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Wednesday 14 June 2017
Four Dominican Nationals Involved in Recent Drug Sweep Face Additional ChargesRead the Press Release
BOSTON – Four Dominican nationals, formerly residing in Lawrence, were charged today in a superseding indictment for their roles in a fentanyl, heroin and cocaine distribution ring disrupted by a federal drug sweep in Lawrence last month.
Ramon Gonzalez Nival, a/k/a Caballito, 40, and Robert Frett Sierra, a/k/a Chiquito, 46, were charged with illegal re-entry after deportation.
Julio Baez Gonzalez, a/k/a Manolo, 34, was charged with being an unlawful alien in possession of a firearm.
Santos Ruiz Nivar, a/k/a Tio, was charged with conspiracy to traffic heroin, cocaine and fentanyl.
On May 30, 2017, 30 individuals were arrested and charged on federal drug, gun and immigration offenses. Today’s superseding indictment brings the total number of individuals indicted to 31. The arrests were the culmination of a yearlong investigation, dubbed “Operation Bad Company,” aimed at attacking the distribution of fentanyl and heroin in the Lawrence area. The defendants are alleged to have controlled and managed a lucrative and sophisticated drug trafficking and distribution ring in the region.
The drug statute provides for a sentence no greater than 20 years in prison; the firearm statute provides for no greater than 10 years in prison; and the unlawful re-entry after deportation statute provides for no greater than 10 years in prison. The defendants are subject to deportation upon completion of their sentences. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. The DEA Cross Border Initiative (comprised of the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments) and the Massachusetts State Police investigated the case. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Defendants Plead Guilty to Operating Marijuana Trafficking RingRead the Press Release
COLUMBUS, Ohio – Adrian A. Douglas, 48, of Columbus, pleaded guilty today in U.S. District Court to conspiracy to distribute more than 1,000 kilograms of marijuana and conspiracy to commit money laundering. Douglas led a Central Ohio marijuana trafficking ring that involved receiving UPS shipments of the drug from Las Vegas and mailing cash back to the supplier.
Douglas’s son, Justin A. Douglas, 28, as well as Joshua N. Barron, 28, previously pleaded guilty to the same two charges. Raymond Tillman, 42, previously pleaded guilty to conspiracy to distribute more than 1,000 kilograms of marijuana. All three men are also Columbus residents.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Columbus Police Chief Kim Jacobs and other members of the Ohio Organized Crime Commission’s Central Ohio Drug Enforcement task force announced the pleas entered into before U.S. District Judge Michael H Watson.
The Statement of Facts in this case details that between November 2015 and December 2016, investigators documented 264 packages sent via UPS from Las Vegas to Columbus. Those packages contained a total of more than 3,000 kilograms of marijuana.
Once co-conspirators distributed the marijuana in Central Ohio, they mailed cash back to the source of supply in Las Vegas. Investigators documented 41 packages shipped from Columbus to Las Vegas during the same timeframe.
For example, on December 7, 2016, an 18-pound package was shipped via UPS from Columbus to Las Vegas but was interdicted in Kentucky by law enforcement. The package contained more than $199,000 in cash.
On December 21, 2016, a series of search warrants were conducted at locations associated with the drug ring and turned up more than $331,000 in cash at Justin Douglas’s residence on Scioto Chase Blvd. An Additional $27,000 in cash was found at the residence of Adrian Douglas and more than $58,000 was seized from Raymond Tillman during a traffic stop.
Conspiracy to distribute more than 1,000 kilograms of marijuana is a crime punishable by a range of 10 years to life in prison and a potential maximum fine of $10 million. Conspiracy to commit money laundering carries a potential maximum of sentence of 20 years in prison and a possible fine of up to $500,000.
All four defendants were indicted in February.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, DEA and Columbus Police, as well as Assistant United States Attorney Kevin Kelley, who is representing the United States in this case.
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Fort Wayne Woman ChargedRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Erin Clowser, age 34, of Fort Wayne, Indiana was charged via a federal criminal complaint with theft of US Mail, access device fraud and aggravate identity theft.
The criminal complaint alleges that on or about November 2016, the United States Postal Inspection Service began receiving complaints of mail theft from the 46845 zip code area. Clowser allegedly, took both mail that was delivered before it could be picked up by the respective owners and mail that was outgoing in boxes with the flags up before it could be picked up by postal carriers. Once the mail was taken, Clowser allegedly converted stolen checks for her own personal use. Clowser allegedly obtained a debit card belonging to another individual, and from March 2017 through April 2017, used that debit card to make unauthorized purchases and ATM withdrawals totaling over $50,000.
Clowser is scheduled for an initial appearance on these charges today before a United States District Court Magistrate Judge. .
The United States Attorney’s office emphasizes that a Complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
These charges result from a joint investigation conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation’s Fort Wayne Safe Streets Task Force, the Allen County Sheriff’s Department and the Indiana State Police. This case is being handled by Assistant United States Attorney Stacey R. Speith.
Any individuals or businesses located within the 46845 zip code that suspect that their mail may have stolen between November 2016 and April 2017 are urged to report such information to the Postal Inspection Service at 877-876-2455 or the FBI at 317-595-4000.
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Fort Hall Man Sentenced to 30 Years in Prison for Second Degree MurderRead the Press Release
POCATELLO – Demetrius Anthony Gomez, 30, of Fort Hall, Idaho, was sentenced yesterday to 30 years in prison to be followed by five years of supervised released for second degree murder, Acting U.S. Attorney Rafael Gonzalez announced. Chief U.S. District Judge B. Lynn Winmill also ordered Gomez to pay a $5,000 fine.
On January 5, 2017, a jury found Gomez guilty of one count of second degree murder. Evidence at trial showed that on May 9, 2016, Gomez was at a residence along with some friends and family. At the residence, he shot and killed his cousin at close range with a sawed off shotgun. He did so deliberately, intentionally, and unprovoked. He then took steps to hide the body and conceal the murder from law enforcement.
According to Acting U.S. Attorney Rafael Gonzalez, “this case was a senseless and cowardly attack during a party. Our thoughts remain with the victim and his family. We hope that the severe sentence in this case serves as a deterrent to others and prevent more senseless violence in our community.” I commend the dedication and professionalism of the officers and detectives of the Fort Hall Police Department and agents of the Federal Bureau of Investigation, who investigated the case.” Gonzalez added, “this sentence should serve as an indication that the Fort Hall Police Department and the Federal Bureau of Investigation will do everything possible to keep the Fort Hall community a safe and peaceful place to live.”
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former Volunteer Firefighter Pleads Guilty to Concealing Cause of Grass FiresRead the Press Release
TOPEKA, KAN. - A former firefighter with the Kickapoo Volunteer Fire Department pleaded guilty Tuesday to concealing the fact that grass fires on the reservation were deliberately set, U.S. Attorney Tom Beall said today.
Arlene M. Negonsott, 35, Horton, Kan., pleaded guilty to one count of concealing a felony. In her plea, she admitted that she did not tell investigators what she knew when they interviewed her about a series of fires on the Kickapoo Reservation in Brown County. She knew that fire chief and co-defendant Stephen D. Ramirez, Jr., arranged for the fires to be set and billed the Bureau of Indian Affairs for the Kickapoo Fire Department’s work putting out the fires.
Sentencing will be set for a later date. She faces up to three years in federal prison and a fine up to $250,000.
Co-defendant Ramirez is awaiting trial. The U.S. Department of Interior – Office of Inspector General, the Kickapoo Tribal Police and the FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Former Visium Portfolio Manager Stefan Lumiere Sentenced to 18 Months in Prison Following Conviction at Trial for Securities Mismarking SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that STEFAN LUMIERE, a former portfolio manager at Visium Asset Management, L.P. (“Visium”), was sentenced to 18 months in prison in connection with his conviction following a jury trial for engaging in a securities mismarking scheme from 2011 to 2013. The jury convicted LUMIERE on securities and wire fraud charges relating to his mismarking of securities in a fixed-income hedge fund, which inflated the net asset value (“NAV”) of the fund and overstated the fund’s liquidity. LUMIERE was sentenced today by U.S. District Judge Jed S. Rakoff, who presided over the six-day jury trial.
Acting U.S. Attorney Joon H. Kim said: “As the evidence at trial established and as a jury unanimously found, Stefan Lumiere engaged in securities and wire fraud, routinely mismarking by millions of dollars the value of his book at Visium. For his greed-driven lies, Lumiere stands a convicted securities fraudster and has been sentenced to time in a federal prison.”
According to the allegations in the charging documents, evidence admitted at trial, court filings, and statements made in open court:
Visium managed hedge funds specializing in healthcare-related investments. One such fund operated from 2009 until September 2013 and invested primarily in debt instruments issued by healthcare companies (the “Credit Fund”).
From June 2011 through September 2013, LUMIERE and others participated in a scheme to defraud the Credit Fund’s investors and potential investors by deceptively mismarking each month the value of certain securities held by the Credit Fund. The objective of the scheme was two-fold: (1) to inflate the Credit Fund’s NAV; and (2) to mislead investors about the liquidity of the Credit Fund’s holdings (i.e., how actively traded the securities were). Visium assessed performance fees to be paid by investors each year based on the Credit Fund’s profits and losses. LUMIERE’s mismarking was in violation of Visium’s internal valuation procedures and contrary to Visium’s representations to investors. The effect of the scheme was to overstate the Credit Fund’s NAV, often by tens of millions of dollars as calculated at the end of each month, which resulted in higher payments to Visium, among other benefits. The effect of the scheme was also to deceive investors into believing that certain securities were properly categorized as Level II securities, that is, securities that fell within an intermediate level in terms of their liquidity, when, in fact, these securities were highly illiquid Level III investments.
LUMIERE and others accomplished these goals through two principal methods. First, LUMIERE and others solicited, obtained, and relied on false and fraudulent price quotes from employees of broker-dealers in order to improperly override prices calculated by the Credit Fund’s administrator and artificially inflate the Credit Fund’s NAV each month. For each month-end valuation, LUMIERE and others would begin by reviewing an inventory of the Credit Fund’s investments and proposed valuations prepared by the Credit Fund’s administrator and Visium’s back office. LUMIERE and others would then identify relatively illiquid securities and create a list reflecting the prices at which they wanted each security to be marked for month-end valuation purposes. That price was often significantly higher or lower than the price available from public price data. LUMIERE and others would then contact one or two “friendly” brokers and dictate price quotes that they needed. The brokers would then parrot back the price quotes, giving the price quotes the appearance that they had come from an independent broker, and thus were in compliance with the Credit Fund’s pricing methodology. The friendly brokers’ sham quotes were then submitted to Visium’s accounting department as purportedly independent bases for a security’s valuation, for the eventual submission to the Credit Fund’s administrator.
By obtaining these sham quotes, LUMIERE and others caused a number of the Credit Fund’s securities to be misclassified in order to mislead investors about the liquidity of the securities. Specifically, for a number of illiquid bonds, LUMIERE and others fraudulently caused Visium to assign a classification that led investors to believe that the bonds were relatively liquid, when in fact they were entirely illiquid. This was done contrary to disclosures to investors about the Credit Fund’s percentage of illiquid investments, in order to induce investors to invest in or keep their money in the Credit Fund.
Second, LUMIERE purchased additional quantities of certain securities – in which the Credit Fund had an established position – at a deceptively inflated price, markedly higher than the prevailing market was offering that security, in a practice known as “painting the tape.” The inflated price was then reported to Visium’s accounting department for NAV purposes. In both cases – the sham broker quotes and the inflated purchase prices – it was LUMIERE’s intent to increase the price of certain securities in order to inflate the Credit Fund’s month-end valuation.
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As part of the sentence imposed today by Judge Rakoff, LUMIERE, 46, of New York, New York, was further sentenced to three years of supervised release and ordered to pay a fine of $1,000,000.
Mr. Kim praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Ian McGinley, Damian Williams, and Joshua A. Naftalis are in charge of the prosecution.
Former Deere Employee Sentenced to More than Two Years in Prison for Wire Fraud, Money Laundering CrimesRead the Press Release
ROCK ISLAND, Ill. – Harvey Ulfers, 64, of Cedar Falls, Iowa, has been ordered to serve 33 months (2 years, 9 months) in federal prison for wire fraud and money laundering. U.S. District Judge Sara Darrow sentenced Ulfers late yesterday. In addition, Judge Darrow ordered Ulfers to pay a fine of $111,602 plus pay restitution in the amount of $259,132 to his former employer, the victim of his offenses. Ulfers was ordered to report to the federal Bureau of Prisons on July 17, 2017, to begin serving his sentence.
On Nov. 17, 2016, Ulfers pled guilty to the eight counts of the indictment which charged him with wire fraud, money laundering, and money laundering conspiracy. From about 2004 to January 2013, Ulfers defrauded his former employer, Deere & Company, headquartered in Moline, of at least $250,000. Using his position at Deere’s foundry facility in Waterloo, Iowa, Ulfers caused the creation and approval of fraudulent internal documents that allowed significantly undervalued scrap metal to leave the facility. Ulfers conspired with others to obtain the excess value of the scrap after it was sold at scrap yards like Alter Metal Recycling, using a third entity to launder the fraudulent proceeds and provide cash payments to Ulfers.
Ulfers’s co-conspirator, Patrick Williams, 47, of Cedar Falls, Iowa, a former employee of Alter Metal Recycling, pleaded guilty to money laundering conspiracy on April 14, 2016. Judge Darrow sentenced Williams on April 13, 2017, to 27 months in federal prison. Williams was also ordered to pay restitution in the amount of $259,132.97 to Deere & Company, jointly and severally with Ulfers.
The case was prosecuted by Assistant U.S. Attorneys Meredith DeCarlo and Donald Allegro, with Assistant U.S. Attorney Gail Noll assisting with recovery of restitution. The charges were investigated by the Internal Revenue Service Criminal Investigation Division and the Federal Bureau of Investigation. The matter initially came to light following internal investigations by Deere & Company and Alter Metal Recycling.
Former Chief Financial Officer of Arthrocare Corp. Pleads Guilty to Multimillion Dollar Securities Fraud SchemeRead the Press Release
A Texas man and former chief financial officer (CFO), pleaded guilty today to a multimillion dollar securitries fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin, Jr. of the Western District of Texas, and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made the announcement.
Michael Gluk, 59, of Austin, Texas, pleaded guilty to one count of conspiracy to commit securities and wire fraud before U.S. Magistrate Judge Mark Lane of the Western District of Texas. A sentencing date has yet to be scheduled.
As part of his guilty plea, Gluk admitted that he conspired with others to falsely inflate ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving ArthroCare’s distributors. He further admitted that he and other co-conspirators caused ArthroCare to file a Form 10-K for 2007 and Form 10-Q for the first quarter of 2008 with the U.S. Securities and Exchange Commission (SEC) that materially misrepresented ArthroCare’s quarterly and annual sales, revenues, expenses and earnings. As part of the plea, Gluk further admitted that he provided false testimony in proceedings before the SEC and in federal district court.
Gluk further admitted that he and others determined the type and amount of product to be shipped to distributors – notably ArthroCare’s largest distributor, DiscoCare Inc. – based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders. Gluk and others then caused ArthroCare to “park” tens of millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter, he admitted. ArthroCare would then report these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts, Gluk admitted.
In addition, Gluk admitted that DiscoCare agreed to accept shipment of approximately $37 million of product in exchange for substantial, upfront cash commissions, extended payment terms and the ability to return product, as well as other special conditions, allowing ArthroCare to falsely inflate its revenue by tens of millions of dollars. To conceal the fact that DiscoCare owed ArthroCare a substantial amount of money on the unused inventory, Gluk and others caused ArthroCare to acquire DiscoCare on Dec. 31, 2007, Gluk admitted.
In connection with the plea, Gluk acknowleged that between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter of 2006 through the first quarter of 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. On Dec. 19, 2008, after ArthroCare announced publicly that it had identified accounting errors and possible irregularities in its revenue recognition practices going back to 2005, the price of ArthroCare shares dropped further, from $16.23 to $5.92 per share.
Gluk was charged along with co-defendant Michael Baker, ArthroCare’s former CEO, in an indictment unsealed on July 17, 2013. Baker is scheduled for trial on August 7, before U.S. District Judge Sam Sparks in the Western District of Texas.
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.
This case was investigated by the FBI’s San Antonio Field Office. The case is being prosecuted by Securities and Financial Fraud Unit Chief Benjamin D. Singer, Assistant Chief Henry P. Van Dyck, and Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section. The Department recognizes the substantial assistance of the SEC.
Former Boise Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Nickolas James Parnell, 27, formerly of Boise, and currently residing in Medford, Oregon, pleaded guilty yesterday in United States District Court to possession of child pornography, Acting U.S. Attorney Rafael Gonzalez announced.
According to the plea agreement, in May of 2016, agents with the Federal Bureau of Investigation and the Idaho Internet Crimes Against Children Task Force served a search warrant on Parnell’s residence in Boise, Idaho, based upon evidence that Parnell had used a computer to access child pornography. Two laptop computers and two DVDs belonging to Parnell were seized. When agents examined the laptops and DVDs, they discovered 2,190 still images and three videos containing child pornography. In February of 2017, agents served another search warrant on Parnell’s residence in Boise, Idaho, based upon evidence that he was in possession of additional videos containing child pornography. Agents seized a laptop computer, and a forensic search of the computer revealed 3,393 saved images of child pornography, 13 videos containing child pornography, and 3,077 deleted images containing child pornography. In all, the National Center for Missing and Exploited Children identified 290 still images and one video contained known child pornography victims from identified series of child pornography.
Sentencing is set for September 1, 2017, before Chief U.S. District Judge B. Lynn Winmill. Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,000 special assessment. As part of his plea, Parnell also agreed to forfeit the computers and electronic storage devices used in the commission of the charged offense.
The case was investigated by the FBI and the Idaho Internet Crimes Against Children Task Force, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Five Western Pennsylvania Residents Charged with Passing Counterfeit CashRead the Press Release
PITTSBURGH – Five residents of the Western District of Pennsylvania have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and passing and uttering counterfeit money, Acting United States Attorney Soo C. Song announced today.
The four-count indictment named Bruce M. Charles, Jr. 22, of E. Pittsburgh, PA; Edward J. Botti, 32, of Turtle Creek, PA; Seleste M. Foster, 24, of Braddock, PA; Destiny S. Dayton, 21, of Duquesne, PA; and Shad McClelland, 31, of McKeesport, PA.
According to the indictment, between May 16, 2015 to June 12, 2015, Charles, Botti, Foster, Dayton, and McClelland conspired and passed counterfeit $100, $50, and $20 Federal Reserve Notes throughout the Western District of Pennsylvania.
With respect to Charles and Botti, the law provides for a maximum total sentence of 65 years in prison, a fine of $1,000,000 or both. With respect to Foster and Dayton, the law provides for a maximum total sentence of 45 years in prison, a fine of $750,000 or both. Finally, with respect to McClelland, the law provides for a maximum total sentence of 25 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Excelsior Springs Men Plead Guilty to $4.3 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that five Excelsior Springs, Mo., men pleaded guilty in federal court this week to their roles in a $4.3 million conspiracy to distribute large quantities of methamphetamine throughout Jackson, Clay, Ray, Clinton and Buchanan counties.
Marion Eugene Brammer, 53, and Jason Lee Kirtley,44, both of Excelsior Springs, pleaded guilty today in separate appearances before U.S. Magistrate Judge Robert E. Larsen. Co-defendants Jackie R. Love, 60, and William Dean Campbell, 36, both of Excelsior Springs, pleaded guilty on Tuesday, June 13, 2017. Co-defendant Steven Lee Schreier, Jr., 32, of Excelsior Springs, pleaded guilty on Monday, June 12, 2017.
By pleading guilty, Brammer, Kirtley, Love, Campbell and Schreier each admitted that he participated in conspiracy to distribute methamphetamine. They are the last of 26 defendants indicted in this case who have pleaded guilty; four of those convicted defendants have been sentenced.
In 2010, the Buchanan County Drug Strike Force and the DEA initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri and northeast Kansas. Jose Luis Ruiz-Salazar, 38, his brother, Gabriel Ruiz-Salazar, 34, and Gregory Bullock, 48, all of Kansas City, Mo., and Joshua K. Bowers, 33, of Polo, Mo., admitted that they were the primary sources that supplied co-conspirators with large amounts of methamphetamine during the conspiracy. Co-conspirators then distributed the methamphetamine throughout Jackson, Clay, Ray, Clinton and Buchanan counties in Missouri.
According to court documents, conspirators sold $4,359,600 worth of methamphetamine and heroin from 2010 to 2015. That estimate is based on a conservative street price of $1,200 for an ounce of 50 percent pure methamphetamine and the total conspiracy distribution of at least 100 kilograms of methamphetamine, and a conservative street price of $2,500 per ounce of heroin and an overall conspiracy distribution of approximately three pounds.
Brammer and Schreier each admitted that his involvement in the conspiracy was responsible for the distribution of more than 1500 grams of methamphetamine.
Kirtley, Love and Campbell each admitted that his involvement in the conspiracy was responsible for the distribution of more than 500 grams of methamphetamine.
In addition to Jose Ruiz-Salazar, Gabriel Ruiz-Salazar, Bullock and Bowers, co-defendants who have pleaded guilty include Bryan D. Carroll, 28, and Caleb Dean Hayes, 36, both of Kansas City, Mo.; Sabrena Lynn Morgan, 40, Ryan A. Battagler, 38, and Elgin Eugene Dothage, 41, all of Kearney, Mo.; Paula Rae Scott, 48, Anthony Ray Stevenson, 45, and Rodney Earl King, 51, all of Excelsior Springs, Mo., Jason Daniel Davis, 43, of Liberty, Mo.; Taylor Lee Syas, 25, of Polo, Mo.; Brian Michael Bowers, 34, of Richmond, Mo.; Franklin Charles Carter, 28, of Grandview, Mo., and Jay Harrison Lee Carder, 31, of Cowgill, Mo.
Four defendants have been sentenced after pleading guilty to their roles in the conspiracy to distribute methamphetamine. Gary Dewayne Brown, 37, of Cowgill, was sentenced to 12 years and seven months in federal prison without parole. Ronald Louis Roberts, 54, of Lathrop, Mo., was sentenced to 10 years and six months in federal prison without parole. Brittney James Brehm, 38, of Bland, Mo., was sentenced to six years and 11 months in federal prison without parole. Darin Gene Berry, 51, of Excelsior Springs, was sentenced to four years and five months in federal prison without parole.
Under federal statutes, Brammer, Kirtley, Love, Campbell and Schreier are each subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades, Bradley K. Kavanaugh and Matt Moeder. It was investigated by the Clay County Drug Task Force, the Missouri State Highway Patrol, the Caldwell County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force and the DEA.
Federal Jury Convicts San Antonio Man for Scheme to Defraud the Veterans Affairs Disability Compensation ProgramRead the Press Release
Mack Cole, Jr., age 54, of San Antonio, faces federal prison time after a jury this afternoon found him guilty of scheming to defraud the Department of Veterans Affairs Disability Compensation Program announced United States Attorney Richard L. Durbin, Jr.
In San Antonio this afternoon, a federal jury convicted Cole on four counts of health care fraud and two counts of making false statements in a matter involving a health care benefit program.
Evidence presented during trial revealed that Cole, who was deployed with the Kansas Army National Guard to Kosovo in 2004, injured his lower back in a state-side training accident prior to the deployment.
In 2006, Cole was granted military retirement and was later deemed eligible for monthly benefits as a retired disabled veteran. The jury found that Cole misrepresented the severity of his service-connected injuries in order to collect a higher level of benefits, adaptations to his residence, and extensive durable medical equipment. Special Agents of the Department of Veterans Affairs Office of Inspector General (VA OIG) conducted video surveillance of Cole, who represented to his VA physicians that he was not able to walk. Over the course of several months, Special Agents of the VA OIG recorded video of Cole mowing his front lawn, walking around his driveway and lawn without assistance, and otherwise demonstrating that he had the ability to walk.
Cole remains on bond pending sentencing scheduled for September 21, 2017, before Chief United States District Judge Orlando L. Garcia. Cole faces up to ten years imprisonment on each of the health care fraud convictions, and up to five years on each of the false statement convictions.
Special Agents with the VA OIG investigated this case. Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.
Erie Man Charged with Violating Federal Laws Relating to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
The three-count indictment named Nathan Richard Kosmatine, 30, as the sole defendant.
According to the indictment presented to the court, Kosmatine distributed, received and possessed computer images and movies depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 60 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Man Charged with Producing, Possessing Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
The nine-count indictment named Michael Robert Heinrich, 66, as the sole defendant.
According to the indictment presented to the court, Heinrich took sexually explicit photos of two minor victims who were under the age of five. Heinrich also possessed computer images depicting other minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 260 years in prison, a fine of $2,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Epsom Man Sentenced to 70 Month on Federal Firearms ChargeRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Christopher Barker, 24, of Epsom, New Hampshire, was sentenced on Tuesday to serve 70 months in federal prison for being a previously convicted felon in possession of a firearm.
According to pleadings filed with the court and statements made at the sentencing hearing, Concord Police conducting an undercover operation arranged to purchase a firearm from Barker in March 2016. When Barker arrived at the deal, Concord Police arrested him, seizing two firearms from his vehicle. At the time, Barker was prohibited from possessing any firearms as a result of a previous felony conviction.
Barker pleaded guilty to the charges on February 28, 2017. After being released from prison, he will be on supervised release for three years.
“The United States Attorney’s Office is committed to working with our law enforcement partners in order to prevent violence and to keep firearms out of the hands of criminals.” Acting U.S. Attorney Farley said. “I commend the work of the Concord Police and the other law enforcement agencies in this case. Their hard work helps to keep our community safe.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and by the Police Departments of Concord and Lebanon, New Hampshire, and Hartford, Vermont, as well as by the Merrimack County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorneys Georgiana Konesky and Shane Kelbley.
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Dominican Republic Man Pleads Guilty to Possession of a Firearm by an Illegal AlienRead the Press Release
St. Thomas, USVI – Cristian Lopez-Moncion, 35, of the Dominican Republic, pleaded guilty today in federal court on St. Thomas to possession of a firearm by an illegal alien, Acting United States Attorney Joycelyn Hewlett announced.
According to the plea agreement filed with the court, on August 6, 2016, the Virgin Islands Police Department (VIPD) responded to Main Street, after a report of shots fired. Lopez-Moncion admitted that he was in possession of a Glock 9mm firearm. The Glock was examined and determined that it had been modified to operate as a fully automatic firearm. It was determined that Lopez-Moncion is not a legal resident of the United States and is not licensed to possess a firearm in the Virgin Islands.
Lopez-Moncion faces a maximum sentence of 10 years in prison and a $250,000 fine. A sentencing date has been set for October 13, 2017.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the VIPD. The case was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Dayton Men Sentenced for Dealing Heroin, Fentanyl that Resulted in User DeathsRead the Press Release
DAYTON – Antonio J. Spiva, 25, and Charles M. McBeath, 33, both of Dayton, were sentenced in U.S. District Court this week for conspiracy to possess with intent to distribute heroin and fentanyl that resulted in the death of at least two individuals. Each defendant pleaded guilty in January.
Spiva was sentenced yesterday to 180 months in prison and McBeath was sentenced this afternoon to 198 months in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Montgomery County Sheriff Phil Plummer, Dayton Police Chief Richard Biehl and other members of the Heroin Eradication Apprehension Team (HEAT) announced the sentences handed down by U.S. District Judge Thomas M. Rose.
Both men were originally indicted by a federal grand jury in December 2015 and have remained in custody since. According to court documents, through late May 2015, McBeath and Spiva distributed heroin, fentanyl and crack cocaine while maintaining operations at residences located on E. Fifth Street, S. Torrence Street and S. Horton Street, all in Dayton. Their distribution of fentanyl resulted in the overdose death of two individuals and the non-fatal overdose of at least three others.
“The sentences handed down in this case should send a clear message about how seriously we are pursuing, and will continue to pursue, the dealers plaguing our communities with opiates,” U.S. Attorney Glassman said.
“Trafficking in opiates is selling death to those that are vulnerable,” Dayton Police Chief Richard Biehl said. “Justice demands accountability for the harm and death that results from these actions.”
“Federal prosecutions that target individuals who distribute heroin and/or synthetic opioids which result in overdose deaths are a top priority of the Drug Enforcement Administration,” Assistant Special Agent in Charge Michael K. Bulgrin said. “This investigation is a great example of how strong partnerships and cooperative efforts among federal, state, and local law enforcement agencies are holding such individuals responsible for the harm they bring to the community.”
The HEAT initiative was announced in May 2015 and includes the U.S. Attorney’s Office, DEA, Dayton Police Department, Montgomery County Sheriff’s Office, Montgomery County Coroner’s Office, and the Miami Valley Regional Crime Laboratory. The intent of the task force is to prosecute heroin and fentanyl suppliers who contribute to both fatal and non-fatal overdoses in Montgomery County.
U.S. Attorney Glassman commended the investigation of this case by HEAT, and Assistant U.S. Attorneys Sheila G. Lafferty and Dominick S. Gerace, who are prosecuting the case.
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Convicted Felon Sentenced to Federal Prison for 3rd Firearm OffenseRead the Press Release
PROVIDENCE, R.I. – Christopher Rene, 26, of Providence, was sentenced on Tuesday to 72 months in federal prison and 3 years supervised release for being a felon in possession of a firearm and for violating the terms of his supervised release on a previous conviction in federal court for being a felon in possession of a firearm.
Rene pleaded guilty on November 22, 2016 to being a felon in possession of a firearm and to violating the terms of supervised release. He was arrested by Providence Police on February 4, 2016. It was the third arrest of Rene on firearm charges.
Rene’s sentence, imposed by U.S. District Court Judge John J. McConnell, Jr., is announced by Acting United States Attorney Stephen G. Dambruch, Providence Police Chief Colonel Hugh T. Clements, Jr., and Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI.
According to court records, in August 2009, Rene was convicted in Rhode Island state court on drug trafficking and firearm charges and sentenced to 7 years in prison, 6 months to serve and 78 months of probation. In a separate matter, in March 2011, Rene was convicted in federal court of being a felon in possession of a firearm. He was sentenced to 46 months in prison and 3 years of supervised release.
On February 10, 2015, while on federal supervised release and state probation, Rene was among 35 individuals arrested during a series of investigations into violent crimes in Providence as part of the Rhode Island Violent Crime Initiative. Based on information gathered by law enforcement, Rene was arrested for violating the terms of his federal supervised release. He was sentenced to six months in federal prison and an additional 30 months of federal supervised release.
According to state court documents, in February 2016, during an investigation into drug trafficking in Providence, Providence Police seized 41 bags of crack cocaine and .40 caliber handgun from vehicles accessed by Rene. Rene was detained shortly after he exited one vehicle and placed the handgun in the second vehicle.
The most recent case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Providence Police Department with the assistance of the FBI’s Safe Streets Task Force.
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Convicted Felon Sentenced to 8 Years in Federal Prison for Illegally Possessing Handgun and Using It to Intimidate Ex-GirlfriendRead the Press Release
CHICAGO — A federal judge has sentenced a convicted felon to eight years in prison for illegally possessing a handgun, which he used to intimidate his ex-girlfriend.
JOSEPH RILEY, 44, of Chicago, possessed the Sig Sauer P229 .40-caliber pistol on at least four occasions in 2015, according to his written plea agreement. During one of those occasions, Riley brandished the gun and used it to intimidate his ex-girlfriend, according to the plea agreement.
Riley was not lawfully allowed to possess the gun because he had prior felony convictions, including two felonies for illegally possessing firearms.
Riley pleaded guilty earlier this year to one count of illegal possession of a firearm by a felon. U.S. District Judge John J. Tharp Jr. on Tuesday imposed the 96-month sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department provided valuable assistance.
“Each instance in which defendant possessed the gun was dangerous and threatening,” Assistant U.S. Attorney Matthew L. Kutcher argued in the government’s sentencing memorandum. The government’s memorandum noted Riley’s prior firearm convictions and the seriousness of the current offense, and it requested that the Court impose the 96-month sentence, which was significantly above the advisory guideline range.
Connecticut U.S. Attorney's Office Celebrates Annual U.S. Attorney's AwardsRead the Press Release
The United States Attorney’s Office for the District of Connecticut hosted its annual United States Attorney’s Office Law Enforcement Awards Ceremony this morning in New Haven. The ceremony at the City of New Haven’s aldermanic chambers recognized more than 160 federal agents, police officers and community members for their investigative efforts and other contributions to approximately 30 significant federal criminal prosecutions and civil cases in Connecticut.
The highlighted cases demonstrate the broad variety of work performed by local, state and federal law enforcement agencies in Connecticut. Approximately 60 of the award recipients are members of local police departments from across Connecticut.
“Today, we proudly recognize our law enforcement partners and community members for their exceptional achievements this past year and their courageous dedication to ensuring the safety and security of our communities,” said U.S. Attorney Deirdre M. Daly. “These award recipients have served the people of Connecticut and our nation with distinction and integrity, and it has been my sincere honor to work with them in the cause of justice.”
Several special awards were presented to law enforcement officers, state employees and community members during the ceremony.
The U.S. Attorney’s Award for Outstanding Investigator was presented to Sergeant Karl Jacobson of the New Haven Police Department for his many years as an exceptional law enforcement officer, his work on behalf of Project Longevity and his command of the NHPD’s Intelligence Unit.
The U.S. Attorney’s Award for Outstanding Partnership was presented to the Connecticut Forensic Science Laboratory, under the leadership of Dr. Guy Vallaro, for its critical assistance in numerous firearm, drug and violent crime investigations.
The U.S. Attorney’s Outstanding Community Award was presented to Amarjit Singh, Swaranjit Singh Khalsa and Maninder Arora, members of the Sikh community who have volunteered hundreds of hours to Department of Justice cultural awareness trainings for police officers across the state.
U.S. Attorney’s Outstanding Task Force Officer Awards were presented to Detective Matthew Greenstein of the Connecticut State Police, Detectives Josh Lewis and Abhilash Pillai of the Hartford Police Department, Officer Brian McPadden of the Shelton Police Department, Detective Michael Chaves of the Monroe Police Department, and Officer Jeffrey Poulin of the Wethersfield Police Department.
The Civil Division Unit Award was presented to the attorneys and staff of the State of Connecticut’s Office of Protection and Advocacy for their work to ensure that people with disabilities have equal access to public facilities and programs, educational opportunities, hospitals, employment, voting, recreational activities, housing and financial institutions.
The National Security and Major Crimes Unit Award was presented to Special Agent Wendy Bowersox of the FBI’s Violent Crimes Against Children Squad for her dedicated investigative work in child exploitation and sex trafficking cases.
The Financial Fraud and Public Corruption Unit Award was presented to FBI Special Agent Jeff Waterman for his exceptional work on significant public corruption investigations since 2009.
The Violent Crimes and Narcotics Unit Award was presented to the U.S. Attorney’s Office Heroin Education Action Team (HEAT), notably 12 HEAT participants who have had a child or other family member die from an opioid overdose. During the 2016-2017 school year, HEAT delivered opioid awareness presentations that reached more than 20,000 high school and middle school students across Connecticut. They also traveled to cities and towns throughout the State for evening presentations to parents and other community members concerned about the opioid epidemic and the dangers of prescription pill abuse.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 63 Assistant U.S. Attorneys and approximately 52 staff members at offices in New Haven, Hartford and Bridgeport.
Columbia County Man Indicted for Forced Labor and Theft of Social Security BenefitsRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of a superseding indictment charging Guarino Edwards Broccoli, a/k/a Gary Broccoli, a/k/a Gary Edwards (53, Fort White), with three counts of theft of Social Security benefits and one count of forced labor with aggravated sexual abuse. If convicted, he faces a maximum penalty of 10 years’ imprisonment per count for the benefit theft offenses, and up to life in prison for the forced labor charge. The indictment also notifies Broccoli that the United States intends to forfeit his residence and $284,278, representing the proceeds received from the theft of Social Security benefits.
According to the
superseding indictment , Broccoli is charged with theft of child auxiliary benefits for two minor children and theft of disability benefits. He is also charged with knowingly providing and obtaining the services of a female victim by means of force and threats of force, causing her to believe that if she did not perform such labor and services she would suffer serious harm. It is also alleged that this offense included aggravated sexual abuse.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Social Security Administration Office of the Inspector General, the Department of the Treasury Office of Inspector General, the Florida Department of Law Enforcement, the Department of Health and Human Services Office of Inspector General, the U.S. Secret Service, the Columbia County Sheriff’s Office, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ashley Washington.
This investigation is ongoing. The U.S. Attorney’s Office is seeking other potential victims related to this individual and/or the location listed in this indictment. Anyone with additional information is encouraged to contact the FBI -Jacksonville Field Office at 904-248-7000.
Clifton Park Woman Indicted for Social Security Number Fraud SchemeRead the Press Release
ALBANY, NEW YORK – Kristin M. Vargas, age 33, of Clifton Park, New York, was arraigned today on a 9-count indictment charging her with using and selling stolen social security numbers.
The announcement was made by United States Attorney Richard S. Hartunian; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, New York Region; and John F. Grasso, Special Agent in Charge of the Social Security Administration (SSA) Office of the Inspector General, New York Field Office.
The indictment charges Vargas with conspiracy to commit wire fraud, making false statements in loan and credit applications, and misusing social security numbers. The indictment alleges that in 2013 and 2014, Vargas obtained and sold stolen social security numbers (SSNs) over the internet. Vargas advertised these stolen SSNs as “credit profile numbers” and encouraged her customers to use these SSNs in place of their own on credit and loan applications as a means to escape negative credit histories. The indictment further alleges that Vargas used stolen SSNs herself on applications for credit.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Vargas faces up to 20 years in prison, up to 3 years of post-imprisonment supervised release and a maximum $250,000 fine if convicted on all counts of the indictment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Vargas was arraigned today before United States Magistrate Judge Christian F. Hummel. She was released with conditions pending a trial before Senior United States District Judge Thomas J. McAvoy.
This case is being investigated by the Offices of Inspector General of the FDIC and SSA, and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Chyanna Marie Camacho Sentenced to Prison in Ice Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant CHYANNA MARIE CAMACHO, age 40 from Dededo, was sentenced today in District Court to a 70-month term of imprisonment for Attempted Possession of Methamphetamine with Intent to Distribute. The Court also ordered three years of supervised release following imprisonment, 75 hours of community service, and a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On August 11, 2016, CAMACHO pled guilty to an Indictment charging her with Attempted Possession of Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1). The investigation revealed that CAMACHO and other individuals agreed to use the mail system to distribute large quantities of methamphetamine on Guam. On June 28, 2016, federal agents seized a U.S. Postal Service package that concealed over 78.7 grams of methamphetamine. Laboratory tests later determined that the drugs were 98% pure. The investigation further revealed that CAMACHO arranged to have the drugs sent to her in Guam from Bremerton, Washington.
The U.S. Postal Inspection Service, the Drug Enforcement Administration, and the Department of Homeland Security, Homeland Security Investigations conducted the investigation. The case was prosecuted by Rosetta San Nicolas, Assistant United States Attorney for the District of Guam.
Cheyenne County Man Pleads Guilty to Producing Child PornographyRead the Press Release
WICHITA, KAN. – A Cheyenne County man pleaded guilty Wednesday to producing child pornography, U.S. Attorney Tom Beall said.
Brett Nolan Cico, 31, St. Francis, Kan., pleaded guilty as charged to three counts of producing child pornography and three counts of sexual exploitation of a minor while registered as a sex offender. Two of the victims were 14 years old and the other victim was 15 years old.
Sentencing is set for Sept. 11. He faces a penalty of not less than 15 years and not more than 30 years on each production count and 10 years (consecutive) on the other counts. Beall commended the Kansas Bureau of Investigation, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Cherokee County Man Sentenced to 15 Years for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas - A 41-year-old Jacksonville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Abdul Kariem Lugman pleaded guilty on Jan. 12, 2017, to possession with intent to distribute approximately 24 grams of cocaine and was sentenced to 180 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Dec. 21, 2015, law enforcement officers responded to a complaint of suspected drug dealing at the Home Place Inn in Jacksonville. As deputies approached the reported room, they observed the door was open and Lugman could be seen sitting in a chair with a small white rock-like substance in his hand near a digital scale. Lugman rushed towards the open door and was taken into custody. A search warrant was executed at the hotel room and officers discovered crack cocaine, cash, digital scales, a police scanner, firearms and other drugs and drug paraphernalia.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Cherokee County Sheriff’s Office, Jacksonville Police Department, and Texas Department of Public Safety – Law Enforcement Division. This case was prosecuted by Assistant U.S. Attorney Jim Noble.
Canadian Man Pleads Guilty to Conspiring to Defraud the United States and Steal Government FundsRead the Press Release
A Canadian man pleaded guilty today in Rochester, New York to conspiring to defraud the United States and commit theft of government funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney James P. Kennedy Jr. for the Western District of New York.
According to documents filed with the court, Timothy Johnston, 36, of Calgary, Alberta, Canada, along with other Canadian citizens, participated in a scheme to file fraudulent claims for refund with the Internal Revenue Service (IRS). In March 2009, Johnston filed a fraudulent nonresident alien income tax return seeking a refund of $642,947.26. On this return, Johnston falsely claimed that the requested refund represented the amount of income taxes that had been withheld and paid to the IRS on his behalf. After the IRS issued the refund to Johnston, he entered the United States and opened a bank account in Rochester, New York to deposit the fraudulently obtained check. Between August 2009 and December 2011, Johnston caused funds to be transferred from this account to a bank account in Canada and accounts in the United States in the names of his co-conspirators.
U.S. District Judge Frank P. Geraci Jr. of the Western District of New York scheduled sentencing for Sept. 12. Johnston faces a statutory maximum sentence of five years in prison, a period of supervised release and monetary penalties. As part of his plea agreement, Johnston agreed to pay restitution to the IRS in the amount of $642,947.26.
Johnston is the third Canadian citizen to be convicted for his role in this scheme. In January 2016, Kevin Cyster of Burlington, Ontario, was sentenced to 135 months in prison after a jury convicted him of conspiring to defraud the United States and commit theft of government funds, making a false claim against the United States and transferring stolen money in foreign commerce. In June 2014, Renee Jarvis, also of Ontario, pleaded guilty to conspiring to defraud the United States and commit theft of government funds. She is awaiting sentencing.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Kennedy thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, and Assistant U.S. Attorney John Field of the Western District of New York, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Canadian Man Pleads Guilty to Conspiring to Defraud the United States and Steal Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, NY, – Acting U.S. Attorney James P. Kennedy, Jr. and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today that Timothy Johnston, 36, of Calgary, Alberta, Canada, pleaded guilty to conspiring to defraud the United States and commit theft of government funds before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison. As part of his plea agreement, Johnston agreed to pay restitution to the IRS in the amount of $642,947.26.
According to Assistant U.S. Attorney John J. Field and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who are handling the case, the defendant, along with other Canadian citizens, participated in a scheme to file fraudulent claims for refund with the Internal Revenue Service (IRS). In March 2009, Johnston filed a fraudulent nonresident alien income tax return seeking a refund of $642,947.26. On this return, Johnston falsely claimed that the requested refund represented the amount of income taxes that had been withheld and paid to the IRS on his behalf. After the IRS issued the refund to Johnston, he entered the United States and opened a bank account in Rochester, NY to deposit the fraudulently obtained check. Between August 2009 and December 2011, Johnston caused funds to be transferred from this account to a bank account in Canada and accounts in the United States in the names of his co-conspirators.
Johnston is the third Canadian citizen to be convicted for his role in this scheme. In January 2016, Kevin Cyster of Burlington, Ontario, was sentenced to 135 months in prison after a jury convicted him of conspiring to defraud the United States and commit theft of government funds, making a false claim against the United States and transferring stolen money in foreign commerce. In June 2014, Renee Jarvis, also of Ontario, pleaded guilty to conspiring to defraud the United States and commit theft of government funds and is awaiting sentencing.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett, New York Field Office.
Sentencing is scheduled for September 12, 2017, at 3:00 p.m. before Judge Geraci.
Camden Man Sentenced to 210 Months in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Christopher J. Turner, aka Tank, age 41, of Camden, was sentenced yesterday to 210 months in federal prison followed by three years of supervised release on two counts of Distribution of Crack Cocaine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, in 2014 the Camden Police Department, the 14th Judicial Drug Task Force, and the FBI were investigating drug trafficking in the Camden area. With the help of confidential informants, investigators were able to conduct two controlled purchases from Turner in the Spring of 2014. Turner was named in a four-count federal indictment in July of 2015 and pled guilty to two charges of Distribution of Cocaine Base in April of 2016.
At sentencing, the District Court found that Turner conspired with others who obtained crack cocaine from Little Rock for distribution in the Camden area. The Court determined that under the Sentencing Guidelines, Turner was responsible for the distribution of over 20 kilograms or 44 pounds of crack cocaine over a three-year period from 2012 through 2015. In arriving at a sentence, the Court also took into account Turner’s prior felony convictions for Conspiracy to Distribute Controlled Substances, Forgery, and Sexual Abuse in the First Degree.
The Federal Bureau of Investigation, the Camden Police Department, and the 13th Judicial Drug Task Force investigated the case. Assistant United States Attorneys Ben Wulff and Graham Jones prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Buxton Man Sentenced to 20 Years on Drug and Firearms Trafficking ChargesRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Dale Pinkham, 57, of Buxton, Maine, was sentenced yesterday in U.S. District Court in Portland to 20 years in prison following convictions for Conspiracy to Distribute Heroin, Conspiracy to Possess Stolen Firearms and Attempted Witness Tampering.
co-conspirators, Dale M. Pinkham Jr., 26, Raymond T. Pinkham, 23, and Robert C. Bean-Pinkham, 21, also of Buxton, Maine, pled guilty and were sentenced by the Court last year. In April 2016, Robert Bean-Pinkham was sentenced to 40 months in prison for conspiring to possess and possessing stolen firearms. That same month Dale Pinkham Jr. was sentenced to 64 months in prison for conspiring to distribute heroin, conspiring to possess stolen firearms and possessing firearms as a prohibited person. In May 2016, Raymond Pinkham was sentenced to 52 months in prison for conspiring to possess and possessing stolen firearms.
According to court records, from around November 2012 until November 2014, Pinkham conspired with members of his family and others to distribute heroin. Pinkham traveled with Dale Pinkham Jr. to obtain heroin from a source in the Lawrence, Massachusetts area. On December 6, 2013, a search warrant executed at the Pinkhams’ residence in Buxton resulted in the seizure of about 20 grams of heroin and numerous firearms. Agents also recovered a stolen firearm from a vehicle operated by Raymond Pinkham. On October 11, 2014, a search warrant executed at the Pinkhams’ Buxton residence resulted in the seizure of seven stolen firearms. In November 2014, law enforcement agents recovered 11 additional stolen firearms possessed by the co-conspirators. The Court found that between May 2013 and September 2014, Pinkham was distributing no less than 200 grams of heroin per month. The Court also found that Pinkham encouraged his heroin customers to commit thefts and burglaries in order to obtain valuable items to trade for heroin, including firearms, electronics and building materials. Pinkham also traded firearms to his Massachusetts supplier in exchange for heroin.
Pinkham was arrested on October 11, 2014, and has remained in state or federal custody since that date. While incarcerated, the Court found, Pinkham directed family members and co-conspirators to relocate stolen firearms from the Buxton residence to avoid their recovery by law enforcement. Writing from jail, Pinkham directed family members to locate and threaten suspected government witnesses, provide false information to law enforcement, and contact his heroin source in Massachusetts in an effort to perpetuate the drug trafficking conspiracy.
The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Maine State Police, with assistance from the Maine Drug Enforcement Agency, the York and Cumberland County Sheriff’s Offices, the Buxton Police Department, and the Office of the Maine Attorney General. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Apopka Resident Sentenced to More Than 15 Years for Multiple Gun and Drug ChargesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Jesse B. Ingram, Jr. (35, Apopka) to 15 years and 5 months in federal prison for being a felon in possession of a firearm, attempting to possess with the intent to distribute a controlled substance, and possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty on March 29, 2017.
According to court documents, Ingram possessed a firearm while attempting to distribute a substance that he believed was heroin. As a previously convicted felon, he is prohibited from carrying a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Orange County Sheriff’s Office, and the Apopka Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Albuquerque Woman Sentenced for Harboring Escaped FelonRead the Press Release
ALBUQUERQUE – Colleen Calamia, 38, of Albuquerque, N.M., was sentenced today in federal court to 12 months and 21 days in prison, which she has already served, followed by three years of supervised release for harboring and concealing a federal fugitive. The sentence was announced by Acting U.S. Attorney James D. Tierney and U.S. Marshal Conrad E. Candelaria.
Calamia was arrested in May 2016, on a criminal complaint charging her with harboring her husband, Mario Montoya, 31, after he absconded from a halfway house in Albuquerque on May 20, 2016. Court records reflect that Montoya, who was under indictment for being a felon in possession of a firearm and theft of mail, was released from federal custody on an order requiring him to reside in an Albuquerque-area halfway house and to comply with other conditions. According to the complaint, Montoya violated the conditions of his release on May 20, 2016, by absconding from the halfway house and violating other release conditions. Montoya fled from the halfway house in a black sport utility vehicle.
On May 20, 2016, the court issued an emergency warrant authorizing Montoya’s arrest for violating his release conditions. According to the criminal complaint, on May 24, 2016, the U.S. Marshals Service (USMS) learned that Montoya was frequenting a residence located at 312 Western Skies (the residence) in Albuquerque. While conducting surveillance near the residence, USMS Deputies and Task Force officers allegedly observed Calamia driving a black Escalade that parked in front of the residence. They then observed Calamia and Montoya exit the vehicle and move objects from the vehicle and into the residence.
According to the complaint, Calamia then left the residence in the black Escalade and USMS Deputies executed a traffic stop on her vehicle. When the Deputies questioned Calamia about Montoya’s whereabouts, she told them that Montoya was alone in the residence. When a USMS arrest team attempted to serve the arrest warrant on Montoya, he fired upon the deputies, initiating an exchange of gunfire. After the arrest team was able to retreat to a safe location, a second team later entered the residence. The second team found Montoya in a closet; he had been struck in the exchange of gunfire and was dead.
Calamia was subsequently indicted on June 14, 2016, and charged with aiding and abetting an escape of a convicted felon on May 20, 2016, and concealing a person from arrest on May 24, 2016. On Nov. 7, 2016, Calamia pled guilty to aiding and abetting an escape and admitted that on May 20, 2016, she aided and abetted the escape of Montoya from an Albuquerque-area halfway house.
The USMS investigated this case, which was prosecuted by Assistant U.S. Attorney Jacob A. Wishard. Mr. Wishard was also prosecuting the case against Montoya, which was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service.
Albany Man Sentenced to 54 Months in Connection with Heroin Overdose DeathRead the Press Release
ALBANY, NEW YORK – Ronald T. Showers, age 42, of Albany, was sentenced today to 54 months in prison, to be followed by 3 years of supervised release, for possessing and intending to distribute heroin that caused the death of a 19-year-old woman.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Showers pled guilty in January 2017 to possessing while intending to distribute heroin. Showers admitted that on September 13, 2014, he hid the heroin in a car belonging to a 19-year-old woman residing in Schenectady, who died from a heroin overdose the following day.
In sentencing Showers, United States District Judge Mae A. D’Agostino found that the heroin that killed the 19-year-old woman was the heroin that Showers had placed in the woman’s car. Judge D’Agostino told Showers, “You gave the victim access to the drugs that extinguished her life.” She added, “When you leave heroin in a 19-year-old’s car, bad things happen. And a tragedy happened here.”
This case was investigated by the FBI, Schenectady Police Department, and the New York State Police, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Albany Man Arrested on Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Christopher J. Pratt, age 53, of Albany, appeared today in federal court on charges that he possessed child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint filed against Pratt alleges that two child pornography videos were distributed from a computer at his home. When investigators executed a search warrant at Pratt’s home, they found a computer containing additional child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
Today, United States Magistrate Judge Christian F. Hummel ordered Pratt detained pending further proceedings.
The charge filed against Pratt carries a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and the Albany County Sherriff’s Office, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Tuesday 13 June 2017
Woman Arrested for Wire Fraud, Theft of Government Money, and Making a False Statement to the GovernmentRead the Press Release
St. Croix, USVI – Aesha Rivers, 41, made her initial appearance Monday before U.S. Magistrate Judge George W. Cannon after being indicted on 75 counts of wire fraud, theft of government money, and making a false statement to the government, Acting United States Attorney Joycelyn Hewlett announced. Judge Cannon released Rivers on an unsecured bond.
According to the indictment, Rivers knowingly devised a scheme to unlawfully use her Overseas Housing Allowance (OHA) to obtain government money, by means of wire, that she was not entitled to receive. Rivers was a member Virgin Islands National Guard (VING) and between June 1, 2011, and June 20, 2015, she applied for and received OHA funds by submitting fraudulent applications for federal funds.
If convicted, Rivers faces a maximum penalty of 20 years in prison for each of the wire fraud counts; 10 years in prison for theft of government money; and five years in prison for making a false statement.
This case is being investigated by the U.S. Army CID–Major Procurement Fraud Unit. It is being prosecuted by Assistant U.S. Attorney Anna A. Vlasova.
Acting United States Attorney Hewlett reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
University of Rochester to Pay More Than $100,000 to Resolve False Claims Act LawsuitRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian and New York State Attorney General Eric. T. Schneiderman announced today that the University of Rochester (UR), which among other things operates a teaching hospital based in Rochester, New York, will pay $113,722.10 to resolve allegations that it violated the federal and New York False Claims Acts by improperly using a billing modifier on certain healthcare claims at UR’s Flaum Eye Institute, resulting in UR receiving payments to which it was not entitled.
A provider’s use of a modifier on a healthcare claim can allow the provider to receive compensation when it would otherwise be unavailable under applicable regulations. Here, modifier 25 may be added to certain healthcare claims where the provider renders a significant, separately identifiable evaluation and management service to the same patient on the same day as another procedure or other service. Modifier 25 should be used only when the evaluation and management service is above and beyond the usual pre-and-post operative work of a procedure and the need for the additional service is supported by the medical record. By using modifier 25 when the foregoing conditions were not present, UR received higher compensation than it should have received for certain ophthalmology services claims it submitted to government payers. For example, in certain instances UR performed and billed for ophthalmology procedures known as intravitreal injections (i.e. injections into the eye) and then billed modifier 25 for additional evaluation and management services to the same patients, although the medical records lacked sufficient documentation to support billing for care beyond the injection procedure itself.
This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, knowns as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $19,332.76 of the settlement proceeds. This case is docketed with the United States District Court for the Northern District of New York under number 5:15-cv-266 (MAD/TWD).
UR disclosed its improper use of modifier 25 to the government before becoming aware of the lawsuit.
“Today’s settlement reflects my office’s commitment to using the False Claims Act to protect the public fisc and to vigorously investigative cases brought to our attention by whistleblowers,” said U.S. Attorney Richard S. Hartunian. “It also reflects UR’s self-disclosure of the conduct at issue to the government, a practice that this Office commends, before UR had knowledge that a relator had filed a qui tam complaint.”
“When an organization catches an error in their Medicaid billing and self-reports, it prevents hardworking New York taxpayers from having to absorb the cost,” said New York Attorney General Eric T. Schneiderman. “I commend UR for their willingness to come forward, and for their cooperation throughout this matter. Reimbursing Medicaid for false claims is vital to the integrity of the program, and we will continue working to ensure that all providers repay what is owed.”
“This settlement is another example of our commitment to holding health care providers accountable for their billing practices,” said Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations. “HHS-OIG will continue to protect the federal health care programs intended for our most vulnerable Americans.”
This investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the New York State Attorney General’s Office, and U.S. Department of Health and Human Services Office of the Inspector General. The United States was represented by Assistant United States Attorney Michael D. Gadarian and New York State was represented by Special Assistant Attorney General Paul R. Berry.
U.S. Attorney’s Office Enters into Agreement with Town of Wales to Ensure Physical Accessibility of Town Hall and Senior CenterRead the Press Release
BOSTON – Acting United States Attorney William Weinreb announced today that his office has entered into a settlement agreement with the Town of Wales to ensure the accessibility of Town Hall and the Senior Center under Title II of the Americans with Disabilities Act (ADA).
“Ensuring that individuals with disabilities have unimpeded ability to access local government services is critical,” said Acting U.S. Attorney Weinreb. “I would like to commend the Town of Wales for its cooperation and eagerness to address the accessibility issues identified during our review and its commitment to ensuring that every resident can access public services.”
The agreement is the result of a compliance review conducted by the Civil Rights Unit in response to a complaint filed with the United States Attorney’s Office. This matter was handled by Assistant U.S. Attorney Michelle Leung of Weinreb’s Civil Rights Unit and Jessica Driscoll of Weinreb’s Civil Division.
Federal law requires state and local government entities to provide individuals with disabilities equal access to facilities. The ADA authorizes the U.S. Department of Justice to undertake periodic reviews of covered establishments. For more information on the ADA, visit their website at www.ADA.gov.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two Louisiana Men Sentenced for Conspiracy to Sell Devices to Cheat Vehicle Emissions TestsRead the Press Release
SYRACUSE, NEW YORK – Charles Edward Bayer, Jr., 33, and Darren Kattan, 31, of Lafayette and Baton Rouge, Louisiana, were sentenced today in United States District Court in Syracuse for conspiring to commit mail fraud and violate the Clean Air Act by developing and selling simulator devices programmed to bypass motor vehicle emissions inspections tests, announced United States Attorney Richard S. Hartunian and Vernesa Jones-Allen, Special Agent in Charge, United States Environmental Protection Agency-Criminal Investigation Division (“EPA-CID”), New York Area Office. Bayer and Kattan were each sentenced to three years of Probation, and each of them will spend the first four months of Probation on house arrest. In addition, Bayer was ordered to pay a fine of $5,000, and Kattan was ordered to pay a fine of $10,000.
In pleading guilty, Darren Kattan admitted that between 2010 and 2013 he designed, built, and sold motor vehicle simulator devices that allowed vehicles to bypass state motor vehicle emissions inspections tests. Kattan admitted that, with other co-conspirators (including Bayer), he helped create and distribute at least 170 simulator devices throughout the country. Kattan was arrested by Special Agents of the Environmental Protection Agency-Criminal Investigation Division (“EPA-CID”) in an undercover sting operation in Louisiana after Kattan turned over the source codes for his devices in exchange for a $10,000 payment.
As part of his guilty plea, Charles Edward Bayer admitted that between 2011 and 2013 he purchased Kattan’s remaining inventory of simulator devices and software and continued to sell and manufacture these devices knowing that they were used to illegally bypass motor vehicle inspections.
This case was investigated by EPA-CID and the New York State Department of Environmental Conservation, Division of Law Enforcement, and was prosecuted by Assistant U.S. Attorney Michael F. Perry and Senior Trial Attorney Todd Gleason, United States Department of Justice, Environmental and Natural Resources Division.
Twice Federally Convicted Felon Found Guilty by Federal Jury of Methamphetamine Trafficking OffensesRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the conviction of ELFRED WILLIAM PETRUK, 38, for methamphetamine trafficking-related offenses. After a four-day trial before U.S. District Judge Ann D. Montgomery in Duluth, Minn., the jury found PETRUK guilty of one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine. A sentencing hearing has been set for October 18, 2017.
“We've had Elfred Petruk on our radar for a number of years, and now after this third federal indictment and conviction, we couldn't be more satisfied with the jury's decision yesterday,” said Special Agent in Charge James Modzelewski of ATF's Saint Paul Field Division. “We target Minnesota's most violent offenders and through the shared perseverance of ATF and our partners on the Lake Superior Drug and Violent Crime Task Force, we can finally put this incredibly violent man behind bars.”
According to the evidence presented at trial, in July 2016, law enforcement agents received information that PETRUK, who had just been placed on federal supervised release at the time, was trafficking large quantities of methamphetamine from the Twin Cities area to the Twin Ports area. In September 2016, on multiple occasions, law enforcement agents observed PETRUK traveling from Twin Ports to the Twin Cities, making short-duration stops at remote locations and at homes of known methamphetamine users and dealers. On September 20, 2016, agents stopped and detained PETRUK and, upon execution of a search warrant, recovered more than 800 grams of methamphetamine hidden in a compartment under the hood of PETRUK’S vehicle.
According to the evidence presented at trial and documents filed in court, following PETRUK’S arrest, law enforcement agents executed search warrants at several of the locations in Duluth, Minn. and Superior, Wisc. suspected to be involved with PETRUK’S drug-trafficking activities. During the course of the searches, law enforcement agents seized a loaded 9mm handgun, methamphetamine, cash, digital scales, packaging materials, and other drug-trafficking paraphernalia.
The defendant has multiple prior state court convictions and two prior federal convictions. In September 2006, PETRUK pleaded guilty in federal district court to one count of possession with intent to distribute methamphetamine and was sentenced to 120 months in prison. In July 2015, PETRUK was found guilty by a federal jury of one count of corruptly attempting to obstruct an official proceeding and was sentenced to 46 months in prison.
This case is the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Duluth Police Department, the Superior, Wisconsin Police Department, and the Lake Superior Drug and Violent Crime Task Force. Assistant U.S. Attorneys Allen A. Slaughter and Benjamin Bejar prosecuted the case.
Defendant Information:
ELFRED WILLIAM PETRUK, 38
Duluth, Minn.
Convicted:
- Conspiracy to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Three Men Sentenced for Multiple Cell Phone Store Armed RobberiesRead the Press Release
LAS VEGAS, Nev. – Three men from Las Vegas were sentenced on Tuesday to federal prison for their roles in a string of armed robberies of cell phone stores, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Fred Oaxaca, 20; Martin Garcia, 20; and Luis Cuevas, 22, were sentenced to 120 months, 120 months, and 85 months, respectively, by U.S. District Judge Richard F. Boulware II. Another defendant, Marcus Hammon, 22, was sentenced to 105 months by U.S. District Judge Kent J. Dawson on March 28, 2017.
On Dec. 13, 2016, Hammon pleaded guilty to one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence. On Dec. 15, 2016, Oaxaca pleaded guilty to three counts of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence; Garcia pleaded guilty to two counts of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence; and Cuevas pleaded guilty to one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence.
According to their individual plea agreements, on Feb. 16 and 25, 2016, Oaxaca, Garcia, and Cuevas committed a robbery of an AT&T store and a Verizon Wireless store. Hammon also participated in the Feb. 25, 2016 Verizon Wireless store robbery. During the course of the robberies, Oaxaca, Garcia, and Hammon brandished firearms and at gunpoint ordered the employees and customers to go to the rear of the store and to lay face down on the ground. They stole cell phones, electronics, and cash from the store and fled the scene in a vehicle being driven by Cuevas, who had remained outside.
In addition, Oaxaca admitted that, on Feb. 12 and 18, 2016, he and other co-conspirators committed robberies of two T-Mobile stores. During the course of the robberies, Oaxaca brandished a firearm and at gunpoint ordered the employees to go to the rear of the store and to lay face down on the ground. A co-conspirator then used a zip-tie to secure the employees’ hands behind their back. They stole cell phones, electronics, and cash from the store. In addition, the defendants admitted that the total loss attributed to all of the store robberies was in excess of $95,000, but less than $500,000.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorney Phillip N. Smith Jr.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Suburban Musician Arrested on Child Pornography Charges for Allegedly Enticing Underage Girls to Produce Sexually Explicit VideosRead the Press Release
CHICAGO — Federal authorities have arrested a west suburban musician for allegedly enticing underage girls to produce sexually explicit videos of themselves.
AUSTIN JONES, 24, of Bloomingdale, chatted with two underage girls on Facebook and enticed them to produce pornographic videos of themselves and send them to him, according to a criminal complaint and affidavit filed in federal court in Chicago. Jones is a musician with a significant following on social media sites such as Facebook and Twitter, the complaint states. His music videos have been viewed millions of times on the Internet, including on YouTube, the complaint states.
The complaint charges Jones with two counts of producing child pornography. Jones was arrested on Monday at O’Hare International Airport in Chicago. He made his initial court appearance this afternoon before U.S. Magistrate Judge Michael T. Mason. Judge Mason ordered Jones to remain in federal custody until a detention hearing on June 14, 2017, at 2:30 p.m.
The complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and James M. Gibbons, special agent-in-charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Chicago. The Illinois Attorney General’s Office’s Internet Crimes Against Children Task Force and the Bloomingdale Police Department participated in the investigation.
According to the complaint, Jones chatted with one victim in August 2016, and with the other victim last month. The victim from last August stated in a Facebook chat with Jones that she was his biggest fan, the complaint states. Jones repeatedly told her that she was “lucky” to have his attention, and that she needed to “prove” that she was his biggest fan by producing the sexually explicit videos and sending them to him, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of production of child pornography is punishable by a minimum sentence of 15 years in prison and a maximum of 30 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
HSI led the investigation. The government is represented by Assistant U.S. Attorney Katherine Neff Welsh.
If you believe you are a victim of sexual exploitation, you are encouraged to call the ICE Tip Line at 1-866-DHS2-ICE (1-866-347-2423) or the National Center for Missing and Exploited Children at 1-800-843-5678. The hotlines are available 24 hours a day, seven days a week.
Suburban Chicago Physician Sentenced to 30 Months in Federal Prison on Bribery ChargeRead the Press Release
ROCKFORD — A Suburban Chicago physician was sentenced Monday by U.S. District Judge Frederick J. Kapala to 30 months in federal prison, to be followed by a term of supervised release of one year, for bribery concerning health care programs receiving federal funds.
NEIL SHARMA, 37, of Lemont, who pleaded guilty to the charge on Feb. 2, 2017, has been a licensed Illinois physician since March 2011. Between September 2013 and March 2015, he was the Medical Director of a company identifed in court records as "Company A," a managed care services company that contracted to provide health care services to Medicare and Medicaid patients. As stated in a plea agreement, the State of Illinois contracted with Company A to provide skilled nursing services to patients located in certain facilities. These patients were covered by Medicare, Medicaid, or both. In early 2015, Company A subcontracted with three other companies to provide skilled nursing services. Sharma admitted that from Feb. 13, 2015 to March 13, 2015, he corruptly solicited bribes from an owner of one of the three subcontractors.
In exchange for the bribes, Sharma stated that he would provide the subcontractor with more skilled nursing patients and with additional Medicaid and Medicare patients through Company A’s anti-depressant monitoring program and hospital re-admission program. As stated in the plea agreement, the additional business Sharma promised in exchange for the bribes would bring in millions of dollars to the subcontractor. Sharma accepted cash payments of $2,500 and $7,500 from the owner of the subcontractor before being arrested by FBI agents.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Southern California Resident Sentenced to 34 Months in Prison for Role in Bank Fraud ConspiracyRead the Press Release
SAN FRANCISCO – Michael Inman was sentenced to 34 months in prison for his role in a bank fraud conspiracy, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down June 7, 2017, by the Honorable Charles R. Breyer, U.S. District Judge, following a guilty plea in which Inman admitted he participated in a scheme to steal checks, open fraudulent bank accounts, write fraudulent checks, and deposit stolen and fraudulent checks as part of a bank fraud scheme.
Inman, 55, of Los Angeles, Calif., pleaded guilty on February 8, 2017, to participating in the bank fraud conspiracy. According to the plea agreement, Inman admitted that beginning in January of 2013, he agreed with at least one other person to commit bank fraud. The plea agreement describes a number of transactions in which Inman stole high value cashier’s checks from the victim and he and his co-conspirators used the stolen identity of the victim to write and deposit fraudulent checks. For example, in January of 2013, members of Inman’s conspiracy opened a bank account in the name of the victim and, in February of 2013, a co-conspirator deposited into the account a stolen $99,000 cashier’s check that had been made out to the victim. Similarly, Inman admitted that in June of 2013, co-conspirators opened another two fraudulent accounts and deposited a $99,000 check. Further, Inman admitted participating in a scheme in which people were provided checks drawn on the fraudulent bank accounts.
A grand jury indicted Inman on February 11, 2016, charging him with one count of conspiracy to commit mail fraud, wire fraud, and bank fraud, in violation of 18 U.S.C. § 1349. Pursuant to the plea agreement, Inman pleaded guilty to the conspiracy count.
In addition to the prison term, Judge Breyer sentenced Inman to pay $198,000 in restitution to the victim and to forfeit $198,000. Judge Breyer ordered the defendant to begin serving his sentence on or before August 2, 2017.
Assistant U.S. Attorneys Marc Price Wolf and Claudia A. Quiroz are prosecuting the case with assistance from Kevin Costello, Yanira Osorio, and Lance Libatique. The prosecution is the result of an investigation by the FBI.
South Bay Methamphetamine Trafficker Sentenced to Ten Years in PrisonRead the Press Release
SAN JOSE – Anthonio Rueda-Ayala was sentenced today to 120 months in prison for his role in a conspiracy to possess with the intent to distribute methamphetamine announced United States Attorney Brian J. Stretch and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge, following the entry of Rueda-Ayala’s guilty plea to the charge on December 19, 2016.
According to his plea agreement, Rueda-Ayala, 31, of San Jose, admitted that beginning in June of 2013, and continuing through December of that year, he entered into an agreement with codefendant Marco Antonio Ochoa-Valladares (“Valladares”) and others to possess with the intent to distribute methamphetamine. Specifically, Rueda-Ayala admitted he received approximately fifteen pounds of methamphetamine from Valladares so that he could distribute the methamphetamine in various places in California. The defendant admitted that in August of 2013, he put the methamphetamine in a hidden compartment located under the front passenger seat of his sport utility vehicle and traveled from Modesto to Chowchilla, Calif. Along the way, Rueda-Ayala stopped in Whittier and Corona to distribute portions of the methamphetamine. As he was traveling through Chowchilla, Rueda-Ayala was pulled over by the California Highway Patrol. A search of his vehicle revealed thirteen one-gallon sized zip-lock bags containing crystal methamphetamine in the hidden compartment of the car. Rueda-Ayala acknowledged the zip-lock bags contained 6,334 net grams of actual methamphetamine.
On January 16, 2014, a federal grand jury indicted Rueda-Ayala, Valladares, and three other co-conspirators for their alleged respective roles in the conspiracy to distribute methamphetamine. Each of the co-defendants was charged with participating in the same conspiracy to possess with intent to distribute methamphetamine, in violation of 21 U.S.C. § 846, and 21 U.S.C. § 841(a)(1). Pursuant to his guilty plea, Ramirez pleaded guilty to the charge.
In addition to the prison term, Judge Davila ordered Rueda-Ayala to serve a five-year period of supervised release. Rueda-Ayala currently is out of custody on a secured bond. Judge Davila ordered the defendant to surrender on or before August 16, 2017, to begin serving his sentence. Valladeras pleaded guilty to his role in the conspiracy on January 30, 2017, and on April 20, 2017, Judge Davila sentenced Valladeras to 132 months in prison and five years of supervised release.
Assistant U.S. Attorney Jeffrey Backhus is prosecuting the case with the assistance of Ryka Barghi. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Somersworth Man Sentenced to 78 Months for Credit Union Robbery and Criminal ThreateningRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Eric Rouleau, 37, most recently of Somersworth, New Hampshire, was sentenced to 78 months in federal prison for robbing a credit union and mailing threatening communications.
According to pleadings filed with the court and statements made at today’s hearing, Rouleau robbed the Northeast Credit Union in Rochester on April 22, 2016 by entering the credit union and producing a note demanding money and saying no one would get hurt. After obtaining a sum of money, he left the bank on foot. Images of the robber were captured by the credit union’s surveillance system and distributed to the media. A short time later, Rouleau was positively identified as the robber.
In a matter unrelated to the robbery and while incarcerated pending trial on the robbery charge, Rouleau sent through the United States mail a series of threatening letters to a former girlfriend. A restraining order prohibiting contact with the former girlfriend was in place when one of the letters was mailed.
Rouleau pleaded guilty to the charges on March 3, 2017. After being released from prison, he will be on supervised release for three years. was also ordered to pay restitution to the credit union.
The case was investigated by the Rochester Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Helen White Fitzgibbon and Donald Feith.
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Smith County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas - A 34-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Nyrearae Lewis pleaded guilty on Jan. 5, 2017, to possession with intent to distribute crack and powder cocaine and was sentenced to 57 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on May 5, 2016, Lewis transported approximately 130 grams of cocaine to a residence in Tyler, Texas, with the intent to sell the cocaine. Once Lewis arrived at the house, he was assisted by the homeowner in converting some of the cocaine to approximately 44 grams of crack. The homeowner declined to purchase any of the cocaine so Lewis left with the cocaine he brought to the residence, including the 44 grams of newly converted crack cocaine. Shortly thereafter the vehicle Lewis was in was stopped for a traffic violation and the cocaine was located under the passenger seat where Lewis was seated. Lewis was indicted on Aug. 17, 2016 and charged with drug trafficking violations.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Tyler Police Department, Texas Department of Public Safety – Law Enforcement Division, and prosecuted by Assistant U.S. Attorney Jim Noble.
Rochester Man Admits to Bank RobberyRead 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 Jerry Little, 47, of Rochester, NY, pleaded guilty to bank robbery before U.S. District Judge Charles J. Siragusa. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that the defendant robbed the First Niagara Bank located at 2255 East Ridge Road in Rochester. During the robbery, Little handed a teller a note, which read, “this is a robbery,” and demanded all of the money in the teller’s top drawer. The teller complied the defendant left the bank with the money.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the New York State Police, under the direction of Major Richard Allen.
Sentencing is scheduled for September 14, 2017, at 9:15 a.m., before Judge Siragusa.
Richmond Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to felon in possession of a firearm and possession with intent to distribute heroin.
According to the statement of facts filed with the plea agreement, in July 2016, the Richmond Police found John Thomas Lewis, III, 25, in a vehicle parked outside a Richmond residence with two loaded firearms, one of which had been reported stolen, two boxes of ammunition, and 12.6 grams of heroin. As a previously convicted felon, Lewis was prohibited from possessing a firearm. Later, in December 2016, Lewis was arrested on an outstanding warrant and was found to be in possession of distribution quantities of heroin, cocaine, Xanax, and Dibutylone.
Lewis pleaded guilty to felon in possession of a firearm, and possession with intent to distribute heroin. He faces a maximum penalty of 30 years in prison when sentenced on September 15. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Alfred Durham, Chief of Richmond Police; and Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Henry E. Hudson accepted the plea. Assistant U.S. Attorney Brian R. Hood and Special Assistant U.S. Attorney Stacey E. Rohrs are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-144.
Richard Peng Sentenced for Harboring Birth TouristRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant RICHARD PENG aka PAI PENG, a citizen of the United States and Taiwan, was sentenced on June 12, 2017, in District Court, to six months imprisonment. The Court also ordered a one-year term of supervised release following PENG’S release, and a fine of $2,000.00, in addition to the payment of a mandatory $100 assessment fee.
On August 2, 2016, PENG was charged by Information with Harboring an Illegal Alien, in violation of 8 U.S.C. § 1324(a)(1)(A)(3). On August 3, 2016, PENG waived indictment by the grand jury, and entered a guilty plea to the charge. From November 2014 until February 2015, PENG housed a Chinese birth-tourist after she had overstayed her conditional parole, with the intention of avoiding her detection by immigration authorities.
Acting United States Attorney Anderson stated, “On April 11, 2017, Attorney General Sessions announced that DOJ will place a high priority on establishing lawfulness in our immigration system. The District of the Northern Mariana Islands will see an increase in federal law enforcement efforts to implement this important policy change. As this case demonstrates, the Department is committed to holding persons accountable for enticing, encouraging and abetting aliens who unlawfully enter or remain in the United States.”
The investigation was conducted by the U.S. Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by James J. Benedetto, Assistant United States Attorney for the District of the Northern Mariana Islands.
RGV Durable Medical Equipment Company Owner and Four Others Sentenced in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of a Rio Grande Valley area durable medical equipment (DME) company has been ordered to federal prison for her role in a scheme to defraud Texas Medicaid through fraudulent billings, announced Acting U.S. Attorney Abe Martinez. Maria Teresa Paz Garza, 41, of McAllen, was previously found guilty by a jury on all counts on Feb. 24, 2017, following a seven-day trial and six hours of deliberation.
Today, U.S. District Judge Randy Crane handed Garza a 144-month sentence to be immediately followed by three years of supervised release. She received 10 years for conspiracy to commit health care fraud and related health care fraud charges as well as an additional two years for aggravated identity theft which must be served consecutively for a total of 12 years in federal prison. In handing down the sentence, Judge Crane imposed enhancements for obstruction of justice for witness tampering, a leadership role and loss to a federal health care program of more than $1 million. Garza was further ordered to pay $1,814,832.98 in restitution based on the loss to the Texas Medicaid program.
Garza, an owner of Hacienda DME located in McAllen, was convicted of submitting false and fraudulent claims to Texas Medicaid for DME that were not provided and/or not authorized by a physician. Garza and her co-conspirators forged and/or caused others to forge the signatures of physicians on the required prescription forms. Hacienda DME billed for larger, higher-paying sizes of pull-ups and diapers regardless of whether those sizes were needed or provided in order to receive higher reimbursements from Texas Medicaid.
Garza also paid illegal kickbacks in the form of cash and/or checks in exchange for patient information, specifically the patient Texas Medicaid numbers. Garza and her co-conspirators bought back supplies that had previously been delivered to Texas Medicaid recipients so that they could utilize the same supplies again in the scheme. Further, they illegally used the identities of physicians in submitting the unlawful billings to Texas Medicaid.
Co-conspirators Bertha Lopez, 62, of Sullivan City, served as a marketer and vendor for Hacienda DME, while Miriam Aguilar, 32, of Rio Grande City, was a delivery driver and recruiter for the company. Nancy Rangel, 31, of Mission, and Yolotzi Lara, 29, of Penitas, were both recruiters for the company. Rangel was also a biller in the scheme. They all also pleaded guilty and were sentenced previously. Lopez received a 21-month-term of imprisonment and was ordered to pay $1,750,565.26 in restitution, while Aguilar was sentenced to 14 months and ordered to pay $1,715,836.99 in restitution. Rangel and Lara were each sentenced to six months of home confinement and ordered to pay $395,698.26 and $294,474.35 in restitution, respectively.
Garza has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Texas Attorney General’s Medicaid Fraud Control Unit, FBI and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Michael Day and Andrew Swartz are prosecuting the case.
Physician Assistant Sentenced on 42 Drug-Related ChargesRead the Press Release
Abingdon, VIRGINIA – A physician assistant, who allowed phentermine tablets to be distributed using her Drug Enforcement Administration (DEA) registration, was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Melissa Lynn Hartwell, 41, of Marion, Va, was sentenced yesterday to probation for a term of three years and was ordered to pay $4,500 in fines and assessments. Hartwell was found guilty following a jury trial on one count of conspiring to distribute a controlled substance (phentermine), one count of conspiracy to allow the use of her DEA registration number by another person, 20 counts of distributing phentermine and 20 counts of allowing the use of her DEA registration by another person.
According to evidence presented at trial by Assistant United States Attorney Randy Ramseyer, Hartwell worked as a physician assistant at MTRx, a weight loss clinic in Bristol, Tennessee, operated, at the time, by Marvin Allen Stanley and owned by his wife, Tracey Michelle Stanley. The Stanleys previously pled guilty to their roles in the conspiracy.
Evidence at trial showed that Hartwell allowed the Stanleys to use her DEA registration number to order phentermine and dispense phentermine to individuals who Hartwell never examined. The clinic was open Monday through Saturday, but Hartwell typically only worked on Mondays and Fridays. On days she did not work, patients received phentermine without ever being examined by Hartwell. Hartwell later signed and initialed the patient charts to indicate she approved the dispensing of the phentermine.
Also, Hartwell and the Stanleys allowed a person who did not work at the clinic to fill out patient charts and obtain and deliver phentermine to her friends and acquaintances. Once or twice a week, Norma Jean Marsh, a.k.a. “Trixie,” a registered nurse, went to MTRx and spent 15 or 20 minutes filling out patient files for friends and acquaintances of hers from the Saltville area. Then Hartwell and the Stanleys provided her with phentermine for those friends and acquaintances. Several of those individuals never were seen as patients at the clinic. Marsh previously pled guilty to her role in the conspiracy.
Phentermine is a Schedule IV controlled substance. It is related chemically and pharmacologically to amphetamine, which is extensively abused.
The investigation of this case was conducted by the Drug Enforcement Administration’s Tactical Diversion Squad in Roanoke, with the assistance of the Virginia Attorney General’s Medicaid Fraud Control Unit, Tennessee Bureau of Investigation, Bristol (Tennessee) Police Department, and Saltville (Virginia) Police Department. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.