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22 September 2017
Reno Lawyer Convicted of Filing False Tax Returns and Obstructing the IRSRead the Press Release
RENO, Nev. – A Reno, Nevada attorney was convicted today following a three-week jury trial, of filing false tax returns and obstructing the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
According to the indictment and the evidence presented at trial, from approximately 2009 through 2010, Delmar L. Hardy, 63, concealed his business partner’s $700,000 investment in XYZ Real Estate. Hardy concealed his partner’s stake in XYZ and obstructed the internal revenue laws by falsely claiming all of XYZ Real Estate’s profits and losses on his own 2009 and 2010 individual tax returns. Hardy also falsified his 2008 through 2010 returns by not reporting more than $400,000 in cash income his law practice received.
U.S. District Court Judge Miranda M. Du scheduled sentencing for Jan. 12, 2018. Hardy faces a statutory maximum sentence of three years in prison for each count of filing a false return and obstructing the internal revenue laws. He also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS Criminal Investigation and the Drug Enforcement Administration, who conducted the investigation, and Assistant U.S. Attorney James E. Keller and Trial Attorney Lee F. Langston of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Registered Sex Offender Pleads Guilty to Interstate Travel to Engage in Sex with a MinorRead the Press Release
PROVIDENCE – Robert F. Eccleston, 56, of Fairhaven, MA, pleaded guilty in federal court in Providence, R.I., on Thursday to traveling in interstate commerce to engage in sexual activity with a minor.
Eccleston, a registered sex offender, admitted to the Court that on July 12, 2016, he traveled from Massachusetts to East Providence, expecting to meet with and engage in illicit sexual activity with a 15-year-old boy he had been communicating with on the Internet.
Eccleston’s guilty plea to one count of interstate travel to engage in sexual activity with a minor is announced by Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the Court, on July 7, 2016, Eccleston responded to an online Personals/Encounters posting and photograph of a male who claimed to be 18-years-old and single. The online posting was actually posted earlier that day by a Rhode Island State Police Detective assigned to the Rhode Island State Police Internet Crimes Against Children (ICAC) task force.
According to court documents and information presented to the Court, over the next several days, an HSI agent posing as the person who placed the online posting and Eccleston engaged in a series of Internet and email communications. The communications quickly became sexual in nature. The agent, posing as the person who placed the online posting, repeatedly told Eccleston that he was only 15-years-old, adding that he lived with his mother. As the communications continued, and believing that he was actually communicating with a 15-year-old, Eccleston asked for photographs of the boy, including an explicit nude photograph.
According to court documents and information presented to the Court, at Eccleston’s urging, the two agreed to meet in East Providence on July 12, 2016, to engage in sexual activity. Rhode Island State Police, HSI agents and ICAC Task Force members arrested Eccleston in the parking lot of an East Providence shopping plaza near the location he believed he was meeting the 15-year-old boy.
According to court records, Eccleston, a registered sex offender, was ordered to register as a sex offender following his conviction of raping a teenage boy in Massachusetts in 2006.
Eccleston has been detained in federal custody since his arrest on July 12, 2016. He is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on December 15, 2017.
Interstate travel to engage in sexual activity with a minor is punishable by statutory penalties of up to 60 years in federal prison; a term of supervised release of 5 years; a fine of up to $250,000; and a mandatory special assessment of $5,000.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The Rhode Island Internet Crimes Against Children Task Force is comprised of law enforcement personnel from the Rhode Island State Police, Homeland Security Investigations, United States Postal Inspection Services, and the Warwick, Cranston, East Providence, Newport, Pawtucket, North Kingstown, Portsmouth, and Woonsocket Police Departments.
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Recruiter of Drug Traffickers and Alien SmugglersRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Lara A. Stingley (619)546-8403 or Assistant U.S. Attorney Joseph J.M. Orabona (619)546-7951
NEWS RELEASE SUMMARY – September 22, 2017
SAN DIEGO – Alexander David Faudoa, a recruiter of drug traffickers and alien smugglers from Imperial County, was sentenced in federal court today to 70 months in prison for conspiring to distribute cocaine and smuggle aliens.
According to court records, Faudoa was responsible for the recruitment of drivers to transport undocumented aliens and narcotics from Mexico to locations in the United States, including California, Colorado, Kansas, and North Carolina. Faudoa communicated with his co-conspirators in Mexico and the United States in order to complete these crimes.
For example, Faudoa admitted that between June and July 2016, he coordinated the distribution of approximately 2.92 kilograms of cocaine between Kansas and California. Faudoa also admitted that in December 2016, he coordinated two separate events involving the transportation and harboring within the United States of approximately 19 undocumented aliens who had been successfully smuggled across the U.S./Mexico border in the Southern District of California. Each of these undocumented aliens was paying between $3,000 and $7,500 per person to be smuggled into the United States and transported to their final destination. Faudoa also admitted that he agreed to pay the drivers who were transporting the undocumented aliens a nominal fee – such as $400 to transport five undocumented aliens to their destination inside the United States.
The investigation was led by the Federal Bureau of Investigation with the assistance of U.S. Border Patrol. On March 1, 2017, a complaint was filed against Faudoa and an arrest warrant was issued. Faudoa was arrested on March 17, 2017 attempting to enter the United States from Mexico through the Calexico, California, Port of Entry. Faudoa was taken into custody, where he has remained for the pendency of this case.
Faudoa was sentenced today by U.S. District Judge Roger T. Benitez for one count of conspiracy to distribute cocaine and one count of conspiracy to commit alien smuggling.
Acting United States Attorney Alana W. Robinson said, “This defendant directed a vast network of drug and people smugglers across the country, and he did so audaciously and without regard for the well-being of his customers. This sentence means fewer people will be smuggled at great risk to their own safety, and fewer deadly narcotics on our streets.”
Acting United States Attorney Alana W. Robinson said, “This defendant directed a vast network of drug and people smugglers across the country, and he did so audaciously and without regard for the well-being of his customers. This substantial sentence will result in fewer people being smuggled at great risk to their own safety, and fewer deadly narcotics in the marketplace to harm our communities.”
FBI Special Agent in Charge Eric S. Birnbaum said, “Alexander David Faudoa played a key role in an organization trafficking in illegal drugs and people. Today's sentencing demonstrates how the FBI, in working with our law enforcement partners in the Imperial Valley, target and dismantle those trafficking organizations that threaten the safety and security of our nation.”
U.S. Border Patrol Chief Anthony Porvaznik stated, “United States Border Patrol agents enthusiastically work with all law enforcement partners to secure our nation and provide safety for everyone in our communities. The combination of the Border Patrol agents, Federal Bureau of Investigation and U.S. Attorney’s Office efforts in this case are an example of truly professional work to enforce our laws and enable positive outcomes.”
DEFENDANT Criminal Case No. 17CR0923-BEN
Alexander David Faudoa Age: 27 Citizenship: United States
CHARGES THAT FAUDOA WAS SENTENCED ON:
Counts 1 – Conspiracy to Distribute Cocaine (21 U.S.C. §§ 841(a)(1) and 846)
Maximum Penalties: mandatory minimum of 5 years in prison; maximum sentence of 40 years in prison; maximum fine of $250,000; maximum term of supervised release of 3 years
Count 2 – Conspiracy to Commit Alien Smuggling (18 U.S.C. § 371)
Maximum Penalties: maximum sentence of 5 years in prison; maximum fine of $250,000; maximum term of supervised release of 3 years
INVESTIGATING AGENCIES
Federal Bureau of Investigation
U.S. Border Patrol
Prior Sex Offender Sentenced to 200 Months for Distributing Child PornRead the Press Release
DAYTON – Ronald Scott Gibson, 46, of West Manchester, Ohio, was sentenced in U.S. District Court to 200 months in prison for distributing child pornography after having been convicted of a prior related state sex offense.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to court documents, Gibson’s illegal activity was discovered when the Swiss Federal Criminal Police conducted an investigation to identify those possessing and sharing child pornography through an online file sharing program.
In March 2016, Gibson provided one of the Swiss undercover officers with the password to his shared folder on the network so that the officer could gain access to child pornography.
During the course of the investigation, agents discovered more than 4,000 images and 13 videos of child pornography, including images of adults molesting and sexually abusing prepubescent children.
Investigators also discovered online chat messages in which Gibson said he liked toddlers the most.
Gibson was previously convicted of Gross Sexual Imposition in Preble County Common Pleas Court in 1998 and pleaded guilty in this case in December 2016 to one count of distributing child pornography.
“The images and videos that Gibson shared were created for an international criminal market that is engaged in the business of destroying the lives of children,” U.S. Attorney Glassman said. “Gibson was an active and willing participant in that market, and that serious offense warrants the sentence he received today.”
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorneys Dominick S. Gerace and Andrew J. Hunt, who are representing the United States in this case.
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Police Officer Charged with Providing Drugs to Addict FriendRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that John Breault, age 31, made an initial appearance in federal court in Burlington today on a heroin distribution charge. United States Magistrate Judge John M. Conroy released Mr. Breault on conditions.
According to a federal Criminal Complaint filed yesterday, Mr. Breault, while a police officer with the Royalton, Vermont, Police Department, last summer provided drugs to a woman with whom he was having an intimate relationship. An affidavit filed with the Criminal Complaint, by Special Agent Colin Simons with the Federal Bureau of Investigation, alleges that the woman was an opiate addict who pleaded for drugs and obtained them from Breault. The FBI filing indicates that Breault took drugs from the Royalton Police Department evidence vault, which drugs had been seized in a June 2017 raid, and provided them to the woman in July, 2017.
Breault recently resigned from the Police Department. He is represented by attorney Robert W. Katims of Burlington. The investigation was conducted by the FBI and the United States Drug Enforcement Administration. The maximum statutory penalty for the drug distribution charge is 20 years in prison. The U.S. Attorney’s Office stated that the Criminal Complaint is only a charge, and that Breault is presumed innocent. The United States is represented by Assistant U.S. Attorney William Darrow.
Pensacola Man Sentenced to 25 Years in Federal Prison for Drug and Firearm CrimesRead the Press Release
PENSACOLA, FLORIDA – Clifford B. Gandy Jr., 26, of Pensacola, was sentenced today to 25 years in prison after an October 2016 jury conviction of possession with intent to distribute cocaine and marijuana, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In May 2016, an officer walking on patrol observed Gandy inside a running vehicle in a public parking lot with three bags containing a white powder on Gandy’s lap. Another officer confirmed this observation. As the officers approached, Gandy attempted to reverse the vehicle to escape capture. The officers drew their weapons and prevented Gandy from leaving. While one officer removed Gandy from the vehicle, a digital scale and cocaine bags fell onto the ground. A vehicle search revealed $800 in cash and a loaded semi-automatic pistol in the closed center console along with a bag of marijuana. The firearm was stolen, and Gandy is a multi-convicted felon.
This case resulted from an investigation by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Pensacola Police Department. Assistant United States Attorney David L. Goldberg prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Oxnard Man Sentenced to Five Years in Prison for Brokering Sale of Fentanyl PillsRead the Press Release
SAN FRANCISCO – King Edward Harris II was sentenced today to five years in prison for distributing fentanyl pills, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin.
Harris, 35, of Oxnard, pleaded guilty on April 7, 2017, to six counts of distributing and possessing with intent to distribute fentanyl. According to the plea agreement, Harris admitted that, over the course of six transactions, he brokered the sale of over 2,300 counterfeit oxycodone pills created by a supplier operating a pill press in San Francisco. Although the pills were marked as genuine oxycodone pills, they were instead laced with fentanyl. Harris admitted that, in total, the pills contained over 160 grams of fentanyl.
On November 29, 2016, federal grand jury returned a superseding indictment charging Harris with conspiracy to distribute fentanyl, as well as six counts of distribution and possession with intent to distribute fentanyl, in violation of 21 U.S.C. § 841(a)(1).
Fentanyl is a dangerous and highly potent opiate about 100 times more powerful than morphine. Just two milligrams of fentanyl can constitute a lethal dose. Fentanyl is particularly dangerous when it is used to create counterfeit pills. Illegal pill press operations will sometimes use fentanyl, which is cheaper than other opiates, to create fake pills that stamped to look like genuine oxycodone pills. Because fentanyl is such a powerful opiate, a small difference in the amount of fentanyl in a homemade pill can make a huge difference in its potency. Counterfeit pills containing fentanyl have already been linked to numerous unintentional overdoses by users who believed they were ingesting a much less powerful opiate.
“Counterfeit pills made with fentanyl represent a fearsome public safety threat to our communities and intensify the opioid crisis,” said U.S. Attorney Stretch. “The distribution of fentanyl must be stopped and our office will continue to fight against its devastating effects on the men, women and children in northern California.”
The sentence was handed down by the Honorable Susan Illston, U.S. District Judge, following Harris’s guilty plea. Judge Illston also sentenced the defendant to a five-year period of supervised release. The defendant was remanded into federal custody and will begin serving the sentence immediately.
Assistant U.S. Attorney Rita Lin is prosecuting the case with the assistance of Amanda Martinez, Rawaty Yim, Theresa Benitez, and Wincy Wong. The prosecution is the result of an investigation by the DEA, United States Postal Inspector, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Internal Revenue Service.
Owner of Grandview Business, Destroyed by Explosion, Indicted for Illegal ExplosivesRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that the owner of a Grandview, Mo., business destroyed in an explosion earlier this year is among two men who have been indicted by a federal grand jury for illegally manufacturing and dealing in explosives.
James Witt, 76, of Grandview, and Thomas McKeehan, 66, of Belton, Mo., were charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Aug. 9, 2017. That indictment was unsealed and made public today upon McKeehan’s arrest and initial court appearance. McKeehan remains in federal custody pending a detention hearing; Witt will self-surrender to authorities.
Witt was the owner of JW’s Lawn and Garden Equipment, 12010 S. 71 Hwy., Grandview, which was destroyed in an explosion on Jan. 3, 2017.
The federal indictment alleges that Witt and McKeehan used the business as a place to manufacture illegal explosive devices, including M-80 and M-100 explosives. They allegedly manufactured the explosive devices by buying bulk supplies of chemicals and then combining them to produce the illegal explosive devices at JW’s Lawn and Garden Equipment.
They also allegedly purchased commercial fireworks without the license to do so. McKeehan purchased approximately 40 cases of commercial fireworks for $10,000 in November 2016, the indictment says. McKeehan met the seller at a truck stop on Interstate 80 in Iowa to obtain the fireworks.
According to the indictment, McKeehan maintained a storage unit in Belton that was used to store explosives. Later the same night after the Jan. 3, 2017, explosion, Witt and McKeehan allegedly traveled to that storage unit and removed the fireworks that were stored at that location. On Jan. 17, 2017, Witt and McKeehan loaded a van with commercial fireworks and illegal explosive devices from a commercial shipping container in Lone Jack, Mo., the indictment says. McKeehan allegedly contacted an individual in Wisconsin to sell the fireworks for approximately $32,000.
Witt and McKeehan are charged together in one count of conspiracy to engage in the business of manufacturing and dealing in explosives from January 2015 to Jan. 17, 2017.
Witt and McKeehan are charged together in one count of engaging in the business of dealing in explosive materials from Jan. 3 to Jan. 17, 2017, including approximately 1,080 commercially packaged 1.3g, 3-inch aerial display shells; approximately 13,968 (M-Series) improvised explosive devices; approximately 3,200 (larger M-Series) improvised explosive devices; and approximately 1,633 commercially packaged 1.3g, 3-inch aerial display shells, without a license to do so.
McKeehan is also charged with one count of making a materially false statement. McKeehan allegedly told ATF agents that he had no knowledge of Witt’s involvement in manufacturing illegal explosive devices at Witt’s place of business.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Orlando Man Sentenced to 20 Years in Prison for Fentanyl Overdose DeathRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Hugo Margenat-Castro (Orlando, 25) to 20 years in federal prison for conspiracy to distribute heroin and distributing fentanyl that caused the death of another. He pleaded guilty on March 17, 2017.
According to court documents and evidence from the sentencing hearing, Margenat-Castro used a social networking website called “The Experience Project” to advertise that he had heroin available for sale. He posted these ads in forums titled, “I Love Heroin” and “Heroin in Orlando.” Visitors to the website could then contact Margenat-Castro and arrange to meet him to purchase the heroin. At some point, the heroin began to be laced with fentanyl.
On August 18, 2015, W.G. contacted Margenat-Castro on the website and arranged to travel from Georgia to Orlando to purchase heroin. Shortly after returning to Georgia, W.G. injected what he thought was heroin. The next morning, after trying to contact W.G. and getting no response, a family member drove to W.G.’s home and found him dead in the bathroom. The purported heroin that W.G. had purchased from Margenat-Castro and the needles that he had used to inject the heroin were also in the bathroom. Subsequent testing revealed that the substance that W.G. had purchased from Margenat-Castro was fentanyl, not heroin. A medical examiner determined that W.G. died of fentanyl toxicity and his death was ruled a homicide.
This case was investigated by the Drug Enforcement Administration, the Orange County Sheriff’s Office, and the Osceola County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Shawn P. Napier.
Olean Woman Pleads Guilty to Stealing Funds Which Resulted in Closing of Credit UnionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced that Norma Gold, 57, of Eldred, PA, pleaded guilty to false entries in federal credit union reports before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 30 years in prison, and a fine of $1,000,000.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that Gold was an employee of the Olean Tile Employees Federal Credit Union (OTEFCU) for approximately 26 years between 1986 and December 2012. For the last 20 years, Gold served as office manager and was responsible for keeping accurate financial records on behalf of the Credit Union.
Between December 2007, and December 2012, Gold embezzled funds and made false entries in OTEFCU’s general ledger and altered financial statements, making it appear that the OTEFCU’s account balances were larger than they actually were. In order to conceal her theft, Gold altered the true balances of the Credit Union accounts maintained by outside banks and financial institutions, which held the vast majority of the Credit Union funds. This conduct caused substantial hardship to the OTEFCU and substantially jeopardized its safety and soundness, in that the OTEFCU was forced to close as a result of the theft. The OTEFCU suffered a total loss of $179,939.21.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the National Credit Union Administration; the U.S. Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson; and the Olean Police Department, under the direction Chief Jeffrey Rowley.
Sentencing is scheduled for December 21, 2017, at 12:30 p.m. before Judge Arcara.
North Floridians Warned of Opioid AbuseRead the Press Release
TALLAHASSEE, FLORIDA – As designated by Presidential proclamation, September 17 through 23 is National Prescription Opioid and Heroin Epidemic Awareness Week. In observance, the United States Attorney’s Office for the Northern District of Florida is urging Northern Floridians to be aware of the rising public health crisis of opioid abuse.
United States Attorney Christopher P. Canova said: “Good people are suffering as a result of this crisis. Compounding the problem is that drug dealers are adding other substances, such as fentanyl and carfentanyl, to the heroin sold, making the mixture so strong that very small doses are fatal. We must educate the community of this danger, while bringing to justice those who peddle this poison. The heroin and opioid epidemic requires a coordinated response from law enforcement agencies, treatment centers, and the public.”
Attorney General Sessions has mentioned that, in 2015, a record 52,000 Americans lost their lives to drug overdoses. For Americans under the age of 50, drug overdoses are now the leading cause of death. Based on preliminary data, approximately 64,000 Americans lost their lives to drug overdoses last year. In 2015, opioids were responsible for most of the fatal overdoses in this country, killing more than 33,000 Americans – quadruple the number from 20 years ago. Last year, 1.3 million hospital visits in the United States were related to these drugs.
During this week and beyond, Americans can learn more about the disease of addiction, join with community members to support evidence-based prevention and treatment programs, and stand with those who are suffering or recovering from a substance use disorder to let them know they are not alone.
Education:
Opioid Overdose and Reversal Training: In July, the U.S. Attorney’s Office and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) co-sponsored trainings in Pensacola for 85 law enforcement officers, first responders, health care professionals, and military personnel in opioid overdose treatment and reversal options, including the use of the drug Naloxone/Narcan. If administered quickly enough, Naloxone can reverse the effects of an opioid overdose and restart a victim’s breathing. Many agencies within the Northern District of Florida have already equipped their first responders with the opioid reversal drug.
Film Screenings and Panel Discussions: The Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA) co-produced a 45-minute documentary titled Chasing the Dragon: The Life of an Opiate Addict. The film features several stark, first-hand accounts of the dangers of opiate addiction. A free download of the film is available online, along with a teacher discussion guide.
Over the past year, the U.S. Attorney’s Office has partnered with other law enforcement agencies, including the FBI and DEA, to host screenings of the film to educate students on the dangers of opiate abuse and to discuss how the issue could impact their lives and future careers.
On November 3, the U.S. Attorney’s Office and LEAD Coalition will co-host the Bay County Youth Crime Prevention Summit at Gulf Coast State College in Panama City. The Chasing the Dragon film screening will be a part of this program.
Enforcement
The U.S. Attorney’s Office prosecutes heroin and other drug-related offenses. This is a recent example.
Six People Sentenced in Heroin Trafficking Conspiracy
In 2017 and 2016, six residents of the Gainesville/Ocala area were sentenced for conspiring to distribute heroin and other drug-related charges. Several of the defendants were responsible for more than one kilogram (2.2 pounds) of heroin in the conspiracy.
What You Can Do:
- Talk to your family, friends, colleagues, and community about the dangers of heroin and opioid abuse. It can happen to anyone.
- Contact law enforcement officers if you suspect drug-related activity in your neighborhood.
- If you have prescription opioids in your home, ensure they are safely locked away. For information about properly disposing of unused medicines, visit the U.S. Food and Drug Administration website.
For More Information: 2017 Presidential proclamation
Department of Justice, Heroin and Opioid Awareness
Chasing the Dragon: The Life of an Opiate Addict
Attorney General Sessions Announces Opioid Fraud and Abuse Detection UnitThe United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Nicarguian Pleads Guilty to 18-Year-Old Rico IndictmentRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ERWIN J. MIERISCH, JR., age 49, of Nicaragua, pled guilty to a one-count Indictment charging him with violating the Racketeer Influenced and Corrupt Organizations Act.
According to court documents, MIERISCH, along with co-defendants ROBERTO GAMBINI and JOSE ESTEBAN MCEWAN, conspired to launder drug proceeds and to assault the plaintiff in a Texas civil case to prevent her from testifying. The Indictment was handed down on July 9, 1999. GAMBINI pleaded guilty in 2000 and was eventually deported to his native Italy. The third defendant, MCEWAN, died in Nicaragua several years ago.
MIERISCH was a fugitive since the Indictment was returned. He was detained in Mexico City in December of 2016, and brought to this country to face the charge.
MIERISCH faces a maximum 20 years imprisonment, followed by up to 3 years supervised release, a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any individual or entity, and a $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for December 13, 2017.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and Homeland Security Investigations in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Niagara Falls Man Pleads Guilty to Bomb Charge That Led to the Loss of His LegRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced that Michael O’Neill, 47, of Niagara Falls, NY, pleaded guilty to unlawful possession of a destructive device before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years in prison and a $10,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that in the early hours of July 21, 2015, the Niagara County Sheriff’s Office responded to a 911 call regarding an injury at 6761 Walmore Road in Wheatfield, NY. When emergency personal arrived at the scene, they discovered the defendant with a significant injury to his lower left leg, apparently the result of an explosion. O’Neill was immediately taken by Mercy flight to ECMC, where his left leg was amputated below the knee.
Subsequently, personnel from the Erie County Bomb Squad entered the unattached garage of the residence where the explosion occurred and discovered what appeared to be an area where explosive devices were being manufactured. Explosive powder and BB pellets were in plain view. Upon further inspection, Bomb Squad personnel discovered six destructive devices, five of which were constructed of hard cardboard tubing with sealed ends and a fuse. One of those five devices was labeled, “Powder w/Nails.” The sixth device was made out of a flashlight with sealed ends and a hole with a wick coming from the center. Other items discovered on the property included two pill bottles labeled as flash powder, a bag of potassium perchlorate, 36 shotgun shells reloaded with fragments inside, a plastic bottle of triple seven powder, a plastic box of triple seven pellets, and a plastic bottle labeled as triple seven powder.
Later on July 21, O’Neill told investigators that he had watched a video on YouTube regarding stump removal and had made a couple of M80’s. When the explosion occurred, O’Neill stated he was using extra materials from the M80’s to make “something.” The defendant said he was using a heat gun, which ignited what he was making. O’Neill dropped the item he was making on the floor of the garage and attempted to stomp it out when it exploded.
The plea is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, and the Niagara County Sheriff’s Department, under the direction of Sheriff James Voutour.
Sentencing is scheduled for December 11, 2017, at 1:00 p.m. before Judge Wolford.
Newport Family Members Sentenced in Illegal Steroid ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Five members of the Pasternak family of Newport, Tennessee, have been sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, for their roles in a large illegal steroid conspiracy in east Tennessee. In May 2017, these individuals pleaded guilty to a federal indictment charging them with conspiring to manufacture and distribute anabolic steroids, a Schedule III controlled substance, and conspiring to launder money.
Joel Logan Pasternak, 28, was sentenced to serve 108 months in federal prison and pay a $2.8 million monetary judgement. Edward Stanley Pasternak, 59, was sentenced to serve 36 months in federal prison. Lori Pasternak, 52, was sentenced to serve 12 months and one day in federal prison. Edward Pasternak and Lori Pasternak were also ordered to jointly pay a monetary judgement of $100,000. Upon their release from prison, all three of these individuals will be supervised by U.S. Probation for three years. Two other family members Joshua Pasternak, 32, and Jared Pasternak, 23, were both sentenced to serve four days of intermittent confinement, followed by five years of probation. Additionally, Joshua and Jared were each ordered to pay a $10,000 monetary judgement.
In addition to the prison sentences and fines outlined above, the United States forfeited real estate, cars, and boats which were derived from the criminal organization or were used to commit the crimes.
The Pasternak criminal organization included 17 additional individuals who have pleaded guilty and are awaiting sentencing. Their scheme involved importing raw steroid powders shipped in misbranded packaging from China and other countries, which were converted to liquid, pill, and tablet form and marketed via the internet using the Incredible Hulk image and the name Hulkbody. Customers purchased the steroid products by sending money to Western Union, MoneyGram, and Walmart-to-Walmart Money Transfer using false identities. Over a three-year period, the Pasternak drug organization operated five different clandestine steroids labs in the Johnson City area, derived more than $2.8 million in criminal proceeds, engaged in thousands of sales transactions, and involved a total of 22 co-conspirators. Law enforcement officers found what is described as one of the largest clandestine steroids lab in the United States as part of the investigation.
Agencies involved in this investigation included the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, U.S. Postal Inspection Service, U.S. Department of Homeland Security Investigations and the Washington County Sheriff’s Office. Helen C.T. Smith, Assistant U.S. Attorney represented the United States in court proceedings.
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New Hampshire man admits to bank fraud chargeRead the Press Release
WHEELING, WEST VIRGINIA - A Dover, New Hampshire man has admitted to bank fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.
Kelvin L. Potter, age 36, pled guilty today to one count of “Bank Fraud.” Potter admitted to transferring money from an account at Chase Bank belonging to Velco, Inc., which holds the business account of Vocelli Pizza in Wheeling, without authorization. The crime occurred in May 2015.
Potter faces up to 30 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
U.S. Magistrate Judge James E. Seibert presided.
Nevada Lawyer Convicted of Filing False Tax Returns and Obstructing the IRSRead the Press Release
A Reno, Nevada attorney was convicted today following a three-week jury trial, of filing false tax returns and obstructing the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven Myhre for the District of Nevada.
According to the indictment and the evidence presented at trial, from approximately 2009 through 2010, Delmar Hardy, 63, concealed his business partner’s $700,000 investment in XYZ Real Estate. Hardy concealed his partner’s stake in XYZ and obstructed the internal revenue laws by falsely claiming all of XYZ Real Estate’s profits and losses on his own 2009 and 2010 individual tax returns. Hardy also falsified his 2008 through 2010 returns by not reporting more than $400,000 in cash income his law practice received.
U.S. District Court Judge Miranda M. Du scheduled sentencing for Jan. 12, 2018. Hardy faces a statutory maximum sentence of three years in prison for each count of filing a false return and obstructing the internal revenue laws. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS Criminal Investigation and the Drug Enforcement Administration, who conducted the investigation, and Assistant U.S. Attorney James E. Keller and Trial Attorney Lee F. Langston of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Michigan Man Sentenced to over 28 Years for Possessing Crystal MethRead the Press Release
A Greenbush, Michigan man was sentenced yesterday to 340 months in federal prison on charges that he possessed with the intent to distribute methamphetamine, also known as crystal meth, announced Acting United States Attorney Daniel L. Lemisch.
Lemisch was joined in the announcement by was Timothy Plancon, Special Agent in Charge of the Drug Enforcement Administration, Detroit Division.
Daniel Harrington, 45, was sentenced by United States District Judge Thomas Ludington in Bay City, Michigan.
Harrington pleaded guilty on February 7, 2017, to one count of a superseding indictment which charged him with possessing more than five grams of methamphetamine, also known as crystal meth. Harrington, assisted by others, obtained meth from sources in California then transported it to northern Michigan for distribution. Some of the meth seized during the investigation test as 100% pure.
This case was jointly investigated by special agents with the Drug Enforcement Administration and the Michigan State Police. The prosecution was handled by the United States Attorney’s Office in Bay City, Michigan.
Mason City Man Sentenced to over 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
A man who possessed child pornography was sentenced yesterday to over 10 years in federal prison.
Jeffery Landheer, age 47, from Mason City, Iowa, received the sentence after a May 19, 2017 guilty plea to one count of possession of child pornography. At the plea hearing, Landheer admitted that, between 2009 and 2016, he knowingly possessed child pornography on a computer hard drive.
Landheer was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Landheer was sentenced to 121 months’ imprisonment. Special assessments of $5,100 were imposed, and Landheer must also serve a 15-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Mason City Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-3011.
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Marshall County man pleads guilty to drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Moundsville, West Virginia man has admitted to a drug distribution charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Rhett D. Gump, age 24, pled guilty to one count of “Distribution of Methamphetamine in Proximity to a Protected Location.” Gump admitted to selling methamphetamine near the Golden Towers in Moundsville on January 5, 2017.
Gump faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr., prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James E. Seibert presided.
Marshall County man admits to drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Moundsville, West Virginia man has admitted to a drug distribution charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Ronald Lee Shaw, also known as “Fuzz,” age 46, pled guilty to one count of “Distribution of Cocaine within 1,000 Feet of a Protected Location.” Shaw admitted to selling cocaine near Riverview Towers in Wheeling on April 18, 2017.
Shaw faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James E. Seibert presided.
Marrero Man Sentenced for Bank RobberyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TRAVIS CARTER, age 38, of Marrero, was sentenced yesterday after previously pleading guilty to a one-count Indictment for bank robbery.
U.S. District Judge Susie Morgan sentenced CARTER to 30 months incarceration, followed by two years of supervised release, restitution in the amount of $4,444.95, and a $100 special assessment.
According to the court documents, on July 22, 2016, CARTER, wearing a disguise of a baseball hat, sunglasses, and with a towel covering his face, robbed the Whitney Bank located in Marrero. CARTER escaped with over $4,000 dollars in U.S. currency. Citizens identified CARTER after local news outlets reported the robbery and featured still images of him captured from bank surveillance. Additionally, the vehicle driven by CARTER during the robbery, was identified by an automatic license plate recognition camera after it was captured fleeing the bank.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Brittany Reed was in charge of the prosecution.
Margate, New Jersey, Doctor Pleads Guilty in Healthcare Fraud Conspiracy Targeting New Jersey Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A doctor with a medical practice in Margate, New Jersey, today admitted defrauding New Jersey state health benefits programs and other insurers by signing prescriptions for patients he never saw, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
John Gaffney, 55, of Linwood, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
“Dr. Gaffney sold phony prescriptions for unnecessary medications to patients he never examined as part of a sophisticated scheme to defraud a prescription benefits program available to New Jersey state and municipal employees,” Acting U.S. Attorney Fitzpatrick said. “In an era when many Americans work hard to maintain affordable health insurance for their families, Dr. Gaffney and his conspirators criminally exploited the health care system and left New Jersey tax payers on the hook for approximately $25 million in losses.”
“New Jersey’s families are the ones who pay the cost for healthcare fraud,” said Attorney General Porrino. “In New Jersey, law enforcement partners are working together to fight back against those who use their positions to steal millions of dollars from our healthcare system for personal gain. I want to thank the United States Attorney's Office for the District of New Jersey, Acting U.S. Attorney Fitzpatrick and all of our federal partners for aggressively attacking incidents of insurance fraud and for successfully prosecuting these often complicated schemes.”
“This is another demonstration of the FBI’s commitment to aggressively pursue healthcare fraud, along with our federal, state, and local law enforcement partners and the U.S. Attorney’s Office,” stated Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office. “We will not tolerate unscrupulous healthcare professionals who are entrusted with providing honest services to the citizens of New Jersey.”
“Doctors play a trusted and vital role in the American healthcare system. John Gaffney broke this trust when he wrote and accepted payment for prescriptions that were medically unnecessary. This fraudulent conduct creates risks for patients and undermines the system. The U.S. Department of Labor Office of Inspector General remains committed to combating illegal prescription drug schemes, like compounded medication fraud, particularly when they victimize programs administered by the Department of Labor. We will continue to work with our law enforcement partners to aggressively investigate allegations of this nature,” said Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor, Office of Inspector General.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Gaffney’s conspirators persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the information as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, Gaffney’s conspirators would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They then had Gaffney sign prescriptions for compounded medications for numerous individuals, even though Gaffney never saw the individuals or evaluated whether they had a medical necessity for the compounded medication. Gaffney also signed a blank prescription form, which other conspirators copied and used to submit additional fraudulent prescriptions to the Compounding Pharmacy.
Other conspirators submitted fraudulent prescriptions bearing Gaffney’s signature for over 200 individuals, and the Pharmacy Benefits Administrator paid just under $25 million for those prescriptions. Gaffney received payments of thousands of dollars in cash and other benefits to reward him for his role in the scheme.
As part of his plea agreement, Gaffney must forfeit $25,000 in criminal proceeds and pay restitution of at least $24,956,435.08. He faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Jan. 5, 2018.
Five other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, and Steven Urbanski – pleaded guilty in August 2017 and await sentencing.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gallagher in Newark, agents of the IRS – Criminal Investigation, under the direction of Jonathan D. Larsen in Newark, and agents of the Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Mikulka in New York, for their roles in the investigation leading to the guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel: Michael Engle Esq., Philadelphia
Lewiston Man Sentenced to over 15 Years on Interstate Robbery and Gun ChargesRead the Press Release
Portland, Maine: Acting United States Richard W. Murphy announced that Kourtney Williams, 27, of Lewiston, Maine was sentenced today in U.S. District Court by Judge Jon D. Levy to 184 months in prison and five years of supervised release for interstate robbery conspiracy and using a firearm during a crime of violence. The defendant was convicted following a jury trial on September 12, 2016.
Court records and trial evidence revealed that on August 2, 2014, at about 11:00 p.m., the defendant, armed with a pistol, and associates, one of whom had a crowbar, broke into a residence on the Garfield Road in Minot, Maine intending to steal drugs and money from its occupants. The defendant used the pistol to repeatedly threaten and assault the occupants.
The investigation was conducted by the Maine State Police; the Lewiston and Auburn Police Departments; the U.S. Drug Enforcement Administration; and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Kennewick Man Sentenced to 5 Years in Federal Prison for Attempted Transfer of Obscene Material to a MinorRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Donald Russell Tyke Wheeler, of Kennewick, Washington, was sentenced after previously having plead guilty on February 9, 2017, to attempted transfer of obscene materials to a minor. United States District Judge Stanley A. Bastian sentenced Wheeler to a 5-year term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, in July of 2016, a detective with the Southeast Regional Internet Crimes Against Children Task Force (SER-ICAC) and Homeland Security Investigations (HSI) observed an ad on a well-known website seeking a female to “play”. The detective responded to the ad posing as a thirteen (13) year old minor female. During the course of communications with the minor, Wheeler described in graphic detail the manner in which he wished to have sexual intercourse with the purported child. He also sent multiple pictures of his genitalia to the purported child labeled with the purported child’s name. Wheeler made multiple attempts to meet the purported child to commit the described sexual acts in Kennewick, Washington.
In the fall of 2016, Wheeler was arrested upon arrival at the meet location where he had directed the purported child. In a post-arrest interview, Wheeler admitted that he had communicated with the purported child, and sent the labeled photographs of his genitalia to the purported child. Wheeler further admitted that he had tried to meet with the purported minor on two prior occasions to engage in sexual intercourse.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington continues to prioritize the investigation and prosecution of crimes involving children, like the offense in this case.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Homeland Security Investigations and the Southeast Regional Internet Crimes Against Children Task Force conducted the investigation of this matter. The case was prosecuted by Laurel J. Holland, an Assistant United States Attorney for the Eastern District of Washington.
Kansas to Receive Federal Funds to Fight Opioid EpidemicRead the Press Release
TOPEKA, KAN. – Kansas will receive more than $500,000 in federal grants to help fight the opioid crisis, the U.S. Justice Department announced Friday.
The city of Wichita will receive $398,972 from the Adult Drug Court and Veterans Treatment Courts grant program. The grant is aimed at supporting drug courts that hold offenders accountable and reduce victimization by intervening early in the process to prevent crimes. It also supports programs to assist offenders who are veterans.
The Kansas State Board of Pharmacy will receive $178,680 to support the state’s prescription drug monitoring program. The pharmacy board oversees K-TRACS, a system for monitoring prescriptions for controlled substances.
The grants are part of nearly $59 million the Justice Department announced Friday it will spend to strengthen drug court programs and address the opioid epidemic nationwide.
In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues.
“Today, we are facing the deadliest drug crisis in American history,” said Attorney General Jeff Sessions. “These trends are shocking and the numbers tell us a lot– but they aren’t just numbers. They represent moms and dads, brothers and sisters, neighbors and friends.”
Justice Department Awards Nearly $59,000,000 to Combat Opioid Epidemic, Fund Drug CourtsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Erie County to receive $300,000; Seneca Nation of Indians to receive $399,000
BUFFALO, NY–The Department of Justice today announced $58,800,000 to strengthen drug court programs and address the opioid epidemic nationwide.
In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues. The opioid epidemic, a public health crisis, is also a growing public safety crisis.
“Today, we are facing the deadliest drug crisis in American history,” said Attorney General Jeff Sessions. “These trends are shocking and the numbers tell us a lot– but they aren’t just numbers. They represent moms and dads, brothers and sisters, neighbors and friends. And make no mistake combatting this poison is a top priority for President Trump and his administration, and you can be sure that we are taking action to address it. Today, we are announcing that we will be awarding millions in federal grants to help law enforcement and public health agencies address prescription drug and opioid abuse. This is an urgent problem and we are making it a top priority.”
In Erie County, there were 301 confirmed opioid related deaths in 2016. There have been 112 confirmed deaths so far in 2017 with another 132 suspected deaths.
“Hopefully, this significant funding from the Department of Justice will further assist our federal, state, and local partners in our combined and ongoing effort to turn the tide in our battle against opioids. It is a battle we continue to fight on multiple fronts,” said Acting U.S. Attorney James P. Kennedy, Jr. “Our District will be receiving funding which includes: $300,000 to Erie County to support programs designed to connect overdose survivors to services; and $399,344 is being provided to the Seneca Nation of Indians to support county-based approaches to establish effective diversion and/or alternatives to incarceration programs for individuals with opioid use disorders.”
About $24,000,000 in federal grants will be awarded to 50 cities, counties and public health departments to provide financial and technical assistance to state, local, and tribal governments to create comprehensive diversion and alternatives to incarceration programs for those impacted by the opioid epidemic. These funds, awarded under the Office of Justice Programs’ Bureau of Justice Assistance’s Comprehensive Opioid Abuse Program, also included funds from the Harold Rogers Prescription Drug Monitoring Program. This program helps regulatory, law enforcement, and public health agencies address prescription drug and opioid misuse; reduce crime; and save lives.
An additional $3,100,000 million will be awarded by the National Institute of Justice for research and evaluation on drugs and crime. The research priorities are heroin and other opioids and synthetic drugs.
The department is also awarding more than $22,200,000 to 53 jurisdictions to support the implementation and enhancement of adult drug courts and Veterans Treatment Courts, which serve as “one-stop-shops” to link veterans with services, benefits and program providers, including the Department of Veterans Affairs, Veterans Service Organizations and volunteer veteran mentors.
The department is also awarding more than $9,500,000 under several Office of Juvenile Justice and Delinquency Prevention grant programs, including the Juvenile Drug Treatment Court Grant Program and the Family Drug Court Statewide System Reform Implementation Program. These programs help jurisdictions build effective family drug treatment courts and ensure current juvenile drug treatment courts follow established guidelines.
Jefferson County man admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Harpers Ferry, West Virginia man has admitted to distributing heroin, Acting United States Attorney Betsy Steinfeld Jividen announced.
Blake Ramsey Viands, age 25, pled guilty to one count of “Distribution of a Heroin.” Viands admitted to distributing heroin in November 2016 in Jefferson County, West Virginia.
Viands faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Drug Enforcement Agency and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jamestown Man Sentenced on Child Pornogrpahy ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. James P. Kennedy, Jr. announced today that Christopher Whitford, 46, of Jamestown, NY, who was convicted of distribution of child pornography, was sentenced to 120 months in prison and 10 years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Mary C. Baumgarten, who handled the case, stated that on May 1, 2016, the defendant, using a peer-to-peer file sharing program, shared files with an undercover law enforcement officer. On June 23, 2016, a federal search warrant was executed at the defendant’s residence at 42 West 13th Street, Jamestown, New York, during which several items of electronic media were seized. Forensic analysis revealed images and videos constituting child pornography were stored on those items. The images and videos that the defendant previously shared with the undercover officer were among them. Whitford had approximately 2405 images and 1188 videos constituting child pornography.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on September 21, 2017 and entering pleas of Not Guilty were:
- JOSHUA ABRAM DISKIN, a 47-year-old resident of Yuba City, California, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, DISKIN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Montana HIDTA. PACER Case Reference. 17-60
- RONALD DUANE KNAUB, a 68-year-old resident of Shepherd, appeared on charges of felon in possession of a firearm and ammunition. If convicted of the charge contained in the indictment, KNAUB faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-99
Appearing before U.S. Magistrate Johnston in Great Falls on September 20, 2017 and entering pleas of Not Guilty were:
- BRITTANY MARTELL, a 25-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, MARTELL faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 17-61
Appearing before U.S. Magistrate Johnston in Great Falls on September 19, 2017 and entering pleas of Not Guilty were:
- ROBERT ALAN CONNOLLY, a 67-year-old resident of Ranson, West Virginia, appeared on charges of failure to register/update registration as a sexual offender. If convicted of the charge contained in the indictment, CONNOLLY faces 10 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 17-60
- LANDON DUPREE, a 31-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, DUPREE faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 17-61
- STEPHAN DUANE KOROL-LOCKE, a 44-year-old resident of Great Falls, appeared on charges of attempted coercion and enticement. If convicted of the charge contained in the indictment, KOROL-LOCKE faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations and Great Falls Police Department. PACER Case Reference. 17-62
- JODY DOWD WOOTEN, a 50-year-old resident of Sacramento, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, WOOTEN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations, Russell Country Drug Task Force, and Lewistown Police Department. PACER Case Reference. 17-65
Appearing before U.S. Magistrate Johnston in Great Falls, on September 14, 2017 and entering pleas of Not Guilty were:
- EDWARD DEAN CASSIDY, a 50-year-old resident of Browning, appeared on charges of abusive sexual contact. If convicted of the most serious charge contained in the indictment, CASSIDY faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-59
- LEWIS PATRICK MARCHAND, a 57-year-old resident of Heart Butte, appeared on charges of failure to register. If convicted of the charge contained in the indictment, MARCHAND faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 17-63
- JONATHAN PAUL SCHULZ, a 48-year-old resident of Conrad, appeared on charges of felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, SCHULZ faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-64
Appearing before U.S. Magistrate Cavan in Billings on September 12, 2017 and entering pleas of Not Guilty were:
- MISTY NICOLE MARCUM, a 38-year-old resident of Bakersfield, California, appeared on charges counterfeiting and forging obligations or securities of the United States, and passing or uttering counterfeit obligations or securities of the United States. If convicted of the most serious charge contained in the indictment, MARCUM faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Secret Service. PACER Case Reference. 16-99
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indian Defendant Appears in Federal Court to Face Fraud, Conspiracy and Money Laundering ChargesRead the Press Release
PITTSBURGH - A resident of Mumbai, India, made his initial appearance in U.S. District Court in Pittsburgh this afternoon to face charges of mail fraud, conspiracy to misbrand and smuggle drugs, conspiracy to import Schedule IV controlled substances and money laundering, Acting United States Attorney Soo C. Song announced today.
The 14-count indictment, returned on July 28, 2015, named Ramesh Buchirajam Akkela, aka Ramesh Bhai, 44, of Mumbai, India as the sole defendant. Akkela was arrested in Panama earlier this year. He was extradited to the United States yesterday.
According to the indictment, Akkela, an Indian Internet-based supplier of prescription drugs, supplied those drugs - without prescriptions - to U.S. consumers. He was indicted on 10 counts of mail fraud, one count of conspiracy to misbrand and smuggle drugs, one count of conspiracy to import Schedule IV controlled substances and two counts of money laundering.
Except for the conspiracy counts, each of which is punishable by five years imprisonment, all the other counts have a maximum penalty of 20 years in prison. Each money laundering count carries a maximum $500,000 fine, while $250,000 is the maximum fine for the remaining counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, Homeland Security Investigations, United States Postal Inspection Service, Pennsylvania State Police and the Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Houston Man Sentenced to 13 Years Imprisonment for Conspiracy to Traffick Cocaine from Houston to New OrleansRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CRAIG JAMES, age 39, of Houston, was sentenced yesterday after having previously pled guilty to one count of conspiring to distribute and to possess with intent to distribute five kilograms or more of cocaine hydrochloride and twenty-eight grams or more of cocaine base.
U.S. District Judge Jane Triche Milazzo sentenced JAMES to 156 months of incarceration, to be followed by 10 years of supervised release.
According to court documents, JAMES, along with codefendants JOPPA JACKSON, LAZANDY DANIELS, and LEON JACKSON, JR., conspired to distribute cocaine in the New Orleans area. In 2015, JAMES traveled to New Orleans multiple times per month in order to deliver kilogram quantities of cocaine to his local customers, including JOPPA JACKSON, DANIELS, and LEON JACKSON. JOPPA JACKSON, DANIELS, and LEON JACKSON then sold the cocaine to users and other drug dealers in the New Orleans area.
JOPPA JACKSON pled guilty to conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride. Sentencing for JOPPA JACKSON is scheduled for October 5, 2017.
On June 14, 2017, a jury convicted LAZANDY DANIELS of conspiracy to distribute 5 kilograms or more of cocaine hydrochloride and 27 grams or more of cocaine base (crack) (2counts), possession with intent to distribute 28 grams or more of cocaine base (crack) (2 counts), and knowingly and intentionally distributing cocaine base (crack). Sentencing for DANIELS is scheduled for October 19, 2017.
LEON JACKSON pled guilty to conspiracy to distribute five kilograms or more of a mixture or substance containing cocaine hydrochloride and 28 grams or more of cocaine base (crack). LEON JACKSON was sentenced to 70 months of imprisonment, followed by five years of supervised release, and a $100 special assessment
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration (DEA) and the New Orleans Police Department (NOPD) in investigating this matter. Assistant United States Attorneys Brandon S. Long and Theodore Carter are in charge of the prosecution.
Home Health Care Aide Pleads Guilty to Defrauding Her EmployerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced that Cassie Tillinghast, 32, of Buffalo, NY, pleaded guilty to bank fraud before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that in May 2015, the defendant was hired as an in-home health care aide to assist with the care of Victim 1’s elderly mother in the home of Victim 1 and her husband. Subsequently, Tillinghast fraudulently applied for a Discover credit card in the name of Victim 1, and between November 25, 2015, and December 21, 2015, the defendant fraudulently used the Discover credit card in Victim 1’s name at retail establishments in the Western District of New York to obtain goods and merchandise. Discover Financial Services suffered a total loss of $6,462.89.
The plea is the result of an investigation by the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, Boston Field Division.
Sentencing is scheduled for February 8, 2018, at 2:00 p.m. before Judge Geraci.
Hanford DOE Subcontractor Agrees to Pay $2.0 Million to Settle Allegations of Small Business FraudRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Federal Engineers & Constructors (FE&C), a subcontractor at the Department of Energy’s (DOE) Hanford Site, has agreed to pay $2 Million ($2,000,000) to resolve allegations that it violated the False Claims Act (FCA) in connection with a number small business subcontracts with DOE at its Hanford nuclear site.
Between 2005 and 2016, Washington Closure Hanford, LLC (WCH), a jointly owned by AECOM, Bechtel National Inc., and CH2M Hill Companies Ltd., was a DOE prime contractor that was awarded a multi-billion dollar River Corridor Closure Contract (RCC) at DOE’s Hanford Site. WCH was responsible for environmental remediation on Hanford's River Corridor. WCH workers were responsible for cleaning up waste sites at Hanford, decontaminating and decommissioning former plutonium production nuclear reactors and surplus facilities, and disposing of contaminated waste. The RCC required WCH to award a certain percentage of subcontracts to small and disadvantaged businesses, including woman-owned small businesses. Pursuant to its contract, DOE fully reimbursed WCH for hundreds of millions of dollars in subcontracts WCH awarded to qualified small, disadvantaged businesses, including women-owned small businesses.
The case originally arose out of a whistleblower complaint filed in U.S. District Court by Savage Logistics LLC, a Hanford-area small business, and Salina Savage, its owner. In December 2013, the United States filed a Complaint intervening in the lawsuit, alleging that WCH, FE&C, Sage Tec LLC (purported to be a small, disadvantaged business) and Laura Shikashio, the owner of Sage Tec, violated the False Claims Act (FCA) with respect to two multi-million dollar subcontracts arranged between WCH and Sage Tec. The Complaint alleges that WCH, FE&C, Sage Tec and Ms. Sikashio knowingly misrepresented Sage Tec to be a qualified disadvantaged small business in order to be eligible for two multi-million dollar subcontracts that were designated for truly qualified small disadvantaged businesses. The Complaint further alleges that Sage Tec was not a legitimate small, disadvantaged business; rather it was a pass-through front company for FE&C, which performed substantially all of the work on WHC’s improperly awarded subcontracts.
FE&C’s settlement with the DOJ resolves its liability for the misconduct alleged and set forth in the United States’ Complaint. The United States’ case against WCH, Sage Tec, and Ms. Shikashio continues to be prosecuted and the remaining defendants still deny liability.
Joseph H. Harrington said, “Small business fraud not only harms the taxpayers and the vital cleanup mission at Hanford, but legitimate small, disadvantaged businesses that do not have the opportunity to fairly compete for and perform subcontracts. I want to commend the Department of Energy Office of Inspector General (DOE-OIG) and the Small Business Administration Office of Inspector General (SBA-OIG) for the outstanding efforts investigating and uncovering the scheme perpetrated here. The United States Attorney’s Office for the Eastern District of Washington, together with the Office’s law enforcement partners, will continue to pursue vigorously large and small business fraud at Hanford.”
“The false statements in this case were intended to deceive the government into believing that a woman-owned small, disadvantaged business was performing valuable work as a government subcontractor,” said Small Business Administration Acting Inspector General Hannibal “Mike” Ware. “OIG will aggressively pursue parties that, through fraud, gain access to SBA’s small business contracting programs. I want to thank the U.S. Attorney’s Office for their dedication to enforcing compliance in SBA’s contracting programs.”
Department of Energy Acting Inspector General April G. Stephenson said, “The Department of Energy Office of Inspector General is committed to ensuring the integrity of Departmental contracts and financial expenditures. We will continue to investigate allegations of fraudulent diversion of tax dollars throughout DOE programs. This settlement is a result of our staff’s dedicated work to ensure public funds are properly used for the mission-related purposes for which they are intended. We appreciate the support of Department of Justice’s and Department of Energy’s attorneys in these matters.”
The Savage whistleblowers will receive approximately $470,000 of the $2.0 Million settlement DOJ reached with FE&C due to their private efforts in exposing – reporting the described scheme to the DOE and DOJ.
DOE-OIG and SBA-OIG conducted the investigation on the Relators’ whistleblower complaint. The DOJ’s lawsuit is being prosecuted by Tyler H.L. Tornabene, Vanessa R.Waldref, and Daniel Fruchter, Assistant United States Attorneys for the Eastern District of Washington.
This case is captioned United States of America ex rel. Salina Savage, Savage Logistics LLC, vs. Washington Closure Hanford LLC, Federal Engineers and Constructors, Inc., Sage Tec LLC, and Laura Shikashio, CV-10-5051-SMJ.
Guatemalan National Charged with Illegal Reentry after DeportationRead the Press Release
BOSTON - A Guatemalan national was charged yesterday in federal court in Boston with a federal immigration crime.
Juan Chilel-Sandoval, a/k/a Jose Bartolome Chilel Sandoval, 28, was indicted on one count of unlawful reentry of a deported alien. Chilel-Sandoval was previously deported on Oct. 22, 2010. On Aug. 31, 2017, Chilel-Sandoval was encountered by law enforcement in Lynn and determined to be illegally present in the United States.
Chilel-Sandoval faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting this case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Guatemalan National Charged with Illegal Reentry after DeportationRead the Press Release
BOSTON - A Guatemalan national was charged yesterday in federal court in Boston with an immigration crime.
Gilberto Chavez-Mendez, 24, was indicted on one count of unlawful reentry of a deported alien. Chavez-Mendez was previously deported on May 23, 2012. On Aug. 28, 2017, Chavez-Mendez was encountered by law enforcement in Lynn and determined to be illegally present in the United States.
Chavez-Mendez faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting this case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Executive Director of Newark Watershed Conservation and Development Corp. Sentenced to 102 Months in Prison for Role in Nearly $1 Million Kickback and Fraud SchemeRead the Press Release
NEWARK, N.J. – The former executive director of the Newark Watershed Conservation and Development Corp. (NWCDC) was sentenced today to 102 months in prison for accepting nearly $1 million in kickback payments in exchange for her assistance in awarding work to various vendors and contractors of the agency, Acting U.S. Attorney William E. Fitzpatrick announced.
Linda Watkins Brashear, 57, of West Orange, New Jersey, previously pleaded guilty before U.S. District Judge José Linares to Counts 1 and 5 of a five-count information charging her with a wire fraud scheme to defraud the NWCDC by accepting bribes and kickback payments from contractors and an employee of the corporation, which were funded by payments from the NWCDC based on fraudulently inflated invoices or issued for work that was not performed by the contractors (Count 1), and subscribing a false tax return for the year 2012 (Count 5). Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Brashear served as the executive director for the NWCDC from 2007 to March 2013. During this time, she and others devised a scheme to defraud the NWCDC of her honest services in the affairs of the NWCDC and of the NWCDC’s money and property. The object of the scheme was for Brashear and others to accept a substantial stream of concealed and undisclosed kickbacks from NWCDC contractors and an employee of the NWCDC for her direct and indirect benefit in exchange for action and assistance in the affairs of the NWCDC, and for her violating her official duties and responsibilities.
Between 2008 and March 2013, Brashear accepted approximately $999,000, in kickbacks financed through the receipt of payments by contractors and an employee of the NWCDC that were fraudulently obtained from the NWCDC with Brashear’s assistance, through materially false pretenses, representations and promises. In particular, Brashear accepted kickbacks as summarized below:
Time Period
Approximate Amount of Kickbacks
Paid By
September 2012 - March 2013
$39,000
NWCDC “Employee 1”
January 2009 – December 2012
$260,000
James Porter (identified in Count 1 as “partner of the special projects manager”)
January 2008 – June 2012
$70,000
Printing contractor
January 2011 – January 2013
$33,000
Marketing contractor
September 2012 – April 2013
$90,000
Cleaning contractor
April 2009 – February 2013
$118,000
Homeland Security contractor
January 2009 – May 2012
$40,000
Interior designer
January 2008 – March 2013
$177,000
Internet research consultant
October 2011 – March 2013
$29,000
Political consultant
April 2011 – September 2012
$32,000
Media consultant
January 2008 – March 2013
$27,000
Giacomo “Jack” DeRosa
May 2011 – March 2013
$84,000
Security consultant
Brashear routinely accepted payments from some of these contractors through Donald Bernard Sr. Brashear and Bernard also used their email accounts to facilitate this kickback and fraud scheme. Bernard was previously charged in December 2014 in a 20-count indictment with various federal offenses involving a scheme to defraud the NWCDC of his honest services and the NWCDC’s money and property by accepting and agreeing to accept bribes and kickbacks from certain NWCDC contractors, which were financed at least in part through the contractors’ fraudulent padding of invoices to the NWCDC.
Brashear admitted taking payments from James Porter, a contractor who pleaded guilty in January 2015 to conspiracy to defraud the NWCDC of honest services, money and property through the use of interstate wire transmissions, as well as tax evasion for his role in the kickback scheme. The roofing contractor referred to in Count 1 of the information, Giacomo “Jack” DeRosa, was charged in a six-count fraud and money laundering indictment in December 2014 for his role in passing kickbacks to Bernard, which were shared, in part, with Brashear.
Brashear also admitted making and subscribing a U.S. Individual Income Tax Return, Form 1040, for tax year 2012, signed and filed with the IRS under penalty of perjury, which she did not believe to be true and correct, including approximately $316,000 in unreported income that she received through the kickback payments.
In addition to the prison term, Judge Linares sentenced Brashear to three years of supervised release and ordered her to pay $1.3 million in restitution.
On July 13, 2017, Judge Linares sentenced Bernard to eight years in prison for his role in the kickback scheme and for filing false tax returns. DeRosa was sentenced on Oct. 25, 2016, to six months in prison. On July 20, 2017, Porter was sentenced to two years in prison for his role in the scheme.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; IRS – Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi, as well as criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s sentencing. Acting U.S. Attorney Fitzpatrick also thanked the N.J. Office of the State Comptroller, under the direction of State Comptroller Philip James Degnan, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Jacques Pierre and Leslie Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Michael Baldassare Esq., Newark
Former Clinical Psychologist Sentenced to 25 Years in Prison for Role in $550 Million Social Security Fraud SchemeRead the Press Release
A former Kentucky clinical psychologist was sentenced today to 25 years in prison for his role in a scheme to fraudulently obtain more than $550 million in federal disability payments from the Social Security Administration (SSA) for thousands of claimants.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division, Special Agent in Charge Amy S. Hess of the FBI’s Louisville Field Division, Special Agent in Charge Tracey D. Montaño of Internal Revenue Service Criminal Investigation (IRS-CI) Nashville Field Office and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.
Alfred Bradley Adkins, 46, of Pikeville, Kentucky, was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky, who also ordered Adkins to pay restitution of over $93 million to the SSA and HHS. Adkins was found guilty following a six-day trial in June 2017 of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements.
According to trial evidence, beginning in 2004, David Black Daugherty, an SSA administrative law judge assigned to the SSA Huntington, West Virginia, hearing office, sought out pending disability cases in which Kentucky attorney Eric Christopher Conn represented claimants and often reassigned those cases to himself. Daugherty then contacted Conn and identified the cases he intended to decide the following month and further solicited Conn to provide either physical or mental medical documentation supporting disability determinations, whether or not the claimants were actually disabled. When mental medical documentation was requested, Conn solicited Adkins to sign medical evaluation forms that Conn had previously prepared. Without first reviewing these forms, Adkins signed them; Conn subsequently forwarded the forms to the SSA, primarily to Daugherty, in support of disability determinations. Conn, in turn, paid Daugherty more than $609,000 for granting benefits in his cases, and almost $200,000 to Adkins for signing the fraudulent forms. For his part, Conn received more than $7 million in related attorney’s fees.
As a result of the scheme, Adkins, Conn, Daugherty and others obligated the SSA to pay more than $550 million in lifetime benefits to claimants based upon cases Daugherty approved for which he received payment from Conn.
Adkins was indicted last year, along with Conn and Daugherty. The defendants were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme. Daugherty pleaded guilty in May 2017 to a two-count information charging him with receiving illegal gratuities, and was sentenced on August 25, to 4 years in prison.
Conn pleaded guilty on March 24, to a two-count information charging him with theft of government money and paying illegal gratuities, and was sentenced on July 14 to 12 years in prison. Conn subsequently absconded from electronic monitoring on June 2, and is considered a fugitive. Conn remains charged under the original indictment.
The FBI is offering a reward of up to $20,000 for information leading to the arrest of Eric Christopher Conn. Anyone with information relating to Conn’s whereabouts should contact their local FBI office or the nearest American Embassy or Consulate.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The SSA-OIG, FBI, IRS-CI and HHS-OIG investigated the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorney Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with previous co-counsel including Assistant U.S. Attorney Trey Alford of the Western District of Missouri and Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Former Clerk in Orange County Superior Court Sentenced to over 11 Years in Federal Prison for Racketeering Offense Stemming from Bribery Scheme to ‘Fix’ Criminal Cases and Traffic ChargesRead the Press Release
SANTA ANA, California – A former clerk of the Orange County Superior Court was sentenced today to 135 months in federal prison for orchestrating a scheme in which he was paid approximately $420,000 dollars in bribes to “fix” criminal cases and traffic offenses on terms favorable to hundreds of defendants without the knowledge of prosecutors or judges.
Jose Lopez Jr., 36, of Anaheim, was sentenced this morning after pleading guilty in March to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO).
Lopez was sentenced by United States District Judge Josephine L. Staton, who said Lopez created, led and profited from the scheme.
“This [criminal conduct] was not an aberration from his character – this was his character,” the judge said.
Lopez admitted that he was at the center of a scheme in which bribes as high as $8,000 were paid to co-conspirators to fraudulently resolve cases for hundreds of defendants. The co-conspirators were middlemen who recruited individuals with pending cases to pay money that was given to Lopez to resolve their cases without the authorization of the court.
“People who were facing their second drunk driving offense were able to bribe their way out of mandatory jail sentences,” said Acting United States Attorney Sandra R. Brown. “Mr. Lopez led a long-running scheme that brought him well over $400,000 and caused untold damage to the operations and reputation of the criminal justice system in Orange County.”
According to court documents, Lopez improperly resolved approximately 1,034 cases, including 69 misdemeanor driving under the influence cases, 160 other misdemeanor cases and 805 traffic-related infraction cases.
Over the course of more than five years, Lopez “resolved” cases by entering information into the court’s computers to make it appear that a defendant had pleaded guilty, paid required fees or had performed community service. In some cases, Lopez fraudulently created records that made it appear drunk driving charges had been dismissed or defendants had served mandatory jail time.
In addition to taking the bribes and falsifying court records, Lopez forged the signature of a prosecutor with the Orange County District Attorney’s Office.
The conspiracy ended in the spring of 2015 when the Orange County Superior Court learned about the misconduct and took steps to reopen the cases that Lopez tampered with.
“Because of [Lopez]’s corrupt actions, the Orange County Superior Court audited each and every case that [Lopez] handled,” prosecutors wrote in a sentencing memorandum filed with the court. “The state court recalled the cases where fraud was found to restore the integrity of its records.” According to a victim impact statement submitted by the Orange County Superior Court, Lopez’s corruption scheme cost the Orange County Superior Court about $170,000 to clean up.
Lopez used the money he received as part of the scheme to pay for, among other things, international vacations, trips to Las Vegas and the opening of a restaurant in Garden Grove.
“Defendant Lopez was entrusted with protecting the interests of justice but instead made a lucrative income operating an underground business for clients seeking a pass on criminal activity,” said Danny Kennedy, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The successful investigation and prosecution of Mr. Lopez and his many co-conspirators is a result of a collaborative effort by multiple agencies and should serve as a warning to public officials who use their access to benefit personally.”
“Mr. Lopez used his public position of trust to enrich himself and undermined public safety,” stated IRS Criminal Investigation’s Acting Special Agent in Charge Aimee Schabilion. “IRS Criminal Investigation will continue to use our financial investigative expertise to combat public corruption and hold officers of the court accountable for their actions.”
Lopez is one of a dozen defendants who have been convicted of participating in the racketeering conspiracy. The other 10 defendants who have pleaded guilty before Judge Staton are:
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Ricardo Quinones, 33, of Santa Ana, who was sentenced to 15 months in federal prison;
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Juan C. Rosas Santillana, 33, of Chino Hills, who is scheduled to be sentenced on October 13;
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Ramon Salvador Vasquez, 28, of Santa Ana, who was sentenced to two years in prison;
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Manuel Galindo Jr., 27, of Santa Ana, who was sentenced to one year and one day in prison;
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Gibram Rene Lopez, also known as “Ivan,” 27, of Anaheim, who was also sentenced today to 15 months in prison;
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Agustin Sanchez Jr., 33, of Santa Ana, who was sentenced to one year and one day in prison;
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Luis Alberto Flores Guillen, also known as “Bills,” 27, of Santa Ana, who was sentenced last Friday to 10 months (five months in jail and five months of home confinement);
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Oscar Centeno, also known as “Mosquito,” 27, of Santa Ana, who is scheduled to be sentenced on November 17;
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Jeff Reynes Fernandez, also known as “Lean,” 25, of Fullerton, who was sentenced last Friday to one year and one day in prison ; and
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Jesus Saldana, 29, of Garden Grove, who was sentenced to 10 months (five months in jail and five months of home confinement).
The twelfth defendant, Javed Asefi, also known as “Joey,” 44, of Ladera Ranch, was found guilty by a federal jury earlier this month and is scheduled to be sentenced on December 8.
Prior to the 12-defendant indictment being returned by a federal grand jury last fall, three other recruiters pleaded guilty to federal bribery charges, including Rebeca Sarai Rosell, who worked at a Santa Ana bail bonds company and funneled a bribe to Lopez so a second-time drunk driving offender could avoid serving his mandatory 60-day jail sentence.
This case was investigated by special agents with the Federal Bureau of Investigation and IRS Criminal Investigation.
This case was prosecuted by Assistant United States Attorney Vib Mittal of the Santa Ana Branch Office.
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Follow the U.S. Attorney's Office on TwitterRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that the U.S. Attorney’s Office for the District of Maine launched its official Twitter account with the aim of increasing the accessibility of news and information.
Members of the public and media can now follow https://twitter.com/USAO_ME on Twitter, a social media, microblogging service which limits text messages to 140 characters.
Florida Return Preparers Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
Two Broward County, Florida tax return preparers were sentenced to prison today for conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
Luczor Fertilien, 39, was sentenced to 30 months in prison and David Joseph, 37, was sentenced to 24 months in prison.
According to documents and information provided to the court, Fertilien, Joseph and Frantz Petit-Dos owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc. From approximately 2010 through 2016, Fertilien, Joseph and Petit-Dos filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals, whose identities were stolen, as dependents. Fertilien, Joseph and Petit-Dos did not report the illegal proceeds they received from this scheme on their personal tax returns. The court found that Fertilien and Joseph caused a tax loss of more than $1 million.
In addition to the term of prison imposed, U.S. District Judge William P. Dimitrouleas ordered Fertilien and Joseph to each serve three years of supervised release and ordered Fertilien to pay $$1,038,129 in restitution to the IRS and ordered Joseph to pay $1,289,351 in restitution to the IRS. Fertilien, Joseph and Petit-Dos previously pleaded guilty to conspiring to defraud the United States and filing fraudulent tax returns. Petit-Dos is scheduled to be sentenced on Oct. 6.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Florida Return Preparers Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
Two Broward County, Florida tax return preparers were sentenced to prison today for conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Luczor Fertilien, 39, was sentenced to 30 months in prison and David Joseph, 37, was sentenced to 24 months in prison.
According to documents and information provided to the court, Fertilien, Joseph and Frantz Petit-Dos owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc. From approximately 2010 through 2016, Fertilien, Joseph and Petit-Dos filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals, whose identities were stolen, as dependents. Fertilien, Joseph and Petit-Dos did not report the illegal proceeds they received from this scheme on their personal tax returns. The court found that Fertilien and Joseph caused a tax loss of more than $1 million.
In addition to the term of prison imposed, U.S. District Judge William P. Dimitrouleas ordered Fertilien and Joseph to each serve three years of supervised release and ordered Fertilien to pay $$1,038,129 in restitution to the IRS and ordered Joseph to pay $1,289,351 in restitution to the IRS. Fertilien, Joseph and Petit-Dos previously pleaded guilty to conspiring to defraud the United States and filing fraudulent tax returns. Petit-Dos is scheduled to be sentenced on Oct. 6.
Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Florida Resident Sentenced to Prison for Preparing Fraudulent Tax ReturnsRead the Press Release
A Florida resident was sentenced today in federal court in White Plains, New York to 18 months in prison, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joon H. Kim for the Southern District of New York.
According to documents filed with the court, from February 2010 through March 2011, Damyon Shuler, 47, approached relatives and others and told them that he could claim slave reparations on their behalf by filing tax returns with the Internal Revenue Service (IRS), for which he charged a $4,000 to $5,000 fee. Shuler then filed 30 returns with the IRS on behalf of other taxpayers, claiming bogus refunds of between $48,184 and $61,300 on each return. To generate the fraudulent refunds, Shuler reported fake capital gains income and taxes paid on that income in the exact same amount. He also attached to each return a form falsely reporting that a Treasury Department office or program identified as “Overpayment of Black Invest Taxes” had paid the taxes to the IRS. To conceal that he prepared these returns, Shuler did not list himself as the preparer. Shuler also filed a fraudulent 2009 income tax return for himself claiming a refund of $46,685 based on the same scheme. In total, Shuler’s fraudulent refund scheme led to losses of more than $1.2 million.
In addition to the term of prison imposed, U.S. District Court Judge Nelson S. Roman ordered Shuler to serve one year of supervised release and to pay restitution to the IRS in the amount of $1.18 million. Shuler pleaded guilty in April to filing his own fraudulent return and filing a fraudulent return on behalf of another taxpayer.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Kim thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Olga Zverovich and Assistant Chief Andrew Kameros of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Florida Resident Sentenced to Prison for Preparing Fraudulent Tax ReturnsRead the Press Release
Joon H. Kim, the Acting United States for the Southern District of New York, and Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, announced that DAMYON SHULER was sentenced today in White Plains federal court to 18 months in prison for filing false tax returns. SHULER pled guilty in April before U.S. District Court Judge Nelson S. Román, who also imposed today’s sentence.
According to documents filed with the court, from February 2010 through March 2011, SHULER, 47, of Orange City, Florida, approached relatives and others and told them that he could claim slave reparations on their behalf by filing tax returns with the Internal Revenue Service (IRS), for which he charged a $4,000 to $5,000 fee. SHULER then filed 30 returns with the IRS on behalf of other taxpayers, claiming bogus refunds of between $48,184 and $61,300 on each return.
To generate the fraudulent refunds, SHULER reported fake capital gains income and taxes paid on that income in the exact same amount. He also attached to each return a form falsely reporting that a Treasury Department office or program identified as “Overpayment of Black Invest Taxes” had paid the taxes to the IRS. To conceal that he prepared these returns, SHULER did not list himself as the preparer. SHULER also filed a fraudulent 2009 income tax return for himself claiming a refund of $46,685 based on the same scheme. In total, SHULER’s fraudulent refund scheme led to losses of more than $1.2 million.
In addition to the term of prison imposed, U.S. District Court Judge Nelson S. Román ordered SHULER to serve one year of supervised release and to pay restitution to the IRS in the amount of $1,180,150.
Mr. Kim thanked IRS Criminal Investigation for its work on the investigation.
Assistant U.S. Attorney Olga Zverovich of the Office’s White Plains Division and Assistant Chief Andrew Kameros of the Tax Division are in charge of the prosecution.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Five Alleged Members and Associates of Bloods Gang Indicted for Federal Racketeering and Other Related OffensesRead the Press Release
WASHINGTON - Five alleged members and associates of the Black Mob Gangstas/Donald Gee Family (BMG/DGF), a set of the Bloods streeg gang, have been indicted in a superseding indictment returned by a federal grand jury in Raleigh, North Carolina, for various gang-related crimes, including conspiracy to participate in racketeering, murder, witness tampering and related offenses. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department's Criminal Division, U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina, Special Agent in Charge John A. Strong of the FBI North Carolina Field Office and Chief Cassandra Deck-Brown of the Raleigh Police Department made the announcement.
Demetrice Regus Devine aka Respect, 34, of Raleigh; Dontaous Demond Devine aka Scooch and Boochie, 28, of Raleigh; Demetrius Deshaun Toney aka Meat, 24, of Raleigh; Brandon Jowan Mangum aka B-Easy, 28, of Knightdale, North Carolina; and Shaiona Marie Smith aka Slyfox, 22, of Raleigh, were charged in a 12-count superseding indictment returned on September 21, in U.S. District Court for the Eastern District of North Carolina. Four of the defendants charged in the indictment are in custody.
According to the indictment, the BMG/DGF is a set of the Bloods, a violent street gang with members operating in Raleigh, including the Haywood Street area, since the early 2000s. The indictment alleges that the BMG/DGF Bloods have a detailed hierarchical structure. Senior leadership, including Demetrice Regus Devine and Dontaous Demond Devine, regularly conducted formal meetings, collected dues from the rank and file members, and assaulted members who failed to pay dues or follow orders. Gang members earned money for their dues through various criminal activities, including robberies, fraud schemes and drug distribution. BMG/DGF members also committed various acts of violence in furtherance of the gang’s activities, including murder, attempted murder and assaults.
The indictment charges Demetrice Regus Devine, Dontaous Demond Devine, Toney and Mangum with conspiracy to participate in the racketeering activities of BMG/DGF Bloods and conspiracy to distribute narcotics. Demetrice Regus Devine and Dontaous Demond Devine are also each charged with one count of murder in aid of racketeering and related offenses, among other crimes.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
FBI and the Raleigh Police Department investigated the case. Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina and Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
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Five Alleged Members and Associates of Bloods Gang Indicted for Federal Racketeering and Other Related OffensesRead the Press Release
Five alleged members and associates of the Black Mob Gangstas/Donald Gee Family (BMG/DGF), a set of the Bloods street gang, have been indicted in a superseding indictment returned by a federal grand jury in Raleigh, North Carolina, for various gang-related crimes, including conspiracy to participate in racketeering, murder, witness tampering and related offenses. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina, Special Agent in Charge John A. Strong of the FBI North Carolina Field Office and Chief Cassandra Deck-Brown of the Raleigh Police Department made the announcement.
Demetrice Regus Devine aka Respect, 34, of Raleigh; Dontaous Demond Devine aka Scooch and Boochie, 28, of Raleigh; Demetrius Deshaun Toney aka Meat, 24, of Raleigh; Brandon Jowan Mangum aka B-Easy, 28, of Knightdale, North Carolina; and Shaiona Marie Smith aka Slyfox, 22, of Raleigh, were charged in a 12-count superseding indictment returned on September 21, in U.S. District Court for the Eastern District of North Carolina. Four of the defendants charged in the indictment are in custody.
According to the indictment, the BMG/DGF is a set of the Bloods, a violent street gang with members operating in Raleigh, including the Haywood Street area, since the early 2000s. The indictment alleges that the BMG/DGF Bloods have a detailed hierarchical structure. Senior leadership, including Demetrice Regus Devine and Dontaous Demond Devine, regularly conducted formal meetings, collected dues from the rank and file members, and assaulted members who failed to pay dues or follow orders. Gang members earned money for their dues through various criminal activities, including robberies, fraud schemes and drug distribution. BMG/DGF members also committed various acts of violence in furtherance of the gang’s activities, including murder, attempted murder and assaults.
The indictment charges Demetrice Regus Devine, Dontaous Demond Devine, Toney and Mangum with conspiracy to participate in the racketeering activities of BMG/DGF Bloods and conspiracy to distribute narcotics. Demetrice Regus Devine and Dontaous Demond Devine are also each charged with one count of murder in aid of racketeering and related offenses, among other crimes.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
FBI and the Raleigh Police Department investigated the case. Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina and Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Federal Jury Convicts Former Substitute Teacher and Private Tutor of Distribution, Receipt and Possession of Child PornographyRead the Press Release
Assistant U. S. Attorneys Alessandra P. Serano (619) 546-8104 or Connie V. Wu (619) 546-8592
NEWS RELEASE SUMMARY – September 21, 2017
SAN DIEGO – A federal jury yesterday convicted Marlin Lee Gougher, a former substitute teacher in the Temecula School District and private tutor, of three counts of distribution, receipt and possession of child pornography.
Gougher possessed two laptop computers with over 300 videos of child pornography, some of which depicted children as young as four years of age. The FBI executed the search warrant of his Oceanside apartment in January 2013.
Gougher, who elected to appear in court wearing a prison issued orange jumpsuit, testified on his own behalf. However, all of the testimony was stricken by United States District Court Judge William Q. Hayes as being non-responsive to any question posed.
“The jury has recognized the defendant for who he is – every parent’s nightmare,” said Acting U.S. Attorney Alana W. Robinson. “This trusted teacher and tutor with direct access to children was exploiting young victims in the worst way. I consider protecting the well-being of children to be our highest calling as prosecutors.”
“Each image Mr. Gougher possessed represented the victimization of a child. This case is particularly disturbing given the defendant’s former position as a teacher and tutor.” said FBI Special Agent in Charge Eric S. Birnbaum. “We hope this jury conviction sends a clear message to anyone involved in the online sexual exploitation of a child: the FBI will not tolerate the victimization and destruction of our children’s future and will remain vigilant and committed to removing sexual predators from our children’s lives.”
DEFENDANT Case Number 14cr0635-WQH
Marlin Lee Gougher Age: 59 Oceanside, CA
SUMMARY OF CHARGES
Distribution and Receipt of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2252(a)(2)
Maximum penalty: 20 years’ imprisonment with a mandatory minimum sentence of 5 years. Lifetime of supervised release
Possession of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2252(a)(4)
Maximum penalty: 20 years’ imprisonment. Lifetime of supervised release
AGENCY
Federal Bureau of Investigation
FCI-Berlin Inmate Sentenced to Five Months in Prison for Attempting to Obtain Controlled DrugRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that Dieuny Pasius, 26, an inmate at the Federal Correctional Institution, Berlin, New Hampshire, was sentenced to five months in prison for attempting to obtain a controlled substance.
Statements made during the court proceedings established that Pasius wrote a letter to an individual that contained a coded message concerning a scheme to sneak “Flakka” into the prison. Flakka is a slang term for Alpha-PVP, an illegal synthetic cathinone drug. Pasius’ letter instructed the intended recipient to obtain a quantity of Flakka, dilute the drug in a liquid, spread the liquid on sheets of paper, and let them dry. The recipient was then supposed to write a letter to Pasius using the treated sheets of paper. Pasius indicated that he could sell the drug soaked papers for $600 each in the prison. A staff member at FCI-Berlin intercepted the letter before it could be sent out and decoded it.
Pasius previously pleaded guilty on June 6, 2017. His sentence for this offense will be added on to the sentence that he is already serving.
The case was investigated by the staff of the Bureau of Prisons. It was prosecuted by Assistant U.S. Attorney Donald Feith.
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Endicott Man Convicted for Sexual Exploitation of Two ChildrenRead the Press Release
BINGHAMTON, NEW YORK – Michael Gumaer, 50, of Endicott, New York, was convicted yesterday of all eight felony counts of an indictment charging him with the sexual exploitation of two children. The verdict came at the conclusion of a four-day jury trial in Binghamton, New York, announced Acting United States Attorney Grant C. Jaquith and Vadim Thomas, Special Agent in Charge of the FBI Albany Field office.
The evidence at trial established that Gumaer sexually exploited two minor children at his home in Endicott, New York. Upon discovery of his offenses, the defendant fled for two weeks until his arrest by the Endicott Police Department on September 18, 2016. Upon being apprehended, he was subsequently interviewed and confessed to FBI Agents who had seized his electronic media that contained images documenting his sexual exploitation of the two victims.
Sentencing is scheduled for January 26, 2018 in Binghamton, New York. On Counts 1-4 charging sexual exploitation of a child, the defendant faces a minimum 15 years and a maximum sentence of up to 30 years in prison. On Counts 5 and 6, charging receipt and transportation of child pornography, the defendant faces a minimum sentence of 5 years and a maximum sentence of 20 years in prison. On counts 7 and 8, charging possession of child pornography that involved an image of a prepubescent minor, the defendant faces a maximum sentence of up to 20 years in prison. Gumaer could be sentenced to a term of supervised release of up to life for these convictions and a fine of up to $250,000 on each count. The Court has discretion to sentence the defendant either consecutively or concurrently as to each count of conviction. Michael Gumaer will also be required to register as sex offender.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and the Endicott Police Department, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Eastern Panhandle woman admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Kearneysville, West Virginia woman has admitted to distributing cocaine, Acting United States Attorney Betsy Steinfeld Jividen announced.
Jennifer Gibbs, age 31, pled guilty to one count of “Distribution of a Controlled Substance.” Gibbs admitted to selling cocaine in November 2016 in Jefferson County, West Virginia.
Gibbs faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Drug Maker Aegerion Agrees to Plead Guilty; Will Pay More Than $35 Million to Resolve Criminal Charges and Civil False Claims AllegationsRead the Press Release
Aegerion Pharmaceuticals Inc., a Cambridge, Massachusetts-based subsidiary of Novelion Therapeutics Inc., has agreed to plead guilty to charges relating to its prescription drug, Juxtapid, the Justice Department announced today.
As charged in a criminal information filed today, Aegerion introduced Juxtapid into interstate commerce that was misbranded because, among other things, Aegerion failed to comply with a Risk Evaluation and Mitigation Strategy (REMS). The resolution also includes a deferred prosecution agreement relating to criminal liability under the Health Insurance Portability and Accountability Act of 1996 (HIPAA). In addition, Aegerion has agreed to settle allegations that it caused false claims to be submitted to federal health care programs for Juxtapid. Aegerion has agreed to pay more than $35 million to resolve criminal and civil liability arising from these matters. Aegerion has also agreed to enter into a civil consent decree of permanent injunction aimed at preventing future violations of the Federal Food, Drug, and Cosmetic Act (FDCA).
“Today’s settlement shows that the government will continue to hold accountable drug companies that violate laws designed to protect the health and safety of patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Aegerion has agreed to plead guilty to breaking the law. The Justice Department will continue to ensure that taxpayers do not foot the bill when such conduct occurs.”
In a criminal information filed on Sept. 22 in the District of Massachusetts, the United States charged that, from December 2012 to December 2015, Aegerion introduced into interstate commerce Juxtapid, a drug that was misbranded under the FDCA. During this time period, Juxtapid was approved by the U.S. Food and Drug Administration (FDA) to treat patients with homozygous familial hypercholesterolemia (HoFH), a rare disorder, inherited from both parents, that prevents the removal of LDL-C, often called the “bad” cholesterol, from the blood, causing abnormally high levels of circulating LDL-C. The Juxtapid label carried a black box warning that Juxtapid may cause liver toxicity, a serious side effect of using the drug, and the label also warned that Juxtapid may cause gastrointestinal adverse reactions. FDA required a REMS, which is a risk management plan deemed necessary to ensure that a drug’s benefits outweigh its risks, as part of Juxtapid’s approval. The specific purpose of the Juxtapid REMS was to educate prescribers about the risks of liver toxicity and to restrict access to Juxtapid only to those patients with a clinical or laboratory diagnosis consistent with HoFH.
The information alleges that during the relevant time period, Aegerion failed to give health care providers complete and accurate information about HoFH and how to properly diagnose it, and that Aegerion also filed a misleading REMS assessment report. According to the information, Aegerion therefore failed to comply with the required elements under the REMS to assure safe use of Juxtapid, in violation of the FDCA. The information further alleges that Aegerion management and sales personnel distributed Juxtapid not only for the treatment of HoFH, but also as a treatment for high cholesterol generally, without adequate directions for such use. Under the terms of a plea agreement, Aegerion has agreed to plead guilty to these charges and pay a criminal fine and forfeiture of $7.2 million.
In a deferred prosecution agreement to resolve a felony charge that Aegerion conspired to violate HIPAA, 42 U.S.C. §§ 1320d-6(a) and 1320-6(b)(3), Aegerion admitted that it conspired to obtain patients’ personally identifiable health information, without patient authorization, for commercial gain. Under the terms of the deferred prosecution agreement, Aegerion will implement enhanced compliance provisions, including periodic certifications to the government concerning its implementation of those provisions.
Under the civil false claims settlement, Aegerion will pay $28.8 million over three years to resolve federal and state civil liability for causing false claims for Juxtapid to be submitted to government health care programs (Medicare, Medicaid, and TRICARE) arising from its promotion of Juxtapid for patients without a diagnosis of, or consistent with, HoFH; false and misleading statements to doctors that the use of Juxtapid was appropriate in patients with symptoms including high cholesterol, irrespective of whether such patients had a diagnosis of HoFH and despite counter-indications to a diagnosis of HoFH; and alteration or falsification of statements of medical necessity and prior authorizations that were submitted to federal health care programs. The government further alleged that Aegerion defrayed patients’ copayment obligations for Juxtapid, in violation of the Anti-Kickback Statute (AKS), by funneling funds through Patient Services Inc. (PSI), an entity that claimed to be a non-profit patient assistance organization. The federal share of the $28.8 million civil false claims settlement is $26.1 million and the state portion is $2.7 million.
“Aegerion put profits over patient safety and enriched itself at taxpayer expense,” said Acting U.S. Attorney William D. Weinreb for the District of Massachusetts. “Our Office is committed to protecting patient safety and the integrity of federal health care programs, and we will continue to use our criminal and civil authority to ensure that drug companies play by the rules that protect the public, ensure quality of care, and preserve patient privacy.”
As part of the resolution, Aegerion has agreed to enter into a separate civil consent decree to resolve civil liability under the FDCA in connection with its failure to comply with the requirements of the Juxtapid REMS program and its distribution of Juxtapid with labeling that lacked adequate directions for all of Juxtapid’s intended uses. Aegerion also entered into a Corporate Integrity Agreement (CIA) with the HHS-OIG. The five-year CIA requires, among other things, that Aegerion implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs comply with the law. In addition, the CIA requires reviews by an independent review organization and compliance-related certifications from company executives and Board members.
“We sometimes require companies to put in place certain measures to more closely manage a drug’s risks when we don’t believe a medicine’s benefits would outweigh its side effects without these risk mitigation strategies,” said FDA Commissioner Scott Gottlieb, M.D. “This might include requiring prescribers to undergo certain training on a drug’s risks, or having providers take steps to more closely monitor patients. By failing to follow the safety requirements that Aegerion had agreed to, the company put patients’ lives at risk and didn’t honor the safety commitments they made as a condition of gaining approval for their drug. This is unacceptable. We will continue to pursue those who skirt the law, and flout patient safety and other post-market commitments, using all of the enforcement tools available to us. Post-market safety requirements are a key element of FDA’s public health protections and we will ensure that they are fulfilled.”
“Today’s plea and settlement with Aegerion shows how the government will hold the pharmaceutical industry accountable for violating important FDA and privacy rules that are intended to keep patients safe and ensure the confidentiality of their information,” said Special Agent in Charge Harold H. Shaw of the FBI, Boston Field Division. “The FBI will continue to investigate companies like Aegerion that profit from exploiting patients who are searching for treatments for serious medical conditions.”
“Our corporate integrity agreement increases individual accountability for board members and company executives and it requires Aegerion to strengthen controls around promotional activities and other interactions with health care providers,” said Chief Counsel to the U.S. Department of Health and Human Services (HHS) Inspector General Gregory E. Demske. “Importantly, the CIA also requires that Aegerion implement controls and monitoring designed to ensure true independence from any charity patient assistance programs to which it donates in the future.”
“Today’s agreement demonstrates that we will not allow pharmaceutical manufacturers to provide the medical community with false and incomplete information about their products, thereby jeopardizing the health and safety of our citizens,” said Special Agent in Charge Phillip Coyne for the HHS Office of Inspector General (OIG). “Nor will we allow corporations to profit at the expense of patient care and their personal information.”
The civil false claims settlement resolves a lawsuit filed by Michele Clarke, Tricia Mullins, and Kristi Winger Szudlo, former employees of Aegerion, under the qui tam or whistleblower, provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suit was filed in the District of Massachusetts and is captioned United States ex rel. Clarke, et al. v. Aegerion Pharmaceuticals, Inc., et al., No. 13-CV-11785 (D. Mass.). Relators will receive $4.7 million from the federal proceeds of the civil false claims settlement.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
This resolution was the result of a coordinated effort by the U.S. Attorney’s Office for the District of Massachusetts, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, the FDA’s Office of Chief Counsel and Office of Criminal Investigations, the FBI, HHS-OIG, and the Department of Labor’s Employee Benefits Security Administration.
Except as to conduct admitted as part of the guilty plea and deferred prosecution agreement, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.