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16 June 2017
Twenty-Three Alleged Vagos Outlaw Motorcycle Gang Members and Associates Indicted on Federal Racketeering ChargesRead the Press Release
LAS VEGAS, Nev. – A federal indictment was unsealed today charging 23 alleged members and associates of the Vagos Outlaw Motorcycle Gang (OMG), including some of its most senior leaders, in a conspiracy involving racketeering, murder, robbery, kidnapping and aggravated assault, among other charges.
While the indictment was returned by a grand jury in Las Vegas, earlier today, federal, state and local law enforcement officials arrested individuals in Hawaii and across Southern California and Nevada, including in the Las Vegas metro area and in Reno.
Acting Assistant Attorney Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Steven W. Myhre of the District of Nevada; Acting Executive Associate Director Derek N. Benner for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Special Agent in Charge Jill A. Snyder of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) San Francisco Field Division; Sheriff Joseph Lombardo for Clark County, Nevada; and District Attorney Christopher Hicks for Washoe County, Nevada, made the announcement.
“Today, the rule of law dealt a serious blow to the Vagos Outlaw Motorcycle Gang, a so-called ‘brotherhood’ responsible for drug addiction, death and mayhem in multiple locations, including California, Arizona, Hawaii, Oregon and Nevada,” said Acting Assistant Attorney General Blanco. “Today’s coordinated takedown of this biker organization’s leadership is a victory for all of us who respect and love our country, and a testament to the bravery and dedication of federal, state and local law enforcement men and women who to keep our communities safe.”
“Today’s indictment charges members and associates of a violent outlaw motorcycle gang with committing racketeering, murder, robbery, kidnapping, aggravated assault and other violent crimes,” said Acting U.S. Attorney Myhre. “These charges are the result of the outstanding work of multiple state, local and federal law enforcement agencies and the U.S. Attorney’s Office in our joint effort to combat crime and to address the dangerous threats facing our communities today.”
“These arrests and indictments are the culmination of a far-reaching, meticulous, long-term probe involving HSI and multiple other law enforcement agencies aimed at dealing a crippling blow to one of this country’s most ruthless and violent criminal gangs,” said Acting Executive Associate Director Benner. “Members of this organization wrongly believed themselves to be above the law and immune from justice, but as today’s enforcement actions make abundantly clear, they should not have underestimated our collective resolve.”
“The Vagos Outlaw Motorcycle Gang is a criminal organization which engages in acts of violence. Those acts, which included kidnapping and murder, threaten the safety of the communities in which the Vagos operate,” said Special Agent in Charge Snyder. “At ATF, our mission is to reduce violent crime within our communities and as a result of today’s arrests our neighborhoods are a safer place.”
“My department remains steadfast in its commitment to work in collaboration with other law enforcement agencies to disrupt and dismantle violent crime and gang activities in Clark County, Nevada,” said Sheriff Lombardo. “This RICO indictment represents a critical step toward dismantling this violent organization and clearly signals that the Las Vegas Metropolitan Police Department and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
The 12-count superseding indictment alleges that the defendants conspired to participate in the affairs of the Vagos OMG, a transnational gang with approximately 87 or more chapters in at least seven countries, on four continents, and approximately 75 chapters in the U.S., including approximately 54 chapters in Nevada and California. The indictment alleges that the Vagos OMG is a highly organized criminal organization which adheres to a hierarchical chain of command, and whose members conspired to enrich the gang; to preserve, protect and enhance the power of the gang; and to keep victims in fear of the gang through acts and threats of violence. Among other crimes, the indictment charges eight Vagos OMG leaders and members, including Ernesto Manuel Gonzalez, aka “Romeo,” for the September 23, 2011 murder of a member of the rival Hells Angels gang at the Nugget Hotel and Casino in Sparks, Nevada.
“The murder committed by Ernesto Gonzalez in the Nugget Casino was always a part of a larger criminal conspiracy, which has been made even more clear today,” said District Attorney Hicks. “Prosecuting Gonzalez for his actions has been a priority for my office. As such, we welcomed the opportunity to work closely with federal authorities in this RICO investigation that not only seeks to hold Gonzales accountable but the entire involved Vagos criminal enterprise.”
The superseding indictment also alleges that the Vagos OMG is a closed society whose members value allegiance to the gang and its fellow members above all else, do not fear authority, and exhibit a complete disdain for the rules of society. According to the allegations in the indictment, witnesses to the gang’s criminal acts are typically victims of acts of obstruction, intimidation and harassment who are too afraid to approach law enforcement or testify in court proceedings.
The 23 defendants charged for their alleged roles in the federal racketeering conspiracy and violent crimes in aid of racketeering offenses are Pastor Fausto Palafox, a/k/a “Ta Ta,” 53, of Beaumont, Calif.; Albert Lopez, a/k/a “Al,” 39, of Canyon Country, Calif.; Albert Benjamin Perez, a/k/a “Dragon Man,” 57, of Santa Barbara, Calif.; James Patrick Gillespie, a/k/a “Jimbo,” 68, of Granada Hills, Calif.; Andrew Eloy Lozano, a/k/a “Hulk,” 42, of Fontana, Calif.; Ernesto Manuel Gonzalez, a/k/a “Romeo,” of San Francisco; Victor Adam Ramirez, a/k/a “Slick,” 35, of Las Vegas; James Walter Henderson, a/k/a “CJ,” 64, of Henderson, Nev.; Steven Earl Carr, a/k/a “Big Steve,” 43, of Las Vegas; Robert Allen Coleman, a/k/a “Mayhem,” 59, of Las Vegas; Jeremy John Halgat, a/k/a “Maniak,” 39, of North Las Vegas, Nev.; Paul Jeffrey Voll, a/k/a “Shyster,” 52, of Pasadena, Calif.; John Joseph Siemer, a/k/a “Rocky,” 60, of Baldwin Park, Calif.; Bradley Michael Campos, a/k/a “Candy Man,” 50, of Alhambra, Calif.; Cesar Vaquera Morales, a/k/a “C,” 49, of San Jose, Calif.; Diego Chavez Garcia, a/k/a “Boo,” 34, of San Jose, Calif.; Edward Claridan Chelby, a/k/a “Recon,” 57, of Kailua, Hawaii; Johnny Russell Neddenriep, a/k/a “Johnny Bolts,” 51, of Reno, Nev.; Darin Kieth Grieder, a/k/a “Midget,” 48, of Sparks, Nev.; Bert Wayne Davisson, a/k/a “Flash,” 45, of Sparks, Nev.; Mathew Keith Dunlap, a/k/a “Big Mat,” 46, of Sparks, Nev., and John Chrispin Juarez, a/k/a “Quicky,” 69, of Moreno Valley, Calif.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case is being investigated by a multi-agency task force consisting of ICE-HSI; ATF; U.S. Customs and Border Protection; Las Vegas Metropolitan Police Department; Los Angeles County Sherriff’s Department; Washoe County District Attorney’s Office; San Bernardino Police Department; San Bernardino County Sheriff’s Department; Riverside County Sheriff’s Office; California Department of Justice; San Diego County Sheriff’s Department; Sparks Police Department; Washoe County Sheriff’s Department; Carson City Sheriff’s Department; Douglas County Sheriff’s Office; Reno Police Department; North Las Vegas Police Department; Long Beach Police Department; Montebello Police Department; Henderson Police Department; San Bernardino County District Attorney’s Office; Orange County, California District Attorney’s Office; Carson City District Attorney’s Office; and Clark County District Attorney’s Office.
The case is being prosecuted by Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section and Cristina D. Silva of the U.S. Attorney’s Office for the District of Nevada.###
Statement Regarding the Verdict in the Jeronimo Yanez TrialRead the Press Release
From the outset, this case has been closely monitored by the Department of Justice. An experienced career prosecutor with the United States Attorney's Office for the District of Minnesota was cross designated to assist the state prosecution team. We determined that this course of action was the strongest available avenue for a prosecution, given the higher level of intent required under the applicable federal criminal civil rights law. In the wake of today’s verdict, we are assessing whether any additional federal review is justified.
Statement Regarding Closure of Investigation of Former Oregon Governor John Kitzhaber and First Lady Cylvia HayesRead the Press Release
PORTLAND, Ore. – The investigation by the United States Attorney’s Office for the District of Oregon, the Justice Department’s Criminal Division, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation into the alleged misuse of former Governor Kitzhaber’s and Ms. Hayes’s positions for their personal benefit has concluded and no federal criminal charges will be sought. The United States will not comment further on this matter.
Springfield Man Sentenced for Dealing HeroinRead the Press Release
BOSTON – A Springfield man was sentenced yesterday in federal court in Springfield for heroin distribution.
Domingo Rosario, 31, was sentenced by U.S. District Court Judge Mark G. Mastroianni to six years in prison and three years of supervised release. In February 2017, Rosario pleaded guilty to one count of distributing and possessing with intent to distribute heroin.
Rosario, who has an extensive violent criminal history, including 2010 and 2014 state convictions for assault and battery with a dangerous weapon, sold heroin to a cooperating witness in January 2015.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Weinreb's Springfield Office prosecuted the case.
Savannah Pastor Sentenced to Federal Prison for Defrauding His ChurchRead the Press Release
SAVANNAH, GA – Corey Megill Brown, 47, the former Pastor of Second African Baptist Church in Savannah, was sentenced today by District Court Judge Lisa Godbey Wood to 28 months in prison for defrauding his former church and its parishioners of money for over 6 years. In addition to his prison sentence, Brown was also ordered to pay the Second African Baptist Church $178,140 in restitution. After serving his prison sentence, Brown will be on federal supervised release for 3 years. There is no parole in the federal system.
Brown pled guilty late last year to mail fraud. The evidence presented at Brown’s guilty plea and the sentencing hearings revealed that from 2008 to February 2014, Brown intercepted checks and others moneys sent to the church as tithes and offerings; then deposited the stolen money into an account that only he controlled and that other church leaders did not know existed. Brown opened his shadow bank account under the name “Romans 12 Ministries.” Brown used the stolen tithes and offerings for his own benefit, by withdrawing cash; by writing checks to himself that were deposited in his personal bank accounts; and, by using the debit card tied to the shadow account to make purchases from such places as leather goods stores and lingerie shops.
Acting United States Attorney Durham said, “Brown’s parishioners thought they were offering their hard earned savings so their church could do good works. Little did they know, Brown’s idea of good work was to line his own pockets. Whether you’re an attorney or accountant, a physician or pastor, if you steal from the good folks that trust you the most, then you’ll next serve time at a federal prison.”
The case was investigated by the FBI and the Savannah Chatham Metropolitan Police Department. Assistant United States Attorneys Charlie Bourne and Scarlett S. Nokes prosecuted the case on behalf of the United States. For questions, please call (912) 201-2522.
Pennsylvania Woman Sentenced to Prison for Conspiring to File Tax Returns Using Stolen IDsRead the Press Release
An Allentown, Pennsylvania resident was sentenced to serve 42 months in prison for conspiring to file tax returns using stolen IDs, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the indictment and information presented to the court, Jessenia E. Cordero, 37, operated MJ & Associates and Express Tax Services, both located in Allentown. These businesses provided tax preparation, check cashing, and other services to customers. Cordero and her co-conspirators obtained lists of Puerto Rico residents’ names and social security numbers and used these IDs to file fraudulent tax returns seeking refunds with the Internal Revenue Service (IRS). The conspirators directed the IRS to mail the refund checks to addresses they controlled or to deposit the refunds onto pre-paid debit cards. Cordero used her businesses to cash fraudulently obtained refund checks totaling approximately $4,316,103.
In addition to the term of prison imposed, Cordero was also ordered to serve three years of supervised release and to pay $3,960,070.50 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Matthew J. Kluge of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Pennsylvania Man Pleads Guilty to Attempted Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Eric S. Mann, age 33, of Howard, Pennsylvania, pled guilty today to attempting to arrange for a sexual encounter with a minor.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Mann admitted that between May 10, 2016 and August 25, 2016, he exchanged multiple online messages with an undercover officer posing as a 14-year-old boy. Mann further admitted that the messages were intended to entice the boy into meeting with him for the purpose of having sex. Mann also admitted that on the morning of August 25, 2016, he travelled to a truck stop located in Milesburg, Pennsylvania, in an effort to meet with the boy.
Mann faces at least 10 years and up to life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. Sentencing is scheduled for October 13, 2017 before United States District Judge Mae A. D’Agostino. 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. Mann will also have to register as a sex offender upon his release from prison.
This case was investigated by the FBI and the Town of Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Oxford, Indiana Man Sentenced for Wire FraudRead the Press Release
HAMMOND - Acting United States Attorney Clifford D. Johnson announced that Michael R. Bennett, 47, of Oxford, Indiana, was sentenced before District Court Judge Philip P. Simon for wire fraud.
Judge Philip P. Simon sentenced Bennett to 15 months imprisonment followed by 1 year of supervised release.
According to documents in this case, Bennett was President of the United Auto Workers Local 2317. He used his position as President to embezzle and steal more than $100,000 dollars from the Union over a five-year period.
This case was investigated by the United States Department of Labor, Office of Labor-Management Standards. This case was handled by Assistant United States Attorney Joshua P. Kolar.
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Ocala Woman Charged with Theft of Social Security Benefits After Body Found in Lake County BackyardRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an
indictment charging Susan Marie Kort (61, Ocala) with theft of government funds. If convicted, she faces a maximum penalty of 10 years in federal prison. The indictment also notifies Kort that the United States is seeking a money judgment in the amount of $35,577.60, which represents the proceeds of the alleged criminal conduct.According to the facts described in open court today, Kort’s elderly father passed away at his Lake County residence in approximately November 2011. After discovering the body, Kort buried her father in the backyard of her Eustis home and did not report the death to authorities. She then used a power of attorney for her father’s financial affairs to withdraw and spend the Social Security Administration (SSA) benefit payments that were being deposited into his bank account. The SSA eventually suspended these benefit payments in December 2013, when they were unable to contact Kort’s father.
When confronted by investigators, Kort admitted to hiding her father’s body and to defrauding the SSA by unlawfully taking his benefit payments. She eventually led investigators to her father’s grave and subsequent DNA testing confirmed the identity of the remains as Kort’s father.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Social Security Administration Office of the Inspector General and the Lake County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Norwalk Drug Dealer Sentenced to More Than 3 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY SCULLARK, also known as “A.J.” and “Ace,” 31, of Norwalk, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 40 months of imprisonment, followed by three years of supervised release, for distributing heroin, and for violating the conditions of his supervised release from a prior federal conviction.
This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police. The investigation included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance.
According to court documents and statements made in court, in May 2016, SCULLARK was intercepted over a wiretap ordering 10 “sleeves” or “bricks” (1000 dosage units) of heroin from Kenneth Brickhouse, also known as “K.E.”
On October 4, 2016, SCULLARK was arrested after he conducted a drug transaction in the parking lot of a Norwalk business. A search of SCULLARK’s person, vehicle and residence revealed approximately 65 bags of heroin, 19 small knotted bags of crack cocaine, $1,695 in cash, and eight cellphones.
SCULLARK has been detained since his arrest.
On October 8, 2013, SCULLARK was sentenced in Bridgeport federal court to 21 months of imprisonment and three years of supervised release for conspiring to possess with intent to distribute, and to distribute crack cocaine. His term of supervised release began on July 23, 2014.
On December 5, 2016, SCULLARK pleaded guilty to one count of possession with intent to distribute heroin, and to violating the conditions of his supervise release.
Brickhouse pleaded guilty and, on March 9, 2017, Judge Bolden sentenced him to 10 years of imprisonment.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Heather Cherry.
Nebraska Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that an Alliance, Nebraska, man convicted of Involuntary Manslaughter was sentenced on June 13, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael L. Ghost, age 24, was sentenced to 72 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and restitution in an amount to be determined at a later date.
Ghost was charged on February 23, 2016, and pleaded guilty on March 10, 2017. The conviction stems from Ghost driving a vehicle while intoxicated and speeding, causing it to crash, killing a passenger.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services, the Federal Bureau of Investigation, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Ghost was immediately turned over to the custody of the U.S. Marshals Service.
Nashua Man Sentenced to 63 Months in Prison for Armed Bank RobberyRead the Press Release
CONCORD, N.H. - Daniel Quinn, 48, of Nashua, New Hampshire, was sentenced to serve 63 months in federal prison for armed bank robbery, announced Acting United States Attorney John J. Farley.
According to court records and statements in court, shortly before noon on June 25, 2015, Quinn entered the St. Mary’s Bank in Hudson, New Hampshire wearing a black hat, a mask and gloves, and carrying a knife in his left hand while keeping a brown leather satchel over his left shoulder hanging by his waist on the right side in which it appeared he had a handgun. Quinn forced all of the patrons and employees, other than those behind the teller counters, to line up against a wall while he robbed one of the tellers using the knife. After getting the money from the teller, Quinn took one of the bank employees hostage in order to make his escape. Shortly after Quinn and the hostage left the bank the hostage was able to get away from Quinn and ran back into the bank, while Quinn ran in the opposite direction. Fortunately, the hostage was not physically harmed.
The Hudson Police Department responded to the bank within minutes of the robbery. A police canine, which quickly picked up Quinn’s scent, led police to a residential neighborhood close to the bank where Quinn was found hiding in the side yard of a home. Quinn was taken into custody without incident and the leather satchel, which was found within a few feet of Quinn partially covered with leaves, was seized. Inside the satchel, the money from the robbery, the knife, the gloves, the mask and other things related to the robbery were recovered. A BB gun, was also found in the satchel.
In imposing sentence today, United States District Judge Landya B. McCafferty told Mr. Quinn that his conduct at the bank that day was an act of terror.
Quinn pleaded guilty on September 13, 2016. After serving his prison sentence, Quinn will be on supervised release for three years.
This case was investigated by the FBI and the Hudson, NH Police Department and was prosecuted by Assistant United States Attorney Arnold H. Huftalen.
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Minneapolis Man Sentenced to 36 Years in Prison for Trafficking Three Minors and Producing Child PornographyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of DEUVONTAY SHELBY CHARLES, 22, to 36 years in prison for sex trafficking three minor girls and for producing and receiving child pornography of two minor girls. CHARLES was indicted on March 7, 2016, and on December 14, 2016, was convicted by a federal jury on 20 of 23 counts.
“Deuvontay Charles repeatedly victimized and abused vulnerable young girls with no remorse or acceptance of responsibility for his crimes,” said Acting United States Attorney Gregory G. Brooker. “Today, the court sentenced Charles to thirty-six years in prison and justice has been served for the victims, their families and the community. Importantly, through the dedicated efforts of law enforcement, he cannot harm another girl.”
“This case represents another successful collaborative effort by law enforcement to help victims and lock up bad guys,” said James Stuart, Anoka County Sheriff. “The trafficker’s evil actions are motivated by greed and show his willingness to destroy the lives of others for profit. This crime must continue to be brought into the open, pursued aggressively and prosecuted to the fullest extent of the law. We are very happy to continue being a part of that process!”
As proven at trial, a concerned mother reached out to the Anoka County Sheriff’s Office in July 2015 to report that CHARLES was recruiting her 17-year-old daughter to engage in prostitution. In the defendant’s private messages, he described how her daughter could “make money” and promised travel to Las Vegas and that “life will be smooth sailing.” He told her that he would provide condoms and protect her from the “clients.” CHARLES also instructed her to call him “Daddy.”
That initial report led to law enforcement identifying additional juvenile victims. A 14-year-old girl identified that CHARLES had requested sexually-explicit images of her. Between July 2 and July 4, 2015, eight images displaying the child’s genitals were sent online to CHARLES. As proven at trial, CHARLES also sent two pornographic images of an adult female and instructed the 14-year-old victim to send pictures of herself in those similar sexual poses.
Another 14-year-old victim was identified who was trafficked by CHARLES and who CHARLES used to produce sexually-explicit images in July 2015. CHARLES asked the victim to make a video of herself engaged in sexual acts. CHARLES also recruited that victim to engage in prostitution activity for him, asking if she wanted “to make money.” When asked what he meant, CHARLES replied “sex.” Knowing she was only 14 years old, CHARLES responded that while she is “kinda young,” there would be a lot of money to make.
As proven at trial, CHARLES also sent messages to another 17-year-old victim about making “quick money.” On August 21, 2015, CHARLES picked up the victim in Blaine, Minnesota, posted her as an “escort” on backpage.com, and trafficked her through August 26, 2015. CHARLES made her available for commercial sex acts at a hotel in Bloomington, Minnesota, in a room he paid for in cash and registered for under a different name. As proven at trial, CHARLES received money from the victim as a result of the sex acts that he arranged for her.
As proven at trial, when he committed these offenses, CHARLES was a registered sex offender based on a 2014 conviction in Dakota County for soliciting a child to engage in sexual conduct.
This case is the result of an investigation conducted by Homeland Security Investigations, the Minnesota Bureau of Criminal Apprehension, the Anoka County Sheriff’s Office, the Dakota County Community Corrections, the St. Paul Police Department, and the Apple Valley Police Department.
This case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
Defendant Information:
DEUVONTAY SHELBY CHARLES, 22
Minneapolis, Minn.
Convicted:
- Sex trafficking of a minor, 3 counts
- Sex trafficking by use of force, fraud and coercion, 2 counts
- Production of child pornography, 12 counts
- Receipt of child pornography, 2 counts
- Commission of felony offense involving a minor when required to register as a sex offender, 1 count
Sentenced:
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432 months in prison
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20 years supervised release
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Restitution ordered
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Members of Camden, New Jersey, Drug Trafficking Organization Sentenced to PrisonRead the Press Release
CAMDEN, N.J. – A Camden, New Jersey, man was sentenced today for his role in a crack cocaine distribution conspiracy, one of three members of a drug trafficking organization sentenced this week, Acting U.S. Attorney William E. Fitzpatrick announced.
Tony Wilson, a/k/a “Tony Langston,” a/k/a “Tone,” and a/k/a “H,” 25, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. He was sentenced today to 96 months in prison.
On June 14, 2017, Jason Boyd, a/k/a “Teddy,” a/k/a “Teddy Reek,” and a/k/a “Fatboy,” 37, was sentenced to 96 months in prison. Boyd had previously pleaded guilty to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime.
On June 13, 2017, Derek Stallworth, a/k/a “AK” and a/k/a “A,” 21, of Camden, was sentenced to 96 months in prison. Stallworth had previously pleaded guilty to the same charges for his role in the conspiracy.
All three defendants were sentenced by Judge Simandle in Camden federal court. In addition to their prison terms, they were each sentenced to five years of supervised release.
According to documents filed in this case and statements made in court:
Wilson, Boyd and Stallworth admitted their respective roles in an organization that sold crack cocaine around the 1100 block of Lansdowne Avenue in Camden. Wilson also admitted that he possessed a .40 caliber handgun in connection with the organization’s drug trafficking activities.
Wilson, Boyd, Stallworth and others were originally charged by complaint on Sept. 9, 2016, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by several members of the conspiracy.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to this week’s sentencings.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Wilson: Michael Huff Esq., Mount Ephraim, New Jersey
Boyd: Jose Ongay Esq., Mount Ephraim
Stallworth: Anne C. Singer, Haddonfield, New Jersey
Medical Imaging Provider Sentenced for Health Care FraudRead the Press Release
TOPEKA, KAN. - A man who owned a medical imaging business was sentenced Thursday to 18 months in federal prison followed by six months home detention for health care fraud, U.S. Attorney Tom Beall said today. He was ordered to pay more than $1.5 million in restitution.
Cody Lee West, 39, Paragould, Ark., owner of C & S Imaging, Inc., pleaded guilty to one count of health care fraud. C & S Imaging was a mobile independent diagnostic testing facility that provided ultra sound diagnostic testing to health care providers.
West solicited chiropractors and told them he could provide equipment and an operator at no cost to them. West fraudulently billed Medicare for musculoskeletal exams and Doppler scans that allowed him to receive up to $410 per patient for services that were not ordered by a physician, not medically necessary, not performed or not documented. He also used fraudulent methods to attempt to provide documentation for some of his bills.
Beall commended the Department of Health and Human Services, the Kansas Attorney General’s Medicaid Fraud Division and Assistant U.S. Attorney Tanya Treadway for their work on the case.
Man Sentenced for Downloading Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Sterling man who downloaded thousands of child pornography images and videos was sentenced today to five years in prison.
Stephen Thomas Crawford, 30, pleaded guilty on March 29 to one count of receipt of child pornography and one count of possession of child pornography. According to court documents, Crawford used a peer-to-peer file sharing network to download thousands of child pornography videos and images, including images and videos depicting pre-pubescent girls engaging in sexually explicit conduct.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Nathaniel Smith III and Kellen S. Dwyer prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-32.
Mail Carrier Pleads Guilty to Stealing Gift Cards from MailRead the Press Release
WICHITA, KAN. - A former mail carrier in Sheridan County pleaded guilty Friday to stealing mail he was supposed to deliver, U.S. Attorney Tom Beall said.
James N. Stephenson, 25, Hoxie, Kan., pleaded guilty to one count of mail theft. In his plea, he admitted the crime occurred while he was employed at the Post Office in Hoxie, Kan. He stole mail containing cash, gift cards and prepaid debit cards. He said he looked for birthday and anniversary cards that were likely to contain items of value.
Sentencing is set for Sept. 14. Both parties have agreed to recommend a sentence of a year and a day in federal prison. Beall commended the U.S. Postal Inspection Service - Office of Inspector General and Assistant U.S. Attorney Brent Anderson for their work on the case.
Lincoln Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Robert C. Stuart announced that United States District Judge John M. Gerrard sentenced Christopher Rueter, 46, of Lincoln, Nebraska, to 57 months in federal prison, followed by 5 years of supervised release for possession of child pornography.
On August 8, 2016, while reviewing data for Peer-to-Peer investigations, Investigators of the Lincoln Police Department observed an IP address making known child pornography files available for sharing. Further investigation revealed that an Investigator for the Nebraska Attorney General’s Office had made a previous direct connection with this same IP address and downloaded 549 files, many files depicting child pornography.
Investigation by LPD determined that Time Warner was the Internet Service Provider for the IP address used and the physical location of the user assigned the IP address was defendant’s residence in Lincoln, Nebraska. On August 16, 2016, a search warrant was executed on defendant’s residence. Defendant admitted to using BitTorrent file sharing and downloading child pornography and child erotica. Investigators performed an on-scene preview of defendant’s computer, which revealed multiple child pornography images. Seized from the location were numerous computers, external hard drives, and thumb drive devices. A complete forensic examination was completed on the seized desktop computer. Both child erotica and child pornography files were found along with more than 1500 image files of child pornography, including several image files of prepubescent minors and children under the age of 12 engaged in sexually explicit conduct. Several of the image files are of minors whose identity has been confirmed by law enforcement.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Lincoln Police Department.
Leawood Woman Charged with Importing Misbranded DrugsRead the Press Release
KANSAS CITY, KAN. - A Leawood woman was charged Friday with importing $194,000 worth of misbranded drugs, U.S. Attorney Tom Beall said.
Kathleen Stegman, 59, who owned Midwest Medical Aesthetics Center, Inc., of Leawood, Kan., was charged with obtaining Botox, Dysport, Restylane, Perlane and Sculptra from foreign sources. The drugs did not meet Food and Drug Administration labeling requirements. The crime is alleged to have occurred in 2011, 2012 and 2013.
In October 2016, Stegman was sentenced to 51 months in federal prison for tax evasion.
If convicted, she faces up to three years in federal prison, a fine up to $250,000 and forfeiture. The Food and Drug Administration’s Office of Criminal Investigation investigated. Assistant U.S. Attorney Tanya Treadway is prosecuting.
Leader of Oxycodone Distribution Ring Sentenced to 6+ Years in PrisonRead the Press Release
The leader of a prescription forgery ring that distributed hundreds of thousands of pills of oxycodone was sentenced today in U.S. District Court in Tacoma to 76 months in prison and 5 years of supervised release, announced U.S. Attorney Annette L. Hayes. ANTHONY BALLENGER, 29, pleaded guilty in March 2017 to unauthorized access to a protected computer, aggravated identity theft, and conspiracy to distribute oxycodone. At the sentencing hearing U.S. District Judge Ronald B. Leighton said, “The greatest common denominator with criminal activity in this society is drugs…This is a serious offense—it has a corrosive effect on trust in our institutions and healthcare.”
“This defendant is responsible for thousands of dangerous pills ending up in the wrong hands,” said U.S. Attorney Annette L. Hayes. “We are in the midst of an opioid crisis that is killing too many members of our community. I commend investigators who uncovered this defendant’s crimes and put him out of business.”
According to records filed in the case, BALLENGER was the leader of a sophisticated ring that stole identity information of various medical professionals to forge prescriptions for powerful painkillers. The conspirators used stolen DEA registration numbers to create phony prescriptions while using various online tools to make it appear that the prescriptions had been issued by actual medical providers. In order to lull pharmacies into filling the prescriptions, BALLENGER illegally accessed various online databases, including government databases, and altered the contact information for the medical professionals to divert inquiries from pharmacies to himself. BALLENGER also posed as the medical professionals whose identities he stole when accessing online prescription-delivery systems, which he then used to send electronic prescriptions to pharmacies throughout Western Washington. After obtaining thousands of pills, the conspirators distributed them to users throughout the Puget Sound region.
Co-defendant Lea Espy, 49, of Auburn, Washington, who used the fake identities to obtain the drugs at pharmacies is scheduled to be sentenced next month. Two other defendants are currently participating in the Drug Reentry Alternative Model (DREAM) court in the district. A fourth defendant, Stosh Satkowski, 24, of Tacoma is currently a fugitive.
The case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad which contains task force officers from Tacoma and Seattle Police Departments and the Washington State Patrol.
The case is being prosecuted by Assistant United States Attorney Siddharth Velamoor.
Justice Department Expresses Concerns to Kansas Real Estate Commission Regarding Regulation That Would Prohibit Real Estate Agents from Offering Gift Cards to Home BuyersRead the Press Release
The Department of Justice’s Antitrust Division sent a letter to the Kansas Real Estate Commission expressing its concerns regarding K.A.R. 86-3-32, a proposed regulation that would bar Kansas real estate brokers from offering gift cards to home buyers. According to the Division, this regulation would reduce competition and the likely effect would be to harm home buyers in Kansas.
A copy of the Division’s June 16, 2017, letter is attached.
Jury Convicts Schenectady Siblings of Immigration FraudRead the Press Release
ALBANY, NEW YORK – A federal jury yesterday voted to convict siblings Mario Cardenas, age 34, and Jennifer Cardenas, age 32, both of Schenectady, New York, of making false statements under oath in applications to U.S. Citizenship and Immigration Services.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The evidence at trial established that Mario Cardenas and Jennifer Cardenas, both born and raised in Guatemala, entered the United States with their mother, Susana Alarcon Moscoso, in February 1999. They entered on visitor visas. Once in the United States, the siblings claimed under oath that they were born in El Salvador, a Temporary Protected Status (TPS) country. Guatemala is not a TPS country. The TPS designation means that under certain circumstances, citizens of designated countries are granted temporary immigration status in the United States, and can work here, because returning home may be too dangerous.
Because of these false statements, U.S. Citizenship and Immigration Services (USCIS) granted the siblings protected status, which allowed them to live and work in the United States for over 15 years. As part of their fraudulent scheme, the siblings submitted forged Salvadoran birth certificates to USCIS, and omitted information about their Guatemalan births and citizenship from annual TPS and employment authorization renewal forms.
The defendants face up to 10 years in prison, up to 3 years of post-imprisonment supervised release, and a fine of up to $250,000. 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. Senior United States District Judge Frederick J. Scullin Jr. is scheduled to sentence them on October 16, 2017.
June 9, 2017, their mother, Susana Alarcon Moscoso, pled guilty to falsely claiming Salvadoran citizenship. In her guilty plea, she admitted that she is a citizen of Guatemala who has never lived in, or been a citizen of, El Salvador. Judge Scullin is scheduled to sentence her on October 10, 2017.
This case was investigated by HSI. The case is being prosecuted by Assistant U.S. Attorneys Jeffrey C. Coffman and Joseph A. Giovannetti.
Jefferson County Convicted Felon Sentenced to 5 Years for Federal Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A 44-year-old Beaumont man has been sentenced to five years in federal prison for firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
David Warren Childress pleaded guilty on Mar. 6, 2017, to being a felon in possession of a firearm and was sentenced to 60 months in federal prison on June 15, 2017 by U.S. District Judge Ron Clark.
According to information presented in court, on Dec. 10, 2015, law enforcement officers received information that Childress had just been seen throwing a firearm in the trash at the Shell gas station located at the corner of College Street and Major Drive in Beaumont. Officers were dispatched to the location where a 20-gauge shotgun with a modified barrel was found in the trash. Officers then went to Childress’ residence where they received consent to search. During the search, officers located another rifle in the living room of the home. Childress is a convicted felon, having been found guilty of burglary of a habitation in Walker County in 1994 and possession of cocaine in Harris County in 2010. As a convicted felon, Childress is prohibited by federal law from owning or possessing firearms.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco and Firearms, and the Beaumont Police Department. This case is being prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on June 15, 2017 and entering pleas of Not Guilty were:
- JABRILL MUSTAFA WEATHERSBY, a 49-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, WEATHERSBY faces 40 years in prison, and $1,000,000 in fines. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula HIDTA. PACER Case Reference. 17-22
Appearing before U.S. Magistrate Cavan in Billings on June 12, 2017 and entering pleas of Not Guilty were:
- DALE DUWAYNE BUERKLE, a 66-year-old resident of Plevna, appeared on charges of unlawful taking of a bald eagle, unlawful taking of a migratory bird, and unlawful use of registered pesticide. If convicted of the most serious charges contained in the information, BUERKLE faces 1 year in prison, and $100,000 in fines. The case was investigated by U.S. Fish and Wildlife Service. PACER Case Reference. 17-67
Appearing before U.S. Magistrate Johnson in Great Falls on June 12, 2017 and entering pleas of Not Guilty were:
- CARI ANN MARTIN, a 47-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, MARTIN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations, the Great Falls Police Department and the Russell Country Drug Task Force. PACER Case Reference. 17-41
- JOHN KEVIN MOORE, a 54-year-old resident of Kalispell, appeared on charges of wire fraud, and engaging in monetary transactions in property derived from specified unlawful activity. If convicted of the most serious charges contained in the indictment, MOORE faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-42
Appearing before U.S. Magistrate Lynch in Missoula on June 12, 2017 and entering pleas of Not Guilty were:
- STEPHEN ROY GOODMAN, a 23-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine and heroin, and possession with intent to distribute methamphetamine and heroin. If convicted of the most serious charge contained in the indictment, GOODMAN faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula HIDTA. PACER Case Reference. 17-19
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston Man Sentenced to 30 Years in Federal Prison for East Texas Drug ConspiracyRead the Press Release
BEAUMONT, Texas – A 45-year-old Houston man has been sentenced to 30 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Juan Duque-Tinoco pleaded guilty on Jan. 31, 2017, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 360 months in federal prison on June 14, 2017 by U.S. District Judge Marcia Crone.
According to information presented in court, beginning in March 2014, federal agents began in investigation of a drug trafficking organization that was distributing large amounts of methamphetamine from Houston to Beaumont, Texas and then throughout the United States. Duque-Tinoco was identified as the main supplier of methamphetamine, which was confirmed to be directly supplied by sources in Mexico with the Knights of Templar Cartel. Duque-Tinoco received shipments of methamphetamine from Mexico in liquid form and then he converted it to crystal form at a location in Houston. Undercover agents purchased a total of 75.6 grams of methamphetamine from Duque-Tinoco in March and April 2014. In August 2014, Duque-Tinoco was deported to Mexico and then arrested on Aug. 22, 2014, at the Texas-Mexico border as he tried to illegally reenter the United States. In June 2015, Duque-Tinoco returned to the United States, but during his absence, he made arrangements for his illegal drug activity to continue using others to complete the drug transactions. After returning to the United States, Duque-Tinoco resumed selling illegal narcotics and sold 135 grams of methamphetamine, 224 grams of heroin and 13.7 grams of cocaine to undercover officers. Later that same month, Duque-Tinoco was arrested following a traffic stop in which 1.7 kilograms of methamphetamine was recovered. During this investigation, seven court ordered wire taps were utilized and agents calculated more than 63 kilograms of methamphetamine, 18 kilograms of cocaine, 20 pounds of marijuana, and a half-pound of heroin was distributed.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Houston Man Sentenced for East Texas Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 37-year-old Houston man has been sentenced to prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Adam Zermeno pleaded guilty on Jan. 6, 2017, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 200 months in federal prison on June 15, 2016 by U.S. District Judge Ron Clark.
According to information presented in court, beginning in February 2016, undercover law enforcement officers purchased a total of 2 ½ ounces of methamphetamine from Zermeno, who was supplying methamphetamine in Houston and the Beaumont area. On Sep. 8, 2016, law enforcement officers in Jefferson County conducted a traffic stop on a vehicle driven by Zermeno. Zermeno was traveling with Gina Gongora and their two small children. A drug-detecting dog alerted on the vehicle during the traffic stop. A search of the vehicle revealed a bag in the trunk, which contained marijuana, cocaine, pills, crack cocaine, and 83.3 grams of methamphetamine. Gongora immediately claimed the bag belonged to her. Zermeno and Gongora were arrested and indicted on Nov. 2, 2016 by a federal grand jury on drug trafficking charges.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, the Orange County Sheriff’s Office, Orange Police Department and Jefferson County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Hot Springs Man Sentenced for Attempted Enticement of MinorsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Hot SpringsRapid City, South Dakota, man convicted of Attempted Enticement of Minors Using the Internet was sentenced on June 13, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Dustin Christopher Scott, age 33, was sentenced to 12 years of imprisonment, followed by 15 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Scott was charged on August 23, 2016, and pleaded guilty on March 10, 2017. The conviction stems from Scott attempting to entice minor females to engage in illegal sexual activity using the internet.
This case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Scott was immediately turned over to the custody of the U.S. Marshals Service.
Greensboro, North Carolina Co-Conspirator Convicted of Defrauding Victims of Millions of DollarsRead the Press Release
June 16, 2017
FOR IMMEDIATE RELEASE www.justice.gov/usao/md
Contact Elizabeth Morse at (410) 209-4885
Greenbelt, Maryland – A federal jury convicted defendant Olusola Olla, 50, of Greensboro, NC, on June 16, 2017, for conspiracy to commit money laundering and structuring financial transactions arising from a scheme to defraud vulnerable victims of millions of dollars. The following defendants were previously convicted at trial or pleaded guilty:
Gbenga Benson Ogundele, a/k/a “Benson Ogundele,” age 58, of Laurel, Maryland;
Victor Oyewumi Oloyede, age 42, of Laurel;
Olusegun Charles Ogunseye, a/k/a “Charles O. Ogunseye,” age 58, of Laurel;
Babtunde Emmanuel Popoola, a/k/a “Emmanuel Popoola” and “Tunde Popoola, age 34, of Bowie, Maryland; his sister,
Mojisola Tinuola Popoola, a/k/a “Mojisola Oluwakemi Tin Popoola” and “Moji T. Popoola,” age 42, of Laurel;
Adeyinka Olubunmi Awolaja, Jr., a/k/a “Yinka O. Awolaja, Jr.,” age 34, formerly of New Carrolltown, Maryland; and
Olufemi Wilfred Williams, a/k/a “Wilfred Olufemi Williams” and “Femi Williams,” age 26, of Owings Mills, Maryland.
The conviction was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.
According to evidence presented at the 11-day trial, from January 2011 to May 18, 2015, members of the conspiracy searched online dating websites to initiate romantic relationships with vulnerable male and female individuals. They phoned, emailed, texted and used internet chat messenger services to form romantic relationships with the victims, who lived in Maryland and around the country.
Witnesses testified that members of the conspiracy used false stories and promises to convince the victims to give them money, including fake hospital bills, plane trips to visit the victims, and problems with overseas businesses. Olla and co-conspirators opened bank accounts, called “drop accounts,” that received millions of dollars from the victims. Testimony at trial showed that victims provided money to the defendants as a result of the false stories and promises, either by depositing money directly into drop accounts controlled by the defendants, or by checks sent to them. Payments from victims ranged from $1,720 to $50,000.
Olla and the co-conspirators dispersed money received from the victims by transferring funds to other accounts they controlled, by obtaining cashier’s checks, and by writing checks to individuals or entities, all done to conceal the nature, source, and control of those assets. Relatedly, many of the currency transactions were “structured,” or designed to avoid the filing of currency transaction reports, which financial institutions are required to file with the Internal Revenue Service for currency transactions exceeding $10,000.
Olla faces a maximum sentence of 20 years in prison for conspiring to commit money laundering and a maximum of 5 years in prison for structuring financial transactions. Sentencing has not yet been scheduled for Olla.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom and Ray D. McKenzie, who are prosecuting the case.
Georgia Real Estate Investor Convicted of Bid Rigging and Bank Fraud at Public Foreclosure AuctionsRead the Press Release
A federal jury convicted a real estate investor of bid rigging and bank fraud related to public foreclosure auctions held in Georgia, the Department of Justice announced today.
Douglas L. Purdy was convicted today following a two-week trial before the Honorable Richard W. Story in Gainesville, Georgia. The jury convicted Purdy on one count of bid rigging and two counts of bank fraud for participating in the charged conspiracy and scheme at Forsyth County, Georgia, foreclosure auctions from 2008 to 2011.
The evidence at trial showed that Purdy and his co-conspirators agreed not to compete for real estate at foreclosure auctions in Forsyth County and defrauded lender banks and homeowners. Among other methods, the conspirators held secret “second auctions” of properties they had obtained through rigged bids, dividing among themselves the auction proceeds that should have gone to pay off debts against the properties and, in some cases, to homeowners.
A federal grand jury in the Northern District of Georgia returned an indictment against Purdy on Feb. 3, 2016. Including Purdy’s conviction, 23 real estate investors have either pleaded guilty or been convicted after trial as a result of the Department’s ongoing antitrust investigations into bid rigging at public foreclosure auctions in the Atlanta area.
The Antitrust Division’s Washington Criminal II Section and the FBI’s Atlanta Division conducted the investigation, with assistance from the U.S. Attorney’s Office of the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000 or call the FBI tip line at 415-553-7400.
Genesis Healthcare, Inc. Agrees to Pay Federal Government $53.6 Million to Resolve Allegations of Medically Unnecessary Rehabilitation Therapy and Hospice ServicesRead the Press Release
SAN FRANCISCO- The Justice Department announced today that Genesis Healthcare, Inc. (Genesis) will pay the federal government $53,639,288.04, including interest, to settle six federal lawsuits and investigations regarding the submission of false claims for medically unnecessary therapy and hospice services, and grossly substandard nursing home care. Genesis, headquartered in Kennett Square, Pennsylvania, owns and operates through its subsidiaries skilled nursing facilities, assisted/senior living facilities, and a rehabilitation therapy business. According to the allegations in the lawsuits, companies and facilities acquired by Genesis violated the False Claims Act. The settlement announced today resolves the claims and investigations into the allegations.
“We are committed to protecting the federal health care programs and the patients who are enrolled in them,” said U.S. Attorney Brian J. Stretch. “We will continue to vigorously pursue companies and individuals who provide care that is grossly deficient or unnecessary.”
“We will continue to hold health care providers accountable if they bill for unnecessary or substandard services or treatment,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s settlement demonstrates our unwavering commitment to protect federal health care programs against unscrupulous providers.”
This settlement resolves four sets of allegations. First, the settlement resolves allegations involving Skilled Healthcare Group, Inc. (SKG) and its subsidiaries (collectively, the Skilled Companies). Specifically, the settlement resolves allegations that from April 1, 2010 through March 31, 2013, SKG and its subsidiaries Skilled Healthcare, LLC (Skilled LLC) and Creekside Hospice II, LLC knowingly submitted or caused to be submitted false claims to Medicare for services performed at the Creekside Hospice facility in Las Vegas, Nevada by: (1) billing for hospice services for patients who were not terminally ill and so were not eligible for the Medicare hospice benefit and (2) billing inappropriately for certain physician evaluation management services.
Second, this settlement resolves allegations that from January 1, 2005 through December 31, 2013, SKG and its subsidiaries Skilled LLC and/or Hallmark Rehabilitation GP, LLC knowingly submitted or caused to be submitted false claims to Medicare, TRICARE, and Medicaid at certain facilities by providing therapy to certain patients longer than medically necessary, and/or billing for more therapy minutes than the patients actually received. The settlement also resolves allegations that those companies fraudulently assigned patients a higher Resource Utilization Group (RUG) level than necessary. Medicare reimburses skilled nursing facilities based on a patient’s RUG level, which is supposed to be determined by the amount of skilled therapy required by the patient.
Third, this settlement resolves allegations that from January 1, 2008, through September 27, 2013, Sun Healthcare Group, Inc., SunDance Rehabilitation Agency, Inc., and SunDance Rehabilitation Corp. (collectively, the Sun Companies) knowingly submitted or caused the submission of false claims to Medicare Part B by billing for outpatient therapy services provided in the State of Georgia that were (1) not medically necessary or (2) unskilled in nature.
Finally, this settlement resolves allegations that between September 1, 2003, and January 3, 2010, Skilled LLC submitted false claims to the Medicare and Medi-Cal programs at certain of its nursing homes for services that were grossly substandard and/or worthless and therefore ineligible for payment. More specifically, the settlement resolves allegations that Skilled LLC violated certain essential requirements that nursing homes are required to meet to participate in and receive reimbursements from government healthcare programs and failed to provide sufficient nurse staffing to meet residents’ needs.
The Skilled Companies were acquired by Genesis after the conduct at issue in this settlement. The Sun Companies were acquired by Genesis in December 2012.
“Safeguarding federal health care programs and patients is a priority,” said Acting U.S. Attorney for the District of Nevada Steven W. Myhre. “Today’s settlement is an example of the U.S. Attorney’s Office’s commitment to holding medical providers accountable for fraudulent billing of medically unnecessary treatments and services. We are committed to protecting federal health care programs, including Medicare, TRICARE, and Medicaid, which are funded by taxpayer dollars.”
“Health care providers that falsify claims for unauthorized or unnecessary services steal precious taxpayer dollars, and we will aggressively seek to recover those funds for the program that needs them,” said U. S. Attorney for the Northern District of Georgia John Horn.
“It’s disturbing when health care companies bill Medicare and Medicaid to care for vulnerable patients, but provide grossly substandard care and medically unnecessary services just to boost company profits,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services, Office of Inspector General. “We will continue to crack down on medical providers who betray the public’s trust and the needs of vulnerable patients through fraudulent billing and irresponsible practices.”
“At a time when the cost of healthcare weighs heavy on many taxpayers, it is imperative that people who illegally bill our healthcare system are held accountable and forced to pay restitution,” said FBI Atlanta Special Agent in Charge David J. LeValley. “This case is an example of how committed the FBI and its partners are to keeping healthcare providers from abusing the system.”
The settlement, which was based on the company’s ability to pay, resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Joanne Cretney-Tsosie, Jennifer Deaton, Kimberley Green, Camaren Hampton, Teresa McAree, Terri West, and Brian Wilson, former employees of companies acquired by Genesis. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The government may intervene and file its own complaint in such a lawsuit. In this case, the whistleblowers will receive a combined $9.67 million as their share of the recovery.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
The Northern District of California case is docketed as United States, ex rel. West v. Skilled Healthcare Group Inc., et. al., 11-02658-ED (N.D. Cal.). Assistant United States Attorneys Kimberly Friday, Erica Blachman Hitchings, and Gioconda Molinari, with the assistance of Tina Louie, handled the West case and a related investigation. Additional docketed matters include United States, ex rel. Cretney-Tsosie v. Creekside Hospice II, LLC, 2:13-cv-167-HDM (D. Nev.); United States ex rel. McAree v. SunDance Rehabilitation Corp., 1:12-CV-4244 (N.D. Ga.); United States ex rel. Deaton v. Skilled Healthcare Group, Inc. et al., Civ. 4:14-cv-00219 (W.D. Mo.); and United States ex rel. Wilson v. Skilled Healthcare Group, Inc. et al., Civ. 14-cv-860 (W.D. Mo.). This case is the result of an investigation by the U.S. Attorneys’ Offices for the Northern District of California, the Northern District of Georgia, the Western District of Missouri, and the District of Nevada; the Department of Health and Human Services, Office of Inspector General; the U.S. Department of Justice Civil Division’s Commercial Litigation Branch; and the Department of Defense’s Defense Criminal Investigative Service.
If you have concerns about care being provided at a nursing home in California, you can contact the California Long Term Care Ombudsman at 1-800-231-4024, or your Local Long Term Ombudsman. A directory of local services can be found at https://www.aging.ca.gov/programs/ltcop/. You can also contact the United States Attorney’s Office for the Northern District of California at https://www.justice.gov/usao-ndca/elder-justice-task-force or 1-415-436-7102.
Genesis Healthcare Inc. Agrees to Pay Federal Government $53.6 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation Therapy and Hospice ServicesRead the Press Release
The Justice Department announced today that Genesis Healthcare Inc. (Genesis) will pay the federal government $53,639,288.04, including interest, to settle six federal lawsuits and investigations alleging that companies and facilities acquired by Genesis violated the False Claims Act by causing the submission of false claims to government health care programs for medically unnecessary therapy and hospice services, and grossly substandard nursing care. Genesis, headquartered in Kennett Square, Pennsylvania, owns and operates through its subsidiaries skilled nursing facilities, assisted/senior living facilities, and a rehabilitation therapy business.
“We will continue to hold health care providers accountable if they bill for unnecessary or substandard services or treatment,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s settlement demonstrates our unwavering commitment to protect federal health care programs against unscrupulous providers.”
This settlement resolves four sets of allegations. First, the settlement resolves allegations that from April 1, 2010 through March 31, 2013, Skilled Healthcare Group Inc. (SKG) and its subsidiaries, Skilled Healthcare LLC (Skilled LLC) and Creekside Hospice II LLC, knowingly submitted or caused to be submitted false claims to Medicare for services performed at the Creekside Hospice facility in Las Vegas, Nevada by: (1) billing for hospice services for patients who were not terminally ill and so were not eligible for the Medicare hospice benefit and (2) billing inappropriately for certain physician evaluation management services.
Second, this settlement resolves allegations that from Jan. 1, 2005 through Dec. 31, 2013, SKG and its subsidiaries, Skilled LLC and Hallmark Rehabilitation GP LLC, knowingly submitted or caused to be submitted false claims to Medicare, TRICARE, and Medicaid at certain facilities by providing therapy to certain patients longer than medically necessary, and/or billing for more therapy minutes than the patients actually received. The settlement also resolves allegations that those companies fraudulently assigned patients a higher Resource Utilization Group (RUG) level than necessary. Medicare reimburses skilled nursing facilities based on a patient’s RUG level, which is supposed to be determined by the amount of skilled therapy required by the patient.
Third, this settlement resolves allegations that from Jan. 1, 2008, through Sept. 27, 2013, Sun Healthcare Group Inc., SunDance Rehabilitation Agency Inc., and SunDance Rehabilitation Corp. knowingly submitted or caused the submission of false claims to Medicare Part B by billing for outpatient therapy services provided in the State of Georgia that were (1) not medically necessary or (2) unskilled in nature.
Finally, this settlement resolves allegations that between Sept. 1, 2003 and Jan. 3, 2010, Skilled LLC submitted false claims to the Medicare and Medi-Cal programs at certain of its nursing homes for services that were grossly substandard and/or worthless and therefore ineligible for payment. More specifically, the settlement resolves allegations that Skilled LLC violated certain essential requirements that nursing homes are required to meet to participate in and receive reimbursements from government healthcare programs and failed to provide sufficient nurse staffing to meet residents’ needs.
SKG and its subsidiaries were acquired by Genesis after the conduct at issue in this settlement. Sun Healthcare Group Inc., SunDance Rehabilitation Agency Inc. and SunDance Rehabilitation Corp. were acquired by Genesis in December 2012.
“Safeguarding federal health care programs and patients is a priority,” said Acting U.S. Attorney Steven W. Myhre for the District of Nevada. “Today’s settlement is an example of the U.S. Attorney’s Office’s commitment to holding medical providers accountable for fraudulent billing of medically unnecessary treatments and services. We are committed to protecting federal health care programs, including Medicare, TRICARE, and Medicaid, which are funded by taxpayer dollars.”
“We are committed to protecting the federal health care programs and the patients who are enrolled in them,” said U.S. Attorney Brian J. Stretch for the Northern District of California. “We will continue to vigorously pursue companies and individuals who provide care that is grossly deficient or unnecessary.”
“Health care providers that falsify claims for unauthorized or unnecessary services steal precious taxpayer dollars, and we will aggressively seek to recover those funds for the program that needs them,” said U. S. Attorney John Horn for the Northern District of Georgia.
“It’s disturbing when health care companies bill Medicare and Medicaid to care for vulnerable patients, but provide grossly substandard care and medically unnecessary services just to boost company profits,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to crack down on medical providers who betray the public’s trust and the needs of vulnerable patients through fraudulent billing and irresponsible practices.”
“At a time when the cost of healthcare weighs heavy on many taxpayers, it is imperative that people who illegally bill our healthcare system are held accountable and forced to pay restitution,” said FBI Atlanta Special Agent in Charge David J. LeValley. “This case is an example of how committed the FBI and its partners are to keeping healthcare providers from abusing the system.”
The settlement, which was based on the company’s ability to pay, resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Joanne Cretney-Tsosie, Jennifer Deaton, Kimberley Green, Camaren Hampton, Teresa McAree, Terri West, and Brian Wilson, former employees of companies acquired by Genesis. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The government may intervene and file its own complaint in such a lawsuit. The whistleblowers will receive a combined $9.67 million as their share of the recovery in this case.
This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Northern District of California, the Northern District of Georgia, the Western District of Missouri, and the District of Nevada and HHS-OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
The cases are docketed as United States, ex rel. Cretney-Tsosie v. Creekside Hospice II, LLC, Case No. 2:13-cv-167-HDM (D. Nev.); United States ex rel. McAree v. SunDance Rehabilitation Corp., Case No. 1:12-CV-4244 (N.D. Ga.); United States, ex rel. West v. Skilled Healthcare Group Inc., et. al., Case No. 11-02658-ED (N.D. Cal.); United States ex rel. Deaton v. Skilled Healthcare Group, Inc. et al., Case No. 4:14-cv-00219 (W.D. Mo.); and United States ex rel. Wilson v. Skilled Healthcare Group, Inc. et al., Case No. 14-cv-860 (W.D. Mo.).
Genesis Healthcare Inc. Agrees to Pay Federal Government $53.6 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation Therapy and Hospice ServicesRead the Press Release
LAS VEGAS, Nev. - The Justice Department announced today that Genesis Healthcare Inc. (Genesis) will pay the federal government $53,639,288.04, including interest, to settle six federal lawsuits and investigations alleging that companies and facilities acquired by Genesis violated the False Claims Act by causing the submission of false claims to government health care programs for medically unnecessary therapy and hospice services, and grossly substandard nursing care. Genesis, headquartered in Kennett Square, Pennsylvania, owns and operates through its subsidiaries skilled nursing facilities, assisted/senior living facilities, and a rehabilitation therapy business.
“We will continue to hold health care providers accountable if they bill for unnecessary or substandard services or treatment,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s settlement demonstrates our unwavering commitment to protect federal health care programs against unscrupulous providers.”
This settlement resolves four sets of allegations. First, the settlement resolves allegations that from April 1, 2010 through March 31, 2013, Skilled Healthcare Group Inc. (SKG) and its subsidiaries, Skilled Healthcare LLC (Skilled LLC) and Creekside Hospice II LLC, knowingly submitted or caused to be submitted false claims to Medicare for services performed at the Creekside Hospice facility in Las Vegas, Nevada by: (1) billing for hospice services for patients who were not terminally ill and so were not eligible for the Medicare hospice benefit and (2) billing inappropriately for certain physician evaluation management services.
Second, this settlement resolves allegations that from Jan. 1, 2005 through Dec. 31, 2013, SKG and its subsidiaries, Skilled LLC and Hallmark Rehabilitation GP LLC, knowingly submitted or caused to be submitted false claims to Medicare, TRICARE, and Medicaid at certain facilities by providing therapy to certain patients longer than medically necessary, and/or billing for more therapy minutes than the patients actually received. The settlement also resolves allegations that those companies fraudulently assigned patients a higher Resource Utilization Group (RUG) level than necessary. Medicare reimburses skilled nursing facilities based on a patient’s RUG level, which is supposed to be determined by the amount of skilled therapy required by the patient.
Third, this settlement resolves allegations that from Jan. 1, 2008, through Sept. 27, 2013, Sun Healthcare Group Inc., SunDance Rehabilitation Agency Inc., and SunDance Rehabilitation Corp. knowingly submitted or caused the submission of false claims to Medicare Part B by billing for outpatient therapy services provided in the State of Georgia that were (1) not medically necessary or (2) unskilled in nature.
Finally, this settlement resolves allegations that between Sept. 1, 2003 and Jan. 3, 2010, Skilled LLC submitted false claims to the Medicare and Medi-Cal programs at certain of its nursing homes for services that were grossly substandard and/or worthless and therefore ineligible for payment. More specifically, the settlement resolves allegations that Skilled LLC violated certain essential requirements that nursing homes are required to meet to participate in and receive reimbursements from government healthcare programs and failed to provide sufficient nurse staffing to meet residents’ needs.
SKG and its subsidiaries were acquired by Genesis after the conduct at issue in this settlement. Sun Healthcare Group Inc., SunDance Rehabilitation Agency Inc. and SunDance Rehabilitation Corp. were acquired by Genesis in December 2012.
“Safeguarding federal health care programs and patients is a priority,” said Acting U.S. Attorney Steven W. Myhre for the District of Nevada. “Today’s settlement is an example of the U.S. Attorney’s Office’s commitment to holding medical providers accountable for fraudulent billing of medically unnecessary treatments and services. We are committed to protecting federal health care programs, including Medicare, TRICARE, and Medicaid, which are funded by taxpayer dollars.”
“We are committed to protecting the federal health care programs and the patients who are enrolled in them,” said U.S. Attorney Brian J. Stretch for the Northern District of California. “We will continue to vigorously pursue companies and individuals who provide care that is grossly deficient or unnecessary.”
“Health care providers that falsify claims for unauthorized or unnecessary services steal precious taxpayer dollars, and we will aggressively seek to recover those funds for the program that needs them,” said U. S. Attorney John Horn for the Northern District of Georgia.
“It’s disturbing when health care companies bill Medicare and Medicaid to care for vulnerable patients, but provide grossly substandard care and medically unnecessary services just to boost company profits,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to crack down on medical providers who betray the public’s trust and the needs of vulnerable patients through fraudulent billing and irresponsible practices.”
“At a time when the cost of healthcare weighs heavy on many taxpayers, it is imperative that people who illegally bill our healthcare system are held accountable and forced to pay restitution,” said FBI Atlanta Special Agent in Charge David J. LeValley. “This case is an example of how committed the FBI and its partners are to keeping healthcare providers from abusing the system.”
The settlement, which was based on the company’s ability to pay, resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Joanne Cretney-Tsosie, Jennifer Deaton, Kimberley Green, Camaren Hampton, Teresa McAree, Terri West, and Brian Wilson, former employees of companies acquired by Genesis. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The government may intervene and file its own complaint in such a lawsuit. The whistleblowers will receive a combined $9.67 million as their share of the recovery in this case.
This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Northern District of California, the Northern District of Georgia, the Western District of Missouri, and the District of Nevada and HHS-OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
The cases are docketed as United States, ex rel. Cretney-Tsosie v. Creekside Hospice II, LLC, Case No. 2:13-cv-167-HDM (D. Nev.); United States ex rel. McAree v. SunDance Rehabilitation Corp., Case No. 1:12-CV-4244 (N.D. Ga.); United States, ex rel. West v. Skilled Healthcare Group Inc., et. al., Case No. 11-02658-ED (N.D. Cal.); United States ex rel. Deaton v. Skilled Healthcare Group, Inc. et al., Case No. 4:14-cv-00219 (W.D. Mo.); and United States ex rel. Wilson v. Skilled Healthcare Group, Inc. et al., Case No. 14-cv-860 (W.D. Mo.).
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Four Floridians Sentenced for Laundering Proceeds of A Costa Rican Sweepstakes SchemeRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Audrey Montserrate (50, Dania), Benancio Lopez (53, St. Cloud), Richard Ellis (30, Miami), and Donald S. Sutliff (42, Kissimmee) to federal prison terms for laundering proceeds from a fraudulent sweepstakes scheme. As part of the sentences, the Court also entered a money judgment for the proceeds of the charged criminal conduct. Each previously pleaded guilty to conspiracy to commit money laundering.
According to court documents, Montserrate, Lopez, Ellis, and Sutliff laundered the proceeds of a fraudulent sweepstakes scheme that operated out of Costa Rica and primarily targeted elderly victims in the United States. Promoters operating from illegal telemarketing call centers in Costa Rica called victims in the United States and falsely informed them that they had won a large cash prize in a sweepstakes. The victims were instructed to send money to “United States government officials,” including Montserrate, Lopez, Ellis, and Sutliff, to pay fees and taxes in order to retrieve their prize. The victims sent the funds to Montserrate, Lopez, Ellis, and Sutliff by bank wire transfer, third-party wire services, and mail. The defendants then transferred the fraud proceeds to conspirators in Costa Rica, after deducting a fee for laundering the funds. Montserrate laundered $735,500, representing fraud proceeds from at least 18 victims. Lopez laundered $486,747 from 11 victims; Ellis laundered $130,168 from 23 victims; and Sutliff laundered $18,503 in fraud proceeds from 5 victims.
Montserrate and Lopez each received a sentence of 30 months in federal prison. Ellis was sentenced to 14 months’ imprisonment, and Sutliff was ordered to serve 12 months in federal prison.
This case was investigated by the St. Cloud Internal Revenue Service - Secret Service Financial Crimes Task Force, which is comprised of the Internal Revenue Service - Criminal Investigation, the United States Secret Service, the St. Cloud Police Department, the Osceola County Sheriff’s Office, the Brevard County Sheriff’s Office, the Palm Bay Police Department, the Casselberry Police Department, the Kissimmee Police Department, the Winter Park Police Department, and the Maitland Police Department. It was prosecuted by Assistant United States Attorney Karen L. Gable.
Former U.S. Naval Attaché and Military Advisor to the U.S. Ambassador in the Philippines Sentenced for Taking Bribes in Massive Navy Corruption ScandalRead the Press Release
A Retired U.S. Navy Captain was sentenced in federal court today to 41 months in prison for his role in a massive bribery and fraud scheme involving foreign defense contractor Leonard Glenn Francis and his firm, Singapore-based, Glenn Defense Marine Asia (GDMA).
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana W. Robinson Southern District of California, Director Dermot O'Reilly of the Defense Criminal Investigative Service and Director Andrew Traver of the NCIS made the announcement.
In addition to the 41-month prison sentence, U.S. District Judge Janis L. Sammartino ordered Michael Brooks, 59, of Fairfax Station, Virginia, to pay a $41,000 fine and $31,000 in restitution to the U.S. Navy. Brooks pleaded guilty in November 2016 to one count of conspiracy to commit bribery.
Brooks, who served as the U.S. Naval Attaché at the U.S. Embassy in Manila, Philippines, from 2006 to 2008, has admitted accepting bribes of travel and entertainment expenses, hotel rooms and the services of prostitutes. In return, Brooks admitted that he used his power and influence to benefit GDMA and Francis, including by securing quarterly clearances for GDMA vessels, which allowed GDMA vessels to transit into and out of the Philippines under the diplomatic imprimatur of the U.S. Embassy. Neither GDMA nor any other defense contractor has ever been granted such unfettered clearances.
Brooks admitted that he also allowed Francis to ghostwrite official U.S. Navy documents and correspondence, which Brooks submitted as his own. For example, Brooks admitted allowing GDMA to complete its own contractor performance evaluations. A November 2007 evaluation, drafted by GDMA and submitted by Brooks, described the company’s performance as “phenomenal,” “unsurpassed,” “exceptional” and “world class.” Brooks also admitted providing Francis with sensitive, internal U.S. Navy information, including U.S. Navy ship schedules and billing information belonging to a GDMA competitor, at times using a private Yahoo! e-mail account to mask his illicit acts.
Twenty-one current and former Navy officials have been charged so far in the fraud and bribery investigation; 10 have pleaded guilty and 10 cases are pending. In addition, five GDMA executives and GDMA the corporation have pleaded guilty.
NCIS, DCIS and DCAA are conducting the ongoing investigation. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Former RI Finance Chairman Raymond Gallison SentencedRead the Press Release
PROVIDENCE – Former Rhode Island House Finance Chairman Raymond E. Gallison, Jr., 65, of Bristol, R.I., was sentenced today to 51 months in federal prison for orchestrating fraudulent and deceptive schemes to steal private money and to hide his misuse of public money.
U. S. District Court Chief Judge William E. Smith also ordered Gallison to serve 3 years supervised release upon completion of his prison term, to include 100 hours of community service. Gallison pleaded guilty on March 9, 2017, to four (4) counts of mail fraud; one (1) count of wire fraud; one (1) count of aggravated identity theft; one (1) count of aiding the filing of a false tax document; and two (2) counts of filing a false tax return.
At the time of his guilty plea, Gallison admitted to the court that he stole funds from the estate of a deceased individual to which he was appointed executor; stole funds from a Special Needs Trust established to protect the long-term welfare of a disabled individual to which he was appointed trustee; provided false information on tax documents, including vastly inflating the number of students assisted by a non-profit organization funded by public money while failing to disclose amounts paid by that organization to him; and that he failed to pay taxes on income derived from his criminal actions.
Gallison’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Rhode Island Attorney General Peter F. Kilmartin; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
At the time of his guilty plea, Gallison admitted:
As executor of an estate of an individual from Barrington, R.I., who passed away in February 2012, he devised and executed various schemes to steal or transfer to his own name and bank accounts, cash, checks, stocks and real property belonging to the deceased person and/or his estate, valued at a total of $677,454.10. Gallison admitted that he fraudulently used the name and social security number of the deceased person to execute a scheme to cause the liquidation of certain stocks belonging to the deceased person;
He caused the filing of a false tax document on behalf of Alternative Education Programming (AEP), a non-profit organization which provided educational programs to students who may need assistance with course work, and/or minority and/or disadvantaged students who may need financial or other assistance to gain an education, and of which Gallison was listed as Assistant Director. The tax document listed that $77,957 in tuition and related fees and expenses were paid for 47 students from July 1, 2012, through June 30, 2013. In fact, on behalf of AEP, Gallison paid only $3,137.29 to assist 2 students during that year and paid approximately $64,575 to himself and another person in wages and consulting fees for no work undertaken on AEP’s behalf;
As trustee for a disabled person’s Special Needs Trust, he defrauded the Trust by writing a check from the Trust account for $8,900, which he deposited into an AEP account. Gallison then wrote a check for $8,800 from the AEP account to pay an outstanding bill at the Community College of Rhode Island; and
He failed to claim a total of $622,286.17 in income on joint IRS tax returns for tax years 2012 and 2013, and, as a result of his relevant conduct from 2012-2015, Gallison failed to pay a total of $226,332.31 in taxes.
During the course of the investigation, law enforcement recovered more than $515,000 in assets stolen by the defendant from the estate for which he served as executor. On the date of his guilty plea, the court was provided a check in the amount of $162,063.95, reflecting the balance of restitution due to the estate.
Restitution due to the IRS in the amount of $226,332.31 has not been paid.
Gallison was ordered by Chief Judge William E. Smith to self-surrender to begin serving his term of imprisonment by July 10, 2017.
The case was prosecuted by Assistant U.S. Attorneys Dulce Donovan and William J. Ferland, and Special Assistant U.S. Attorney James R. Baum of the Rhode Island Department of the Attorney General.
The matter was investigated by the United States Attorney’s Office, FBI, Internal Revenue Service Criminal Investigation, Rhode Island Department of the Attorney General, and the Rhode Island State Police.
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Former Owner of Marble Mining Company in Afghanistan Indicted for Allegedly Defrauding U.S. Government Agency and Defaulting on a $15.8 Million LoanRead the Press Release
The former owner of a now-defunct marble mining company in Afghanistan was charged in an indictment unsealed today with allegedly defrauding the Overseas Private Investment Corporation (OPIC), a U.S. government agency, and defaulting on a $15.8 million loan.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office made the announcement.
Azam Doost, aka Adam Doost, Mohammad Azam Doost and Mohammad Azim (Doost), 39, most recently of Union City, California, was charged in an indictment filed in U.S. District Court for the District of Columbia with three counts of major fraud against the United States, eight counts of wire fraud, four counts of false statements on loan applications or extensions and eight counts of money laundering. The indictment also has a forfeiture notice.
The indictment alleges that in February 2010, while working at his company, Equity Capital Mining LLC, Doost, along with his brother, obtained a $15.8 million loan from OPIC for the development, maintenance and operation of a marble mine in western Afghanistan. The loan proceeds were paid directly from OPIC to the alleged vendors who provided equipment for the mine, as reported to OPIC by Doost or his consultant. Doost was required to deal with these companies in arms-length transactions or, to the extent any transactions were other than at arms-length, he was required to report any affiliation he had with a vendor. Doost informed OPIC that he had no affiliation with any of the alleged vendors with whom he dealt, when in fact he allegedly had financial relationships with several of them. The indictment alleges that Doost’s business partner was listed with the bank for a number of these alleged vendors and, upon receipt of money from OPIC into the respective accounts, significant amounts of this money were then transferred from that respective account to companies and individuals with whom Doost was associated, or to pay debts Doost owed. Doost’s consultant allegedly received a commission of $444,000 for his alleged consulting services with the first of three disbursements from OPIC, and shortly after $40,000 was transferred from his account to a Doost company in California
The indictment further alleges that when the time came for Equity Capital Mining LLC to repay the loan to OPIC, Doost provided purported reasons to OPIC why it was not able to make those repayments at a time when Doost had control of sufficient funds to make those repayments. Doost and his brother failed to repay any of the principal on the OPIC loan, and only a limited amount of interest, and ultimately defaulted on the loan, the indictment alleges.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
SIGAR, with assistance from the FBI, investigated the case. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section is prosecuting the case.
Former LaRue County Sheriff Charged with Embezzling County Funds and Using His Public Office for Personal GainRead the Press Release
shoffner_bobby_charged_6-16-17.pdfBOWLING GREEN, – A former LaRue County Sheriff was charged in a felony information this week with a single count of embezzling money, that was under his care and custody, and belonged to Larue County, announced United States Attorney John E. Kuhn, Jr.
Bobby Carlton Shoffner, 58, of Hodgenville, Kentucky was the LaRue Count sheriff in 2011 and 2012 and during that time was responsible for collecting and remitting franchise tax payments and property tax payments.
According to the information, On or about and between May 13, 2011, and May 13, 2012, LaRue County, Kentucky, received benefits in excess of $10,000 under a federal program involving a grant, contract, subsidy, and other forms of federal assistance.
On or about and between May 13, 2011, and May 13, 2012, in the Western District of Kentucky, LaRue County, Kentucky, Shoffner, being an agent of LaRue County, allegedly embezzled, stole, intentionally misapplied, and knowingly converted to his own use without lawful authority, monies in excess of $5,000 which belonged to, were owned by, and were under the care, custody, and control of LaRue County
If convicted at trial, Shoffner could be sentenced to no more than five years in prison, pay a $250,000 fine, and be sentenced to serve a three-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI).
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The charge of a person by a Felony Information is an accusation only and that person is presumed innocent until and unless proven guilty
Former Employee of Lincoln Land Community College Sentenced for Defrauding College of Nearly $700,000Read the Press Release
SPRINGFIELD, Ill. – A former telecommunications employee of Lincoln Land Community College, John H. Martinez, 48, was sentenced today for defrauding the college of nearly $700,000 over a seven-year period. U.S. District Judge Sue E. Myerscough ordered that Martinez serve 29 months (2 years, 5 months) in federal prison and pay restitution in the amount of $695,401 to Lincoln Land Community College and its insurers. Martinez will remain on bond and will report to begin serving his prison sentence as designated by the federal Bureau of Prisons.
On Feb. 3, 2017, Martinez waived indictment and pled guilty to defrauding the college from 2005 to February 2012, and using the fraud proceeds to finance his personal expenses.
As a telecommunications administrator, Martinez worked on the college’s telephone system and was authorized to order products for its communications network. For vendor payments greater than a certain amount, Martinez was required to complete certain forms and documentation to obtain supervisory approval for the expenditure. Martinez admitted he repeatedly forged his supervisors’ signatures to authorize expenditures and caused the college to issue checks to fictitious vendors.
To carry out the scheme, Martinez removed some of the checks to fictitious vendors from the college’s mailroom prior to mailing. For one of the vendors, Martinez caused checks to be mailed to an invalid address, knowing that the checks would be returned and given to him for delivery. Martinez then deposited the fraudulent checks in his personal bank account and used the funds for personal expenses. Two other vendors were owned by Martinez’s friends, with whom Martinez agreed that the friends would deposit the checks in their personal accounts and make cash payments back to him. Martinez allowed the vendors/friends to retain part of the proceeds from the checks in exchange for their assistance in the scheme.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case. The investigation was conducted by the U.S. Postal Inspection Service, Illinois State Police, and the Lincoln Land Police Department, with the full cooperation of Lincoln Land Community College, which referred the matter to law enforcement.
Federal Jury in Austin Convicts Houston Man for Multiple Armed Robberies and Firearms ViolationsRead the Press Release
In Austin today, a jury convicted 40–year-old Austin and Houston resident Marvin Lewis (aka “Beau Louis”), who represented himself at trial, of federal charges in connection with a series of robberies and attempted robberies in Texas in 2014 and 2015 as well as one robbery in Ohio in 2015. United States Attorney Richard L. Durbin, Jr.; Austin Police Chief Brian Manley; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter; and, Houston Police Chief Art Acevedo made today’s announcement.
Jurors found Lewis guilty of one count of conspiracy to interfere with Commerce by threats or violence; seven (7) substantive counts of interference with Commerce by threats or violence; twelve (12) counts of money laundering; four (4) counts of possession of a firearm in furtherance of a crime of violence; and, one count of being a felon in possession of a firearm. Jurors acquitted Lewis of two money laundering charges.
Evidence presented during trial revealed that over a two-year period beginning in November 18, 2014, Lewis was responsible for 13 robberies/attempted robberies and one theft including:
* 11.18.14 (theft) – Costco in Katy, TX – diamond ring valued at approximately $24,600;
* 11.28.14 – Jared the Galleria of Jewelry in Austin – 19 diamonds valued at approximately $176,600;
* 11.28.14 – C. Kirk Root Designs in Austin – 40 rings valued at approximately $9,700;
* 12.1.14 – Marc Robinson Jewelers in Austin – 6 Rolex watches valued at approximately $83,000;
* 1.7.15 – Exotic Diamonds in Houston – 25 pieces of jewelry valued at approximately $346,890;
* 1.7.15 – Deutsch and Deutsch Jewelers in Houston – attempted robbery;
* 1.22.15 – Wright Pawn & Jewelry Co. in Houston – 18 watches & 13 rings valued at approx. $219,280;
* 6.25.15 – Jared the Galleria of Jewelry in Strongsville, OH – 48 diamonds valued at approx. $548,000;
* 11.5.15 – Tiffany and Co. in Austin – attempted robbery;
* 11.5.15 – Ben Bridge Jewelers in Austin – attempted robbery;
* 11.5.15 – Jared the Galleria of Jewelry in Austin – 26 diamonds & 14 rings valued at approx. $196,950;
* 11.5.15 – Costco in Katy, TX – 10 diamond jewelry items valued at approximately $20,800;
* 11.5.15 – Jared the Galleria of Jewelry in Houston – attempted robbery; and,
* 11.6.15 – Ben Bridge Jewelers in Austin – attempted robbery.
Jurors also found, based upon the evidence presented, that Lewis structured cash deposits under $10,000 in his bank accounts in order to avoid currency transaction reporting requirements; and, on two occasions, Lewis engaged in financial transactions to conceal the nature of the illegal proceeds by purchasing a 2010 Porsche Panamera and by gambling at a casino in Louisiana.
Testimony also revealed that authorities in Austin arrested the man Lewis hired to commit the Texas robberies, 38-year-old Brandon Grubbs of Houston, following the attempted robbery of Ben Bridge Jewelers on November 6, 2015. At the time of his arrest, Grubbs was in possession of a pistol that testimony revealed was given to him by Lewis.
On February 8, 2017, Grubbs pleaded guilty to one count of conspiracy to interfere with Commerce by threats or violence and one count of possession of a firearm in furtherance of a crime of violence. Grubbs, who remains in custody, faces up to life in federal prison. He is scheduled to be sentenced at 9:00am on September 12, 2017, before United States District Judge Lee Yeakel in Austin.
Lewis, who remains in federal custody, faces up to life in federal prison. Sentencing is scheduled for 9:00am on September 13, 2017, before Judge Yeakel.
The Austin Police Department, FBI, IRS-CI, and the Houston Police Department investigated this case with assistance from the Travis County Sheriff’s Office, Travis County District Attorney’s Office, Strongsville (Ohio) Police Department and the United States Marshals Service. Assistant United States Attorneys Michael Galdo, Matt Harding and Daniel Castillo are prosecuting this case on behalf of the Government.
Federal Government Contractor Sentenced to Prison for Providing Bribes in a Government Contract Fraud SchemeRead the Press Release
PENSACOLA, FLORIDA – Michael Allen Braun, 54, of Forest Lake, Minnesota, was sentenced today to 18 months in prison and $126,300 in restitution for conspiracy (to commit theft of honest services and wire fraud) and bribery of a public official. Co-conspirator United States Air Force Master Sergeant Cody Boone Covert, 43, of Fort Walton Beach, was sentenced to 23 months in prison on February 23, 2017, for conspiracy and bribery of a public official. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In January 2014, MSgt. Covert, 901st Aircraft Maintenance Squadron, Hurlburt Field, was tasked by the Air Force with procuring specialized equipment in support of C-130 Special Operations Aircraft. Braun, who owned the company Trans Global Storage Solutions, conspired with Covert to obtain a contract from the United States Air Force. Prior to the solicitation of the contract, Braun agreed to provide Covert 45% of the profit from the contract proceeds, if Covert ensured that Trans Global won the contract. Covert submitted a request to purchase the specialized equipment. Because Covert was the requester of the equipment, he was chosen to evaluate each proposal for technical acceptance. Subsequently, Covert recommended the Trans Global proposal be accepted. After Trans Global was fraudulently awarded the $126,300 contract from the United States Air Force via Covert’s inside influence, Covert and Braun split the proceeds. Covert pled guilty on October 28, 2016, and Braun pled guilty on January 12, 2017.
U.S. Attorney Canova said, “The United States Attorney’s Office, along with our other federal, state, and local government partners, is committed to upholding the law by exposing corruption and pursuing justice for those lawbreakers who abuse their authority and positions of trust. I commend the work of the investigating and prosecuting team on this case. Public service carries a high ethical standard, and no one is above the law.”
Special Agent-in-Charge Wendell W. Palmer, United States Air Force Office of Special Investigations (AFOSI)-Procurement Fraud Detachment 5, Southeast Field Office, stated, “This was a great outcome for the investigation and prosecution of those who would do damage to the integrity of the U.S. Air Force acquisition process. Dedicated and thorough work on the part of investigators and prosecutors alike have once again protected the warfighting capability of the world’s greatest air and space fighting force. The teamwork exhibited by investigators and prosecutors, and the sentence, sends a strong message that fraud against our government will not be tolerated.”
“Corruption in the government procurement process damages the public trust and ultimately degrades the warfighting mission of the Department of Defense,” commented Special Agent-in-Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service. “DCIS, with our investigative partners and the U.S. Attorney’s Office, continues to pursue and bring to justice those contractors who defraud military programs, especially when it jeopardizes the safety of our brave men and women in uniform.”
The case was investigated by the Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and the Defense Contract Audit Agency. The case was prosecuted by Assistant U.S. Attorney James M. Ustynoski.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fairfield Man Convicted of Illegally Possessing Firearms and AmmunitionRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Steven Lemieux, 54, of Fairfield, Maine, was convicted yesterday following a jury trial in U.S. District Court of illegally possessing firearms and ammunition.
Court records and trial evidence revealed that in December 2016, Lemieux possessed seven firearms and 784 rounds of ammunition. He was prohibited from possessing firearms of ammunition due to a 2006 federal felony conviction for providing false information to a federal firearm licensee.
Lemieux faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Fairfield Police Department.
Executive Office for Immigration Review Swears in 11 Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of 11 new immigration judges, bringing the agency’s total to 326. Deputy Chief Immigration Judge Print Maggard presided over the investiture during a ceremony held this afternoon at EOIR headquarters in Falls Church, Va.
After a thorough application process, Attorney General Jeff Sessions appointed Olga Attia, David Cheng, Scott D. Criss, Christopher M. Greer, Catherine E. Halliday-Roberts, Elizabeth G. Lang, Eric W. Marsteller, Jennifer L. Page-Lozano, Helaine R. Perlman, Frank T. Pimentel, and Michael S. Pleters to their new positions.
“We are excited to welcome these individuals to the immigration judge corps, and their arrival will significantly increase our adjudicatory capacity in immigration courts as we work to address a backlog of pending cases,” said Acting Director James McHenry. “The continued hiring of new immigration judges as quickly as possible is an important component of EOIR’s multi-step effort to address the backlog, which also includes maximizing the use and effectiveness of our current adjudicatory capacity, upgrading our technology to process cases more efficiently, and reviewing internal practices and procedures in order to identify ways in which we can enhance immigration judge productivity without compromising due process.”
Biographical information follows.
Olga Attia, Immigration Judge, Otay Mesa Immigration Court
Attorney General Jeff Sessions appointed Olga Attia to begin hearing cases in July 2017. Judge Attia earned a Bachelor of Science degree in 1993 from the California State University at Long Beach and a Juris Doctor in 1996 from the University of San Diego School of Law. From 2003 to 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in San Diego, Calif. From 1997 to 2003, she served as an assistant district counsel for the Office of District Counsel, Immigration and Naturalization Service, Department of Justice, also in San Diego. From 1996 to 1997, she served as a judicial law clerk at the San Diego, El Centro, and Hawaii immigration courts, Executive Office for Immigration Review, Department of Justice, entering on duty through the Attorney General’s Honors Program. Judge Attia is a member of the California State Bar.
David Cheng, Immigration Judge, Newark Immigration Court
Attorney General Jeff Sessions appointed David Cheng to begin hearing cases in July 2017. Judge Cheng earned a Bachelor of Arts degree in 1992 from the State University of New York at Albany and a Juris Doctor in 1997 from St. John’s University School of Law. From 2002 to 2017, he served as a senior attorney for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Newark, N.J. From 2000 to 2002, he served as an administrative law judge for the New York City Department of Finance. From 1997 to 2000, he was a general partner at Cheng and Cheng P.C., in New York, N.Y. Judge Cheng is a member of the New York State Bar.
Scott D. Criss, Immigration Judge, Atlanta Immigration Court
Attorney General Jeff Sessions appointed Scott D. Criss to begin hearing cases in July 2017. Judge Criss earned a Bachelor of Arts degree in 2002 from the California State University at Long Beach and a Juris Doctor in 2005 from The John Marshall Law School. From 2008 to 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Charlotte, N.C. From 2006 to 2008, he served as an assistant state’s attorney for the Criminal Traffic Division, Cook County State’s Attorney’s Office, in Chicago, Ill. From 2004 to 2005, he served as an assistant state’s attorney for the Criminal Appellate Division, Cook County State’s Attorney’s Office. Judge Criss is a member of the Illinois State Bar.
Christopher M. Greer, Immigration Judge, Salt Lake City Immigration Court
Attorney General Jeff Sessions appointed Christopher M. Greer to begin hearing cases in July 2017. Judge Greer earned a Bachelor of Arts degree in 1989 and a Juris Doctor in 1992 from the University of Utah, and a Master of Laws in 2003 from The Army Judge Advocate General’s School. From 2015 to 2017, he served as deputy chief trial judge at the Navy-Marine Corps Trial Judiciary in Washington, D.C. From 2013 to 2015, and 2006 to 2008, he served as a trial judge at the Navy-Marine Corps Trial Judiciary, Eastern Judicial Circuit at Camp Lejeune, N.C. From 2008 to 2013, he served as a senior legal advisor in Quantico, Va. and Cherry Point, N.C. From 2003 to 2006, he served as an operational law attorney in North Carolina, deploying to both Afghanistan and Iraq. From 1999 to 2002, he served as an attorney advisor and supervisory defense counsel in Naples, Italy. From 1996 to 1999, he served as defense counsel and senior prosecutor in Twentynine Palms, Calif. From 1993 to 1996, he served as a legal assistance attorney and prosecutor in Okinawa, Japan. Judge Greer is a member of the Utah State Bar.
Catherine E. Halliday-Roberts, Immigration Judge, Otay Mesa Immigration Court
Attorney General Jeff Sessions appointed Catherine E. Halliday-Roberts to begin hearing cases in July 2017. Judge Halliday-Roberts earned a Bachelor of Arts degree in 1998 from the University of Dayton and a Juris Doctor in 2002 from the Valparaiso University School of Law. From 2008 to 2017, she served as a deputy chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in San Diego, Calif. From 2003 to 2008, she served as an assistant chief counsel for the Office of Chief Counsel, ICE, DHS, in Los Angeles and Lancaster, Calif. From 2002 to 2003, she served as an assistant district counsel for the Immigration and Naturalization Service, Department of Justice, entering on duty through the Attorney General’s Honors Program. Since 2002, she has been an associate professor at Santa Monica College. Judge Halliday-Roberts is a member of the California State Bar.
Elizabeth G. Lang, Immigration Judge, Chicago Immigration Court
Attorney General Jeff Sessions appointed Elizabeth G. Lang to begin hearing cases in July 2017. Judge Lang earned a Bachelor of Arts degree in 1998 from Grinnell College and a Master of Arts degree and Juris Doctor in 2004 from the University of Virginia. From 2008 to 2017, she served as an assistant chief counsel for Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in Orlando, Fla. From 2013 to 2014, she served as an associate legal advisor for ICE, DHS, also in Orlando. From 2006 to 2008, she served as an assistant county attorney for the Stafford County Attorney’s Office, in Stafford, Va. From 2004 to 2006, she served as a law clerk at the Alexandria Circuit Court, in Alexandria, Va. Judge Lang is a member of the Florida and Virginia State Bars.
Eric W. Marsteller, Immigration Judge, New Orleans Immigration Court
Attorney General Jeff Sessions appointed Eric W. Marsteller to begin hearing cases in July 2017. Judge Marsteller earned a Bachelor of Arts degree in 2000 from Tulane University and a Juris Doctor in 2004 from The George Washington University Law School. From 2012 to 2017, he served as a senior litigation counsel for the Office of Immigration Litigation (OIL), Civil Division, Department of Justice. From 2004 to 2012, he served as a trial attorney for OIL, entering on duty through the Attorney General’s Honors Program. Judge Marsteller is a member of the Virginia State Bar.
Jennifer L. Page-Lozano, Immigration Judge, Miami Immigration Court
Attorney General Jeff Sessions appointed Jennifer L. Page-Lozano to begin hearing cases in July 2017. Judge Page-Lozano earned a Master of Public Health degree in 2003 from the University of South Florida and a Juris Doctor in 2006 from the Stetson University School of Law. From 2015 to 2017, she served as an attorney advisor for the Board of Immigration Appeals, Executive Office for Immigration Review, Department of Justice. From 2009 to 2015, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Orlando, Fla. From 2006 to 2009, she was an attorney at Page-Lozano, P.A., in Tampa, Fla. Judge Page-Lozano is a member of the Florida and Minnesota State Bars.
Helaine R. Perlman, Immigration Judge, Arlington Immigration Court
Attorney General Jeff Sessions appointed Helaine R. Perlman to begin hearing cases in July 2017. Judge Perlman earned a Bachelor of Arts degree in 1997 from Columbia University and a Juris Doctor in 2002 from New York University School of Law. From 2016 to 2017, she served as deputy general counsel for the Office of General Counsel (OGC), Executive Office for Immigration Review (EOIR), Department of Justice (DOJ). From 2013 to 2016, she served as senior counsel for immigration for OGC, EOIR, DOJ. From 2011 to 2013, she served as associate general counsel for OGC, EOIR, DOJ. From 2002 to 2011, she was an associate attorney at Hogan Lovells LLP, in Washington, D.C. Judge Perlman is a member of the District of Columbia and the Maryland State Bars.
Frank T. Pimentel, Immigration Judge, Port Isabel Immigration Court
Attorney General Jeff Sessions appointed Frank T. Pimentel to begin hearing cases in July 2017. Judge Pimentel earned a Bachelor of Arts degree in 1987 and a Juris Doctor in 1994 from the University of Notre Dame. From 2012 to 2017, he served as an assistant U.S. attorney at the U.S. Attorney’s Office for the Western District of New York in Buffalo, N.Y. From 2009 to 2012, he served as an assistant U.S. attorney at the U.S. Attorney’s Office for the Southern District of Texas, in Laredo, Texas. From 2004 to 2009, he was a senior associate attorney at Mintz Levin Cohn Glovsky and Popeo, P.C. in Washington, D.C. From 1999 to 2004, he was an associate attorney at Reed Smith LLP, in Falls Church, Va. From 1995 to 1999, he served as an assistant public defender for the Monroe County Public Defender’s Office in Rochester, N.Y. From 1994 to 1995, he clerked for the Honorable David G. Larimer, U.S. District Court, Western District of New York. From 1987 to 1990, he served as a field artillery officer in the U.S. Army in Oklahoma, Colorado, and Turkey. Judge Pimentel is a member of the New York State Bar.
Michael S. Pleters, Immigration Judge, El Paso Service Processing Center
Attorney General Jeff Sessions appointed Michael S. Pleters to begin hearing cases in July 2017. Judge Pleters earned a Bachelor of Arts degree in 1987 from Columbia University and a Juris Doctor in 1992 from the Benjamin N. Cardozo School of Law at Yeshiva University. From 1999 to 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Department of Homeland Security, in El Paso, Texas. From 2011 to 2014, he served as a special assistant U.S. attorney at the U.S. Attorney’s Office for the District of New Mexico. From 1994 to 1999, he served as an assistant district attorney for the Office of the District Attorney, 34th Judicial District, also in El Paso. From 1992 to 1994, he served as a law clerk for the Honorable Harry Lee Hudspeth, Chief U.S. District Court Judge, Western District of Texas. Judge Pleters is a member of the Texas and New York State Bars.
Downingtown Woman Charged with Embezzling $194K from Employer, and Obtaining $100K in College Loans for her Children Using Co-workers’ Stolen IdentityRead the Press Release
PHILADELPHIA – Kimberly O’Toole, 49, of Downingtown, Pennsylvania, was charged by Information today with four counts of wire fraud, announced Acting United States Attorney Louis D. Lappen.
According to the Information, defendant Kimberly O’Toole engaged in an embezzlement scheme in which, from 2012 to 2013, she stole approximately $194,193.39 from her employer, Miwon North America (“Miwon”). Defendant Kimberly O’Toole’s husband was the President and General Manager at Miwon; defendant Kimberly O’Toole had accounting and bookkeeping duties at the company. In that role, defendant Kimberly O’Toole opened a fraudulent bank account in the company’s name that only she knew about and controlled. O’Toole then intercepted checks paid to Miwon by its customers, and deposited those checks into the sham bank account that she controlled. Defendant Kimberly O’Toole later withdrew the funds she embezzled for her own personal use, including to make mortgage payments for her personal residence in Downingtown, Pennsylvania, and to pay her cable bill. When Miwon officials detected her fraud, defendant Kimberly O’Toole tried to cover-up the fraud by accessing the email account of a co-worker, without the co-worker’s knowledge or permission, in an effort to deceive company officials as to the truth about her embezzlement scheme.
Separately, during the same time period, defendant Kimberly O’Toole – who also had HR duties at Miwon, and thus had access to the company’s employees’ personnel files – stole the identity of a co-worker. Using that co-worker’s stolen identity, defendant Kimberly O’Toole took out three fraudulent Wells Fargo college loans on behalf of two of her children, who attended The Pennsylvania State University and North Carolina State University-Raleigh, respectively. This was done without the knowledge or consent of the victim. The total amount of the fraudulent loans obtained by defendant Kimberly O’Toole for the loans obtained using the victim’s stolen identity totaled approximately $104,500.
If convicted, the defendant faces a maximum statutory sentence of 80 years’ incarceration, a fine of up to $1,000,000, three years of supervised release, and a $400 special assessment.
The case was investigated by the FBI and the U.S. Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney James Petkun.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican National Sentenced for Heroin TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for heroin trafficking.
Ramon Baez, 55, was sentenced by U.S. District Court Judge Indira Talwani to 121 months in prison, five years of supervised release, and will be subject to deportation upon completion of his sentence. On March 21, 2017, Baez pleaded guilty to one count of conspiracy to distribute fentanyl and one kilogram or more of heroin; one count of possession with intent to distribute one kilogram or more of heroin; and conspiracy to commit money laundering.
From about April 2015 to March 2016, an investigation was conducted into the drug distribution activities of Baez and his associates in and around Lawrence. Baez obtained heroin and cocaine from local suppliers and suppliers based in Mexico. Baez’s co-conspirator Jose A. Rosario supplied Baez with kilograms of heroin, which Baez then repackaged for distribution. Rosario pleaded guilty in May 2017 and is scheduled for sentencing on Aug. 17, 2017.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Katherine Ferguson of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Pleads Guilty to Misuse of a Social Security NumberRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to falsely representing a number to be his social security number.
Luis Miguel Mejia Lugo, 25, pleaded guilty to one count of misuse of a social security number. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for June 28, 2017.
On June 3, 2016, a man who identified himself as “Josue Marrero,” but who later was identified as Mejia Lugo, was arrested in Methuen for armed robbery and firearms charges. When Mejia Lugo was booked early the following morning, in order to hide his true identity, he represented a number to be his social security number when in fact it was not.
The charge provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. Mejia Lugo will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Essex County Sheriff Kevin F. Coppinger made the announcement today. Assistance with the investigation was provided by the U.S. Citizenship and Immigration Services, the Social Security Administration, and the FBI’s Criminal Justice Information Services Division in Clarksburg, W.V. Assistant U.S. Attorneys Kelly Begg Lawrence and Robert E. Richardson of Weinreb’s Major Crimes Unit are prosecuting the case.
District Man Found Guilty of Kidnapping and Raping His WifeRead the Press Release
WASHINGTON – A 49-year-old man, of Washington, D.C., was found guilty by a jury today of various felony charges for severely beating his wife while holding her captive in a small U-Haul storage unit, and for raping her two days later in a motel room, U.S. Attorney Channing D. Phillips announced.
The defendant, who is not identified here to protect the privacy of the victim, was found guilty of kidnapping while armed, assault with a dangerous weapon, first-degree sexual abuse, and assault. The verdict followed a trial in the Superior Court of the District of Columbia. The defendant is to be sentenced on Sept. 8, 2017, by the Honorable Milton C. Lee. Under the District of Columbia’s voluntary sentencing guidelines, he faces a minimum of 24 years in prison. Upon his release from prison, he must register as a sex offender for the rest of his life.
According to the government’s evidence, the defendant and his wife – both homeless – spent the night of Jan. 12, 2017 in a small storage locker that she was renting at a facility in the 2200 block of Fifth Street NE. Once the facility closed, the defendant began accusing her of cheating on him. He took what the victim described as a wooden pole, with metal on each end, and brutally beat her with it. He kept her locked in the unit the rest of the night and, when she needed to use the restroom, he ordered her not to let anyone see her injuries and he accompanied her to the restroom and back.
The next evening, the defendant called his father, who agreed to pay for a hotel room for the defendant and the victim. At the defendant’s order, the victim hid her face from her father-in-law as they got into his car in the dark. On Sunday, Jan. 15, after a day of relative peace, the defendant again became enraged and raped his wife at the hotel, which is in the 1600 block of New York Avenue NE. He then hit her in the head with the TV remote until he broke it. When the defendant went to the hotel’s front office to replace the remote, the victim escaped from the hotel room wearing nothing but panties, shoes and a winter coat. As she fled, she sought help from people she encountered, but no one would help her.
Finally, she arrived on foot at the Metropolitan Police Department’s (MPD) Fifth District Station, where she received help from officers there. Veteran police officers, one of whom had patrolled the streets for over two decades, were shocked at the degree of the victim’s injuries: her eyes were extremely bloodshot and swollen almost shut, her nose was broken, and her body was badly bruised.
Later that night, the defendant was arrested in the same hotel room in which he had raped his wife earlier in the day.
In announcing the verdicts, U.S. Attorney Phillips praised the work of officers from MPD’s Fifth District and from MPD’s Sexual Assault Unit, as well as the Sexual Assault Nurse Examiner and other medical personnel at Medstar Washington Hospital Center. He also expressed appreciation to the District of Columbia Department of Forensic Sciences, which performed DNA analysis of evidence recovered in the case, and to Nicole Stahlmann, Clinical Manager of the District of Columbia Forensic Nurse Examiners.
He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Assistant U.S. Attorney Chrisellen Kolb, Deputy Chief of the Appellate Division; Paralegal Specialists Benjamin Kagan-Guthrie, Brenda C. Williams and Donhue Troy Griffith; Victim/Witness Advocates Juanita Harris and Tracey Hawkins; Litigation Technology Specialist Claudia Gutierrez, and Interns Kate Sullivan, Layla Kousari and Jonah Panikar. Finally, U.S. Attorney Phillips commended the work of Assistant U.S. Attorneys Marisa S. West and Peter V. Taylor, who investigated and prosecuted this case.
Deputy Attorney General Recognizes U.S. Attorney’s Office EmployeesRead the Press Release
SAN FRANCISCO – Eight current employees and one former employee of the U.S. Attorney’s Office in the Northern District of California are among the members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 33rd Director’s Awards Ceremony today in Washington D.C. The awards ceremony took place in the Great Hall at the Robert F. Kennedy Department of Justice Building. The local recipients of the awards include Doug Chang, Neill Tseng, Maryam Beros, Phil Villanueva, Sara Winslow, Alex Tse, Bruce Iwamoto, Mark Conrad, and Katie Griffin.
In his prepared remarks, Deputy Attorney General Rosenstein told the awardees: “These 179 award recipients embody the best of the Department of Justice.… Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded. ”
U.S. Attorney Brian J. Stretch expanded on the Deputy Attorney General’s remarks stating, "Today we celebrate the accomplishments of the extraordinary employees of this district. The fair and impartial administration of justice requires tireless determination and hard work. The recipients of these awards have unquestionably gone the extra mile on behalf of the American people and are to be commended for their selfless dedication to the Department of Justice.”
Doug Chang, Neill Tseng, Maryam Beros, Phil Villanueva, Sara Winslow, Alex Tse, and Mark Conrad (now an alumnus of the office) were recognized for their work as a team on the investigation into the activities of Morgan Stanley prior to the 2008 financial crisis. The investigation resulted in a $2.6 billion settlement. The team’s sweeping investigation revealed that Morgan Stanley failed to disclose critical information about the mortgages underlying its securities. Many of the toxic loans securitized by Morgan Stanley defaulted, and investors across the nation sustained billions of dollars in losses. The settlement achieved by this team holds accountable one of the banks whose conduct helped bring about one of the most devastating financial crisis. In connection with the settlement, Morgan Stanley acknowledged in a statement of facts that it failed to disclose critical information to investors. The team received the Director’s Award for Superior Performance by a Litigating Team.
Bruce Iwamoto is a Program Specialist who was recognized for his superior performance in administering the Organized Crime Drug Enforcement Task Force (OCDETF) Program for the Pacific Region since 2000. The Pacific Region is comprised of the eleven judicial districts in the Pacific Northwest and the Pacific Islands. Mr. Iwamoto has shown great leadership over many years as the chief administrative officer for the program in this region. Mr. Iwamoto was recognized as having superior organizational skills, dedication, and commitment. His efforts have paved the way for significant law enforcement accomplishments throughout the region from Guam to Idaho. Mr. Iwamoto received the Director’s Award for Superior Performance in Administration.
Also recognized was celebrated was Katie Griffin. Before joining the Northern District of California in 2017, Ms. Griffin was an Assistant U.S. Attorney in the Western District of Texas. As an AUSA in Texas, Ms. Griffin investigated and prosecuted Maverick County officials, including both a Commissioner and Justice of the Peace, for the their roles in a bribery, kickback, and bid-rigging scheme. The defendants were convicted of manipulating the bidding process to guarantee that certain individuals were awarded construction contracts in exchange for thousands of dollars in kickback payments. The persistent investigation and prosecution effectively rooted out corruption and restored faith and confidence to governance in Maverick County. Ms. Griffin received the Director’s Award for Superior Performance as an AUSA-Criminal.
The Northern District of California was one of 35 districts represented at the ceremony.
Deputy Attorney General Recognizes SDTX EmployeesRead the Press Release
HOUSTON – Three employees of the of the U.S. Attorney’s Office in the Southern District of Texas (SDTX) were among the 179 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 33rd Director’s Awards Ceremony today in Washington D.C.
The SDTX was one of 35 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks, Rosenstein told the awardees: “These 179 award recipients embody the best of the Department of Justice.… Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved and whose trust you have rewarded. ”
SDTX Assistant U.S. Attorneys (AUSA) Robert Johnson and John Pearson were recognized for their prosecution of Abraham Moses Fisch and Lloyd Glen Williams. Fisch, a Houston defense attorney, and Williams, a former FBI confidential source, defrauded defendants who were facing federal criminal charges. Fisch and Williams collected millions from their victims in return for guarantees that their cases would be dismissed, all under the guise of a fictitious "secret cooperation" scheme involving alleged payoffs to officials at the CIA, FBI, Department of Justice and Medicare. For his conspiracy, fraud, obstruction, money laundering and tax convictions, Fisch was sentenced to 15 years imprisonment, while Williams received a seven-year sentence. Evidence during the 15-day trial demonstrated that both Fisch and Williams lied repeatedly to victims and their family members, interfered with legitimate attorney-client relationships and hid their activities from the presiding judges. For more information, see the press release issued at the time of sentencing.
AUSA Fred Hinrichs from the SDTX Civil Division was recognized for consistently winning difficult tort cases through outstanding discovery and motion practice. Through his efforts, a number of high exposure cases were decided in favor of the government, including a complex medical malpractice claim, a sensitive Bivens case involving discovery on qualified immunity and a complicated civil rights suit involving a wrongfully detained foreign national. AUSA Hinrichs' outstanding legal skill, combined with his well-planned and executed discovery and motion practice, led directly to the succession of his office's mission and reflect great credit upon the Department of Justice.
EOUSA provides oversight, general executive assistance and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit the Offices of the United States Attorneys.
Deputy Attorney General Recognizes Plano Federal ProsecutorRead the Press Release
WASHINGTON – Assistant U.S. Attorney (AUSA) Bradley Visosky of the U.S. Attorney’s Office in the Eastern District of Texas was one of 179 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 33rd Director’s Awards Ceremony held on June 16, 2017 in Washington D.C.
The Eastern District of Texas was one of 35 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks, Deputy Attorney General Rosenstein told the awardees, “These 179 award recipients embody the best of the Department of Justice. Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded. ”
Bradley Visosky, of the Plano office, was recognized for his superior performance as an Appellate Assistant United States Attorney and, in particular, his handling of the appeal in a groundbreaking prosecution of Colombian nationals who trafficked thousands of kilograms of narcotics through the Eastern District of Texas and into the rest of the United States. Twenty-seven Colombian defendants were charged with drug trafficking crimes, including conspiracy to import cocaine into the United States and manufacturing and distribution of cocaine to be imported into the United States. Four went to trial and were convicted. All appealed. In voluminous briefing, the appellants raised issues covering almost every aspect of the trial, including the constitutionality and extraterritorial reach of 21 U.S.C. §§ 959 and 963, venue, sufficiency of the evidence, jury instructions, and sentencing. AUSA Visosky’s well-written, concise brief and able presentation during oral argument—under intense questioning from the Fifth Circuit panel—resulted in a successful outcome.
“Bradley Visosky is the go-to guy in the Eastern District of Texas for expertise in many areas of the law,” said Eastern District of Texas Acting U.S. Attorney Brit Featherston. “Bradley’s adroit handling of this appeal ensured our district’s ability to protect the citizens of the Eastern District of Texas. He selflessly handles his own appellate cases, and when requested, comes to the aid of his peers to provide valued assistance. The district is honored to have Bradley chosen for a 2017 Director's award, and we are thrilled to have him as an outstanding Assistant U.S. Attorney in the Eastern District of Texas.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Deputy Attorney General Recognizes Middle District of Florida EmployeesRead the Press Release
WASHINGTON – Acting U.S. Attorney W. Stephen Muldrow announced today that Assistant U.S. Attorneys Jay Trezevant, Cherie Krigsman, Charles Harden, Karin Hoppmann, and Jason Mehta, along with Legal Administrative Specialist Gina Wetherald, Senior Civil Investigator Charles Burnette, and retired Supervisory Legal Administration Specialist Madeline Tejera, were among the 179 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson, at the 33rd Director’s Awards Ceremony today in Washington D.C.
The Middle District of Florida (MDFL) was one of 35 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks, Deputy Attorney General Rosenstein told the awardees: “These 179 award recipients embody the best of the Department of Justice.… Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”
“We very much appreciate that the Department of Justice has recognized the outstanding achievements of these prosecutors and staff from our office,” said Acting United States Attorney Stephen Muldrow. “These cases are excellent examples of the fine work being done by the many hard-working and dedicated employees of the U.S. Attorney’s Office for the Middle District of Florida. While their efforts often go unnoticed, these public servants work tirelessly to make our communities safer and defend the interests of the American people.”
The MDFL was recognized for its highly successful litigation of several healthcare fraud cases. The first involves WellCare Health Plans, Inc., a publicly traded managed-care company, and several of its top executives, including the CEO and CFO. In both civil and criminal cases, the litigation team mastered an extraordinary volume of evidence to lay bare a sophisticated scheme designed to enable the company to unlawfully retain millions of dollars of Medicaid funds that it falsely claimed had been spent on behavioral-health services. In May 2009, WellCare entered into a Deferred Prosecution Agreement with the U.S. Attorney’s Office and the Florida Attorney General’s Office, which imposed strict compliance measures on the company and required it to repay $40 million in restitution and $40 million in civil forfeiture. After two years of fierce pretrial litigation, the criminal case against four defendants went to trial in February 2013. On June 10, 2013, the jury found all four defendants guilty of fraud and making false statements. The district court subsequently imposed sentences of imprisonment for three of the individuals and their convictions were affirmed by the Eleventh Circuit in August 2016. This matter was handled by Assistant U.S. Attorneys Jay Trezevant and Cherie Krigsman, with assistance from Supervisory Legal Administrative Specialist Madeline Tejera and Legal Administrative Assistant Gina Wetherald. AUSA Karin Hoppmann handled the appeal.
As the civil investigation into WellCare, Inc. continued, the defendant invoked its inability to pay, and negotiations commenced that eventually led to a settlement of all qui tam claims for $137.5 million. The relator’s objection to the settlement amount was successfully concluded in 2012. The Court upheld the settlement, which has been paid in full. AUSA Charles Harden handled the settlement, with assistance from Senior Civil Investigator Charles Burnette.
Additional members of the WellCare litigatve team that were recognized today are: Department of Justice trial attorneys Allie Pang (Civil Division) and John A. Michelich (Criminal Division); John J. Bowers from the Securities and Exchange Commission; Kyle R. Ford and Isaac M. Bledsoe from the Department of Health and Human Services, Office of Inspector General; and Eduardo Ortega, Susana Mapu, and Kevin J. DiQuattro from the Federal Bureau of Investigation.
In addition, as part of the MDFL’s effort to combat compounding pharmacy fraud, Assistant U.S. Attorney Jason Mehta was recognized for spearheading 17 separate civil investigations that concluded with settlements of more than $59.8 million, in just 18 months. These investigations uncovered a complex web of fraudulent practices involving pharmacies paying marketers exorbitant commissions in exchange for prescriptions written by physicians for pain and scar creams. These prescriptions cost the TRICARE program as much as $10,000 per tube. AUSA Mehta has subsequently provided assistance and training to other districts during similar investigations.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Please visit our photo gallery to view images from the event.