conspiracy that defrauded customers out of millions of dollars, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael A. Valenti III, 43, of Hasbrouck Heights, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
CIMCO, which was headquartered in Secaucus, New Jersey, purchased scrap metal for resale and operated three scrap metal recycling facilities in New Jersey. CIMCO trucks would deliver scrap metal containers to customer jobsites and remove them after they were filled. CIMCO then purportedly paid customers based on the type and net weight of the scrap material.
From 1999 through March of 2016, Valenti, Craig Cinelli, Joseph Cinelli Sr., David Barteck and others allegedly used a variety of fraudulent business practices to buy scrap metal from CIMCO’s customers for less than CIMCO should have paid. The company then resold the scrap metal at a profit.
Instead of paying the proper, agreed-upon amounts for the actual weight, members of the conspiracy used a variety of techniques to misrepresent the true weight and type of the scrap metal, including altering documents to reflect a lower weight, removing scrap metal from a haul before it was weighed and misrepresenting the types of scrap metal contained in a haul.
The wire fraud conspiracy count carries a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
During his plea hearing, Valenti admitted that the loss caused by the conspiracy that was reasonably foreseeable to him was more than $9.5 million, but less than $25 million. His sentencing is scheduled for Nov. 21, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York; special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker in New York; and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: Linda George Esq. Hackensack, New Jersey
Former Officials of Central United Talmudic Academy Indicted in $3 Million Fraud SchemeRead the Press Release
A five-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Elozer Porges and Joel Lowy, the former Executive Director and former Assistant Director, respectively, of the school system known as Central United Talmudic Academy (CUTA) in Brooklyn, New York, with one count of conspiracy to commit mail and wire fraud and four counts of mail fraud. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Viktor V. Pohorelsky at the Brooklyn federal courthouse.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Mark Peters, Commissioner, New York City Department of Investigation, and Special Agent-in-Charge, Bethanne M. Dinkins, United States Department of Agriculture, Office of Inspector General.
As alleged in the indictment, between 2013 and 2015, Porges and Lowy submitted documents to the New York State Department of Health (NYSDOH) that falsely claimed that school children had received meals which, in fact, they had never been served. The defendants fraudulently inflated the number of meals served at various CUTA schools in order to obtain larger reimbursement payments pursuant to the federal government’s Child and Adult Care Food Program (CACFP). The CACFP is a program designed to assist schools and other institutions in providing meals to, among others, at-risk children. In total, Porges and Lowy, based on their false representations, fraudulently obtained approximately $3 million in reimbursement payments to CUTA.
“Former CUTA Executive Director Porges and Assistant Director Lowy allegedly obtained $3 million from a federal program designed to fund meals for needy children by claiming to have served meals they did not serve, thus undermining a program designed to assist the most vulnerable members of our community,” stated Acting United States Attorney Rohde. “We will continue to work closely with our law enforcement partners to root out fraudulent schemes that misuse public funds.”
“The Child and Adult Care Food Program strives to provide for at-risk children, and as school officials, Porges and Lowy should have strived to do the same,” stated Assistant Director-in-Charge Sweeney. “Instead, they allegedly falsified documents to gain approximately $3 million in reimbursement for meals that were never served. To defraud programs designed to help those in need is simply inexcusable, and we will work relentlessly with our law enforcement partners to thoroughly investigate these frauds.”
“As charged, these defendants stole food from children in need by diverting millions of dollars in public funds intended to pay for their dinners,” stated DOI Commissioner Peters. “Public funds must be spent for public purposes and, when they are not, DOI will expose the fraud and arrest the wrongdoers. DOI thanks our dedicated law enforcement partners on this case: the United States Attorney’s Office for the Eastern District of New York, the Federal Bureau of Investigation, and the Office of the Inspector General for the United States Department of Agriculture.”
“The Child and Adult Care Food Program (CACFP) was created to provide nutrition assistance to children and adults who are truly in need,” stated Special Agent-in-Charge Dinkins. “Those involved in fraud and abuse of USDA feeding programs will be investigated by our office to the fullest extent. In this joint investigation with the Federal Bureau of Investigation and the New York City Department of Investigation, we worked together to identify and hold accountable those who sought to profit from the CACFP through illegal schemes. The USDA, Office of Inspector General will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, to protect the integrity of these programs and bring to justice those who commit fraud.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years’ imprisonment on the conspiracy to commit wire fraud and mail fraud count, as well as on each of the mail fraud counts.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Erik Paulsen and Maria Cruz Melendez are in charge of the prosecution.
The Defendants:
ELOZER PORGES
Age: 43Brooklyn, NY
JOEL LOWY
Age: 29
Brooklyn, NY
E.D.N.Y. Docket No. 17-CR-431 (NGG)
Former Manhattan City Attorney Pleads Guilty to Child Porn ChargesRead the Press Release
WICHITA, KAN. - A former city attorney of Manhattan pleaded guilty today to federal child pornography charges, U.S. Attorney Tom Beall said.
Bill Raymond, 55, Andover, Kan., pleaded guilty to three counts of transporting child pornography and one count of possessing child pornography. Raymond admitted that he emailed child pornography to himself using a cellular telephone and a computer on Nov. 9, 2014, Feb. 28, 2015 and May 17, 2015. He also admitted that on July 30, 2015, he possessed child pornography.
The crimes occurred in Butler and Riley counties. Raymond became the city attorney in Manhattan after serving as an assistant county counselor in Sedgwick County.
Sentencing is set for Nov. 6. He faces not less than five years and not more than 20 years in federal prison and a fine of up to $250,000 on each distribution count, and up to 10 years and a fine up to $250,000 on the possession count. Beall commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.