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13 July 2017
Four Charged in Counterfeit Body Building Steroid ConspiracyRead the Press Release
BOSTON – Four individuals were charged yesterday in federal court in Boston for their roles in a conspiracy to traffic counterfeit steroids, including testosterone and trenbolone, to bodybuilders.
Tyler Bauman, a/k/a “musclehead 320,” 32, of Shrewsbury, and Philip Goodwin, 36, of Lynn, were charged with one count of conspiracy to distribute controlled substances, one count of conspiracy to traffic counterfeit drugs, one count of trafficking counterfeit drugs, one count of possession with intent to distribute controlled substances and one count of money laundering conspiracy.
Kathryn Green, a/k/a Katie Green, a/k/a Katy Green, 30, of Shrewsbury, and Brian Petzke, 49, of Saugus, were charged with one count of conspiracy to distribute controlled substances.
All four defendants were previously arrested and charged by complaint on April 12, 2017, along with two other co-defendants, Robert Medeiros and Melissa Sclafani. Medeiros pleaded guilty in June and will be sentenced on Sept. 21, 2017.
According to court documents, from approximately May 2015 until April 12, 2017, the conspirators manufactured steroid products - made from raw materials purchased overseas - in Goodwin’s home, and marketed them as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now owned by Amgen Inc., is a legitimate pharmaceutical company that does not manufacture steroids.
The defendants allegedly sold the steroids to customers across the United States using email and social media platforms, collected payment through money remitters, such as Western Union and MoneyGram, and used false identifications and multiple remitter locations to pick up the proceeds. Some of the defendants laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning business located in Beverly, which they owned and operated specifically to launder the proceeds of the steroid operation.
The charges of conspiracy to traffic in counterfeit drugs and conspiracy to distribute controlled substances provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss of the conspiracy. The charge of possession of a controlled substance provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss of the conspiracy. The charge of trafficking in counterfeit drugs provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $5 million. The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the gross gain or loss of the conspiracy. 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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement today. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Weinreb’s Cybercrime Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fort Wayne Man Sentenced to 125 Months ImprisonmentRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that, Eddie Martin, Jr., age 18, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Theresa Springmann for robbery under the Hobbs Act along with using, carrying and brandishing a firearm during and in relation to a crime of violence.
Martin was sentenced to 125 months imprisonment and 2 years of supervised release and was ordered to pay $1,586 in restitution to the victims of the offense.
According to documents filed in this case, on or about November 19, 2016, Martin took U.S. currency from an employee of Pizza by Vito’s using physical force and violence and the threatened use of force, violence and the fear of injury and in doing so brandished a firearm.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department and was handled by Assistant United States Attorney Stacey R. Speith.
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Former Newark Watershed Conservation Official Sentenced to Eight Years in Prison in Bribery and Kickback SchemeRead the Press Release
NEWARK, N.J. – A former high-ranking employee of the Newark Watershed Conservation and Development Corp. (NWCDC) was sentenced today to 96 months in prison for accepting $956,948 in kickback payments for his and the former executive director’s assistance in awarding work to contractors, Acting U.S. Attorney William E. Fitzpatrick announced.
Donald Bernard Sr., 69, of West Orange, New Jersey, previously pleaded guilty before U.S. District Judge Jose Linares to Counts 9 and 10 of a 20-count indictment returned in December 2014, charging him with the use of interstate facilities to promote and facilitate bribery in violation of the Travel Act, and Count 1 of an information that charges him with making and subscribing a false personal tax return for the 2009 tax year. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in these and other cases and statements made in court:
Bernard served as a consultant to the NWCDC (from 2008 to January 2010) and then as a salaried employee (from January 2010 to March 2013). From 2008 to March 2013, Bernard was part of a corrupt arrangement with former NWCDC Executive Director Linda Watkins Brashear to solicit $956,948 in cash kickbacks from certain NWCDC contractors in exchange for providing them work and other assistance. Bernard and Brashear facilitated NWCDC payments to contractors to fund cash kickbacks to themselves, knowing payments were inflated above the amount of any work performed. They knew that in numerous instances no work at all had been performed. Bernard and Brashear used their email accounts to facilitate this scheme.
Two contractors from whom Bernard and Brashear obtained substantial cash kickbacks were Jim P. Enterprises and New Beginnings Environmental Services, both companies hired to perform landscaping, snow removal, clean-up and sign-posting services, which were affiliated with Bernard but purportedly operated by James Porter. Bernard admitted receiving $409,823 in bribes and kickbacks from Porter’s companies, funded by inflated and fraudulently obtained payments from the NWCDC, during the period January 2008 to December 2012. Bernard also admitted receiving approximately $85,000 from Essex Home Improvements, a contracting company operated by DeRosa, during the period January 2008 to March 2013, which he received either directly or indirectly through companies Bernard controlled.
Bernard also admitted filing a U.S. Individual Income Tax Return, Form 1040, for tax year 2009, which did not include approximately $314,000 in unreported income he received in kickbacks.
A co-defendant, Giacomo “Jack” DeRosa, 60, of Clinton Township, New Jersey, previously pleaded guilty to laundering a portion of $85,000 he provided to Bernard from January 2008 to August 2012 in connection with roofing work that Bernard facilitated for DeRosa with the NWCDC. DeRosa was sentenced on Oct. 25, 2016, to six months in prison.
Brashear pleaded guilty on Dec. 21, 2015, to devising a scheme to defraud the NWCDC as well as filing a false tax return by failing to report substantial income she received in connection with the kickback scheme. She is scheduled to be sentenced Sept. 11, 2017. Among the approximately $1 million in kickbacks that Brashear admitted receiving were approximately $260,000 from Porter and $27,000 from DeRosa. Porter pleaded guilty in January 2015 to conspiracy to defraud the NWCDC of honest services, money and property through the use of interstate wire transmissions, as well as tax evasion for his role in the kickback scheme. He is scheduled to be sentenced July 20, 2017.
DeRosa admitted that from January 2008 to August 2012 he provided Bernard with a stream of payments totaling approximately $85,000 for Bernard’s action and assistance in procuring NWCDC roofing work for DeRosa’s company. DeRosa provided these payments to Bernard either directly, or to Bernard’s consulting firm, or to a Newark-based civic organization run by Bernard, the African American Heritage Parade Committee. DeRosa also admitted to laundering $20,000 of the money by having it paid to Bernard indirectly through intermediaries in order to disguise DeRosa or Essex Home Improvements as the source of the funds. Two intermediaries DeRosa admitted to using to launder funds provided to Bernard included a subcontractor doing work for DeRosa’s company and Porter.
In addition to the prison term, Judge Linares sentenced Bernard to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; IRS – Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi, as well as criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s guilty pleas. Acting U.S. Attorney Fitzpatrick also thanked the N.J. Office of the State Comptroller, under the direction of State Comptroller Philip James Degnan, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Jacques Pierre and Senior Litigation Counsel Leslie Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.
Former Lancaster Pharmacist Sentenced to Federal PrisonRead the Press Release
Columbia, South Carolina------United States Attorney Beth Drake stated today that Gregory S. Boone, age 47, of Lancaster, South Carolina, was sentenced to 18 months imprisonment for willful failure to pay over taxes, in violation of Title 26, United States Code Section 7202.
According to information presented during his guilty plea, Boone owned both the Lancaster Pharmacy and the Medicine Shoppe pharmacy in Rock Hill. While the owner, Boone withheld federal income taxes from his employees’ wages and kept the money for himself. In addition, facts presented during the hearing showed that Boone had failed to pay his income taxes since the year 2000. Based on IRS calculations, Boone failed to pay over $350,000 in federal income taxes.
The case was investigated by the Internal Revenue Service Charlotte Field Office Criminal Division working cooperatively with the IRS Civil Enforcement Division and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Former Honeywell Employee Sentenced for $50,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Honeywell employee was sentenced in federal court today for engaging in a fraud scheme that caused a loss of more than $50,000.
Trent L. Christie, 37, of Olathe, Kan., was sentenced by U.S. District Judge Howard F. Sachs to one year and one day in federal prison without parole. Christie has also fully paid $50,480 in restitution to Honeywell.
Christie was employed at the Kansas City branch of Honeywell Federal Manufacturing and Technologies, a management and operating contractor for the National Nuclear Security Administration (NNSA), which is the agency under the U.S. Department of Energy responsible for enhancing national security through the military application of nuclear science.
On Dec. 15, 2016, Christie pleaded guilty to four counts of wire fraud. Christie admitted that, in his capacity as a Honeywell employee with purchasing authority, he submitted purchase orders for approximately 129 pieces of equipment, all without the permission or knowledge of either Honeywell or the NNSA. None of the equipment was classified.
Christie engaged in his fraud scheme from June 15, 2010, to Aug. 27, 2014. The costs to Honeywell and subsequently to the NNSA of the unnecessary equipment was approximately $50,480.
After receiving the equipment, Christie advertised the items for sale on eBay. If sold, he removed the items from the Honeywell facility and shipped them, often from his personal residence, to the purchaser. Total sales by Christie netted him approximately $20,847.
This case was prosecuted by Senior Litigation Counsel Gregg R. Coonrod. It was investigated by the Department of Energy, Office of the Inspector General.
Former Aurora Business Owner Indicted for $26 Million Fraud SchemesRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former Aurora, Mo., business owner has been indicted by a federal grand jury today for fraud schemes by which he stole more than $26 million, as well as money laundering and other charges.
Russell Grundy, 48, of Hilton Head Island, S. Carolina, formerly of Aurora, was charged in a 30-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, July 11, 2017. Grundy was arrested today.
Grundy was the owner of several companies that focused on advanced technologies, ranging from software development to computer security to addressing the software and hardware technological needs of its clientele. Grundy’s companies included Innovative Objects, LLC, PILR Technology, LLC, Choice Technologies, LLC, Wyerless, LLC, and Audio Input, LLC.
Land O’Lakes/Nutra Blend Fraud Scheme
Grundy (through his company Innovative Objects) was contracted by Land O’Lakes, Inc., and its subsidiary, Nutra Blend, LLC, from January 2004 to Sept. 27, 2015, to create propriety software to inventory, track, and coordinate the disbursement of products. Grundy also contracted with Land O’Lakes and Nutra Blend to provide equipment and technical support for the use, upkeep and maintenance of the software.
The indictment alleges that Grundy falsely told Land O’Lakes and Nutra Blend that third party software programs were built into that proprietary software and were essential to the successful operation of the software. Grundy allegedly claimed that some of the payments made to Innovative Objects were remitted to third party license holders. In reality, the indictment says, there were no third party licensee fees; instead, Grundy kept those payments for his personal or unrelated expenses.
The indictment charges Grundy with six counts of wire fraud related to a series of payments from August 2013 to April 2015, totaling $862,856.
Miami Nations Enterprise Fraud Scheme
Grundy engaged Miami Nations Enterprise in negotiations to provide financial assistance in the form of loans, and for Miami Nations Enterprise to purchase a controlling interest in all of Grundy’s technology-based companies.
According to the indictment, Grundy falsely told Miami Nations Enterprise that his companies had been awarded a $3.5 million contract from Wal-Mart Stores, Inc., to develop and provide information technology services. Grundy allegedly presented numerous e-mails, invoices, conditional award letters and other documents to support his false claims. From May 19, 2014, to June 24, 2015, Miami Nations Enterprise loaned Grundy the money to cover the costs associated with software and hardware purchases and training necessary to obtain the $3.5 million Wal-Mart contract.
On Aug. 24, 2014, Miami Nations Enterprise paid an additional amount to purchase a 70 percent interest in Grundy’s companies.
Officials with Miami Nations Enterprise later discovered that neither Grundy nor any of his companies had been awarded any contract with Wal-Mart, and determined that the e-mails, conditional contract award, invoices and bank deposits Grundy had used to support his claims were fraudulently created.
The indictment charges Grundy with 10 counts of wire fraud related to a series of payments from May 19, 2014, to April 12, 2015, totaling $5,990,000.
Additional Charges
In addition to the wire fraud schemes, the indictment charges Grundy with four counts of making a false statement on a loan application. Grundy applied for three loans from UMB Bank on Oct. 17, 2014, totaling $11,390,800. Grundy applied for a $1,850,000 loan from the People’s Bank of Seneca on Aug. 27, 2015. Grundy allegedly made material false statements in each of those loan applications.
Grundy is also charged with 10 counts of money laundering.
The indictment also contains a forfeiture allegation, which would require Grundy to forfeit to the government any property obtained as a result of the alleged wire fraud violations, including a money judgment of at least $26,060,000.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Carney and Casey Clark. It was investigated by the FBI and IRS-Criminal Investigation.
Executive Office for Immigration Review Swears in Immigration JudgeRead the Press Release
FALLS CHURCH, VA - The Executive Office for Immigration Review (EOIR) today announced the investiture of a new immigration judge. Chief Immigration Judge MaryBeth Keller presided over the investiture during a ceremony held this afternoon at EOIR headquarters in Falls Church, Va.
After a thorough application process, Attorney General Jeff Sessions appointed James M. McCarthy to his new position.
"We welcome Judge McCarthy to the ranks of immigration judges at EOIR," said Acting Director James McHenry. "EOIR is committed to reducing its significant pending caseload, and Judge McCarthy’s presence augments our ability to do that in one of our highest-volume courts."
Biographical information follows.
James M. McCarthy, Immigration Judge, New York City Immigration Court
Attorney General Jeff Sessions appointed James M. McCarthy to begin hearing cases in July 2017. Judge McCarthy earned a Bachelor of Science degree in 1983 from St. John’s University and a Juris Doctor in 1995 from Brooklyn Law School. From 2014 to 2017, he served as a senior attorney for Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in New York, N.Y. From 2011 to 2014, he served as a deputy chief counsel for the Office of Chief Counsel, ICE, DHS, also in New York. From 2009 to 2011, he served as a senior attorney for ICE, DHS, in Eloy, Ariz. From 2004 to 2009, he served as an assistant chief counsel for ICE, DHS, in Eloy and Florence, Ariz. From 2000 to 2004, he served as an examining attorney for the Mayoral Commission to Combat Police Corruption, New York City Department of Investigations. From 1995 to 2000, he served as an assistant district attorney, and later as a senior assistant district attorney, at the Kings County District Attorney’s Office, in Brooklyn, N.Y. Judge McCarthy is a member of the New York State Bar.
Eleven Charged, Including Two Businesses, in Western District of Kentucky, as Part of the National Health Care Fraud TakedownRead the Press Release
National health care fraud takedown results in charges against over 412
individuals responsible for over $1.3 billion in fraud losses
Largest health care fraud enforcement action in Department of Justice history
LOUISVILLE, Ky. –United States Attorney John E. Kuhn, Jr. today announced the results of a health care fraud sweep in the Western District of Kentucky as part of the national health care fraud takedown led by the Justice Department. The takedown, in the Western District of Kentucky, resulted in charges against two businesses, and nine individuals, for their alleged participation in health care fraud schemes.
“We trust the medical community to do no harm – certainly no intentional harm,” stated United States Attorney John Kuhn. “Unfortunately, health care fraud harms our health insurers, public agencies, and ultimately patients and taxpayers. Alarmingly, we often see health care fraud combined with other crimes such as unlawful dispensing of opioids, which does even more harm. Today we announce the cooperative efforts of multiple agencies, working to stop the illegal practices by a small segment of the medical community in an effort to restore safety for patients. Investigating and prosecuting health care fraud is one of the Department of Justice’s highest priorities.”
U.S. Attorney Kuhn was joined in the announcement by:
Amy Hess, Special Agent in Charge, Louisville Division, Federal Bureau of Investigation. “To those prioritizing profit over their oath to honestly provide for the public health, the message should be clear that the collective resources of local, state and federal law enforcement will identify your illegal activity and bring you to justice.”
“Healthcare providers that prescribe controlled substances illegally will continue to be a DEA priority,” said Chicago Field Division Special Agent in Charge Dennis A. Wichern. “Too many lives have been lost and too many families forever scarred due to prescription drug abuse.”
“We expect doctors and other medical professionals who bill Medicare and Medicaid to provide quality services to those served by the programs, not rip off scarce government health care funds," said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General. “Coordinating with our law enforcement partners, our agents work hard to ensure those who steal from federal health care programs are brought to justice.”
Office of Kentucky Attorney General, General Andy Beshear. “The single greatest threat to Kentucky is our drug epidemic, and as attorney general, I am committed to holding accountable any individual or company that carelessly overprescribes opioids to our citizens, many of them battling addiction,” Beshear said. “This national takedown is a critical step to stop this activity and stop fraud to our Medicaid program to better protect our most vulnerable senior citizens and children. I appreciate the efforts of the task force and my Office of Medicaid Fraud and Abuse to hold providers accountable.”
“This coordinated enforcement effort emphasizes the seriousness of healthcare fraud and the detrimental impact it has on our community. We will continue to partner with other state and federal law enforcement agencies to investigate those who perpetrate fraud against federal and state governments, private insurance companies and individual citizens,” said Tracey D. Montaño, Special Agent in Charge of the Nashville Field Office of IRS, Criminal Investigation.”
Office of Indiana Attorney General, General Curtis Hill. “Medicaid fraud is not a victimless crime,” said Indiana Attorney General Curtis Hill. “When licensed professionals and organizations target those who rely on Medicaid, they’re also putting taxpayers on the hook. These actions truly impact all of us. The culmination of these investigations is extremely rewarding for the investigators and lawyers in our Medicaid Fraud Control Unit who work tirelessly to bring these offenders to justice. I applaud their efforts.”
Anthony S. Gooden, Senior Supervisory Agent, Louisville Division, U.S. Postal Inspection Service. “Today’s challenging economy makes it critical that we safeguard the nation’s mail stream against criminal misuse and protect USPS customers from criminal attack through use of the mails. We as Postal Inspectors are dedicated to protecting the public and helping them guard their hard-earned money from fraudulent activity.”
Gregory C. Burns, Jr. Lt. Colonel with LMPD. “With the scourge of opioid addiction going on across America today, it is more important than ever that local law enforcement and federal law enforcement continue to engage in collaborative partnerships together to fight this epidemic on all levels. A multi-faceted approach must also be maintained in order to sustain long term success in this effort.”
In the Western District of Kentucky, three separate cases were indicted on June 27, 2017, and an additional case was charged in a superseding indictment that was unsealed yesterday. The charges included unlawful distribution and dispensing of controlled substances, health care fraud, money laundering, and aggravated identity theft.
Specifically, in United States v. Jeffrey Campbell, Mark Dyer, Dawn Antle and Physicians Primary Care, PLLC, the defendants, from Jefferson County, Kentucky, were charged with one count unlawful distribution and dispensing of controlled substances-conspiracy, four counts of unlawful distribution and dispensing of controlled substances-schedule II, two counts of unlawful distribution and dispensing of controlled substances-hydrocodone, one count health care fraud conspiracy, 11 counts health care fraud – fraudulent coding, one count health care fraud-physical therapy, and one count health care fraud Proove biosciences. The charges stem from the defendant’s intentionally distributing and dispensing controlled substances to patients allegedly without a legitimate medical purpose and outside of the usual course of professional medical practice. Further, the defendants allegedly fraudulently billed various health care benefit programs by coding physical therapy, counseling and exercise services, using evaluation and management codes in order to obtain a higher rate of reimbursement and fraudulently billing various health care benefit programs for physical therapy services, using evaluation and management codes as if a physician performed a service on the patients, but in reality, a non-physician and non-physical therapist performed the services on patients. Also the defendants caused Proove Bioscience, Inc. to falsely and fraudulently bill various health care benefit programs for genetic tests administered to Physicians Primary Care patients that were not medically necessary and never interpreted.
In United States v. Claudia Lopez, defendant Lopez, of Jefferson County, Kentucky, was charged by grand jury indictment with one count health care fraud-fraudulent billings, and three counts of mail theft. The charges stem from the defendant’s role in a scheme while operating the Top Care Chiropractic and Wellness Center Corporation, fraudulently billing United Health Care for medical services never provided.
In United States v. Janice Patterson, Tanesha Washington, and Katerrell Kennedy , the defendants, from Jefferson County, Kentucky, were charged with one count unlawful distribution-conspiracy, fifteen counts health care fraud, two counts health care fraud-conspiracy, eight counts money laundering, and three counts aggravated identity theft. The charges stem from their alleged role in a scheme to knowingly and intentionally distribute and dispense scheduled and controlled substances. Defendant Patterson, while operating the JM Autism Foundation Trust is charged with falsely and fraudulently billing Anthem, Inc. for autism services never performed. Further defendants Patterson and Kennedy, while operating Total Spectrum Autism Services, LLC, falsely and fraudulently billed Anthem, Inc. for autism services never performed. Further, Patterson is charged with aggravated identity theft and money laundering. Patterson allegedly used the identification of providers and created accounts and fraudulently billed for services. The money laundering counts total over $150,000.
In United States v. Med1st of Evansville, P.C., Karen Poeling, and Mitchel Stukey the named defendants were charged in a superseding indictment. They are charged with conspiracy to commit health care fraud, two counts of conspiracy to violate the controlled substance act, and conspiracy to commit money laundering. The charges stem from the defendants’ role in a scheme to defraud health care benefit programs, in connection with the delivery of or payment for benefits, services by causing the submission of false and fraudulent claims to Medicaid, Medicare, Anthem and other insurance carriers. Med1st is alleged to have directed staff to falsely bill for medically unnecessary facet block injections, billing for conscious sedation, which was never performed, providing back braces which were not medically necessary and performing unnecessary tests. Further defendant Stukey conspired with others to illegally distribute and dispense controlled substances. Conspirator A signed blank prescription pads and permitted individuals acting at the direction of Stukey, to conduct evaluations of patients and to use pre-signed pads to prescribe medication to patients. Further, all defendants are charged with committing money.
These cases are being handled by Assistant United States Attorneys, Joe Ansari, Lettricea Jefferson-Webb, and Jessica Malloy. U.S. Attorney Kuhn acknowledged and credited the law enforcement agencies investigating these cases: Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), the U.S. Drug Enforcement Administration (DEA), the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation, Indiana and Kentucky Medicaid Fraud Control Units, the Department of Defense Criminal Investigative Service and the Louisville Metro Police Department.
Earlier today, Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Tom Price, M.D., announced the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving over 412 charged defendants across 41 federal districts, including over 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving over $1.3 billion in false billings. Of those charged, today’s action also involved charges against over 120 defendants, including doctors, for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, the HHS Centers for Medicare & Medicaid Services (CMS) is suspending payment to 295 providers, including doctors, nurses and pharmacists.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
East Chicago Man Found Guilty After 3-Day Jury TrialRead the Press Release
HAMMOND – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Mauricio Portes, age 49, of East Chicago, Indiana was convicted of conspiracy to distribute 500 grams or more of cocaine after a three-day jury trial before United States District Court Philip P. Simon.
According to documents filed in this case, Mauricio Portes was part of a conspiracy that was distributing cocaine within the Northern District between January 1, 2015 and May 28, 2015.
This case was the result of an investigation by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Thomas M. McGrath and Special Assistant United States Attorney Armando Salinas.
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Dominican National Sentenced for Firearms and Identity Fraud OffensesRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for a firearm offense and using a false social security number.
Leudy Enrique Rodriguez Mojica, 26, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to time served (approximately 16 months) and three years of supervised release. Rodriguez Mojica will be subject to deportation. In April 2017, Rodriquez Mojica pleaded guilty to one count of being an alien unlawfully present in the United States in possession of a firearm and one count of falsely representing a social security number to be his.
On March 23, 2016, Rodriguez Mojica was encountered in Lawrence by law enforcement who recovered a loaded 9mm pistol from the defendant. In addition, on an earlier occasion, Rodriguez Mojica used the name, date of birth, and social security number of a United States citizen to obtain a Massachusetts identification card.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Assistance was also provided by the Federal Bureau of Investigation and Lawrence Police Department. Assistant U.S. Attorney Robert E. Richardson of Weinreb’s Major Crimes Unit prosecuted the case.
Dominican National Charged with Identity Theft and Social Security FraudRead the Press Release
BOSTON – A Dominican national was charged today in federal court in Boston with stealing the identity of a U.S. citizen from Puerto Rico.
Jhonny Emilio Pimentel Aybar, 34, a Dominican national residing in Everett, was charged by indictment with three counts of misuse of a Social Security number and three counts of aggravated identity theft.
On three occasions, Aug. 8, 2012, Aug. 15, 2013, and Aug. 20, 2014, Aybar misrepresented his social security number and identity when registering as a sex offender with the Everett Police Department.
The charge of Social Security fraud provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory minimum sentence of two years in prison, to be served consecutively to any sentence imposed on the Social Security fraud count. Aybar will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant United States Attorney Anne Paruti of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Man Found Guilty of First-Degree Murder While Armed in 2015 Slaying in Southeast WashingtonRead the Press Release
WASHINGTON - Eugene Burns, 25, of Washington, D.C., has been found guilty by a jury of first-degree murder while armed and related weapons offenses for killing a man in a Southeast Washington apartment, U.S. Attorney Channing D. Phillips announced today.
Burns was found guilty by a jury on July 12, 2017, following a trial in the Superior Court of the District of Columbia. The Honorable Hiram E. Puig-Lugo scheduled sentencing for Sept. 29, 2017. Burns faces a potential sentence of life in prison for the crimes.
According to the government’s evidence, Burns had been in a drug-related dispute with the victim, Onyekachi Emmanuel Osuchukwu III, of Woodland Hills, Calif., and began planning to kill him. On Nov. 14, 2015, Mr. Osuchukwu flew into the Washington, D.C. area. That day, Burns lured Mr. Osuchukwu to Burns’s mother’s apartment in the 2900 block of Second Street SE. He confronted Mr. Osuchukwu and shot and killed him before fleeing the scene.
The next day, the defendant, along with two relatives, returned to the apartment and Burns supposedly “discovered” that his best friend had been killed. After a call to 911, Mr. Osuchuwku, 24, was found on the living room floor with multiple gunshot wounds. An investigation led to Burns’s arrest in December 2015, and he has been in custody ever since.
In announcing the verdict, U.S. Attorney Phillips commended the work of the detectives, officers, and mobile crime technicians who worked on the case from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the U.S. Postal Inspection Service, Washington Division, the FBI’s Cellular Analysis Survey Team, and the Washington Metropolitan Area Transit Authority. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialists Kelly Blakeney and Lashone Samuels; Diana Lim, David Foster; M. Laverne Perry, Tanya Via and Debra Cannon, all of the Victim/Witness Assistance Unit; Investigative Analyst Zachary McMenamin; Litigation Technology Specialists Leif Hickling, and William Henderson; former Litigation Technology Specialist Aneela Bhatia; Forensic Operations/Program Specialist Benjamin Kagan-Guthrie; Computer Forensics Criminal Investigator John Marsh, and Law Clerk Alexandra Maher.
Finally, U.S. Attorney Phillips commended the work of Assistant U.S. Attorneys Charles Willoughby, Jr. and Kevin Flynn, who investigated and prosecuted the case.
Cross Lanes felon sentenced to federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man was sentenced today to four years and nine months in federal prison for a gun charge, announced United States Attorney Carol Casto. Fred Wallace Hammon, Jr., 36, previously pleaded guilty to being a felon in possession of a firearm.
Hammon admitted that on September 1, 2016, he possessed a Remington, Model 742 Woodsmaster, .30-06 caliber rifle. Hammon was prohibited from possessing any firearm under federal law because of felony convictions in Kanawha County Circuit Court in 2000 for two counts of aggravated robbery and in 2011 for wanton endangerment, being a felon in possession of a firearm, and possessing a firearm on the grounds of an educational facility.
The Kanawha County Sheriff’s Office, the Charleston Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Criminal Complaint Charges North Carolina Resident with Firearms, Drug Trafficking ChargesRead the Press Release
PROVIDENCE – A North Carolina resident arrested by Rhode Island State Police on June 20, 2017, following a traffic stop which resulted in the seizure of a cache of loaded, high-powered firearms, camouflage equipment, night-vision goggles, and 443 grams of suspected methylenedioxymethamphetamine (MDMA, with street names of Molly and Ecstasy) was charged today by way of a federal criminal complaint in U.S. District Court in Providence with firearms and drug trafficking charges.
Acting United States Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police, announced today the filing of a federal criminal complaint charging Anthony Mondrez Thompson, 39, of Charlotte, NC, with being a felon in possession of firearms, possession with the intent to distribute 50 grams or more of MDMA, and possession of a firearm in furtherance of a drug trafficking crime.
According to an affidavit filed with the court in support of the criminal complaint, during the traffic stop it is alleged that Thompson, the only person in the vehicle, denied having firearms or illicit drugs in the vehicle, and denied having been previously convicted of a crime. During a check of the driver’s license and car registration provided by Thompson, and a criminal history check, the trooper learned that in fact Thompson has a lengthy criminal record, including convictions in federal and state courts in North Carolina on firearms and drug trafficking charges.
According to the affidavit, after agreeing to exit the vehicle and while being questioned by a trooper outside of the rear of the vehicle, it is alleged that Thompson shoved a trooper into a travel lane of the highway, and then he ran into the highway and began running in a travel lane opposite the direction of oncoming traffic. After ignoring verbal warnings to stop and repeated warnings of the possible use of a Taser, the trooper discharged his Taser causing Thompson to fall to the ground where he was placed under arrest.
According to the affidavit, it is alleged that searches of the vehicle at the scene of the traffic stop and later at the State Police barracks troopers discovered and seized eight high-powered pistols, a revolver, two AR-15-style assault rifles, numerous high-capacity rifle and pistol magazines, boxes of ammunition, military-issued smoke grenades, holsters, camouflage gear and masks, night vision goggles and a Taser. It is alleged that troopers also seized approximately 443 grams of MDMA.
Thompson, who is presently being held in state custody on firearms, drug, assault and resisting arrest charges, will make an initial appearance in U.S. District Court at a later date.
Acting United States Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico thank the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rhode Island Department of Attorney General for their assistance with this matter.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Covington Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DARRELL RICKS, age 66, of Covington, pled guilty today to crimes involving the sexual exploitation of children.
According to court documents, beginning at an unknown time to on or about October 21, 2016, RICKS knowingly downloaded and received images and videos depicting the sexual victimization of minors.
RICKS faces a maximum sentence of up to twenty years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000 fine. U.S. District Judge Nannette Jolivette Brown will sentence RICKS on October 19, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Acting U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, St. Tammany Parish Sheriff’s Office, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Chicago Resident Convicted of Conspiring to Manufacture Marijuana in Rockford WarehouseRead the Press Release
ROCKFORD — A Chicago man was found guilty of conspiracy to manufacture and distribute marijuana following a four-day jury trial in federal court in Rockford.
YOUSIF Y. PIRA, 64, was found guilty of conspiring to manufacture, possess and distribute 1,000 or more marijuana plants.
The conviction was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Derek Bergsten, Chief of the Rockford Fire Department; and Anthony Scarpelli, Chief of the Skokie Police Department. The Winnebago County Sheriff’s Department Narcotics Unit and the Rockford Police Department Narcotics Unit assisted in the investigation.
According to the indictment and the evidence at trial, between Jan. 2, 2013, and Jan. 6, 2015, Pira conspired with JEREMIAH N. CLEMENT, 39, of Des Plaines, GEORGE H. BACUS, 53, of Niles, JUSTIN T. PAGLUSCH, 36, of Ingleside, SHLIMON SHIMON, 49, of Chicago, and CASEY WILLIAMS, 30, and DESTINY FREEMAN, 23, both of Great Falls, Mont., to illegally grow, store and distribute marijuana in a warehouse at 1916 11th Street in Rockford. The warehouse was destroyed by a fire on Jan. 6, 2015.
As part of the conspiracy, among other things, Pira purchased grow lights and other equipment and supplies for the illegal operation to grow marijauna in the warehouse, and installed wiring for the lights used to grow marijuana.
Conspiring to manufacture 1,000 or more marijuana plants carries a maximum sentence of life imprisonment, and a statutory mandatory minimum sentence ten years’ imprisonment. The charge also carries a term of supervised release following imprisonment of at least five years and up to life, and a maximum fine of $10 million.
Clement pleaded guilty and was sentenced to ten years’ imprisonment on June 3, 2016. Pagluach pleaded guilty and was sentenced to ten years’ imprisonment on June 23, 2016. Bacus, Williams and Freeman have pleaded guilty and are awaiting sentencing. An arrest warrant was issued for Shimon, who is still at large.
The government is represented by Assistant U.S. Attorneys Joseph C. Pedersen and Margaret J. Schneider.
Charleston felon sentenced to over six years in federal prison for assault and gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to six years and three months in prison for a gun charge and assaulting a federal officer, announced United States Attorney Carol Casto. Taurean Amadeus Johnson, 30, previously pleaded guilty to being a felon in possession of a firearm and assaulting a federal officer after a court appearance.
Johnson admitted that on January 16, 2017, law enforcement executed a search warrant at his residence and on a vehicle parked in front of his residence. Officers found a Lorcin L380 semiautomatic pistol in the vehicle. Johnson admitted that the gun belonged to him. Johnson also admitted in a statement to law enforcement that he acquired at least two other handguns, which were also recovered. Johnson was prohibited from possessing any firearm under federal law because of convictions in Cabell County Circuit Court in 2009 for first degree robbery, transporting a controlled substance into the state, and delivery of crack.
Johnson further admitted to assaulting a federal officer. On January 17, 2017, Johnson appeared before the United States Magistrate Judge in Charleston for an initial appearance. When the hearing ended, Johnson became combative leaving the courtroom. Johnson admitted that while being placed in a holding cell, he began choking a deputy of the United States Marshals Service by pulling on his neck tie. The Marshals Service regained control of Johnson through physical restraint.
The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service conducted the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Charges Filed Against Northern California Physician for Unlawfully Dispensing OxycodoneRead the Press Release
SAN FRANCISCO — Christopher Owens, a physician licensed to practice in California, was indicted on Tuesday with unlawfully prescribing oxycodone, announced U.S. Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin. The indictment alleges that between September of 2012 and June of 2015, Owens, 50, now of Indianapolis, IN, intended to act outside the course of usual professional practice and without a legitimate medical purpose when he prescribed oxycodone on numerous occasions. In sum, Owens is charged with 36 counts of distributing oxycodone, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C).
Owens was arrested on Tuesday, July 11, 2017, in Indianapolis, Ind., and is currently scheduled to appear in Indiana before a U.S. Magistrate Judge for a detention hearing on Monday, July 17th.
An indictment merely alleges a crime has been committed. Owens, as well as all defendants, must be presumed innocent unless and until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Sheila Armbrust is prosecuting the case. The prosecution is the result of an investigation by the Drug Enforcement Administration with assistance from the University of California San Francisco Police Department.
Earlier today, federal officials joined in Washington to announce the scope of the recent enforcement actions. Attorney General Jeff Sessions, Department of Health and Human Services (HHS) Secretary Tom Price, M.D., Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting FBI Director Andrew McCabe, Acting Drug Enforcement Administration (DEA) Administrator Chuck Rosenberg, Inspector General Daniel Levinson of the HHS Office of Inspector General (OIG), IRS-Criminal Investigations Chief Jon Fort, CMS Administrator Seema Verma, and Deputy Director Kelly P. Mayo of the Defense Criminal Investigative Service (DCIS) described the program. The enforcement actions were led and coordinated by the Criminal Division and staffed by the Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units. Of the more than 412 people charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.
Cape Cod Man Sentenced for Heroin Trafficking and Money LaunderingRead the Press Release
BOSTON – A Hyannis man was sentenced yesterday in federal court in Boston for trafficking heroin and money laundering.
Christian Chapman, 27, was sentenced by U.S. District Court Chief Judge Patti B. Saris to eight years in prison and four years of supervised release. In March 2017, Chapman pleaded guilty to money laundering and conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin.
During an investigation in 2015 and 2016, law enforcement determined that Chapman and over a dozen co-conspirators were responsible for a significant quantity of the heroin being distributed on Cape Cod. A wiretap investigation led to their arrests and indictments.
Chapman obtained heroin from suppliers in New Bedford and other areas and distributed the heroin to numerous drug dealers on Cape Cod. In total, Chapman accepted responsibility for distributing between 400 and 700 grams of heroin. Chapman rented a home in Hyannis where he stored his narcotics, and in order to pay the rent, Chapman wired money to the individual whose name was on the lease.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
California Man Pleads Guilty to Federal Offense for Illegally Entering White House GroundsRead the Press Release
WASHINGTON – Jonathan Tran, 27, of Milpitas, Calif., pled guilty today to a federal charge stemming from an incident earlier this year in which he illegally entered the grounds of the White House, announced U.S. Attorney Channing D. Phillips and Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Tran pled guilty in the U.S. District Court for the District of Columbia to a charge of entering or remaining in a restricted building or grounds. The charge carries a statutory maximum of a year in prison and a potential fine. The parties agreed to recommend to the Court that any period of supervised release or probation include conditions, including a prohibition barring Tran from entering the District of Columbia while he is under supervision, except for court appearances and meetings with his lawyer. He also would be required to participate in interviews with the Secret Service to assist in determining potential current and future risks.
The Honorable James E. Boasberg scheduled sentencing for Sept. 25, 2017. Tran remains free on personal recognizance pending the sentencing.
“This guilty plea holds Jonathan Tran accountable for illegally entering the grounds of the White House and putting himself and others at risk,” said U.S. Attorney Phillips. “Thanks to the Secret Service, he was arrested and no one was hurt in this defendant’s reckless and potentially dangerous act.”
“The safety and security of the President, the First Family and all staff and visitors to the White House complex is the Secret Service’s first priority,” said Special Agent in Charge Ebert. “Any attempt to breach security and gain unauthorized access is a serious criminal offense and will be dealt with as such. The Secret Service continuously strives to improve and adapt our protective methodologies and security features to meet the ever growing and evolving threat.”
According to the government’s evidence, on March 10, 2017, at about 11:35 p.m., an officer with the U.S. Secret Service’s Uniform Division saw Tran walking from the east side of the south grounds of the White House complex. Tran, who was wearing a hooded sweater or jacket and carrying a backpack, was approaching the South Portico entrance to the White House. When Tran saw the officer, he altered course and began heading toward the South Lawn. The officer confronted Tran, who claimed to be “a friend of the President.” In a search incident to arrest, two cans of pepper spray were found on Tran, including one inside his jacket pocket.
This case was investigated by the Secret Service’s Washington Field Office. It was prosecuted by Assistant U.S. Attorney David J. Mudd of the U.S. Attorney’s Office.
California Man Convicted of Conspiracy to Commit Arson of Popcorn Store and ExtortionRead the Press Release
LAS VEGAS, Nev. – A California man was convicted by a jury on Wednesday of conspiring with others to burn down a Henderson popcorn business and threatening to injure the business owners, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Following a three-day jury trial, Joel Kenneth Ausbie, 53, of Fontana, Calif., was found guilty of one count of conspiracy to commit arson and one count of committing extortion by force or threat of injury. United States District Judge James C. Mahan presided over the trial and scheduled sentencing for Oct. 18, 2017. Ausbie faces the maximum statutory penalty of 20 years in prison and a $250,000 fine.
According to the indictment and court related documents, Ausbie and co-defendant Calvin Robinson paid co-defendant Joseph A. Strickland to set fire to Las Vegas Kettle Corn & Special Events, LLC, in Henderson. Robinson met Strickland in Victorville, Calif., and provided Strickland with directions as well as a note for Strickland to tape to the front window of the business. The note read: “I still don’t have my money. This is the last warning! Next time someone is going to be dead.” On Oct. 30, 2015, Strickland set fire to the business and as a result the business was closed. After the building fire, Robinson met Strickland and paid him for the act. Strickland also admitted to shooting at a private residence during the relevant conspiracy.
Robinson, 41, of Pomona, Calif., pleaded guilty and is scheduled to be sentenced on Aug. 10, 2017, and Strickland, 35, pleaded guilty and is scheduled to be sentenced on Aug. 28, 2017.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorneys Lisa Cartier-Giroux and Cristina D. Silva.
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Buffalo Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Phillip Keomongkoun, 30, of Buffalo, NY, who was convicted of conspiring to possess with intent to distribute, and to distribute, cocaine, was sentenced to two years’ probation by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Joel L. Violanti, who handled the case, stated that between July 2012 and January 18, 2013, the defendant participated in a conspiracy, alleged to have been led by Steven Bennett, to distribute cocaine in the Buffalo area. The investigation into the conspiracy included the court ordered interception of telephone calls and text messages. Those included calls between Keomongkoun and Bennett during which the two discussed cocaine prices and deals. During the calls, the defendant arranged to purchase at least one ounce of cocaine from Bennett, which he then sold to others in the Buffalo area.
On January 18, 2013, Keomongkoun was arrested at 580 Niagara Street in Buffalo and approximately 1.5 ounces of cocaine were seized from his residence.
Charges are pending against Steven Bennett. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.Bronx “YGz” Gang Member Pleads Guilty to Stomping Murder of 16-Year-OldRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that ANTHONY REDDICK, a/k/a “Ant Flocka,” pled guilty today in Manhattan federal court to his involvement in the “Young Gunnaz” or “YGz” gang by participating in the murder of Moises Lora, 16, during which REDDICK and several other YGz gang members stomped Lora to death in a courtyard in the Melrose housing projects in the Bronx on April 16, 2012. REDDICK is scheduled to be sentenced later this year by United States District Judge Valerie E. Caproni, before whom REDDICK pled guilty.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Moises Lora was only 16 years old when Anthony Reddick and his fellow gang members brutally stomped Lora to death in a vicious attack. Thanks to the tireless work of law enforcement, Reddick has now admitted his role in this brutal murder. Although we cannot bring Lora back, we hope that his family will find some small measure of solace in today’s guilty plea.”
According to the Indictment and other documents filed in the case, as well as statements made during REDDICK’s guilty plea and other court proceedings in this case:
REDDICK was a member of the Bronx-based street gang known as the YGz. From 2005 to 2016, members and associates of the YGz enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, and marijuana, and committing acts of violence, including the murder of rival gang members, rival drug traffickers, and innocent bystanders.
As part of his involvement in the YGz gang, REDDICK and several other YGz gang members murdered Lora, a member of a rival gang, on April 16, 2012, in the South Bronx. Specifically, on the date of the murder, a group of YGz members, including REDDICK, got drunk, and began arguing among themselves about who had done the most for the YGz. This group of YGz members went to the territory of a rival gang in the Melrose housing projects to settle their dispute. Upon arriving at the Melrose projects, REDDICK and other members of the YGz saw Lora and attacked him. During the attack, Lora’s skull was fractured in several places. REDDICK and the group left Lora to die. Following the stomping, REDDICK and several of his confederates bragged to fellow YGz members about what they had done.
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REDDICK, 22, of the Bronx, pled guilty to one count of racketeering conspiracy, which carries a maximum sentence of life in prison. REDDICK is the third defendant in United States v. Kareem Lanier, et al., 15 Cr. 537 (VEC), to plead guilty to participating in the stomping murder of Lora.
Mr. Kim praised the outstanding work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New York City Police Department in the investigation of this case. He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by this Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Gina M. Castellano, and Andrew C. Adams are in charge of the prosecution.
Boylston Man Indicted for Distributing and Possessing Child PornographyRead the Press Release
BOSTON – A Boylston man was indicted today on child pornography charges.
Randy Alan Chaplis, 33, was indicted on one count of distributing child pornography and one count of possessing child pornography involving a prepubescent minor and a minor who had not attained 12 years of age. Chaplis was arrested and charged by criminal complaint on March 16, 2017, and has been detained since his arrest.
According to court documents, on Feb. 9, 2017, Chaplis sent two emails to an undercover law enforcement officer that included dozens of images of child pornography, including prepubescent girls engaged in sex acts with adult men. In other email communications with the undercover officer, Chaplis stated that he likes three-to-10 year olds, and that he has “fun” with his girlfriend’s five-year-old daughter when her mother is not home. Chaplis emailed graphic descriptions of the sexual acts he purportedly performed on his girlfriend’s child starting when the child was two-years-old. He asked whether the undercover officer intended to have sexual intercourse with the undercover officer’s infant daughter once she turned three or four. The complaint also alleges that Chaplis bragged to another internet user about having sexual intercourse with a four-year-old girl.
On March 15, 2017, federal agents executed a search warrant at Chaplis’ residence and seized an external hard drive and a desktop computer that included multiple images of child pornography.
The charging statutes provide for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man was arrested and charged yesterday in federal court in Boston for failing to register as a sex offender.
Rodney Anderson, 45, was arrested and charged with one count of failing to register as a sex offender and was detained following an initial appearance yesterday before U.S. District Court Magistrate Judge Donald L. Cabell. A probable cause and detention hearing is set for Monday, July 17, 2017.
Anderson is required to register as a sex offender in Massachusetts based on a North Carolina state court conviction for second degree rape in 1986. Shortly following his release from custody for that conviction in 2014, Anderson left North Carolina for Massachusetts. When he arrived, he failed to report to authorities, but was tracked to a residence in Boston.
Failing to register as a sex offender provides for a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and up to a $250,000 fine. 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; U.S. Marshal John Gibbons of the District of Massachusetts; and Boston Police Commissioner William B. Evans made the announcement. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Birmingham Man Sentenced to 20 Years in Prison for Selling Fentanyl that Caused 20-Year-Old’s DeathRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to 20 years in prison for distributing fentanyl, a potent synthetic opioid painkiller, that caused the death of a 20-year-old Pelham woman, announced Acting U.S. Attorney Robert O. Posey and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
U.S. District Court Judge Madeline H. Haikala sentenced RODRIGUS LEE PEARSON, 31, for illegally distributing fentanyl that resulted in a death in January 2016 in Jefferson County. She also sentenced Pearson for distributing heroin on Feb. 8, 2016, distributing fentanyl on Feb. 23, 2016, possessing with intent to distribute heroin, cocaine and crack cocaine on March 30, 2016, and for being a felon illegally possessing a gun – an H & K .40-caliber pistol – on March 30, 2016. Pearson pleaded guilty to the charges in March. His previous felony conviction was for unlawful possession of a controlled substance in Jefferson County Circuit Court in September 2014.
As part of Pearson’s sentence, the judge ordered him to pay $22,893 in restitution to the family of Ashlynn Bailey to cover her funeral expenses.
Bailey, a former University of Alabama student, died after purchasing fentanyl from Pearson. Police found her in a house on Jefferson Avenue in Birmingham on Jan. 30, 2016, after responding to a call of a suspected drug overdose death. Witnesses said Bailey had been purchasing heroin from Pearson and that he likely substituted the fentanyl, which was found in her system, for heroin.
“In those cases where we can prove a death resulting from an illegal sale of drugs, we will pursue an enhanced sentence as we did in this case,” Posey said. “When the use of an illegally-sold controlled substance results in the overdose death of the consumer, federal law provides for a minimum 20-year sentence for the dealer. The rapid rise of overdose deaths in our communities requires that we use all available means to disrupt and punish those who sell these deadly drugs,” he said. “We also encourage our state and local law enforcement partners to consider federal prosecution when they have a death-resulting case in their jurisdiction.”
“Ashlynn Bailey, the victim who died from taking the drugs that Pearson sold her, wasn’t given a chance to plead,” Hamilton said. “She was sentenced to death when Pearson delivered the fentanyl-laden drugs. If you are a drug dealer, you may soon become a murderer and you will be caught and prosecuted.”
According to Pearson’s guilty plea, a taxi driver called Birmingham Police after finding Bailey unresponsive at the western Birmingham house. The taxi driver had left her there the night before and returned to pick her up the next morning to take her to a business on U.S. 280 in Birmingham where Bailey said she worked and could get cash to pay cab fare she owed.
Bailey had borrowed the taxi driver’s cell phone and placed calls the night before. Police later determined that one of the two numbers she called was to a phone Pearson used for drug transactions.
The two drug distribution charges Pearson pleaded guilty to resulted from controlled purchases that a DEA confidential source made from Pearson after contacting the dealer at the same number Bailey had called from the taxi driver’s phone the night she died. On the first occasion, DEA agents obtained heroin from Pearson. On the second, agents received fentanyl despite having attempted to buy heroin. A third charge of possession with the intent to distribute heroin stems from Pearson being found in possession of heroin, cocaine, crack cocaine and the .40-caliber pistol, as well as drug paraphernalia, following a traffic stop.
DEA investigated the case, which Assistant U.S. Attorneys Gregory R. Dimler and Jim Weil prosecuted.
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Baton Rouge-Based Medicare Fraud Strike Force Announces Charges Against Four More Individuals for Health Care Fraud and Related OffensesRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today the unsealing of two federal grand jury indictments charging four individuals with health care fraud and related offenses. The cases were unsealed as part of the 2017 National Health Care Fraud Takedown, during which federal, state, and local law enforcement partners announced charges of more than 400 defendants across 41 different federal judicial districts.
The Medicare Fraud Strike Force is part of the joint initiative announced in May 2009 between the U.S. Department of Justice and the U.S. Department of Health and Human Services to reduce and prevent Medicare and Medicaid fraud through enhanced cooperation. In December 2009, a Medicare Fraud Strike Force team was deployed in the U.S. Attorney’s Office in Baton Rouge, Louisiana. Strike Force teams bring together the resources of the U.S. Department of Health and Human Services—Office of Inspector General, the Federal Bureau of Investigation, the U.S. Department of Justice’s Criminal Division—Fraud Section, the U.S. Attorneys’ Offices, and other law enforcement agencies, including, in Baton Rouge, the Louisiana Attorney General’s Medicaid Fraud Control Unit. Over the past seven years, the team has continued working in Baton Rouge and expanded across southern Louisiana.
Louisiana Spine & Sports
In the first case, a federal grand jury has returned an indictment charging John Eastham CLARK, M.D., age 65, of Baton Rouge, Louisiana, and Charlene Anita SEVERIO, age 54, of Walker, Louisiana, with conspiracy to commit wire fraud and health care fraud. The charges stem from Dr. CLARK and SEVERIO’s role in a $4.4 million fraud scheme in which Dr. CLARK and SEVERIO allegedly submitted false claims to Medicare and private insurance companies on behalf of Louisiana Spine & Sports LLC, a pain management clinic in Baton Rouge co-owned by Dr. CLARK. Namely, according to the indictment, Dr. CLARK, and SEVERIO, his billing supervisor, falsified claims to indicate that certain minor surgical procedures occurred on separate days as patient visits, and then instructed employees to create false records substantiating those claims. The indictment also alleges that the defendants submitted false claims seeking reimbursement for medically unnecessary quantitative urinalysis tests. The indictment charges both defendants with two counts of conspiracy to commit wire fraud and health care fraud, and charges Dr. CLARK with an additional two counts of health care fraud. This ongoing investigation is being handled by Dustin Davis, who serves as Assistant Chief of the Department of Justice’s Criminal Division—Fraud Section, Assistant U.S. Attorney Adam Ptashkin, and Jared Hasten of the Fraud Section.
Express ACA
In the second case, a federal grand jury has returned an indictment charging Keaton L. COPELAND, age 32, of Miramar, Florida, and Dorothy V. DELIMA, a/k/a Dorothy V. Copeland, age 45, of Davie, Florida, with a scheme to submit fraudulent health insurance applications to Blue Cross/Blue Shield of Louisiana and other private insurers. According to the indictment, the defendants owned and operated Express ACA, LLC, a health insurance brokerage company in Florida, and they devised a scheme to submit fraudulent health insurance applications to various insurers for health insurance plans that would satisfy the Affordable Care Act’s “minimum essential coverage” requirement. Specifically, according to the indictment, the defendants submitted numerous fraudulent applications for so-called “bronze plans,” the premiums for which were fully subsidized by the U.S. Government, without the named applicants’ knowledge, consent, or authorization. The indictment charges both COPELAND and DELIMA with conspiracy to commit wire fraud and five counts of wire fraud, and the indictment also charges COPELAND with additional counts of wire fraud and aggravated identity theft. This ongoing investigation is being handled by Assistant United States Attorneys J. Brady Casey and Ryan R. Crosswell.
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Since its inception, the Baton Rouge-based Medicare Fraud Strike Force has charged more than 80 defendants with health care fraud and related offenses, achieving a 95% conviction rate and sending nearly 50 of those defendants to federal prison.
Acting U.S. Attorney Corey Amundson stated, “Our medical providers spend countless hours caring for our everyday ailments, improving and extending our lives, and often fighting for us in our most desperate hours. They are rightly viewed as some of the most trusted and respected members of our society. Too often, the few dishonest providers hijack this well-earned respect and trust to line their own pockets through fraud. My office, which has sent nearly 50 healthcare fraud defendants to federal prison since the inception of the Medicare Fraud Strike Force, will continue to work tirelessly with our outstanding federal, state, and local partners to root out these bad actors. I greatly appreciate all those who have contributed to this important and successful law enforcement effort.”
“The indictments returned in both of these cases affirm our commitment to protecting the integrity of our nation’s health insurance programs,” said Special Agent-in-Charge C.J. Porter of the United States Department of Health and Human Services, Office of Inspector General’s (OIG) Dallas Regional Office. “These investigations are also indicative of our continuing efforts to work closely with our Federal and State law enforcement partners to identify and bring to justice those who deliberately manipulate health insurance systems to fraudulently obtain money from Medicare, Medicaid and other federally funded health care programs.”
Jeffrey S. Sallet, the Special Agent-in-Charge of the New Orleans Division of the Federal Bureau of Investigation, stated, “Countless Americans rely on the Medicare and Medicaid programs for essential health coverage. The New Orleans Division of the FBI, along with its local, state and federal partners, will continue to identify and pursue any individuals or entities who would seek to harm and diminish these programs through fraud.”
Louisiana Attorney General Jeff Landry stated, “The success of this initiative shows that collaboration between law enforcement agencies at all levels combats crime. Our investigators work around the clock to fight waste, fraud, and abuse in Medicaid. My office and I are committed to doing all we can to save taxpayer money and protect this program for the people in our State that need it the most. I am proud of the results our team achieved during this operation and what we do daily to reduce Medicaid fraud.”
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Baltimore County Man Sentenced to 36 Months in Federal Prison for Money Laundering and Bankruptcy FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On July 11, 2017, U.S. District Judge J. Frederick Motz sentenced Eric Myles Gordon, age 49, of Baltimore County, Maryland, to 36 months in prison, followed by 3 years of supervised release. Gordon was also ordered to pay restitution of $545,875. On April 7, 2017, a jury convicted Gordon of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, and falsification of records in bankruptcy.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation; and U.S. Trustee Judy Robbins and the Baltimore office of the United States Trustee Program.
According to evidence presented at the three-week trial in April 2017, Gordon opened two businesses in 2009, the Gordon Institute for Sports Performance and the Gordon Institute for Human Performance. By May of 2012, Gordon filed a petition for bankruptcy under Chapter 11 for GISP, and on August 9, 2012, filed a joint petition in bankruptcy under Chapter 7 on behalf of himself and his wife. The petition sought the discharge of over $2 million in both secured and unsecured debt.
In this same time frame, Gordon and co-conspirator, Saleh Stevens, discussed a way for Gordon to get funds that were “tainted,” would not “pass the smell test,” and had to be “kept off the government’s radar.” These funds were stolen by Stevens from his employer, Hanover Insurance.
In total, $545,875 was funneled through Gordon’s business bank account, with Gordon realizing approximately $36,000 as his fee for laundering the funds for Stevens. Ultimately, over $500,000 of these funds were provided to an individual who ran a NASCAR racing team.
In connection with the Chapter 7 petitions in bankruptcy, Gordon was required to produce bank records, which showed the deposits in September of 2012 totaling $545,875. In an effort to falsely explain the movement of funds, Gordon provided a pdf file styled as a “bridge loan” agreement, along with an explanation for the deposit of $545,875 and nearly immediate dissipation of funds in the account. This document purported to be executed on September 13, 2012, but was signed by Gordon as the borrower on September 10, 2012; the document was not signed by the lender. The bridge loan agreement was drafted after the fact by Stevens as part of the false story crafted by Gordon to explain the movement of funds through his bank account.
Stevens pled guilty in August 2014 to mail fraud and is awaiting sentence.
Acting United States Attorney Stephen M. Schenning commended the FBI, and the United States Trustee’s Baltimore Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Judson T. Mihok and P. Michael Cunningham, who prosecuted the case.
Attorney Involved in Scheme that Targeted Distressed Homeowners Sentenced to 30 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRADFORD BARNEYS, 51, of Odenton, Maryland, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by three years of supervise release, for conspiring with Timothy W. Burke in a long-running fraud scheme that targeted distressed homeowners throughout Connecticut. BARNEYS was an attorney licensed to practice in Connecticut and has an office in Bridgeport.
According to court documents and statements made in court, between approximately 2010 and November 2015, Timothy W. Burke, formerly of Easton, engaged in a scheme to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents that Burke presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. Burke also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, Burke rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that Burke owned the property.
Burke or one of his agents then collected rent from tenants, and Burke used the funds for his own benefit. He also failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowner’s mortgages and property taxes, and he failed to pay any rental income he was collecting to the homeowners. Many of the properties Burke purportedly purchased were ultimately foreclosed upon by the mortgage lender.
Burke undertook extensive efforts to disguise his true identity, and hide his criminal past, from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds.
Between approximately 2011 to at least 2014, BARNEYS participated in dozens of meetings with Burke and with homeowners at BARNEYS’ law offices in Bridgeport. At the meetings, Burke represented to homeowners that he would purchase their properties and presented to the homeowners quitclaim deeds, management agreements, indemnification agreements, and third party authorizations.
BARNEYS was paid more than $72,000 in fees and other monies for his participation in the fraud.
At some point after BARNEYS began representing Burke in these meetings with homeowners, BARNEYS knew that Burke had no intention of buying the properties and paying the outstanding mortgages on the properties. Nevertheless, BARNEYS continued to participate in these meetings and represented that these transactions were legitimate. When questioned by homeowners about the status of their sales, BARNEYS would assure them that their sales to Burke or one of his companies were progressing as Burke promised. BARNEYS also knew that, once Burke obtained the properties from the homeowners, he would rent them out to tenants.
BARNEYS also represented Burke and his companies in eviction proceedings against tenants.
The investigation further revealed that BARNEYS engaged in separate fraud scheme similar to the scheme that Burke engineered. BARNEYS assisted two Maryland residents in purchasing a commercial property located on Boston Avenue in Bridgeport. BARNEYS then acted as a purported landlord for the property, executed long-term lease agreements with at least two tenants, and collected tens of thousands of dollars of rent without the actual owners’ knowledge or authorization and kept the funds for his own use.
On February 21, 2017, BARNEYS pleaded guilty to one count of conspiracy to commit mail and wire a fraud.
BARNEYS’ law license was temporarily suspended by state authorities after he pleaded guilty, with additional proceedings scheduled to determine whether further discipline is warranted. Judge Shea ordered BARNEYS not to apply for reinstatement of his law license, and not to engage in any business related to real estate, while he is on supervised release.
On January 24, 2017, Burke pleaded guilty to one count of mail fraud and one count of tax evasion. On April 28, 2017, he was sentenced to 108 months of imprisonment.
This matter was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, U.S. Postal Inspection Service, and Internal Revenue Service – Criminal Investigation Division, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted by Assistant U.S. Attorneys David T. Huang and Sarah P. Karwan.
As Part of National Health Care Fraud Takedown, Federal Prosecutors in Los Angeles Charge 14 Defendants in Fraud Schemes that Allegedly Cost Public Healthcare Programs nearly $150 MillionRead the Press Release
LOS ANGELES – In the largest-ever health care fraud enforcement action by federal prosecutors, 14 defendants – including doctors, nurses and other licensed medical professionals – have been charged in the Central District of California for allegedly participating in health care fraud schemes that caused approximately $147 million in losses.
The defendants charged locally are among hundreds of people charged across the United States in cases that cumulatively allege approximately $1.3 billion in false billings. The nationwide sweep includes charges against more than 120 defendants – some of whom are doctors – who allegedly prescribed and distributed opioids and other dangerous narcotics.
In the Central District of California, 14 defendants were charged for their roles in schemes to defraud health insurance programs such as Medicare. The cases allege health care fraud and kickback schemes involving compounded drugs, home health services, physical therapy, acupuncture, Medicare Part D prescription drugs, diagnostic sleep studies and hospice care.
“Health care fraud schemes such as these threaten the vital trust between a patient and his or her health care provider, undermine the integrity of our health care system, and cost all Americans billions of dollars,” said Acting United States Attorney Sandra R. Brown. “Today’s announcement serves as a clear warning that we will continue to work with our law enforcement partners to identify and hold accountable health care professionals who commit these crimes.”
The defendants charged locally include four physicians, including Dr. Jeffrey Olsen, who was charged with illegally prescribing controlled substances, including the opiate oxycodone.
The 57-year-old Olsen surrendered to authorities on Tuesday after being indicted last week by a federal grand jury on 34 counts of illegally prescribing controlled drugs, including oxycodone, and one count of false statement on a DEA registration application. Olsen, a resident of Laguna Beach, allegedly sold prescriptions to addicts and drug dealers in exchange for fixed cash fees, without any medical basis for the prescriptions.
During the investigation, Olsen also sold hundreds of prescriptions to addicts in other states, such as Oregon, without ever seeing the “patients” for an in-person examination. In text messages to these out-of-state customers, Olsen allegedly told customers that, in exchange for exorbitant fees as high as $3,000, he would write prescriptions for whatever drug they wanted, and that he would never check whether they were actually taking the prescribed drugs or whether they were getting additional narcotic prescriptions from other doctors. Olsen allegedly sold more than 1.2 million pills of narcotics, which were almost entirely at maximum strength, in addition to hundreds of thousands of pills of other controlled drugs such as the sedatives Xanax and Soma. The case against Olsen is being prosecuted by Assistant United States Attorneys Ben Barron and Bryant Yang.
In another local case involving a physician, Dr. Thomas S. Powers and Anthony Paduano were arrested Tuesday on healthcare fraud charges that allegedly bilked TRICARE.
The indictment in this case alleges that Powers, of Santa Ana, authorized prescriptions for compounded medications for patients he never examined. Under an agreement, Paduano, of Newport Beach, allegedly paid Powers $200 for each prescription. Paduano received approximately $1.2 million for referring the prescriptions to a local pharmacy that billed TRICARE more than $4.8 million and was paid more than $3.1 million. This case is being handled by Assistant United States Attorneys Mark Aveis, Paul Stern and Cassie Palmer.
“Americans already struggling with health care issues and rising premiums are further burdened with each dollar lost to fraud,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The losses estimated in Los Angeles for this operation alone are staggering as the abundance of health care fraud schemes in southern California adds considerably to this nationwide crime issue. By collaborating with our partners, we will continue to hold accountable those who get rich by targeting federal health care programs with fraud.”
“Those who would enrich themselves through healthcare fraud – including billing for unnecessary services, accepting kickbacks, and billing for prescriptions that were never provided – are putting profits over patients, stealing from government health programs and taxpayers alike,” said Special Agent in Charge Christian Schrank, of the U.S. Department of Health and Human Services Office of Inspector General. “These operations show yet again our commitment to working with our federal and state law enforcement partners. In fighting this epidemic, we must all stand together.”
“IRS Criminal Investigation will not stand still while criminals line their pockets with illicit proceeds obtained from publicly funded health care programs,” said IRS Criminal Investigation Special Agent in Charge R. Damon Rowe. “It depletes scarce taxpayer dollars and will not be tolerated. IRS Criminal Investigation will continue to work with our federal and state law enforcement partners to bring justice to those individuals who prey on the nation's health care system for their own personal greed.”
“Our office, in partnership with our fellow investigative agencies, will continue to uncompromisingly investigate and bring to justice the people who perpetrate these criminal acts,” said Amtrak Inspector General Tom Howard. We will remain vigilant in protecting Amtrak employees, retirees, and their dependents, by ensuring our health care dollars are not wasted on fraudulent providers,"
“The Department of Labor – Employee Benefits Security Administration will continue to vigorously investigate wrongdoers committing health care fraud against employer sponsored health plans in Southern California which also impact TRICARE, Medicare, Medicaid” said Crisanta Johnson, DOL-EBSA’s Los Angeles Regional Office.
The other cases filed in federal court in Los Angeles as part of the nationwide sweep are:
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Aniceto Baliton, of Diamond Bar, co-owner and managing employee of Bliss Hospice in Glendora, was charged yesterday with one count of conspiracy to pay and receive illegal remunerations for health care referrals. The charge stems from Baliton’s role in a fraud scheme to pay kickbacks in exchange for Medicare beneficiaries referred to Bliss and billed by Bliss for hospice services. As part of the fraud scheme, Baliton and the co-owners of the hospice also agreed to generate cash for the illegal kickbacks by disguising such monies as payroll expenses. Based on the referrals that Baliton and his co-conspirators obtained through illegal kickbacks, Bliss submitted claims to Medicare and was paid approximately $2.4 million. The case is being handled by DOJ Trial Attorney Claire Yan.
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Aleksandr Suris and Maxim Sverdlov, co-owners and operators of Royal Care Pharmacy in Los Angeles, were arrested Monday on charges related to a scheme that allegedly brought in more than $41.5 million from Medicare and CIGNA. The indictment in this case charges Suris with two counts of conspiracy to commit health care fraud and 10 counts of health care fraud, and Sverdlov with one count of conspiracy to commit health care fraud and four counts of health care fraud. The defendants allegedly submitted fraudulent bills for prescription drugs that were never filled by the pharmacy or were not provided to the person to whom the drug was prescribed. The case is being handled by DOJ Trial Attorney Robyn N. Pullio.
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Dr. Kanagasabai Kanakeswaran was indicted late last month on one count of conspiracy to pay and receive kickbacks for health care referrals and four counts of receiving kickbacks for health care referrals. The charges arise from a kickback conspiracy at a home health company called Star Home Health Resources. The owners and operators of Star allegedly paid kickbacks to referring physicians, including Dr. Kanakeswaran, in exchange for the physicians referring Medicare beneficiaries to receive home health services from Star. The indictment alleges that from May 2008 to May 2016, Star was paid $4,157,311 from Medicare based on home health services that Dr. Kanakeswaran referred to Star in exchange for illegal kickbacks. The case is being handled by Assistant United States Attorney Alex Porter and DOJ Trial Attorney Claire Yan.
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Jamen Oliver Griffith and Damon Glover were charged late last month with conspiring to solicit, receive and pay illegal kickbacks for health care referrals. The charges stem from defendants’ role in a scheme involving undisclosed payments for generating and steering prescriptions of compounded drugs to Valley View Drugs, Inc., a pharmacy located in La Mirada. As set forth in plea agreements that have been filed in court, Griffith and Glover owned and operated Western Medical Solutions, a “marketing” company that paid non-employee “marketers” to generate compounded drug prescription referrals for Valley View. Commission payments to “marketers” for prescription referrals were based on a percentage of the amount insurance companies reimbursed Valley View. Health insurers ultimately reimbursed Valley View $13,860,083 for prescriptions generated by WMS-affiliated marketers. In turn, Valley View paid WMS approximately $7,622,864 for the prescription referrals. The case is being handled by Assistant United States Attorney Ashwin Janakiram.
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Xiao “Kimi” Gudmundsen, a licensed acupuncturist and the owner of Healthy Life Acupuncture Center, Inc., which operated at two sites in Los Angeles and Riverside, was charged on June 22, with eight counts of health care fraud and three counts of money laundering. The charges arise from allegations that Gudmundsen recruited Amtrak employees to visit Healthy Life and then, among other things, billed the Amtrak health care plan for acupuncture and other services that were not actually provided. The indictment also charges that Gudmundsen laundered payments received from Amtrak for the false bills through various accounts, including accounts held in the names of relatives. Also charged in the indictment are Suzana Cortez, a Healthy Life employee (who faces five counts health care fraud) and Gladys Perez, an Amtrak employee (who faces two counts of health care fraud). This case is being handled by Assistant United States Attorney Poonam Kumar.
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James Chen pleaded guilty on June 19 to a health care fraud charge related to his pharmacy processing and billing TRICARE for approximately $62 million for fraudulent prescriptions for compounded medications after Chen paid more than 50 percent in referral fees to marketers. The case is being handled by Assistant United States Attorneys Mark Aveis, Paul Stern and Cassie Palmer.
Indictments and criminal informations contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The cases from the Central District of California are the result of investigations conducted by the United States Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the Defense Criminal Investigative Service; the Drug Enforcement Administration; IRS Criminal Investigation; the Office of Personnel Management, Office of Inspector General; the Veterans Administration, Office of the Inspector General; the Department of Labor - Employee Benefits Security Administration; the California Department of Insurance, Fraud Division; the United States Postal Service, Office of the Inspector General; Amtrak’s Office of the Inspector General; the California Board of Pharmacy; California’s Department of Health Care Services; and the California Department of Justice.
The local cases were filed by Assistant United States Attorneys and Trial Attorneys with the Justice Department’s Medicare Fraud Strike Force. The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
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Albuquerque Man Sentenced to Prison for Conviction on Federal Fraud and Theft of Mail ChargesRead the Press Release
ALBUQUERQUE – Jeremy L. Lara, 37, of Albuquerque, N.M., was sentenced this afternoon in federal court to 30 months in prison followed by three years of supervised release for his conviction on federal fraud and theft or mail charges.
Lara was arrested in May 2016, on a criminal complaint charging him with theft of mail on May 19, 2016, in Sandoval County, N.M., after law enforcement officers found Lara in the process of stealing mail from a community mailbox. According to the complaint, officers recovered a counterfeited USPS arrow key as well as stolen mail from inside Lara’s vehicle.
Lara was subsequently charged in a ten-count indictment on June 14, 2016. Lara was charged with the following: three counts of bank fraud and three counts of aggravated identity theft on Nov. 11, 2015, Nov. 13, 2015, and Nov. 15, 2015; two counts of possession of a counterfeit postal key on Dec. 19, 2015 and May 19, 2016; and three counts of theft or receipt of stolen mail on Dec. 21, 2015 and May 19, 2016. The indictment alleges that the crimes took place in Bernalillo and Sandoval Counties, N.M. The indictment includes forfeiture provisions requiring Lara to forfeit $4,870.28 to the United States.
On Oct. 13, 2016, Lara pled guilty to all counts of the indictment. In entering the guilty plea, Lara admitted that he stole mail by using a counterfeit USPS arrow key that he created. Lara further admitted that he specifically sought out driver’s licenses, bank cards and other personal identifying information to access the bank accounts of legitimate card holders, and impersonated the account holders by using their bank cards and PIN numbers to withdraw cash from ATMs.
This case was investigated by the U.S. Postal Inspection Service and the Rio Rancho Police Department. Assistant U.S. Attorney Nicholas Jon Ganjei prosecuted the case.
Akron man sentenced to 16 years in prison for selling fentanyl that resulted in fatal overdoseRead the Press Release
An Akron man was sentenced to 16 years in prison for selling fentanyl that caused a fatal overdose, law enforcement officials said.
Steven D. Daniels, 32, previously pleaded guilty to one count of distribution of fentanyl that resulted in death.
Daniels sold fentanyl that caused the 2016 fatal overdose of a person identified as T.B. in Akron, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the Akron Police Department and Drug Enforcement Administration
12 July 2017
Zuni Pueblo Man Pleads Guilty to Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Justin Owen Poblano, 24, an enrolled member and resident of Zuni Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an aggravated child sexual abuse charge under a plea agreement that recommends a maximum sentence of 15 years of imprisonment. Poblano will be required to register as a sex offender after completing his prison sentence. The guilty plea was announced by Acting U.S. Attorney James D. Tierney and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department.
Poblano was arrested in Aug. 2012, on an indictment charging him with engaging in a sexual act with a child between 12 and 16 years of age on June 10, 2012, on the Zuni Pueblo in McKinley County, N.M. According to court documents, proceedings in the case were delayed during the pendency of competency proceedings. Poblano remained in federal custody from the time of his arrest until the court found him competent in Oct. 2014.
During today’s proceedings, Poblano pled guilty to a felony information charging him with aggravated sexual abuse. In entering the guilty plea, Poblano admitted that on June 10, 2012, while at a residence on the Zuni Pueblo, he forced the victim to engage in a sexual act. Poblano remains in custody pending a sentencing hearing, which is scheduled for July 25, 2017, in Santa Fe, N.M.
This case was investigated by the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback is prosecuting this case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
The case also is being prosecuted under Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
York Man Indicted for Armed Bank Robbery and Armed Robbery of A Convenience StoreRead the Press Release
HARRISBURG– The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Austin Carr, age 23, of York, Pennsylvania, was indicted by a federal grand jury with armed bank robbery, the armed robbery of a convenience store, and two counts of possession of a firearm in furtherance of a crime of violence.
According to U.S. Attorney Bruce D. Brandler, the indictment alleges that Carr robbed the Turkey Hill on West Market Street in York on June 14, 2017, using a silver and black .380 caliber, Smith and Wesson handgun. Carr allegedly used the same firearm to rob the M&T Bank on West Market Street in York on June 17, 2017.
The matter was investigated by the FBI Capital City Violent Crimes Task Force, the York City Police Department, the West York Borough Police Department, and the West Manchester Township Police Department. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Would-Be Bomber Sentenced to 120 Months ImprisonmentRead the Press Release
G. F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces Clinton Scott Bass, age 34, of Hahira, Georgia, was sentenced today by Senior United States District Court Judge Hugh Lawson in Valdosta. Mr. Bass was sentenced to 120 months imprisonment, the maximum sentence under the statute and guidelines, for attempting to receive and transport explosive materials with intent to kill, injure or intimidate.
In March 2017, Mr. Bass solicited and paid for what he believed to be a mail bomb through the Internet. Mr. Bass subsequently attempted to arm the bomb before delivering it to the doorstep of his intended target. Through the efforts of the Federal Bureau of Investigation and other law enforcement agencies, Mr. Bass’s attempt was thwarted and no one was injured.
“The FBI committed substantial resources to spearheading this investigation. But for the dedication, hard work and ingenuity of the FBI agents, and the other federal and local law enforcement officers working with them, this case could well have ended with tragic consequences,” said United States Attorney Peterman. “Instead, justice has been done.”
David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated: “This investigation and its resulting arrest, guilty plea, and sentencing, while expending exhaustive law enforcement resources, prevented an imminent homicide and removed a dangerous individual from our streets. The FBI would like to thank its many law enforcement partners that were so vital to this effort for their commitment and dedication in seeing this matter through.”
The case was investigated by the Federal Bureau of Investigation, United States Postal Service, Valdosta Police Department, Lowndes County Sheriff’s Department, and the Hahira Police Department. Assistant United States Attorneys Julia C. Bowen and Peter D. Leary prosecuted the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
West Haven Woman Admits Robbing 3 Connecticut BanksRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COURTNEY WORTHINGTON, 29, of West Haven, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of bank robbery and admitted that she robbed a total of three Connecticut banks in December and January.
According to court documents and statements made in court, WORTHINGTON robbed the TD Bank at 636 Campbell Avenue in West Haven on December 19, 2016; the Peoples Bank at 198 Amity Street in Woodbridge on January 2, 2017, and the TD Bank at 184 Route 81 on January 5, 2017. During each robbery, WORTHINGTON handed the teller a note containing threats and demanding money.
WORTHINGTON was arrested on January 5 at a hotel in East Haven. She has been detained since her arrest.
Judge Meyer scheduled sentencing for October 11, 2017, at which time WORTHINGTON faces a maximum term of imprisonment of 20 years.
This investigation has been conducted by the FBI, the Connecticut State Police and the West Haven and Woodbridge Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Waterbury Man Pleads Guilty to Heroin Charge Stemming from Overdose Death in WinstedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PETER HASKELL, 32, of Waterbury, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession with intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the morning of April 17, 2016, Winchester Police officers and emergency medical personnel responded to a Winsted residence on the report of an unresponsive woman. The woman, who was 27, was pronounced deceased at the scene. Within the residence, officers located and seized several opened and unopened wax folds (“bags”) of suspected heroin/fentanyl, and other narcotics paraphernalia. Investigators also seized the victim’s cell phone.
The investigation revealed that the day before she was found dead, the victim traveled to Waterbury to purchase heroin from HASKELL.
The Connecticut Chief Medical Examiner’s Office determined that the victim’s death was caused by acute intoxication due to the combined effects of fentanyl, heroin, hydrocodone and alcohol.
HASKELL was arrested on a federal criminal complaint on April 21, 2017, and has been detained since his arrest. When he is sentenced, he faces a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Winchester Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorneys Robert M. Spector and Natasha Freismuth.
United States Settles Lawsuit over Electric Cable in Boston HarborRead the Press Release
A lawsuit was settled today involving an electrical cable beneath Boston Harbor that runs across two shipping channels that the government alleged was not placed at the required depth when it was installed in 1990. The settlement will allow the Boston Harbor Deep Draft Navigation Improvement Project to continue and ensure that modifications will come at no cost to the United States or Massport.
NSTAR Electric Company d/b/a Eversource Energy (NSTAR), NSTAR subsidiary Harbor Electric Energy Company (HEEC), and the Massachusetts Water Resources Authority (MWRA) have entered into an agreement to settle a lawsuit filed against them by the United States in connection with a submarine electrical cable that lies beneath Boston Harbor and runs across two federal shipping channels. The government’s complaint alleged that the cable was not installed as deep as required by a permit issued by the New England District of the U.S. Army Corps of Engineers (USACE).
“The settlement will remedy the Clean Water Act and River and Harbors Act permit violations,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The permit violations in connection with the electric cable running under Boston Harbor will be resolved, so that the Deep Draft Project can proceed as scheduled. In addition, the settlement shows the commitment we place on upholding the integrity of U.S. Army Corps of Engineers dredge-and-fill permits, and the work the Corps does to protect our Nation’s waterways and highways of commerce.”
“This settlement will allow the Deep Draft project to proceed as planned,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “The Deep Draft project is necessary to keep the Port of Boston and its shipping facilities competitive with other East Coast ports. The settlement also means there will be no interference with the provision of electricity to the Deer Island Waste Water Treatment Plant, which is critical to keeping Boston Harbor clean. This is a victory for both the local economy and the environment.”
The cable, installed in 1990, extends from an NSTAR electrical substation in South Boston to Deer Island. Its purpose was to provide electricity to power the construction and operation of the Deer Island Waste Water Treatment Plant, which is run by the MWRA. The permit required the cable to be embedded at least 25 feet below the bottom of two shipping channels that it crosses, the Reserved Channel and the Main Ship Channel.
The improper installation of the cable took on urgency in 2014, when Congress authorized the deepening of Boston Harbor, including the channels crossed by the cable. The $310 million project to deepen the shipping channels will provide increased depth between Massachusetts Bay and Conley Container Terminal to accommodate the new generation of larger container ships. The harbor deepening project, known as the Deep Draft project, is being led by the USACE in partnership with Massport, which operates Conley Container Terminal. USACE determined that the existing depth of the cable was likely to interfere with the dredging operations of the Deep Draft project, putting the entire project at risk.
The government’s complaint alleged that the permittees – NSTAR, HEEC, and the MWRA – violated two federal laws under which the permit was issued, the Rivers and Harbors Act of 1899 and the Clean Water Act. Massport intervened in the lawsuit, siding with the United States.
Under the terms of the settlement, HEEC will lay a new electrical cable across Boston Harbor from South Boston to Deer Island – but outside the Reserved Channel and out of the way of the Deep Draft project – by the end of 2019. HEEC will then remove the existing cable. Neither the United States nor Massport will bear any of the cost to install or maintain the new cable or remove the existing cable.
Acting Assistant Attorney General Wood, Acting U.S. Attorney Weinreb, and Colonel Christopher Barron, District Engineer and Commander of the USACE New England District, made the announcement today. The case was handled by Assistant U.S. Attorney Christine Wichers of Weinreb’s Civil Division.
United States Settles Lawsuit over Electric Cable in Boston HarborRead the Press Release
BOSTON – A lawsuit was settled today involving an electrical cable beneath Boston Harbor that runs across two shipping channels that the government alleged was not placed at the required depth when it was installed in 1990. The settlement will allow the Boston Harbor Deep Draft Navigation Improvement Project to continue and ensure that modifications will come at no cost to the United States or Massport.
NSTAR Electric Company d/b/a Eversource Energy (NSTAR), NSTAR subsidiary Harbor Electric Energy Company (HEEC), and the Massachusetts Water Resources Authority (MWRA) have entered into an agreement to settle a lawsuit filed against them by the United States in connection with a submarine electrical cable that lies beneath Boston Harbor and runs across two federal shipping channels. The government’s complaint alleged that the cable was not installed as deep as required by a permit issued by the New England District of the U.S. Army Corps of Engineers (USACE).
“This settlement will allow the Deep Draft project to proceed as planned,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “The Deep Draft project is necessary to keep the Port of Boston and its shipping facilities competitive with other East Coast ports. The settlement also means there will be no interference with the provision of electricity to the Deer Island Waste Water Treatment Plant, which is critical to keeping Boston Harbor clean. This is a victory for both the local economy and the environment.”
“The settlement will remedy the Clean Water Act and River and Harbors Act permit violations,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The permit violations in connection with the electric cable running under Boston Harbor will be resolved, so that the Deep Draft Project can proceed as scheduled. In addition, the settlement shows the commitment we place on upholding the integrity of U.S. Army Corps of Engineers dredge-and-fill permits, and the work the Corps does to protect our Nation’s waterways and highways of commerce.”
The cable, installed in 1990, extends from an NSTAR electrical substation in South Boston to Deer Island. Its purpose was to provide electricity to power the construction and operation of the Deer Island Waste Water Treatment Plant, which is run by the MWRA. The permit required the cable to be embedded at least 25 feet below the bottom of two shipping channels that it crosses, the Reserved Channel and the Main Ship Channel.
The improper installation of the cable took on urgency in 2014, when Congress authorized the deepening of Boston Harbor, including the channels crossed by the cable. The $310 million project to deepen the shipping channels will provide increased depth between Massachusetts Bay and Conley Container Terminal to accommodate the new generation of larger container ships. The harbor deepening project, known as the Deep Draft project, is being led by the USACE in partnership with Massport, which operates Conley Container Terminal. USACE determined that the existing depth of the cable was likely to interfere with the dredging operations of the Deep Draft project, putting the entire project at risk.
The government’s complaint alleged that the permittees – NSTAR, HEEC, and the MWRA – violated two federal laws under which the permit was issued, the Rivers and Harbors Act of 1899 and the Clean Water Act. Massport intervened in the lawsuit, siding with the United States.
Under the terms of the settlement, HEEC will lay a new electrical cable across Boston Harbor from South Boston to Deer Island – but outside the Reserved Channel and out of the way of the Deep Draft project – by the end of 2019. HEEC will then remove the existing cable. Neither the United States nor Massport will bear any of the cost to install or maintain the new cable or remove the existing cable.
Acting U.S. Attorney Weinreb, Acting Assistant Attorney General Wood, and Colonel Christopher Barron, District Engineer and Commander of the USACE New England District, made the announcement today. The case was handled by Assistant U.S. Attorney Christine Wichers of Weinreb’s Civil Division.
USNCB Attends the First Extraordinary Meeting of Heads of National Central Bureaus in the AmericasRead the Press Release
Welcome reception at the Heads of National Central Bureaus of the Americas in Bogota, Columbia.From July 11th through July 12th, 2017 Acting Director Wayne Salzgaber and Deputy Chief of Staff Joe Ferrigno attended the First Extraordinary Meeting of Heads of National Central Bureaus in the Americas that took place in Bogota, Colombia. The U.S. National Central Bureau, INTERPOL Washington, sponsored the meeting. The Colombian National Police Criminal Investigation Directorate and INTERPOL at the "General Francisco de Paula Santander" School of Police Training Academy of the National Police of Colombia served as the hosts for this first ever meeting.
Two Sentenced in Marijuana Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Shahana Beaver, 25, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute marijuana, was sentenced to time served and three years’ supervised release by U.S. District Judge Elizabeth A. Wolford. In addition, co-defendant Janice Humphrey, 28, also of Buffalo, N.Y., who was convicted of maintaining a drug-involved premises, was sentenced to two years’ probation.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between April 2015, and September 2015, the defendants conspired with Damarcus Hennings, Shaquata Hennings, Arthur Clark, and Dashawn Abrams, to ship, receive, and distribute more than 50 packages containing marijuana from Denver, Colorado to Buffalo, New York. The defendants also conspired to send the cash proceeds from resulting marijuana sales back to their marijuana source of supply in Denver.
Damarcus Hennings and Shaquata Hennings have been convicted and are awaiting sentencing. Charges are pending against Dashawn Abrams and Arthur Clark. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencings are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.Two Men Indicted in Medicare Fraud Scheme in Rio Grande ValleyRead the Press Release
McALLEN, Texas ‐ A former laboratory technician at a medical clinic in Mission and an account representative for a toxicology testing company have been indicted in connection with a scheme to defraud Medicare, announced Acting U.S. Attorney Abe Martinez.
Ivar Cantu, 46, of Palmview, was arrested today and is set to make his initial appearance before U.S. Magistrate Judge Peter Ormsby at 10:30am. Co-defendant Omar Solis, 35, of Mission, was taken into custody yesterday.
The 18-count indictment charges Cantu and Solis with conspiracy to commit health care fraud, health care fraud and aggravated identity theft.
According to the indictment, Cantu and Solis fraudulently set up an account between the medical clinic where Solis was employed as a laboratory technician and the toxicology testing company for whom Cantu was an account representative. During the latter half of 2015, Solis allegedly misappropriated urine specimens of patients of the medical clinic and sent them to the toxicology testing company without the consent of the patient or doctor in order to receive commissions and collection fees from the testing company. Cantu and Solis forged patient signatures, falsified medical records and created fictitious documents in carrying out the scheme, according to the indictment.
As a result of the conspiracy, Medicare was billed $836,788 between May 2015 and December 2015.
The charge for conspiracy to commit health care fraud and each of the eight counts of health care fraud carry a maximum punishment of 10 years in federal prison and a possible $250,000 maximum fine, upon conviction. Each of the nine counts of aggravated identity theft carries a mandatory two‐year additional prison term which must be served consecutively to any other prison sentence imposed.
The FBI and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Two California Men Sentenced to Prison for Their Roles in Fake Law Firms that Promised to Help Struggling HomeownersRead the Press Release
Two Orange County, California men were sentenced yesterday in U.S. District Court in Santa Ana, California to serve 41 and 47 months in prison, respectively, for their roles in a multi-million dollar fraudulent mortgage modification scheme posing as a successful law firm, the Justice Department announced.
Ronald Rodis, 52, of Long Beach, California, and Charles Wayne Farris, 56, of Aliso Viejo, California, each previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. In addition to the terms of prison imposed by U.S. District Judge David O. Carter, Judge Carter ordered Farris to pay $3,534,927.43 in restitution and ordered Rodis to pay $3,826,947.95 in restitution.
Both defendants previously admitted that, between October 2008 and June 2009, they participated in a scheme to induce homeowners to pay between $3,500 and $5,500 for the services of the Rodis Law Group. These defendants and their co-conspirators made numerous misrepresentations regarding RLG’s ability to negotiate loan modifications from the homeowners’ mortgage lenders. They hid the involvement of Bryan D’Antonio, the true owner of the scheme. D’Antonio was a convicted felon and subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide.
“These defendants played key roles in a scheme that victimized homeowners facing foreclosure during the mortgage crisis,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The defendants promised homeowners assistance saving their homes and modifying their mortgages, yet took their money knowing the promised benefits would never be realized.”
“These two defendants used their legal knowledge and expertise to coerce and victimize vulnerable homeowners,” said Acting U.S. Attorney Sandra R. Brown of the Central District of California. “Rather than help these individuals as promised, their fraudulent scheme cost the victims millions of dollars.”
Rodis was a licensed California attorney who allowed his name to be used to lend legitimacy to the scheme. He recorded radio advertisements encouraging struggling homeowners to call RLG. In the ads, Rodis falsely claimed that RLG consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG was a telemarketing operation that never had a team of experienced attorneys and rarely achieved any of the promised results for homeowners. During much of the scheme, Rodis was the only attorney at RLG. After his involvement with the RLG scheme, Rodis surrendered his law license.
supervised a sales force of dozens of telemarketers who fielded calls from struggling homeowners. At Farris’s direction and using scripts that he helped create, the telemarketers made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and America’s Law Group – a successor to RLG – had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case.
On April 10, Bryan D’Antonio, the leader of the scheme, was sentenced to 97 months in prison followed by 12 months in a halfway house and was ordered to pay $3,826,977.95 in restitution.
This case was investigated by the FBI Los Angeles Field Office and is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph T. McNally of the Central District of California.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Two California Men Sentenced to Prison for Their Roles in Fake Law Firms That Promised to Help Struggling HomeownersRead the Press Release
LOS ANGELES – Two Orange County, California men were sentenced yesterday in U.S. District Court in Santa Ana, California to serve 41 and 47 months in prison, respectively, for their roles in a multi-million dollar fraudulent mortgage modification scheme posing as a successful law firm, the Justice Department announced.
Ronald Rodis, 52, of Long Beach, California, and Charles Wayne Farris, 56, of Aliso Viejo, California, each previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. In addition to the terms of prison imposed by U.S. District Judge David O. Carter, Judge Carter ordered Farris to pay $3,534,927.43 in restitution and ordered Rodis to pay $3,826,947.95 in restitution.
Both defendants previously admitted that, between October 2008 and June 2009, they participated in a scheme to induce homeowners to pay between $3,500 and $5,500 for the services of the Rodis Law Group. These defendants and their co-conspirators made numerous misrepresentations regarding RLG’s ability to negotiate loan modifications from the homeowners’ mortgage lenders. They hid the involvement of Bryan D’Antonio, the true owner of the scheme. D’Antonio was a convicted felon and subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide.
“These defendants played key roles in a scheme that victimized homeowners facing foreclosure during the mortgage crisis,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The defendants promised homeowners assistance saving their homes and modifying their mortgages, yet took their money knowing the promised benefits would never be realized.”
“These two defendants used their legal knowledge and expertise to coerce and victimize vulnerable homeowners,” said Acting U.S. Attorney Sandra R. Brown of the Central District of California. “Rather than help these individuals as promised, their fraudulent scheme cost the victims millions of dollars.”
Rodis was a licensed California attorney who allowed his name to be used to lend legitimacy to the scheme. He recorded radio advertisements encouraging struggling homeowners to call RLG. In the ads, Rodis falsely claimed that RLG consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG was a telemarketing operation that never had a team of experienced attorneys and rarely achieved any of the promised results for homeowners. During much of the scheme, Rodis was the only attorney at RLG. After his involvement with the RLG scheme, Rodis surrendered his law license.
Farris supervised a sales force of dozens of telemarketers who fielded calls from struggling homeowners. At Farris’s direction and using scripts that he helped create, the telemarketers made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and America’s Law Group – a successor to RLG – had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case.
On April 10, Bryan D’Antonio, the leader of the scheme, was sentenced to 97 months in prison followed by 12 months in a halfway house and was ordered to pay $3,826,977.95 in restitution.
This case was investigated by the FBI Los Angeles Field Office and prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph T. McNally of the Central District of California.
Three Louisiana Residents Indicted for Insider Trading in Connection with Shaw Group AcquisitionRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that three more individuals have been charged with insider trading in connection with the acquisition of the Shaw Group. A federal grand jury sitting in the Middle District of Louisiana has indicted KELLY LIU, age 31, SALVADOR RUSSO, III, age 34, both of Baton Rouge, Louisiana, and VICTORY HO, age 38, of Morgan City, Louisiana, with conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. If convicted, each face significant incarceration, fines, restitution, and supervised release following imprisonment.
The Indictment alleges that from on or before July 18, 2012, and continuing to at least July 30, 2012, LIU and her boyfriend RUSSO, along with associate HO, engaged in a scheme to profit from inside information about the upcoming merger between The Shaw Group (“Shaw”) and Chicago Bridge and Iron Company (“CB&I”).
According to the allegations contained in the Indictment, which was returned by the grand jury earlier today, in mid-2012, Shaw was considering a potential merger opportunity. At the time, LIU was a Shaw employee working in the Financial Planning and Analysis Department. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose substantially.
The Indictment alleges that, prior to the public announcement and through her job at Shaw, LIU obtained inside information that Shaw was being acquired by another company and passed the inside information to HO, through another individual, and to RUSSO, for their use in trading Shaw securities. Thereafter, HO and RUSSO allegedly purchased Shaw securities before the public announcement. HO sold his Shaw securities after the public announcement had caused Shaw’s stock price to rise, while RUSSO held his Shaw securities, all at the expense of Shaw shareholders and potential Shaw shareholders who were not privy to the inside information. The Indictment also alleges that HO made over $294,000, and RUSSO over $2,500 in unrealized profits, from their illegal insider trading activities.
Prior to the Indictment announced today, three other individuals have been charged in the Middle and Western Districts of Louisiana with securities fraud offenses related to the Shaw merger. One defendant has pled guilty, and the remaining two are scheduled for trial.
Acting U.S. Attorney Amundson stated: “Insider trading undermines investor confidence in the fairness and integrity of the securities markets, and cheats those honest investors who play by the rules. My office will continue to work aggressively with our excellent partners with the FBI, IRS-Criminal Investigations, the U.S. Secret Service, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, and others to pursue such important matters whenever merited.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel, Patricia Jones, and Adam Ptashkin.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
St. Albans man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A St. Albans man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Jeremiah Joe Johnson, 40, entered his guilty plea to possession with intent to distribute 50 grams or more of methamphetamine.
Johnson admitted that on April 30, 2017, he traveled to Charleston from Atlanta with approximately 1.3 kilograms of methamphetamine. Agents with the Metropolitan Drug Enforcement Network Team were monitoring Johnson’s travels using a GPS tracker and surveillance. Johnson also admitted that he stopped at the Bigley Avenue Go-Mart in Charleston, where an officer saw a passenger with Johnson attempt to hide a meth pipe from view. A drug dog on the scene gave a positive indication of the presence of narcotics, and a subsequent search of the vehicle uncovered the methamphetamine in a bag in the back seat. Johnson additionally admitted that he had obtained the drugs from a source in Georgia, and that he intended to distribute the drugs. Johnson further admitted to several other encounters with law enforcement while he was in possession of dealer amounts of methamphetamine.
Johnson faces at least five and up to 40 years in federal prison when he is sentenced on October 5, 2017.
The Metropolitan Drug Enforcement Network Team, the West Virginia State Police, and the Drug Enforcement Administration conducted the investigation. Assistant United States Attorney R. Gregory McVey is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Sherwood Man Arrested on Child Pornography Charges Stemming from Online Participation in Sexual Exploitation of ChildrenRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Homeland Security Investigations Special Agent in Charge Raymond R. Parmer, Jr., announced today the arrest of William Thomas Murry, III, 60, of Sherwood, on multiple charges of possession and receipt of child pornography.
A federal grand jury indicted Murry on July 6, 2017, on one count of possession of child pornography and four counts of receipt of child pornography. In late 2015 and early 2016, HSI agents learned that an individual was participating in an online chatroom that was involved in the sharing of live child rapes and recorded child pornographic videos and pictures through webcam streaming. While this individual’s face was never visible, his bare torso and genitals were visible, as well as the background of what appeared to be an office with several distinguishing features.
Agents were able to determine that the IP address being utilized by the individual in the chatroom returned to the Kawasaki Sports Center at 5922 South University Ave., Little Rock. At the time, Murry owned the Kawasaki Sports Center.
On November 22, 2016, HSI/LR, Little Rock Police Department, and Arkansas Attorney General’s Office, Special Investigations Division (AG/SID), executed a federal search warrant at the Kawasaki Sports Center.
Agents observed Murry’s office and determined it was the location where the individual was engaged in viewing child pornography in the online chatrooms. Murry also physically resembled the individual in the chatroom. After waiving his Miranda rights, agents interviewed Murry, who admitted to using the online network, but denied looking at child pornography.A forensic exam was conducted on Murry’s work computer and his home laptop.
Murry’s work computer contained 65 still images and two video files containing child pornography. The computer also contained evidence of the online network. Murry’s home laptop contained 33 still images and four video files of child pornography. It also contained evidence of the online network.
Agents interviewed all the other employees of Kawasaki and eliminated them as the individual in the online chatroom.
“Too often people like Murry think they can hide behind a computer and receive gratification from watching children being sexually exploited,” said Harris. “This indictment sends the message that this depravity will not be tolerated.”
Possession of child pornography carries a maximum statutory penalty of 10 years’ imprisonment, a $250,000 fine, and five years to life of supervised release. Receipt of child pornography carries a statutory penalty of five to 20 years’ imprisonment, a $250,000 fine, and five years to life of supervised release.
“No one is above the law when it comes to child exploitation,” Parmer, Jr. said. “HSI will continue working with our partner law enforcement agencies to ensure we find and arrest anyone involved in these heinous transnational crimes.”
Today, Murry turned himself into Homeland Security agents and was seen by United States Magistrate Judge Jerome T. Kearney. Judge Kearney released Murry on conditions to include electronic monitoring, no unsupervised contact with minors, and monitored internet access.
The investigation was conducted by Homeland Security Investigations and the Arkansas Attorney General’s Office, Special Investigations Division. The case is being prosecuted by Assistant United States Attorney Kristin Bryant.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
San Juan County Man Pleads Guilty to Federal Wire Fraud Charges Arising Out of Million Dollar Fraud SchemeRead the Press Release
ALBUQUERQUE – Bobby Willis, 45, a resident of Kirtland, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to wire fraud charges under a plea agreement recommending a maximum sentence of 24 months in federal prison. The plea agreement also requires Willis to pay restitution to the victims of his fraudulent conduct.
Willis was charged in a two-count indictment, which was filed on Oct. 20, 2015, alleging that, from March 2010 through Aug. 2011, Willis executed an illegal scheme to defraud two victims out of $1,000,000. According to the indictment, Willis offered the victims an opportunity to purchase a five-percent interest in a real estate investment company for $1,000,000 with the understanding that he and other individuals had also invested millions of dollars in the company. Willis then spent $995,000 of the victims’ $1,000,000 instead of investing the funds.
Count 1 of the indictment alleges that on Oct. 25, 2010, Willis caused $900,000 to be wire transferred from the bank account of the real estate investment company to his and his wife’s bank account. Count 2 alleges that on Nov. 12, 2010, Willis caused another $95,000.00 to be wire transferred from the real estate investment company’s bank account to his and his wife’s bank account.
During today’s proceedings, Willis pled guilty to the two-count indictment. In entering the guilty plea, Willis admitted meeting the victims in 2010 and devising a plan to cause the victims to give him $1,000,000 to invest in a real estate LLC created by Willis. Willis further admitted directing the victims to work with his associates to invest the money in a real estate company. That same real estate company transferred $995,000 into an account held by Willis and his wife on Oct. 25, 2010 and Nov. 18, 2010.
In his plea agreement, Willis admitted that he and his wife spent the victims’ money. Willis also admitted that he did not invest the victims’ money in any real estate, and when the victims inquired about the status of their investment, he had associates falsely assure the victims that their investment had grown in value. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney C. Paige Messec.
Revere Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
BOSTON – A Revere man pleaded guilty today in federal court in Boston to robbing 10 banks during a 19-day spree from late December 2016 to early January 2017.
Fred Mandracchia, 36, pleaded guilty to 10 counts of bank robbery. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Oct. 11, 2017.
Following a Jan. 3, 2017 robbery of the Mechanics Cooperative Bank branch in Fall River, law enforcement identified Mandracchia as the individual responsible for that robbery. Based on similarities in the robberies and the physical description of the perpetrator, Mandracchia was suspected to have also been involved in nine other Boston-area bank robberies: the Dec. 19, 2016, robbery of a People’s United Bank branch in Boston; the Dec. 21, 2016, robbery of a Century Bank branch in Boston; the Dec. 22, 2016, robbery of a Citizens Bank branch in Boston; the Dec. 23, 2016, robbery of an East Boston Savings Bank branch in East Boston; the Dec. 23, 2016, robbery of a Commerce Bank branch in Boston; the Dec. 24, 2016, robbery of a Citizens Bank branch in Boston; the Dec. 27, 2016, robbery of a Brookline Bank branch in Malden; the Jan. 4, 2017, robbery of an East Boston Savings Bank branch in South Boston; and the Jan. 6, 2017, robbery of a Meetinghouse Bank branch in Dorchester. Mandracchia was arrested in Chelsea on Jan. 7, 2017, and confessed to robbing the banks.
The charge of bank robbery provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $250,000 on each count. 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 Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Police Departments of Fall River, Boston, Malden, and Chelsea assisted with the investigation. Assistant U.S. Attorney Kelly Begg Lawrence of Weinreb’s Major Crimes Unit is prosecuting the case.
Quincy Man Sentenced for Four Bank RobberiesRead the Press Release
BOSTON – A Quincy man was sentenced today in federal court in Boston for robbing multiple banks throughout the Boston area.
Kyle P. Nathan, 28, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 42 months in prison and three years of supervised release. In March 2017, Nathan pleaded guilty to four counts of bank robbery.
In February and March 2016, an individual robbed the East Boston Savings Bank in both South Boston and Dorchester, a branch of the Santander bank in Chelmsford, and a branch of the Citizens Bank, also in Chelmsford. Due to similarities in the robberies and the physical description of the perpetrator, law enforcement suspected that the same individual was involved in each of the robberies. After the fourth robbery, Nathan was arrested wearing the same clothes the suspect was identified as wearing during all four robberies.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Chelmsford Police Chief James Spinney made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.