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18 August 2017
Firefighter, Two Pharmaceutical Employees Admit Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Three men today admitted defrauding New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
Michael Pepper, 45, an Atlantic City, New Jersey, firefighter from Northfield, New Jersey; Thomas Hodnett, 41, a pharmaceutical sales representative from Voorhees, New Jersey; and Steven Urbanski, 37, a pharmaceutical sales representative from Marlton, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Pepper, Hodnett, and Urbanski served as recruiters in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the informations as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
The conspirators recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Pepper, Hodnett, and Urbanski’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to other members of the conspiracy.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, Pepper, Hodnett, and Urbanski would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They would select the compounded medications that paid the most without regard to their medical necessity.
Other conspirators would then get the prescriptions signed by doctors who never saw the patients and never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the informations, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey. Pepper received approximately $113,627.54 for his role in the scheme. Hodnett received approximately $269,966.08 for his role in the scheme. Urbanski received approximately $113,668.12 for his role in the scheme.
Each defendant faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for Pepper, Hodnett, and Urbanski is scheduled for Dec. 5, 2017.
As part of their plea agreements, Pepper must forfeit $113,627.54 in criminal proceeds and pay restitution of at least $719,481.65. Hodnett agreed to forfeit $269,966.08 and pay restitution of at least $1,497,541.44. Urbanski must forfeit $113,668.12 in criminal proceeds and pay restitution of at least $752,291.94.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the guilty pleas. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel:
Pepper: Joseph A. Levin Esq., Atlantic City, New Jersey
Hodnett: James J. Leonard Jr. Esq., Atlantic City, New Jersey
Urbanski: Richard Sparaco Esq., Cherry Hill, New Jersey
Firearms Crime ReportRead the Press Release
Raymond Pargo, 37, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Roy White, 35, was indicted by a federal grand jury for possession with intent to distribute methamphetamine, felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
Andre Meadows, 37, was indicted by a federal grand jury for felon in possession of a firearm.
Mark Richardson, Jr., 19, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Demetrius Richmond was indicted by a federal grand jury for possession with intent to distribute heroin, marijuana and cocaine base; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Lywayne Scott, 34, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Byron Mischeaux, 24, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Jermayne Welch, 37, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Michael Thomas-Williams, 34, Hazelwood, MO, was indicted by a federal grand jury for possession with the intent to distribute cocaine, cocaine base, heroin and marijuana; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Marquis J. Hoffman, 32, pled guilty to one felony count of felon in possession of a firearm.
Christopher Bell, 36, pled guilty to one felony count of felon in possession of a firearm.
Malcolm Johnson, 26, pled guilty to one felony count of possession of a firearm in furtherance of a crime of violence, resulting in murder.
Michael Hodge, 27, St. Louis, pled guilty to felon in possession of a firearm.
Floyd Murray, 26, St. Louis, pled guilty to one felony count of felon in possession of a firearm and possess with the intent to distribute heroin.
Keonta C. Douglas, 19, Lebanon, IL, pled guilty to one felony count of carjacking and one felony count of possession of a firearm in furtherance
Dwayne Harris, 30, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Robert Neuman, 34, pled guilty to one felony count of felon in possession of a firearm.
Dennis Howard, 32, pled guilty to one felony count of felon in possession of a firearm.
Jacob A. Niebruegge, 19, pled guilty to one felony count of transferring a firearm, knowing that the firearm would be used in a crime of violence that is, armed robbery.
Michael T. Jones, 44, St. Louis, was sentenced to 33 months in prison for felon in possession of a firearm.
Khylon Hampton, 22, was sentenced to 155 months in prison for carjacking and brandishing a firearm in furtherance of a crime of violence.
Eddie Randolph, 35, was sentenced to 42 months in prison for felon in possession of a firearm.
Marquel Simmons, 26, St. Louis, was sentenced to 24 months in prison for felon in possession of a firearm.
Lamontae Oliver, 26, was sentenced to 60 months in prison for felon in possession of a firearm.
Kenneth Kulage, 31, St. Louis, was sentenced to 34 months in prison for felon in possession of a firearm.
Keenan McCaleb, 26, St. Louis, was sentenced to 49 months in prison for felon in possession of a firearm.
Dion T. Hampton, 33, St. Louis, was sentenced to 54 months in prison for felon in possession of a firearm.
Federal Jury Convicts California Man for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that yesterday, a federal jury convicted DAN PIZARRO, age 48, a resident of California, for his role in conspiring to distribute methamphetamine and heroin in the New Orleans area. Following a 4-day trial, the jury found PIZARRO guilty of the sole count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine and a quantity of heroin.
According to the evidence presented at trial, in June 2014, St. Bernard Parish Sheriff’s Office (SBSO) deputies investigating methamphetamine distribution in Arabi, Louisiana, arrested two men who were selling methamphetamine on West Judge Perez Drive. Through their investigation, deputies learned that their source of methamphetamine was a resident of California and that PIZARRO had introduced them to the source, thereby setting the conspiracy into motion.
Additional evidence presented at trial showed that even after leaving the New Orleans area, PIZARRO continued to direct and supervise the conspiracy. SBSO deputies coordinated with agents from the Drug Enforcement Administration (DEA) New Orleans Field Office, and between June 26th and 27th, 2014, federal agents and SBSO deputies intercepted four packages containing methamphetamine mailed through Federal Express to Arabi. In total, the four packages contained over one kilogram of methamphetamine. According to DEA laboratory analysts, the methamphetamine in all four packages had a purity level of over 99%, with one shipment testing as 100% pure methamphetamine.
PIZARRO faces a minimum sentence of ten years of imprisonment and a maximum of life imprisonment, a maximum $10,000,000 fine, and at least five years of supervised release. Sentencing before Judge Martin L.C. Feldman is scheduled for December 6, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and St. Bernard Parish Sheriff’s Office, and he thanked the Los Angeles Police Department for their assistance in this investigation. Assistant United States Attorneys Shirin Hakimzadeh and Matthew Payne were responsible for the prosecution.
Durham Man Arrested in Raleigh Sentenced to 10 Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, John Stuart Bruce, announces that today in federal court, United States District Judge Louise W. Flanagan sentenced DWIGHT CHRISTOPHER BROWN, 33, of Durham, to 120 months in prison followed by 3 years of supervised release. On February 14, 2017, BROWN was found guilty by a jury of being a Felon in Possession of a Firearm.
At trial the evidence showed that on January 19, 2016, a woman contacted the Durham Police Department and reported that her vehicle was stolen. She told officers that she previously allowed her ex-boyfriend, DWIGHT CHRISTOPHER BROWN, to use her vehicle during their relationship. On January 4, 2016, BROWN was supposed to pick her up from work; however, he did not show, and he had not returned any of her phone calls or texts.
On March 3, 2016, officers with the Raleigh Police Department, attempted to conduct a traffic stop on BROWN, who was driving the stolen vehicle. BROWN slowed and sped up several times before slowing down to almost a stop. BROWN then jumped out of the vehicle and fled the scene as the vehicle continued to roll forward until a passenger, placed the vehicle in park. While pursuing BROWN, the officer observed him carrying a handgun. During the pursuit, another officer observed BROWN unsuccessfully attempt to load a round into the chamber of the pistol. BROWN then threw the pistol next to a Waffle House and continued to flee the scene. While in pursuit, BROWN ran across the road with oncoming traffic causing the officers to run parallel to BROWN until a break in traffic allowed them to cross safely. The pursuing officer yelled at BROWN to stop, after which BROWN laid down on the sidewalk. When additional law enforcement officers arrived, they placed BROWN into custody for possession of a stolen vehicle, possession of a stolen gun, possession of a firearm by felon, and resisting arrest.
Officers then retrieved a .40 caliber handgun that was reported stolen from the perimeter of the Waffle House and next to BROWN’s shoe that he lost during the foot chase. During a search of the vehicle, officers found multiple items that belonged to BROWN.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Raleigh Police Department. Assistant United States Attorneys Peggah B. Wilson and Jacob Pugh are handling the case on behalf of the government.
Doctor & Owner of Multiple Home Health Companies Sentenced in a nearly $60 Million Medicare Fraud SchemeRead the Press Release
DALLAS – Myrna S. Parcon, a/k/a “Merna Parcon,” 62, of Dallas and Ransome N. Etindi, 57, of Waxahachie, Texas, were sentenced yesterday by U.S. District Judge Jane Boyle for their role in a nearly $60 million Medicare fraud scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
Parcon and Etindi each pleaded guilty to conspiracy to commit health care fraud. Judge Boyle sentenced Parcon to 120 months in prison and ordered her to pay $51,497,930.87 in restitution. Judge Boyle sentenced Etindi to 30 months in prison and ordered him to pay $18,309.171.21 in restitution. They are scheduled to surrender to the Bureau of Prisons on September 20, 2017.
Co-defendant Noble U. Ezukanma, 57, of Fort Worth, Texas, was convicted, following a five-day trial, in March 2017 of one count of conspiracy to commit health care fraud and six counts of health care fraud and is awaiting sentencing. Co-defendants Oliva A. Padilla, 57, of Garland, Texas and Ben P. Gaines, 55, of Plano, Texas, have pleaded guilty to their role in the scheme and are awaiting sentencing. Lita S. Dejesus, 70, of Allen, Texas, also pleaded guilty and was sentenced to 24 months in federal prison and ordered to pay $4,193,655.78 in restitution.
According to their pleas, Ezukanma, Parcon, and Dejesus owned/operated US Physician Home Visits (USPHV), a/k/a “Healthcare Liaison Professionals, Inc.” located on Viceroy Drive in Dallas. Parcon was the owner/manager and Ezukanma was a licensed medical doctor who had an ownership interest in USPHV. Both Ezukanma and Etindi provided their Medicare number to the company to use to submit Medicare claims. Dejesus served in various roles at USPHV, including overseeing Medicare billing.
Gaines formed A Good Homehealth (A Good), a/k/a “Be Good Healthcare, Inc.,” which was located in the same office as USPHV. Parcon, who owned and operated A Good, purchased the company through a “straw” buyer; both Gaines and Parcon concealed Parcon’s ownership. Parcon and Padilla formed Essence Home Health (Essence), a/k/a “Primary Angel, Inc.,” located on Midway Road in Addison, Texas. While the three companies appeared to be set up as three separate entities, the companies worked as one; the same employees often worked for all three companies and were often paid by all three companies.
According to the factual resumes for each defendant, from January 1, 2009 to approximately June 9, 2013, Ezukanma and Etindi certified 94% of the Medicare beneficiaries receiving home health services from A Good, and 65% of the Medicare beneficiaries receiving home health services from Essence. Had Medicare known of the true ownership and improper relationship between the three companies, Medicare would not have allowed these companies to enroll in the program and bill for services.
USPHV submitted billing under both Dr. Ezukanma’s and Dr. Etindi’s Medicare provider number, regardless of who actually performed the service. They billed at an alarming rate, generally billing for only the most comprehensive physician exam, and always adding a prolonged service code. USPHV submitted claims to Medicare for physician visits of 90 minutes or more, when most visits took only 15 to 20 minutes. Most all of USPHV patients came from home health companies soliciting certifications and recertifications for home health. More than 97% of USPHV Medicare patients received home health care, whether they needed it or not. The false certifications caused Medicare to pay more than $40 million for fraudulent home health services.
The case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, the FBI, the and the Texas Attorney General’s Medicaid Fraud Control Unit and were brought as part of the Medicare Fraud Strike.
Assistant U.S. Attorney Katherine Pfeifle prosecuted.
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District Woman Sentenced to Seven Years in Prison for Injuring Pedestrians and Ramming into CarsRead the Press Release
WASHINGTON – Donnie Bean, 49, of Washington, D.C., was sentenced today to seven years in prison on charges stemming from incidents over a 90-minute period in which she struck numerous cars and pedestrians, including a police vehicle, while driving under the influence of alcohol and cannabinoids in downtown Washington, U.S. Attorney Channing D. Phillips announced.
Under what is known as the Alford doctrine, Bean pled guilty in May 2017 in the Superior Court of the District of Columbia to three counts of assault with a dangerous weapon and one count of felony assault on a police officer. Under an Alford plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction.
The plea, which was subject to the Court’s approval, called for an agreed-upon sentence of five to seven years in prison. The Honorable Danya A. Dayson accepted the plea today and sentenced Bean accordingly. Following her prison term, Bean will be placed on three years of supervised release.
The plea involved a series of incidents that took place on Saturday, May 7, 2016, from approximately 5:45 p.m. until 6:30 p.m. According to the government’s evidence, Bean was under the influence of alcohol and cannabinoids, as well as suffering from unmedicated mental health conditions, that day when she drove a black Honda Civic in downtown Washington.
At approximately 6 p.m., according to the government’s evidence, she ran a red light at the intersection of Seventh Street and Florida Avenue NW. She struck a bicyclist and continued through the intersection, then striking and knocking to the ground a 9-year-old girl who was crossing the street with her family. The child was taken to a hospital with minor injuries.
At about 6:10 p.m., Bean nearly hit two other people who were in a crosswalk at Fifth and H Streets NW. After one of the pedestrians yelled at her, Bean replied with words to the effect of “You wanna make it real?” and made a U-turn and then drove back at them. They escaped harm by dodging behind a traffic signal pole.
Shortly thereafter, according to the government’s evidence, Bean rear-ended a car at Fifth Street and Massachusetts Avenue NW. The driver of that car got out of his vehicle, tapped on Bean’s window, and told her not to leave. Bean backed up and accelerated toward him, hitting him and flipping him over her car into the middle of Massachusetts Avenue NW. The man was treated on the scene by paramedics and later went to the hospital with minor injuries.
Bean continued to flee. Officers with the Metropolitan Police Department (MPD) saw Bean driving erratically and attempted to stop her. An officer, who was in full uniform and driving a marked police car, saw her in the 1200 block of V Street NW and attempted to stop her. She tried to leave the scene, rammed her vehicle into the police car, and fled westbound into the 1300 block of V Street NW. The officer pulled alongside Bean’s car, trying to stop her, and she rammed her car into the side of his police vehicle several times. He eventually was able to stop Bean. Several officers removed her from the vehicle and placed her in handcuffs.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Jennifer Clark and Diana Lim, and Assistant U.S. Attorneys Natasha Smalky, C.B. Buente, and Vanessa Goodwin, who investigated and prosecuted the case.
Convicted Domestic Abuser Charged for Illegal Possession of Firearms and AmmunitionRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned an indictment charging Timmy Lloyd Inga, 55, of Anchorage, with being a prohibited person in possession of a firearm and ammunition. Inga was previously convicted of a misdemeanor domestic assault charge in 2015 and he is therefore prohibited under federal law from possessing a firearm or ammunition.
According to the indictment, on or about June 28, 2017, Inga was found to be in possession of two SKS type 7.62x39mm semi-automatic rifles as well as ammunition. If convicted, Inga faces a statutory maximum of ten years in prison.
According to the FBI, there were 42 domestic violence homicides in Alaska from 2003 to 2012. Of those homicides, 50 percent were committed with guns. Of the 103 female homicide victims in Alaska from 2003 to 2012, 27 were killed as a result of a domestic violence incident. Data gathered from the FBI’s Supplementary Homicide Report for 2014 indicates that 91 percent of female homicide victims from that year knew their assailant. Of those women, 40 percent were wives, girlfriends, ex-wives or common-law wives.
This indictment was the result of a close partnership between the Municipal Prosecutor’s Office, the U.S. Attorney’s Office, the Anchorage Police Department (APD), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). This case is being handled by Special Assistant U.S. Attorney James Stinson, who is an Anchorage municipal prosecutor. Since 2007, the Municipality of Anchorage has assigned prosecutors to the U.S. Attorney’s Office to work on cases that have direct impact on the safety of Anchorage residents, such as drugs, guns, and violent crime. The Municipal Prosecutor’s Office handled Inga’s underlying domestic violence case, and, upon learning of the firearm case, forwarded it to the U.S. Attorney’s Office for prosecution.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Controller of Minnesota Metal Stamping Company Pleads Guilty to Million Dollar Embezzlement SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of JOHN BURWOOD ROBINSON, 50, for stealing more than $1.1 million from his employer. ROBINSON was charged by felony information July 26, 2017, with one count of mail fraud and one count of filing a false tax return. He pleaded guilty yesterday before Judge Paul A. Magnuson in U.S. District Court in Saint Paul, Minn. A sentencing date has not yet been determined.
According to the defendant’s guilty plea, from 1991 through 2016, ROBINSON was employed by North Central Stamping & Manufacturing, Inc. (“NCSM”), and in 2003, he became NCSM’s controller. As the controller, ROBINSON managed NCSM’s bank accounts, bookkeeping records, and financial reports.
According to the defendant’s guilty plea, ROBINSON devised a fraud scheme to steal money that was paid to NCSM by its clients. ROBINSON opened a bank account in the name of NCSM without the company’s knowledge or authorization. ROBINSON then deposited payments made by NCSM’s customers into the fraudulent bank account he had set up. ROBINSON used the money to pay for his own personal expenses, to fund his hobby of buying and restoring automobiles and automobile parts, and to pay for a storage facility to store the automobiles and parts. In total, ROBINSON stole approximately $1,163,366.97 from NCSM.
According to the defendant’s guilty plea, in addition to his theft, ROBINSON admitted to filing false tax returns by understating his total income for the calendar years 2009 through 2015, in order to lower his tax liability and to avoid detection of his fraud scheme. In total, ROBINSON caused a total tax loss of $291,757.31.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, the Minnesota Department of Commerce Fraud Bureau, and the Blaine Police Department.
This case is being prosecuted by Assistant United States Attorney Surya Saxena.
Defendant Information:
JOHN BURWOOD ROBINSON, 50
Crystal, Minn.
Convicted:
- Mail fraud, 1 count
- Filing a false tax return, 1 count
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Clinton Man Sentenced to 240 Months for Trafficking in “Ice” MethamphetamineRead the Press Release
DAVENPORT, IA – On August 17, 2017, John Allen Abbott, 50, of Clinton, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 240 months in prison for conspiracy to manufacture, distribute, and possess with intent to distribute 50 grams and more of actual methamphetamine and 500 grams and more of mixtures containing methamphetamine, announced United States Attorney Kevin E. VanderSchel. Abbott was ordered to serve five years of supervised release following his imprisonment and pay $100 to the Crime Victims’ Fund.
On May 25, 2016, Abbott was arrested after he and others arranged to have approximately two pounds of highly pure “ice” methamphetamine transported to Iowa from Nevada. On October 26, 2016, Abbott pleaded guilty and admitted that he and others traveled to Las Vegas, Nevada, on multiple occasions to obtain highly pure “ice” methamphetamine for distribution.
The case was investigated by U.S. Drug Enforcement Administration and Iowa Division of Narcotics Enforcement with assistance from Clinton Police Department, Clinton County Sheriff’s Office, Rock Island County Sheriff’s Office, and Camanche (Iowa) Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Cheektowaga Man Pleads Guilty to Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Raymond Crum, 63, of Cheektowaga, NY, pleaded guilty to possession and receipt of child pornography before U.S. District Judge Lawrence J. Vilardo. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant victimized three underage females, a 12-year-old and two 15-year-olds, that he met online. Crum also communicated with the victims via text and telephone. The defendant and the victims engaged in sexually explicit communications and entered into a dominant/submissive relationship in which Crum was the dominant figure. During their communications, the victims sent the defendant sexually explicit images. Crum was aware that the victim were minors at the time he received the images.
On August 5, 2015, a search warrant was executed at the defendant’s residence in Buffalo. Officers seized two computers and a tablet. A forensic examination revealed child pornographic images and videos of the three minor victims and contained communications between the defendant and the victims. In total, Crum possessed approximately 97 images and 34 videos of child pornography.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in- Charge Kevin Kelly and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda. Assistance was also provided by the Bardstown, Kentucky Police Department.
Sentencing is scheduled for December 6, 2017, at 10:00 a.m. before Judge Vilardo.
Cass County Captain Honored for Leadership, Community ServiceRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that Capt. Denise Davidson of the Cass County, Mo., Sheriff’s Department has received the 2017 Enoch B. Morelock Award.
The Enoch B. Morelock Award is an annual recognition of outstanding moral character, service to law enforcement and service to the community. Davidson was honored on Thursday, Aug. 17, 2017, during the 15th Annual LECC Training Seminar in Springfield, Mo. The prestigious law enforcement award, presented annually by the U.S. Attorney’s Office Law Enforcement Coordinating Committee, is named in honor of Sullivan County Sheriff Enoch B. Morelock, who was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847.
Davidson has 29 years of law enforcement experience, 27 with her current agency. She was the first woman hired to work the road for her agency, noted Larson, and has been a mentor and inspiration to other women in law enforcement inside and out of her agency.
Davidson is a respected member and supervisor in her agency and the community. She has followed her mother’s example working with and supporting victims of domestic and sexual abuse at the women’s facility in her area, serving on the board for several years. She has served on the committee for Relay for Life, most recently as vice chair and chair. During her four-year leadership, they raised over $350,000. She has been an avid supporter and served on numerous committees within her school district.
Davidson has always had a passion for working with victims. As a young deputy, she was called in to assist with the interview of an abducted and sexually abused 19-year-old woman who had escaped her abusers. In 1990, new techniques of interviewing and dealing with victims of sexual assault were unfolding, and Davidson took the initiative to learn these techniques. The victim said of Davidson’s involvement: “The compassion and professionalism showed to me changed my life. The most important words that have ever been spoken to me were uttered by (Davis): ‘I believe you, this is not your fault.’ She allowed me to find justice, to heal and to work as a victim’s advocate to help future victims. Because of her, I was truly free to move out of victimization and into being a survivor. She’s a life changer.”
Enoch B. Morelock Award
Sullivan County Sheriff Enoch B. Morelock was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847. He was appointed the first sheriff of Sullivan County, Mo., in 1845. He was in office a little over two years, but he was known to be an honorable, hardworking man intent on protecting the residents of his community. Sheriff Morelock was shot and killed during a court‑ordered sale of the accused=s property. The accused killer, Patrick McIntry, was charged with 1st Degree Murder but was later acquitted. Within a year Mr. McIntry was found shot to death on the banks of a local river.
The annual Enoch B. Morelock Award recognizes individuals with outstanding moral character, service to law enforcement and to the community outside of law enforcement. Recipients may include officers from local police departments, sheriffs= offices, state agencies, or federal agencies as well as investigators from prosecutors= offices.
Career Bank Robber Sentenced to 151 Months in Federal PrisonRead the Press Release
KALAMAZOO, MICHIGAN — U.S. District Judge Paul L. Maloney sentenced Edward Lucas, 37, of South Haven, Michigan, to 151 months in federal prison, Acting U.S. Attorney Andrew Birge announced today. Judge Maloney also ordered Lucas to serve three years of supervised release following his release from prison and pay a special assessment of $100.
On August 18, 2016, Edward Lucas robbed the Independent Bank of Sand Lake, Michigan. Lucas handed a manila envelope to a teller with these words on it: "This is a Robbery. 100s, 50s, 20s. No die packs." The teller gave Lucas $5,550, and he fled in a silver Chevy Impala. Twenty minutes later, a Kent County Sheriff’s Officer observed Lucas in a vehicle matching the description from the robbery. The officer attempted to stop the Impala, but Lucas led the officer on a high-speed chase, with speeds exceeding 90 mph. During the chase, Lucas ran head-on into an oncoming vehicle, which caused his vehicle to flip and roll several times. Responding officers pulled Lucas from the burning vehicle. Officers extinguished the fire and in the vehicle found the demand note and $5,550 in cash. Lucas previously was convicted of committing two bank robberies in 1999.
Judge Maloney noted that Lucas seriously risked the lives of others in fleeing from the robbery. Judge Maloney also noted Lucas had a high risk of returning to bank robbery someday, given that he had two prior bank robbery convictions in Michigan state courts.
The Kent County Sheriff’s Office, Michigan State Police, and Federal Bureau of Investigation jointly investigated Lucas’s case. Assistant U.S. Attorney Davin M. Reust prosecuted it.
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Another Albuquerque Resident Pleads Guilty to Federal Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 71 of the 104 defendants charged as the result of this investigation have entered guilty pleas and 34 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Today, Albuquerque resident, Alex Villarreal, 35, who was charged as the result of the investigation pled guilty in federal court to violating the federal firearms and drug trafficking laws.
Villarreal was arrested in July 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on May 23, 2016, and distributing methamphetamine on May 25, 2016. At the time, Villarreal was prohibited from possessing firearms or ammunition because he was previously convicted on larceny, conspiracy to commit larceny, possession of marijuana with intent to distribute, and aggravated assault. During today’s change of plea hearing, Villarreal pled guilty to the indictment and admitted selling four firearms to an undercover law enforcement agent on May 23, 2016, and 115 grams of methamphetamine to the agent on May 25, 2016. Villarreal acknowledged knowing that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon. Villarreal remains in custody pending a sentencing hearing, which has yet to be scheduled.
Thirty-three of the defendants who were charged as a result of the ATF investigation have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. The case against Villarreal is being prosecuted by Assistant U.S. Attorney Presiliano Torrez.
Alton Man Pleads Guilty to Possession with Intent to Distribute Cocaine and Crack CocaineRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Eric J. Hightower, 36, of Alton, IL, pleaded guilty on August 15, 2017 to a two-count indictment charging possession with intent to distribute crack cocaine in count one and possession with intent to distribute cocaine in count two.
On count one, Hightower faces up to 40 years of imprisonment and/or fine up to $5,000,000, four years of supervised release, and a $100 special assessment. On count two, Hightower faces up to 20 years of imprisonment and/or a fine up to $1,000,000, three years of supervised release, and a $100 special assessment. Sentencing is scheduled for December 15, 2017.
On August 20, September 5, and December 5, 2016, the Alton Police Department used a confidential informant to purchase user quantities of crack cocaine and cocaine from Hightower, at his residence.
On December 6, 2016, the Alton Police Department obtained a search warrant to search Hightower’s residence. Police seized 126 grams of cocaine and 58 grams of cocaine base, commonly called "crack." Hightower admitted the drugs found by the Alton Police Department were his and did not belong to anyone else. Hightower also admitted that the drugs found in his home were intended for distribution.
Albuquerque Woman Pleads Guilty to Federal Fraud, Identity Theft and Theft of Mail ChargesRead the Press Release
ALBUQUERQUE – Katie Carrillo, 26, of Albuquerque, N.M., pled guilty today in federal court to conspiracy, fraud, identify theft and theft of mail charges.
Carrillo and co-defendant, Ralph Eastman, 48, also of Albuquerque, were charged in a 16-count indictment on Aug. 23, 2016, with conspiracy, ten counts of bank fraud, three counts of aggravated identity theft, and two counts of theft of mail. According to the indictment, the defendants committed the offenses from Dec. 2015 through April 2016, in Bernalillo County, N.M., by stealing mail and packages from cluster mailboxes located in apartment complexes. The mail stolen included checkbooks, checks, ATM cards, PIN numbers and personal identifiers of victims, which the defendants allegedly used to commit further crimes.
During today’s proceedings, Carrillo pled guilty to conspiracy, two counts of bank fraud, two counts of aggravated identity theft and two counts of theft or receipt of stolen mail. Carrillo entered the guilty plea without the benefit of a plea agreement. At sentencing, Carrillo faces a maximum penalty of five years of imprisonment on the conspiracy and theft of mail charges, and a maximum penalty of 30 years on the bank fraud charges. She also faces a mandatory term of two years of imprisonment on the aggravated identity theft charge, which must be served consecutive to any other sentence imposed.
On Aug. 2, 2017, Eastman pled guilty to the charges against him in the indictment, namely, conspiracy, eight counts of bank fraud, and two counts of theft of mail. Eastman also pled guilty to a felony information charging him with aggravated identify theft. In entering the guilty plea, Eastman admitted that from Dec. 2015 through April 2016, he conspired with others to steal mail and packages for the purpose of obtaining financial information and forms of identification. Eastman also admitted that he and others altered checks and used them at local businesses in exchange for goods, services and online transactions. In addition, Eastman admitted that he and others used stolen identifications and personal information to facilitate fraudulent transactions. In his plea agreement, Eastman also acknowledged that he and others stole mail and packages from authorized depositories for the U.S. Postal Service through mailboxes located at an Albuquerque apartment complex on March 9, 2016 and March 12, 2016. Under the terms of his plea agreement, Eastman will be sentenced to 36 months and one day in prison followed by a term of supervised release to be determined by the court.
Sentencing hearings for Carrillo and Eastman have yet to be scheduled.
The U.S. Postal Service, the Albuquerque Police Department and the Sandoval County Sheriff’s Office investigated this case, which is being prosecuted by Assistant U.S. Attorneys Nicholas Jon Ganjei and Paul Mysliwiec.
3rd “Fast Cash Tax” Employee Pleads Guilty to Conspiring to Defraud IRSRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ashley Walker, 33, of Rochester, NY, pleaded guilty to conspiring to defraud the Internal Revenue Service, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Jason Jimenez owned an income tax return preparation business known as Fast Cash Tax. Jimenez hired Walker and trained her to prepare false tax returns. From January 2012 to April 2014, when Walker withdrew from the conspiracy, Walker and other employees of Fast Cash Tax prepared false tax returns on behalf of numerous clients. The tax returns were falsified to increase the amount of the Earned Income Tax Credit claimed, which yielded larger refunds for the clients than they were entitled to receive. During the period of Walker’s participation, the conspiracy netted approximately $95,180 in fraudulently obtained refunds. Jason Jimenez has been convicted and is awaiting sentencing.
The plea is the result of an investigation by Special Agents with the Internal Revenue Service, under the direction of Special Agent-in-Charge James D. Robnett.
Sentencing is scheduled for December 11, 2017, at 2:00 p.m. before Judge Wolford.
17 August 2017
Wooster woman indicted for having methamphetamine and a firearmRead the Press Release
A federal grand jury returned an indictment charging Samantha Foster, 30, of Wooster, with conspiracy to possess and distribute methamphetamine and possession of ammunition by a prohibited person.
Foster was arrested on two separate occasions, first by the Ohio State Patrol and then by Wayne County Sheriff’s Office for possession of methamphetamine, drug paraphernalia, and marijuana. Foster was also in possession of ammunition to a rifle on her second arrest.
The investigations were conducted by the Drug Enforcement Administration, the Medway Drug Enforcement Administration, the Ohio State Patrol and the Wayne County Sheriff’s Office.
If convicted, 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 matter is being prosecuted by Assistant United States Attorney Teresa L. Riley.
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.
Wilson City Drug Trafficker Federally ChargedRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, before United States Magistrate Judge James E. Gates, SHELTON JAMAAL JONES, of Wilson, North Carolina, was charged in a federal Criminal Complaint with one count of possession with intent to distribute heroin.
This investigation is part of the Strategic Heroin Initiative, initiated by the United States Attorney’s Office for the Eastern District of North Carolina in partnership with the Department of Justice's Organized Crime and Drug Enforcement Task Force (OCDETF).
The charge and allegations contained in the Criminal Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the DEA Raleigh Resident Office and the Wilson Police Department.
White Plains Press Conference TodayRead the Press Release
There will be a press conference today in White Plains to announce federal criminal charges against 31 members and associates of two rival street gangs in Poughkeepsie. The charges include the murders of Caval Haylett in March 2016 and Daquell LeBlanc in December 2012, as well as racketeering, racketeering conspiracy, attempted murder, narcotics, and firearms offenses. Relevant charging documents are attached.
WHO: Joon H. Kim, Acting United States Attorney for the Southern District of New York
William F. Sweeney, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation
William V. Grady, Dutchess County District Attorney
Thomas Pape, Chief of the City of Poughkeepsie Police Department
WHAT: Press Conference
WHEN: Thursday, August 17, 2017 at 12:00 p.m.
WHERE: U.S. Attorney’s Office, Southern District of New York, White Plains Division
300 Quarropas Street
Third Floor Library
White Plains, NY
CONTACT: James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
NOTE: Please silence all cell phones, PDAs, and pagers before start of press conference.
Union Man Sentenced to 15 Years for Illegal Possession of FirearmRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Dennis Earl Byrd, age 35, of Union, South Carolina, was sentenced to 15 years imprisonment, followed by 5 years of supervised release, after pleading guilty to being a felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g). United States District Judge Bruce Howe Hendricks, of Greenville, sentenced Byrd on August 16, 2017.
At an earlier guilty plea hearing, Assistant U. S. Attorney Jeanne Howard, established that on August 25, 2015, Byrd was arrested after an altercation with Union Police Officers while they were responding to a disturbance call. Byrd was found in possession of a loaded .32 caliber revolver. Because of his prior criminal history including three prior convictions for distribution of crack cocaine and a conviction for lynching, 2nd degree, Byrd is considered an armed career criminal and subject to a statutory mandatory minimum sentence of 15 years.
The case was investigated by agents of the FBI Safe Streets Task Force, Union Police Department, and the Union County Sheriff’s Office. Assistant United States Attorney Jeanne Howard of the Greenville office handled the case.
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Two Sentenced in Stolen Identity Theft and Money Laundering SchemeRead the Press Release
DALLAS — Latonya Lanette Carson, 43, of Dallas, Texas and Smith Olsola Akin, 34, of Plano, Texas were sentenced this afternoon for their role in a scheme to steal personal identifying information, use it to fraudulently obtain income tax refunds, and then launder those funds, announced U.S. Attorney John Parker of the Northern District of Texas.
Following a four-day trial in October 2016 before Chief U.S. District Judge Barbara M. G. Lynn, a federal jury convicted Carson of one count of conspiracy to commit theft of public funds, access device fraud and wire fraud; three counts of aggravated identity theft; one count of conspiracy to commit money laundering; four counts of money laundering; and four counts of wire fraud. Judge Lynn sentenced Carson to 120 months in federal prison.
Akin pleaded guilty to one count of conspiracy to commit money laundering in May 2016. Judge Lynn sentenced Akin to 135 months in federal prison.
Three additional defendants were charged in the scheme. Segun Edomwonyi, a/k/a “Benny O. Prince,” and Titalayo Idowu Olukoya remain fugitives. Charges were dismissed against Ricardo Garth Solomon.
According to evidence presented at Carson’s trial, beginning in 2013, Carson and Akin, along with other coconspirators, were involved in a scheme in which they filed false tax returns using stolen identities, some of which belonged to incarcerated individuals. The coconspirators converted the tax refunds from debit/Green Dot cards, using shell company bank accounts, into cash and cashier’s checks used to purchase vehicles that they then shipped to Nigeria.
Between May 2013 and May 2014, the defendants and their conspirators paid $1,184,950 from these accounts to purchase used cars from wholesale dealer auctions in Dallas County, and between January 2012 and January 2015, the defendants and their conspirators exported approximately 279 used cars to Nigeria.
The FBI, IRS Criminal Investigation, and U.S Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. The case was prosecuted by Assistant U.S. Attorneys Christopher Stokes and Camille Sparks.
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Two Men Plead Guilty in $25 Million Healthcare Fraud Conspiracy Targeting New Jersey Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Two men today admitted defrauding New Jersey state health benefits programs and other insurers out of $25 million by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
Matthew Tedesco, 42, a pharmaceutical sales representative from Linwood, New Jersey, and Robert Bessey, 43, of Philadelphia, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them with conspiracy to commit health care fraud.
“Using a network of recruiters, doctors, and state and local government employees, the defendants defrauded the state of New Jersey and other health insurers out of millions of dollars by getting reimbursed for phony prescriptions on expensive and medically unnecessary compounded medications,” Acting U.S. Attorney Fitzpatrick said. “This conduct, which fraudulently exploited state health benefits programs and left New Jersey taxpayers on the hook for millions in losses, is especially brazen in an era when health insurance is a constant concern for many Americans.”
“While many New Jersey residents were hard at work trying to pay for adequate healthcare insurance coverage for their families, these two individuals were illegally bilking our system for millions,” said Attorney General Porrino. “Law enforcement partners across the state are attacking fraud on all fronts, prosecuting those who steal while honest citizens struggle. I want to thank the United States Attorney's Office for the District of New Jersey, Acting U.S. Attorney Fitzpatrick and all of our federal partners for unraveling and successfully prosecuting this complicated scheme.”
“These types of schemes and kickback arrangements cripple the healthcare industry and steal money from hardworking taxpayers by driving up the price of insurance,” Special Agent in Charge Timothy Gallagher of the FBI Newark Division said. “The FBI in conjunction with our federal and local law enforcement partners will continue to investigate allegations of fraud that undermine the integrity of our health care system.”
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Tedesco, a leader in the conspiracy, Bessey, a recruiter in the conspiracy, and others persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that an entity referred to in the informations as the “Pharmacy Benefits Administrator” would reimburse pharmacies thousands of dollars for a one-month supply of certain prescription compounded medications, including pain, scar, antifungal, and libido creams, as well as over $10,000 per month for certain vitamin combinations.
The conspirators also learned that the Pharmacy Benefits Administrator managed the prescription drug benefit for some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers. The Pharmacy Benefits Administrator provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
The conspirators recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Tedesco and Bessey’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to other members of the conspiracy.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, Tedesco, Bessey, and others would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They would select the compounded medications that paid the most and order 12 months of refills without regard to their medical necessity.
Tedesco and others had prescriptions signed by doctors who never saw the patients and never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator. Tedesco and others gave money and other benefits to doctors who signed the prescriptions and individuals who agreed to receive the medication.
According to the informations, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey. Over $25 million of that was for prescriptions arranged by Tedesco and the conspirators working for him. Tedesco admitted receiving approximately $11,166,844.20 for submitting those fraudulent claims. He paid some of that money to the conspirators who worked for him. Bessey received approximately $485,540.09 for his role in the scheme.
“The U.S. Department of Labor Office of Inspector General is committed to combating illegal prescription drug schemes, like compounded medication fraud, particularly when they victimize programs administered by the Department of Labor. We will continue to work with our colleagues in other federal and state law enforcement agencies to aggressively investigate allegations of this nature,” said Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor, Office of Inspector General.
“Healthcare programs are in place to provide the American taxpayer with valuable benefits, not for individuals like Mr. Tedesco and Mr. Bessey to exploit and pilfer in order to line their own pockets,” stated Jonathan D. Larsen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office.
As part of his plea agreement, Tedesco must forfeit $11,166,844.20 in criminal proceeds and pay restitution of at least $28,773,906.97. Bessey agreed to forfeit $485,540.09 and pay restitution of at least $2,693,192.63.
Each defendant faces a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss caused by the offense. Sentencing for both defendants is set for Dec. 4, 2017.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gallagher in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Larsen in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Mikulka, with the investigation leading to the guilty pleas. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel:
Matthew Tedesco: Michael Elliott Esq., Dallas, Texas
Robert Bessey: Brian J. McMonagle Esq., Philadelphia
Two Men Indicted for Growing Marijuana on Public Land in Tehama CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Gabriel Sanchez-Madris, 41, and Mark Espinoza, 26, charging them with manufacturing marijuana and conspiring to do the same, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sanchez-Madris and Espinoza were arrested by law enforcement on August 1, 2017, following a search of a marijuana-cultivation site in the Cub Creek area of Lassen National Forest in Tehama County. The site contained approximately 2,640 marijuana plants.
This case is the product of an investigation by the United States Forest Service, the Tehama County Sheriff’s Office, and the California Department of Fish and Wildlife.
If convicted of the marijuana charges, Sanchez-Madris and Espinoza both face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations; the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two Men Charged with Growing Marijuana on Public LandsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Uriel Madrigal-Perez, 23, of Bakersfield, and Silviano Madrigal-Herrera, 27, of Perris, charging them with cultivation of marijuana and conspiring to cultivate marijuana, U.S. Attorney Phillip A. Talbert announced.
According to court documents, both men were arrested in the early morning hours of August 4, 2017, as they left an area that was used to drop off supplies and personnel for a remote clandestine marijuana grow in the in the Upper Kern Canyon area of Sequoia National Forest in Tulare County. The grow was found to contain in excess of 1,000 marijuana plants.
This case is the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, both defendants faces a maximum statutory penalty of a minimum of 10 years to life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Illegal Aliens Head to Prison for Trafficking MethRead the Press Release
McALLEN, Texas – Two illegal aliens who resided in Texas have been ordered to federal prison following their convictions of possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Mexican national Johnathan Ricardo Alvarez, 24, and El Salvadorian national Melvin Noel Vasquez, 33, who resided in Mission and Houston, respectively, pleaded guilty May 31, 2017.
Today, U.S. District Judge Micaela Alvarez ordered Alvarez to serve a 200-month sentence, while Vasquez received a 147-month term of imprisonment. At the hearing, additional testimony was presented establishing that the methamphetamine was imported from Mexico in a liquid form and converted into crystalized methamphetamine at an apartment in Harris County for further distribution. In handing down the sentence, Judge Alvarez noted the defendants had a choice not to involve themselves in drug trafficking but chose to anyway without consideration of the harm to the community. Not U.S. citizens, both are expected to face deportation proceedings following release from prison.
Co-defendant Oscar Diaz-Pineda, 27, a Mexican national who resided in Houston, also pleaded guilty May 31, 2017, and is set for sentencing Sept. 28, 2017.
At the time of his plea, Alvarez admitted to brokering a drug transaction with an undercover agent via telephone on Dec. 7, 2016. Two days later, Vasquez and Diaz-Pineda met with the undercover agent in Houston to deliver five kilograms of methamphetamine on behalf of Alvarez. Agents arrested Vasquez and Diaz-Pineda that same day and seized the narcotics. Alvarez was subsequently arrested on April 16, 2017, in South Texas.
All three have been and will remain in custody.
The Drug Enforcement Administration conducted the investigation along with task force officers from the Harris County Sheriff’s Office, police departments in Humble and Missouri City and the Texas Department of Public Safety. Assistant U.S. Attorney Juan F. Alanis is prosecuting the case.
Two Detroit Men Sentenced for Robbing Springfield Jewelry StoreRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two Detroit, Mich., men were sentenced in federal court today for robbing a Springfield, Mo., jewelry store.
Justin B. Anderson, 33, and Mark Anthone Pitts, 32, both of Detroit, were sentenced in separate appearances before U.S. District Judge Beth Phillips. Anderson and Pitts were each sentenced to five years in federal prison without parole. The court also ordered them to pay $78,374, for which they are jointly and severally liable.
Anderson and Pitts each pleaded guilty to robbing Maxon’s Diamond Merchants, 2622 S. Glenstone Ave., Springfield, on Sept. 1, 2016.
An unknown African-American male was buzzed through the secured front door of the jewelry store. When the male entered the store, he refused to close the front door. Employees approached the male, telling him to close the door. When the individual refused to shut the door, the employees attempted to push him out of the store. The male then physically shoved an employee as he kept the front door open.
Anderson and Pitts then entered the store. They pulled out small sledgehammers, causing employees to retreat from the front of the store out of fear of being harmed. Anderson and Pitts used the sledgehammers to break the glass counters and display cases that contained Rolex watches. Anderson and Pitts then grabbed several Rolex watches and fled from the store. Officers later determined that 11 Rolex watches, valued at a total of $118,000, were stolen in the robbery.
Cell phone video from a store employee showed the getaway car – a 2000 Dodge Stratus that had been stolen from a local Target department store earlier that day – waiting for the three men. Anderson and Pitts, however, failed to escape in the getaway car, which left the scene without them. Pitts was arrested after store employees who followed him took police officers to his location.
Pitts told officers that he did not specifically threaten an employee of Maxon’s Diamond Merchants, but if they had actively resisted the robbery, he would have used his sledgehammer to physically assault the employees.
This case was prosecuted by Assistant U.S. Attorneys Patrick Carney and Nhan D. Nguyen. It was investigated by the FBI and the Springfield, Mo., Police Department.
Texas Woman Charged with Interstate Travel for the Purpose of Engaging in Illicit Sexual Conduct with a Fifteen-Year-Old MinorRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MARTHA OJEDA, age 41, of Pflugerville, Texas, was charged in a one-count Bill of Information with interstate travel with intent to engage in illicit sexual conduct.
According to the Bill of Information, in early April 2017, OJEDA travelled from Franklinton, Louisiana, to the State of Texas by commercial bus and automobile for the purposes of engaging in sexual conduct with a fifteen-year-old minor.
If convicted, OJEDA faces a maximum term of imprisonment of not more than thirty (30) years followed by between five (5) years and a lifetime of supervised release, and a $250,000 fine. OJEDA may also be required to register as a sex offender.
Acting United States Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Terre Haute man sentenced in federal court on firearm chargeRead the Press Release
Extensive criminal history including more than five felony convictions
PRESS RELEASE
Terre Haute – United States Attorney Josh J. Minkler announced today that a Terre Haute man was sentenced in federal court for illegally possessing a firearm. Andre Jackson, 57, Terre Haute, was sentenced to 210 months (over 17 years) imprisonment by U.S. District Judge William T. Lawrence.
“Protecting our neighborhoods from gun violence is one of the top priorities of my office,” said Minkler. “There is no tolerance for this type of violence and those who choose to violate our laws will be held accountable.”
On May 2, 2015, officers from the Terre Haute Police Department responded to a call of shots fired near Liberty Avenue and North 21st Street. Law enforcement officers arrived in the area and encountered an individual who had been shot in the leg. Other officers encountered Jackson. In a statement to police, Jackson stated he had been in an argument with the man and shot at him with his shotgun to prevent him from entering Jackson’s house. Officers located several spent shells in the yard, however, and they seized a .12-gauge shotgun in a trashcan adjacent to Jackson’s house.
Jackson is not legally permitted to own a firearm because he has more than five felony convictions, including convictions for crimes of violence, and is considered an armed career criminal under federal law. His convictions include residential burglary, two robberies, unlawful use of a weapon, and aggravated vehicular hijacking, all of which were from Cook County, Illinois. He was also convicted of strong-armed robbery in Vigo County for a 2010 incident, and he was on probation for that case at the time of his arrest for this incident.
This case was investigate d by the Terre Haute Police Department and the Federal Bureau of Investigation.
"This individual is a perfect example of why the law, illegal possession of a firearm by a prohibited person, was enacted," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "He is a career criminal with a long history of violence and this sentence ensures he is no longer a threat to the community."
According to Assistant United States Attorneys Matthew J. Lasher who prosecuted this case for the government, Jackson must serve five years of supervised release after his sentence.
Statement of the September 11th Victim Compensation Fund on the Office of Inspector General’s ReportRead the Press Release
The September 11th Victim Compensation Fund (VCF) acknowledges the work done by the Department’s Office of the Inspector General (OIG), as described in its report released today, entitled “Audit of the Department of Justice’s Administration of the September 11th Victim Compensation Fund.”
Today’s VCF has undergone many positive changes since OIG concluded its substantive review, including new leadership and updated regulations that implement changes as a result of the Dec. 18, 2015, reauthorization of the program by Congress and the President for an additional five years. That reauthorization, which extended the application period until Dec. 18, 2020, and appropriated $4.6 billion in additional funding, was a demonstration of Congress’s faith in the program and a recognition both of its success and of the enormity of the work that remains to be done. The OIG’s report similarly recognizes the substantial work done by the VCF, finding that each of its recommendations has already been met by the VCF and deeming each one closed and requiring no further follow-up.
“While no amount of money can alleviate the losses suffered as a result of the events of Sept. 11, 2001, the VCF plays a critical role in providing some measure of relief to those who continue to suffer,” said VCF Special Master Rupa Bhattacharyya. “The VCF today is reauthorized and reinvigorated in its efforts to serve the 9/11 community, and has taken substantial steps to realign the program to promptly, accurately, consistently, and fairly decide the claims already pending and the claims still anticipated to be filed. The VCF is grateful for OIG’s collaborative approach to the audit, and for the time and effort that OIG expended in reviewing the Fund’s operations through February of 2016, when it completed its substantive review.”
Since 2011, the VCF has awarded over $2.8 billion in compensation to responders to the attacks in New York City, at the Pentagon, and at the Shanksville site, as well as to those who lived, worked, or traveled through areas of lower Manhattan that were exposed to debris and toxins generated by the attacks and their aftermath. The VCF continues to receive and review claims from those who have suffered, and has over $4 billion in funds remaining.
To date, the VCF has made more than 21,000 eligibility decisions, finding more than 16,900 claimants eligible for compensation. The VCF had also made award determinations on more than 13,000 of those claims, including over 11,000 responders. More than 4,000 of these claimants suffer from one or more cancers related to their 9/11 exposure, while the remainder suffer from other, often times disabling, physical injuries.
The VCF was created to provide compensation for any individual (or a personal representative of a deceased individual) who suffered physical harm or was killed as a result of the terrorist-related aircraft crashes of Sept. 11, 2001 or the debris removal efforts that took place in the immediate aftermath of those crashes. The original VCF operated from 2001-2004. On Jan. 2, 2011, President Obama signed into law the James Zadroga 9/11 Health and Compensation Act of 2010 (Zadroga Act). Title II of the Zadroga Act reactivated the September 11th Victim Compensation Fund. The reactivated VCF opened in October 2011 and was authorized to operate for a period of five years, ending in October 2016. On Dec. 18, 2015, President Obama signed into law a bill reauthorizing the James Zadroga 9/11 Health and Compensation Act of 2010, which included the reauthorization of the VCF.
For additional information about how to file a claim, please visit the “How to File a Claim” page on the VCF’s website at www.vcf.gov; information on VCF policies and procedures can be obtained at https://www.vcf.gov/pdf/VCFPolicy.pdf. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
Solano County Man Sentenced to 10 Years in Prison for Possessing Gun as a FelonRead the Press Release
SACRAMENTO, Calif. — Markell Darrell Davis, 31, of Solano County, was sentenced today by United States District Judge Morrison C. England Jr. to 10 years in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on February 17, 2014, Davis was involved in a shooting in a residential neighborhood in Fairfield. Davis was driving on a residential block when a car pulled alongside him and an occupant of that car fired shots at Davis, then drove away. Davis returned fire with his .40-caliber Glock semi-automatic pistol in the direction of the other car as it drove away. One of the bullets that Davis fired struck and injured a bystander. At the time of the shooting, Davis was a convicted felon who was prohibited by law from possessing a firearm.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fairfield Police Department. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
Six More Defendants Plead Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that six more defendants have pleaded guilty in federal court to their roles in a conspiracy to distribute methamphetamine in Greene County, Mo.
Adrian Ortiz-Corrales, 42, of Las Vegas, Nev., pleaded guilty before U.S. Magistrate Judge David P. Rush today to 10 counts charged against him in an indictment returned on Sept. 28, 2016. Specifically, Ortiz-Corrales pleaded guilty to counts of conspiracy to distribute methamphetamine and conspiracy to commit money laundering, six counts of money laundering, and counts of possessing methamphetamine and heroin for distribution.
Gary Lee Driggers, 65, of Springfield, Mo., pleaded guilty to his role in the drug-trafficking conspiracy on Tuesday, Aug. 15, 2017. William Frank Eft, 67, and Williams David Watts, 59, both of Springfield, pleaded guilty to the same charge on Monday, Aug. 14, 2017. Richard Todd Sherwood, 59, of Willard, Mo., and Eduardo Diaz, 53, of Las Vegas, each pleaded guilty to the same charge last week.
In total, the quantity of pure methamphetamine involved in the conspiracy, which lasted from October 2013 to Feb. 29, 2016, weighed in excess of 4.5 kilograms.
Patrick R. Brigaudin, 55, of Springfield, and Gayla Rochelle Phillips, 42, of Willard, have also pleaded guilty to their roles in the drug-trafficking conspiracy as well as to participating in the related money-laundering conspiracy.
In March 2015, a shipment of approximately 15 pounds of pure methamphetamine was interdicted by law enforcement officers. Three persons were arrested following a controlled delivery of the methamphetamine to a Springfield hotel. Brigaudin admitted that he attempted to possess some or all of the methamphetamine, which he intended to distribute to others. Brigaudin also admitted to distributing methamphetamine on several occasions in 2015 and 2016.
On Feb. 29, 2016, Diaz and Ortiz-Corrales transported approximately 12 pounds of methamphetamine and six pounds of heroin to Brigaudin’s residence. While they were removing the methamphetamine from a vehicle, they and Brigaudin were arrested.
Watts admitted that he made his residence available to store methamphetamine. Driggers, Eft and Sherwood each admitted that he obtained methamphetamine from Brigaudin, which he intended to distribute to another person.
This case is being prosecuted by Assistant U.S. Attorney Timothy A. Garrison. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Ozark, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, COMET (the Combined Ozarks Multijurisdictional Enforcement Team) and the South Central Drug Task Force.
Six Indicted for Large-Scale Drug Distribution via the Dark WebRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today charging six defendants in a scheme to distribute controlled substances throughout the United States via the dark web, U.S. Attorney Phillip A. Talbert announced.
William James Farber, aka Bill Danzerian, 37, of Los Angeles, and Bryan Anthony Lemons, 29, of Los Angeles, were charged with conspiracy to possess and distribute controlled substances and conspiracy to launder money. Richard Thomas Martinsen, 29, of Studio City; Michael Angelo Palma, 22, of Los Angeles; Michele Pickerell, 47, of Altadena; and Faysal Mustafa Alkhayat, 31, of Woodland Hills, were charged with conspiracy to possess and distribute controlled substances.
According to court documents, Farber and his co-conspirators, operating under the name PureFireMeds, sold narcotics including marijuana, cocaine, oxycodone, hydrocodone, psilocybin, MDMA (Ecstasy), LSD, Xanax, and ketamine on dark web marketplaces, including Silk Road and Pandora. After Silk Road was shut down by law enforcement in October 2013, it is alleged that Farber and his co-conspirators began selling on the AlphaBay dark web marketplace under the name HumboldtFarms. It became one of the largest vendors on AlphaBay, allegedly completing more than 78,000 orders of marijuana on the site to customers throughout the United States and the world. Palma, Martinsen and others allegedly used Pickerell’s home to assemble an estimated 1,000 parcels of marijuana a week that were mailed throughout the United States. Farber and Lemons allegedly exchanged at least $7 million in bitcoin for cash that was allegedly the proceeds of the HumboldtFarms drug distribution.
Dark web sites such as AlphaBay operate on “The Onion Router” or “TOR” network, a special network of computers on the internet, distributed around the world, that is designed to conceal the true Internet Protocol (IP) addresses of the computers accessing the network, and, thereby, the locations and identities of the network’s users and computer servers hosting the websites, which are referred to as “hidden services.” The “hidden services” have complex web addresses, generated by a computer algorithm, ending in “.onion” and can only be accessed through specific web browser software designed to access the TOR network. AlphaBay was shut down by U.S. law enforcement on July 5, 2017, and is no longer in operation.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service in Los Angeles, the Los Angeles Police Department, and the Bakersfield Police Department with assistance from the Los Angeles Joint Regional Intelligence Center. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted of conspiracy to possess controlled substance, all six defendants face a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted of conspiracy to distribute controlled substance, each defendant faces a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of the money laundering conspiracy, Farber and Lemons each face a maximum statutory penalty of 20 years in prison and a fine up to $500,000 or up to twice the value of the property involved in the transactions, whichever is greater. Any sentence, however, would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sentencings for August 16, 2017Read the Press Release
Matthew Wayne Miller, 24, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 16, 2017, for being a felon in possession of firearms. Miller was arrested in Cheyenne, Wyoming. He received 41 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Cheyenne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
John T. Rudnick, 63, of Indianapolis, Indiana, was sentenced by Chief Magistrate Judge Kelly H. Rankin on August 16, 2017, for contempt of court. Mr. Rudnick intentionally provided misleading and inaccurate information to questions during a deposition in a bankruptcy case and his misbehavior obstructed the administration of justice. Rudnick was ordered to pay a $10.00 special assessment and a $5,000.00 fine. This case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation.
Scott Eugene Bronson, 33, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 16, 2017, for possession of a machine gun. Bronson received 80 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Sheridan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rashaan Fredrick Burton, 40, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 16, 2017, for conspiracy to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Burton was arrested in Gillette, Wyoming. He received 160 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Campbell County Sheriff’s Office, the Gillette Police Department, and the Wyoming Division of Criminal Investigation.
Search of Homedale Residence Leads to Methamphetamine Charges Against Mexican NationalRead the Press Release
BOISE — Acting United States Attorney Rafael Gonzalez announced today that last week’s search of a residence in Homedale, Idaho, resulted in the filing of federal drug charges against Ricardo Renteria-Castillo, 29, a Mexican national. A criminal complaint filed last week in federal court alleges that on August 9, 2017, Renteria-Castillo possessed methamphetamine with the intent to distribute it. It also alleges that from July 2017, until August 8, 2017, Renteria-Castillo conspired with others to distribute methamphetamine.
Renteria-Castillo appeared in federal court in Boise on August 11, 2017. Trial has not yet been scheduled.
Both charges are punishable by up to 20 years in prison, a fine up to $1 million and three years of supervised release.
The following law enforcement agencies participated in the search of the residence were the Drug Enforcement Administration, the Homedale Police Department, the Boise Police Department, the Nampa Police Department, the Valley County Sheriff’s Office, the Canyon County Sheriff’s Office, the Ada County Sheriff’s Office, and the Mini Cassia Drug Task Force. The investigation is also part of the Organized Crime and Drug Enforcement Task Force (OCDETF), which includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and the U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
A complaint is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rosebud Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance, Methamphetamine, was sentenced on August 10, 2017, by U.S. District Judge Roberto A. Lange.
Benjamin Jason Young, a/k/a, Benjamin Jason Two Eagle, age 36, was sentenced to 40 months in custody, followed by 3 years of supervised release, a fine of $500, forfeiture of a firearm and ammunition, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Young was indicted by a federal grand jury on May 17, 2016. He pled guilty on April 11, 2017.
Between January 2015 and May 2016, Young knowingly and intentionally conspired with others to distribute methamphetamine, a Schedule II controlled substance, in the District of South Dakota. Young received distributable quantities of methamphetamine and distributed some of that methamphetamine in South Dakota. The individuals who provided Young with the methamphetamine knew that he intended to engage in further distribution. Young admitted that it was reasonably foreseeable to him that more than 50 grams of methamphetamine would be distributed during the course of the conspiracy.
When law enforcement executed a search warrant on Young’s residence on September 23, 2015, Young had methamphetamine, paraphernalia testing positive for methamphetamine, a firearm, and ammunition in his possession. Those items were seized by law enforcement and the firearm and ammunition were forfeited.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Young was immediately turned over to the custody of the U.S. Marshals Service.
Pittsburgh Woman Admits Defrauding Social SecurityRead the Press Release
PITTSBURGH - A Pittsburgh resident has pled guilty to the charge of theft of government money, stemming from her receipt and use of social security benefits to which she knew she was not entitled, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, to which she pled guilty before United States District Court Judge David Cercone on August 9, 2017, named Rosemary Thomas, 64, as the sole defendant.
According to the indictment and the evidence summarized during the plea proceeding, from January 2001 to February 2014, Thomas converted to her own use $98,949 in Social Security Title II, Old Age, Survivor’s Disability Insurance benefits of another individual to whom she was not related, to which benefits she knew she was not entitled.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment and guilty plea in this case.
Oak Park Doctor Pleads Guilty to Unlawful Distribution of Prescription PillsRead the Press Release
A physician who practiced in Oak Park pleaded guilty yesterday to writing prescriptions for oxycodone without medical justification, acting United States Attorney Daniel L. Lemisch announced today.
Lemisch was joined in the announcement by Timothy Plancon, Special Agent in Charge of the Drug Enforcement Administration and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service, Criminal Investigation.
Jennifer Franklin, 40, of Harrison Township, entered the guilty plea before U.S. District Judge George Caram Steeh.
As part of the plea agreement, Franklin, admitted that between the latter part of 2013 and April 2015, she conspired with Boris Zigmond, to prescribe medically unnecessary oxycodone. Franklin acknowledged that she earned approximately $200,000 from the scheme to distribute oxycodone. She also acknowledged that the street value of the oxycodone she prescribed without justification exceeded $2 million.
Boris Zigmond, Dr. Carlos Godoy, and six other codefendants have previously pleaded guilty for their roles in the conspiracy.
"More people die from overdoses of prescription drugs in America than from overdoses of all other drugs combined,” Lemisch said. “We hope that prosecuting the doctors who are putting these drugs on the streets will deter others from contributing to this epidemic.”
IRS-CI Special Agent in Charge Muriel, stated “It is unfortunate that greed and the desire for financial gain overpowers a physician’s Hippocratic Oath to use treatment to help the sick, but never with a view to injury and wrong-doing. The medically unnecessary prescribing of Oxycodone continues to be a contributing factor to the Opioid epidemic that is facing Michigan. IRS and its partners will continue to work to identify those who look to gain financial reward from medically unnecessary prescriptions.”
As part of their plea agreements, Zigmond, Franklin, and Godoy could receive a maximum sentence of 20 years imprisonment.
Sentencing is scheduled for December 18, 2017.
New Paltz Man Sentenced to More Than 18 Years in Prison for Sex Trafficking of MinorsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that MARK CASTAGNETTA was sentenced to 218 months in prison and a lifetime term of supervised release for child sex trafficking. CASTAGNETTA pled guilty on November 21, 2016, before U.S. District Judge Cathy Seibel, who imposed today’s sentence. In imposing sentence, Judge Seibel characterized the defendant’s misconduct as some of the most serious conduct she had encountered during her time on the bench.
Acting U.S. Attorney Joon H. Kim said: “This defendant callously robbed two children of their innocence, inducing them to travel to his home in New Paltz, New York, where he not only sexually abused them, but forced them to have sex with other men in exchange for drugs and money. Today, for his reprehensible crimes, he has been sentenced to over 18 years in federal prison.”
From 2014 through July 2016, CASTAGNETTA engaged in trafficking of minors by contacting two minor victims through an adult fetish website and enticing them to travel to his residence to engage in a sexual relationship in which he played the role of “slave master” and the victim played the role of “slave.” Once there, the defendant engaged in abusive sexual conduct with the victims, supplied the victims with illegal drugs, and induced them to engage in sexual conduct with other individuals in exchange for drugs and money. The defendant also produced an image containing child pornography of one of the victims.
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CASTAGNETTA, age 52, pled guilty to one count of sex trafficking of children.
Mr. Kim praised the investigative work of the FBI’s Westchester County Safe Streets Task Force and the FBI’s Violent Crimes Against Children Squad and thanked the New York City Police Department, the Manhattan District Attorney’s Office, the Town of New Paltz Police Department, the Westchester County Human Trafficking Task Force, and the Westchester Department of Social Services for their valuable cooperation in this matter.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jacqueline Kelly is in charge of the prosecution.
New Castle Man Pleads Guilty to Sex Trafficking a MinorRead the Press Release
PITTSBURGH – A former resident of Lawrence County, Pennsylvania, has pleaded guilty in federal court to a charge of sex trafficking of a child, Acting United States Attorney Soo C. Song announced today.
Ronald Kyle Hartman, 28, of New Castle, Pennsylvania, pleaded guilty before United States District Judge Mark R. Hornak.
In connection with the guilty plea, from August 14, 2016, to August 16, 2016, Hartman knowingly recruited, enticed, harbored, transported, provided, obtained and maintained by any means, in and affecting interstate commerce, a female minor under the age of 18 years, and did benefit financially or by receiving anything of value from participation in a venture engaged in commercial sexual acts, knowing and in reckless disregard of the fact, and having had a reasonable opportunity to observe Minor A, that Minor A had not attained the age of 18 years and that Minor A would be caused to engage in a commercial sex act.
United States District Judge Mark R. Hornak scheduled sentencing for December 7, 2017, at 9:30 a.m. The law provides for a maximum total sentence of life imprisonment, a fine of $1,000,000, and a term of supervised release for any term of years not less than five, and up to life, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Grove City Police conducted the investigation that led to the prosecution of Hartman.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Navajo Man from Shiprock Sentenced to Prison for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Byron Harold Peshlakai, 26, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Santa Fe, N.M., to 30 months in prison for his involuntary manslaughter conviction. Peshlakai will be on supervised release for three years after completing his prison sentence.
Peshlakai was arrested in Oct. 2016, on an indictment charging him with involuntary manslaughter. According to the indictment, Peshlakai killed the victim with his vehicle while driving under the influence of alcohol on the Navajo Indian Reservation on Oct. 25, 2015.
On March 2, 2017, Peshlakai pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Michael D. Murphy prosecuted the case.
Myrtle Beach Man Sentenced in Federal Court on Possession of Firearm ChargeRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Jeremey Dewayne Faulk, 30, of Myrtle Beach, was sentenced in federal court in Florence, South Carolina, for felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g). United States District Judge R. Bryan Harwell, of Florence, sentenced Faulk to 84 months in prison followed by a three-year term of supervised released.
Evidence presented at the change of plea on November 29, 2016, and the sentencing hearing, established that on February 7, 2016, officers with the Horry County Police Department initiated a traffic stop in Longs, South Carolina, on a vehicle driven by Faulk. A subsequent search of the vehicle, led to the seizure of a .380 caliber pistol, 71 rounds of ammunition and a small amount of marijuana. Faulk later admitted that the firearm was his. Faulk was prohibited from possessing a firearm or ammunition due to previous felony convictions.
The case was investigated by ATF and the Horry County Police Department. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Mylan Agrees to Pay $465 Million to Resolve False Claims Act Liability for Underpaying EpiPen RebatesRead the Press Release
Pharmaceutical companies Mylan Inc. and Mylan Specialty L.P. have agreed to pay $465 million to resolve claims that they violated the False Claims Act by knowingly misclassifying EpiPen as a generic drug to avoid paying rebates owed primarily to Medicaid, the Justice Department announced today. Mylan Inc. and Mylan Specialty L.P. are both wholly owned subsidiaries of Mylan N.V., which is headquartered in Canonsburg, Pennsylvania.
“This settlement demonstrates the Department of Justice’s unwavering commitment to hold pharmaceutical companies accountable for schemes to overbill Medicaid, a taxpayer-funded program whose purpose is to help the poor and disabled,” said Acting Assistant Attorney General Chad A. Readler of the Department of Justice’s Civil Division. “Drug manufacturers must abide by their legal obligations to pay appropriate rebates to state Medicaid programs.”
“Mylan misclassified its brand name drug, EpiPen, to profit at the expense of the Medicaid program,” said Acting United States Attorney William D. Weinreb. “Taxpayers rightly expect companies like Mylan that receive payments from taxpayer-funded programs to scrupulously follow the rules. We will continue to protect the integrity of Medicaid and ensure a level playing field for pharmaceutical companies. ”
Congress enacted the Medicaid Drug Rebate Program to ensure that state Medicaid programs were not susceptible to price gouging by manufacturers of drugs that were available from only a single source. It therefore subjected such single-source, or brand name drugs, to a higher rebate that is payable to Medicaid and that increases to the extent the price of the drug outpaces the rate of inflation. In contrast, generic drugs originating from multiple manufacturers are subject to lower rebates that, at least until recently, were not subject to inflationary adjustments.
The settlement resolves the government’s allegations that Mylan, by erroneously reporting EpiPen as a generic drug to Medicaid despite the absence of any therapeutically equivalent drugs, was able to demand massive price increases in the private market while avoiding its corresponding rebate obligations to Medicaid. Between 2010 and 2016, Mylan increased the price of EpiPen by approximately 400 percent yet paid only a fixed 13 percent rebate to Medicaid during the same period. The government further alleged that although Mylan was well-aware that its drug was not a generic, it nevertheless claimed generic status for EpiPen in the Medicaid program to avoid paying a higher rebate.
The settlement resolves allegations brought in a lawsuit filed under the whistleblower provisions of the False Claims Act, which permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblower in this case was the pharmaceutical manufacturer, Sanofi-Aventis US LLC. It will receive approximately $38.7 million as its share of the federal recovery.
Mylan has also entered into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other things, an independent review organization to annually review multiple aspects of Mylan’s practices relating to the Medicaid drug rebate program.
“Our five-year corporate integrity agreement requires intensive outside scrutiny to assess whether Mylan is complying with the rules of the Medicaid drug rebate program,” said Gregory E. Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “In addition, the CIA requires individual accountability by Mylan board members and executives.”
The government’s intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with various state attorneys general, the Department of Health and Human Services Office of Inspector General, and the Medicaid Fraud Control Units.
The case is captioned United States ex rel. Sanofi-Aventis US LLC v. Mylan Inc., et al., No. 16-CV-11572 (D. Mass.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Mylan Agrees to Pay $465 Million to Resolve False Claims Act LiabilityRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical companies Mylan Inc. and Mylan Specialty L.P. have agreed to pay $465 million to resolve allegations that they violated the False Claims Act by knowingly misclassifying EpiPen, a branded epinephrine auto-injector drug, as a generic drug to avoid paying rebates owed to Medicaid. Mylan Inc. and Mylan Specialty L.P. are both wholly owned subsidiaries of Mylan N.V., a Dutch-registered entity headquartered in Canonsburg, Penn.
Congress enacted the Medicaid Drug Rebate Program to ensure that state Medicaid programs were not susceptible to price gouging by manufacturers of drugs that were available from only a single source. It therefore subjected such single-source, or brand name drugs, to a higher rebate that includes any difference between the drug’s current price and the price the drug would have had if its price had increased only at the general rate of inflation. In contrast, generic drugs originating from multiple manufacturers are subject to lower rebates that, at least until recently, did not include an inflationary component.
The government contends that Mylan improperly avoided paying state Medicaid programs the higher rebates for branded drugs by misclassifying EpiPen as a generic drug, even though EpiPen had no FDA-approved therapeutic equivalents and even though Mylan marketed and priced EpiPen as a brand name drug. Mylan raised the price of EpiPen by approximately 400% between 2010 and 2016.
“Mylan misclassified its brand name drug, EpiPen, to profit at the expense of the Medicaid program,” said Acting United States Attorney William D. Weinreb. “Taxpayers rightly expect companies like Mylan that receive payments from taxpayer-funded programs to scrupulously follow the rules. We will continue to root out fraud and abuse to protect the integrity of Medicaid and ensure a level playing field for pharmaceutical companies. We commend Sanofi for bringing this matter to our attention.”
“This settlement demonstrates the Department of Justice’s unwavering commitment to hold pharmaceutical companies accountable for schemes to overbill Medicaid, a taxpayer-funded program whose purpose is to help the poor and disabled,” said Acting Assistant Attorney General Chad A. Readler of the Department of Justice’s Civil Division. “Drug manufacturers must abide by their legal obligations to pay appropriate rebates to state Medicaid programs.”
As part of this settlement, Mylan has also entered into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other things, an independent review organization to annually review multiple aspects of Mylan’s practices relating to the Medicaid drug rebate program.
“Our five-year corporate integrity agreement requires intensive outside scrutiny to assess whether Mylan is complying with the rules of the Medicaid Drug Rebate Program,” said Gregory E. Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “In addition, the CIA requires individual accountability by Mylan board members and executives.”
A competing pharmaceutical manufacturer, Sanofi, raised this matter with the United States Attorney’s Office in 2014. At the time, Sanofi was selling another epinephrine auto-injector drug called AUVI-Q and was reporting it to the Medicaid Drug Rebate Program as a brand name drug. In 2016, Sanofi filed a complaint against Mylan under the qui tam provisions of the False Claims Act, which permits private parties to sue on behalf of the government and to receive a share of any recovery. See United States ex rel. sanofi-aventis US LLC v. Mylan Inc., et al., No. 16cv11572 (D. Mass.). As a result of today’s settlement, Sanofi will receive $38.7 million as its share of the federal recovery, plus a share of the states’ recovery.
Acting U.S. Attorney Weinreb, Acting Deputy Assistant Attorney General Raab, and HHS OIG Chief Counsel Demske made the announcement today. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Kriss Basil of Weinreb’s Office, and by Trial Attorneys Augustine Ripa and Nicholas Perros of the Justice Department’s Civil Division.
Mosheim Resident Sentenced to over Fifteen Years on Methamphetamine Conspiracy ChargeRead the Press Release
GREENEVILLE, Tenn. – On August 17, 2017, David Lee Sicilia, 32, of Mosheim, Tennessee, was sentenced by the Honorable R. Leon Jordan, Senior U.S. District Court Judge, to serve 188 months in federal prison following a conviction for his role in a conspiracy to distribute methamphetamine in east Tennessee.
According to the plea agreement on file with the U.S. District Court, Sicilia admitted that he was responsible for the distribution of at least 500 grams but less than 1.5 kilograms of actual methamphetamine.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation, Hamblen County Sheriff’s Office, Morristown Police Department and Third and Fourth District Judicial Drug Task Forces. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Michigan Man Sentenced for Credit and Debit Card FraudRead the Press Release
BOISE – Devin Arthur Searcy, 23, of Redford Charter Town, Michigan, was sentenced today to 24 months in prison followed by three years of supervised release for conspiracy to commit wire fraud, Acting U.S. Attorney Rafael Gonzalez announced. Chief U.S. District Judge B. Lynn Winmill also ordered Searcy to pay $7,299.33 in restitution. Searcy pleaded guilty on May 8, 2017.
According to statements made in court, Searcy and his co-defendant, Juwuan Demilo Gordon, agreed to travel to the District of Idaho, the District of Colorado, the District of Utah, and the Western District of Oklahoma for the purpose of making fraudulent purchases of gift cards and prepaid debit cards from retail stores, using stolen credit card numbers embossed onto counterfeit credit and debit cards. Prior to traveling to the different districts, Searcy and Gordon obtained counterfeit credit and debit cards in Michigan. Law enforcement recovered at least 12 counterfeit credit cards and 105 gift cards and prepaid debit cards from the pair.
Juwuan Gordon, 27, of Westland, Michigan, was sentenced on July 27, 2017, to 27 months in prison followed by three years of supervised release for conspiracy to commit wire fraud. Judge Winmill also ordered Gordon to pay $7,299.33 in restitution.
The case was investigated by the Boise Police Department and the United States Secret Service.
Mexican National Pleads Guilty to Drug TraffickingRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOACOBO JOSE SANTOS, age 43, a naturalized citizen of Mexico, pled guilty today to conspiracy to possess with the intent to distribute five hundred grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride.
According to the court documents, SANTOS was arrested with co-conspirators on October 15, 2016, in possession of nearly five kilograms of cocaine in Covington, Louisiana meant for distribution in the Eastern District of Louisiana.
SANTOS faces a maximum of forty years imprisonment and a minimum of five years imprisonment, a maximum fine of $5,000,000, a term of supervised release of at least four years up to life, and a mandatory $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for November 30, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration in investigating this matter. Assistant U.S. Attorney James S. C. Baehr is in charge of the prosecution.
Meriden Man Pleads Guilty to Sex Trafficking of 3 Teenage GirlsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLEN DAVIS, 36, of Meriden, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of sex trafficking of a minor.
According to court documents and statements made in court, at various time between late 2014 and November 2016, DAVIS recruited harbored and transported three females, who at the time were 14, 15 and 16 years old, to engage in commercial acts. DAVIS used the website Backpage.com to advertise the minor victims’ services, and he transported the girls to various Connecticut hotels, including hotels in Meriden, Milford and Hamden, where they engaged in prostitution.
DAVIS has been detained since his arrest on related state charges on December 9, 2016.
Judge Shea scheduled sentencing for November 14, 2017, at which time DAVIS faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. DAVIS also has agreed to pay restitution to the minor victims.
This matter is being investigated by the Connecticut Human Trafficking Task Force, Federal Bureau of Investigation and Meriden Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Sarala V. Nagala.
McCracken County, Kentucky Attorney Guilty of Defrauding Clients of Insurance SettlementsRead the Press Release
Kept at least $550,000 in settlement amounts that should have gone to his clients.
PADUCAH, Ky. – A licensed Kentucky attorney pleaded guilty in United States District Court today, before Senior Judge Thomas B. Russell, to various charges including devising a scheme to defraud numerous clients of insurance settlements totaling at least $550,000 announced United States Attorney John E. Kuhn, Jr.
“Clients trust their attorneys to act as fiduciaries, to put the clients’ interests first and to conduct themselves honestly and honorably,” stated U.S. Attorney John Kuhn. “In this case, Mr. King violated that trust and dishonored his profession by stealing from his clients. We will pursue justice for his defrauded clients, seek restitution on their behalf, and seek a sentence for Mr. King commensurate with his crime.”
From at least March of 2007 through May of 2017, James Grant King, 43, of McCracken County, Kentucky, was an attorney licensed by the Kentucky Bar Association and licensed to practice law in the Commonwealth of Kentucky. In court today, King admitted that during that time period, he committed aggravated identity theft and wire fraud.
King practiced as a plaintiff’s attorney for numerous clients within the Western District of Kentucky and elsewhere. These clients came to the defendant seeking his services in order to recover monetary damages and other remedies. After learning about his clients’ cases, King would seek to settle their cases with insurance companies. However, after reaching a settlement with the insurance companies, and unbeknownst to his clients, King would then keep most or all of the settlement amounts for himself.
Specifically, depending on the case, King would either keep the entire settlement amount for himself or tell clients that he was still awaiting resolution and settlement of the case with the insurance company, knowing that the insurance company had already settled the case and sent him the full settlement amount. King’s clients would believe him because they trusted him. The settlements that King received from the insurance companies often came in the form of a check. In order to cash or deposit the check, King would forge the signatures of his clients so that they would not know about the check. King would forge these signatures without any lawful authority
King is also charged with obtaining a $97,500 personal loan from a McCracken County individual. As collateral for the loan, King transferred the title of a Phoenix Model 920 Pro XP boat. However, a few months later, King applied for a duplicate title to the boat, and then, unbeknownst to the individual who loaned him the money, King sold the boat, without repaying the $97,500 loan.
If convicted at trial, King could face a sentence of 42 years in prison, pay a fine of $750,000 and be required to serve a three years period of supervised release.
This case is being prosecuted by Assistant United States Nute A. Bonner and is being investigated by the Federal Bureau of Investigation (FBI) and the McCracken County Kentucky Sheriff’s Department.
king_grant_plea_8-19-17.pdfManhattan U.S. Attorney Announces Conviction of Rikers Island Correction Officer in Connection with Cover-Up of Inmate AssaultRead the Press Release
Joon H. Kim, Acting United States Attorney for the Southern District of New York, announced today that RODINY CALYPSO, a New York City Correction Officer, was convicted yesterday of filing a false report in connection with the assault of a handcuffed inmate at Rikers Island. The jury acquitted the defendant on one count of violating the inmate’s civil rights and one count of obstruction of justice. The jury returned the verdict after a one-week trial before the Honorable Valerie E. Caproni.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Prisoners at Rikers Island have the same constitutional rights we all enjoy, and corrections officers do not have the right to abuse inmates in their custody and care. Rodiny Calypso’s lies about his use of force undermined the investigation into his brutal beating of a handcuffed, defenseless inmate. We will continue to aggressively protect the rights of prisoners and the integrity of investigations into uses of force to ensure that justice reaches everywhere, including isolated corners of Rikers Island.”
According to the Complaint, Indictment, and evidence presented at trial:
Rikers Island is a jail complex, located in the Bronx, New York, maintained by the New York City Department of Correction. At the time of his assault, the inmate (“Inmate-1”) was a pretrial detainee in the Otis Bantum Correctional Center (“OBCC”), a facility that houses, among other inmates, inmates in need of maximum security. Inmate-1 was housed in 5 North, a dormitory area within the OBCC in which inmates were generally kept in solitary confinement in individual cells for 23 hours per day. The shower facilities within 5 North were individual stalls, to be occupied by one inmate at a time, and to which inmates were brought handcuffed, then uncuffed through a port in the shower stall door, and then handcuffed again through the port before being brought out of the stalls by correction officers.
The Assault and Cover-Up
Shortly before noon on February 27, 2014, CALYPSO relieved another correction officer at 5 North while Inmate-1 was in the shower. Inmate-1 and CALYPSO had an extended and heated verbal exchange, during which CALYPSO picked up some personal items Inmate-1 had dropped outside the door through the port. At one point, CALYPSO stepped away from the door and spoke to a fellow correction officer one level down within the dorm area. That person left the dorm area and returned with another officer (“Officer-1”).
CALYPSO rear-cuffed Inmate-1 for removal, and then opened the door to the shower stall. Within seconds, CALYPSO punched Inmate-1 several times in the face. He followed Inmate-1 into the shower area, where he put Inmate-1 into a headlock and punched him several more times in the head. CALYPSO began to lose his footing at this point, and clung to Inmate-1’s side. Officer-1 then arrived outside the stall. As Officer-1 restrained Inmate-1, CALYPSO regained his footing and elbowed Inmate-1 repeatedly – approximately five times – in the head. As a result of the assault, Inmate-1 suffered lacerations to his face and the back of his head. The entire assault was captured on surveillance video and witnessed by multiple inmates whose cells were positioned across from the shower area.
The New York City Department of Correction issues directives governing the circumstances under which the use of force against inmates is appropriate. Under these directives, when a restrained inmate is still dangerous to himself and others, force is to be used as a last resort. The directives also dictate that any use of force must be reported – on a “Use of Force” report that is filled out truthfully and promptly.
A full day after the assault, in violation of the directives, CALYPSO filled out a “Use of Force” report on which he was supposed to report truthfully the circumstances of that assault. In this report, CALYPSO attempted to justify his conduct by lying about how he and Inmate-1 had acted. He mischaracterized and misstated portions of the assault, omitting the close-fisted punches he delivered to Inmate-1 while holding him in a headlock and claiming that he had hit Inmate-1 only in the “upper torso” area.
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RODINY CALYPSO, 38, of Springfield Gardens, New York, was convicted of one count of filing a false form. CALYPSO faces a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. CALYPSO is scheduled to be sentenced on November 30, 2017.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation. Mr. Kim also thanked the New York City Department of Investigation, the New York City Department of Correction, Investigative Division, and the Bronx District Attorney’s Office for their assistance in the investigation, which remains ongoing.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Martin S. Bell and Tara M. La Morte are in charge of the prosecution.
Manhattan U.S. Attorney Announces Consent Decree with Accolade Construction Group Inc. for Violating Lead Paint Safety RulesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Catherine R. McCabe, Acting Regional Administrator for the U.S. Environmental Protection Agency (“EPA”), Region 2, announced today that the United States entered into a Consent Decree settling a civil lawsuit against Accolade Construction Group Inc. (“Accolade”) for violations of the Toxic Substances Control Act (“TSCA”) and EPA’s Renovation, Repair, and Painting Rule (“RRP Rule”). The provisions of TSCA and the RRP Rule that Accolade violated are designed to protect public health by minimizing the risk of lead exposure during renovations of residential buildings.
Acting U.S. Attorney Joon H. Kim stated: “Accolade repeatedly ignored rules designed to protect children and others from lead poisoning. By requiring Accolade to turn over profits it made by evading these requirements, this Consent Decree ensures that Accolade will not benefit from its misdeeds. And because Accolade’s future work will be subject to court oversight, the public health will be protected.”
EPA Acting Regional Administrator McCabe stated: “Lead paint is very dangerous when it is being stripped or sanded during renovations. By not complying with EPA rules designed to ensure that the paint dust is properly handled by properly trained workers, Accolade put people, including its own workers, at risk. This Consent Decree protects the public by requiring company officials to get training to ensure that the company follows the rules in all future renovations.”
The Consent Decree, which is subject to public comment and approval by the court, will resolve a lawsuit filed in Manhattan federal court in 2015, which alleged that Accolade repeatedly violated TSCA and the RRP Rule in the course of renovating six different Manhattan apartment buildings. The lawsuit also alleged that Accolade violated TSCA and the RRP Rule by failing to provide EPA with records necessary to enable EPA to monitor Accolade’s compliance. Accolade committed these violations despite a prior administrative settlement with the EPA for violations of the RRP Rule.
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In the Consent Decree entered today, Accolade admits, acknowledges, and accepts responsibility for the fact that it “violated the RRP Rule and, consequently, TSCA” as a result of the following conduct at each of the six buildings at issue:
- Failing to have a certified renovator direct the renovations and to ensure that all other persons performing the renovations received training on lead-safe work practices;
- Failing to post warning signs defining the work areas and cautioning occupants and other persons to keep out;
- Failing to provide the owner of the units being renovated with an EPA pamphlet on lead hazards, The Lead-Safe Certified Guide to Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools;
- Failing to contain the renovation work areas to minimize the risk of lead exposure;
- Failing to clean the work areas after the renovations were completed to ensure that no dust, debris, or residue remained in those areas; and
- Failing to make available to EPA the records necessary to demonstrate Accolade’s compliance with the RRP Rule.
Pursuant to the Consent Decree, Accolade will disgorge $58,000 in profits obtained from the conduct alleged in the lawsuit. Further, the Consent Decree requires Accolade’s principal to receive training before Accolade conducts future RRP Rule-covered work and requires Accolade to comply with safe work practices and other RRP Rule requirements in the future. Failure to comply with the Consent Decree will give rise to significant penalties.
To provide public notice and to afford members of the public the opportunity to comment on the Consent Decree, the Consent Decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.
Acting U.S. Attorney Kim thanked the attorneys and enforcement staff at EPA Region 2 for their critical work in this matter.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorneys Mónica P. Folch and Sharanya Mohan are in charge of the case.