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Thursday 6 July 2017
Corpus Christi Man Convicted on Child Pornography ChargeRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old local man has entered a guilty plea to distribution of child pornography, announced Acting U.S. Attorney Abe Martinez.
Ronald Eugene Lowrey Jr. came to the attention of law enforcement when the Texas Attorney General’s Office conducted an investigation into a peer-to-peer file sharing network in 2014. Through that investigation, authorities identified a specific computer with suspected child pornography. Authorities later downloaded a total of eight such files that were being distributed via that device. The computer was later linked to Lowrey Jr. in Corpus Christi.
Law enforcement executed a search warrant at his residence, at which time he admitted to using the file sharing program and to viewing child pornography.
A forensic examination of the items seized during execution of the search warrant revealed approximately 37 images and 246 videos of child pornography, including those that authorities had previously downloaded.
U.S. District Judge Nelva Gonzalez Ramos accepted the guilty plea today and set sentencing for Oct. 19, 2017. At that time, Lowrey faces a minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum fine. Upon completion of any prison term imposed, Lowrey also faces a maximum of life on supervised released during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Lowrey was arrested on the federal charges in April 28, 2017, and has been in federal custody since that time where he will remain pending his sentencing hearing.
The Texas Attorney General’s Office, Corpus Christi Police Department’s Internet Crimes Against Children Task Force and the FBI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Elsa Salinas, 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."
Columbus Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Robert C. Stuart announced that Michael W. Kruse, 69, of Columbus, Nebraska, was sentenced today in Lincoln, Nebraska, to 4 years in prison by United States Senior District Judge Richard G. Kopf, for possession of child pornography. In addition to his prison term, Kruse will be required to serve 5 years of supervised release and register as a sex offender.
In October of 2015, an investigator with the Columbus Police Department received information from an investigator with the Nebraska State Attorney General’s Office that they were monitoring an IP address that was assigned to a residence in Columbus, Nebraska. This IP address reflected that a computer using the address had files available for sharing and downloading that were considered child pornography. The investigator from the Attorney General’s Office was able to download numerous video files which contained child pornography. The Columbus Police Department issued a subpoena to the IP provider and determined that it was assigned to Kruse at his residence in Columbus, Platte County, Nebraska.
A search warrant was executed at Kruse’s residence and officers made contact with Kruse who admitted to using a file sharing program to download child pornography. Later forensic investigation of the computers and storage media uncovered over 600 videos and still images of child pornography, including videos of victims known by law enforcement from previous investigations outside the state of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Columbus Police Department and the Nebraska Attorney General’s Office.
Columbus Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
COLUMBUS, Ohio – Aaron Travis Daniels, 20, aka Harun Muhammad, aka Abu Yusef of Columbus pled guilty in U.S. District Court to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, in violation of Title 18, United States Code, Section 2339B. Daniels faces a maximum sentence of 20 years in prison.
U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and agencies participating in the Columbus Joint Terrorism Task Force (JTTF) announced the plea entered today before Chief U.S. District Judge Edmund A. Sargus Jr.
JTTF agents arrested Daniels on November 7, 2106, as he attempted to leave Columbus with the intent to join ISIS in Libya. A federal grand jury indicted him on November 10, 2016 Daniels has been in custody since his arrest.
“This case demonstrates how terrorist activities abroad can reach into our local communities,” U.S. Attorney Glassman said. “Our office and agencies in the JTTF will continue to cooperate as we work to protect our national security.”
The Columbus JTTF is made up of officers and agents from the FBI, U.S. Marshals Service, Columbus Division of Police, Franklin County Sheriff’s Office, Ohio State Highway Patrol, The Ohio State University Police Department, the Ohio Investigative Unit, U.S. Immigrations and Customs Enforcement, the John Glenn International Airport Police Department, Westerville Police Department and Columbus Division of Fire.
The case is being prosecuted by Assistant U.S. Attorney Jessica W. Knight, Special Assistant U.S. Attorney Joseph Gibson with Franklin County Prosecutor Ron O’Brien’s Office, and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
Citizen of Guatemala Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Elder Alexander Ajin-Surek, age 25, and a citizen of Guatemala, was sentenced today to time served (66 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Anjin-Surek admitted that he is a citizen of Guatemala, and that he illegally returned to the United States after he was removed from the United States to Guatemala on August 9, 2012.
May 3, 2017, Anjin-Surek was arrested by Border Patrol Agents in Lewis, New York, in Essex County.
Following his sentencing, Anjin-Surek was placed into the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by United States Border Patrol and prosecuted by Assistant United States Attorney Edward P. Grogan.
Cedar Rapids Man Sentenced to More Than Seven Years in Federal Prison for Unlawfully Possessing a Gun and AmmunitionRead the Press Release
A convicted felon who possessed a gun and ammunition and discharged the gun inside a Cedar Rapids apartment building was sentenced today to more than seven years in federal prison.
Brian Lee Brown, age 39, from Cedar Rapids, Iowa, received the prison term after a March 2, 2017, guilty plea to one count of being a convicted felon in possession of ammunition. While imposing the sentence, the Court noted that Brown had an extensive criminal history going back to age 18 and that he had a history of violence. The Court also noted that Brown possessed a rifle and live ammunition and that he discharged the rifle in his apartment. The round went through his apartment wall and into an adjacent apartment. A woman and two children were in that apartment, but no one was injured.
Brown was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Brown was sentenced to eighty-seven months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Brown is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-96.
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California Payment Processing Company President and Part-Owner Sentenced to Prison for Fraud SchemeRead the Press Release
A Santa Ana, California man was sentenced today in Philadelphia, Pennsylvania for his role in processing unauthorized withdrawals of millions of dollars from consumer bank accounts, the Justice Department announced.
Neil Godfrey, 79, was sentenced to serve 15 months in prison, followed by one year of supervised release by Judge Eduardo Robreno in the Eastern District of Pennsylvania. Judge Robreno also ordered Godfrey to pay a $50,000 fine and entered a $100,000 forfeiture money judgment against the defendant. Godfrey pleaded guilty in July 2015 to a one-count Information charging him with wire fraud. The Information described how Godfrey, working as a payment processor, knowingly enabled fraudulent merchants to withdraw money from consumers’ bank accounts without the consumers’ knowledge or consent.
“Payment processors who knowingly facilitate consumer fraud commit a federal offense,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We are committed to protecting consumers from unknown withdrawals from their bank accounts, and we will prosecute any individual who knowingly assist these fraud schemes.”
Godfrey used a Santa Ana processing company named Check Site Inc. to assist at least two fraudulent merchants. The merchants operated or worked with websites that purportedly offered subscriptions, clubs, sweepstakes or payday loans. But in many cases, the websites were a ruse to harvest consumers’ bank account information. Instead of providing consumers with payday loans or other services advertised, the merchants operating the websites used the bank information provided by the consumers to withdraw money from the consumers’ bank accounts. Using Check Site, Godfrey knowingly processed the merchants’ fraudulent withdrawals and provided the merchants with access to the banking system.
As part of the criminal case, Godfrey admitted to using payment devices called remotely created checks (RCCs) to facilitate fraud schemes. Once the fraudulent merchants had obtained consumer names and bank account information, the merchants created RCCs, which Check Site submitted through the banking system to the consumers’ banks. Unlike an ordinary check, an RCC is generally honored without the signature of the account holder. When the RCCs were processed, Check Site kept a fee and transferred the remainder of the withdrawals to the merchants.
According to charging documents, Godfrey used banks that were willing to facilitate these transactions and ignore the red flags raised by these transactions. The charges also alleged that Godfrey helped the fraudulent merchants stay off the radar of bank employees and regulators so that the fraud could continue. For example, Godfrey advised merchants how to change the names of their companies and set up the facade of a legitimate company to defeat banks’ attempts at due diligence.
In an email message quoted in the charging documents, Godfrey advised a fraudulent merchant that “the lesson we have learned is that we must trick the [bank] folk. It means you need to set up some type of website front. What we need to do is set up a legitimate website selling anything you can think of – that is what you get approved on. It is irrelevant if anything is ever sold there – just so it exists. . . . In the mean time we set up false credit card approval etcetera. It is this we use to run the transactions. Yes, there will be a lot of returns, but what we do is send through transactions over the next few weeks that don’t have high returns. They stop looking and then we can run the regular stuff. . . . [A]fter several months we junk that company and go to another company.”
Acting Assistant Attorney General Chad A. Readler thanked the Federal Trade Commission for providing Attorney Michelle Chua to serve as a Special Assistant U.S. Attorney on the case, and commended the FBI and the Federal Deposit Insurance Corporation Office of Inspector General for their thorough investigation. The case is being prosecuted by Assistant U.S. Attorney Patrick J. Murray of the Eastern District of Pennsylvania and Trial Attorney Kathleen Konopka of the Civil Division’s Consumer Protection Branch.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Eastern District of Pennsylvania, visit its website at https://www.justice.gov/usao-edpa.
Bowie County Man Sentenced for Federal ViolationsRead the Press Release
TEXARKANA, Texas – A 46-year-old Bogata, Texas man has been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
John Purviance pleaded guilty on Feb. 6, 2017 to unlawful use of a pesticide and unlawful taking of migratory birds and was sentenced to two years of federal probation today by U.S. Magistrate Judge Caroline M. Craven.
According to information presented in court, on April 9, 2016, Purviance mixed a restricted-use pesticide with corn syrup and then spread the mixture along a tree line of a ranch in Bowie County with the intent to poison and kill feral hogs. Although feral hogs were among the animals that died from consuming the poison, other animals also died, including blackbirds, cardinals, and at least one vulture, which are all migratory birds and protected by federal statute. Purviance was also fined $2,375 and ordered to pay restitution in the amount of $4,198.
This case was investigated by the U.S. Fish and Wildlife Service, Criminal Investigation Division, the Environmental Protection Agency, and the Texas Department of Agriculture and prosecuted by Assistant U.S. Attorney Jim Noble.
Bloomfield man indicted for selling drugs that resulted in fatal overdose of Ashtabula County motherRead the Press Release
A Bloomfield man was indicted in federal court for selling drugs that resulted in the death of an Ashtabula County woman last year, said Acting U.S. Attorney David A. Sierleja.
Shawn Ray Smith, 29, was named in a seven-count indictment. The charges include distribution of fentanyl, heroin, cocaine and methamphetamine that resulted in the death of an Ashtabula County woman on Feb. 5, 2016.
The woman's mother told investigators that she was awakened by her grandchildren crying, saying, “Mommy won’t get up.” The woman's mother checked on her daughter and found her unresponsive, according to an affidavit filed in the case.
Additional counts include distribution of heroin and fentanyl, distribution of cocaine, distribution of heroin and distribution of methamphetamine. He was also charged with being a felon in possession of firearms.
Smith possessed three firearms, as well as ammunition, despite prior felony convictions that prohibited him from having firearms, including convictions for burglary (Ashtabula County) and aggravated drug trafficking (Geauga County), according to the indictment.
“This is another heartbreaking example of the devastating impact drugs are having on our community,” Sierleja said. “We will continue to seek long prison sentences for those who profit from other people’s misery.”
The charge related to the death of Knight carries a potential sentencing enhancement that would result in a mandatory sentence of at least 20 years in prison if convicted. If so, the the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Justin Seabury Gould and Marisa T. Darden following an investigation by the Drug Enforcement Administration, the Ashtabula County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Alien Indicted on Illegal Reentry ChargeRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging ELY OSCAR MORENO-PONCE, age 41, of Mexico, with Illegal Reentry of a Deported Alien.
MORENO-PONCE is alleged to have been previously deported subsequent to an aggravated felony conviction (possession with intent to manufacture, deliver or sell marijuana). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the Department of Homeland Security.
84-Month Prison Sentence for Dayton Man Who Jumped Bank Counters, Used Pepper Spray to Steal CashRead the Press Release
DAYTON – Michael Stathas, 33, of Dayton, was sentenced in U.S. District Court today to 84 months in prison for robbing two banks in Montgomery County in December 2016.
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 imposed by U.S. District Judge Walter H. Rice.
Stathas pleaded guilty on April 3, 2017 to two counts of robbery. According to the Statement of Facts filed with his plea agreement, Stathas jumped the teller counter at a Fifth Third Bank in Kettering, Ohio on December 23, pepper-sprayed the teller and stole the teller’s station money. On December 29, Stathas vaulted a bank counter at Key Bank in Centerville, Ohio. Once on the other side of the counter, he stole cash from the teller’s station.
Stathas fled the second robbery in his vehicle. Montgomery County Sheriff’s deputies and detectives in marked vehicles attempted to stop him, but rather than complying with their demands, he fled at a high rate of speed, ultimately crashing his car near Moraine, Ohio.
U.S. Attorney Glassman commended the cooperative investigation of this case by the FBI, Montgomery County Sheriff’s Office and the Kettering Police Department, as well as Assistant United States Attorney Brent G. Tabacchi, who represented the United States in this case.
Wednesday 5 July 2017
Windham Man Pleads Guilty to Child Pornography ChargeRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Matthew Miller, 51, of Windham, Maine, pled guilty today in U.S. District Court to accessing with intent to view material containing images of child pornography.
According to court records, in September 2016, investigators from Homeland Security Investigations and the Maine State Police Computer Crimes Unit were investigating the exchange of child pornography over the internet. As part of the investigation, agents downloaded child pornography files from a computer that was making the files available. The computer was later determined to be at Miller’s residence in Windham. Investigators executed a search warrant at the residence, and found that Miller had been searching for and downloading child pornography to his computer using a peer-to-peer file-sharing network.
Miller faces a sentence of up to 10 years of imprisonment and a fine of up to $250,000. He also faces a term of supervised release following his release from prison of no less than five years and up to life. He will be sentenced after the completion of a presentence investigation report by the United States Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit.
United States Files Civil Action to Forfeit Thousands of Ancient Iraqi Artifacts Imported by Hobby LobbyRead the Press Release
Earlier today, the United States filed a civil complaint to forfeit thousands of cuneiform tablets and clay bullae. As alleged in the complaint, these ancient clay artifacts originated in the area of modern-day Iraq and were smuggled into the United States through the United Arab Emirates (UAE) and Israel, contrary to federal law. Packages containing the artifacts were shipped to Hobby Lobby Stores, Inc. (“Hobby Lobby”), a nationwide arts-and-crafts retailer based in Oklahoma City, Oklahoma, and two of Hobby Lobby’s corporate affiliates. The shipping labels on these packages falsely described cuneiform tablets as tile “samples.”
The government also filed a stipulation of settlement with Hobby Lobby, in which Hobby Lobby consented to the forfeiture of the artifacts in the complaint, approximately 144 cylinder seals and an additional sum of $3 million, resolving the civil action. Hobby Lobby further agreed to adopt internal policies and procedures governing its importation and purchase of cultural property, provide appropriate training to its personnel, hire qualified outside customs counsel and customs brokers, and submit quarterly reports to the government on any cultural property acquisitions for the next eighteen months.
The complaint and stipulation of settlement were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
“American collectors and importers must ensure compliance with laws and regulations that require truthful declarations to U.S. Customs and Border Protection, so that Customs officers are able to scrutinize cultural property crossing our borders and prevent the inappropriate entry of such property,” stated Acting United States Attorney Rohde. “If they do not, and shippers use false declarations to try to clandestinely enter property into the United States, this Office and our law enforcement partners will discover the deceit and seize the property.” Ms. Rohde thanked U.S. Customs and Border Protection for its role in intercepting shipments and safeguarding the seized antiquities.
“The protection of cultural heritage is a mission that HSI and its partner U.S. Customs and Border Protection (CBP) take very seriously as we recognize that while some may put a price on these artifacts, the people of Iraq consider them priceless,” stated Special Agent-in-Charge Melendez.
According to the complaint and stipulated statement of facts filed with the court, in or around 2009, Hobby Lobby began to assemble a collection of historically significant manuscripts, antiquities and other cultural materials. In connection with this effort, Hobby Lobby’s president and a consultant traveled to the UAE in July 2010 to inspect a large number of cuneiform tablets and other antiquities being offered for sale (the “Artifacts”). Cuneiform is an ancient system of writing on clay tablets that was used in ancient Mesopotamia thousands of years ago.
In October 2010, an expert on cultural property law retained by Hobby Lobby warned the company that the acquisition of cultural property likely from Iraq, including cuneiform tablets and cylinder seals, carries a risk that such objects may have been looted from archaeological sites in Iraq. The expert also advised Hobby Lobby to review its collection of antiquities for any objects of Iraqi origin and to verify that their country of origin was properly declared at the time of importation into the United States. The expert warned Hobby Lobby that an improper declaration of country of origin for cultural property could lead to seizure and forfeiture of the artifacts by CBP.
Notwithstanding these warnings, in December 2010, Hobby Lobby executed an agreement to purchase over 5,500 Artifacts, comprised of cuneiform tablets and bricks, clay bullae and cylinder seals, for $1.6 million. The acquisition of the Artifacts was fraught with red flags. For example, Hobby Lobby received conflicting information where the Artifacts had been stored prior to the inspection in the UAE. Further, when the Artifacts were presented for inspection to Hobby Lobby’s president and consultant in July 2010, they were displayed informally. In addition, Hobby Lobby representatives had not met or communicated with the dealer who purportedly owned the Artifacts, nor did they pay him for the Artifacts. Rather, following instructions from another dealer, Hobby Lobby wired payment for the Artifacts to seven personal bank accounts held in the names of other individuals.
With Hobby Lobby’s consent, a UAE-based dealer shipped packages containing the Artifacts to three different corporate addresses in Oklahoma City, Oklahoma. Between one and three shipments arrived at a time, without the required customs entry documentation being filed with CBP, and bore shipping labels that falsely and misleadingly described their contents as “ceramic tiles” or “clay tiles (sample).” . After approximately 10 packages shipped in this manner were received by Hobby Lobby and its affiliates, CBP intercepted five shipments. All of the intercepted packages bore shipping labels that falsely declared that the Artifacts’ country of origin was Turkey. No further shipments were received until September 2011, when a package containing approximately 1,000 clay bullae from the same purchase was received by Hobby Lobby. It was shipped by an Israeli dealer and accompanied by a false declaration stating that the bullae’s country of origin was Israel.
In executing the stipulation of settlement, Hobby Lobby has accepted responsibility for its past conduct and agreed to take steps to remedy the deficiencies that resulted in its unlawful importation of the Artifacts. Hobby Lobby has agreed to the forfeiture of all of the Artifacts shipped to the United States.
The government’s case is being handled by Assistant United States Attorneys Karin Orenstein and Ameet B. Kabrawala.
E.D.N.Y. Docket No. 17-CV-3980 (LDH) (VMS)
Exhibit A
Sample Images of the Defendants in RemCuneiform Tablet
Cuneiform Tablets
Clay Bullae
U.S. Reaches $8.3 Million Civil Settlement with Reliant Care Group and Reliant Affiliated EntitiesRead the Press Release
St. Louis, Missouri: The United States Attorney’s Office for the Eastern District of Missouri announced today that the United States, Reliant Care Group, Reliant Care Management Company, Reliant Care Rehabilitative Services, and a number of Reliant affiliated skilled nursing facilities (Reliant) reached a civil settlement that will resolve the United States' claims against Reliant under the False Claims Act for knowingly submitting false claims to Medicare for providing unnecessary physical, speech, and occupational therapy to nursing home residents.
According to the United States’ allegations, from January of 2008 through April of 2014, Reliant provided unnecessary physical, speech and occupational therapy to nursing home residents who had a relatively high level of independence and who were residing in a skilled nursing facility primarily because of a psychiatric condition. The United States alleged that Reliant provided the unnecessary therapy and then sought the inflated reimbursement from Medicare influenced by its own financial considerations. The United States further alleged that some Reliant Care Rehabilitative Services management pressured therapists to provide therapy to residents even when the therapists believed that the therapy was not medically necessary.
As part of the settlement, Reliant will repay the United States $8,368,878.
Reliant has also entered into a five-year Corporate Integrity Agreement with the United States Department of Health and Human Services, Office of Inspector General (HHS-OIG). Pursuant to the terms of the Corporate Integrity Agreement, Reliant must comply with a number of reporting obligations to ensure that Reliant remains compliant with Federal health care program requirements.
Today's settlement sends a message to those who seek to take advantage of the Medicare program. "Health care fraud is a major and increasingly serious problem that costs taxpayers millions in lost and wasted dollars while depriving vulnerable beneficiaries of the care and support they need," said Special Agent in Charge Steven Hanson from HHS-OIG. "Every dollar that we save or recover allows us to better serve those who really need and deserve our help. We will continue to aggressively investigate these cases in an effort to eliminate the corruption in our health care system."
This civil settlement is part of ongoing efforts by the Department of Justice and the United States Department of Health and Human Services to recover funds diverted from the Medicare Trust Account and is the result of the combined work of the U.S. Attorney=s Office for the Eastern District of Missouri, HHS-OIG, and the Federal Bureau of Investigation.
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Taylor County man sentenced for illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Rollie C. Poynter, Jr., 51, of Grafton, West Virginia, was sentenced today in federal court to 105 months, 11 day incarceration for illegal possession of a firearm, Acting United States Betsy Steinfeld Jividen announced.
Poynter, who had previously been convicted of felony offenses in West Virginia, Ohio, and Kentucky, admitted to having in his possession a .38 caliber revolver in Taylor County, West Virginia in April 2016. Poynter pled guilty to one count of “Unlawful Possession of a Firearm” in May 2017.Poynter’s sentence will run concurrently with the state’s sentence presently being served.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Taylor County Sheriff’s Office, and Grafton City Police Department investigated.
U.S. District Judge Irene M. Keeley presided.Status Update: U.S. v. Brendt A. ChristensenRead the Press Release
URBANA, Ill. – During today’s court hearing, which lasted approximately 25 minutes, U.S. Magistrate Judge Eric I. Long found that the government satisfied its burden to show that defendant, Brendt A. Christensen, presents both a danger to the community and the risk of non-appearance at future court proceedings. Judge Long therefore ordered that Christensen be detained pending trial in the custody of the U.S. Marshals Service.
Christensen, 28, of Champaign, Ill., was arrested on June 30, 2017, and charged with kidnapping visiting Chinese scholar Yingying Zhang on June 9, 2017.
According to statements made by the government during today’s hearing, the government alleges that Christensen attended and walked in a vigil for the victim on June 29; has made statements about the characteristics of the ideal victim; that the victim fought and resisted; and, that he made a threat to another person to whom he made incriminating statements.
The FBI, the University of Illinois Police Department, the Illinois State Police and local law enforcement are investigating this case. Assistant U.S. Attorneys Bryan D. Freres and Eugene L. Miller and prosecuting the case.
Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
Springfield Man Pleads Guilty to Illegal Firearm Following High-Speed ChaseRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man who led a state trooper on a 107-miles-per-hour chase on Highway 65, pleaded guilty in federal court today to illegally possessing a firearm.
Clinton J. Haynes, 27, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to being a felon in possession of a firearm. Haynes has remained in federal custody since his arrest.
Haynes was arrested on Feb. 2, 2017, following a high-speed pursuit on U.S. Highway 65 by a Missouri State Highway Patrol trooper. The trooper attempted to stop Haynes’s vehicle, a gold Chevrolet Impala with expired plates and an illegally tinted driver’s side window. When the trooper activated his lights and siren, Haynes accelerated to 107 miles per hour. The trooper pursued Haynes as he overtook 31 vehicles, ignored a red stop light and passed a vehicle on the acceleration ramp.
Haynes’s vehicle eventually stopped on the shoulder of U.S. Highway 65 near Evans Road. Haynes fled on foot across the highway with the trooper in pursuit. Haynes then returned to his vehicle and sat in the driver’s seat. The trooper, with his service pistol drawn, ordered Haynes to get out of the vehicle, but Haynes refused. The trooper removed Haynes from the vehicle and placed him in handcuffs.
While checking the path that Haynes fled, in the grass of the median, the trooper found a loaded Jimenez 9mm semi-automatic pistol. The trooper also searched Haynes and found a plastic bag containing 45.64 grams of marijuana in his pants.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Haynes has a prior felony conviction for robbery.
Under federal statutes, Haynes is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missouri State Highway Patrol.
Springfield Man Pleads Guilty to Drug Trafficking Resulting in MurderRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine, which resulted in the murder of a Mexican national, Oscar Adan Martinez-Gaxiola.
Anthony Edward Donovan, 20, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in a July 20, 2016, federal indictment.
By pleading guilty today, Donovan admitted that he participated in a conspiracy to distribute methamphetamine in Greene County, Dallas County, Webster County and Christian County, Mo., which ran from April 28, 2015, to April 26, 2016.
Donovan is the fourth defendant to plead guilty in this case. Brooke Danielle Beckley, 20, and Jourdan Ashley McGinnis, 28, both of Nixa, Mo., and Nathaniel Austin Lee, 19, of Seymour, Mo., have also pleaded guilty to their roles in the conspiracy.
McGinnis admitted that, on April 8, 2016, he and Beckley possessed at least 1.5 kilograms of methamphetamine in a hotel room, which they intended to distribute to another person.
In addition to the drug-trafficking conspiracy, Donovan, Beckley and Lee each pleaded guilty to using a firearm in furtherance of a drug-trafficking crime, resulting in murder. They admitted that the murder of Martinez-Gaxiola on April 25, 2016, in Webster County was willful, deliberate, malicious and premeditated. Aiding and abetting each other, the conspirators used several handguns to ambush Martinez-Gaxiola in rural Webster County as he was attempting to collect a drug debt owed by Beckley.
Under federal statutes, Donovan, Beckley, Lee and McGinnis are each subject to sentences of up to life in federal prison without parole for these crimes. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Timothy A. Garrison. It was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Christian County, Mo., Sheriff’s Department, the Greene County, Mo., Sheriff’s Department, the Lawrence County, Mo., Sheriff’s Department, the Webster County, Mo., Sheriff’s Department, the Seymour, Mo., Police Department, the Rogersville, Mo., Police Department, the Springfield, Mo., Police Department and the Combined Ozarks Multijurisdictional Enforcement Team (COMET).
Smith County Men Guilty of Importing Anabolic SteroidsRead the Press Release
TYLER, Texas – Two Tyler, Texas men have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Stacey Godsey, 44, and Joseph Shay Burton, 39, pleaded guilty to conspiracy to import anabolic steroids today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, beginning in the summer of 2014 and continuing until the spring of 2016, Godsey and Burton purchased anabolic steroids through the internet from suppliers located in China. The steroids were shipped to the United States where Godsey and Burton converted them from powder to liquid dosage units in the kitchen and garage of Godsey's residence. Once converted into liquid dosage units, the steroids were sold and distributed to steroid users in Tyler, Texas and elsewhere. In the spring of 2016, law enforcement officers searched residences belonging to Godsey and Burton. More than 60,000 dosage units of anabolic steroids were found at Godsey's residence. More than 6,000 dosage units were found at Burton's residence.
Under federal statutes, the defendants each face up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Drug Enforcement Administration, the Tyler Police Department, and the Smith County Sheriff's Office and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Sisseton Man Found Guilty of FraudRead the Press Release
United States Attorney Randolph J. Seiler announced today that Keith Hagen, age 49, of Sisseton, South Dakota, was found guilty of several counts of fraud by a federal jury on June 28, 2017.
Hagen and his former wife, Amanda Holy Bull, were indicted on February 9, 2016, for Conspiracy to Commit Mail Fraud and Wire Fraud, three counts of Wire Fraud, and four counts of Mail Fraud.
Hagen and Holy Bull leased pasture land from the Bureau of Indian Affairs. They used the land to provide custom cattle grazing services to cattle producers. They entered into contracts with several cattle producers, knowing that they did not lease enough pasture land to graze all of the cattle for which they had contracted. They took up-front payments from several producers, failed to provide the grazing services, and used the money for personal purposes. In all they defrauded producers out of over $200,000.
Each count has a maximum sentence of 20 years in prison and/or a $250,000 fine, 3 years of supervised release, restitution, and $100 to the Federal Crime Victims Fund.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Holy Bull, age 33, also of Sisseton, South Dakota, pled guilty to the conspiracy charge and will be sentenced on October 30, 2017. Hagen will be sentenced October 16, 2017.
Sedalia, Independence Men Indicted for $7 Million Marijuana ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that two men were indicted by a federal grand jury today for their roles in a $7 million conspiracy to distribute marijuana in Pettis, Cooper, Boone, Morgan, Pulaski and Jackson counties.
Zachary Scott Nutt, also known as “Tuna,” 35, of Los Angeles, Calif., and Sedalia, Mo., and Nicholas Anders Glaholt, 34, of Independence, Mo., were charged in an indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces federal criminal complaints that were filed against Nutt and Glaholt on June 14, 2017.
The federal indictment alleges that Nutt and Glaholt participated in a conspiracy to distribute 1,000 kilograms or more of marijuana in Pettis, Cooper, Boone, Morgan, Pulaski and Jackson counties from Oct. 5, 2001, through June 13, 2017.
According to an affidavit filed in support of the original criminal complaint, Nutt and Glaholt – who have leadership roles in the conspiracy – obtained marijuana from multiple sources, including a grow operation in California. They have directly supervised and executed the transportation and distribution of the marijuana obtained from California, the affidavit says. Business and financial records establish that, since early 2010, Nutt and Glaholt have travelled between California and Missouri on commercial flights and/or in rented vehicles.
On Aug. 18, 2016, the affidavit says, investigators seized approximately eight pounds of marijuana supplied by the defendants and others. On Nov. 6, 2016, investigators seized approximately 40 pounds of marijuana supplied by the defendants and others. On Nov. 7, 2016, investigators seized approximately four pounds of marijuana supplied by the defendants and others. On Dec. 15, 2016, investigators seized approximately four pounds of marijuana supplied by the defendants and others.
According to the affidavit, investigators learned that another person transported approximately $73,700 to Nutt for the purchase of marijuana in California for distribution in Missouri. On April 5, 2017, investigators in California observed Nutt loading a vehicle with what was believed to be marijuana. On April 8, 2017, Nutt flew back to Kansas City and Glaholt picked him up at Kansas City International Airport. Nutt and Glaholt drove directly to Glaholt’s residence, where the “load” vehicle arrived from California shortly thereafter. On June 5, 2017, investigators seized approximately 11 pounds of marijuana supplied by the defendants and others. A person arrested by investigators in the aftermath of the seizure of marijuana reported that the person had received approximately 440 kilograms of marijuana from Nutt over a period of approximately two years.
Nutt and Glaholt were arrested on June 13, 2017. Glaholt was found to be in possession of approximately two pounds of marijuana in his vehicle. Nutt was in possession of approximately two ounces of marijuana in his vehicle.
Law enforcement officers executed search warrants at Glaholt’s residence and another residence in Kansas City, Mo., on June 13, 2017. At Glaholt’s residence they seized approximately $20,000 believed to be drug proceeds, several individual packages of marijuana, marijuana wax, digital scales, vacuum sealers, ledgers, computers, tablets and notes. At the Kansas City residence investigators seized approximately 261 pounds of marijuana (including packaging), cell phones, digital scales, drug packaging equipment, eight empty duffel bags, .22-caliber ammunition and drug ledgers from a safe.
Today’s indictment also contains a forfeiture allegation, which would require Nutt and Glaholt to forfeit to the government $7 million, which represents the total amount of money involved in the conspiracy.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, IRS-Criminal Investigation, the Sedalia, Mo., Police Department, the Cooper County, Mo., Sheriff’s Department, the East Central Drug Task Force and the Missouri State Highway Patrol.
San Francisco International Airport Security Screener Sentenced to A Year in Prison for Her Role in A Conspiracy to Obstruct the Transportation Security AdministrationRead the Press Release
SAN FRANCISCO – Jessica Scott, an employee of Covenant Aviation Security (CAS), a private company that contracts with the Transportation Security Administration (TSA), was sentenced today to one year and a day in prison for her role in a conspiracy to defraud the federal government, announced United States Attorney Brian J. Stretch, Drug Enforcement Administration Special Agent in Charge John J. Martin, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and Transportation Security Administration Office of Inspection Special Agent in Charge Regan O. Fong. The sentence was handed down by the Honorable Charles R. Breyer, following a guilty plea in which Scott admitted permitting carry-on luggage to pass through a checkpoint undetected at the San Francisco International Airport (SFO).
Scott, 29, of San Pablo, Calif., pleaded guilty on March 28, 2017, to conspiring to defraud the government in connection with a drug smuggling operation at SFO. According to her plea agreement, on July 18, 2013, her former husband, Joseph Scott, 35, of Vallejo, told her that a friend would be coming through the terminal and that the friend’s bag was “good.” Jessica Scott understood that she was being asked for her assistance to ensure that the carry-on luggage would not be subject to a secondary check when the passenger passed through security. The defendant admitted that she deliberately avoided learning what was in the bag by failing to take steps to investigate the luggage—even though she knew there was a high probability that the luggage contained drugs. In addition, the defendant admitted that when she saw the x-ray image of the carry-on luggage, she recognized three bright orange bricks and three bright green bricks that, based on her training and experience, she knew might have been explosives. Jessica Scott nevertheless allowed the luggage to pass through security without further investigation.
On November 3, 2015, Jessica Scott was indicted along with Joseph Scott and another former Lead Transportation Security Officer for CAS. All three were charged with one count of conspiring to defraud the TSA by obstructing a lawful government function, in violation of 18 U.S.C. § 371, and one count conspiring to distribute and possess with intent to distribute more than five kilograms of cocaine, in violation of 21 U.S.C. §§ 846 and 841. Pursuant to her plea agreement, Jessica Scott pleaded guilty to the conspiracy to obstruct charge.
In addition to the prison term, Judge Breyer also ordered Jessica Scott to serve a three-year term of supervised release. On June 27, 2017, Joseph Scott pleaded guilty to one count of receiving a bribe as a public official, in violation of 18 U.S.C. § 201(b)(2). Judge Breyer set his sentencing for November 15, 2017.
Assistant U.S. Attorney Laura Vartain Horn is prosecuting the case with the assistance of Wincy Wong. The investigation has involved officers and agents from the Drug Enforcement Administration, Federal Bureau of Investigation, the TSA Office of Inspection, San Francisco Police Department, and the Oakland Police Department. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Rocky River man charged with money launderingRead the Press Release
A Rocky River man was charged with laundering more than $100,000 from investors and using at least some of it for personal expenses, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Mark Dulik, 31, was charged via criminal information with four counts of money laundering.
Dulik owned and operated Rework, Inc., based in Rocky River, which allegedly provided cloud-based software services. Dulik convinced several individuals to invest in Rework by convincing them that it was a legitimate, on-going business – when in fact Dulik converted the investors’ funds for his own personal use to pay for his lavish lifestyle, according to the information.
Investigators determined that Dulik used new investors’ money to pay dividends/interest payments back to older investors, representing to the earlier investors that the money represented profits from the company, when in fact it operated more like a Ponzi scheme, according to court documents.
Dulik took approximately $101,500 of investors’ money from Rework’s business account that he either used for his own use or falsely representing the funds were returns on earlier investments derived from profits of Rework.
If convicted, the court will determine defendant’s sentence after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant United States Attorney Mark S. Bennett following an investigation by the Internal Revenue Service’s Criminal Investigation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Rapid City Man Sentenced for Role in Child’s DeathRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Misprison of a Felony was sentenced on June 20, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Mitchell Lee Wisecarver, age 44, was sentenced to time served of 17.5 months, 1 year of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Wiscarver was charged on September 15, 2015, and pleaded guilty on March 3, 2017. The conviction stems from Wiscarver covering up for his wife, Lori Wisecarver, and allowing the continued physical abuse of a young boy from October 2014 to February 2015. The abuse ultimately caused the death of the child.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Sarah B. Collins and Eric Kelderman prosecuted the case.
Penn National Horse Trainer Convicted on Multiple Counts of Misbranding Prescription Drugs on Race DayRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Penn National horse trainer Murray Rojas, 51, Grantville, Pennsylvania, was convicted of 14 felony counts of misbranding prescription drugs on race day and conspiracy. The crimes involved Rojas directing veterinarians to administer drugs to her horses on race day in violation of track rules and state law. The jury found her not guilty of seven counts of wire fraud and conspiracy to commit wire fraud. The jury returned the verdicts on June 30, 2017, after one day of deliberation, and after an eight-day jury trial in Harrisburg before United States District Court Judge Sylvia H. Rambo.
According to United States Attorney Bruce D. Brandler, the conspiracy took place between 2002 and 2014, and involved 58 races. Rojas was convicted of conspiring with three veterinarians to have the drugs administered to horses on the day they were entered to race.
The evidence presented during the trial showed that steps were taken to conceal this conduct by backdating invoices for the sale and administration of drugs to the horses on race day, as well as the submission of fraudulent veterinarian treatment reports to the Pennsylvania Horse Racing Commission.
The United States Attorney’s Office prosecuted several other individuals as part of this investigation in federal and state court, including:
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Danny Robertson, the official clocker, charged with wire fraud, sentenced to one year probation and ordered to pay a $2,500 fine;
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Craig Lytel, a racing official, charged with wire fraud, sentenced to four months in prison and ordered to pay a $1,000 fine;
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Renée Nodine, veterinarian, charged with misbranding and conspiracy, awaiting sentencing;
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Kevin Brophy, veterinarian, charged with misbranding and conspiracy, awaiting sentencing;
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Fernando Motta, veterinarian, charged with misbranding and conspiracy, awaiting sentencing;
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David Wells, owner and trainer, charged with rigging a publicly exhibited contest, sentenced on February 23, 2015, to three months’ imprisonment;
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Patricia Rogers, trainer, charged with rigging a publicly exhibited contest, received an ARD in Dauphin County Court of Common Pleas;
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Samuel Webb, trainer, charged with rigging a publicly exhibited contest, received an ARD in Dauphin County Court of Common Pleas.
The case was investigated by the by the Federal Bureau of Investigation, the Pennsylvania Department of Agriculture’s Horse Racing Commission and the Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorney William A. Behe prosecuted the case.
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Non-Indian Man from Albuquerque Charged with Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Vincent P. Luciani, 25, a non-Indian man from Albuquerque, with assaulting a federal officer. Luciani was released pending trial under pretrial supervision and other conditions of release, including the condition that he reside in a halfway house.
Luciani was arrested on July 3, 2017, and was charged by criminal complaint with assaulting an officer of the Pueblo of Laguna Tribal Police Department, who is commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. According to the complaint, Luciani allegedly assaulted the officer by threatening the officer with a firearm following a routine traffic stop. Luciani allegedly committed the offense on June 30, 2017, on Laguna Pueblo in Cibola County, N.M.
If convicted of the charge in the complaint, Luciani faces a maximum penalty of eight years in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Pueblo of Laguna Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Mission Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 28, 2017, by U.S. District Judge Roberto A. Lange.
Benjamen T. Flute, a/k/a Benjamin T. Flute, age 38, was sentenced to 18 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Flute was indicted by a federal grand jury on January 19, 2017. He pled guilty on April 11, 2017.
Flute was convicted of Second-Degree Rape in Caddo County, Oklahoma, in December 2007. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. In November 2016, Flute moved to Mission, South Dakota, but did not update his registration. He was arrested by Rosebud Sioux Tribe Law Enforcement Services on December 15, 2016, and charged with failure to register as a sex offender in Rosebud Sioux Tribal Court. He subsequently bonded out of jail, but did not update his registration.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Flute was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance, Methamphetamine, was sentenced on June 27, 2017, by U.S. District Judge Roberto A. Lange.
Adam Dean Stoneman, age 28, was sentenced to 70 months in custody, followed by 3 years of supervised release, a fine of $1,000, forfeiture of $60, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Stoneman was indicted by a federal grand jury on December 14, 2016. He pled guilty on April 11, 2017.
Between July 1, 2014, and December 14, 2016, Stoneman knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota.
Stoneman received distributable quantities of methamphetamine and distributed some of the methamphetamine in South Dakota. The individuals who provided Stoneman with the methamphetamine knew that he intended to engage in further distribution. Stoneman admitted that it was reasonably foreseeable to him that more than 200 grams of methamphetamine would be distributed during the course of the conspiracy.
When Stoneman was arrested on August 17, 2016, he had $60 in his possession that was proceeds of drug distribution activity. That money was seized by law enforcement and forfeited.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Stoneman was immediately turned over to the custody of the United States Marshals Service.
Minnesota Man Appeared in Federal Court to Face Fraud Conspiracy, Aggravated Identity Theft and Meth ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Minneapolis, Minnesota, man made his initial appearance in federal court, following an indictment being filed against him by a federal grand jury for Conspiracy to Commit Bank Fraud, Aggravated Identity Theft, and Possession with Intent to Distribute Methamphetamine.
Jason Maurice Fagin, age 38, was indicted on May 9, 2017. Fagin made his initial appearance in federal court on June 26, 2017, in Sioux Falls, South Dakota.
The maximum penalties upon conviction for each count are as follows: Conspiracy to Commit Bank Fraud has a penalty of up to 20 years of imprisonment and/or a $1,000,000 fine; Aggravated Identity Theft requires a mandatory 2 years of imprisonment to be served consecutively to any term of imprisonment for the Conspiracy to Commit Bank Fraud offense; and Possession with Intent to Distribute Methamphetamine has a penalty of up to 20 years of imprisonment and/or a $1,000,000 fine. Each count of conviction requires a term of years of supervised release and $100 to the Federal Crime Victims Fund. Restitution and forfeiture may also be ordered.
According to the indictment, between September 2016 and November 16, 2016, Fagin engaged in a scheme to defraud financial institutions while using the personal identifying information of other individuals. Fagin would use the proceeds of the fraud scheme to purchase methamphetamine for his use and to distribute to others for money.
The charges are merely accusations and Fagin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Flandreau Police Department, and the Flandreau Sioux Tribe’s Police Department. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Mexican Drug Trafficker Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Rafael Tellez-Tijernia, 39, a citizen of Mexico residing in Houston, Texas, was sentenced today in federal court on charges involving his possession with intent to distribute cocaine. Court documents reflect that Tellez-Tijernia and three others were implicated when Mobile County Street Narcotics Enforcement Team (MCSENT) officers entered a residence on Frieda Avenue in Eight Mile to execute a search warrant in July of 2016. They found Rafael Tellez-Tijernia and two others in the kitchen of the residence. Also in the kitchen was approximately two kilograms of cocaine and a firearm. Tellez-Tijernia initially provided the false name of Juan Carlos Rivas-Rodriguez to the officers. He pled guilty to the federal charge in March of 2017.
United States District Court Judge William H. Steele sentenced Tellez-Tijernia to 51 months imprisonment. At the completion of that sentence, he will be delivered to a duly authorized immigration official for deportation. No fine was imposed. The judge ordered that Tellez-Tijernia pay the $100 special mandatory assessment.
The case was investigated by MCSENT and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Gloria Bedwell prosecuted it in the United States Attorney’s Office.
Massachusetts Man Pleads Guilty to Drug Trafficking ChargeRead the Press Release
CONCORD, N.H. – Ernesto L. Reyes, 26, of Massachusetts, pleaded guilty today to possessing a controlled substance with intent to distribute, announced Acting United States Attorney John J. Farley.
According to court documents and statements made at today’s change of plea hearing, Reyes committed a series of traffic violations while driving a motor vehicle on the evening of November 11, 2016, on Route 125 in Plaistow, New Hampshire. As a result of these violations, Reyes was stopped by the New Hampshire State Police. When Reyes exited the vehicle, a New Hampshire State Trooper observed a package wrapped in green colored plastic wrap containing a powder that appeared to be heroin. The package was located on the floor along the left side of the driver’s seat. Later testing performed by the State Police Forensic Laboratory confirmed that the package found in the vehicle contained nearly 100 grams of a mixture of heroin and fentanyl.
Reyes scheduled to be sentenced on October 19, 2017.
“The trafficking of heroin and fentanyl continues to have a grave impact on our community,” said Acting U.S. Attorney Farley. “The U.S. Attorney’s Office will continue to work with all of our law enforcement partners to target those who are distributing these deadly drugs in our state. While those suffering from addiction need treatment, those who are profiting from the distribution of opioids will be prosecuted aggressively.”
The case was investigated by the New Hampshire State Police and is being prosecuted by Special Assistant United States Attorney Karen Burzycki.
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Los Fresnos Man Heads to Prison on Child Pornography ChargeRead the Press Release
BROWNSVILLE, Texas – A 62-year-old resident of Los Fresnos has been sentenced to federal prison for possession of child pornography, announced Acting U.S. Attorney Abe Martinez. Isaac Gonzalez pleaded guilty April 4, 2017.
Today, U.S. District Judge Rolando Olvera handed Gonzalez a sentence of 78 months in federal prison. Gonzalez will also spend the rest of his life on supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender for life.
The investigation into Gonzalez began as authorities were looking into persons utilizing peer-to-peer software to exchange and view child pornography. Federal agents executed a search warrant at Gonzalez’s residence on Feb. 15, 2017, which led to the discovery of 1,650 images of child pornography on his laptop. These images contained depictions of prepubescent minors, including one video depicting the sexual abuse of a toddler.
Gonzalez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Rio Grande Valley Child Exploitation Task Force conducted the investigation.
This case, prosecuted by Assistant U.S. Attorneys Jason Corley and Ana Cano, 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."
Kansas Man Pleads Guilty to Bank RobberyRead the Press Release
KANSAS CITY, KAN. - A Kansas man pleaded guilty Wednesday to robbing a bank in Kansas City, Kan., U.S. Attorney Tom Beall said.
Andre U. Randle, 37, Kansas City, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Feb. 1, 2017, he robbed the U.S. Bank at 10959 Parallel Parkway, in Kansas City, Kan.
According to court documents, he gave a clerk a note saying, “I have 2 guns. Don’t make me use them,” before leaving the bank with stolen cash in a purple pillow case. Officers of the Kansas City, Kan., Police Department stopped his car in the 6900 block of Troop and arrested him.
Sentencing is set for Sept. 11. He faces up to 20 years in federal prison and a fine up to $250,000.
Beall commended the Kansas City, Kan., Police Department, the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Kanawha County man sentenced to federal prison for possession of stolen mailRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man was sentenced today to six months in federal prison for possessing stolen mail, announced United States Attorney Carol Casto. Jason Lee Spradling, 34, of Pinch, was also ordered to pay $4,489.32 in restitution.
Spradling admitted that he possessed a large quantity of stolen mail, and that he knew the mail in his possession had been stolen. Spradling admitted that in December 2015, he stole a box of checks from a mailbox and attempting to cash one of the checks. Spradling also admitted that in July 2015, he was found in possession of hundreds of pieces of mail stolen from the Elkview area. Law enforcement found the stolen mail in a car Spradling was driving. Spradling further admitted that he had no legal right to possess the mail, nor to cash any checks contained within the stolen mail.
The United States Postal Inspection Service and the Kanawha County Sheriff’s Office conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
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Jonesboro Man Sentenced to More Than 21 Years on Multiple Child Pornography ChargesRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, announced today that Steven Thorpe, 44, of Jonesboro, will spend more than 21 years in federal prison for advertising child pornography.
A federal grand jury indicted Thorpe on April 8, 2015, for one count of advertising child pornography and one count of possession of child pornography. On August 15, 2016, he pleaded guilty to possession of child pornography, and on February 9, 2017, he pleaded guilty to advertising child pornography.
Chief United States District Court Judge Brian S. Miller imposed the sentence of 262 months for both counts. There is no parole in the federal system. When Thorpe is released upon completion of his sentence, he will remain on supervised release for the rest of his life. Conditions of his supervised release include registering as a sex offender and having no contact with minors under the age of 18.
The investigation into Thorpe’s crimes began in June 2014, when two people brought Thorpe’s phone and computer to the Jonesboro Police Department and reported that they had seen sexually explicit photos of a minor on Thorpe’s phone. Jonesboro police obtained a search warrant, and when they searched the phone, investigators found over 20,000 images of child pornography.
The United States Secret Service then obtained a search warrant for Thorpe’s laptop computer, which contained over 1,400 images of child pornography. In addition to the photos of children being sexually abused, agents also discovered that Thorpe had accessed online chatrooms through a computer program called Gigatribe. In these chats, Thorpe advertised to other users that he had child pornography available, including “doctor/patient, dad/son, hidden cams, massage,” and “getting caught, locker/school rooms, and public videos.” Thorpe would then send other users a link to a folder containing his child pornography along with his password, “boys777.”Thorpe is still facing multiple state charges, including pending sexual assault and additional possession of child pornography charges in Craighead County.
The case was investigated by the Jonesboro Police Department and United States Secret Service, and was prosecuted by Assistant United States Attorneys Allison W. Bragg and Kristin Bryant.
Honduran Man Sentenced for Immigration OffenseRead the Press Release
Acting United States Attorney Duane A. Evans announced that MARLIN CACERES-GUERRERO, age 28, a native of Honduras, was sentenced today after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
U.S. District Court Judge Ivan L.R. Lemelle sentenced CACERES-GUERRERO to 5 months of imprisonment, followed by one year of supervised release, and a $100 special assessment fee. CACERES-GUERRERO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on February 21, 2017, CACERES-GUERRERO was found in the United States after having been previously deported from the United States on May 3, 2013.
Acting U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Harrison County woman admits to conspiring with others to distribute illegal drugsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Megan Eileen Dunigan, 29, of Mount Clare, West Virginia, was convicted today in federal court of possession and distribution of an illegal substance, Acting United States Betsy Steinfeld Jividen announced.
Dunigan pled guilty to one count of “Conspiracy to Distribute and Possess with Intent to Distribute MAM2201 and Buprenorphine.” She admitted to having conspiring with others to distribute illegal substances in Harrison County, West Virginia from April 2014 to April 2016.
Dunigan faces up to 10 years incarceration and a fine of up to $500,000. 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 Andrew R. Cogar prosecuted the case on behalf of the government. The U.S. Postal Inspection Service, The West Virginia State Police, and the Greater Harrison Drug & Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.Fort Wayne Man Sentenced to 72 Months ImprisonmentRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Stephan Davis, age 30, of Waterloo, Indiana, was sentenced before United States District Court Judge Theresa Springmann to being a felon in possession of a firearm.
Davis was sentenced to 72 months imprisonment and 1 year of supervised release.
According to documents filed in this case, on or about May 20, 2016, Davis possessed a .40 caliber firearm and eight rounds of ammunition in Kendallville, Indiana after having prior felony convictions in Dekalb County, Indiana.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Kendallville Police Department and was handled by Assistant United States Attorney Stacey R. Speith.
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Fort Thompson Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on June 26, 2017, by U.S. District Judge Roberto A. Lange.
Conrad James Medicine Crow, age 45, was sentenced to 21 months in custody, followed by 24 months of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Medicine Crow was indicted by a federal grand jury on October 12, 2016. He pled guilty on April 11, 2017.
The conviction stemmed from an incident on August 16, 2016, when Medicine Crow had been drinking alcohol. The victim had been walking on the side of the southbound lane of the highway when she saw a silver minivan approach her in the southbound lane and hit her. The van, driven by Medicine Crow, did not stop and fled the scene. As a result of the crash, the victim suffered serious bodily injury.
This case was investigated by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Medicine Crow was immediately turned over to the custody of the U.S. Marshals Service.
Former president of Streetsboro tire company indicted for fraudulently avoiding nearly $10 million in taxesRead the Press Release
The former president of a Streetsboro company was named in a 51-count indictment for allegedly filing fraudulent paperwork to avoid paying nearly $10 million in taxes and tariffs, said Acting U.S. Attorney David A. Sierleja.
Indicted are: James Pearl, 61, and Doreen Pearl, both of Mt. Pleasant, South Carolina, and Shuang “Lucia” Liu, 32, of China.
They are charged with conspiracy to defraud the United States of America, entry of goods by means of false statement and smuggling goods into the United States.
James Pearl was president of Pro-Trac Tires LLC. Doreen Pearl was an employee of the company, located at 555 Frost Road in Streetsboro. The company was in the business of importing tires from China, India and other international suppliers. The company served as a middleman between the foreign supplier and domestic retailer, according to the indictment.
Liu worked for Qingdao Au-Shine Tyre Co. (Au Shine), a tire exporting company located in China. Liu was the point of contact for Au-Shine’s foreign accounts filled orders, coordinated exportation and received wire transfers of payments, according to the indictment.
The Commerce Department’s Anti-Dumping Order, amended in 2008, established import taxes on certain Chinese tires at a rate of up to 210 percent. But certain importers and manufacturers were given exemptions or lower tax rates.
From 2009 through 2013, the Pearls and Liu submitted fraudulent and altered invoices to Customs and Border Patrol to lower the taxable duty Pro-Trac was required to pay for importing tires from Au-Shine, according to the indictment.
Specifically, the Pearls and Liu presented fraudulent invoices and physically altered invoices to make it appear the tires were being shipped from companies that had exemptions, so Pro-Trac’s duty tax rate was lowered from 210 percent to 12.9 percent, according to the indictment.
By submitting approximately 176 false entry summaries, the U.S. was deprived of more than $9.7 million in revenue, according to the indictment.
The Pearls and Liu are scheduled to be arraigned in Ohio on July 12.
The matter is being prosecuted by Assistant U.S. Attorney Duncan T. Brown following an investigation by the Department of Homeland Security – Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the United States of America’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
Former Tribal Executive Sentenced to Federal Prison for EmbezzlementRead the Press Release
United States Attorney Randolph J. Seiler announced today that a former executive board member of the Sisseton-Wahpeton Sioux Tribe was sentenced in federal court to 20 months of imprisonment.
Thomas Adams, 46, and of the Old Agency District, was also ordered to pay restitution in the amount of $151,477, and to serve three years of supervised release after serving his prison sentence.
According to court documents, beginning on or about January 20, 2011, and continuing through March 9, 2013, in the District of South Dakota and elsewhere, Thomas Adams formed an agreement with others to embezzle, steal, and knowingly convert to their own use, funds from the Old Agency District of the Sisseton Wahpeton Oyate Sioux Tribe ("Tribe"), an Indian tribal organization. Adams joined the agreement knowing its illegal purpose. The Old Agency District ("District") is a subdivision of the Tribe.
Adams, among others, were elected executive board members of the District. During the relevant time period, the District's executive board members were entitled to receive a monthly stipend for their service. From approximately January 2011 through March 2013, Adams and others stole money from the District by writing checks to themselves for payroll, stipends, assistance, travel, and other miscellaneous reasons. As part of his plea agreement, Adams stated that his co-defendants stole a total of $415,499 from the District. The Defendant received $164,477 of the stolen funds and used the funds for his own purposes.
The investigation is being conducted by the Federal Bureau of Investigation and the United States Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former New Hampshire Resident Sentenced for Failure to Register as A Sex OffenderRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that William Soltan, 34, of Suffolk County, New York, was sentenced to 12 months and one day in federal prison after pleading guilty to failing to register as a sex offender as required by the federal Sexual Offender Registration and Notification Act (SORNA).
According to documents that were filed and statements made in court, Soltan left New Hampshire sometime after July 2014 for a temporary visit to New York. At the time he left, Soltan was obligated to return to New Hampshire not later than December 30, 2014. Soltan did not return to New Hampshire, did not register in New Hampshire in 2015, and did not register in New York in 2015. Under SORNA, a person who is required to register must register in each jurisdiction where he resides, is employed or is going to school. SORNA gives an individual three days in which to register.
Soltan, who previously pleaded guilty, was also sentenced to serve five years of supervised release after he is released from prison.
The case was investigated by the United States Marshals Service with the assistance of the Manchester Police Department, the New Hampshire Department of Corrections, the New Hampshire State Police, and the Suffolk County, New York, Police Department. It was prosecuted by Assistant U.S. Attorney Donald Feith.
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Former Employee of Brentwood-Based Human Resources Company Pleads Guilty to Wire FraudRead the Press Release
Kristen Petersen Morrison, 44, pleaded guilty today to four counts of wire fraud, after being charged with defrauding customers of her former employer, Century II, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Morrison was indicted by a federal grand jury on November 30, 2016.
According to the charging document and plea agreement, Century II handles payroll and other human resource needs for small businesses in middle Tennessee. Morrison worked as a payroll specialist with Century II and set up payroll disbursements for Century II customers, including Absolute Wireless, a Nashville-based cell phone service retailer.
From March 2014 to May 2016, Morrison added several former and nonexistent employees to the Absolute Wireless payroll without the company’s knowledge or consent. She also arranged for payments to these fictitious employees to be made to check cards that Morrison set up and controlled. Morrison then used the check cards to pay for her personal expenses. During the two-year scheme, Morrison stole approximately $300,000 from Absolute Wireless.
Wire fraud carries a maximum penalty of up to 20 years in prison and a $250,000 fine. Morrison will be sentenced by United States District Judge Aleta Trauger on October 6, 2017. Her sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry C. Leventis.
Executive Director of Tribal Investment Firm Pleads Guilty to Fraud in Federal CourtRead the Press Release
United States Attorney Randolph J. Seiler announced today that a Fort Thompson, South Dakota, woman pleaded guilty to wire fraud and federal program fraud in federal court in Pierre, South Dakota.
Tally Colombe, 42, pleaded guilty before U.S. District Judge Roberto A. Lange.
Wire Fraud carries a maximum sentence of 20 years in prison, Program Fraud carries a maximum sentence of 10 years in prison. Each count of conviction also carries a possible maximum fine of $250,000, a period of supervised release of 3 years, an assessment of $100, and restitution.
According to plea documents filed with the Court, beginning on or about June 1, 2015, through and including October 1, 2016, in the District of South Dakota and elsewhere, Tally Colombe, having devised a scheme and artifice to defraud by means of false and fraudulent pretenses, representations and promises, caused to be transmitted by means of electronic wire communications in interstate commerce, writings, signs, signals, pictures and sounds for the purpose of executing such scheme and artifice to defraud.
It was part of the scheme and artifice to defraud that the defendant, while serving as the Executive Director of Hunkpati Investments, used a debit card belonging to Hunkpati Investments to make personal purchases from several businesses, all without knowledge and authorization from Hunkpati Investments.
Beginning on or about June 1, 2015, through and including October 1, 2016, Colombe, as an agent of Hunkpati Investments, which was an organization and agency that received in each of the calendar years of 2015 and 2016 benefits in excess of $10,000 under a federal program involving a grant, contract, subsidy, loan, guarantee, insurance, and other form of federal assistance, did knowingly and intentionally embezzle, steal, obtain by fraud, and otherwise without authority knowingly convert to the use of persons other than the rightful owner, and intentionally misapply property worth at least $5,000 which was owned by and was under the care, custody and control of Hunkpati Investments.
Hunkpati Investments (Hunkpati), located in Fort Thompson, South Dakota, is a Native Community Development Financial Institution established to provide financial opportunities to stimulate economic development on the Crow Creek Sioux Reservation. Hunkpati services include a savings incentive program and lending for credit builder and small business loans. Hunkpati is funded by grants from the U.S. Department of Treasury, the U.S. Department of Agriculture, the U.S. Department of Health and Human Services, the Northwest Area Foundation, and several other small foundations. In 2015, Hunkpati received in excess of $30,000 in grants from federal agencies.
Hunkpati is governed by a Board of Directors (Board). Defendant served as an agent, that is, Executive Director, of Hunkpati from May of 2015, to approximately November of 2016, and reported to the Board. Prior to becoming the Executive Director, Defendant also served on the Board as a Board Member. As Executive Director, Defendant was responsible for advising the Board on the financial status of Hunkpati as well as maintaining compliance for Hunkpati’s spending pursuant to the federal grant requirements.
The unlawful purchases, and therefore the wire transfers, were made without authorization from the Board. Defendant did not disclose the purchases to the Board. The amount of identified suspicious expenditures and embezzled funds totals at least $15,001. The amount of embezzled funds could be as high as approximately $90,912.04.
The investigation is being conducted by the Federal Bureau of Investigation and the United States Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Erie Man Pleads Guilty to Federal Gun ChargesRead the Press Release
ERIE, PA. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearm laws, Acting United States Attorney Soo C. Song announced today.
Ezra Eugene Davis, 32, pleaded guilty to three counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on October 21, 2016, Davis possessed seven firearms while released on bond awaiting trial on local gun and drug charges. Davis was also charged with the knowing possession of stolen firearms and with possession of firearms while a current user of controlled substances.
Judge Cercone scheduled sentencing for October 23, 2017 at 1:30 p.m. The law provides for a total sentence of 25 years in prison, a fine of $750.000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Millcreek Township Police Department conducted the investigation that led to the prosecution of Davis.
Erie Felon Unlawfully Possessed Seven FirearmsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
John Dominic Joseph Juliano pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Juliano unlawfully possessed a Smith & Wesson rifle, a Century Arms rifle, a Norinco rifle, a Glock pistol, a Springfield pistol, a DPMS rifle and a Maverick Arms shotgun, while being prohibited from firearm possession because he is a convicted felon.
Judge Cercone scheduled sentencing for October 23, 2017 at 12:45 p.m. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Juliano.
Eagle Butte Man Indicted on Several Assault ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Phillip Mound, age 25, was indicted on December 14, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 27, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 9 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 18, 2016, Mound unlawfully assaulted his dating partner causing her serious injuries.
The charges are merely accusations and Mound is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Mound was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
District Man Sentenced to 8 1/2 Years in Prison for Sexually Abusing 15-Year-Old GirlRead the Press Release
WASHINGTON – Urlick Evans, 41, of Washington, D.C., was sentenced today to a prison term of 102 months for sexually abusing a 15-year-old girl, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Evans pled guilty in March 2017, in the U.S. District Court for the District of Columbia, to a charge of first-degree child sexual abuse. The plea, which was contingent upon the Court’s approval, called for an agreed-upon 102-month prison term. The Honorable Reggie B. Walton accepted the plea today and sentenced Evans accordingly. Following his prison term, Evans will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a period of 10 years.
According to a statement of offense submitted during the plea proceedings, at the end of July 2015, the 15-year-old victim ran away from her residence in Baltimore. Once in Washington, D.C., she made contact with her estranged father, and stayed with him for approximately one week until she met Evans.
Evans, who was 39 at the time, asked the girl how old she was and she initially told him that she was 18. He invited her to his apartment in Southeast Washington. Once there, he sexually abused the girl. Shortly thereafter, he was contacted by members of the girl’s family and informed that she was only 15. Specifically, on Aug. 20, 2015, the girl’s parents contacted Evans to inquire about the whereabouts of their daughter. The father requested that Evans return the girl to him. Evans, however, told the parents that she no longer was living with him and that he did not know where they could find her.
After this conversation, the girl continued to live with Evans at his apartment in Washington, D.C. Also, according to the statement of offense, over the course of the next several weeks and up until Evans’s arrest on Sept. 22, 2015, he continued to sexually abuse the girl.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from MPD’s Youth Division and the FBI’s Child Exploitation Task Force. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Criminal Investigator John Marsh and Assistant U.S. Attorneys Andrea L. Hertzfeld and Lindsay J. Suttenberg, who prosecuted the matter.
District Court Enters Permanent Injunction Against Alabama Pharmacy and Individuals to Prevent Distribution of Adulterated and Misbranded Drugs and Unapproved New DrugsRead the Press Release
The U.S. District Court for the Southern District of Alabama entered a consent decree of permanent injunction against defendants Medistat RX LLC (Medistat), Mark D. Acker who served as its Chief Executive Officer, Timothy L. Fickling, who served as its Production Manager, and V. Elaine Waller, who served as its Pharmacist-in-Charge and Quality Manager, the Justice Department announced today. The injunction permanently enjoins the defendants from distributing adulterated, misbranded and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act.
The Department filed a complaint in the U.S. District Court for the Southern District of Alabama on May 23, at the request of the U.S. Food and Drug Administration (FDA), alleging that the defendants failed to adequately address insanitary conditions that resulted in contamination in sterile areas of the facility.
According to the complaint, Medistat manufactured, labeled and distributed both sterile and non-sterile drugs. Medistat’s sterile drugs included injectable vitamins and minerals, amino acids, hormones, steroids and vasodilators. The pharmacy distributed drugs to individual patients, surgery centers, and doctors’ offices throughout the United States.
In 2015, the Rhode Island Department of Health notified FDA of an outbreak of Staphylococcus aureus infections potentially linked to drugs manufactured by Medistat. FDA then conducted an inspection. FDA investigators found, from Medistat’s own documents, that the pharmacy itself identified several types of microorganisms in the air and on surfaces used for sterile processing. Yet, according to the complaint, upon identifying the microbial contamination, the defendants failed to adequately investigate or take sufficient corrective action to alleviate the insanitary conditions that resulted in the contamination in the sterile areas of the facility.
“Doctors and patients must be able to rely on the quality of drug products that are purported to be sterile,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When insanitary conditions are identified in areas where sterile drugs are made, such conditions need to be corrected. The Department of Justice will continue to work actively with FDA to ensure that compounding pharmacies comply with the law and provide safe products to patients.”
According to the complaint, FDA investigators observed a number of insanitary conditions at Medistat, including the continuation of aseptic drug production when significant microbial contamination was present in the aseptic processing areas, and the failure to use sterile wipes to clean critical surfaces in the pharmacy. As noted in the complaint, FDA observed that defendants failed to establish an adequate system for maintaining equipment used to control the aseptic conditions and failed to ensure and validate that drug product containers and closures were adequately sterilized.
The complaint alleged that a 2014 FDA inspection of Medistat also revealed insanitary conditions. For example, FDA observed the pharmacy’s failure to adequately investigate the results of environmental monitoring, which recovered numerous microorganisms, including Penicillium aurantacium and Bacillus cereus, within the aseptic processing area.
“We commend the outstanding work of the FDA and the Justice Department’s Consumer Protection Branch in bringing to light these harmful conditions at Medistat,” said Acting U.S. Attorney Steve Butler for the Southern District of Alabama. “It was shocking to learn that pharmacists in our own district would produce medicines in a contaminated environment, jeopardizing the health and safety of our citizens.”
The defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. As part of the resolution, the defendants represented that Medistat ceased operations on Sept. 1, 2015. If Medistat seeks to resume manufacturing, holding or distributing drugs, the company must comply with specific remedial measures set forth in the order entered by the Court. In addition, if the individual defendants hold a legal interest or a supervisory or management responsibility at a facility that seeks to manufacture, hold or distribute drugs, they must comply with remedial provisions in the order entered by the district court.
This matter was handled by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Jennifer Argabright of FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Alabama, visit its website at https://www.justice.gov/usao-sdal.
District Court Enters Permanent Injunction Against Alabama Pharmacy and Individuals to Prevent Distribution of Adulterated and Misbranded Drugs and Unapproved New DrugsRead the Press Release
The U.S. District Court for the Southern District of Alabama entered a consent decree of permanent injunction against defendants Medistat RX LLC (Medistat), Mark D. Acker who served as its Chief Executive Officer, Timothy L. Fickling, who served as its Production Manager, and V. Elaine Waller, who served as its Pharmacist-in-Charge and Quality Manager, the Justice Department announced today. The injunction permanently enjoins the defendants from distributing adulterated, misbranded and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act.
The Department filed a complaint in the U.S. District Court for the Southern District of Alabama on May 23, at the request of the U.S. Food and Drug Administration (FDA), alleging that the defendants failed to adequately address insanitary conditions that resulted in contamination in sterile areas of the facility.
According to the complaint, Medistat manufactured, labeled and distributed both sterile and non-sterile drugs. Medistat’s sterile drugs included injectable vitamins and minerals, amino acids, hormones, steroids and vasodilators. The pharmacy distributed drugs to individual patients, surgery centers, and doctors’ offices throughout the United States.
In 2015, the Rhode Island Department of Health notified FDA of an outbreak of Staphylococcus aureus infections potentially linked to drugs manufactured by Medistat. FDA then conducted an inspection. FDA investigators found, from Medistat’s own documents, that the pharmacy itself identified several types of microorganisms in the air and on surfaces used for sterile processing. Yet, according to the complaint, upon identifying the microbial contamination, the defendants failed to adequately investigate or take sufficient corrective action to alleviate the insanitary conditions that resulted in the contamination in the sterile areas of the facility.
“Doctors and patients must be able to rely on the quality of drug products that are purported to be sterile,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When insanitary conditions are identified in areas where sterile drugs are made, such conditions need to be corrected. The Department of Justice will continue to work actively with FDA to ensure that compounding pharmacies comply with the law and provide safe products to patients.”
According to the complaint, FDA investigators observed a number of insanitary conditions at Medistat, including the continuation of aseptic drug production when significant microbial contamination was present in the aseptic processing areas, and the failure to use sterile wipes to clean critical surfaces in the pharmacy. As noted in the complaint, FDA observed that defendants failed to establish an adequate system for maintaining equipment used to control the aseptic conditions and failed to ensure and validate that drug product containers and closures were adequately sterilized.
The complaint alleged that a 2014 FDA inspection of Medistat also revealed insanitary conditions. For example, FDA observed the pharmacy’s failure to adequately investigate the results of environmental monitoring, which recovered numerous microorganisms, including Penicillium aurantacium and Bacillus cereus, within the aseptic processing area.
“We commend the outstanding work of the FDA and the Justice Department’s Consumer Protection Branch in bringing to light these harmful conditions at Medistat,” said Acting U.S. Attorney Steve Butler for the Southern District of Alabama. “It was shocking to learn that pharmacists in our own district would produce medicines in a contaminated environment, jeopardizing the health and safety of our citizens.”
The defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. As part of the resolution, the defendants represented that Medistat ceased operations on Sept. 1, 2015. If Medistat seeks to resume manufacturing, holding or distributing drugs, the company must comply with specific remedial measures set forth in the order entered by the Court. In addition, if the individual defendants hold a legal interest or a supervisory or management responsibility at a facility that seeks to manufacture, hold or distribute drugs, they must comply with remedial provisions in the order entered by the district court.
This matter was handled by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Jennifer Argabright of FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Alabama, visit its website at https://www.justice.gov/usao-sdal.
Conneaut Lake Man Pleads Guilty to Possessing and Sharing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Conneaut Lake, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
John P. Hoffman, 54, of Conneaut Lake, Pennsylvania, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Hoffman possessed and distributed computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for October 23, 2017 at 3:00 p.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Hoffman on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation that led to the prosecution of Hoffman.