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Wednesday 17 May 2017
Justice Department Obtains $37,000 Verdict in Disability Discrimination Case Against Montana LandlordRead the Press Release
A federal jury in Butte, Montana today returned a $37,343 verdict against a Bozeman, Montana landlord for charging a tenant with physical and psychiatric disabilities $1,000 to have a service animal, the Justice Department announced today.
The lawsuit, filed in U.S. District Court in Butte, alleged that Jaclyn Katz, the owner and manager of rental properties in Bozeman, discriminated against Kristen Newman, a tenant with physical and psychiatric disabilities, by charging her a $1,000 deposit as a condition for allowing her to keep her service dog, Riley. At trial, Newman, her treating therapist and an independent expert testified that Riley assisted Newman in living with the symptoms of her disabilities, including providing emotional support, helping to predict migraines, and reducing suicidal thoughts. Newman also testified that she repeatedly informed Katz that charging a deposit for a service animal was illegal and that Newman understood that she would have to pay for any actual damage caused by her service dog. Nevertheless, Katz continued to levy this charge and, at one point, even threatened to terminate Newman’s tenancy. The case arose out of a complaint filed by Newman with the U.S. Department of Housing and Urban Development.
The verdict includes $11,043 in compensatory damages for Newman, $20,000 in punitive damages for Newman, and $6,300 for Montana Fair Housing, Inc., which assisted Newman with her fair housing complaint.
“Persons with disabilities have the right to live in and enjoy their communities, just as all families do throughout our nation,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We commend the jury for recognizing that the Fair Housing Act prohibits landlords from discriminating against persons with disabilities, and we will continue to work to eliminate discriminatory barriers in housing for persons with disabilities.”
“Many people with disabilities require the assistance of an animal to carry out major daily activities,” said General Deputy Assistant Secretary Bryan Greene of the U.S. Department of Housing and Urban Development’s Fair Housing and Equal Opportunity. “Complaints alleging disability discrimination now account for the majority of the complaints HUD receives. HUD will continue to enforce the law and educate the public on the rights of people with disabilities in housing.”
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination may contact the Justice Department at 1-800-896-7743, or by e-mail at [email protected].
Jury Convicts North Las Vegas Felon for Illegal Possession of A FirearmRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas man was found guilty by a jury on Tuesday for a federal firearms violation, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Tajh Dion Weatherspoon, 27, was found guilty of one count of felon in possession of a firearm and shortly thereafter pleaded guilty to a second count of felon in possession of a firearm. Weatherspoon had two prior felony convictions, including attempted burglary and felon in possession of a firearm.
According to the superseding indictment, Weatherspoon was in possession of a Glock 19 handgun on June 15, 2016, and a Glock 21 handgun on Dec. 22, 2016. The Court severed the two counts and ordered that the trials proceed one after the other, beginning May 15, 2017. After the jury convicted Weatherspoon of possessing the Glock 19 handgun, he declined to proceed to trial on the count charging possession of the Glock 21 handgun and instead pleaded guilty without the benefit of a plea agreement.
United States District Judge Howard D. McKibben presided over the jury trial and scheduled sentencing for Sept. 19, 2017. At the time of sentencing, Weatherspoon faces a statutory maximum penalty of 20 years in prison.
The case was investigated by the FBI, ATF, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. The case was prosecuted by Assistant U.S. Attorneys Tony Lopez and Patrick Burns.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Johnston Man Pleads Guilty to Trafficking Heroin, Possessing a Pill PressRead the Press Release
PROVIDENCE – Jack A. Hoogasian, 44, of Johnston, RI, pleaded guilty in federal court in Providence on Tuesday to possession with the intent to distribute heroin and possession of a pill press. A pill press is used to produce counterfeit narcotics, in this case, oxycodone.
Hoogasian’s guilty plea before U.S. District Court Chief Judge William E. Smith is announced by Acting U.S. Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to Rhode Island state court documents, in May 2016, the Rhode Island State Police Intelligence Unit developed information that Jack Hoogasian was trafficking counterfeit narcotics pills he produced with a pill press from his residence. On at least two occasions, the State Police Intelligence Unit arranged for the purchase of narcotics pills from Hoogasian. Each transaction consisted of the purchase of multiple blue pills stamped A 215. Blue pills stamped A 215 are how the prescription drug oxycodone hydrochloride (30 mg.) is labeled for sale.
According to court documents, field tests conducted by Rhode Island State Police of the first batch of pills purchased from Hoogasian tested positive for the presence of amphetamine. Subsequent testing by a U.S. Food and Drug Administration Office of Criminal Investigations forensic specialist determined that the pills were counterfeit. Testing of the second batch of pills tested positive for the presence of heroin and amphetamine.
According to information presented to the court at the time of Hoogasian’s guilty plea in federal court, on May 17, 2016, Rhode Island State Police executed a court-authorized search of Hoogasian’s residence. In the basement of Hoogasian’s residence, 22 blue pills stamped A 215, three large bags of powder, and a pill press machine were seized. Forty-nine blue pills stamped A 215 were seized from a garage.
Hoogasian is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on August 11, 2017. Possession with the intent to distribute heroin is punishable by statutory penalties of up to 20 years in federal prison, a fine of up to $1,000,000 and a term of supervised release of 3 years to life. Possession of a pill press is punishable by statutory penalties of up to 1 year in federal prison, a fine of up to $1,000, and a term of supervised release of up to 1 year.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose, with the assistance of Assistant U.S. Attorney Lee H. Vilker.
Acting United States Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police, thank the U.S. Food and Drug Administration Office of Criminal Investigations for their assistance in the investigation of this matter.
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Jackson Man Sentenced to 300 Months in Prison for Sex with MinorRead the Press Release
COLUMBUS, Ohio – Dennis K. Rawlins, 68, of Jackson, Ohio, was sentenced in U.S. District Court to 300 months in prison and a lifetime of supervised release for sexually exploiting a minor.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Franklin County Prosecutor Ron O’Brien, Reynoldsburg Police Chief Jim O’Neill, Westerville Police Chief Joseph Morbitzer and other members of the FBI’s Child Exploitation Task Force, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, Rawlins was found in a motel room with a 15-year-old boy in January 2016. A search of digital media in the room revealed child pornography, messages between Rawlins and a co-defendant, Mark R. Heyd, and numerous photos of the boy victim in various stages of nudity. Rawlins admitted to taking the nude photos of the boy while in the hotel room and to engaging in sex acts with the boy while Heyd watched on webcam.
Rawlins pleaded guilty on August 24, 2016 to one count of sexual exploitation of a minor, specifically, using a minor to engage in sexually explicit conduct for the purpose of producing child pornography. He was also sentenced to a lifetime of supervised release.
Heyd, 61, of Kailua, Hawaii, was sentenced on March 7 to 270 months in prison for one count of conspiracy to produce child pornography. His case was unsealed today.
Heyd arranged for Rawlins and the victim to rent hotel rooms where Rawlins would engage in sex acts with the boy and Heyd would watch via web cam.
Both defendants faced enhanced sentences because of prior convictions related to the molestation of minor boys.
U.S. Attorney Glassman commended the cooperative investigation by the FBI Child Exploitation Task Force, as well as Assistant United States Attorney Heather A. Hill and Special Assistant U.S. Attorney Jennifer M. Rausch, Director of the Franklin County Special Victims Unit, who are representing the United States in this case.
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Hazardous Waste Company , Owner, and Employees Indicted for Illegally Abandoning Hazardous Waste in TrailersRead the Press Release
CHARLOTTE, N.C. – A hazardous waste company, its owner, and two employees were indicted today for illegally abandoning more than 10,000 gallons of liquid hazardous waste and more than five tons of solid hazardous waste in trailers on the company’s property in Charlotte, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Special Agent in Charge Andy Castro, of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (NC SBI).
The criminal bill of indictment was returned by a the grand jury on May 17, 2017, charging Parts Cleaning Technology of North Carolina (“PCT”), its owner, David Russ Crandell, of 36, of Novi, Michigan, and two employees, Timothy Michael Connelly, 54, of Concord, N.C. and Vincent Edward Peters, Sr., 51, of York, S.C., with one count of conspiracy to illegally store hazardous waste, one count of illegal storage of hazardous waste without a permit, and one count of illegal storage of hazardous waste in violation of a permit. Connelly and Peters are also each charged with making false official statements to regulators.
According to allegations contained in the indictment, PCT, was a business engaged in the collection and transportation of hazardous waste in Charlotte, N.C. From at least as early as in or about 2011, the defendants allegedly stored hazardous waste on unpermitted trailers on PCT’s property at 3114 and 3124 Cullman Avenue, in Charlotte. The indictment alleges that the defendants had ongoing difficulty paying the disposal companies, which were refusing to accept hazardous waste from PCT. As alleged in the indictment, on July 7, 2014, PCT was evicted from the Cullman Avenue facilities, the defendants did not remove the hazardous waste and did not notify anyone that the waste had to be removed.
The indictment also alleges that on August 19, 2015, North Carolina State regulators executed a search warrant and located hazardous waste for which 43 customers had paid PCT for disposal. The indictment further alleges that regulators also located hazardous waste in the building located at 3124 Cullman Avenue, which was not permitted to store any hazardous waste. It is also alleged that over the course of the criminal conduct, defendants Connelly and Peters made false official statements to regulators about the contents of the trailers.
In 1976, in response to a growing number of hazardous waste sites resulting from unregulated waste disposal activities, Congress enacted the Resource Conservation and Recovery Act (RCRA). RCRA established a strictly-regulated “cradle-to-grave” regulatory program, which governs and tracks hazardous waste from the point of generation until its final disposition.
The object of RCRA includes, among other things, protection of human health and the environment through stringent regulation of the generation, transportation, storage, treatment and disposal of hazardous waste.
The conspiracy charge carries a maximum sentence of five years of imprisonment and a fine of $250,000. The RCRA violations carry a maximum sentence of five years of imprisonment and a fine of $50,000 per day of violation. The false official statements charges carry a maximum sentence of five years of imprisonment and a fine of $250,000.
The details contained in this indictment are allegations. The Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Rose thanked the EPA-CID and NC SBI for leading the investigation. Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Harrison County Woman Sentenced to Prison for Sex Trafficking MinorsRead the Press Release
COUNCIL BLUFFS, IA - On May 17, 2017, Trudy E. Thomsenheather Jean Reekr, a 32 year-old resident of Missouri Valley, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 190 months in prison for transporting a minor with intent to engage in sexual activity, announced United States Attorney for the Southern District of Iowa, Kevin E. VanderSchel. Thomsen will be required to serve 10 years of supervised release following her imprisonment. Thomsen pleaded guilty to the charge on September 1, 2016.
The guilty plea and sentencing resulted from an investigation into the transport of minor females from Arkansas to Missouri Valley, Iowa, to engage the minors in sexual acts. According to the plea agreement, Thomsen met a 14-year-old female while working at a group home in Arkansas. After leaving her group home job, Thomsen and her co-defendant, John Thomsen, used social media to keep in contact with a minor female and convince her, and another female minor, to come live with them in Missouri Valley, Iowa. The Thomsens traveled to Arkansas and drove the females to Missouri Valley, Iowa, where the Thomsens engaged in various sexual acts with one of the girls.
Co-defendant John Thomsen was sentenced to 235 months in prison on January 25, 2017.
The Federal Bureau of Investigation Child Exploitation Task Force, Arkansas State Police, Missouri Valley Police Department, Council Bluffs Police Department, Omaha Police Department, La Vista Police Department, and the Harrison County Attorney’s Office conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Gardner Man Charged with Conspiracy to Traffic Counterfeit SteroidsRead the Press Release
BOSTON – A Gardner, Mass., man was charged today in federal court in Boston for his role in a conspiracy to traffic counterfeit steroids.
Robert Medeiros, 32, was charged for his role in a conspiracy to traffic counterfeit steroids marketed on social media to bodybuilders and sold around the country to customers.
According to court documents, from approximately March 2016 until April 12, 2017, Medeiros participated in an organization whose purpose was to manufacture steroid products, market them under the Onyx brand, and sell them to customers across the United States using email and social media platforms. Medeiros’ principal role in the conspiracy was to fulfill orders for anabolic steroids by obtaining the finished steroid products, branded with Onyx labeling and packaging, from other members of the conspiracy, prepare the steroids for shipment, and ship the steroids via the U.S. Postal Service to customers across the United States. Customers paid for the steroids through financial institutions like Western Union and MoneyGram. Members of the conspiracy used false identifications and multiple financial locations to pick up the proceeds. They purchased counterfeit Onyx labeling and packaging from overseas suppliers, as well as the raw materials to manufacture the steroids, either by using money remitters or by shipping U.S. currency to foreign suppliers. They allegedly manufactured the steroids in the residential home(s) of one or more members of the conspiracy.
The charging statute provides for a sentence of no greater than five years in prison, three years 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; 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 Jeffreys Ebersole, Special Agent in Charge of the Food and Drug Administration made the announcement today. Assistance was provided by the Drug Enforcement Administration, New England Field Division; Massachusetts State Police; Boston Police Department, Massachusetts Bay Transportation Authority Police Department; Customs and Border Protection; and Lynn, Shrewsbury, Gloucester, Saugus, and Gardner Police Departments. 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 Thompson Woman Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, woman convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on May 15, 2017, by U.S. District Judge Roberto A. Lange.
Megan Azure, age 31, was sentenced to 4 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Azure was indicted by a federal grand jury on October 12, 2016. She pled guilty on February 27, 2017.
The conviction stems from an incident on March 21, 2015, when Azure, who was in the Lower Brule jail on tribal charges, was being non-compliant. A correctional officer with the Bureau of Indian Affairs was asked by another correctional officer to assist with Azure. The officers directed Azure to go back into the booking area for her housing assignment. Azure refused to go and began to argue with the officers. The correctional officer advised Azure to calm down and then took a small step back, at which time Azure said some profanity to the correctional officer and then tilted her head back and brought it forward with force striking the correctional officer in the face with her head. The correctional officer’s glasses went flying. As a result of the assault, the correctional officer suffered a swollen cheek, black eye and headaches and dizziness for a few days.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Azure was immediately turned over to the custody of the U.S. Marshals Service.
Former Shelby County Man Sentenced to Prison for Illegally Accessing Women’s Computers for Personal Data and Explicit PhotographsRead the Press Release
BIRMINGHAM – A former Shelby County resident will spend six months in federal prison for illegally accessing email and cloud storage accounts of more than 50 women to obtain personal data, including explicit photographs, announced acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Court Judge Abdul K. Kallon today sentenced KEVIN M. MALDONADO, 35, now living in North Carolina, on one count of intentionally accessing the Gmail account of K.M., and the documents and images therein, without her permission in order to invade her privacy. Maldonado pleaded guilty to the charge in February. Judge Kallon ordered him to serve three years of supervised release following his prison sentence. Maldonado must report to prison July 17.
Maldonado “repeatedly and indiscriminately gained access to multiple women’s computers for a period of at least two years using a number of methods, in essence, to stalk them,” according to the government’s sentencing memorandum.
“[T]he defendant spent countless hours creating numerous fictitious email accounts impersonating email administrators from multiple email providers; sending numerous emails from these accounts demanding login and password information; and then frequently checking the fictitious email accounts for response emails from victims,” the memorandum said.
“The defendant also spent untold hours trolling the accounts he accessed via phishing for additional password information and conducting extensive open source research, for example on websites such as spokeo.com, on potential victims and making note of information about them including birthdates, places of employment, collegiate affiliations, etc. He then used this information to try to guess victims’ passwords, or answer the security questions necessary to re-set them,” the memorandum said.
Once the defendant accessed the victims’ accounts, he downloaded their data, including personal identifying information and personal photographs and videos, including images of them nude, partially nude, or engaged in sexual activity.
Maldonado knew some, but not all of the women he victimized and seemed motivated by more than a desire to see pornographic images, according to the government’s memorandum. His actions “appear to be based on an intentional need to violate others privacy – as many others as he could,” it says.
Much of the information Maldonado obtained illegally he catalogued by victim or group and saved to an external computer hard drive for easy access.
“In this age of digital living, passwords and security questions serve the same function as the lock on the front door once did,” the memorandum said. “Computer intrusions are the new ‘break ins’ and must be punished as such. Actions like the defendant’s compromise emails systems, decrease trust in technology, increase the security burdens imposed on everyone, and make it more difficult for people to access their accounts and their information, and quite simply live their lives.”
The FBI investigated the case, which Assistant U.S. Attorney Erica Barnes is prosecuting.
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Former Orleans Parish Bail Bondswoman Sentenced for ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TYNEKIA BUCKLEY, age 44, of New Orleans, was sentenced today after previously pleading guilty to a one-count Bill of Information charging her with conspiracy to commit honest services mail fraud.
U.S. District Judge Marlin L.C. Feldman sentenced BUCKLEY to four years of probation, with the first six months to be served on home detention.
According to court documents, BUCKLEY worked as a licensed bail bondswoman in New Orleans from 2004 through 2012, at 538 S. Broad Street in New Orleans. In that capacity, BUCKLEY was employed by RUFUS JOHNSON, who operated as a bail bondsman without having the required license. As such, JOHSON could not legally run a bail bonds business. During the course of her employment, BUCKLEY gave cash and things of value to employees of the Clerk’s Office in exchange for employees permitting JOHNSON to use BUCKLEY’S name and bonding license and to sign BUCKLEY’S name on official court documents.
According to additional court documents, BUCKLEY also conspired with JOHNSON to give cash and things of value to a former assistant bond clerk and a former part-time employee of the Orleans Parish Criminal Sheriff’s Office, in exchange for that person’s illegal and unauthorized release of criminal defendants from the Orleans Parish Prison.
JOHNSON pled guilty to conspiracy to commit mail fraud, honest services mail fraud and honest services wire fraud; conspiracy to use interstate transportation in aid of a racketeering enterprise; conspiracy to commit unauthorized access to a protected computer; conspiracy to obstruct justice; and, making material false statements in a matter within the jurisdiction of a department or agency of the United States. U.S. District Judge Ivan L.R. Lemelle set JOHNSON’s sentencing on July 19, 2017.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, with the assistance of the Metropolitan Crime Commission, the New Orleans Police Department, and the Orleans Parish District Attorney’s Office. Assistant U.S. Attorneys Jordan Ginsberg, Harry W. McSherry, and Brittany Reed were in charge of the prosecution.
Former NC Superior Court Judge Arnold O. Jones, II Sentenced for Felony Payment of Gratuity to a Public Official ChargeRead the Press Release
ELIZABETH CITY – United States Attorney John Stuart Bruce announced that today in federal court before United States District Judge Terrence W. Boyle, former North Carolina Superior Court Judge ARNOLD OGDEN JONES, II was sentenced to 2 years’ probation, fined $5,000.00, and ordered to perform 100 hours of community service. On March 16, 2017 JONES pled guilty to Promising and Paying Gratuities to a Public Official.
During the hearing on the defendant’s guilty plea, the Government summarized the evidence supporting the defendant’s guilty plea. The evidence established that between October 10, 2015 and November 3, 2015 JONES gave, offered, and promised cases of beer and $100 to a Federal Bureau of Investigation Task Force Officer in contemplation of the Task Force Officer’s act of compelling Verizon to produce JONES’s wife’s text messages in order to disclose those messages to JONES, even though JONES was not permitted to receive them by law.
The evidence showed that, as a judge, JONES was familiar with the processes and procedures law enforcement must undertake to obtain private text message content, including the need for the FBI to have an ongoing investigation and a legitimate law enforcement need for such text content. The evidence established that JONES desired the text messages for use in a personal domestic dispute. Multiple recorded conversations established JONES’s desire to conceal the FBI Task Force Officer’s involvement in obtaining the texts. JONES agreed to destroy evidence of the crime, including a disk that purported to contain the text messages and text messages coordinating the exchange of cash and a disk. The evidence also included a video of JONES exchanging the cash and disk on the steps of the Wayne County Courthouse in his judicial robe. No text messages were obtained or delivered to JONES.
The Federal Bureau of Investigation conducted the investigation of this case. Assistant United States Attorneys William M. Gilmore and Adam F. Hulbig prosecuted the case on behalf of the government.
Former CEO of Essex Holdings Inc. Sentenced to 15 Years in Prison in Connection with $33 Million Ponzi SchemeRead the Press Release
The former Chief Executive Officer of Essex Holdings, Inc., was sentenced to 15 years in prison by United States District Judge Darrin P. Gayles in Miami, in connection with two separate fraud schemes totaling more than $33 million in fraudulently obtained funds. The first scheme involved nearly 100 investors who purchased $30 million of promissory notes purported secured by interests in iron ore mining in Chile. The second scheme involved unlawfully obtaining $1.2 million in economic development funds as well as valuable industrial property from the State of South Carolina.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Navin Shankar Subramaniam Xavier, a/k/a "Navin Xavier," a/k/a "Dr. Navin Xavier" (Xavier), 44, of Miramar, was convicted by guilty plea on January 13, 2017 of two counts of wire fraud, in violation of Title 18, United States Code, Section 1343. One wire fraud count pertained to the investment fraud scheme and the other count pertained to the South Carolina economic development scheme. A restitution hearing is scheduled for July 14, 2017 before Judge Gayles.
According to documents filed in court, from September 2010 through May 2014, Xavier operated Essex Holdings, Inc. (“Essex Holdings”) from an office in Miami Gardens, and raised more than $30 million from nearly 100 investors for supposed investments in sugar transportation and shipping, as well as iron ore mining in Chile. Xavier used a false financial statement, forged documents, and false promises of fixed rates of return, to induce investors to invest with Essex Holdings. Most of the money was used for purposes other than what was promised, including to support lavish spending by Xavier and his wife for expensive jewelry, luxury vehicles, wedding expenses, and cosmetic surgery. Eventually, Xavier used new investor money to pay old investors in a Ponzi-like fashion before the scheme collapsed. Evidence filed in court showed that actual investor losses from the scheme exceeded $29 million.
The second scheme involved Xavier using Essex Holdings to obtain $1.2 million in payments and approximately $1.5 million worth of commercial real estate from the South Carolina Coordinating Council for Economic Development (“SCCCED”), a division of the South Carolina state government, that was supposed to be used to develop a dilapidated industrial property into a diaper plant and rice packaging facility. According to documents filed in court, Xavier provided false financial documentation to SCCCED in order to obtain the contract, and later provided fake contractor invoices and fake bank statements in order to get paid under the contract. As with the investment fraud scheme, Xavier spent a significant portion of the development money for his personal living expenses, and wired some of it to the same overseas accounts used in the investment fraud.
Mr. Greenberg commended the investigative efforts of the FBI, the Miami Regional Office of the U.S. Securities and Exchange Commission, and the South Carolina Office of Inspector General, for assisting with this matter. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Alison Lehr.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Couple Sentenced to Federal Prison for Transporting CocaineRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Juan Soliz (24, Pomona Park) and Kayla Soto (23, Pomona Park) for transporting two kilograms of cocaine from Texas to Florida. Soliz was sentenced to five years’ imprisonment and Soto was sentenced to two years and six months in federal prison. Pursuant to their plea agreements, they have agreed to forfeit a Chevrolet Traverse and a Mercedes Benz E350 that were used to transport the cocaine. In addition, they will forfeit $5,335, which are traceable proceeds of the offense. Soliz and Soto pleaded guilty on October 20, 2016.
According to court documents, on June 25, 2016, the couple drove the Mercedes Benz from Palatka, Florida to Waycross, Georgia, where they received instructions from a co-defendant regarding the pickup location for a shipment of cocaine. Soliz and Soto then drove to Houston, Texas, stopped briefly to pick up two kilograms of cocaine, and then immediately started their return trip to Florida.
Troopers from the Florida Highway Patrol, working with DEA, stopped Soliz and Soto as they entered Putnam County on June 28, 2016. The two kilograms of cocaine were located inside a hidden compartment in the trunk of the car.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Frank Talbot.
Firearms Dealer, Store and Employees Indicted for Violations of Federal Firearms LawsRead the Press Release
ATLANTA - Dawn Anderson, a/k/a Prestige, Ashlie Onyedika, Shawn Lewis, and Distincvision, LLC, d/b/a Liquidation Outlet Center, have been arraigned on violations of federal firearms laws. Anderson and Distincvision, LLC, d/b/a Liquidation Outlet Center (“LOC”) have been charged with the failure of a federally licensed firearms dealer to keep proper records. Onyedika, Lewis, and LOC have been charged with selling firearms to a convicted felon.
“Anderson is charged with failing to keep proper records of firearm sales while clerks in her store sold guns to a convicted felon,” said U.S. Attorney John Horn. “Firearms dealers who disregard laws governing the sale of firearms violate their obligation to keep guns out of the hands of felons and present a threat to the safety of the community.”
“ATF’s mission and priority is to deny criminals access to firearms and protect the rights of law abiding citizens. Several employees of the Liquidation Outlet Center violated federal law by selling firearms to a convicted felon. ATF takes this crime very seriously, and the perpetrators will be prosecuted to the full extent of the law,” said Wayne Dixie, Special Agent in Charge Atlanta Field Division.
According to U.S. Attorney Horn, the charges, and other information presented in court: The indictment alleges that on June 30, 2016 and August 4, 2016, LOC clerks Ashlie Onyedika and Shawn Lewis knowingly sold two firearms to a convicted felon while they were working at LOC. On December 2, 2016, Dawn Anderson, the owner of LOC, allegedly sold a pistol to an individual without recording the actual buyer's name, age, and residence, as required by law.
Dawn Anderson, a/k/a Prestige, 50, Ashlie Onyedika, 25, Shawn Lewis, 45, and Distincvision, LLC, d/b/a Liquidation Outlet Center, all of Atlanta, Georgia, were arraigned by U.S. Magistrate Judges Linda T. Walker and Catherine M. Salinas. Anderson, Onyedika, Lewis, and LOC were indicted by a federal grand jury on May 9, 2017.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Katherine M. Hoffer and Jolee Porter are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fifteen Men Indicted on Federal Conspiracy Charges for Distributing DrugsRead the Press Release
St. Louis, MO – Fifteen men (12 from St. Louis and 3 from Arizona) were indicted in St. Louis on charges of conspiring to distribute and possess with the intent to distribute heroin and cocaine base (“crack” cocaine).
Indicted were the following individuals:
Kevin Simmons, 45, St. Louis, MO;
Johnnie King, 39, St. Louis, MO;
Randy Johnson, a/k/a “Big Randy”, 33, St. Louis, MO;
Farid Annoor, a/k/a “Rumble”, a/k/a “Rambo”, 26, St. Louis, MO;
Ricardo Ramos-Estrada, 31, Phoenix, AZ;
Armando Ramos-Estrada, 34, Phoenix, AZ;
Christian Nunez, 20, Phoenix, AZ;
Darryl Black, 26, St. Louis, MO;
Arieawn Richaud Dillon, 22, St. Louis, MO;
Daviyon Thomas, a/k/a “Big Boy”, 27, St. Louis, MO;
Gregory Hampton, a/k/a “Greasy”, 32, St. Louis, MO;
Travis Roberts, 28, St. Louis, MO;
Jerome Thomas, 45, St. Louis, MO;
Troy Parker, 47, St. Louis, MO; and
Jermaine Johnson, 45, St. Louis, MO.
Defendants were indicted by a federal grand jury on April 19, 2017. Simmons, King, Randy Johnson and Annoor were charged with conspiracy to distribute and possess with intent to distribute cocaine base (“crack”). The other defendants were charged in a separate indictment with conspiracy to distribute and possess with intent to distribute heroin.
If convicted of the heroin conspiracy charge, this carries a penalty of 10 years to life. If convicted of the cocaine base (“crack” cocaine) conspiracy charge, this carries a maximum penalty of twenty years in prison and/or fines up to $1,000,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Postal Inspection Service, St. Louis Metropolitan Police Department, St. Louis County Police Department and St. Charles City Police Department.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
indictments_1.pdfFederal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that, a Federal Grand Jury in Columbia, South Carolina, returned Indictments against the following:
Varnville Woman Charged with Embezzlement of Postal Funds. Cherrie Moore, age 40, of Varnville, SC, was charged in a 1-count Indictment with Misappropriation of Funds by a Postal Employee in violation of 18 U.S.C. § 1711. The maximum penalty that Moore could receive is 10 years imprisonment and a $250,000 fine. The case was investigated by agents of the Postal Inspection Service, and it is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
Summerville Woman Charged with Embezzlement of Postal Funds. Brittany Rollison, age 26, of Summerville, SC, was charged in a 1-count Indictment with Misappropriation of Funds by a Postal Employee in violation of 18 U.S.C. § 1711. The maximum penalty that Rollison could receive is 10 years imprisonment and a $250,000 fine. The case was investigated by agents of the Postal Inspection Service, and it is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
Eutawville Woman Charged with Theft of Mail by a Postal Employee. Michelle Craven, age 34, of Eutawville, SC, was charged in a 1-count Indictment with Theft of Mail by a Postal Employee in violation of 18 U.S.C. § 1709. The maximum penalty that Craven could receive is 5 years imprisonment and a $250,000 fine. The case was investigated by agents of the Postal Inspection Service, and it is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
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Elkhart Man Sentenced to 117 Months ImprisonmentRead the Press Release
SOUTH BEND - Acting United States Attorney Clifford D. Johnson announced that Lamont Hawkins, 21, of Elkhart, Indiana was sentenced before District Court Judge Jon E. DeGuilio for bank robbery.
Hawkins was sentenced to 117 months imprisonment and 2 years of supervised release.
According to documents in this case, on November 16, 2016, Hawkins and two accomplices robbed a bank in Mishawaka. Wearing masks and gloves, they used a rifle and a handgun to threaten the victims while they stuffed cash into backpacks. Police caught them at a house in Elkhart a short time later. The two accomplices, Jeffery Wilson, 29, and David Woods, 30, both of Elkhart have pled guilty and are awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation and handled by Assistant U.S. Attorney Joel Gabrielse.
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East St. Louis Man Sentenced to Eight Years for Felon in Possession of a FirearmRead the Press Release
Michael Davis, 32, of East St. Louis, Illinois, was sentenced to 8 years of imprisonment in the United States District Court, Benton, for Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. The Court also ordered Davis to pay a $100 special assessment and to serve a term of three years of supervised release. There is no parole in the federal system. Davis has been in custody since his arrest on August 17, 2016.
Court documents establish that, on August 17, 2016, Fairview Heights police received a report of shots fired at a residence within Fairview Heights city limits. Officers responded to the residence, and upon their arrival, spoke to a neighbor who stated he had heard several shots. As officers approached the residence at issue, they heard the sound of a weapon being "racked." Officers then heard three rapid shots coming from the rear of the residence. Three individuals, including Davis, were present at the residence and taken into custody by Fairview Heights police. Later, officers recovered a cellular telephone video that depicts Davis firing an LAR-15 semiautomatic rifle three times in the back yard of the residence at issue. Information from the video establishes someone took the video on the same date and at the same time as officers’ response to the residence. Court documents further establish that, prior to August 17, 2016, Davis was convicted of a crime punishable by a term of imprisonment of more than one year.
The Fairview Heights Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of this matter. Assistant United States Attorney Nicholas Biersbach prosecuted this case.
Dover Man Pleads Guilty to Possessing Ammunition UnlawfullyRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Isaiah Johnson, 37, of Dover, New Hampshire, pleaded guilty today to being a felon in possession of ammunition.
According to court documents and statements made in court, on September 20, 2016, Dover Police pulled over a vehicle for a traffic violation. Johnson was a passenger in the vehicle. During the traffic stop, Johnson was found to have a loaded ammunition clip in his pocket. As a previously-convicted felon, Johnson is prohibited from possessing ammunition or firearms.
Johnson is scheduled to be sentenced on September 6, 2017.
“The United States Attorney’s Office is committed to working with our federal, state, and local law enforcement partners to combat gun-related violence. Keeping firearms and ammunition out of the hands of convicted criminals helps to keep our communities safe. I commend the work of law enforcement officers in this case,” said Acting U.S. Attorney Farley.
This matter was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dover Police Department. The case is part of ATF’s Project Safe Neighborhoods, a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
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District Man Sentenced to More Than 11 Years in Prison for Series of Thefts from Retail Establishments, Robbery, Other CrimesRead the Press Release
WASHINGTON - Edward Lee Staton, Jr., 53, of Washington, D.C., has been sentenced to 137 months in prison for a series of crimes he committed over a 19-month period, including the robbery at knifepoint of an elderly tourist and numerous thefts from retail establishments, U.S. Attorney Channing D. Phillips announced today. In three of the incidents, Staton brandished a knife in the direction of store employees who tried to stop him.
Staton pled guilty in March 2017, in the Superior Court of the District of Columbia, to 12 offenses committed on different dates, including charges of robbery, assault with a dangerous weapon, second-degree burglary, simple assault, second-degree theft, possession of a prohibited weapon, and failing to appear for a court hearing. He was sentenced on May 10, 2017 by the Honorable Ronna L. Beck. Following completion of his prison term, Staton will be placed on three years of supervised release.
According to the government’s evidence, between February 2015 and September 2016, Staton was responsible for more than 35 incidents, ranging from shoplifting to robbery. The crimes led to more than $30,000 in reported losses. Most of Staton’s crimes involved entering Washington, D.C. retail establishments and using a large trash or laundry bag to steal a significant volume of retail items, such as clothing, medication, and toiletries. In his guilty plea, Staton admitted to 11 incidents, as well as failing to appear for a court hearing last summer. In some instances, Staton targeted the same store on more than one occasion.
In his plea, Staton admitted to committing crimes on these dates and at these locations:
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Dec, 30, 2015, about 2:40 p.m.: Gap store, 600 block of 11th Street NW.
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Jan. 11, 2016, about 5:25 p.m.: CVS, 3200 block of Connecticut Avenue NW.
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Jan. 30, 2016: about 3:10 p.m.: CVS, 400 block of 8th Street NW.
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June 17, 2016, about 1:30 p.m.: CVS, 500 block of 12th Street SE.
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June 20, 2016, about 3 p.m.: District Taco, 600 block of Pennsylvania Avenue SE. In this incident, Staton took a woman’s wallet.
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July 2, 2016, about 9:45 p.m. CVS, 400 block of Massachusetts Avenue NW.
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July 10, 2016, about 8:50 p.m.: Staton took the wallet of an elderly tourist who was walking down 900 block of Massachusetts Avenue NW. He also brandished a knife at the tourist and two people who tried to intervene.
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July 21, 2016, about 7 p.m.: Banana Republic, 600 block of 13th Street NW.
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Aug. 8, 2016, about 2:30 p.m.: Banana Republic, 600 block of 13th Street NW.
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Aug. 9, 2016, about 4:25 p.m.: TJ Maxx, 600 block of 13th Street NW.
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Sept. 13, 2016, about 2:35 p.m.: CVS, 500 block of 12th Street SE.
Staton was arrested on Sept. 13, 2016.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department, especially the detectives of the First Police District. He also expressed appreciation for the assistance provided by the CVS Organized Retail Crime Unit as well as the Mid-Atlantic Organized Retail Crime Alliance. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Kacie Weston, Veronica Sanchez, and Douglas Klein; Special Assistant U.S. Attorney Brenna Bush; Supervisory Paralegal Specialist Lynda Randolph, and Legal Intern Devin Barrett. Finally, he commended the work of Assistant U.S. Attorney Andrew Floyd, who investigated and prosecuted the case.
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Detroit Man Pleads Guilty in Case Involving BitcoinsRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Sal Mansy, 41, of Detroit, Michigan, and TV TOYZ, LLC, a Michigan corporation, pleaded guilty today in U.S. District Court to operating an unlicensed money service business.
According to court documents, Mansy bought and sold approximately $2,400,000 worth of the virtual currency “Bitcoin” for profit online between August 2013 and June 2015. Mansy would funnel proceeds from his Bitcoin sales through the business bank account of TV TOYZ, a limited liability corporation he owned and operated.
A year-long investigation into Mansy’s activities culminated in June 2015 with a search of his Detroit residence and the seizure of three of his bank accounts, containing a combined total of $118,134.57.
Mansy engaged in the buying and selling of Bitcoin for profit without ever registering his money service business with federal authorities. Through this failure to register, Mansy violated Title 18, United States Code, Section 1960, which makes it a crime to transfer money for others as a business without obtaining appropriate licenses.
Mansy faces up to five years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Portland, Maine and Detroit, Michigan offices of the Department of Homeland Security, Homeland Security Investigations; and the Saco Police Department.
DEA Launches “360 Strategy” in Albuquerque to Address Heroin and Prescription Opioid Epidemic and Related CrimeRead the Press Release
ALBUQUERQUE - The U.S. Drug Enforcement Administration (DEA) today announced that Albuquerque, N.M., has been selected as the seventh pilot city to be part of the DEA’s comprehensive law enforcement and prevention “360 Strategy” to help cities dealing with the heroin and prescription opioid abuse epidemic and crime associated with drug trafficking and abuse. Assistant Special Agent in Charge Sean R. Waite of the DEA Albuquerque District Office made the announcement during a press conference at the Boys and Girls Club of New Mexico in Albuquerque.
Acting U.S. Attorney James D. Tierney and Executive Vice Chancellor Richard Larson of the UNM Health Sciences Center, partners in the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative, Bernalillo County Commissioner Maggie Hart Stebbins, City Councilor Diane Gibson, Executive Director Jennifer Weiss-Burke of Healing Addiction in our Community, and representatives of other community stakeholders joined Assistant Special Agent in Charge Waite in launching the DEA 360 Strategy in Albuquerque and Bernalillo County.
“This comprehensive strategy leverages and expands existing federal, state and local partnerships, including the HOPE Initiative, to address New Mexico’s opioid epidemic on several different fronts – law enforcement, prescription drug control, drug education, prevention and treatment,” said Assistant Special Agent in Charge Waite.
The DEA 360 Strategy responds to the heroin and prescription opioid epidemic with an innovative three-pronged approach to combating heroin and opioid use through: (1) coordinated law enforcement action targeting all levels of drug trafficking organizations; (2) engaging drug manufacturers, practitioners and pharmacists to increase awareness of the opioid epidemic and encourage responsible prescribing practices throughout the medical community; and (3) community outreach and partnerships to equip and empower communities to fight the opioid epidemic. DEA first rolled out the 360 Strategy in Nov. 2015 in Pittsburgh, Penn. Albuquerque is the seventh city selected to participate in the Strategy.
The first component of the DEA 360 Strategy is premised on DEA’s traditional enforcement model that targets cartels and drug distributors who fuel the heroin and prescription opioid epidemic in our communities. In Albuquerque, DEA will continue to execute the enforcement component by relying and expanding on its many law enforcement partnerships. While law enforcement plays a central role in the 360 Strategy, DEA recognizes that enforcement actions alone are not enough to make lasting changes in our communities.
The second component of the DEA 360 Strategy involves collaboration with healthcare providers and health organizations to facilitate discussions and develop solutions to prevent prescription opioid abuse, which continues to drive our devastating heroin epidemic. National studies reveal that 80% of all new heroin users started their addictions with prescription painkillers and national statistics show that more than 35,000 people die every year as the result of heroin or prescription opioid overdoses. The 360 Strategy focuses on preventing pharmaceutical drug diversion by providing education and training within the medical and pharmaceutical community.
The third component of the Strategy seeks to enable communities to find long-term solutions to their drug problems by expanding and leveraging partnerships, both nationally and locally, in drug education, drug prevention and drug treatment. Drug education and prevention efforts are supremely important because they give us the tools and knowledge to remain drug free. DEA and its community partners will form a community alliance comprised of leaders from law enforcement, prevention and treatment advocates, the judicial system, education, business, government, civic organizations, faith communities, media, social services and others, will help carry the important prevention and treatment messages to the Albuquerque and Bernalillo County community.
DEA and the HOPE Initiative partners will work with the Justice Department’s Violence Reduction Network, U.S. Health and Human Services, Substance Abuse and Mental Health Services Administration, Centers for Disease Control, Community Anti-Drug Coalitions of America (CADCA), Partnership for Drug-Free Kids, Healing Addiction in our Community (HAC), Boys and Girls Club of New Mexico, the National Guard, the City of Albuquerque, Bernalillo County, Albuquerque Public Schools, the Elks Club and many other community stakeholders under the DEA 360 Strategy to turn the tide on the prescription opioid and heroin epidemic and the tragedy it brings to Albuquerque and Bernalillo County.
The DEA 360 Strategy augments DEA’s active and continuing participation in the HOPE Initiative, which was launched in Jan. 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic that has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, Bernalillo County, the City of Albuquerque, Healing Addiction in our Community and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning.
Learn more about the 360 Strategy at https://www.dea.gov/prevention/360-strategy/360-strategy.shtml. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Columbia County Man Indicted for Forced Labor and Aggravated Sexual AbuseRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Guarino Edwards Broccoli, a/k/a Gary Broccoli, a/k/a Gary Edwards (53, Fort White), with forced labor and aggravated sexual abuse. If convicted, he faces a maximum penalty of life in federal prison. The indictment also notifies Broccoli that the United States intends to forfeit his residence, including all manufactured homes, located at 439 SW Tara Court in Fort White.
According to the
indictment , Broccoli obtained the labor and services of a female using force and threats of force, causing her to believe that if she did not perform such labor and services she would suffer serious harm. It is also alleged that this offense included aggravated sexual abuse.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Columbia County Sheriff’s Office and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ashley Washington.
This investigation is ongoing. The U.S. Attorney’s Office is seeking other potential victims related to this individual and/or the location listed in this indictment. Anyone with additional information is encouraged to contact the FBI -Jacksonville Field Office at 904-248-7000.
Cleveland man sentenced to nearly six years in prison for carjcackingRead the Press Release
A Cleveland man was sentenced to nearly six years in prison for his role in a carjacking, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Calvin Rembert, 23, was sentenced to 70 months in prison. He pleaded guilty to robbing a restaurant worker in Cleveland’s Tremont neighborhood on July 25, 2015.
D’wan Dillard, Jr., 21, was sentenced last week to more than 16 years in federal prison for his role in two carjackings during the summer of 2015.
Dillard, Rembert, Tervon’tae Taylor, Kenneth Jackson and Antowine Palmer were all convicted of crimes related to a series of carjackings in Cleveland. Taylor, Jackson and Palmer await sentencing.
“This defendant used robbed someone working hard to provide for himself,” Sierleja said. “We will continue to use every statute available to lock up violent predators.”
“These defendants terrorized victims and the city with their dangerous, gun-wielding car thefts,” Anthony said. “The Violent Crime Task Force and our local partners are committed to aggressively investigate predators who choose to engage in heinous acts of violence against our citizens.”
This case is being prosecuted by Assistant U.S. Attorneys Kelly Galvin and Robert Patton following an investigation by the Federal Bureau of Investigation and Cleveland Division of Police.
Cleveland Heights woman sentenced to 10 years in prison, son to seven years for $8 million home healthcare fraudRead the Press Release
A Cleveland Heights woman was sentenced to 10 years in prison for leading a $8 million healthcare fraud conspiracy in which participants provided forged documents and fraudulent forms to bill for services that were not provided, law enforcement officials said.
Delores L. Knight, 71, was sentenced to a decade in prison and ordered to pay $8.1 million in restitution. She was one of four people sentenced Wednesday for their roles in a health care fraud conspiracy involving the company Just Like Familiee.
Her son, Isaac R. Knight, 30, of Macedonia, was sentenced to more than seven years in prison and also ordered to pay $8.1 million in restitution.
Sonja N. Ferrrell, 45, of Cleveland, was sentenced to 18 months in prison and ordered to pay $1.1 million in restitution.
Juliet L. Bonner, 62, of Cleveland, was sentenced to eight months of home confinement, three years of probation and $381,000 in restitution.
All four worked in some capacity for Just Like Familee II, Inc., and Just Like Familee III, Inc., which the defendants incorporated in 2005 and 2006, respectively, to provide home health services for elderly and disabled clients. The companies had locations at various times in Cleveland Heights, Twinsburg and Mentor, according to court documents.
Together they defrauded Medicaid, Medicare and the Department of Veteran Affairs out of more than $8 million as a result of the conspiracy in which they prepared and submitted forged or false records in support of previously submitted and reimbursed billings for patients they did not actually provide face-to-face services, according to court documents.
Prosecutors are seeking to forfeit homes at 1048 Morning Glory Drive in Macedonia and 7915 Ridgetop Drive in Twinsburg that were purchased with the proceeds of the fraud. They have a combined appraised value of nearly $800,000, according to court documents.
“Instead of using guns to rob banks, these defendants used fake and forged documents to rob the public,” Sierleja said. “Instead of helping the sick, the stole millions of dollars from taxpayers.”
“In order to enrich themselves, the defendants submitted forged documents and fraudulent forms as part of an extensive conspiracy to bill Federal health care programs for services never rendered.”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to identify, investigate, and hold those accountable who seek to fraudulently obtain taxpayer dollars vital to the support of our most vulnerable citizens.”
"Delores Knight can now spend time behind bars for stealing millions of dollars," said FBI Special Agent in Charge Stephen D. Anthony. "We are all impacted by healthcare fraud and the FBI will continue working with our partners to ensure financial criminals like Ms. Knight are held accountable."
“When you collect millions of dollars for services that were never provided, you expose yourself as nothing more than a thief,” said Frank S. Turner II, Acting Special Agent in Charge of IRS-Criminal Investigation Cincinnati Field Office. “The health care fraud detailed in this case is egregious and had such a negative impact on our community. Patients that have a legitimate need for these services now may face rising costs for such services.”
“Stealing from the taxpayers and undermining our healthcare system is particularly egregious when it's done at the expense of our nation's heroes,” said Gavin McClaren, Resident Agent in Charge, Cleveland, Department of Veterans Affairs, Office of Inspector General.
This case was prosecuted by Assistant U.S. Attorneys Mark Bennett and James L. Morford and Special Assistant U.S. Attorney Maritsa Flaherty following an investigation by the Department of Health and Human Services, the FBI, the IRS, the Department of Veteran’s Affairs and the Ohio Attorney General’s Office.
Clayton Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that IVAN ALEXANDER WILLIAMSON, age 26, of Clayton, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by no more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about February 9, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Clayton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Check Cashing Conspirators SentencedRead the Press Release
G. F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that on May 16 and May 17, 2017, Senior United States District Court Judge Hugh Lawson sentenced Caseita Jenkins, age 39 of Fort Valley, Georgia, Jennifer Wilson, age 38 of Moultrie, Georgia, Tonyal Loud, age 38 of Moultrie, Georgia, and Oceana Pace, age 26 of Moultrie, Georgia, for their participation in a conspiracy to cash fraudulently obtained U.S. Treasury Checks.
Defendants engaged in a conspiracy to defraud the U.S. Government that stretched from December 2011 through April 2012. During that time, Oceana Pace was a cashier and Tonyal Loud was a Customer Service Manager at the Wal-Mart located in Moultrie, Georgia. In furtherance of the conspiracy, Caseita Jenkins and Jennifer Wilson would procure fraudulently obtained U.S. Treasury Checks containing tax refunds and bring these checks to be cashed by Pace and Loud at Wal-Mart.
For their conduct, Caseita Jenkins was sentenced to 37 months in federal prison, Jennifer Wilson was sentenced to 30 months in federal prison, and Tonyal Loud was sentenced to 30 months in federal prison. Pace was sentenced to 36 months of probation. Each defendant was ordered to repay the loss from their conspiracy, a total of $206,108.86.
“These defendants stole from the Treasury of the United States, from the citizens whose payments were diverted, and from the defendants’ own employers. I commend the deputies of the Lowndes and Colquitt County Sheriff’s Offices and the Special Agents of the Secret Service for their teamwork in bringing these thieves to justice,” said United States Attorney Peterman.
“The Secret Service remains committed to aggressively investigate those responsible for committing fraud for the purpose of defrauding the nation’s financial system. Along with our law enforcement partners we will continue to pursue those committing these crimes,” said Clint A. Bush , Resident Agent in Charge, Albany, Georgia Resident Office, United States Secret Service.
The case was investigated by the Lowndes County Sherriff’s Office, the Colquitt County Sheriff’s Office, and the United States Secret Service. Assistant United States Attorney Julia C. Bowen 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.
Cape Cod Woman Pleads Guilty to Her Role in Drug and Money Laundering RingRead the Press Release
BOSTON – A Cape Cod woman pleaded guilty today in federal court in Boston in connection with a drug and money laundering ring.
Diane Johnson, 50, of Mashpee, pleaded guilty before U.S. District Court Judge Indira Talwani to one count of money laundering conspiracy and is scheduled to be sentenced on August 23, 2017.
From 2010 to 2015, Johnson and her son David Landry conspired to launder drug proceeds in order to disguise the nature of the funds and continue their drug trafficking activity. From May 2014 to January 2015, two of Johnson’s co-defendants, Landry and Justin Groom, conspired to manufacture and distribute marijuana and possessed marijuana with the intent to distribute it. Landry, a convicted felon, was also found in possession of a .40 caliber semi-automatic pistol. He continued participating in the criminal offense while in jail on state charges. Groom was also charged with eight counts of money laundering in connection with using the proceeds of the illegal activities to pay the rent of the home where he grew marijuana, at Landry’s direction. A third co-defendant, Evan Lopes, aided by Landry, possessed methylone.
David Landry and Justin Groom were sentenced in March 2017 to 78 months in prison and two years of probation, respectively. Evan Lopes is scheduled to plead guilty on May 23, 2017.
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 $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Barnstable Police Chief Paul MacDonald; Barnstable County Sheriff James M. Cummings; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Cape & Islands District Attorney Michael O’Keefe, made the announcement. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Cambodian National Sentenced for Violations of the Federal Gun Control ActRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CHHAY LIM, age 47, a citizen of Cambodia, was sentenced today after previously pleading guilty to possession of firearms by an alien present illegally and unlawfully in the United States.
U.S. District Judge Kurt D. Engelhardt sentenced LIM to serve ten months imprisonment, to be followed by one year of supervised release. LIM is subject to deportation following his release from prison.
According to court documents, on or about March 2, 2015, LIM, an alien present illegally in the United States, was found in possession of a TriStar 9mm semi-automatic pistol and a Marlin Model 6082, .22 caliber rifle.
Acting U.S. Attorney Evans praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorneys Spiro G. Latsis and Sean Toomey were in charge of the prosecution.
California Woman Pleads Guilty in International Fraud CaseRead the Press Release
Gulfport, Miss – A California woman pled guilty this week in an international fraud case that started in 2014 when sixteen individuals were arrested in South Africa, Canada, California, Wisconsin, New York and Indiana, pursuant to an eight-count federal indictment filed in the Southern District of Mississippi, announced Acting U.S. Attorney Harold Brittain and Raymond Parmer, Jr., Special Agent in Charge of Immigration Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New Orleans.
Susan Ann Villeneuve, 61, of Escalon, California, entered guilty pleas on May 15, 2017 to conspiracy to commit mail and wire fraud and aggravated identity theft. This case involved a West African transnational organized crime enterprise involved in numerous complex financial fraud schemes over the internet. The mass marketing fraud included romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.
The investigation was initiated in October 2011 by HSI agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars. Villeneuve was responsible for sending out over $26,000,000 in counterfeit checks to victims across the country by USPS, UPS and FedEx. She will be sentenced on August 22, 2017 by U.S. District Judge Sul Ozerden in Gulfport, and faces a maximum penalty of five years in prison on the conspiracy charge and an additional two years in prison on the aggravated identity theft charge.
The investigation was led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto Police, HSI Cyber Crimes Center,
Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The case in Mississippi is being prosecuted by Assistant U.S. Attorney Annette Williams, Conor Mulroe, Trial Attorney of the Department of Justice Organized Crime and Gang Section and Peter Roman, Senior Counsel of the Computer Crimes Intellectual Property Section.
If you believe you were the victim of criminal fraud committed by any of the defendants, you may contact the government at the email address [email protected].
California Man Sentenced for Assault with the Intent to Commit Murder and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Paramount, California, man convicted of Assault with the Intent to Commit Murder and Assault Resulting in Serious Bodily Injury was sentenced on May 15, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Daniel Hess, a/k/a Jason Hess, age 44, was sentenced to 20 years in custody, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund as to the charge of Assault with the Intent to Commit Murder. Hess was sentenced to 10 years in custody, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund as to the charge of Assault Resulting in Serious Bodily Injury. The sentences were ordered to be served consecutively.
The conviction stems from Hess, Phyllis Lucero, and Seth Hernandez, driving to a 73-year-old woman’s home on the evening of October 17, 2015, and breaking into the home with the intent to assault the woman and her adult son and steal their belongings, mainly cash. The three defendants wore masks covering their faces in order to disguise their appearances. Once the three masked individuals gained entrance to the home, the two male defendants assaulted the adult male. Hess strangled the male victim, rendering him unconscious. Hess assaulted the 73-year-old female victim by kicking her as she laid in a pool of her own blood. The defendants went in and out of the home removing the victims’ personal property and loaded it into the female victim’s truck. Hess drove Lucero and Hernandez to separate locations within the Pine Ridge Reservation before returning to the victims’ home. When Hess returned a second time, he removed additional personal property and bound the male victim’s ankles with an electrical cord and his hands with duct tape. Hess bound the elderly woman’s hands and ankles with duct tape.
Upon being transported to the Rapid City Regional Hospital and admitted to the Intensive Care Unit, both victims were found to have extensive bruising and lacerations to their heads, bleeding on their brains, and rib fractures. The elderly woman had several lacerations to her face and head, which required 17 staples to secure.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Megan Poppen and Ben Patterson prosecuted the case.
Hess was immediately turned over to the custody of the U.S. Marshals Service.
California Man Pleads Guilty to Smuggling Three Kilograms of Heroin to Delaware in Gas TankRead the Press Release
Wilmington, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced that Uriel Erendira Nava, age 42, pled guilty today to conspiracy to possess with intent to distribute heroin.
According to the indictment and statements made in open court, Nava and co-conspirator Ana Sanchez were part of a larger criminal organization based out of California and Mexico trafficking in multiple drugs, including heroin. In August 2016, Nava and Sanchez drove from California in order to deliver three kilograms of heroin to a Delaware buyer in a prearranged sale. The three kilograms of heroin, hidden in the gas tank of the vehicle driven by Nava and discovered by the Drug Enforcement Administration (“DEA”) in the course of its investigation, represents one of the largest single seizures of heroin in Delaware to date.
“As heroin infiltrates our community, we will fight back,” said Acting United States Attorney David C. Weiss. “With the dedicated work of the DEA’s High Intensity Drug Trafficking Area (“HITDA”) Group, we continue to make the investigation and prosecution of heroin traffickers a top priority.”
Nava’s plea is the first conviction resulting from a DEA Group 41 HIDTA investigation that included collaboration with DEA Philadelphia and DEA Sacramento. The New Castle County HIDTA, part of the Philadelphia-Camden HIDTA, is a collaborative effort established in January 2015 among federal, state, and local law enforcement agencies in Delaware. The DEA HIDTA Group 41 includes members from the following agencies: DEA, Delaware State Police, New Castle County Police Department, Newark Police Department, Department of Homeland Security – Homeland Security Investigations, Delaware Department of Corrections – Probation and Parole, and the Delaware Attorney General’s Office.
Assistant United States Attorneys Whitney Cloud and Jennifer K. Welsh are prosecuting the case on behalf of the United States.
Bridgeport Man Admits Selling Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DARRYCK NORRIS, 23, of Bridgeport, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of 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, at approximately 8:49 p.m. on October 27, 2016, Milford Police and emergency medical personnel responded to a residence in Milford and found an unresponsive 37-year-old male slumped over in the downstairs living area of the residence. Emergency personnel attempted lifesaving measures and administered two doses of the opiate antidote Narcan (Naloxone), which had no effect. The victim was pronounced deceased. Officers searched the immediate area and seized four empty baggies and one full baggy that contained suspected heroin. Each of the bags was stamped with the same brand stamp.
Officers also seized the victim’s iPhone. Analysis of text messages revealed that the victim had ordered heroin from NORRIS earlier that day. Witness interviews and further cellphone analysis revealed that the victim had purchased heroin from NORRIS for several months prior to the victim’s overdose.
On November 1, 2016, members of the DEA and Milford Police Department conducted a controlled purchase of heroin from NORRIS in Bridgeport. The heroin bags purchased were stamped with the same stamp that was found on the bags seized from the overdose victim’s residence.
NORRIS was arrested on a federal criminal complaint on November 3, 2016.
The offense carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
NORRIS is released on a $50,000 bond.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport Resident Office, the DEA’s New Haven Tactical Diversion Squad and the Milford and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Berkeley Man Convicted of Murder for HireRead the Press Release
St. Louis, MO - The United States Attorney=s Office announced today that William “Chuckie” Clarett was convicted of federal conspiracy to commit murder for hire involving the murder of Travis Hayden.
On April 22, 2015, Travis Hayden was murdered in Berkeley, MO. A witness identified William Clarett, a/k/a “Chuckie” as the shooter. That same day, the witness gave a written statement to police and picked Clarett out in a photospread. On December 31, 2015, investigators arrested Clarett for the murder of Travis Hayden. A complaint was issued on January 1, 2016, charging Clarett with Murder 1st Degree and Armed Criminal Action. Clarett was detained at the St. Louis County Justice Center.
On February 10, 2016, the witness testified before a grand jury in St. Louis County and the Grand Jury returned a true bill on the murder and ACA counts. The witness’ name and address were publicly disclosed in connection with the indictment. While Clarett was detained in the Justice Center on the murder, Clarett began talking to an inmate that he knew from the neighborhood. The inmate advised authorities that Clarett was asking him to help find someone to kill the witness. ATF then arranged to have an Undercover Officer (UC) pose as a potential hitman. Between June 14, 2016 and June 30, 2016, Clarett spoke to UC six times over the phone about killing the witness. On July 1, 2016, Clarett met with UC at the Justice Center and told him he would provide UC with the down payment for the murder. Thereafter, Clarett released $500 from his commissary which was later given to the UC along with the photograph of the witness.
Clarett, 34, Berkeley, MO, was convicted of one count of conspiracy to commit murder for hire. The three-day trial was held before United States District Judge Audrey Fleissig. Sentencing has been set for September 2017.
Clarett is facing a maximum sentence of 10 years in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Cottleville Police Department.
Beam Brothers Trucking, Beam Brother Holding Company Plead Guilty to a Pair of Federal Felony Conspiracy ChargesRead the Press Release
Harrisonburg, VIRGINIA – A Mount Crawford based trucking company that formerly hauled United States mail, as well as four of its officers, the President, Vice-President, Chief Financial Officer and Chief Operating Officer, pled guilty yesterday in the United States District Court for the Western District of Virginia in Harrisonburg to federal conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Beam Brothers pled guilty to one count of conspiracy to commit an offense against the United States, that is falsification of records in contemplation of a federal matter. Beam Brothers Holding, the parent company of Beam Brothers Trucking, also pled guilty today to one count of conspiracy to commit wire fraud.
As part of the plea agreement, Beam Brothers agreed to pay a fine of $250,000 and forfeit $2,000,000 of fraudulently obtained proceeds. Beam Brothers will also pay approximately $1,000,000 in restitution to drivers who were defrauded of their pay.
In addition, the four most senior officers of the company pled guilty to related misdemeanor conspiracy charges. In separate Informations, Gerald Wayne Beam, 67, Garland Crawford Beam, 62, Shaun Crawford Beam, 36, all of Mount Crawford, and Nickolas Gene Kozel, 40, of Harrisonburg, each pled guilty to one count of conspiracy to commit an offense against the United States, to knowingly violate the Federal Motor Carrier Safety Administration (FMCSA) highway safety regulations.
According to evidence presented by Assistant United States Attorneys Stephen J. Pfleger and Christopher Kavanaugh, between 1999 and 2017, Beam Brothers Trucking knowingly violated the FMCSA safety regulations by encouraging, permitting, causing or requiring drivers for Beam Brothers Trucking to make trips in violation of federal safety regulations designed to prevent commercial motor vehicle crashes caused by fatigued drivers. .
Those violations included; falsely recording their duty statuses; encouraging and permitting some Beam Brothers Trucking commercial motor vehicle (CMV) drivers to falsify their time sheets to report fewer hours worked than they actually worked; telling some Beam Brothers Trucking CMV drivers that they would not be paid for short rest periods, for time waiting for their trailers to be loaded or unloaded at postal facilities; failing to inform some Beam Brothers Trucking CMV drivers of pay requirements of the mail contracts; failing to review and consider some Beam Brothers Trucking CMV drivers’ request for additional pay and failing to pay some Beam Brothers Trucking CMV drivers as required under the federal Service Contract Act, the Fair Labor Standards Act and the mail contracts.
The investigation of the case was conducted by the U.S. Postal Service, Office of the Inspector General, the Department of Transportation, Office of the Inspector General, the Department of Labor, Office of the Inspector General and the Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Stephen J. Pfleger and Christopher Kavanaugh prosecuted the case for the United States.
Bay Area Residents Charged in Drug Distribution Conspiracy and Related CrimesRead the Press Release
SAN FRANCISCO- A federal grand jury indicted 23 individuals, 22 of whom are Bay Area residents, for their respective roles in a conspiracy to engage in an extensive drug trafficking network, announced United States Attorney Brian J. Stretch and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The indictment was unsealed today.
The seventeen-count indictment charges that between March 22, 2016, and April 27, 2017, nineteen of the defendants engaged in a conspiracy to distribute at least 500 grams of methamphetamine and more than five kilograms of cocaine and heroin. In addition, the indictment accuses all but one of the defendants of possession with intent to distribute drugs. The defendant not accused of possessing and distributing drugs is charged with being a felon in possession of a firearm. The precise charges against each defendant, as well as their ages and places of residence, are set out in the chart below.
Defendant
Age/
Residence
Charges
Statute
Felix Galindo
32/
San Francisco
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute 5 Kilograms or More of Cocaine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(B)(ii)(II)
Natalie Hernandez
21/
San Francisco
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute 5 Kilograms or More of Cocaine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(B)(ii)(II)
Pedro Lopez-Galindo
30/
San Francisco
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute 5 Kilograms or More of Cocaine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(B)(ii)(II)
Carolina Soto
28/
Daly City
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute 5 Kilograms or More of Cocaine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(B)(ii)(II)
Rafael Romero-Rodriguez
20/
Fresno
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute Cocaine 500 Grams or More of Cocaine
21 U.S.C. § 841(a)(1) and (b)(1)(B)(ii)(II)
Ismael Rodriguez Loreto
33/
Fresno
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute Cocaine 500 Grams or More of Cocaine
21 U.S.C. § 841(a)(1) and (b)(1)(B)
Possession With Intent to Distribute 5 Kilograms or More of Cocaine
21 U.S.C. § 841(a)(1) and (b)(1)(B)(ii)(II)
Carlos Ferran Leon
33/
Hayward
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. § 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute 500 Grams or More of A Mixture and Substance Containing Methamphetamine
(2 Counts)
21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii)
Possession With Intent to Distribute 28 Grams or More of Cocaine Base
21 U.S.C. § 841(a)(1) and (b)(1)(B)(iii)
Possession With Intent to Distribute 50 Grams or More of A Mixture and Substance Containing Methamphetamine
(5 counts)
21 U.S.C. § 841(a)(1) and (b)(1)(B)(viii)
Possession With Intent to Distribute Heroin
(2 counts)
21 U.S.C. § 841(a)(1) and (b)(1)(C)
Jesus Chavez Espinoza
26/
San Jose
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute 500 Grams or More of A Mixture and Substance Containing Methamphetamine
21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii)
Efrain Torres
28/
San Jose
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute 500 Grams or More of A Mixture and Substance Containing Methamphetamine
21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii)
Henry Javier Lopez Alverto
29/
San Francisco
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Xavier Eriberto Sanchez Hernandez
25/
San Francisco
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute 50 Grams or More of A Mixture and Substance Containing Methamphetamine
21 U.S.C. § 841(a)(1) and (b)(1)(B)(viii)
Juan Jose Flores Jr.
38/
Daly City
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Yader Rubi-Morales
25/
San Pablo
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Branko Budimir
29/
San Francisco
Felon in possession of a firearm
18 U.S.C. § 922(g)
Julio Covarrubias
38/
San Francisco
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute Heroin
(3 counts)
- U.S.C. § 841(a)(1) and (b)(1)(C)
Possession With Intent to Distribute 50 Grams or More of A Mixture and Substance Containing Methamphetamine
(5 counts)
- U.S.C. § 841(a)(1) and (b)(1)(B)(viii)
Possession With Intent to Distribute 500 Grams or More of A Mixture and Substance Containing Methamphetamine
21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii)
Theresa Carter
27/
San Francisco
Possession With Intent to Distribute 28 Grams or More of Cocaine Base
21 U.S.C. § 841(a)(1) and (b)(1)(B)(iii)
Jose Villanueva-Canchola
28/
San Francisco
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Anthony Balenzuela
56/
San Francisco
Possession with Intent to Distribute 50 Grams or More of a Mixture and Substance Containing Methamphetamine
21 U.S.C. § 841(a)(1) and (b)(1)(B)(viii)
Lillian Larios
37/
San Francisco
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Antonio Serranorivas
21/
San Francisco
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Possession With Intent to Distribute 500 Grams or More of A Mixture and Substance Containing Methamphetamine
21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii)
Stephen Asmus
25/
Redding
Possession With Intent to Distribute Heroin
21 U.S.C. § 841(a)(1) and (b)(1)(C)
Lucy Lopez
40/
San Leandro
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(A)
Robert Zander Seaton
33/
San Francisco
Possession With Intent to Distribute 50 Grams or More of A Mixture and Substance Containing Methamphetamine
21 U.S.C. § 841(a)(1) and (b)(1)(A)
The indictment follows the filing of a criminal complaint on April 25, 2017, and updates the charges against the six defendants who were named in that original complaint: Pedro Lopez-Galindo, Felix Lopez-Galindo, Natalie Hernandez, Carolina Soto, Ismael Rodriguez-Loreto, and Rafael Romero-Rodriguez. According to the complaint, the DEA had been investigating a drug trafficking organization since November of 2016, and believed that the organization distributed large quantities of heroin, cocaine, and methamphetamine in California and other states. The complaint accuses Felix Lopez-Galindo of running the organization with the help of his brother, Pedro Lopez-Galindo. Pedro is described in the complaint as Felix’s “right-hand man.” Also described in the complaint are two seizures by the DEA of cocaine. As a result of the first seizure, on April 13, 2017, the DEA intercepted at least 500 grams of cocaine headed from Fresno to Northern California. The second seizure occurred April 20, 2017, and resulted in the confiscation of more than 5 kilograms of cocaine.
The indictment unsealed today includes all the charges made in the original complaint and adds an additional 17 defendants. The indictment also describes more than a dozen additional transactions in which two or more of the defendants are alleged to have possessed, purchased, or sold cocaine, heroin, or methamphetamine.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum statutory penalties for the crimes of which the defendants have been accused are as follows:
Conspiracy to Possess With Intent to Distribute 5 Kilograms or More of Cocaine, 500 Grams or More of Methamphetamine, and Heroin
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Minimum 10 years prison
Maximum lifetime imprisonment
Minimum 5 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $10,000,000 fine
Possession With Intent to Distribute Cocaine 500 Grams or More of Cocaine
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(ii)(II)
Minimum 5 years prison
Maximum 40 years
Minimum 4 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $5,000,000 fine
Possession With Intent to Distribute Cocaine 5 Kilograms or More of Cocaine
- U.S.C. §§ 841(a)(1) and (b)(1)(A)(ii)(II)
Minimum 10 years prison
Maximum lifetime imprisonment
Minimum years supervised release following incarceration
Maximum lifetime supervised release
Maximum $10,000,000 fine
Possession With Intent to Distribute 500 Grams or More of A Mixture and Substance Containing Methamphetamine
21 U.S.C. §§ 841(a)(1) and (b)(1)(A)(viii)
Minimum 10 years imprisonment
Maximum lifetime imprisonment
Minimum 5 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $10,000,000 fine
Possession With Intent to Distribute 28 Grams or More of Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(iii)
Minimum 5 years prison
Maximum 40 years
Minimum 4 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $5,000,000 fine
Possession With Intent to Distribute 50 Grams or More of A Mixture and Substance Containing Methamphetamine
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii)
Minimum 5 years prison
Maximum 40 years
Minimum 4 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $5,000,000 fine
Possession With Intent to Distribute Heroin
- U.S.C. §§ 841(a)(1) and (b)(1)(C)
Maximum 20 years imprisonment
Maximum lifetime supervised release following incarceration
Minimum 3 years supervised release
Maximum $1,000,000 fine
Felon in Possession of a Firearm
18 U.S.C. § 922(g)(1)
Maximum 10 years in prison
Maximum 3 years supervised release
Maximum $250,000 fine
Further, additional fines, forfeitures, denial of federal benefits, deportation, and restitution may be ordered; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Several of the defendants were arrested yesterday as part of a criminal enforcement operation. The coordinated arrests and searches took place in San Francisco, Daly City, and San Jose. The first district court appearance for defendants is on June 15, 2017, before the Honorable William H. Orrick
Assistant U.S. Attorneys Sheila Armbrust and Rita Lin are prosecuting the case. The prosecution is the result of an investigation by the DEA with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Marshals Service; Daly City Police Department Redwood City Police Department; San Francisco Police Department; South San Francisco Police Department; California Highway Patrol; San Bruno Police Department; San Mateo Narcotics Task Force; Alameda County Sheriffs Office; Richmond Police Department; San Francisco Sherriff’s Department; and the Long Beach Police Department. The investigation is part of this district’s Organized Drug Enforcement Task Force program.
Atlanta man sentenced to Federal Prison for unlawfully possessing a sawed-off shotgunRead the Press Release
ATLANTA - Edward Tororis Carter has been sentenced to two years and nine months in federal prison for unlawfully possessing a sawed-off shotgun. The defendant sold seven firearms to an undercover federal agent, including the twelve-gauge shotgun.
“Carter indiscriminately sold firearms to any buyer without regard for their potential use,” said U.S. Attorney John Horn. “In his quest to make money, the defendant never considered that the outcome might have been deadly.”
“An individual brazen enough to sell weapons such as a sawed-off shotgun to buyers on the street poses a clear and present danger to our community. This sentence demonstrates ATF’s continued dedication to identify these individuals and remove them from our neighborhoods,” said ATF Special Agent in Charge Wayne Dixie.
According to U.S. Attorney Horn, the charges and other information presented in court: In 2014, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) commenced an investigation of a convicted felon who was attempting to purchase firearms for subsequent sale and distribution. The investigation led federal agents to make several undercover firearms purchases from Carter who conducted the actual hand-to-hand firearms transactions.
Between May 2014 to August 2014, an undercover federal agent purchased seven firearms from Carter, including one sawed-off shotgun with a barrel length of only twelve inches and total length of only twenty-five inches. At the time of the sawed-off shotgun sale, in response to a comment about the gun, Carter said that the firearm was “ready to go,” suggesting that it was ready to be concealed and put to deadly use.
Edward Tororis Carter, 30, of Atlanta, Georgia, has been sentenced to two years and nine months in prison to be followed by three years of supervised release. Carter was convicted on these charges on December 22, 2016, after he pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Ryan M Christian prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Appointment of Special CounselRead the Press Release
Deputy Attorney General Rod J. Rosenstein today announced the appointment of former Department of Justice official and FBI Director Robert S. Mueller III to serve as Special Counsel to oversee the previously-confirmed FBI investigation of Russian government efforts to influence the 2016 presidential election and related matters.
“In my capacity as acting Attorney General, I determined that it is in the public interest for me to exercise my authority and appoint a Special Counsel to assume responsibility for this matter,” said Deputy Attorney General Rosenstein. “My decision is not a finding that crimes have been committed or that any prosecution is warranted. I have made no such determination. What I have determined is that based upon the unique circumstances, the public interest requires me to place this investigation under the authority of a person who exercises a degree of independence from the normal chain of command.”
Deputy Attorney General Rosenstein added, “Each year, the career professionals of the U.S. Department of Justice conduct tens of thousands of criminal investigations and handle countless other matters without regard to partisan political considerations. I have great confidence in the independence and integrity of our people and our processes. Considering the unique circumstances of this matter, however, I determined that a Special Counsel is necessary in order for the American people to have full confidence in the outcome. Our nation is grounded on the rule of law, and the public must be assured that government officials administer the law fairly. Special Counsel Mueller will have all appropriate resources to conduct a thorough and complete investigation, and I am confident that he will follow the facts, apply the law and reach a just result.”
Special Counsel Mueller has agreed to resign from his private law firm in order to avoid any conflicts of interest with firm clients or attorneys.
A copy of the order is attached.
13 Members of Violent Drug Trafficking Organization Charged in Manhattan Federal Court with Narcotics Trafficking and Firearms OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced today the unsealing of an Indictment charging 13 members of a Bronx-based drug trafficking organization with narcotics trafficking and firearms offenses.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, these defendants, many of them members of the violent and dangerous Crips street gang, used gun violence to control their territory in the North Bronx and to flood the streets with heroin, crack cocaine, and cocaine. Together with our partners at the FBI and NYPD, we are committed to making our city safer from drug-related violence.”
FBI Assistant Director in Charge William F. Sweeney Jr. said: “Our most important job as the FBI NY Metro Safe Streets Task Force is to protect the community from dangerous gangs that use threats and violence to maintain control. Gangs impact innocent people’s lives every day, people who often have no way to rid their neighborhoods of the dealers on the street corners. Our agents and investigators from our partner law enforcement agencies will be dogged in our pursuit of these criminals.”
NYPD Commissioner James P. O’Neill said: “Today’s arrests are the latest example of the NYPD’s commitment to combatting narcotics trafficking and violent gun crimes. The dismantling of this crew and the amount of evidence seized represents a significant blow to criminal networks operating in the Bronx. Thanks to FBI and U.S. Attorney in the Southern District—our partners on this and many other cases.”
According to the Indictment[1] unsealed in Manhattan federal court and other publicly filed documents:
The members of the Davidson Avenue drug trafficking organization (the “Davidson Avenue DTO”) controlled narcotics trafficking on Davidson Avenue between West Tremont Avenue and West Burnside Avenue in the Bronx, New York (the “Davidson Block”). From 2012 to May 2017, members of the Davidson Avenue DTO sold heroin, crack cocaine, and cocaine, among other illegal narcotics, on the Davidson Block, and prevented others from doing the same by the threat of violence.
Members of the Davidson Avenue DTO are also members and associates of the “55” and “Wildcard” neighborhood sets of the nationwide Crips street gang. Members of the Davidson Avenue DTO possessed firearms, and planned and engaged in acts of violence to, among other reasons, protect and maintain their drug business. In particular, members of the Davidson Avenue DTO used their firearms in territory battles with members and associates of the rival Bloods gang, as well as during internal disputes over authority within the Crips sets that composed the DTO.
Count One of the Indictment charges OVED VEGA, a/k/a “O,” a/k/a “Mantha,” FRANKIE REYES, a/k/a “Biscuit,” HENRY MEJIA, a/k/a “Bigs,” FELIX CASTILLO, a/k/a “Spyder,” JUSTIN RODRIGUEZ, a/k/a “Poochie,” JESSICA GLENN, a/k/a “J,” GABRIEL CRUZ, a/k/a “Gabe,” ISIAH PEREZ, a/k/a “Izzy,” NOEL PEREZ, a/k/a “Lito,” ALFREDO RODRIGUEZ, a/k/a “Fetti,” MARKEEN JORDAN, a/k/a “Kingo,” STEFAN CROMARTIE, a/k/a “Stef,” and DAYQUAN SALAMAN, a/k/a “Domo Gz,” with participating in a conspiracy to distribute narcotics, including heroin, crack cocaine, and cocaine.
Count Two of the Indictment charges OVED VEGA, a/k/a “O,” a/k/a “Mantha,” FRANKIE REYES, a/k/a “Biscuit,” HENRY MEJIA, a/k/a “Bigs,” FELIX CASTILLO, a/k/a “Spyder,” JUSTIN RODRIGUEZ, a/k/a “Poochie,” JESSICA GLENN, a/k/a “J,” GABRIEL CRUZ, a/k/a “Gabe,” ISIAH PEREZ, a/k/a “Izzy,” NOEL PEREZ, a/k/a “Lito,” ALFREDO RODRIGUEZ, a/k/a “Fetti,” MARKEEN JORDAN, a/k/a “Kingo,” STEFAN CROMARTIE, a/k/a “Stef,” and DAYQUAN SALAMAN, a/k/a “Domo Gz,” with possessing and discharging firearms in furtherance of the narcotics conspiracy charged in Count One.
* * *
In a coordinated operation, 10 defendants were arrested in New York on Tuesday afternoon and earlier today. They will be presented this afternoon in Manhattan federal court. Defendant MARKEEN JORDAN was already in federal custody on a violation of supervised release. Defendant DAYQUAN SALAMAN is in custody on state charges and will be transferred to federal custody. FELIX CASTILLO remains at large. Charts identifying each defendant, the charges, and the maximum penalties are attached to this release.
The case is assigned to U.S. District Judge Loretta A. Preska.
Mr. Kim thanked the FBI and NYPD for their work on the investigation.
The Office’s Violent and Organized Crime Unit is overseeing the case. Assistant U.S. Attorneys Gina Castellano and Hagan Scotten are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Oved Vega et al.
Count
Charge
Defendant
Maximum Penalty
1
Conspiracy to Distribute Narcotics
OVED VEGA,
a/k/a “O,”
a/k/a “Mantha,”
FRANKIE REYES,
a/k/a “Biscuit,"
HENRY MEJIA,
a/k/a “Bigs,”
FELIX CASTILLO,
a/k/a “Spyder,”
JUSTIN RODRIGUEZ,
a/k/a “Poochie,”
JESSICA GLENN,
a/k/a “J,”
GABRIEL CRUZ,
a/k/a “Gabe,”
ISIAH PEREZ,
a/k/a “Izzy,”
NOEL PEREZ,
a/k/a “Lito,”
ALFREDO RODRIGUEZ,
a/k/a “Fetti,”
MARKEEN JORDAN,
a/k/a “Kingo,”
STEFAN CROMARTIE,
a/k/a “Stef,”
DAYQUAN SALAMAN,
a/k/a “Domo Gz,”
Life in prison with a mandatory minimum of 10 years in prison
2
Discharge of Firearms in Furtherance of Narcotics Trafficking
OVED VEGA,
a/k/a “O,”
a/k/a “Mantha,”
FRANKIE REYES,
a/k/a “Biscuit,"
HENRY MEJIA,
a/k/a “Bigs,”
FELIX CASTILLO,
a/k/a “Spyder,”
JUSTIN RODRIGUEZ,
a/k/a “Poochie,”
JESSICA GLENN,
a/k/a “J,”
GABRIEL CRUZ,
a/k/a “Gabe,”
ISIAH PEREZ,
a/k/a “Izzy,”
NOEL PEREZ,
a/k/a “Lito,”
ALFREDO RODRIGUEZ,
a/k/a “Fetti,”
MARKEEN JORDAN,
a/k/a “Kingo,”
STEFAN CROMARTIE,
a/k/a “Stef,”
DAYQUAN SALAMAN,
a/k/a “Domo Gz,”
Life in prison with a mandatory minimum of 10 years in prison
Defendants
Age
Oved Vega
39
Frankie Reyes
22
Henry Mejia
37
Felix Castillo
29
Justin Rodriguez
24
Jessica Glenn
33
Gabriel Cruz
23
Isiah Perez
29
Noel Perez
32
Alfredo Rodriguez
26
Markeen Jordan
24
Stefan Cromartie
18
Dayquan Salaman
25
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tuesday 16 May 2017
Worcester Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to attempting to solicit a minor, who was actually an undercover federal agent, to engage in illicit sexual conduct.
Timothy Biddy, 38, pleaded guilty to one count of attempted interstate travel to engage in illicit sexual conduct and attempted transfer of obscene images to a minor. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for September 11, 2017.
From October 2016 to November 2016, an undercover federal agent posing as a 13-year-old girl began chatting with Biddy through an online text messaging service. During the communications, Biddy proposed to meet the minor to engage in illicit sexual conduct in Sioux Falls, S.D., and graphically described sexual acts he wished to perform with her. He also sent her a video of himself masturbating. Biddy was arrested in November 2016.
The charge of attempted interstate travel to engage in illicit sexual conduct provides 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 $250,000; the charge of attempted transfer of obscene images to a minor provides for a sentence of 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Mathew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the case.
The case was 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/.
Wheeling man convicted of illegal possession of a firearmRead the Press Release
ELKINS, WEST VIRGINIA – Jeffrey Moran, 45, of Wheeling, West Virginia, was convicted today of illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Moran, who had previously been convicted of a felony offenses of drug possession in Ohio County and a misdemeanor conviction of domestic violence, is prohibited from possessing a firearm. He admitted to possessing a .22 caliber pistol, a 12-gauge shotgun and a 20-gauge shotgun in Ohio County, West Virginia in December 2016.
Moran pled guilty to one count of “Unlawful Possession of a Firearm.” He faces up to 10 years incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia Department of Natural Resources investigated.
U.S. District Judge John Preston Bailey presided.
Webster County man sentenced for failing to register as a sex offenderRead the Press Release
WHEELING, WEST VIRGINIA – Timothy A. Yeigh, 28, of Camden on Gauley, West Virginia was sentenced in federal court today to 96 months incarceration for failing to register as a sex offender, Acting United States Attorney Betsy Steinfeld Jividen announced.
Yeigh admitted to traveling in interstate commerce from West Virginia to Florida and failing to update his registration as a sex offender. He entered a guilty plea to one count of “Failure to Register as a Sex Offender” in December 2016.
Assistant U.S. Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. District Judge John Preston Bailey presided.
United States Intervenes in Second False Claims Act Lawsuit Alleging that UnitedHealth Group Inc. Mischarged the Medicare Advantage and Prescription Drug ProgramsRead the Press Release
For the second time in two weeks, the United States has filed a complaint against UnitedHealth Group Inc. (UHG) that alleges UHG knowingly obtained inflated risk adjustment payments based on untruthful and inaccurate information about the health status of beneficiaries enrolled in UHG’s Medicare Advantage Plans throughout the United States, the Justice Department announced today. Today’s action follows the government’s filing of a complaint earlier this month in United States ex rel. Swoben v. Secure Horizons, a related action that also alleges that UHG submitted false claims for payment to the Medicare Program.
“The Department of Justice’s pursuit of this matter illustrates its firm commitment to ensure the integrity of the Medicare Program, including those parts of the program that rely on the services of Medicare Advantage Organizations,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
UHG is the nation’s largest Medicare Advantage Organization, with more than 50 Medicare Advantage and Drug Prescription plans providing healthcare services and prescription drug benefits to millions of Medicare beneficiaries throughout the United States. receives a monthly “risk adjustment” payment from Medicare for each enrolled beneficiary. The risk adjustment payments are based, in significant part, on the health status of the beneficiary, which are reflected by diagnosis that receives from treating physicians and subsequently submits to Medicare for each beneficiary.
The complaint filed today by the United States alleges that UHG knowingly disregarded information about beneficiaries’ medical conditions, which increased the risk adjustment payments UHG received from Medicare. In particular, the lawsuit contends that, for many years, UHG conducted a national Chart Review Program designed to identify additional diagnoses not reported by treating physicians that would increase UHG’s risk adjustment payments. However, UHG allegedly ignored information from these chart reviews showing that hundreds of thousands of diagnoses provided by treating physicians and submitted by it to Medicare were invalid and did not support the Medicare payments it had previously requested and obtained. By ignoring this information, UHG avoided repaying Medicare monies to which it was not entitled.
The complaint also alleges that UHG ignored information about invalid diagnoses from health care providers with financial incentives to furnish such diagnoses. These providers received payments from UHG tied to the amount of payments that UHG received from Medicare, and thus benefitted financially from any increase in Medicare payments resulting from the diagnoses they provided. UHG allegedly knew that its financial arrangements with these providers created a strong incentive for and increased the risk of these providers to report invalid diagnoses. UHG’s own reviews of these providers’ medical records confirmed that the providers were reporting invalid diagnoses. But upon obtaining such evidence, UHG knowingly avoided further efforts to identify invalid diagnoses from these providers and repay Medicare monies to which neither it nor these providers were entitled.
“To ensure that the program remains viable for all beneficiaries, the Justice Department remains tireless in its pursuit of Medicare fraud perpetrated by healthcare providers and insurers,” said Acting U.S. Attorney Sandra R. Brown for the Central District of California. “The primary goal of publicly funded healthcare programs like Medicare is to provide high-quality medical services to those in need – not to line the pockets of participants willing to abuse the system.”
“As the nation’s largest Medicare Advantage Organization, UHG received substantial overpayments based upon untruthful and inaccurate information about the health status of those enrolled in its plans,” said Acting U.S. Attorney James P. Kennedy Jr. for the Western District of New York. “Such fraudulent spending of taxpayer’s dollars will not be tolerated.”
“With approximately one third of Medicare beneficiaries enrolled in Medicare Advantage plans, careful investigation of charges is more important than ever,” said Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “People receiving health care through these programs and taxpayers deserve nothing less.”
The lawsuit was filed by Benjamin Poehling, the former finance director for the UHG group that managed UHG’s Medicare Advantage Plans. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims for government funds, and to receive a share of any recovery. The False Claims Act permits the government to intervene in such a lawsuit, as it has done, in part, in this case.
The government’s intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Western District of New York and the Central District of California and HHS-OIG.
The claims asserted against UHG are allegations only, and there has been no determination of liability.
The case is captioned United States of America ex rel. Benjamin Poehling v. UnitedHealth Group, Inc., No. 16-08697. The Swoben complaint is captioned United States ex rel. Swoben v. Secure Horizons, et al., 09-5013. Both are pending in the United States District Court for the Central District of California.
U.S. Intervenes in Second ‘Whistleblower’ Lawsuit Alleging UnitedHealth Mischarged the Medicare Advantage and Prescription Drug ProgramsRead the Press Release
LOS ANGELES – For the second time in two weeks, the United States this afternoon filed a complaint against UnitedHealth Group Inc. that alleges the company knowingly obtained inflated risk adjustment payments based on untruthful and inaccurate information about the health status of beneficiaries enrolled in UnitedHealth’s Medicare Advantage Plans throughout the United States.
Today’s action follows the government’s filing of a complaint earlier this month in United States ex rel. Swoben v. Secure Horizons, a related action that also alleges UnitedHealth submitted false claims for payment to the Medicare Program.
United Health is the nation’s largest Medicare Advantage Organization, with more than 50 Medicare Advantage and Drug Prescription plans providing healthcare services and prescription drug benefits to millions of Medicare beneficiaries throughout the United States. UnitedHealth receives a monthly “risk adjustment” payment from Medicare for each enrolled beneficiary. The risk adjustment payments are based, in significant part, on the health status of the beneficiary, which are reflected by diagnosis that UnitedHealth receives from treating physicians and subsequently submits to Medicare for each beneficiary.
The complaint filed today by the United States alleges that UnitedHealth knowingly disregarded information about beneficiaries’ medical conditions, which increased the risk adjustment payments the company received from Medicare. In particular, the lawsuit contends that, for many years, UnitedHealth conducted a national Chart Review Program designed to identify additional diagnoses not reported by treating physicians that would increase its risk adjustment payments. However, UnitedHealth allegedly ignored information from these chart reviews showing that hundreds of thousands of diagnoses provided by treating physicians and submitted by it to Medicare were invalid and did not support the Medicare payments it had previously requested and obtained. By ignoring this information, UnitedHealth avoided repaying Medicare monies to which it was not entitled.
The complaint also alleges that UnitedHealth ignored information about invalid diagnoses from health care providers with financial incentives to furnish such diagnoses. These providers received payments from UnitedHealth tied to the amount of payments that UnitedHealth received from Medicare, and thus benefitted financially from any increase in Medicare payments resulting from the diagnoses they provided. UnitedHealth allegedly knew that its financial arrangements with these providers created a strong incentive for and increased the risk of these providers to report invalid diagnoses. UnitedHealth’s own reviews of these providers’ medical records confirmed that the providers were reporting invalid diagnoses. But upon obtaining such evidence, UnitedHealth knowingly avoided further efforts to identify invalid diagnoses from these providers and repay Medicare monies to which neither it nor these providers were entitled.
“To ensure that the program remains viable for all beneficiaries, the Justice Department remains tireless in its pursuit of Medicare fraud perpetrated by healthcare providers and insurers,” said Acting United States Attorney Sandra R. Brown. “The primary goal of publicly funded healthcare programs like Medicare is to provide high-quality medical services to those in need – not to line the pockets of participants willing to abuse the system.”
“The Department of Justice’s pursuit of this matter illustrates its firm commitment to ensure the integrity of the Medicare Program, including those parts of the program that rely on the services of Medicare Advantage Organizations,” said Acting Assistant Attorney General Chad A. Readler of the Department’s Civil Division.
“With approximately one-third of Medicare beneficiaries enrolled in Medicare Advantage plans, careful investigation of charges is more important than ever,” said Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General. “People receiving health care through these programs and taxpayers deserve nothing less.”
The lawsuit was filed by Benjamin Poehling, the former finance director for the group that managed UnitedHealth’s Medicare Advantage Plans. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims for government funds, and to receive a share of any recovery. The False Claims Act permits the government to intervene in such a lawsuit, as it has done, in part, in this case.
The case is captioned United States of America ex rel. Benjamin Poehling v. UnitedHealth Group, Inc., CV16-8697. The Poehling and Swoben cases are pending in the United States District Court for the Central District of California.
This matter was investigated by the United States Attorney’s Office in Los Angeles, the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Western District of New York, and the U.S. Department of Health and Human Services’ Office of Inspector General.
The government’s intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The claims asserted against UnitedHealth are allegations only, and there has been no determination of liability.
Two South Florida Residents Charged with Shooting at a U.S. Postal Service Letter CarrierRead the Press Release
Two South Florida residents are charged with shooting at a U.S. Postal Service Letter Carrier during the performance of his official duties.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Antonio J. Gomez, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, Juan J. Perez, Director, Miami-Dade Police Department (MDPD) made the announcement.
Jacoby Myrick, 19, of Miami, and Marques Brown, 19, of Miami, are charged in a two count indictment with Assaulting a Federal Employee, in violation of Title 18, United States Code, Section 111(a)(1) and (b), and Discharging a Firearm in Furtherance of a Crime of Violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii). Brown was arraigned today before U.S. Magistrate Judge William C. Turnoff. Brown was ordered detained pending trial. Myrick is pending an appearance before a U.S. Magistrate Judge.
According to the court record, including the indictment, on March 2, 2017, a U.S. Postal Service Letter Carrier was delivering mail at a residence in Southwest Miami-Dade County, as the home was being burglarized. Defendants Myrick and Brown allegedly fled the scene of the burglary in a single vehicle. While driving from the crime scene, one of the defendants shot at the letter carrier. The letter carrier was unharmed.
Mr. Greenberg commended the investigative efforts of the USPIS and MDPD. This case is being prosecuted by Assistant United States Attorney Beranton J. Whisenant, Jr.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov.
Two Men Plead Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that two men, Connor Dempsey, 20, and Joel C. Jacob, 21, both of Buffalo, NY, pleaded guilty before U.S District Judge Elizabeth Wolford. Dempsey and Jacob each pleaded guilty to conspiracy charges, which carry a maximum penalty of 20 years in prison and a $1,000,000 fine. Dempsey pleaded to conspiring to maintain a drug involved premises, while Jacob pled to conspiring to possess with intent to distribute MDMA, also known as “Molly.”
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that on August 17, 2016, defendant Jacob signed for a parcel addressed to him during a controlled delivery by the U.S. Postal Inspection Service. The delivery was made to Jacob’s residence on Campus Drive in Buffalo, a residence he shared with Dempsey. The package, which was ordered over the internet using bitcoins, was sent from Munchen, Germany and contained over 180 grams of MDMA.
During a search of the Campus Drive apartment, officers recovered quantities of: marijuana; LSD; cocaine; THC; Xanax; and ketamine. They also found a digital scale, baggies, empty capsules, other drug paraphernalia, and another mail parcel addressed to a third co-defendant.
The pleas are the result of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division.
Sentencing is scheduled for August 16, 2017, at 9:30 a.m. before Judge Wolford.
Two KC Men Plead Guilty to $1.2 Million Oxycodone ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men pleaded guilty in federal court today to their roles in a $1.2 million conspiracy to distribute oxycodone that was obtained by using forged and fraudulent prescriptions.
Gary D. Dickinson, also known as “James DeJong,” 50, and Douglas R. Parker, 51, both of Kansas City, pleaded guilty in separate appearances before U.S. Chief District Judge Greg Kays to the charge contained in a Feb. 2, 2016, federal indictment.
By pleading guilty today, Dickinson and Parker admitted they participated in a conspiracy that lasted from June 2013 to January 2016 to distribute, and to possess with the intent to distribute, oxycodone. Conspirators obtained prescription-quality paper commonly used by authorized health care providers to write prescriptions. They also obtained the DEA registration numbers of health care providers, which they used to prepare fraudulent prescriptions for oxycodone.
Conspirators took the false prescriptions to pharmacies in Kansas City metropolitan area and elsewhere. They commonly sold the oxycodone 30mg pills for between $15 to $25 per pill.
Following several undercover purchases of fraudulent prescriptions from Dickinson, law enforcement officers executed a search warrant at Dickinson’s residence on Dec. 23, 2013. Detectives recovered several prescription pill bottles and drug paraphernalia (including pipes, syringes and scales). They also recovered two laptop computers, false prescriptions, blank prescription paper, contact lists and other documentation, including what appeared to be a written instructions on what to say if a pharmacist called to confirm the validity of a prescription.
Dickinson said he obtained false prescriptions from co-defendant Robert G. Joy, also known as “Bear,” 34, of Kansas City, Mo. Dickinson said he filled prescriptions for Joy, then gave him the Oxycodone in exchange for $175 to $225. On Dec. 26, 2013, Dickinson was arrested while attempting to fill a false prescription at The Drug Store in Odessa, Mo. Dickinson admitted that he passed, and attempted to pass, fraudulent prescriptions at several more locations in the months following his arrest. Dickinson was arrested on several occasions, including while attempting to pass more fraudulent prescriptions and after a car stop while he was driving a stolen truck and in possession of 65 Oxycodone pills, 6.5 grams of cocaine and .85 grams of methamphetamine.
On May 19, 2014, law enforcement officers executed a search warrant at Dickinson’s room at the Argosy Hotel. Officers found numerous items associated with the manufacture of false prescriptions, including a laptop computer with stored templates for prescriptions and checks, over 200 sheets of blank prescription quality paper, false prescriptions and other items.
During Dickinson’s involvement in the conspiracy, he was aware of at least 60 grams of Oxycodone being fraudulently obtained for distribution. Under the terms of today’s plea agreement, Dickinson must forfeit to the government a money judgment in an amount to be determined by the court at sentencing, which represents his share of proceeds from the criminal activity.
Parker was arrested on Dec. 17, 2013, while attempting to fill a false prescription at the Drexel Pharmacy in Drexel, Mo. Parker told investigators he received the prescription from Dickinson. Parker admitted he began filling false prescriptions for Dickinson about two weeks earlier, bringing the pills back to Dickinson and being paid $150. Parker was directly involved in at least 21.6 grams of Oxycodone being fraudulently obtained for distribution. Under the terms of today’s plea agreement, he must forfeit to the government $14,400, which represents the proceeds of his criminal activity.
Dickinson and Parker are among 11 defendants to plead guilty in this case. Joy, Katherine E. Beaven, 33, Timothy D. Kroenke, 27, and Nicholas Destefano, 38, all of Kansas City, Mo., Christopher J. Neale, 28, of Harrisonville, Mo.; and Thomas Poindexter, 42, of Olathe, Kan., have pleaded guilty and await sentencing. Co-defendants Jermaine C. Brooks, 30, Michelle C. Newton, 46, and Felicita A. San Miguel, also known as “Cassandra Jasso,” “Susan Hernandez,” and “Sarah Buckner,” 38, all of Kansas City, Mo., pleaded guilty and have been sentenced.
Under federal statutes, Dickinson and Parker are each subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the Missouri State Highway Patrol, and the police departments of Riverside, Blue Springs, Independence, Kearney, Odessa, Nevada, Higginsville, Drexel Lee’s Summit and Butler.
Stamford Man Sentenced to 3 Years in Prison for Federal Gun OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CALEEB BROWN, 26, of Stamford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 36 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on October 8, 2015, Stamford Police searched BROWN’s residence and seized a .22 caliber handgun, a 6.35 mm pistol, 14 rounds of .22 caliber ammunition, a quantity of heroin and items used to package narcotics for distribution.
Prior to October 2015, BROWN had sustained multiple felony convictions for possessing with intent to distribute narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
BROWN has been in federal custody since February 10, 2016. On November 3, 2016, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Smith County Constable Guilty of Federal Tax ViolationsRead the Press Release
TYLER, Texas – A long-time Smith County Precinct One Constable has pleaded guilty to federal criminal tax violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Henry Phillip Jackson, 65, of Tyler, Texas pleaded guilty to four counts of willful failure to file federal income tax returns today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, Jackson, who has served as an elected constable since 1999, received income from 2010-2013 that required him to file federal income tax returns for those years. However, Jackson failed to file those returns and now owes more than $160,000 in taxes.
Under federal statutes, Jackson faces up to one year in federal prison for each count at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Frank Coan.
Six People Sentenced in $172,000,000 Insurance Fraud Scheme Court Ordered a Total of over $130,000,000 in RestitutionRead the Press Release
Six defendants were recently sentenced to prison for their participation in a massive insurance fraud scheme that resulted in federal judicial orders for more than $130 million in restitution.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael J. Satz, Broward State Attorney, announced the sentencing of six of sixteen defendants who were previously charged in a five-count criminal Information.
A criminal Information charged sixteen defendants for their participation in a complex fraud scheme regarding the manufacture and distribution of compounded medications. The fraud involved material misrepresentations to health insurance providers and illegal payments to coconspirators and medical professionals, including physicians. The fraud generated in excess of $172,000,000 in criminal proceeds for the members of the criminal enterprise.
All sixteen defendants have pled guilty for their participation in the fraudulent scheme. Most recently, six defendants were sentenced to prison by United States District Judge Daniel T. K. Hurley, for their roles in the insurance fraud. The six defendants received the following sentences: Rhett Gordon, 36 months’ imprisonment; Brett Nadel, 36 months’ imprisonment; Lisa Goldberg, 46 months’ imprisonment; Dr. John Johnson, 60 months’ imprisonment; Frederick Thomas Giampa, 30 months’ imprisonment and Timothy Clinton, 60 months’ imprisonment. In relation to the fraudulent scheme, the Court has ordered restitution totaling in excess of $130 million dollars. In addition, the defendants have forfeited over $30 million in assets.
According to the court record, the defendants participated in a two-year conspiracy, which they used various business entities, including Numed Care, LLC, Clinical Corp, LLC, RX of Boca, and American Custom Compound Pharmacy, to perpetrate a complex fraud on numerous health care insurance providers. The defendants prepared medications in bulk quantities, which they alleged to be compounded medications for specific individualized patient needs. The defendants falsely represented to the health insurance providers that these medications were prepared in limited quantities for individual patients and were exempt from FDA inspection.
The health insurance providers compensated the defendants for the alleged costs of the ingredients for such medications. The defendants concealed from the health insurance providers that the defendants paid illegal kickbacks to physicians for the issuance of the compounded medications. The defendants unlawfully provided the physicians with pre-printed prescription pads. In order to facilitate the fraudulent scheme, the defendants used mass-marketing techniques and call centers, which made material misrepresentations in order to solicit potential patients. defendants induced owners of failing pharmacies throughout the United States to participate in the scheme in order to perpetuate the fraud.
Mr. Greenberg commended the investigative efforts of the DEA, IRS-CI, and the Broward State Attorney’s Office in connection with the investigation of this matter. This case is being prosecuted by Assistant U.S. Attorneys Paul F. Schwartz and Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov