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Thursday 11 May 2017
Five Individuals Convicted for Federal Conspiracy to Commit KidnappingRead the Press Release
TYLER, Texas – A 22-year-old Zwolle, LA man has been sentenced to federal prison for his part in a kidnapping conspiracy scheme targeting individuals in the Eastern District of Texas and surrounding area, announced Acting U.S. Attorney Brit Featherston today
Gary Cutright pleaded guilty on Jan. 10, 2017, to conspiracy to commit kidnapping and was sentenced to 156 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, between July 2014 and January 2016, Cutright conspired with several individuals to commit kidnapping, robberies and assaults throughout the Eastern District of Texas and the Western District of Louisiana. Specifically, Cutright and his codefendants are responsible for a December 2015 incident in which an individual was kidnapped in Louisiana and brought to Carthage, Texas. Defendants were also responsible for a March 2016 incident in which an individual was kidnapped from Longview, Texas.
Other defendants convicted in the conspiracy include:
Cory Carnell Mitchell, 29, of Tenaha, Texas pleaded guilty on Jan. 9, 2017, to conspiracy to commit kidnapping and was sentenced to 262 months in federal prison by U.S. District Judge Ron Clark on April 5, 2017.
Montonious Robinson, 22, of Shreveport, LA, pleaded guilty on Ja. 10, 2017, to conspiracy to commit kidnapping and was sentenced to 168 months in federal prison on May 4, 2017 by U.S. District Judge Thad Heartfield.
Christopher Douglas, 33, of Logansport, LA, pleaded guilty on Apr. 6, 2017 in the Western District of Louisiana, to conspiracy to commit kidnapping and will be sentenced at a later date.
Quannell Newton, 37, of Many, LA, pleaded guilty on Nov. 16, 2016, to conspiracy to commit kidnapping and was sentenced to 135 months in federal prison by U.S. District Judge Ron Clark on Feb. 21, 2017.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, Explosives (ATF) and the Texas Department of Public Safety – Criminal Investigation Division – Tyler (DPS-CID). The United States Marshals Service (USMS), Federal Bureau of Investigation (FBI), Lufkin Police Department, Nacogdoches Police Department, Center Police Department, Carthage Police Department, DeSoto Parrish Sheriff’s Department, Sabine Parrish Sheriff’s Department and the Panola County Sheriff’s Department assisted in the execution of the arrest warrants. The cases are being prosecuted by Assistant U.S. Attorney Paul A. Hable in the Eastern District of Texas and by Assistant U.S. Attorney James Cowles in the Western District of Louisiana.
Federal Jury Convicts Albuquerque Woman on Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict yesterday afternoon finding Albuquerque resident, Sandra Cook, 53, guilty on methamphetamine trafficking charges after a three-day trial. Acting U.S. Attorney James D. Tierney, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Sheriff Manuel Gonzales, III, of the Bernalillo County Sheriff’s Office (BCSO), announced the verdict.
Cook was arrested on Feb. 24, 2016, on an indictment charging her with possessing methamphetamine with intent to distribute on June 30, 2015. The indictment was superseded on Feb. 28, 2017, and added a second methamphetamine trafficking charge alleging that Cook also possessed methamphetamine with intent to distribute on Feb. 24, 2016. According to the superseding indictment, Cook committed the crimes in Bernalillo County, N.M.
Cook’s trial began on May 8, 2017, and concluded yesterday afternoon when the jury returned a guilty verdict against Cook on both counts of the superseding indictment.
The testimony at trial established that on June 30, 2015, BCSO officers executed a search warrant at Cook’s residence where they seized multiple bundles of methamphetamine weighing approximately 3.2 kilograms (7.2 pounds) and over $22,000 in cash. Following the filing of charges against her based on the methamphetamine seizure, Cook evaded capture by law enforcement and the BCSO and HSI conducted an investigation to find her
Other evidence introduced during the trial included the testimony of HSI agents establishing that in Feb. 2016, HSI used a court-authorized GPS tracker and data from Cook’s cell phone to locate Cook at a residence in Albuquerque. On Feb. 24, 2016, agents executed a search warrant at that residence where they located Cook standing near a kitchen table on which an open tool bag was sitting. The tool bag contained her driver’s license and a bag of 100% pure methamphetamine weighing approximately 441.6 grams.
The jury deliberated approximately one hour before returning its guilty verdict.
Cook was remanded into custody after the verdict was returned and will remain detained pending a sentencing hearing, which has yet to be scheduled. At sentencing, Cook faces a mandatory minimum penalty of ten years and a maximum of life in federal prison.
This case was investigated by HSI and BCSO and is being prosecuted by Assistant U.S. Attorneys Alexander M. Uballez and Peter J. Eicker.
Federal Indictment Charges Two U.S. Citizens and Four Chinese Nationals with Marriage Fraud SchemeRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, announced the filing of an indictment against two U.S. citizens and four Chinese nationals on charges arising out of an alleged scheme to obtain immigration status for foreign nationals through fraudulent marriages.
The indictment charges Yi Lee, 44, a naturalized U.S. citizen who had been residing in Santa Fe, N.M., Santiago Aveles, 31, of Las Cruces, N.M., and Chia-Jung Chang, 39, Dan Zheng, 32, Lian Xiang Deng, 42, and Xiao-Yin Le, 50, who are Chinese nationals illegally in the United States, with participating in a conspiracy to commit marriage fraud. It also charges Aveles and Zheng with committing marriage fraud for the purpose of evading the federal immigration laws.
Aveles, Chang, Zheng, and Deng, who were arrested last week, were arraigned in federal court in Las Cruces, N.M., this afternoon. Each entered a not guilty plea during this afternoon’s arraignment hearings. The three Chinese nationals were ordered detained pending trial and Aveles was released under pretrial supervision and other conditions of release. The fifth and sixth defendants, Yi Lee and Xiao-Yan Le, have yet to be arrested and are considered fugitives.
The indictment alleges that from June 2016 through March 2017, the six defendants conspired to obtain immigration status for foreign nationals by committing marriage fraud. The scheme allegedly involved having utilizing U.S. citizens enter into fraudulent marriages with foreign nationals in return for financial gain. Lee allegedly facilitated the conspiracy by arranging meetings between foreign nationals and U.S. citizens in order to obtain marriage licenses, working permits and green cards for the foreign nationals who paid Lee and the U.S. citizens. According to the indictment, Lee allegedly attempted to arrange fraudulent marriages between certain of his co-defendants and undercover law enforcement agents.
If convicted of the charges in the indictment, each of the defendants faces a maximum penalty of five years of imprisonment on the conspiracy charge, and Avelez and Zheng each face a maximum penalty of five years of imprisonment on the marriage fraud charge. Charges in indictments are merely accusations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of HSI and is being prosecuted by Assistant U.S. Attorney Dustin C. Segovia of the U.S. Attorney’s Las Cruces Branch Office.
Father and Son Pair Charged with Gunpoint Robbery and Kidnapping in Bronx Home InvasionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Ashan M. Benedict, the Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), announced today the filing of a criminal complaint charging JORDANY FRIAS-ROSARIO, a/k/a “Julio,” and PEDRO CASTILLO, a/k/a “Juan Antonio Frias,” with robbery, kidnapping, and use of a firearm during the commission of a crime of violence. As alleged, FRIAS-ROSARIO and CASTILLO committed a home invasion robbery in the Bronx on March 30, 2017, and forcefully tied up two victims, including a 7-year-old boy with autism. FRIAS-ROSARIO was arrested in Utica, New York, this morning and will be presented this afternoon before the Honorable Thérèse Wiley Dancks. CASTILLO is still at large, and the general public is encouraged to contact Crime Stoppers at 800-577-TIPS (800-577-8477) with any information on CASTILLO’s whereabouts.
Acting Manhattan U.S. Attorney Joon H. Kim said: “The defendants are charged with a callous crime of violence. They allegedly terrorized two people at gunpoint during a home invasion robbery, tying up a 7-year-old autistic child and pistol-whipping an adult. We commend our partners at the ATF and NYPD for the exemplary work that led to the charges today.”
ATF SAC Ashan M. Benedict said: “The defendants are alleged to have brazenly and viciously committed a gunpoint home invasion, during which one victim was tied up and violently assaulted in the presence of the second victim, an autistic child, who was also tied up. Such acts of violence and depravity will not be tolerated, and the defendants will now face justice for their actions. I would like to express my gratitude to the ATF Special Agents and NYPD Detectives assigned to the ATF SPARTA Task Force for their hard work throughout this investigation, and the many others in which they are successfully targeting armed robbers for arrest and prosecution. I would also like to thank the United States Attorney’s Office for their continued partnership and dedication in pursuing the prosecution of violent offenders.”
According to the Complaint[1] filed in Manhattan federal court:
On March 30, 2017, JORDANY FRIAS-ROSARIO, a/k/a “Julio,” and PEDRO CASTILLO, a/k/a “Juan Antonio Frias,” committed a home invasion robbery in the Bronx, New York (the “Robbery”). During the course of the Robbery, FRIAS-ROSARIO and CASTILLO brandished a firearm and forcefully tied up two victims (“Victim-1” and “Victim-2”). Victim-1, a 66-year-old man, was pistol whipped, leaving a deep gash over his left ear. Victim-2, a 7-year-old boy with autism, was also tied up during the course of the Robbery.
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FRIAS-ROSARIO, 24, of the Bronx, was arrested this morning. CASTILLO, 56, also of the Bronx, is still at large and the general public is encouraged to call Crime Stoppers with any information on CASTILLO’s whereabouts. FRIAS-ROSARIO and CASTILLO are each charged with robbery, kidnapping, and using a firearm during the commission of a crime of violence; the charge carries a maximum sentence of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the efforts of the NYPD and ATF in this investigation, specifically the Bronx Robbery Squad and the Joint Robbery Task Force.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jacob Warren and Michael Longyear are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Elkins man guilty of manufacturing and using counterfeit moneyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony Francis Silvester, III, 38, of Elkins, West Virginia, was convicted today of making and possessing counterfeit money, Acting United States Attorney Betsy Steinfeld Jividen announced.
Silvester pled guilty to one count of “Uttering Counterfeit Obligations and Securities.” He admitted to passing a counterfeit bill in August 2016 at a business in in Elkins, West Virginia.
Silvester faces up to 20 years incarceration and a $250,000 fine.
Assistant U.S. Attorney Sarah W. Montoro is prosecuting the case on behalf of the government. The United States Secret Service, the West Virginia State Police, and the Elkins Police Department are investigating the case.
U.S. Magistrate Judge Michael John Aloi presided.
Eagle Butte Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession with Intent to Distribute a Controlled Substance and Concealing a Person from Arrest.
Braxtyn Melecca Jo Garreau, age 21, was indicted on April 12, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 21, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance is up to 20 years in custody and/or a $1,000,000 fine, and a lifetime of supervised release. The maximum penalty upon conviction for Concealing a Person from Arrest is up to 5 years in custody and/or a $250,000 fine, and 3 years of supervised release. Both charges require a payment of $100 to the Federal Crime Victims Fund and restitution may also be ordered.
The Indictment alleges that between January of 2014 and April of 2017, Garreau knowingly and intentionally conspired with others to distribute methamphetamine, a Schedule II controlled Substance, within the district of South Dakota. The Indictment also alleges that Garreau possessed methamphetamine with the intent to distribute it on February 23, 2017, in Eagle Butte. The Indictment further alleges that between November 22, 2016 and February 6, 2017, Garreau harbored and concealed Emmett Traversie, so as to prevent his discovery and arrest on an alleged bond violation.
The charges are merely accusations and Garreau is presumed innocent until and unless proven guilty.
This case is being investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Garreau was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
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Eagle Butte Female Sentenced for Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, female convicted of two counts of Distribution of a Controlled Substance was sentenced on April 17, 2017, by U.S. District Judge Roberto A. Lange.
Ree Amber Eagle Staff, age 34, was sentenced to 16 months in custody and 4 years of supervised release on each count, to run concurrently, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $200.
Eagle Staff was indicted by a federal grand jury on August 16, 2016. She pled guilty on January 30, 2017.
On July 28 and 29, 2016, in Eagle Butte, Eagle Staff distributed methamphetamine, a Schedule II Controlled Substance, to other persons.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Eagle Staff was immediately turned over to the custody of the U.S. Marshals Service.
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Dupree Woman Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, woman convicted of two counts of Distribution of a Controlled Substance was sentenced on April 24, 2017, by U.S. District Judge Roberto A. Lange.
Skyla Rae Alyce Dupris a/k/a Skyla Dupree, age 25, was sentenced to 6 months in custody and 3 years of supervised release on each count, to run concurrently, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $200.
Dupris was indicted by a federal grand jury on December 14, 2016. She pled guilty on February 7, 2017.
On June 23, 2016 and July 21, 2016, in Eagle Butte, Dupris knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, to other persons.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Dupris was immediately turned over to the custody of the U.S. Marshals Service.
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District of Columbia Man Sentenced to 10 Years in Federal Prison for Sex Trafficking of MinorsRead the Press Release
Greenbelt, Maryland – On May 10, 2017, U.S. District Judge George J. Hazel sentenced Adarryl Hayes, a/k/a Prince, a/k/a Crummy, age 23, of Washington D.C., to 10 years in prison, followed by 10 years of supervised release, for sex trafficking of two minors.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, from February 1, 2016 through February 24, 2016, Hayes recruited a 14-year old minor (Victim 1) and a 17-year old minor (Victim 2) to engage in commercial sex acts. Hayes used a website to advertise prostitution services for both victims.
Hayes directed Victim 1 and Victim 2 to communicate with clients and potential clients that called. Hayes would rent and transport the victims to hotels throughout Maryland to meet with their clients. After each date, the victims gave the prostitution proceeds to Hayes. Hayes did not allow Victim 1 to retain any of the proceeds, but would purchase condoms, food, clothing, toiletries, and other necessities for Victim 1.
On February 24, 2016, an undercover officer with Prince George’s County Police Department contacted the telephone number on the advertisement for Victim 1. The undercover officer and Victim 1 agreed to a price. Victim 1 directed the undercover officer to a hotel in Capitol Heights, Maryland. After asking if Victim 1 was alone, Victim 1 let the undercover officer know that Victim 2 would also be in attendance; the undercover officer agreed for a price for both victims. After arriving at the hotel room and Victim 1 accepting the money, the undercover officer identified himself as a police officer.
Immediately following the undercover operation, Hayes was located in the hotel parking lot where he was placed under arrest.
Acting United States Attorney Stephen M. Schenning commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.
District Man Sentenced to 10-Year Prison Term for Shooting at People and Vehicles in Northwest WashingtonRead the Press Release
WASHINGTON – Marc S. Jeffers, 23, of Washington, D.C., has been sentenced to 10 years in prison on charges stemming from an incident in which he randomly shot a gun at vehicles and passersby on a busy street in Northwest Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jeffers pled guilty in March 2017, in the Superior Court of the District of Columbia, to charges of assault with a dangerous weapon and possession of a firearm during a crime of violence. The plea, which was subject to the Court’s approval, called for a 10-year prison term. The Honorable Hiram E. Puig-Lugo accepted the plea on May 10, 2017, and sentenced Jeffers accordingly. Following his prison term, Jeffers will be placed on a period of supervised release.
According to the government’s evidence, on Sept. 7, 2016, shortly before 1:45 p.m., Jeffers was walking on Georgia Avenue NW, headed towards Randolph Street, while armed with a semi-automatic handgun. Jeffers came out of a restaurant at Georgia Avenue and Quincy Street NW and shot the handgun three times into the ground. He then pointed the gun at two people who exited the restaurant immediately before him and shot at them.
Jeffers then continued to walk on Georgia Avenue, pointing the gun at people on the street and then at a bus. He also shot his handgun at a four-door sport utility vehicle. As the motorist in the SUV was driving north in the 3700 block of Georgia Avenue, he heard several gunshots coming from his left side. The motorist felt his vehicle being hit and drove away. When he eventually flagged down officers to report what had happened, the motorist saw that a bullet struck the rear passenger door of his car, causing damage to the door.
Jeffers then walked into the middle of the street from the east side of the 3800 block of Georgia Avenue and fired several shots at another Metrobus that was traveling on the block. Several riders on the bus reported seeing Jeffers continue to walk northbound on Georgia Avenue as he fired the handgun. Several riders got on the floor of the bus to take cover.
An officer with the Metropolitan Police Department (MPD) was in a Safeway in the 3800 block of Georgia Avenue when multiple people came into the store to report that a man was walking northbound on Georgia Avenue and shooting a handgun at passersby. The officer left the Safeway on his mountain bike and saw Jeffers across the street. The officer approached Jeffers, got off his mountain bike, took cover behind a sports utility vehicle parked on the west side of the street, and ordered Jeffers to drop his firearm. Jeffers ignored the commands and continued along Georgia Avenue. Jeffers then pointed his handgun north on Georgia Avenue and began shooting at an unknown subject. Once Jeffers began shooting, the officer left his cover behind the sports utility vehicle and approached him. According to the government’s evidence, the officer discharged his service weapon in an attempt to disarm Jeffers, who briefly fell to his knees, but did not drop the handgun. The officer continued to order Jeffers to drop the handgun, but Jeffers got up off his knees, and continued to walk north on Georgia Avenue. Jeffers then lifted the gun up to his chest level, at which point the officer discharged his weapon again. Jeffers was hit twice by the officer’s gunfire and fell to the ground.
In announcing the sentence, U.S. Attorney Phillips and Chief Newsham expressed appreciation for the work of those who handled the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Debra McPherson and Lashaune Briggs. Finally, they commended the work of Assistant U.S. Attorney Sonali D. Patel, who investigated and prosecuted the case.
District Man Pleads Guilty to Three Armed Robberies of Commercial Establishments in Washington, D.C.Read the Press Release
WASHINGTON – Anthony Burns, 23, of Washington, D.C., pled guilty today to federal conspiracy, robbery, and weapons offenses for a series of armed robberies in late 2015 that targeted commercial businesses, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Burns pled guilty in the U.S. District Court for the District of Columbia to one count of conspiracy to interfere with interstate commerce by robbery, three counts of interference with interstate commerce by robbery, and one count of using, carrying, brandishing and possessing a firearm during a crime of violence. He is to be sentenced on July 25, 2017, by the Honorable Amy Berman Jackson. He faces a statutory maximum of 20 years in prison on each of the conspiracy and robbery charges, and a possible life prison term for the weapons offense. Under federal sentencing guidelines, he faces a likely range of 130 to 141 months in prison and a potential fine of $15,000 to $150,000. He also is subject to orders of restitution and forfeiture.
Burns remains held without bond pending sentencing. Three other defendants have pled guilty to federal charges related to their roles in the armed robberies, which targeted stores in Washington, D.C. and Maryland. They include Gregory Hull, 23, of Suitland, Md; Breyon Lee, 23, and Lee’s brother, Bradley Lee, 21, both of Washington, D.C. All are awaiting sentencing.
According to the government’s evidence, on Nov. 27, 2015, at approximately 2 p.m., store surveillance video captured Burns, Hull, and an unidentified co-conspirator, who were masked and armed with handguns, as they robbed the City Beats shoe store, in the 3000 block of Martin Luther King, Jr. Avenue SE. The men ordered everyone in the store to get on the floor. Burns approached a store employee with his gun drawn and demanded that the employee open the cash register. Burns, Hull, and their accomplice fled with approximately $1,594 in stolen cash and several pairs of stolen shoes.
According to the government’s evidence, on Dec. 13, 2015, at approximately 4:40 a.m., Burns and an unidentified co-conspirator entered the 7-Eleven convenience store in the 4600 block of South Capitol Street SW. Surveillance video showed that both men tried to conceal their identities using masks and hooded garments, and Burns was armed with a handgun. Burns pointed a gun at a store employee’s head, grabbed him behind the collar, and forced him behind the store counter. Burns demanded money from the cash register and a safe underneath the counter. When the employee was unable to open the register and safe, Burns struck him on the back of his head with the gun, causing a laceration. A second employee came out of the bathroom, and Burns’s accomplice forced the employee to open the cash registers. Burns and his accomplice grabbed an undetermined amount of cash from the registers and several packs of cigarettes and cigars.
About 40 minutes after the 7-Eleven robbery, government evidence shows, Burns and the accomplice entered another 7-Eleven store in the 900 block of Eastern Avenue NE, again wearing masks and hooded garments. Burns jumped over the counter and pointed the gun at the cashier, demanding money from the cash register. The employee opened both registers. Burns and his accomplice grabbed an undetermined amount of cash and fled.
Burns was arrested pursuant to an arrest warrant on December 29, 2015.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Acting Chief Newsham commended the actions of those who worked on the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Margaret Barr, Paralegal Specialist Catherine O’Neal, and Legal Assistant Peter Gaboton. Finally, they commended the work of Assistant U.S. Attorney Jamila Hodge, who is prosecuting the case.
Denmark Man Sentenced for Possessing a FirearmRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Sidney Davis, age 46, of Denmark, South Carolina was sentenced today in federal court in Columbia, South Carolina, for possessing a firearm after being convicted of a felony, a violation of 18 U.S.C. § 922(g)(1) and possession of a stolen firearm, a violation of 18 U.S.C. § 922(j). United States District Judge J. Michelle Childs of Columbia sentenced Davis to 45 months incarceration followed by 2 years of supervised release and a special assessment of $200.00.
Evidence presented at the change of plea hearing established that on September 13, 2014, a 2-year old child died as a result of a single gunshot wound to his chest. The child was shot at Davis’ home. According to Davis, several children had entered his home through the unlocked back door. Davis stated he often provided food for the children that live nearby so they were frequently in and out of his home. The victim turned on the water faucet where the washing machine would have been. The other children left the home but the victim stayed behind. Davis was cleaning up the water on the floor when he heard a shot. He ran to the back bedroom and found the victim lying on the floor with a gunshot wound to the chest. Davis had left a stolen .40 caliber Smith and Wesson pistol on his bed. Davis picked up the child and ran next door where the child lived. Davis believed the pistol was stolen and kept it for protection. Davis had prior convictions for burglary and arson, which prevented him from possessing a firearm.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, South Carolina Law Enforcement Division, Bamberg County Sheriff's Department and Denmark Police Department. Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.
This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
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Defense Attorney and Client Charged with Conspiracy to Smuggle Drugs into Anchorage JailRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a criminal defense attorney and her client have been charged for allegedly smuggling drugs into the State of Alaska Department of Corrections (DOC) Anchorage Correctional Complex (ACC) for distribution to inmates.
Kit Lee Karjala, 54, a criminal defense attorney in Anchorage, and her client, Christopher Brandon Miller, aka “Mellow,” 33, who is currently an inmate at ACC, have both been named in a criminal complaint that charges each of them with three federal crimes: (1) drug conspiracy; (2) distribution of, and possession with intent to distribute, controlled substances; and (3) providing and possessing contraband in a prison.
According to the affidavit filed in support of the criminal complaint, beginning as early as June 2016 and no later than December 2016, and continuing until the present, Karjala allegedly passed drugs to co-conspirator inmates, including Miller, during in-person attorney-client visits. Karjala represented Miller, but was not counsel of record for the other inmates with whom she allegedly conspired. Because Karjala represented to DOC that these meetings were allegedly professional visits, DOC permitted her to meet with Miller and the other co-conspirator inmates in a room with no physical barriers separating them. More specifically, after Karjala handed a package of drugs to the co-conspirator inmate during the visit, the inmate would hide the drugs inside his body, while Karjala attempted to shield the inmate from the view of DOC security cameras and/or personnel. When the inmate and Karjala concluded their meeting, the inmate transported the drugs inside his body back to his jail cell. The inmate later distributed the drugs to other ACC inmates for profit.
For example, as further detailed in the complaint, on May 2, 2017, Karjala requested a professional visit with Miller. During the meeting, Karjala allegedly passed drugs to Miller, who in turn hid them in his body. Per DOC procedure, Miller was subjected to dry-cell protocol from May 2 until May 5, 2017, during which Miller excreted multiple foreign objects, including a mixture and substance containing a distributable quantity of heroin, as well as suspected Suboxone strips.
The complaint details financial deposits between inmates that support the allegations of drug distribution, as well as transfers of money to accounts associated with Karjala from a co-conspirator inmate whom Karjala did not represent.
Karjala was arrested yesterday, May 10; Miller is in state custody. Karjala is scheduled to appear in federal court today at 11:00 AM before U.S. Magistrate Judge Kevin F. McCoy to face these charges.
The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both for the most serious charges alleged in the complaint. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The Federal Bureau of Investigation (FBI) and the Alaska State Troopers (AST) conducted the investigation, with substantial assistance from DOC, leading to the charges in this case.
“It is the responsibility of law enforcement to protect the public from drug traffickers, regardless of their stated profession. Drugs in the prison system endanger the welfare of not only inmates, many of whom are already struggling with drug addiction, but also jail personnel,” said Acting U.S. Attorney Bryan Schroder. “We will continue to work with the FBI, the Alaska State Troopers, and the Department of Corrections to investigate and prosecute people who endanger the welfare of our community and have a corruptive effect on our criminal justice system.”
“These arrests are a culmination of the working relationship between the FBI, the Alaska State Troopers, and the Department of Corrections,” said FBI Special Agent in Charge Marlin Ritzman. “The Bureau, AST, and DOC are dedicated to eradicating any illegal activity that takes place within our jurisdiction.”
Charges contained in a criminal complaint are merely allegations, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Dayton Man Indicted on Terrorism ChargeRead the Press Release
DAYTON – A federal grand jury returned an indictment today charging Laith Waleed Alebbini, 26, of Dayton, Ohio, with one count of attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Alebbini allegedly attempted to provide support in the form of personnel, namely himself, to ISIS.
Acting Assistant Attorney General for National Security Dana Boente, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the indictment.
Alebbini was arrested on April 26 at the Cincinnati/Kentucky International Airport and charged with the same crime by criminal complaint. He has remained in custody since his arrest.
Attempting to provide material support to a foreign terrorist organization is punishable by up to 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
The JTTF includes officers and agents from the Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, FBI, U.S. Immigrations and Customs Enforcement, U.S. Internal Revenue Service, U.S. Secret Service, U.S. Postal Inspection Service, Greene County Sheriff’s Office, Oakwood Police Department, West Chester Police Department and Cincinnati State Police Department.
U.S. Attorney Glassman commended the investigation of this case by the JTTF, as well as First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section, who are prosecuting the case.
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Convicted Felon, Living in Logan County, Kentucky, Charged with Possession and Attempted Distribution of MethamphetamineRead the Press Release
Charges include being a felon in possession of seven firearms and ammunition
BOWLING GREEN, KY – A convicted felon living in Logan County, Kentucky, was charged by grand jury indictment this week with possession with intent to distribute methamphetamine and with being a felon in possession of firearms and ammunition, announced United States Attorney John E. Kuhn, Jr.
Sherman Matthew Watkins, 40, who was residing in Russellville at the time of his arrest, was charged in a three count indictment, with one count of possession with intent to distribute five grams or more of methamphetamine a Schedule II controlled substance and two counts of being a felon in possession of seven firearms and ammunition. The alleged criminal activity took place in Logan County, on December 6, 2016.
At the time of his arrest Watkins was allegedly in possession of $1,132 in U.S. currency and a Norinco, model SKS, 7.62x39 semiautomatic rifle; a Smith and Wesson, model 37 Airweight, .38 caliber revolver; a Smith and Wesson, model 10-8, .38 caliber revolver; a Glock, model 42, .380 caliber semiautomatic pistol; a Ruger, model 10/22, .22 caliber semiautomatic rifle; a Mossberg, model 590, 12 gauge semiautomatic shotgun; a Just Right Carbines, model JR Carbine, 9mm semiautomatic rifle; and assorted rounds of ammunition.
Watkins has two previous convictions in Jefferson County Circuit Court including Possession of a Controlled Substance 1st Degree on May 8, 2014, and Criminal Possession of a Forged Instrument 2nd Degree, on May 26, 2011.
If convicted at trial, Watkins could be sentenced to no less than 5 years for count one and no more than ten years for each of counts two and three.
This case is being prosecuted by Assistant United States Attorney Mac Shannon and is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
Christopher Marquis Etheridge and Raymon Rashaun Black Sentenced Following Guilty Pleas to a Federal Drug Conspiracy ChargeRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces today that Christopher Marquis Ethridge was sentenced to 130 months imprisonment and Raymon Rashaun Black was sentenced to 23 months imprisonment. Both sentences followed entry of guilty pleas in January 2017 to a charge of conspiracy to possess with intent to distribute cocaine.
Ethridge and Black’s guilty pleas included admissions that they conspired with one another and others to possess with intent to distribute cocaine within the Southern District of Alabama. Recorded telephone calls demonstrated Black arranged a sale of one (1) ounce of cocaine on June 10, 2016, and a sale of four (4) ounces of cocaine on June 12, 2016, to a co-conspirator in the Baldwin County area.
On June 13, 2016, Ethridge obtained cocaine from a source to complete a drug deal arranged by Black with a co-conspirator in Baldwin County. On June 13, 2016, a vehicle driven by Black, in which Ethridge was a backseat passenger, was stopped by Deputies of the Baldwin County Sheriff’s Office. During the stop, Deputies noted the smell of marijuana coming from inside the vehicle and Black admitted that he had earlier smoked marijuana in the vehicle. When Ethridge got out of the backseat a Deputy noticed a set of digital scales where Ethridge had been sitting. During the search of the vehicle a plastic bag was recovered from under the driver’s seat. The plastic bag contained approximately 91 grams of powder cocaine.Based upon Ethridge’s criminal history, Career Offender status was found to be applicable under the United States Sentencing Guidelines. This status increased his applicable advisory sentencing guideline range. Conspiracy to possess with intent to distribute a controlled substance is a violation of Title 21, United States Code Section 846. Both sentences of imprisonment will be followed by three-year terms of supervised release.
This case arose from a long-term investigation in the Daphne/Fairhope area conducted by the Federal Bureau of Investigation’s Safe Streets Task Force and the Baldwin County Sheriff’s Office Drug Task Force. This investigation has previously resulted in the indictment of five (5) other defendants on federal drug conspiracy charges. Acting U.S. Attorney Steve Butler stated, “The partnership of federal, state, and local law enforcement in the Southern District continues its longstanding concerted efforts to assure our communities are safe from drug related crime.” FBI Special Agent in Charge, Robert Lasky stated, ““These types of investigations are successful due to the dedication and commitment of our state and local partners who are determined to rid their jurisdictions of this type of crime.” The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Chicago Dermatologist Convicted on Federal Fraud Charges for Billing Health Insurance Programs for Medically Unnecessary TreatmentsRead the Press Release
CHICAGO — A federal jury has convicted a Chicago dermatologist on fraud charges for billing health-insurance programs for purported pre-cancerous treatments that were not medically necessary.
From 2007 to 2013, Dr. OMEED MEMAR, 48, of Chicago, submitted claims to multiple health-insurance programs, falsely claiming that his treatments were medically necessary to treat actinic keratosis, a pre-cancerous condition that he knew many of his patients did not actually have. Memar documented the false claims by including in his patients’ charts fictitious diagnoses of actinic keratosis that were not based on the patients’ actual signs and symptoms.
After a seven-day trial in federal court in Chicago, the jury on Wednesday convicted Memar on all 16 counts of the indictment. The conviction includes eight counts of health care fraud and eight counts of making false statements in a health care matter. U.S. District Judge Harry D. Leinenweber set sentencing for Sept. 28, 2017.
The verdict was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago.
Evidence at trial revealed that Memar owned and operated a clinic in Chicago called the Academic Dermatology & Skin Cancer Institute. Law enforcement agents in 2013 conducted a Court-authorized search of Memar’s offices and seized multiple boxes of materials, including patient files and billing records. The files showed multiple instances in which patients were said to have actinic keratosis lesions and had received intense-pulse light treatments that were billed as the destruction of actinic keratosis lesions.
Multiple patients, however, testified at trial that they were never told they had actinic keratosis lesions and that they believed the intense-pulse light treatments were for reasons different from how they were billed. Three of Memar’s former employees who performed the intense-pulse treatments testified at trial that they followed Memar’s instructions to create patient charts that made it appear the treatments had destroyed large numbers of actinic keratosis lesions on patients’ faces, even though the treatments had been identical to cosmetic treatments and Memar usually had not examined the patient during the visits.
In one example cited at trial, evidence showed that Memar billed one patient’s insurance provider for more than 15 such treatments from September 2010 through January 2013, even though Memar did not examine the patient at all during this period. Records presented at trial showed that another dermatologist had seen this patient multiple times during that period and never diagnosed any actinic keratosis lesions.
The conviction is punishable by a maximum sentence of 120 years in prison. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Stephen Chahn Lee and Kartik K. Raman.
Chesterton Man Sentenced to 292 Months ImprisonmentRead the Press Release
HAMMOND - Acting United States Attorney Clifford D. Johnson announced that Willard Abatie, 64, of Chesterton, Indiana was sentenced before District Court Judge Joseph S. Van Bokkelen for one count of coercion and enticement of a minor.
Abatie was sentenced to 292 months imprisonment and 5 years of supervised release.
According to documents in this case, on approximately ten occasions between March and December 2014, Abatie coerced a 12-year-old girl to perform sex acts with him. Abatie gained access to the girl by agreeing to help the girl’s mother facilitate a money laundering scheme. Abatie made money transfers for the mother in exchange for sexual contact with the minor.
This case was investigated by the United States Department Homeland Security Investigations (HSI) with the assistance of the Hammond and East Chicago Police Departments. This case was handled by Assistant U.S. Attorney Abizer Zanzi.
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Charlotte Man Sentenced to More Than 7.5 Years in Connection with Bank Fraud and Identity Theft SchemeRead the Press Release
CHARLOTTE, N.C. –Christopher Bryan Roach, 34, of Charlotte, was sentenced today to 95 months in prison for his involvement in a bank fraud and identity theft scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Robert J. Conrad, Jr. also sentenced Roach to two years of supervised release.
According to today’s sentencing hearing and documents filed in the case, from December 2010 to January 2017, Roach and others used the stolen social security numbers and dates of birth of identity theft victims to take over the victims’ already existing credit card accounts and to open new accounts at stores such as Best Buy and Sam’s Club. Roach and others then used the accounts to purchase items, which resulted in losses in excess of $263,000. According to the indictment, Roach obtained some of the identity theft victims’ information by buying that information from an employee of a medical practice.
Roach pleaded guilty in January 2017 to one count of aggravated identity theft and one count of conspiracy to commit bank fraud. According to statements made at today’s hearing, Roach continued to engage in fraudulent activity, including identity theft, after he entered his guilty plea by providing a co-conspirator with the stolen personal information of an identity theft victim in order to buy iPhones.
Roach will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In a related case, co-defendant Kendell Bowden pleaded guilty on March 28, 2017, to one count of conspiracy to commit bank fraud and two counts of aggravated identity theft and is awaiting sentencing.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Postal Inspection Service in Charlotte, the United States Secret Service’s Charlotte Field Office, and the Charlotte Mecklenburg Police Department, and noted that the case is the result of the Charlotte Financial Crimes Task Force (CFCTF). The task force was formed in early 2016 by the U.S. Postal Inspection Service and currently comprises over 25 local, state and federal law enforcement agencies located in the Western District of North Carolina. The goal of the taskforce is to focus on the identification and development of financial fraud investigations in the Charlotte area. Based on crime trends in the area, the task force began to focus its efforts on violent offenders with lengthy criminal histories who are committing fraud.
Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Caught with 10,000 Marijuana Seeds, Man Indicted for Conspiring to Plant Marijuana in Giant Sequoia National MonumentRead the Press Release
FRESNO, Calif. — A federal grand jury returned a single-count indictment today against Rosario Beltran-Leal (Beltran), 43, a Mexican citizen residing in Delano, charging him with conspiring to manufacture, distribute and possess with intent to distribute and manufacturing marijuana in the federally designated Giant Sequoia National Monument in Tulare County in the Sequoia National Forest, United States Attorney Phillip A. Talbert announced.
According to court documents, Beltran was found delivering 10,000 marijuana seeds at a drop point in a marijuana cultivation site in a remote area closed to the public in the Giant Sequoia National Monument. He was also in possession of a large quantity of food and marijuana cultivation supplies.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Fish and Wildlife, and the Tulare County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Beltran is scheduled for arraignment on the indictment on May 17, 2017, in federal court in Fresno. If convicted, Beltran faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Cabool Business Owner Indicted for Dumping Grease into Big Piney RiverRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Cabool, Mo., man and his grease recycling company were indicted by a federal grand jury today for violating the Clean Water Act by dumping grease into the Big Piney River.
Brian Dale Fleming, 50, of Cabool, and BF Byproducts, LLC, were charged in an indictment returned by a federal grand jury in Springfield, Mo.
BF Byproducts (formerly Fleming Recycling) is a grease-recycling business owned by Fleming. BF Byproducts uses trucks to collect used grease from hundreds of restaurants in Missouri, Arkansas and elsewhere. The grease is transported to the Cabool facility, where it is recycled for resale and a profit.
BF Products and Fleming allegedly discharged spent cooking oil, a pollutant, into the Big Piney River in March and April 2015.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Environmental Protection Agency – Criminal Investigation Division, the U.S. Coast Guard, the Missouri Department of Natural Resources, the Texas County, Mo., Sheriff’s Department and the Cabool, Mo., Police Department.
Buffalo Man Sentenced for Possessing FirearmRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced the sentencing today of Justin Vazquez, 30, of Buffalo, NY, who was convicted by a jury of being a felon-in-possession of a firearm, was sentenced to 72 months incarceration by Chief U.S. District Judge Frank P. Geraci, Jr. In reaching his sentence, Judge Geraci commented that the defendant had demonstrated a total disrespect for any authority.
Assistant U.S. Attorneys Michael J. Adler and Michael P. Felicetta, who handled the trial of the case, stated that on January 29, 2015, the defendant’s mother made a 911 call to Buffalo Police claiming that she was being held hostage by Vazquez in her residence on Madison Avenue in Buffalo. There were also two minors present in the home according to the mother.
When officers arrived, the defendant was in the shower. During a search of the residence, officers found a loaded semi-automatic assault rifle in Vazquez’s bedroom. On the bedroom door was a hand written sign that read “no trespassing or you will be shot.” Forensic testing determined that the defendant’s DNA was on the rifle.
By virtue of three prior felony criminal contempt convictions sustained by defendant in State court, he was prevented from legally possessing a firearm.
The sentencing is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Bucks County, Pennsylvania, Businessman Pleads Guilty to Bribing Philadelphia District Attorney and Tax ChargeRead the Press Release
PHILADELPHIA – An associate of Philadelphia District Attorney Rufus Seth Williams today admitted providing bribes to Williams and making and subscribing a false federal tax return, Acting U.S. Attorney William E. Fitzpatrick announced.
Mohammad N. Ali, 40, of Feasterville, Pennsylvania, pleaded guilty before U.S. District Judge Paul S. Diamond to an information charging him with one count of using facilities in interstate and foreign commerce to promote bribery in violation of Pennsylvania law and one count of federal tax evasion.
According to documents filed in this case and statements made in court:
From July 2010 through May 2015, Ali provided a stream of bribes to Williams – which Williams concealed from timely public disclosure – in exchange for Williams performing and agreeing to perform official acts for Ali and to violate Williams’ legal duties as specific opportunities arose.
For example, Ali provided Williams with an all-inclusive vacation to Punta Cana, Dominican Republic, worth $6,381, a custom sofa worth $3,212, a $502 dinner at a Philadelphia restaurant, a $7,000 check, approximately $2,000 in cash, a Louis Vuitton tie worth $205, an iPad worth approximately $300, a Burberry watch, and a Burberry purse for Williams’ girlfriend.
In exchange, Williams agreed to help Ali with security screenings when Ali returned from foreign travel. For example, on March 15, 2013, Ali met with Williams and a police official and Williams asked the police official to help Ali avoid secondary screening at the airport. That same day, Ali gave Williams a $7,000 check. Williams also repeatedly offered to write an official letter, under his authority as the District Attorney, on Ali’s behalf to pressure and advise another public official to assist Ali with the border encounters.
Ali also sought Williams’ assistance with criminal charges brought by the Philadelphia District Attorney’s Office against Ali’s associate, an individual identified in the information as “Person #1.”
Ali also admitted making and subscribing a false personal federal income tax return, which failed to report taxable income of approximately $246,504.
The bribery count is punishable by a maximum potential penalty of five years in prison. The false tax return count is punishable by a maximum potential penalty of three years in prison. Each count carries a potential fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 24, 2017.
Williams is charged in a related superseding indictment. The charges and allegations against him are merely accusations, and he is considered innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Gregory Floyd, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation.
The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.
The government is represented by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.
Defense counsel: Mark E. Cedrone Esq., Philadelphia
Blacksburg Man Sentenced on Pair of Federal ChargesRead the Press Release
Roanoke, VIRGINIA – A Blacksburg man was sentenced today in the United States District Court for the Western District of Virginia in Roanoke on a pair of federal charges, Acting United States Attorney Rick A. Mountcastle announced.
Matthew Jeremy Holland, 24, of Blacksburg, Va., previously pled guilty to one count of distribution of cocaine and one count of possessing a firearm by a previously convicted felon. Today in District Court, Holland was sentenced to 27 months in federal prison.
According to evidence presented by Assistant United States Attorney Andrew Bassford, Holland was charged after attempting to sell cocaine and a firearm to an informant with the New River Regional Drug Task Force.
The investigation of the case was conducted by New River Regional Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Allenwood Inmate Sentenced to 21 Months’ Imprisonment for Indecent ExposureRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Glenvert Green, age 25, of Washington D.C., was sentenced to 21 months’ imprisonment by U.S. District Court Judge Matthew W. Brann, for indecent exposure at the United States Penitentiary Allenwood where he was incarcerated in 2016.
According to United States Attorney Bruce D. Brandler, Green approached a female corrections officer, exposed himself to her, and began making obscene gestures while continuing to move towards her.
The investigation was conducted by the Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Michael P. FiggsGanter and Assistant U.S. Attorney Geoffrey W. MacArthur prosecuted the case.
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Alien Smuggler Sentenced for Blowing Through Checkpoint at High Speed, Seriously Injuring Border Patrol AgentRead the Press Release
Assistant U. S. Attorney Colin McDonald (619) 546-9144
SAN DIEGO – Jorge Garcia-Osornio was sentenced in federal court today to 30 months in prison for blasting through a Border Patrol checkpoint in Pine Valley, severely injuring a checkpoint inspection agent, and taking Border Patrol on a high-speed chase reaching speeds of at least 100 miles per hour.
Garcia, who was illegally present in the U.S. and had two illegal immigrants hiding on the floor of his vehicle, approached the checkpoint – about 45 miles east of downtown San Diego - at approximately 10:26 a.m. on November 14, 2017. As he neared the line of cars waiting for inspection, he made an illegal U-turn and started driving the wrong way on the freeway.
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A Border Patrol agent yelled, “Turn around! Turn around!” Another agent activated his emergency lights and siren and began following the defendant. Garcia then made another U-turn on the freeway and headed back toward the checkpoint. The agent tried to stop Garcia’s vehicle by positioning the agency vehicle in the center of both freeway lanes, but Garcia squeezed past by driving onto the shoulder of the freeway.
He then sped toward the checkpoint. A number of cars were in the checkpoint queue. Garcia evaded them by driving into a coned-off freeway lane. He then accelerated to – and through – the checkpoint. In the process, he barely missed crashing into a parked agency car; barely missed crashing into a parked civilian car; and barely missed running over Border Patrol Agent M. Medina, the primary inspection agent.
But Garcia did not miss a steel-framed stop sign sitting in the middle of the freeway lanes; he barreled through it, causing a collision best described as an “explosion.” Debris from the collision struck Agent Medina, who likened the blow to being “hit with a baseball bat.” His injuries were similarly severe: Vomiting, throbbing headache, blurry vision, a gash on his face, shaking uncontrollably, and loud ringing in his ears, among other things. Agent Medina was taken to the hospital in an ambulance and has not returned to work since.
After crashing through the checkpoint, Garcia led Border Patrol on a high-speed chase, reaching speeds of at least 100 mph. After about 3.5 miles, Garcia exited the freeway, ran a stop sign and crashed into a hillside. One of the illegal immigrants on the floor of Garcia’s car said he “feared for his life.”
Garcia then ran away and agents found him hiding in a nearby carport with the crashed car’s key fob in his pocket.
As part of his plea, Garcia admitted driving the wrong way on the freeway, reaching at least 100 mph when fleeing from the checkpoint, using a dangerous weapon in the commission of the offense, and seriously injuring Agent Medina, among other things.
Garcia expected to earn between $1,400 and $2,000 for transporting the two illegal immigrants.
“This defendant had no regard for the safety of his passengers, other drivers on the freeway or agents at the checkpoint,” said U.S. Attorney Adam Braverman. “It’s a miracle no one died in this incident. Smugglers operate in a world where immigrants are just dollar signs, not people.”
“In committing his criminal act, Garcia not only placed the lives of those he smuggled in grave danger, but seriously injured a Border Patrol agent in the process,” Chief Patrol Agent Rodney S. Scott. “I would like to express my sincere appreciation to the United States Attorney’s office for their efforts in prosecuting this case. Let this sentencing serve as a reminder that there will be severe consequences for those that wish to do our country harm.”
DEFENDANT Case Number 17cr4272-JM
Jorge Garcia-Osornio Age: 28 Michoacán, Mexico
SUMMARY OF CHARGES
Transporting Certain Aliens and Aiding and Abetting – Title 18, U.S.C., Sections 1324(a)(1)(A)(ii), (v)(II), and (a)(1)(B)(i)
Maximum penalty: 10 years’ imprisonment and $250,000 fine
AGENCY
U.S. Border Patrol
Acting U.S. Attorney Announces $54 Million Settlement of Civil Fraud Lawsuit Against Benefits Management Company for Improper Authorization of Medical ProceduresRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the New York Regional Office for the Office of Inspector General for the Department of Health and Human Services (“HHS-OIG”), announced today that the United States simultaneously filed and settled a civil fraud lawsuit against benefits management company CaRECORE NATIONAL LLC (“CARECORE”), now part of eviCore healthcare, for authorizing medical diagnostic procedures paid for with Medicare and Medicaid funds over a period of at least eight years without properly assessing whether the procedures were necessary or reasonable. The settlement, approved in Manhattan federal court by U.S. District Judge Richard J. Sullivan, resolves CARECORE’s civil liabilities to the United States under the federal False Claims Act. Under the settlement, CARECORE must pay a total of $54 million, of which $45 million will be paid to the United States and $9 million will be paid to the states that are named as plaintiffs in the suit. CARECORE also admitted and accepted responsibility for, among other things, improperly approving prior authorizations requests for hundreds of thousands of diagnostic procedures paid for with Medicare Part C and Medicaid funds.
Acting U.S. Attorney Joon H. Kim said: “Benefit management companies are supposed to determine whether medical diagnostic procedures paid for with Medicare and Medicaid funds are necessary and reasonable. Instead, CareCore blindly approved hundreds of thousands of medical procedures over a period of many years, leaving Medicare and Medicaid to foot the bill. This lawsuit and settlement shows our commitment to ensuring that fraud and waste involving federal funds will be identified and stopped.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “CareCore’s irresponsible behavior compromised the integrity of the Medicare and Medicaid programs, and wasted millions of taxpayer dollars. HHS-OIG will continue to ensure that companies that do business with federally-funded health care programs do so in an honest fashion.”
The United States Complaint-In-Intervention (the “Complaint”) alleges that starting in as early as 2005, CARECORE, which performs prior authorization review for diagnostic procedures on behalf of many insurers, including those providing insurance through Medicare Part C and Medicaid Managed Care, was unable to review prior authorization requests in a timely fashion, and in order to avoid contractual penalties for failing to timely process the requests, CARECORE instituted a practice of improperly approving prior authorization requests. By 2007, CARECORE had formalized this practice into the “PAD program.” Between 2007 and 2013, through the PAD program, CARECORE improperly authorized over 200,000 diagnostic procedures.
As part of the settlement, CARECORE must pay $54,000,000 to resolve both federal and state false claims act claims, the latter of which will be the subject of a separate settlement agreement between CARECORE and the states. In the settlement, CARECORE admits, acknowledges and accepts responsibility for the following conduct:
- CARECORE provides services to health insurers, including managed care organizations that provide services to beneficiaries of the Medicare Part C and Medicaid programs (collectively, “MCOs”). CARECORE provides prior authorization services, which consist of screening prior authorization requests for certain procedures for medical reasonableness and necessity. During the times pertinent to this matter, CARECORE’s Clinical Reviewers, who generally were nurses, received information from the treating physicians and input that information into CARECARE’s proprietary software system. That software system, based on the information provided, either recommended approval of the prior authorization or recommended further review by a physician.
- Under the applicable regulations and contractual provisions, if a plan decides to implement prior medical necessity review in order to cover physician-ordered services, only a physician or other appropriate health care professional with sufficient expertise has the authority to deny a procedure. Thus, if a prior authorization could not be issued based on the information currently supplied by the treating physician, the prior authorization request, including all of the related information, was placed in an electronic queue, the Medical Review Queue. The prior authorization request could be accessed in the Medical Review Queue by a CAERCORE Medical Director, who is a physician retained by CARECORE, who would review the information and determine whether to conduct a peer call with the treating physician or appraise information gathered after the initial request in order to determine whether prior authorization of the procedure was appropriate, or should be denied.
- In order for the MCOs to meet timelines in the applicable regulations and/or pursuant to its contractual obligations and provisions, CARECORE was required to issue a determination on prior authorization requests within fixed time periods known as “Turn Around Times,” or “TATs”, often as little as 4 hours for urgent requests, and 48 hours for non-urgent requests. CARECORE was also subject to contractual monetary penalties if it failed to maintain performance standards, including meeting the processing deadlines set forth in the regulations and contracts.
- Starting in at least 2007, CARECORE developed the “Process As Directed,” or “PAD” Program. Under the PAD Program, CARECORE’s Clinical Reviewers would approve certain prior authorization requests awaiting physician review that had been on the queue for nearly the entire applicable TAT. The PAD Program consisted of Clinical Reviewers improperly approving certain prior authorization requests on the Medical Review Queue without having obtained any new objective medical information about the request, and without a Medical Director having independently reviewed the prior authorization request. These prior authorization requests (“padded requests”) were then transmitted to CARECORE’s client insurers, including MCOs, as preauthorized requests.
- In 2007, the PAD Program was formalized into corporate policy, which included detailed training materials and daily reporting of the number of padded requests to high-level executives then-employed at CARECORE. When daily regular review of the Medical Review Queue showed the volume of cases in the Medical Review Queue was too high to make a timely decision for a significant volume of requests for prior authorization, certain Clinical Reviewers were directed by then-management to approve requests for prior authorization without obtaining or considering any new medical information.
- From 2007 through June 13, 2013, CARECORE padded between 200,000 and 300,000 prior authorization requests.
- In CARECORE’s role managing the prior authorization process, it had medical information of the beneficiaries seeking prior authorization. When CARECORE approved padded requests, CARECORE made a representation that it had appropriately reviewed the requests when it knew it had not. Thus, those padded requests incorporated CARECORE’s false representation that it had approved a case after completing the required review process. The MCOs thereafter provided coverage based on CARECORE’s approval of the prior authorizations.
- MCOs would only pay for procedures that require a prior authorization if the prior authorization was granted in a manner consistent with the MCO’s policies and procedures. Thus, the PAD Program resulted in insurance claims related to the padded requests being presented to the MCOs for payment with federal and/or state government funds, and MCOs actually paid insurance claims made in connection with the padded requests.
The Complaint in this case was filed under the federal False Claims Act, which punishes violators who submit false claims or make false statements material to claims submitted to entities administering programs funded by the government. The allegations of fraud stated in the Complaint were first brought to the attention of the government by a whistleblower, who filed a lawsuit under the qui tam provisions of the False Claims Act. Those provisions allow private parties who have knowledge of fraud committed against the government to file suit on behalf of the government and share in any recovery. The United States may then intervene and file a complaint, as it did here.
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Mr. Kim praised the investigative work of the Offices of the State Attorneys General of the 29 states also named as plaintiffs in the qui tam complaint. He also thanked the U.S. Department of Health and Human Services, Office of Inspector General, for its assistance in this case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Arastu K. Chaudhury is in charge of this matter.
Acting Manhattan U.S. Attorney and FBI Assistant Director Announce Insider Trading Charges Against Law Firm PartnerRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that WALTER C. LITTLE, a/k/a “Chet,” a former partner at an international law firm (the “Firm”), and ANDREW BERKE, a business associate of LITTLE, were arrested this morning and charged with insider trading. LITTLE and BERKE collectively made approximately $1 million in profits in connection with options and stock trading based on material nonpublic information that LITTLE improperly accessed from the Firm’s databases and then provided to BERKE. LITTLE and BERKE were arrested today and presented before a Magistrate Judge in the Middle District of Florida.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Walter Little, a former partner at a major international law firm, allegedly used confidential information – entrusted to the firm by its clients – to illegally trade for personal gain. Although he billed no work for these clients, Little allegedly used his position at the firm to access and share their nonpublic business information. As alleged, Little and Andrew Berke then used that inside information to make approximately $1 million in illegal profits. We continue the fight against illegal insider trading, and are committed, along with our partners at the FBI and the SEC, in ensuring fairness and integrity in our financial markets.”
FBI Assistant Director William F. Sweeney Jr. said: “Little and Berke allegedly used Little’s position at the firm to access material, nonpublic information and engage in insider trading – a scheme that ultimately resulted in collective profits of approximately $1 million. Having access to this type of information is a privilege, one that is extended in furtherance of trusted business-related matters. When clients’ proprietary information is used in this way, they’re not the only ones at risk of losing; keeping our markets fair for all investors remains a top priority for the FBI. We will continue to work with our law enforcement partners to bring charges against those who use illegal and unfair advantages in our securities markets.”
According to the Complaint unsealed today in Manhattan federal court:[1]
Between February 2015 and May 2016, LITTLE was employed at the Firm as a partner. During that time, the Firm provided transactional and regulatory legal advice to a wide variety of corporations, among other services. Clients regularly entrusted the Firm with nonpublic information and the Firm consequently enacted policies requiring its employees to keep such information confidential. LITTLE, however, failed to abide by these policies. Even though he did not perform any billable work for the associated clients, LITTLE accessed documents relating to seven different companies containing material nonpublic information about (1) a client’s anticipated delisting from the NASDAQ stock exchange; (2) multiple clients’ involvement in mergers and acquisitions; (3) multiple clients’ anticipated earnings announcements; and (4) a securities offering being planned by a client. LITTLE then purchased and sold stock and options based on the information contained in these documents, making profits of over approximately $320,000.
In addition to trading on the information himself, LITTLE also provided the information to BERKE, his business associate and friend. BERKE also traded on the information, making profits of over approximately $660,000. For example, on or about July 23, 2015, LITTLE accessed a document on the Firm’s document management system entitled “Revised Merger Agreement,” which contained material nonpublic information about an upcoming merger of a Firm client. The following morning, between approximately 8:31 a.m. and 8:34 a.m., LITTLE and BERKE exchanged approximately six text messages. Approximately an hour later, at 9:41 a.m., BERKE purchased hundreds of shares of stock in the relevant company. The merger referenced in the document that LITTLE had accessed became public approximately three days later, resulting in significant profits for BERKE.
* * *
LITTLE, 43, of Tampa, Florida, and BERKE, 49, of Apollo Beach, Florida, are each charged with one count of conspiring to commit securities fraud and six counts of securities fraud. LITTLE is also charged with an additional five counts of securities fraud. The charge of conspiring to commit securities fraud carries a maximum sentence of five years in prison, and each securities fraud count carries a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Kim praised the investigative work of the FBI and thanked the SEC, which has filed civil charges in a separate action. He added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Robert Allen is in charge of the prosecution. The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
22 Individuals Charged with Conspiracy to Commit Id TheftRead the Press Release
SAN JUAN, P.R – On May 9, 2017, a federal grand jury in the District of Puerto Rico returned a 49-count superseding indictment charging 22 individuals with conspiracy to commit identity theft, aggravated identity theft, and counterfeit access device, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The United States Secret Service (USSS) and the U.S. Postal Inspectors are conducting the investigation.
According to the indictment, the object of the conspiracy was to steal the names, bank account numbers and debit or credit card numbers and other means of identification of customers at retail businesses located in and around San Juan, Puerto Rico to enrich themselves and for financial gain and profit. The members of the conspiracy acted as “card skimmers,” using a card skimming device to obtain the names, numbers, and any other identifying information necessary to further the conspiracy.
The defendants would use the skimmer to create fake debit, credit, bank, money, or gift cards to use for transactions for cash, goods, or services. Then they would use the fake debit, credit, bank, money, or gift cards to make cash withdrawals from Automatic Teller Machines (ATMs), purchase money orders, and purchase goods, and services. The loss to financial institutions affected is over $280,000.
The defendants are: Roy Moreno-Negrón, José Calderón-Campos, Edwin R. López-Colón, Miguel González-Marichal, A.K.A. “Kevin,” A.K.A. “Mecha Corta,” Luis Torres Cirilo, A.K.A. “Luis Piña,” A.K.A. “Luigi,” A.K.A. “Rosario,” A.K.A. “Aurelio Chacorta,” Juan Carlos Santiago-Calderón, Yadiely Vázquez-Medina, Adriana Calero-Estades, Edward Santiago-González, Ameliangie M. Graciani-Ramos, Ángel Yadier Esquilin-Cruz, Christopher Rivera-Pérez, Dijeiry Flores, Johana María Rivera-Aguayo, Jorge Luis Vaello-Marquez, Ángel Luna-Guerrero, A.K.A. “Angelito Barber,” Abraham Cruz-Semprit, A.K.A. “Bam Bam,” [18] Michael Soto-Rodríguez, A.K.A. “Chal Soto,” Gustavo Mojica-Moreno, Jean Carlos Lebrón-Falcón, Elvin José Castellano, A.K.A. “Enanito Antonio,” A.K.A. “Menor Cupey,” and Javier Delbrey Negrón. The leader of the conspiracy, Moreno-Negrón is also facing one count for possession of a firearm by a convicted felon.
“Law enforcement will not stand by as criminals attempt to disrupt our lives, steal our savings, and ravage our credit, said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I urge everyone to take steps to protect their personally identifiable information from criminals who seek illicit profits through stolen identity fraud.”
USSS Resident Agent in Charge Carlos Colón stated: “This case highlights the Secret Service’s investigative skills and our commitment to collaborate with our law enforcement partners in detecting and dismantling sophisticated criminal organizations. These crimes can have a detrimental impact to our nation’s critical financial infrastructure. Financial fraud is one of the largest challenges facing American citizens and businesses today. The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who commit this type of fraud.”
“Roy Moreno and his codefendants victimized the citizens of San Juan for their own personal financial gain. These arrests are a fitting end to their scheme. U.S. Postal Inspectors, and our law enforcement partners are sending a strong message that we will tirelessly work to protect the American public from predators like Moreno. Congratulations to the agents, detectives, and Inspectors who brought this group to justice,” said Jim Buthorn, Inspector in Charge, Newark Division/San Field Office.
If convicted, the defendants face maximum penalty of 15 years in prison for the conspiracy to commit identity theft, two years mandatory for the aggravated identity theft, and a maximum of 10 years for the counterfeit access device charge.
The case is being prosecuted by Assistant United States Attorney Edward Veronda. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Wednesday 10 May 2017
Worcester Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A former Worcester man who was residing in New York pleaded guilty today in federal court in Worcester for failing to register as a sex offender.
George Moriarty, 55, pleaded guilty before U.S. District Court Judge Timothy S. Hillman, who scheduled sentencing for August 3, 2017.
In October 1994, Moriarty was convicted of indecent assault and battery on a child under the age of 14. The Massachusetts Sex Offender Registry Board classified Moriarty as a level 2 offender. Sometime after April 2013, Moriarty moved to New York without notifying authorities of his residency change, as required by law. In November 2016, he was indicted and subsequently arrested in New York and returned to Massachusetts.
The charging statute provides for a sentence of no greater than 10 years in prison, a minimum of five years up to a lifetime of supervised release, and a $250,000 fine. 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 John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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Williamsville Doctor Sentenced on Prescription Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Yusuf Siddiqui, 72, of Williamsville, NY, who was convicted of obtaining controlled substances by fraud, was sentenced to one year probation by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that on October 13, 2016, the defendant, a physician licensed to practice medicine in the State of New York, wrote prescriptions for hydrocodone, a Schedule II controlled substance, and clonazepam, a Schedule IV controlled substance, to a patient that he had not examined. Siddiqui wrote the prescriptions with the expectation that he would receive a portion of the prescribed medication for his personal use. The defendant wrote the prescriptions at the request of the patient’s daughter whom Siddiqui knew was addicted to pain medication. The patient’s daughter was also a former employee of the defendant.
On October 13, 2016, Siddiqui picked the patient’s daughter up from her residence and gave her seven hydrocodone and seven clonazepam pills. Later that same day, the defendant drove the patient’s daughter to a pharmacy where she had the prescriptions filled. When the patient’s daughter returned to the car, Siddiqui asked her to return the hydrocodone pills that he had given her earlier in the day. The patient’s daughter asked the defendant if he wanted more pills and he responded, “Yes” and took 30 hydrocodone pills.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Virginia company and five individuals indicted on cigarette smuggling chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury has returned an indictment charging five individuals and a Virginia-based company with unlawful cigarette smuggling, Assistant United States Attorney, Criminal Chief Randolph J. Bernard announced today.
Udayappan Subramanian, 40, of Haymarket, Virginia; Joao Jose-Serrara Catarino, 78, of Statesville, North Carolina; Pedro Pablo Reyes-Diaz, 40, of Pembroke Pines, Florida; Alvin Alfonso Contreras , 43, of New Britain, Connecticut; Reynold Matthew Vaz, 35, a fugitive in Canada; and Jaya Company, LLC of Haymarket, Virginia, are alleged to have conspired to profit from the unlawful sale of contraband cigarettes. The indictment charges that the defendants transported large quantities of cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in other states, including New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Tobacco retailer The Olde Stone Truck Stop, of Clear Brook, Virginia, which was owned by Jaya Company, LLC, owned and operated by defendant Subramanian, was responsible for the acquisition of the contraband. Jaya Company and Subramanian are alleged to have purchased millions of dollars worth of cigarettes from various wholesalers in the region, primarily with cash, before reselling them to out of state smugglers for a profit.
Each of the six defendants is charged with one count of “Conspiracy Involving the Trafficking of Contraband Cigarettes.” Subramanian is further charged with two counts of “Trafficking of Contraband Cigarettes.” Vaz is further charged with two counts of “Trafficking of Contraband Cigarettes.” Contreras, Reyes, and Catarino are further charged with one count each of “Trafficking of Contraband Cigarettes.” Each of the defendants faces up to five years in prison and a fine of up to $250,000 on each count. 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 defendants.
Assistant U.S. Attorneys Michael Stein and Shawn Adkins are prosecuting the case on behalf of the government. Homeland Security Investigations, the Frederick County, Virginia Sheriff’s Office, the Alcohol and Tobacco Tax and Trade Bureau, and the West Virginia State Police led the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Vallejo Man Sentenced to Ten Years in Prison for Lead Role in Mortgage Fraud SchemeRead the Press Release
OAKLAND– Karim Akil (also known as Scott Kinney) was sentenced today to 120 months in prison for conspiracy to commit mortgage fraud and money laundering, announced U.S. Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation (“IRS-CI”), Special Agent in Charge Michael T. Batdorf. The Honorable Phyllis J. Hamilton, Chief U.S. District Judge, handed down the sentence following a guilty plea entered July 10, 2012, in which Akil admitted his role as the organizer and leader of a mortgage fraud scheme.
According to Akil’s plea agreement, he knowingly conspired with others to commit wire fraud, involving the purchase of properties located in the Northern and Eastern Districts of California. Akil, 50, of Vallejo, acknowledged he directed co-defendants to create and submit loan applications that contained materially false information to financial institutions. Akil acknowledged that the conspiracy involved using the names of fictitious persons and straw buyers, the creation of purchase contracts that reflected inflated sale properties above the original sales price, and the submission of fraudulent loan applications for 100 percent financing based upon the properties’ inflated purchase prices. Akil agreed that more than 18 properties were involved in the conspiracy to defraud, and agreed that he was an organizer and leader of five or more participants in the conspiracy. Akil directed an escrow officer to distribute “profits” to co-conspirators and to businesses that he owned or controlled, including Hiddenbrooke Mortgage and Marsh Group.
“Mr. Akil enjoyed a lavish lifestyle, with outrageous expenditures,” said Michael T. Batdorf, Special Agent in Charge, IRS-CI. “Akil left a path of destruction, from properties that went into default and foreclosure, to straw buyers whose credit was ruined, to an escrow company that went out of business. Although this sentence cannot reverse the damage caused by Akil and his co-conspirators, it highlights the ongoing commitment of IRS-CI and our law enforcement partners to hold accountable those involved in these types of crimes.”
On October 29, 2009, a federal grand jury indicted Akil and six co-conspirators, for their alleged roles in this extensive scheme. For his part, Akil was charged with one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349, 34 counts of wire fraud, in violation of 18 U.S.C. § 1343, and 16 counts of money laundering, in violation of 18. U.S.C. § 1957(a). On July 10, 2012, Akil pleaded guilty to the conspiracy charge and one count of money laundering.
While out on pretrial release, between late 2012 and early 2013, Akil became involved in a series of new acts, which involved violating the terms of his plea agreement. During the sentencing hearing, Judge Hamilton found that Akil breached his plea agreement in seven different ways. These acts constituting breaches of the plea agreement included convincing a San Francisco property owner to take out a loan against a valuable property she had inherited. The lender foreclosed on the property after Akil received $493,514 in net proceeds from the loan and loan payments were not made. In a second alleged scheme, Akil also defrauded a victim in Southern California by promising to provide a $1.1 million stand-by letter of credit. Akil received $197,600 in fraudulent proceeds from that victim. That victim never received a legitimate letter of credit and never got his money back from Akil or anyone else involved in the alleged scheme. In a third alleged scheme, Akil also forged numerous documents to gain control of a Southern California property and did a cash-out finance without the owner’s knowledge or permission. Akil channeled almost $270,000 in net proceeds from the alleged fraudulent activity in that scheme through his other financial accounts, and spent all the money.
Judge Hamilton emphasized at the sentencing hearing that “individuals’ lives [ ] are ruined or significantly impacted by people who are gaming the system in some way, who are gaming the individuals.” Judge Hamilton found Akil’s “behavior to be entirely disturbing and suggestive of not only a failure to accept responsibility for his criminal conduct but a level of incorrigibility.” The judge also stated, “I ponder whether or not any sentence will deter Mr. Akil.” Judge Hamilton voice her concern that Akil’s statements to the Court during the sentencing hearing did not reflect true remorse for having ruined people’s financial lives.
In additional to the prison term, Judge Hamilton ordered Akil to serve a three-year period of supervised release, and ordered him to submit his person, residence and any property under his control to a search by Probation Officers or law enforcement officers at any time, with or without cause. Akil will begin serving the sentence immediately. The restitution hearing, scheduled for July 12, 2017, will determine the amounts Akil will be ordered to pay to the victims of his crimes.
Co-defendants Amy Schloemann (Akil’s former wife), Darnell Thomas, and Louisa Wonda Kidd each pleaded guilty to related crimes and were sentenced for their respective roles in the scheme. On June 12, 2013, Schloeman was sentenced to 36 months for her role in the scheme and on November 7, 2012, Thomas was sentenced to 36 months of imprisonment for his role in the scheme. On November 20, 2013, Kidd received a sentence of 36 months of probation for her role. Co-defendants Michelle McGuire and Kashka Clay have entered guilty pleas and are scheduled to be sentenced on June 28, 2017.
Assistant U.S. Attorney Christina McCall prosecuted the case with the assistance of Allen Williams, Noble Hughes, Vanessa Vargas, and Kathleen Turner. The prosecution is the result of an investigation by IRS-CI with the assistance of the Alameda County District Attorney’s Office.
U.S. Attorney's Office Observes Arson Awareness WeekRead the Press Release
The U.S. Fire Administration (USFA), a branch of FEMA, is hosting its annual Arson Awareness Week from May 7 to 13. This year’s theme is “Preventing Arson at Houses of Worship.” Acting United States Attorney Steve Butler for the Southern District of Alabama is encouraging our local religious communities to get involved and take measures to reduce the risk of becoming a victim of arson. The Pew Research Center recently noted that, over the past several years and nationwide, 51% of reported fire incidents at faith-based locations were determined to be arson.
The USFA hopes to reduce the odds of faith-based facilities becoming targets of arson, through educating leaders on how to identify and eliminate potential fire hazards and minimize the risk of injuries. For example, there are various activities that municipalities can host to generate arson awareness, such as Congregation Fire Safety Days where local fire departments offer fire safety training for houses of worship. The USFA also suggests that houses of worship host Clean-Up Days to identify areas on their properties that need attention and remove any potentially combustible materials from the grounds. To find out more about USFA’s recommendations, please visit https://www.usfa.fema.gov/prevention/outreach/arson_awareness.html.
The Department of Homeland Security’s Protective Security Advisor Program (PSA) also offers assistance to houses of worship by conducting arson and security reviews, and addressing active shooter risks. For more information about these programs, please visit https://www.dhs.gov/protective-security-advisors and contact the DHS National Infrastructure Coordinating Center at (202) 282-9201 to learn about the closest PSA.
Locally, in the City of Prichard, Mayor Gardner and the City Council have proclaimed May 7 through 13 as Arson Awareness Week to stress the importance of arson prevention to their faith-based communities.
Preventing Arson at Houses of Worship (PDF)
Protecting Houses of Worship Against Arson (PDF)
Arson Awareness Week Activities (PDF)
Two Men Sentenced in Multi-State Scheme to Fraudulently Obtain New Cell PhonesRead the Press Release
BOSTON – Two men were sentenced yesterday in federal court in Boston in connection with a fraudulent scheme to obtain and re-sell more than $330,000 in new cell phones.
Jimmy Phan, 30, of Boston, was sentenced yesterday by U.S. District Court Senior Judge Mark L. Wolf to 18 months in prison, three years of supervised release, and ordered to pay approximately $275,000 in restitution. Judge Wolf also sentenced Lee Tran, 30, of Waltham, to 12 months of probation and ordered him to pay approximately $3,200 in restitution. Phan and Tran both pleaded guilty to wire fraud conspiracy in February 2016.
Phan and Tran were part of a six-person, multi-state scheme to defraud T-Mobile. Co-defendant Kevin Johnson was sentenced in April 2017 to 70 months in prison. In May 2016, co-defendants David Hul and Curtis Peebles were sentenced to 21 and 18 months in prison, respectively. The wire fraud conspiracy charge against the sixth co-defendant, Khoa Doan, was dismissed when Judge Wolf sentenced Doan to prison on a related charge.
Phan, Hul, Peebles, Johnson, and co-conspirators gained access to T-Mobile customer records, including customer names, phone numbers, and information regarding those customers’ eligibility for free phone upgrades.
From at least January 2014 through October 17, 2014, Phan, Hul, Johnson, Peebles, and other co-conspirators called T-Mobile customer service centers and, impersonating T-Mobile employees, used dealer codes that enabled them to add any name as an authorized user on T-Mobile accounts. They then recruited “runners,” including Tran, to go into T-Mobile stores and impersonate the customers. Phan, Hul, Peebles and Johnson sometimes directed the runners to use false names that closely matched their real names to reduce the likelihood of T-Mobile detecting the fraud.
Runners then went to T-Mobile stores in Massachusetts, Nevada, New Hampshire, New York, Pennsylvania, Rhode Island, New Jersey, Florida, and elsewhere, presented identification in the real or assumed names, and acquired one or more new cell phones on accounts that were eligible for upgrades. Runners then returned the new phones to Phan, Hul, Peebles, and others, who paid them a portion of each phone’s value. Although T-Mobile regularly alerted its customers to changes to their accounts, the affected customers frequently did not learn of the fraudulent modifications in time to prevent the distribution of the phones. Phan, Hul, and others re-sold the cell phones to other co-conspirators for distribution in the United States and abroad. In total, the scheme netted at least $330,000 worth of new cell phones.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement. Assistant U.S. Attorney Seth B. Kosto of Weinreb’s Cybercrime Unit prosecuted the case.
Two Indicted for Allegedly Sex Trafficking a MinorRead the Press Release
PROVIDENCE – A federal grand jury on Tuesday returned a four-count indictment alleging that two Rhode Island men sex trafficked a 17-year-old Rhode Island female at hotels in Warwick, R.I. and Queens, N.Y., and at locations in Massachusetts.
Additionally, the indictment alleges that an 18-year-old woman was transported by the defendants to Queens, N.Y., for the purpose of offering her for commercial sexual activity.
The indictment, unsealed today in U.S. District Court in Providence, charges Reysean Williams, a/k/a “Sincere,” 27, of Pawtucket, and Leandro Gomes, a/k/a “Leo,” 18, of Providence, with conspiracy to sex traffic a child, sex trafficking of a child, interstate transportation of a minor to engage in criminal sexual activity and traveling in interstate with the intent to engage in criminal sexual activity. The defendants, arrested earlier today and arraigned, were ordered detained in federal custody by U.S. District Court Magistrate Lincoln D. Almond.
The indictment of Reysean Williams and Leandro Gomes’ is announced by Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England; and Cranston Police Chief Colonel Michael J. Winquist.
According to the indictment, it is alleged that from March 21 to 23, 2017, Williams rented a hotel room in Warwick for the purpose of having a juvenile female engage in several commercial sex acts. During those dates, Williams and Gomes posted Backpage.com advertisements, which offered the sexual services of the juvenile. Gomes collected the payments made to the victim, and gave most if it to Williams.
Additionally, the indictment alleges that on March 25, 2017, Williams and Gomes transported the juvenile female and an 18-year-old female to a hotel in Queens, N.Y., for the purpose of engaging in commercial sexual activity. Advertisements were posted on Backpage.com. Gomes collected the payments made to the victims, and gave most if it to Williams.
The indictment also alleges that on March 25, 2017, Williams and Gomes traveled to New York for the purpose of engaging in illicit sexual conduct with a person under the age of 18.
According to state court documents filed in this matter, the victim was located on April 17, 2017, during an investigation by members of the Cranston Police Department Special Victims Unit, working with Homeland Security Investigations.
An investigation by Homeland Security Investigations and the Cranston Police Department into this matter and into the alleged conduct of the defendants is continuing.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
If convicted as charged in the indictment, the defendants face statutory penalties of 10 years to life imprisonment, to be followed by up to lifetime supervised release.
Acting United States Attorney Stephen G. Dambruch thanks the Rhode Island Department of the Attorney General for their assistance in this case.
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Turley Minister Pleads Guilty to Accessing with Intent to View Child PornographyRead the Press Release
Ronald Eugene Robinson, 62, of Tulsa, pled guilty to Accessing with Intent to View Child Pornography, announced Loretta F. Radford, Acting United States Attorney for the Northern District of Oklahoma. Chief United States District Court Judge Gregory K. Frizzell will sentence Robinson on August 10, 2017.
On November 10, 2015, Homeland Security Investigations (HSI) agents in Phoenix, Arizona conducted an undercover operation in an internet chatroom. While in the chatroom, HSI agents observed Robinson and other individuals watching child pornography that was being streamed. Some of the children in the videos were under the age of 12.
On March 30, 2017, HSI agents served a warrant and searched Robinson’s home. Robinson admitted he accessed the internet chatroom and viewed child pornography. Robinson faces a maximum sentence of twenty years of imprisonment, a $250,000 fine, and at least five years of supervised release up to life following a sentence of imprisonment.
This case was investigated by HSI, the Tulsa County Sheriff’s Office, and the Tulsa Police Department. The case was prosecuted by Assistant United States Attorney Neal C. Hong.
Three from Central America charged with illegally reentering the U.S.Read the Press Release
Three people from Central America were charged with illegally reentering the United States, Acting U.S. Attorney David A. Sierleja said.
Indicted in the unrelated cases are: Julio Nunez-lzaguine, aka Julio Nunez, aka July, aka Alex Moncada-lzaguirre, aka Michael Hernandez, 37, of Honduras; Sergio Rene Almendarez-Euceda, 31, of Honduras, and Jose Ayala-Escobar, 29, of El Salvador.
Nunez-Izaguirre was deported to Honduras in 2001 and was recently found in Cleveland, according to the indictment.
Almendarez-Euceda was last deported to Honduras in 2012 was recently found in Portage County, according to the indictment.
Ayala-Escobar, who was last deported in 2012, was recently found in North Royalton, according to the indictment.
These cases are being prosecuted by Assistant U.S. Attomey Karrie D. Howard following investigations by U.S. Border Patrol, Immigration and Customs Enforcement, Department of Homeland Security and the Ohio State Highway Patrol.
If convicted, the defendant's sentence will be determined by the court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense, and the characteristics of the violation. In allcases, the sentence
will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the govemment's burden to prove guilt beyond a reasonable doubt.
Texas Men Indicted on Federal Hate Crime Charges for Targeting Victims based on their Sexual OrientationRead the Press Release
SHERMAN, Texas – A federal grand jury returned an 18-count superseding indictment charging four Frisco, Texas men with federal hate crime and conspiracy charges in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherson today.
Anthony Shelton, 19; Nigel Garrett, 21; Chancler Encalade, 20; and Cameron Ajiduah, 18, were named in a superseding indictment returned by a federal grand jury today charging them with conspiring to cause bodily injury to persons because of the sexual orientation of those persons.
According to the indictment, from Jan. 17 to Feb. 7, 2017, the defendants committed home invasions in Plano, Frisco, and Aubrey, Texas. For each of the four home invasions, the defendants used Grindr, a social media dating platform for gay men, to falsely identify as a gay man and arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants assaulted the victim, restrained the victim with tape, and made derogatory statements about the victim being gay. The defendants possessed a firearm during each home invasion, and they stole the victim’s property, including his motor vehicle.
For these crimes, the defendants have been charged with conspiracy, kidnapping, carjacking and possession of a firearm in furtherance of these crimes. The hate crime counts carry a maximum statutory penalty of life in prison.
An indictment merely establishes probable cause, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the ATF, the Plano Police Department and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office of the Eastern District of Texas and Trial Attorney Saeed Mody of the Justice Department’s Civil Rights Division.
Texas Man Sentenced to Two Years in Federal Prison for Identity Theft Related to Credit Card FraudRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Elvis Barban Chavez, 45, of Austin, Texas, was sentenced to two years in federal prison after pleading guilty to aggravated identity theft in connection with a credit card fraud scheme.
According to documents that were filed in the United States District Court, Chavez and others traveled from Austin, Texas to New Hampshire in late December 2015 and early January 2016. Once they arrived in New Hampshire, they began purchasing gift cards at various retail stores in the area, including the Sam’s Club store in Hudson, New Hampshire. The group obtained the credit card information for various individuals, including numerous New Hampshire residents, by downloading the information from a skimmer that was hidden in a gas pump at a store in Londonderry, New Hampshire. After downloading the information, the group used it at the self-checkout counters at the retail stores to purchase gift cards in the amount of $200. The total estimated loss is approximately $29,000.
On January 12, 2016, the Hudson Police Department were notified that the group was in the store purchasing gift cards. The police responded to the store and pursued the group into Tyngsborough, Massachusetts, where they were arrested by the Tyngsborough Police. Numerous cards and a skimming device were found in the vehicle.
The case was investigated by the Hudson Police Department, the Londonderry Police Department, the Manchester Police Department, the Tyngsborough Police Department and the New Hampshire State Police Forensic Laboratory. Numerous other departments and the staffs at various Sam’s Club stores assisted in the investigation. The case was prosecuted by Assistant U.S. Attorney Donald A. Feith.
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Stilwell Woman Sentenced to 77 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that REGINA ANN BALLARD, age 38, of Stilwell, Oklahoma, was sentenced to 77 months imprisonment and 3 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
The Information alleged that on or about December 13, 2015, within the Eastern District of Oklahoma, the defendant, REGINA ANN BALLARD, a/k/a Regina Hummingbird, did knowingly and intentionally conspire, confederate and agree with others known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Springfield Man Sentenced to 15 Years for Firearm Used in ShootingRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for illegally possessing a firearm that was involved in a local shooting.
Michael A. Sheehan, 39, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. Sheehan was sentenced as an armed career criminal due to his prior felony convictions.
On Dec. 13, 2016, Sheehan pleaded guilty to being a felon in possession of a firearm. Sheehan admitted he was in possession of a Smith and Wesson 9mm pistol when he was arrested on May 11, 2016. Springfield police officers located Sheehan during their investigation into an incident a few days earlier in which Sheehan shot and injured another person. An officer removed the firearm, which was the same firearm used in the shooting, from Sheehan’s waistband.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sheehan has two prior felony convictions for distributing a controlled substance and a prior felony conviction for possessing a controlled substance with the intent to distribute.
This case was prosecuted by Special Assistant U.S. Attorney Jody Larison. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Springfield, Mo., Police Department.
Six Individuals Found Guilty of Health Care FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that on May 9th, after over four weeks of trial, a federal jury returned guilty verdicts against six individuals charged with committing approximately $13,655,094 in Medicare fraud.
Specifically, HENRY EVANS, age 71, was found guilty of five counts of health care fraud; MICHAEL JONES, age 47; PAULA JONES, age 45; SHELTON BARNES, age 62; GREGORY MOLDEN, age 60, all of New Orleans; and JONATHON NORA, age 29, of River Ridge, were all found guilty of conspiracies to commit health care fraud and to defraud the United States and to receive and pay health care kickbacks, and health care fraud. BARNES, MICHAEL JONES, MOLDEN, and NORA were also found guilty of individual counts of health care fraud. Additionally, BARNES was found guilty of obstruction of a federal audit.
The Second Superseding Indictment is related to the Indictment returned in March 2015 charging Lisa Crinel and others with health care fraud. Nineteen individuals and/or companies pleaded guilty before trial to charges associated with the original Indictment.
According to the Second Superseding Indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare for medically unnecessary home health services for patients who were not homebound. DRS. BARNES, EVANS, MOLDEN and MICHAEL JONES, known as “House Doctors,” ordered home health services for Medicare beneficiaries who had no legitimate medical necessity. The House Doctors falsely signed home health orders regardless of the beneficiaries’ needs, homebound status, or diagnoses. In return, DRS. BARNES, EVANS, and MOLDEN received monthly payments fraudulently characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services. Instead of receiving monthly payments from the home health agency, Abide hired PAULA JONES, DR. MICHAEL JONES’ wife and, thereafter, inflated salary payments to PAULA JONES in order to pay MICHAEL JONES’ fees for fraudulently certifying home health for ineligible Medicare beneficiaries.
Marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary. Once NORA determined that the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an Abide House Doctor, well knowing that the individual referral to Abide was by a Marketer, instead of the beneficiary’s own health care professional.
Abide generated plans of care reflecting the falsely created assessments. The plans of care were given to DRS. BARNES, EVANS, MOLDEN, and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health. PAULA JONES fraudulently billed Medicare, on behalf of Abide, for the medically unnecessary home health services.
The Superseding Indictment also charged SHELTON BARNES with obstruction of a federal audit in connection with him billing Medicare Part B for services related to the medically unnecessary home health services.
DR. SHELTON BARNES faces a possible maximum sentence of 170 years imprisonment, DR. HENRY EVANS faces a possible maximum sentence of 50 years, DR. GREGORY MOLDEN faces a possible maximum sentence of 115 years, and DR. MICHAEL JONES faces a possible maximum sentence of 95 years. Additionally, JONATHON NORA faces a possible maximum sentence of 25 years and PAULA JONES faces a possible maximum sentence of 15 years. Defendants are also subject to a maximum $250,000 fine for each count of conviction.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Hayden Brockett, Maria Carboni, and Sharan Lieberman prosecuted the case.
Schenectady Man Pleads Guilty to Drug ConspiracyRead the Press Release
ALBANY, NEW YORK – Elijah Jones, age 30, of Schenectady, New York, pled guilty yesterday to conspiring to distribute crack cocaine and heroin.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
As part of his guilty plea, Jones admitted that, in 2015 and 2016, he conspired with others to distribute crack cocaine and heroin in Schenectady. Jones acknowledged that he obtained crack cocaine and heroin from suppliers and worked with a partner to distribute these drugs to customers out of a residence on Paige Street in Schenectady.
Jones, who is in custody, faces 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life. Sentencing is scheduled for September 11, 2017 in Albany before Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and the Schenectady County Sheriff’s Department, and is being prosecuted by Assistant United States Attorneys Wayne A. Myers and Joseph A. Giovannetti.
Salvadoran Man Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Ramiro Martinez-Chacon, age 43, and a citizen of El Salvador, was sentenced today to time served (92 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Martinez-Chacon admitted that he was a citizen of El Salvador, and that he returned to the United States after he was previously removed to El Salvador. Martinez-Chacon was removed from the United States to El Salvador on December 19, 2000.
On February 7, 2017, Martinez-Chacon was arrested by ICE officers in Hudson, New York, where he had been residing.
Following his sentencing, Martinez-Chacon was remanded to the custody of the Department of Homeland Security, which will place Martinez-Chacon into removal proceedings.
This case was investigated by ICE-ERO in Latham, New York, and prosecuted by Assistant United States Attorney Edward P. Grogan.
Sallisaw Man Sentenced to 168 Months for Drug Conspiracy, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that DUSTY ALLEN DRYWATER, age 34, of Sallisaw, Oklahoma, was sentenced to 168 months imprisonment and 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B); and for FELON IN POSSESSION OF A FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) & 2.
The Superseding Indictment alleged that beginning in or about June 2015, until on or about January 27, 2016, the Defendant conspired with others to distribute and possess with the intent to distribute 500 grams or more of a methamphetamine mixture, a Schedule II controlled substance.
The Superseding Indictment further alleged that on or about November 25, 2015, while within the Eastern District of Oklahoma, the Defendant possessed one Glock Model 23 .40 caliber semi-automatic pistol, which was manufactured outside the state of Oklahoma. At the time the Defendant possessed the firearm, he had a previous felony conviction.
The charges arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Raleigh County man sentenced to five years in federal prison for witness tampering crimeRead the Press Release
BECKLEY, W.Va. – A Raleigh County man was sentenced today to five years in federal prison and ordered to pay a $25,000 fine for a witness tampering crime, announced United States Attorney Carol Casto. Mark Radcliffe, 60, of Shady Spring, was convicted in October 2016 of conspiracy to tamper with a witness following a three-day jury trial.
On December 23, 2015, Seth Radcliffe, the son of Mark Radcliffe, was facing kidnapping charges in an unrelated case. Witnesses for the United States testified at trial that Mark Radcliffe directed Jimmie Harper, a codefendant, to take actions to illegally influence Seth Radcliffe’s case. Harper testified that immediately following Seth Radcliffe’s arrest for kidnapping on December 23, 2015, he and Mark Radcliffe began discussing how they needed to get a witness to minimize Seth Radcliffe’s actions. Harper further testified that he and Mark Radcliffe formed a plan on December 24, 2015, to have a witness lie to law enforcement about the kidnapping.
Harper additionally testified that on January 24, 2016, he met with witnesses in Seth Radcliffe’s case in an attempt to influence testimony before a federal grand jury. Before the meeting, Harper testified that he spoke to Mark Radcliffe about the plan and obtained a letter written by Seth Radcliffe that was read aloud during the meeting. Harper also testified that during the same meeting, at Mark Radcliffe’s direction, he emphasized that the kidnapping charges against Seth Radcliffe needed to go away because of the severe penalties. Harper additionally testified that he suggested, also at Mark Radcliffe’s direction, limiting answers that could be damaging to Seth Radcliffe by responding with “I don’t know” or “I don’t remember.” Harper testified that Seth Radcliffe’s letter was not factually correct, and that he and Mark Radcliffe intended to corruptly influence witness testimony.
Text messages and phone calls admitted into evidence during the trial showed significant communication between Mark Radcliffe and Jimmie Harper prior to Harper’s meeting with the witnesses. Additionally, calls between Seth Radcliffe and Mark Radcliffe that were also admitted into evidence showed extensive communication regarding an unlawful strategy to get Seth Radcliffe’s charges dismissed.
During the sentencing hearing, United States District Judge Irene C. Berger stated that the defendant’s “conduct evidences clear disrespect for the law and criminal justice system,” and that the defendant’s actions “revictimized the target of the kidnapping.”
Harper was sentenced in August 2016 to seven years in federal prison for an unrelated federal arson crime, followed by a consecutive sentence of two years in federal prison for the witness tampering crime.
The West Virginia State Police, the Raleigh County Sheriff’s Office, the FBI, and the North Carolina State Police conducted the investigation. Assistant United States Attorneys Monica D. Coleman and Haley Bunn are in charge of the prosecution and tried the case before a federal jury. United States District Judge Irene C. Berger presided over the case and imposed the sentence.
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Portland Man Sentenced to Six Months for Failure to Register as a Sex OffenderRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Pablo Martinez, 40, most recently of Portland, was sentenced today in U.S. District Court by Judge Jon D. Levy to six months in prison and five years of supervised release for failure to register as a sex offender. He pled guilty on January 31, 2017.
According to court documents, Martinez was required to register for life as a result of a 1997 New York state conviction for the second degree rape of a 13-year-old girl. Martinez registered in New York until 2002. In May 2002, he moved and stopped registering, and a warrant issued for his arrest. Over the next 13 years, Martinez lived in various places including New Jersey, Pennsylvania, Rhode Island, and Missouri, but did not register. In August 2015, he moved to Portland, but again, did not register. In October 2015, he was arrested in Portland for assaulting his girlfriend.
In pronouncing sentence, Judge Levy stated that Martinez’ failure to register for 13 years was a serious violation that frustrated the registration law’s purpose to protect the public.
The investigation was conducted by the U.S. Marshals Service.
Porcupine Man Pleads Not Guilty to Depredation of Government PropertyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for Depredation of Government Property.
Curtis Temple, age 54, was indicted on April 18, 2017. Temple appeared before U.S. Magistrate Judge Daneta Wollmann on April 27, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Temple committing a depredation against real property maintained by the U.S. Department of the Interior, Bureau of Indian Affairs, by overstocking and overgrazing land and vegetation that resulted in damage over $1,000, between March 25, 2013, and April 18, 2017.
The charge is merely an accusation and Temple is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Department of the Interior, Bureau of Indian Affairs. U.S. Attorney Megan Poppen is prosecuting the case.
Temple was released on bond pending trial. A trial date has been set for June 27, 2017.
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Plainfield Man Charged with Distributing FentanylRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GEORGE KINNEY, 34, of Plainfield, was arrested yesterday and charged in a criminal complaint with distributing fentanyl.
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.
KINNEY appeared yesterday before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was ordered detained.
As alleged in court documents, on August 31, 2016, the Plainfield Police Department responded to a report of an untimely death of a 38-year-old female at a hotel in Plainfield. At the scene, officers seized drug and non-drug evidence, including bags that appear to have contained heroin and/or fentanyl that were located in a bathroom garbage can. The investigation revealed that KINNEY had provided the drugs to the victim and her boyfriend shortly before the victim’s death.
At the time of his arrest, it is alleged that KINNEY possessed 40 bags of heroin and/or fentanyl, most of which had identical labeling to the bags found at the hotel. Forensic analysis of the bags revealed the presence of fentanyl.
The complaint charges KINNEY with possession with intent to distribute, and distribution of fentanyl, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Plainfield Police Department. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.