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Friday 28 April 2017
D.C. Circuit Affirms Decision Blocking Anthem’s Acquisition of CignaRead the Press Release
The U.S. Court of Appeals for the D.C. Circuit today affirmed the decision by the District Court for the District of Columbia blocking health insurer Anthem, Inc.’s acquisition of Cigna Corp., the Justice Department announced. Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division released the following statement today after the ruling in United States et al. v. Anthem, Inc. and Cigna Corp.:
“We are pleased with the appellate court’s decision. It upholds an injunction against the merger of two of the country’s largest health insurers, which not only would have led to higher prices but also slowed innovation and harmed consumers by weakening value-based offerings aimed at lowering medical costs. The decision confirms the district court’s conclusion that the merger would not have provided real benefits to consumers, but instead would have harmed competition in these important markets.
“I am proud of the outstanding work done by the trial team, who established that this merger would be anticompetitive, and by the lawyers who defended the case on appeal. As this case shows, the Antitrust Division and our state partners will continue to vigorously protect competition and enforce the antitrust laws in this critical industry.”
In July 2016, the Antitrust Division filed a lawsuit in the U.S. District Court for the District of Columbia seeking to block Anthem’s $54 billion acquisition of Cigna, the largest proposed transaction in the history of the healthcare industry. The division’s complaint alleged that the merger would substantially lessen competition in the health insurance industry in dozens of markets throughout the United States.
The Division tried the case before Judge Amy Berman Jackson over a seven-week period from Nov. 21, 2016, to Jan. 3, 2017. On Feb. 8, 2017, Judge Jackson ruled in favor of the Division and blocked the proposed merger. She found that the merger was likely to substantially lessen competition in the market for the sale of health insurance to national accounts based in fourteen states, and in the sale of health insurance to large employers in Richmond, Virginia. Five days after the court’s decision, Anthem filed a brief appealing the decision and separately requested expedited review from the court of appeals. Oral argument was held six weeks later on March 24, 2017.
The United States was joined in the lawsuit by the District of Columbia and the States of California, Colorado, Connecticut, Georgia, Iowa, Maine, Maryland, New Hampshire, New York, Tennessee and Virginia.
Cullman County Man Indicted for Jasper Bank RobberiesRead the Press Release
BIRMINGHAM – A federal grand jury on Thursday indicted a Cullman man for robbing the same Walker County bank twice within seven months, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
A three-count indictment filed in U.S. District Court charges WALTER LARRY LUMPKIN, 71, with two counts of bank robbery and one count of brandishing a firearm during a bank robbery.
According to the indictment, Lumpkin robbed the Curry Branch of First Bank of Jasper on June 17, 2016, taking $32,600. The indictment charges he robbed the same bank on Jan. 20 this year, taking $61,135. He is charged with brandishing a Heritage Arms .22-caliber revolver during the January robbery.
The maximum penalty for bank robbery is 25 years in prison and a $250,000 fine. The penalty for brandishing a firearm during a crime of violence is a minimum of seven years and a maximum of life in prison, and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney William G. Simpson is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Court Orders Forfeiture of Henderson County ResidenceRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that the federal court in the Western District of North Carolina has ordered the final forfeiture of a Henderson County residence used in the illegal distribution of oxycodone and other narcotics. The forfeiture of the residence to the United States is the result of the collaborative efforts of the Henderson County Sherriff’s Office, the United States Drug Enforcement Administration (DEA) and the U.S. Attorney’s Office.
The case against the residence arose out of a civil complaint for forfeiture filed by the United States in February 2015 (Docket No. 1:15-cv-23). The United States’ forfeiture lawsuit was brought pursuant to 21 U.S.C. § 881, which, under certain circumstances, allows for forfeiture of property which is proceeds of or used to commit or facilitate the commission of felony drug offenses. In its civil complaint, the United States alleged that the property located at 318 Jody Street, in East Flat Rock, N.C. (“the Jody Street Property”), facilitated and was proceeds of narcotics offenses by Harvey Franklin Hunt, Vivian Hunt, and Dorothy Hunt.
The civil complaint detailed narcotics offenses dating back to 2012. Specifically, the civil complaint alleged illegal sales of oxycodone from the property, and also the recovery of large amounts of cash, digital scales, marijuana, alprazolam, and methamphetamine from the residence. Finally, the civil complaint alleged multiple state controlled substances convictions against Harvey Hunt, Vivian Hunt, and Dorothy Hunt.
Ultimately, the civil forfeiture case was stayed pending the resolution of state criminal charges against the Hunts based on the continuing drug activity. In 2016, after the successful resolution of the state cases and the conviction of the Hunts, the federal court lifted the stay. The United States ultimately obtained agreement from Harvey and Vivian Hunt, the owners of the Jody Street Property, to their eviction from and final forfeiture of the property. The default judgment and final order entered this month by the federal court enables the United States to evict the Hunts and sell the property.
In making today’s announcement, the U.S. Attorney’s Office commended the coordination and collaborative work of the DEA, the Henderson County Sherriff’s Office, and the Henderson County Drug Task Force.
Assistant United States Attorney Benjamin Bain-Creed, of the U. S. Attorney’s Office in Charlotte, handled the civil proceedings.
Court of Appeals Affirms Convictions, Life Sentence, and $1 Miillion Forfeiture Judgment in 2009 Rochester Drug Trafficking CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. — Acting U. S. Attorney James P. Kennedy, Jr. announced today that the United States Court of Appeals for the Second Circuit has affirmed the convictions and sentences of Kevin Lamont Anderson, a/k/a Cuda, and Willie Grimes, a/k/a Chill.
On October 26, 2009, following a six-week trial before U.S. District Judge Charles J. Siragusa, a federal jury convicted defendant Anderson of conspiracy to distribute, and possession with intent to distribute crack cocaine, maintaining a drug involved premises, and money laundering conspiracy.
From 1990 to December 2005, defendant Anderson led a conspiracy to distribute crack and powder cocaine. Evidence presented by the Government during the trial showed that during the time of the conspiracy, drugs were sold to customers from a series of houses in the northeast section of Rochester controlled by Anderson.
As part of sentencing proceedings, the Government proved that Anderson was responsible for the double homicide in May 2002 of Clifford Robinson and Allen Tyrone Smith in Rochester. Anderson shot Robinson and Smith in a house located at 279 Avenue A in Rochester in furtherance of his drug distribution activity. With the help of several of co-conspirators, Anderson placed the victims' bodies in Clifford Robinson's vehicle and left the vehicle on Cutler Street in Rochester. Police found the bodies in the parked vehicle on Cutler Street on May 15, 2002, two days after the murders.
Anderson was sentenced to life in prison. Defendant Grimes was convicted of possession with intent to distribute, and conspiracy to distribute, crack cocaine and cocaine and sentenced to 135 months in prison.
On appeal, defendants argued that their convictions should be reversed based upon juror misconduct, insufficient evidence, and false testimony. They further argued that their sentences should be vacated as unreasonable. In rejecting each of defendants’ claims, the Judges of the Second Circuit concluded: “We have considered all of the defendants’ arguments on this appeal and find in them no basis for reversal. Accordingly, we AFFIRM the judgments of the district court.” A special jury verdict, determining that Anderson’s assets were subject to forfeiture in the amount of $1,000,000, was also affirmed.
Seven other defendants were also convicted in this case.
On appeal, the government was represented by Assistant U.S. Attorney Frank T. Pimentel. The trial was handled by Assistant U.S. Attorneys Frank H. Sherman and Everardo A. Rodriguez.
Corpus Christi Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 69-year-old Corpus Christi man has admitted he possessed child pornography, announced Acting U.S. Attorney Abe Martinez.
The investigation into Henry Franklin Reddick began after authorities received a CyberTipline report from The National Center for Missing & Exploited Children. The CyberTipline provides the public and electronic service providers with the ability to report online instances of child pornography. The CyberTipline report indicated that an individual using the email address of [email protected] had uploaded 79 images of suspected child pornography onto a cloud storage service.
Law enforcement was able to determine Reddick was associated with that email address and, in April 2015, agents executed a search warrant at his residence. At that time, agents seized various electronic devices during the search and a forensic analysis on those devices revealed more than 450 images and 13 videos of child pornography.
Sentencing is set for Aug. 8, 2017, before U.S. District Judge Nelva Gonzales Ramos. At that time, Reddick faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Reddick also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez and Elsa Salinas, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Corinna Man Sentenced to 11 Years on Cocaine and Oxycodone Trafficking ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Roger Belanger, 59, of Corinna, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to 11 years in prison and five years of supervised release for conspiring to distribute and possess with the intent to distribute oxycodone and cocaine. Belanger was convicted following a jury trial on August 19, 2016.
The evidence at trial revealed that between 2002 and 2014, the defendant and his daughter, Kelli Mujo, ran a cocaine and oxycodone distribution conspiracy that stretched from Rhode Island to the Dexter, Maine area. Belanger was central to the organization of the conspiracy and was directly involved in obtaining over 22 kilograms of cocaine and thousands of oxycodone pills in Rhode Island and arranging their transportation to Maine where it was distributed in Dexter and the surrounding communities.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Dexter Police Department, and the Penobscot and Somerset County Sheriff’s Offices.
Construction Company Partner Sentenced to 15 Months in Prison for Evading Taxes on More Than $1 MillionRead the Press Release
PANAMA CITY, FLORIDA –Patrick Shawn Kelley, 55, of Panama City Beach, was sentenced yesterday to 15 months in prison and $210,397 in restitution to the IRS, after pleading guilty to tax evasion in October 2016. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between 2009 and 2011, Kelley was a partner in American Construction Logistics and Services (ACLS), a construction company that performed work for the U.S. Government in Afghanistan. Kelley admitted that he failed to file tax returns for the 2009, 2010, and 2011 tax years on income consisting of $1,167,025.32 in wages, ACLS funds used for personal expenditures, and cash wired to Kelley’s wife from ACLS employees. In total, Kelley never paid the IRS $210,397 in taxes due and owing for the unreported income.
During the years 2010 and 2011, in an effort to conceal his income from the IRS, and without the knowledge or consent of his business partners, Kelley made significant personal expenditures directly from the ACLS bank account. The expenditures included $320,550 for the purchase of his personal residence in Panama City Beach; $156,000 for an ownership interest in a motorcycle shop; $44,000 for the purchase of a boat; $10,393 for the purchase of a Jeep Wrangler; and a $9,500 loan to a friend. Kelley also diverted funds totaling $353,520.37 from the ACLS corporate bank account to his personal bank accounts, and directed Afghan employees to wire cash to his wife.
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Special Inspector General for Afghanistan Reconstruction. Assistant United States Attorney Stephen M. Kunz prosecuted the case.
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 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.
For more information, contact:
Amy Alexander, Public Information OfficerColumbus Man Sentenced for Dog-Fighting ConspiracyRead the Press Release
COLUMBUS, Ohio – Charles A. Granberry, 40, of Columbus, was sentenced in U.S. District Court to 72 months in prison for conspiring to participate in a dog-fighting ring in central Ohio, illegally possessing a firearm and violating the terms of his supervised release.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, Midwest Region, U.S. Department of Agriculture Office of Inspector General, Columbus Police Chief Kim Jacobs, Franklin County Prosecuting Attorney Ron O’Brien, and Capital Area Humane Society Executive Director Rachel D.K. Finney announced the sentence handed down today by U.S. District Judge James L. Graham.
According to court documents, an undercover law enforcement officer met with Granberry and others over a two-week period at two houses in Columbus in March 2016. The officer saw evidence indicating that the house was used to train, fight and sell dogs, including at least 20 fighting dogs in the rear yard of one house that were chained to heavy automobile axles buried in the ground.
Granberry described the fighting style of his dogs to the undercover officer and boasted about his dogs’ prowess during dogfights. He sold a dog to the undercover officer for $2,500 and advised that the dog could fight immediately because of its breeding and conditioning.
Officers executed search warrants on April 5, 2016 at five Columbus houses. Agents seized evidence including 46 dogs along with cages, treadmills, heavy chains and collars and other items. Agents found canine blood on the floor and walls of the basement of one home indicating that the area was used as a dog-fighting pit.
Officers arrested Granberry and seized firearms and documents connected to the dog-fighting operation. Granberry – who was a manager or supervisor of the operation, directing activities and controlling the money – has been in custody since his arrest.
At the time of the search warrant, Humane Society officials took extreme measure to ensure the safety of the seized dogs and the ASPCA provided animal behavioral specialists to conduct examinations of each dog. Some of the dogs reacted severely to loud noises and leashes during the examinations. For example, one dog latched on to a stuffed animal so aggressively that professionals had to cut the head off the toy.
Additionally, a large number of the dogs seized had a canine disease called Babesia Gibsoni, which results in anemia and ultimately death. The prevalence of the disease is unusually high in “bully breeds” used in dog-fighting operations through exposure to infected dogs’ blood and during non-sterile procedures such as tail docking, ear cropping and vaccinations of multiple animals with single needles.
Of the 46 dogs seized, specialists determined that 15 were eligible for placement in a shelter for adoption, and the remaining 31 dogs were euthanized for behavioral concerns or medical issues.
“The cruelty involved in this case is significant,” U.S. Attorney Glassman said. “Mr. Granberry bred, raised, and sold dogs to be severely injured or maimed in dogfighting, and his sentence today shows that we take such illegal behavior seriously.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals who conspire or commit crimes in violation of the Animal Welfare Act, illegally possess firearms and drugs or attempts to defraud other USDA programs,” said Anthony V. Mohatt, Special Agent in Charge, USDA-OIG-Investigations. “It should also serve as a warning to individuals that these matters will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in public safety and the enforcement of these statutes.
The USDA-OIG applauds the steadfastness resolution of the Columbus Police Department in this joint investigation and U.S. Attorney's Office to also prosecute these matters.”
Last week, a federal grand jury charged Dwayne T. Robinson, Jr., 33, and Henry Gerard James Hill, Jr., 21, both of Columbus, with conspiring to participate in the dog-fighting ring. Randall J. Frye, 58, also of Columbus, has pleaded guilty in U.S. District Court to the same charge.
U.S. Attorney Glassman commended the ongoing investigation by the USDA-OIG, Columbus Police, the Humane Society and the ASPCA, as well as Assistant U.S. Attorneys J. Michael Marous and Jessica W. Knight, and Franklin County Assistant Prosecutor Heather Robinson, who are representing the United States in this case.
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Canfield Man Charged in Conspiracy of Illegal Distribution of Weapons That Were Resold to Buyers from MexicoRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Paul A. Groves, 36, of Canfield, Ohio, with conspiring with others to illegally buy and resell military-grade semi-automatic firearms in a superseding indictment returned here yesterday.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the indictment.
The superseding indictment alleges that Groves, who operated High Powered Armory in Youngstown, provided false information in the purchase of firearms in order to fraudulently purchase military-grade weapons and resell them to illegal purchasers, who then resold them to Mexican buyers.
Co-defendant Eric L. Grimes, 47, of Columbus, operated Great Machine, LLC in Hilliard.
While High Powered Armory was a federal firearms licensee, Great Machine was not. In January 2015, Groves submitted an application to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to license Great Machine as a secondary location for High Powered Armory.
According to the superseding indictment, individuals in Indiana conspired to fraudulently acquire firearms from licensees for the purpose of transferring those firearms to illegal purchasers in Mexico. Groves allegedly negotiated with members of the Indiana group for the purchases of high-powered rifles that were then sold to buyers from Mexico who paid extremely high, marked-up prices.
For example, on January 28, 2015, Grimes accepted more than $48,000 in cash at Great Machine at the instruction of Groves and on his behalf as payment for the anticipated purchase of rifles. Groves then transferred the weapons to members of the Indiana group at High Powered Armory a few weeks later. The Indiana individuals then drove to McAllen, Texas and re-sold them to buyers from Mexico.
Gun Envy, LLC on Indianola Avenue in Columbus was also used as a meeting location on at least one occasion.
Groves is charged with one count of conspiracy to defraud the United States, which is punishable by up to five years in prison, and one count of receipt or possession of an unregistered firearm, which carries a potential maximum sentence of 10 years in prison.
Grimes pleaded guilty in U.S. District Court Wednesday to engaging in firearms business without a license, a crime punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by ATF, and Assistant United States Attorneys Kevin Kelley and Jessica H. Kim, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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California Man Sentenced to 15 Years in Prison for Attempted Sex Trafficking of ChildrenRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced today that United States District Judge Francisco A. Besosa sentenced 38-year-old Shane R. Yoder of Fairfield, CA, to serve a term of imprisonment of fifteen years followed by 20 years of supervised release. On December 16, 2016, Yoder pled guilty to one count of attempted sex trafficking of children, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In March 2016, the defendant traveled from California to Puerto Rico in order to pay for sex with multiple girls between the ages of 8-11 years of age.
“This case should send a message that human trafficking does, in fact, exist in Puerto Rico,” said U.S. Attorney Rodríguez. “Given the fact that human trafficking is a modern form of slavery, we must educate ourselves to protect our children from suffering from this vile form of exploitation”
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the sexual exploitation of children.
The criminal prosecution was handled by Special Assistant U.S. Attorney Cristina Caraballo-Colón.
Burley Man Charged with Illegal Drug TraffickingRead the Press Release
POCATELLO - Lucio Juarez, of Burley, Idaho, was indicted April 25, 2017, by a federal grand jury sitting in Pocatello for distribution of and conspiracy to distribute methamphetamine, Acting U.S. Attorney Rafael Gonzalez, announced.
The indictment alleges that between December 2016 and April 2017, Juarez conspired with others to distribute and possess with intent to distribute methamphetamine. In addition, Juarez is alleged to have distributed methamphetamine on four occasions within the timeframe of the conspiracy. Law enforcement executed search warrants in Burley and Heyburn on Wednesday, April 26th, related to the case.
The charges of conspiracy to distribute methamphetamine and distribution of methamphetamine are punishable by a term of imprisonment of no less than five and up to forty years, a maximum fine of $5,000,000, and at least four years of supervised release.
A trial is set for July 3, 2017 before U.S. District Chief Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Idaho State Police, the Cassia County Sheriff’s Office, and the Minnedoka County Sheriff’s Office.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Blood Testing Laboratory to Pay $6 Million to Settle Allegations of Kickbacks and Unnecessary TestingRead the Press Release
Quest Diagnostics Inc. has agreed to pay $6 million to resolve a lawsuit by the United States alleging that Berkeley HeartLab Inc., of Alameda, California, violated the False Claims Act by paying kickbacks to physicians and patients to induce the use of Berkeley for blood testing services and by charging for medically unnecessary tests. Quest, which is headquartered in Madison, New Jersey, acquired Berkeley in 2011, and ended the conduct that gave rise to the settlement.
“We rely on doctors to provide honest, independent recommendations regarding clinical testing,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Companies that pay kickbacks to referring doctors corrupt those doctors’ independence, leaving patients vulnerable to expensive and unnecessary testing.”
Physicians refer their patients to independent laboratories like Berkeley to conduct tests on blood samples. According to the government’s complaint, Berkeley paid kickbacks to referring physicians disguised as “process and handling” fees. The complaint also alleged that Berkeley paid kickbacks to patients by routinely waiving copayments owed by certain patients who were legally required to pay for part of their tests. Allegedly, Berkeley paid the kickbacks to induce both the physicians and patients who received them to choose Berkeley over other laboratories. The government’s complaint further alleged that these illegal practices resulted in medically unnecessary cardiovascular tests being charged to federal healthcare programs.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient. The Anti-Kickback Statute also prohibits routinely waiving patient copayments to ensure that patients are appropriately incentivized to refuse unnecessary tests.
“The South Carolina U.S. Attorney’s Office has dedicated considerable resources to pursuing fraud cases that divert federal tax payer dollars from important programs, like health care and defense contracting,” said U.S. Attorney Beth Drake of the District of South Carolina. “The goal for our qui tam unit is to protect taxpayers, patients, and soldiers by ensuring that important decisions are made according to medical science and engineering, and not based on dollar signs.”
“This settlement is part of the government’s ongoing efforts to address conduct that allows medical decisions to be influenced by money rather than the best interests of patients,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “Our office is pleased to defend the integrity of our healthcare system and to demand the return of ill-gotten gains.”
“We will not allow laboratories to provide financial incentives to induce physicians to steer patients their way,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) in Atlanta. “The Office of Inspector General will continue to work aggressively to eliminate this type of behavior which ultimately drives up healthcare costs and eliminates fair competition.”
The lawsuit was initially filed by Dr. Michael Mayes under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act permits the United States to intervene in and take over a whistleblower suit. The United States partially intervened in this and two related actions on March 31, 2015, and is continuing to pursue claims against the remaining defendants: Latonya Mallory, the former CEO of Health Diagnostics Laboratory Inc., and marketing company BlueWave Healthcare Consultants Inc. and its owners, Floyd Calhoun Dent III and Robert Bradford Johnson. Dr. Mayes’ share of the settlement with Quest has not been determined.
On April 9, 2015, the United States announced settlements with two other laboratories - Health Diagnostics Laboratory Inc. of Richmond, Virginia, and Singulex Inc., of Alameda, California - for engaging in conduct similar to that resolved in the settlement with Quest.
The government’s intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the District of South Carolina and the District of Columbia, FBI’s Columbia Field Office and the FBI Healthcare Fraud Unit Major Provider Response Team (MPRT), HHS-OIG, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.
The cases is captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
Blood Testing Laboratory to Pay $6 Million to Settle Allegations of Kickbacks and Unnecessary TestingRead the Press Release
WASHINGTON – Quest Diagnostics Inc. has agreed to pay $6 million to resolve a lawsuit by the United States alleging that Berkeley HeartLab Inc., of Alameda, California, violated the False Claims Act by paying kickbacks to physicians and patients to induce the use of Berkeley for blood testing services and by charging for medically unnecessary tests. Quest, which is headquartered in Madison, New Jersey, acquired Berkeley in 2011, and ended the conduct that gave rise to the settlement.
“We rely on doctors to provide honest, independent recommendations regarding clinical testing,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Companies that pay kickbacks to referring doctors corrupt those doctors’ independence, leaving patients vulnerable to expensive and unnecessary testing.”
“This settlement is part of the government’s ongoing efforts to address conduct that allows medical decisions to be influenced by money rather than the best interests of patients,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “Our office is pleased to defend the integrity of our healthcare system and to demand the return of ill-gotten gains.”
Physicians refer their patients to independent laboratories like Berkeley to conduct tests on blood samples. According to the government’s complaint, Berkeley paid kickbacks to referring physicians disguised as “process and handling” fees. The complaint also alleged that Berkeley paid kickbacks to patients by routinely waiving copayments owed by certain patients who were legally required to pay for part of their tests. Allegedly, Berkeley paid the kickbacks to induce both the physicians and patients who received them to choose Berkeley over other laboratories. The government’s complaint further alleged that these illegal practices resulted in medically unnecessary cardiovascular tests being charged to federal healthcare programs.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient. The Anti-Kickback Statute also prohibits routinely waiving patient copayments to ensure that patients are appropriately incentivized to refuse unnecessary tests.
“The South Carolina U.S. Attorney’s Office has dedicated considerable resources to pursuing fraud cases that divert federal tax payer dollars from important programs, like health care and defense contracting,” said U.S. Attorney Beth Drake of the District of South Carolina. “The goal for our qui tam unit is to protect taxpayers, patients, and soldiers by ensuring that important decisions are made according to medical science and engineering, and not based on dollar signs.”
“We will not allow laboratories to provide financial incentives to induce physicians to steer patients their way,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) in Atlanta. “The Office of Inspector General will continue to work aggressively to eliminate this type of behavior which ultimately drives up healthcare costs and eliminates fair competition.”
The lawsuit was initially filed by Dr. Michael Mayes under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act permits the United States to intervene in and take over a whistleblower suit. The United States partially intervened in this and two related actions on March 31, 2015, and is continuing to pursue claims against the remaining defendants: Latonya Mallory, the former CEO of Health Diagnostics Laboratory Inc., and marketing company BlueWave Healthcare Consultants Inc. and its owners, Floyd Calhoun Dent III and Robert Bradford Johnson. Dr. Mayes’ share of the settlement with Quest has not been determined.
On April 9, 2015, the United States announced settlements with two other laboratories - Health Diagnostics Laboratory Inc. of Richmond, Virginia, and Singulex Inc., of Alameda, California - for engaging in conduct similar to that resolved in the settlement with Quest.
The government’s intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the District of South Carolina and the District of Columbia, FBI’s Columbia Field Office and the FBI Healthcare Fraud Unit Major Provider Response Team (MPRT), HHS-OIG, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.
The cases is captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
Bank Robber Arrested by Westminster Police Department and FBI Rocky Mountain Safe Streets Task ForceRead the Press Release
DENVER – Christopher Dean Grisham, age 28, of Adams County, Colorado, was arrested last week by the Westminster Police Department and the FBI Rocky Mountain Safe Streets Task Force for bank robbery, the U.S. Attorney, FBI and Westminster Police Department announced. The defendant appeared in federal court this morning before a U.S. Magistrate Judge for a detention hearing. U.S. Magistrate Judge Kristen L. Mix ordered Grisham held without bond pending a resolution of his case. No trial date has yet been scheduled. The defendant is to appear in court on May 9, 2017 for a preliminary hearing.
According to court documents, on March 22, 2017, an individual robbed the U.S. Bank at 3454 West 72nd Avenue in Westminster. On March 29, 2017, that same individual robbed the Wells Fargo Bank located at 7401 Federal Blvd also in Westminster. After the March 22 bank robbery, investigators received a tip after someone saw an image of the bank robber, stating they believed the robber was Christopher Grisham. Special Agents and officers conducting the investigation showed the victim tellers of both banks a photo lineup which included a photo of Grisham. Both tellers identified Grisham as the individual responsible for the robbery.
Based on that information, a Criminal Complaint was obtained on April 21, 2017, charging Grisham with bank robbery. He was arrested, and then made his initial appearance on April 25, 2017, where he was advised of his rights and the charges pending against him. Bank robbery carries a penalty of not more than 20 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI Rocky Mountain Safe Streets Task Force and the Westminster Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Kurt Bohn.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury. The charges contained in the Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Attorney General Jeff Sessions Announces Dana Boente to Serve as Acting Assistant Attorney General of the National Security DivisionRead the Press Release
Attorney General Jeff Sessions today announced the appointment of Dana Boente as Acting Assistant Attorney General of the National Security Division. Boente succeeds Acting Assistant Attorney General Mary McCord, who serves as the Principal Deputy Assistant Attorney General and who recently announced that she would be departing in May.
“Dana Boente has been a dedicated public servant for decades and has served in important leadership roles in the Department of Justice,” said Attorney General Sessions. “In recent months, he has provided extraordinary leadership during the transition period. I am pleased that he has agreed to continue his service by leading our efforts to keep America safe. I also thank Mary McCord for her dedicated service to the department.”
Prior to this appointment, Boente had been serving as the Acting Deputy Attorney General since Jan. 30, 2017, and has served and will continue to serve as the U.S. Attorney for the Eastern District of Virginia since his confirmation by the U.S. Senate on Dec. 15, 2015. Boente was appointed by the Attorney General in December 2012 to serve as the U.S. Attorney for the Eastern District of Louisiana, a position he held until September 2013. Boente began his career with the Justice Department in 1984 with the Tax Division, and in January 2001 he became an Assistant U.S. Attorney in the Fraud Unit of the Eastern District of Virginia.
From 2005 to 2007, Boente served as the Principal Deputy Assistant Attorney General of the Tax Division. Following his service with the Tax Division, he returned to the Eastern District of Virginia when he was selected as the First Assistant U.S. Attorney. He served as acting U.S. Attorney for that office from October 2008 through September 2009 and from Sept. 23, 2013 until his Senate confirmation.
Atlanta Man Convicted in Federal Court Jury Trial in Charleston for Jewelry Store RobberiesRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Charleston, South Carolina --- United States Attorney Beth Drake announced today that Aquabeus Demond Moore, 37, of Atlanta, Georgia, was convicted following a four-day jury trial in United States District Court in Charleston. The Honorable Richard M. Gergel presided over the case.
Witness testimony and the evidence presented by the government during the trial established that Moore and others travelled from Atlanta to rob Sylvan Jewelers in Columbia, South Carolina, on February 19, 2015, and MP Demetre Jewelers in Charleston, South Carolina, on March 4, 2015. The jury convicted Moore of five separate counts, one count of Conspiracy to Commit Robbery Affecting Interstate Commerce, two counts of Robbery Affecting Interstate Commerce, and two counts of Brandishing a Firearm During a Violent Crime.
The conspiracy and robbery counts each carry up to twenty years imprisonment under 18 U.S.C. § 1951(a) and the gun charges carry a mandatory consecutive seven years plus twenty-five years imprisonment under 18 U.S.C. § 924(c).
A federal jury previously convicted Charles Johnson, one of Moore’s co-conspirators, of the same charges. The Honorable Richard M. Gergel sentenced Johnson to thirty-two years and one day on April 10 of this year.
The conviction is the result of an investigation conducted by the Federal Bureau of Investigations, City of Charleston Police Department and Columbia Police Department. Assistant United States Attorneys Nathan Williams and Emily Limehouse of the Charleston office prosecuted the case.
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Ashtabula man indicted on drug and firearms chargesRead the Press Release
An Ashtabula man was charged in federal court with drug trafficking and firearms crimes, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
George R. Williams, 35, was indicted on one count of possession with intent to distribute heroin, methamphetamine and crack cocaine; possession of firearms in furtherance of a drug trafficking crime; and of being a felon in possession of a firearms and ammunition.
Williams possessed heroin, methamphetamine and crack cocaine on Jan. 5 with the intent to distribute the drugs. On the same date, he possessed firearms in furtherance of the drug trafficking crime, according to the indictment
Williams possessed a Springfield, model XD40, .40 caliber pistol, a Lorcin, model L25, .25 caliber pistol, and ammunition on Jan. 5, after having been convicted in 2012 of heroin trafficking in the Ashtabula County Court of Common Pleas.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Ashtabula Police Department. The case is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Thursday 27 April 2017
Westminster, Maryland Man Indicted for Production and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Eric Wayne Grinder, age 36, of Westminster, Maryland, with three counts of production of child pornography and two counts of possession of child pornography. The indictment was returned on April 26, 2017.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Sheriff James T. DeWees of the Carroll County Sheriff’s Office.
According to the indictment, from June 2013 through August 2016, Grinder allegedly sexually abused a now 10-year old minor, and produced images of himself and the minor engaged in sexually explicit conduct. Further, Grinder used electronic communications devices to store and obtain visual depictions of minor victims engaged in sexually explicit conduct.
Grinder faces a maximum sentence of 30 years in prison for each of count of production of child pornography and a maximum of 20 years in prison for each count of possession of child pornography. An initial appearance has been scheduled in U.S. District Court in Baltimore on Thursday, May 4, 2017.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI, the Maryland State Police, the Carroll County Sheriff’s Office, and the Carroll County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul Riley and Paul Budlow, who are prosecuting the case.
United States Attorney’s Office Supports Advocacy Day for Access and IndependenceRead the Press Release
Contact Person: Rob Sneed (843) 266-1600
Columbia, South Carolina---- United States Attorney Beth Drake stated today that in its continued efforts to support the commitments in the Americans with Disabilities Act (ADA), the U.S. Attorney’s Office participated in Advocacy Day for Access and Independence this week.
This annual event was led by Able SC, which is a Center for Independent Living organization whose mission includes empowering people with disabilities to live active and self-determined lives. There were several different disability advocacy and support groups from around the state participating and hundreds of people attended the event.
South Carolina Governor Henry McMaster earlier issued a proclamation naming April 26, 2017 as Advocacy Day for Independence throughout the state to “encourage all South Carolinians to work together to destroy the barriers that hinder individuals with disabilities from becoming fully independent participants in our communities.”
AUSA Sneed’s remarks focused on the Department of Justice’s unwavering support of the Americans with Disabilities Act (ADA). AUSA Sneed referenced examples where the U.S. Attorney’s Office and the Department of Justice are opening gateways to full participation and opportunity for people with disabilities. This includes Project Civic Access, which is the DOJ’s wide-ranging effort to ensure that counties, cities, towns, and camps comply with the ADA by eliminating physical and communication barriers that prevent people with disabilities from participating fully in community life.
U.S. Attorney Drake noted that, “The ADA has been described as ‘the Emancipation Proclamation for people with disabilities.’ Others have described this landmark law as a vehicle that “secures for people with disabilities the most fundamental of rights: the right to live in the world. It ensures they can go places and do things that other Americans take for granted. If a person can work, it is critical for so many reasons that we eliminate artificial barriers that can obstruct their ability to work.” Recognizing that work remains to be done to create free access to employment and services, U.S. Attorney Drake noted that the U.S. Attorney’s Office and the Department of Justice will continue enforcement efforts until reaching the point so well-made nearly twenty-seven years ago by President George H.W. Bush, when he signed the ADA into law: “When every last shameful wall of exclusion for persons with disabilities finally comes tumbling down.”
#####USAO-EDNC Partners with Others for National Reentry WeekRead the Press Release
RALEIGH – The Department of Justice designated the week of April 24-28, 2017 as National Reentry Week. National Reentry Week, which was first observed in April 2016, is a week designed to highlight the efforts to assist formerly incarcerated individuals as they successfully return to and contribute to their communities. National Reentry Week seeks to promote a reduction in recidivism through the elimination of barriers to successful reentry as formerly incarcerated individuals compete for jobs, obtain stable housing, and seek to support for their families.
Prior to and during National Reentry Week, the U.S. Attorney’s Office for the Eastern District of North Carolina (USAO-EDNC) has participated in several recent events.
On March 29, 2017, USAO-EDNC hosted a Reentry Council Networking Forum where USAO-EDNC’s federal, state, and local partners gathered to share and discuss innovative ways to address barriers and service gaps that impact the success of formerly incarcerated individuals. Also, USAO-EDNC hosted a Focused Deterrence Call-In Forum whereby law enforcement and prosecutorial agencies from across the District gathered to learn about focused deterrence call-ins and how they can be utilized to decrease the recidivism rate and create safer communities.
On April 18, 2017, USAO-EDNC hosted a group of middle school students from Pitt County Sheriff’s Office’s Youth Program. Students learned about avoiding violence and gang activity by making good decisions. Several speakers shared statistics and real life examples to help the youth understand the consequences of making bad choices. In addition, students were provided with a guided tour of the federal building, featuring United States Marshal’s Offices and a federal courtroom.
As part of National Reentry Week, USAO-EDNC will join with other agencies to address reentry topics. On April 25th, USAO-EDNC joined with the U.S. Attorney’s Office, for the Middle and Western Districts of North Carolina, the United States Probation Office, the North Carolina Department of Public Safety, and the North Carolina Network for Safe Communities, in a joint meeting to discuss ways in which the federal districts and state agencies can collectively support the ongoing reentry work across the state. Today, USAO-EDNC is partnering with the Reentry Affairs Division of the Bureau of Prisons in Butner for two resource fairs, which will assist current inmates in preparing for their return to society at the end their incarceration.
National Reentry Week events are being planned in and across the United States. Various U.S. Attorney’s Offices and Bureau of Prison facilities are holding similar events.
EDNC U.S Attorney John Stuart Bruce stated: “The U.S. Department of Justice and our office are determined to reverse recent trends by reducing violent crime and illegal drug trafficking, which plague our communities. Reducing recidivism with effective reentry programs is an important part of this effort.”
U.S. Attorney’s Office urges public to participate in Drug Take Back driveRead the Press Release
SHREVEPORT, LAFAYETTE, MONROE, ALEXANDRIA, LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook urges the public to discard unused prescription drugs this weekend at area collection sites during Drug Take Back Day.
On October 22, 2016, the public turned in 731,269 pounds—almost 366 tons—of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds (more than 3,500 tons) of prescription drugs have been removed from medicine cabinets, kitchen drawers and nightstands by citizens around the country.
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused prescription drugs in 2015, including the almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Some painkiller abusers move on to heroin; four out of five new heroin users started with painkillers. Almost 30,000 people—78 a day—died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses because of these drugs. Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
The DEA will have collection sites across the country on Saturday, April 29, for those who are interested in bringing their unused or expired prescription drugs for proper disposal. Only pills and other solids, like patches, can be brought to the collection sites – liquids and needles or other sharp objects will not be accepted. The service is free and anonymous, no questions asked.
Prescription drugs can be dropped off from 10 a.m. to 2 p.m., April 29, at:
Shreveport
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Caddo Parish Sheriff’s Office, Sheriff’s Safety Town in the parking lot of Summer Grove Baptist Church, 8910 Jewella Ave.
Bossier City
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Bossier Parish Sheriff’s Office, Viking Drive Substation, 2510 Viking Drive
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Louisiana State Police Troop G office, 5300 Industrial Drive
Barksdale Air Force Base
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Barksdale Air Force Base Exchange, 455 Curtis Road
Monroe
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Louisiana State Police Troop F office, 1240 Highway 594
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Brookshire’s Food & Pharmacy, 1801 North 18th St.
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Brookshire’s Food & Pharmacy, 4070 Highway 165
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Super One, 2810 Louisville Ave.
West Monroe
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Brookshire’s Food & Pharmacy, 3426 Cypress St.
Alexandria
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Louisiana State Police Troop E office, 1710 Odom St.
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Alexandria Police Department, 1000 Bolton Ave.
Broussard
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Broussard Police Department at Walgreen’s parking lot, 105 St. Nazaire St.
Lake Charles
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Lake Charles Police Department at 900 Lake Short Drive (Civic Center)
Morgan City
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Walgreens, 815 Brashear Ave.
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Walmart Neighborhood Market parking lot, 1002 La.-70
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Walmart Super Center, 973 Highway 90-East
The public can also find other nearby collection sites by visiting www.dea.gov, clicking on the Take Back Day icon, and following the links to a database where they enter their zip code or call 800-882-9539.
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U.S. Attorney’s Office for the Southern District of Florida Reinforces its Commitment to Reducing RecidivismRead the Press Release
The United States Attorney’s Office for the Southern District of Florida and our partners continue to take significant steps to reduce recidivism and help formerly incarcerated individuals successfully contribute to their communities.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, recognizes the collective efforts of the South Florida Reentry Task Force, including the U.S. Attorney’s Office, U.S. District Court, U.S. Probation, Federal Public Defenders Office, law enforcement and diverse community stakeholders, to implement local reentry initiatives and support returning citizens.
“It is incumbent upon us all to support our returning citizens, because their success means a stronger, safer community for everyone,” stated Acting U.S. Attorney Benjamin Greenberg. “We cannot overstate the invaluable impact of programs and initiatives that offer services to our returning citizens. Having paid their debt to society, formerly incarcerated individuals should have the tools they need to gain lawful employment, obtain stable housing and support their families. South Florida reentry initiatives are designed to tear down the barriers and promote reintegration.”
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons, and another 11.4 million individuals cycle through local jails. The long-term impact of a criminal record prevents many returning citizens from obtaining employment, housing, a quality education, adequate health care, personal identification and even financial credit. These often-crippling barriers can contribute to a cycle of incarceration that makes it difficult for even the most well intentioned individuals to continue on the right path and avoid reentering the criminal justice system. Within the Southern District of Florida comprehensive reentry initiatives have been implemented to promote the successful reintegration of returning citizens and reduce recidivism. These efforts will help those who have paid their debt to society prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our communities.
Last year, the Southern District of Florida launched its first ever Reentry Court, known as the Court-Assisted Re-Entry (CARE) Initiative. The CARE Initiative is a problem-solving, collaborative effort between U.S. District Court, the U.S. Probation Office, the U.S. Attorney’s Office and Federal Public Defender representatives, and a Department of Justice Re-Entry Specialist. The CARE Team’s mission is to: help those returning from prison to become productive members of society by providing coordination for job training and placement, housing assistance, educational support, and the medical, substance abuse and mental health referrals; promote community safety by reducing recidivism and victimization; and reduce taxpayer spending on incarceration. Through weekly court sessions, the CARE Team assesses each participants’ progress, addresses any issues with his or her reentry, decides whether wrap-around services can be provided, and determines appropriate rewards and/or sanctions. Earlier this year, the CARE Team celebrated the first graduate of the Reentry Court initiative.
In 2011, The United States Attorney’s Office established the Violence Reduction Partnership (VRP) to address violent crime, gang activity and firearms offenses that plague communities in the Southern District. The VRP employs a holistic, three-pronged approach to violence reduction – one focused not only on enforcement, but also on prevention and reentry. Utilizing this multi-faceted approach, the VRP aims to reduce crime and promote safer and more resilient communities.
As part of the reentry prong of the VRP, the U.S. Attorney’s Office, alongside the Federal Bureau of Prisons, U.S. Probation and non-profit service providers have conducted Reentry and Resource (“in-reach”) Meetings at both the Federal Detention Center and the Federal Correctional Institution located in the Southern District. The meetings provide inmates preparing to be released from incarceration with the tools and information they need to navigate their successful reentry into society and reduce their risk of recidivism. Since 2013, more than 965 individuals have attended the meetings and received a Reentry Resource Guide. Acting U.S. Attorney Greenberg joined the most recent in-reach meeting on April 25, 2017 at the Federal Detention Center. Additionally, since 2012, the U.S. Attorney’s Office has been actively involved with Reentry Fairs at state correctional institutions and has connected with more than 3,261 inmates before their release.
The U.S. Attorney’s Office and our community partners also continue to support the South Florida Reentry Center Hub, a traveling one-stop service center for returning citizens and their families. The Reentry Center Hub provides returning citizens with easy, centralized access to a variety of reentry services within their local communities. Since 2014, Reentry Center Hub events, held in Fort Pierce, Miami Gardens, Liberty City and Goulds, Florida, have reached more than 856 returning citizens and their families.
Additionally, the U.S. Attorney’s Office and the Florida Department of Corrections continue to host Job Preparedness Workshops for returning citizens. The workshops provide individuals with the information they need to seek, gain and maintain lawful employment. The curriculum focuses on a variety of areas, including the development of resume writing, application and interview skills. Since 2013, the workshops have offered services to 58 returning citizens.
Tomorrow, the U.S. Attorney’s Office will host a Re-Entry Simulation to offer more than 60 members of the community an opportunity to experience the challenges that returning citizens experience, while reintegrating into society while on probation and supervised release. Last fall, the Office hosted two successful Re-Entry Simulation events.
The goal of the Office’s reentry initiatives is to build a fair, safe and more inclusive local community.
Additional information regarding the CARE and VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
U.S. Attorney’s Office Honors Citizens, Policymakers and Officers for Exceptional Efforts to Address New Mexico’s Opioid EpidemicRead the Press Release
ALBUQUERQUE – The U.S. Attorney’s Office today recognized fifteen individuals for their exceptional efforts to address New Mexico’s opioid epidemic and to attain the goals of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative during its Thirteen Annual Law Enforcement Awards Ceremony in Albuquerque, N.M. Acting U.S. Attorney James D. Tierney commended the following individuals for their important roles in solving the multi-faceted problems caused by the opioid epidemic:
Bernalillo County Commissioner Maggie Hart Stebbins, District 3, and Dr. William Wiese, Chair, Coordinating Committee of the Bernalillo County Opioid Accountability Initiative, were recognized for working with policymakers and local government to develop a coordinated response to the heroin and opioid epidemic through the Bernalillo County Opioid Accountability Initiative. Commissioner Hart Stebbins has been the driving force behind the Initiative, a multi-sectoral collective impact strategy to align the activities of governmental, non-profit, business and community leaders to strengthen the prevention, treatment, harm reduction, and law enforcement/criminal justice systems in Bernalillo County, and Dr. Wiese serves as the Chair of the Initiative’s Coordinating Committee. Through their efforts, Bernalillo County has taken significant strides in providing support and treatment for individuals struggling with addiction, increasing the availability of naloxone, providing medically assisted treatment (MAT) in its detention center, and raising awareness throughout the County.
Albuquerque City Councilor Diane Gibson, District 7, was recognized for her leadership role in promoting public awareness of naloxone, a life-saving medication that reverses the effects of an opioid overdose, is easy to administer and safe to use. Councilor Gibson kicked off a public awareness campaign in April 2016, to educate the community about naloxone, and to encourage those who keep narcotic painkillers in their homes or who have family members or friends who are addicted to heroin or prescription painkillers to keep emergency doses of naloxone on hand. Councilor Gibson was a leader in the effort that resulted in legislation making naloxone available in numerous city-owned facilities throughout Albuquerque and requiring that officers of the Albuquerque Police Department be equipped with and trained to administer naloxone.
Dr. Joanna Katzman, Medical Director, UNM Pain Clinic, UNM Health Sciences Center, was recognized for her critical role in the enactment of the first-of-its-kind legislation supported by the UNM Health Sciences Center to make a life-saving drug that reverses the effects of opioid overdoses more widely available to New Mexicans. House Bill 370 puts naloxone into the hands of law enforcement officers and makes the medication available to individuals undergoing narcotic replacement therapy and newly released inmates diagnosed with opioid addiction. Dr. Katzman previously played a key role in enactment of legislation requiring continuing medical education (CME) training in the treatment of chronic pain, and participated in developing the mandatory CME program for physicians and physician assistants that ensures that healthcare providers in New Mexico pursue evolving best practices in pain and addiction treatment.
Dr. Snehal R. Bhatt, Medical Director of Addictions and Substance Abuse Programs, UNM Psychiatric Center, was recognized for his outstanding efforts to improve access to addiction treatment in communities across New Mexico, exploring novel pharmacological treatments for addictive illnesses, and educating medical students, residents and medical professionals throughout New Mexico and across the country. Dr. Bhatt is part of the UNM Health Sciences Center team collaborating with the Indian Health Services (IHS) to combat the disproportionate misuse of opioids by Native Americans by using telehealth technology to provide training in best practices in chronic pain management to thousands of IHS health care providers.
Chief Medical Investigator Kurt Nolte, Medical Investigator Hannah Kastenbaum and Forensic Pathologist Karen Cline-Parhamovich of the New Mexico Office of the Medical Investigator (OMI), were recognized for their outstanding contributions to combatting New Mexico’ opioid epidemic. OMI is on the front-line of the opioid epidemic. Through the leadership of Dr. Nolte, Dr. Kastenbaum and Dr. Cline-Parhamovich, OMI has emerged as integral information-sharing partner in the HOPE Initiative. OMI is working closely with the U.S. Attorney’s Office in an effort to create a real-time surveillance model for all drug-related deaths. Such model would be the first of its kind and would enable both health and public safety officials to work in lockstep to address this devastating problem.
Executive Director Jennifer Weiss-Burke and Prevention Specialist Lou Duran of Healing Addiction in Our Community were recognized for raising community awareness of the dangers of opioid abuse and addiction. HAC is a non-profit organization founded seven years ago by concerned parents and grandparents, and is dedicated to providing education and awareness about the heroin and opiate epidemic that plagues our state. HAC provides the voices for those who have lost their lives to addiction and for those who continue to struggle. Years before the rest of the country realized that the opioid epidemic was looming, Ms. Weiss-Burke, Ms. Duran and HAC were using their personal stories to draw attention to this critically important issue. The HOPE Initiative continues to be inspired by Ms. Weiss-Burke, Ms. Duran and HAC, and the U.S. Attorney’s Office is proud to collaborate with them on HOPE’s education and prevention efforts.
Susan McKee, Counseling Manager, Albuquerque Public Schools, was recognized for her outstanding work supervising and coordinating the Crossroads Counselors Program. APS’s seven Crossroads Counselors educate students on substance abuse and help students with drug issues overcome their problems so they may successfully further their lives and educations. Crossroads Counselors all have master's degrees, school counselor licenses and training in substance abuse counseling. Ms. McKee and the Crossroad Counselors support and participate in the prevention and education component of the HOPE Initiative by including Generation Rx, DEA and the U.S. Attorney’s Office in their substance abuse programs, and by providing guidance on HOPE presentations to ensure that they are relevant and relatable to teens and young adults.
Brittany Haggard, a Pharm. D. candidate at the UNM College of Pharmacy and 2016 Chairperson of Generation Rx, was recognized for her outstanding support of and participation in the prevention and education component of the HOPE Initiative. Generation Rx is an educational outreach program of the UNM College of Pharmacy that educates middle school, high school and college students, parents and senior citizens about the dangers of prescription drug misuse. Ms. Haggard and other Generation Rx members collaborated with the U.S. Attorney’s Office and DEA in presenting prevention programs to thousands of students in 2016.
Three law enforcement officers of the Drug Enforcement Administration were recognized for their outstanding support of and participation in the prevention and education component of the HOPE Initiative. Working with Generation Rx and the U.S. Attorney’s Office, they regularly participate in the Albuquerque Public Schools’ Parent Involvement Program (PIP). The PIP provides an alternative to long-term suspensions for students who are caught on campus with drugs or alcohol that requires students and their parents participate in a series of counseling sessions that help students get back on track by focusing on communication, problem solving and the effects of drugs.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
U.S. Attorney’s Office Honors 123 Officers and Citizens for Exceptional Contributions to Public Safety in New MexicoRead the Press Release
ALBUQUERQUE – The U.S. Attorney’s Office today honored 111 law enforcement officers, agents and investigators for their outstanding work on dozens of cases that led to the convictions of murderers, sexual predators, drug dealers, fraudsters, and other criminals during an awards ceremony in Albuquerque, N.M. Twelve private citizens and policymakers also were recognized for exceptional contributions to the Office’s public safety initiatives addressing the opioid epidemic, youth prevention and education programs, officer safety, and national security. The ceremony, held at the Vincent E. Griego Council Chambers of the Albuquerque/Bernalillo County Government Center, drew a large crowd of prosecutors and staff from the U.S. Attorney’s Office, leaders of numerous federal, state, local, and tribal law enforcement agencies, and representatives from the UNM Health Sciences Center, City of Albuquerque, Bernalillo County, Albuquerque Public Schools, and community organizations.
Acting U.S. Attorney James D. Tierney said the Office’s Thirteenth Annual Law Enforcement Awards Ceremony recognized the outstanding work performed by honorees in 2016 on a wide variety of investigations, including those involving violent crimes, narcotics trafficking, fraud and public corruption, and national security matters. It also distinguished the exceptional efforts of some of New Mexico’s most distinguished, dedicated, and deserving private citizens and policymakers. The efforts recognized during the ceremony represent only a small portion of the remarkable work performed by law enforcement and citizens on behalf of the communities.
“The many men and women being honored today exemplify the professionalism, dedication, and commitment to public service shown by law enforcement, private citizens, and policymakers throughout New Mexico each and every day,” said Acting U.S. Attorney Tierney. “This ceremony is a way to express our appreciation to the officers and agents on the front lines of justice, as well as the private citizens and policymakers who work tirelessly to make New Mexico stronger, safer, and more just.”
Former U.S. Attorney Damon P. Martinez also was honored during the ceremony for his service as U.S. Attorney for the District of New Mexico from May 2014 to March 2017, as well as an Assistant U.S. Attorney from 2001 to 2014. Mr. Martinez received accolades from the leaders of numerous law enforcement agencies. Dr. Paul B. Roth, Chancellor of the UNM Health Sciences Center, honored Mr. Martinez for collaborating with him in establishing the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative, a program which seeks to protect our communities from the dangers associated with heroin and opioid painkillers and to reduce the number of opioid-related deaths in New Mexico.
The ceremony honored the achievements of law enforcement officers from a multitude of federal, state, local, and tribal agencies. In addition to law enforcement, the ceremony also recognized the achievements of private citizens who have improved the safety and lives of the citizens of New Mexico.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in New Mexico, as well as with representing the federal government in civil litigation. The District is composed of approximately 80 Assistant U.S. Attorneys and approximately 91 staff members at offices located in Albuquerque and Las Cruces. Today’s ceremony recognized work undertaken in collaboration with the Albuquerque office of the U.S. Attorney’s Office. A separate ceremony in Las Cruces will recognize work undertaken in collaboration with the Las Cruces office.
U.S. Attorney's Office and DEA announce National Prescription Drug Take Back Day collection sitesRead the Press Release
CHARLESTON, W.Va. – The United States Attorney’s Office for the Southern District of West Virginia and the Drug Enforcement Administration’s Charleston District Office announced today the location of collection sites for the Drug Enforcement Administration’s National Prescription Drug Take Back Day. The event provides safe venues for West Virginians to responsibly dispose of prescription drugs. National Prescription Drug Take Back Day is on Saturday, April 29, 2017, from 10:00 a.m. until 2:00 p.m. Anyone can properly dispose of prescription medication by visiting one of several conveniently located collection sites throughout West Virginia.
“West Virginians know that opioid abuse is at a crisis level. Our state leads the nation in drug overdose deaths, and the widespread prevalence of unused prescription medication is a significant contributor to the problem,” stated United States Attorney Carol Casto. “Prescription Drug Take Back Day is an opportunity to get rid of a substantial part of the pain pill supply available for abuse. I urge everyone to do their part to fight drug abuse by going to a collection site and safely disposing of unused, expired, and dangerous prescription medication.”
“Last year, we lost more than 52,000 Americans to drug overdoses, more than 33,000 of those were from opioids. This program gives West Virginians an opportunity to rid their households of unwanted prescription medications without question. These are prescriptions that won’t have a chance to get diverted in an illegal manner,” stated Assistant Special Agent in Charge David Gourley of the Drug Enforcement Administration’s Charleston District Office.
Nearby collection sites can be found by visiting www.dea.gov, clicking on the “Take-Back Site Locations” icon, and searching by zip code, county, city, and state. Another option for locating collection sites is to call 800-882-9539. West Virginians have the option of visiting over 90 sites throughout the state to dispose of prescription drugs. Only pills and other solids, such as patches, can be brought to collection sites – liquids, needles, or other sharps will not be accepted.
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Two Men Sentenced to More Than Twenty Years Each for the Armed Robbery of Multiple Bay Area BusinessesRead the Press Release
OAKLAND– Shawan I. Spragans and Merl J. Simpson were sentenced in federal court in Oakland today to serve prison sentences of 23 years and 20 years, respectively, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The defendants each were also ordered to pay $2,014 in restitution stemming from an armed robbery spree committed in the Bay Area between approximately February 1, 2016, and April 21, 2016. The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, U.S. District Judge, following guilty pleas entered by the defendants on January 13, 2017, to conspiracy, attempt, and multiple robberies affecting interstate commerce (Hobbs Act robbery). The defendants each also pleaded guilty to discharging a firearm in furtherance of Hobbs Act robbery, and being a felon in possession of firearms.
According to their plea agreements, on March 3, 3016, Spragans, 41, of Oakland, and a co-conspirator entered a Berkeley pharmacy wearing masks, gloves, and dark-colored clothing, pointed a firearm at employees and customers, and stole cash from a register. Simpson, 47, of Antioch, drove the getaway vehicle. On March 20, 2016, Spragans and a co-conspirator entered a barbecue restaurant in Berkeley wearing masks and dark clothing, and forced three employees at gunpoint to stand still while Spragans and his co-conspirator robbed the restaurant. They also robbed the employees of personal cash. They fled the restaurant with the stolen cash, and Simpson drove them away in the getaway vehicle. On April 7, 2016, Spragans and a co-conspirator entered an Ethiopian restaurant in Berkeley wearing masks and dark clothing. They each pointed revolvers at two female employees and robbed them of the restaurant’s cash. Spragans entered the kitchen and encountered another employee, who struggled with Spragans as the employee attempted to escape. During that physical encounter, Spragans fired a bullet at the employee from his revolver. The bullet missed the employee. Spragans and his co-conspirator then fled the restaurant with the stolen cash, and Simpson drove them away in the getaway vehicle. Simpson also admitted that, earlier on April 7, 2016, prior to robbing the Ethiopian restaurant, he and a co-conspirator robbed a pizzeria in San Francisco at gunpoint. Finally, on April 21, 2016, Spragans and Simpson attempted to rob a bar in San Francisco at gunpoint. However, police already were in place conducting surveillance on the location and arrested the defendants as they attempted to flee the area. The police also arrested a co-conspirator, who was waiting in the getaway car.
Spragans and Simpson were indicted by a federal grand jury on June 30, 2016. They have remained in federal custody since they made their initial appearances in federal court on July 7, 2016. They pleaded guilty on January 13, 2017.
In addition to the prison terms, Judge Gonzalez Rogers also sentenced each defendant to a five-year term of supervised release.
Assistant U.S. Attorney Bill Gullotta is prosecuting the case with the assistance of Michelle Alter Eck and Trina Khadoo. The prosecution is the result of an investigation by the FBI and the Berkeley, San Francisco, San Leandro, and Albany Police Departments.
Torrington Woman Sentenced to 21 Months in Federal Prison for Health Care FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PATRICIA LAFAYETTE, 62, of Torrington, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 21 months of imprisonment, followed by three years of supervised release, for committing health care fraud. Judge Bolden also ordered LAFAYETTE to serve her first six months of supervised release in home confinement, and to pay restitution of $1.6 million.
Accprding to court documents and statements made in court, in March 2011, LAFAYETTE and another individual approached Anne Charlotte Silver, a licensed clinical social worker who owned and operated Silver Counseling Services, LLC, in Canton and Bantam. LAFAYETTE, the other individual, and Silver all agreed to engage in a scheme to defraud Medicaid in which Silver permitted LAFAYETTE and the other individual to bill Medicaid for licensed psychotherapy services using Silver’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Silver kept 25 percent of the proceeds, and paid the remaining 75 percent to LAFAYETTE and the other individual.
Over the next four years, LAFAYETTE submitted more than 18,000 false claims for psychotherapy using Silver’s provider number. LAFAYETTE regularly submitted the claims twice a month, every month, over this period. The claims included more than $71,000 in false claims for psychotherapy services purportedly provided to LAFAYETTE’s daughter and grandchildren, and more than $67,000 in false claims for psychotherapy services provided to LAFAYETTE’s son’s girlfriend and her children. As part of her plea, LAFAYETTE admitted to defrauding Medicaid of more than $1.6 million through the scheme, of which LAFAYETTE received more than $1.2 million.
On July 15, 2016, LAFAYETTE pleaded guilty to one count of health care fraud.
On May 2, 2016, Silver pleaded guilty to the same charge. She is scheduled to be sentenced on May 8.
In addition, LAFAYETTE’s son, Maurice Sharpe, pleaded guilty to the same charge on December 13, 2016. He is scheduled to be sentenced on June 19.
“As Judge Bolden recognized in his remarks imposing this sentence, Medicaid fraud is a serious offense,” stated Attorney Daly. “One of the most important benefits the Medicaid program provides is mental health counseling to individuals who cannot themselves afford to pay for such services. Through her actions, the defendant in this case stole $1.6 million needed state and federal tax dollars dedicated to providing mental health counseling, resulting in less money to provide this vital medical care to Medicaid clients. My Office is committed to working with our state partners to vigorously protect the Medicaid program.”
“I commend the Medicaid Fraud Control Unit in the Office of the Chief State’s Attorney and the Office of the Inspector General of the U.S. Department of Health and Human Services for their work on this case and continued collaboration to preserve the integrity of government programs that exist to serve those in need,” said Chief State’s Attorney Kevin T. Kane.
“Medicaid provides health care services to some of the most vulnerable members of our society, and it’s our agency’s mission to ensure the program funds are spent properly,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our federal and state partners, we will continue to hold accountable anyone who attempts to enrich themselves by fraudulently billing for Medicaid services.”
The criminal case was jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office. U.S. Attorney Daly thanked the Connecticut Department of Social Services and the Connecticut Attorney General’s Office for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Connecticut Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Tony Torrez Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Tony Derrick Torrez, 33, of Albuquerque, N.M., pled guilty today in federal court to drug trafficking and firearms charges. The plea agreement recommends that Torrez be sentenced to a term of imprisonment within the range of 93 to 101 months followed by a term of supervised release to be determined by the court. The plea agreement also requires Torrez to forfeit to the United States $64,000 in drug proceeds and firearms and ammunition seized during the investigation of the case.
The guilty plea was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Will R. Glaspy of the El Paso Division of the DEA, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Gorden E. Eden Jr., of the Albuquerque Police Department (APD).
Torrez was charged in a federal criminal complaint in Oct. 2015, with possession of marijuana with intent to distribute and using and carrying firearms in relation to drug trafficking crimes. According to the complaint, committed these crimes on Oct. 21 and 22, 2015, in Bernalillo County, N.M. was subsequently charged in a five-count indictment with possessing marijuana with intent to distribute; maintaining a place for the purpose of distributing controlled substances; possession of cocaine, testosterone and its esters; possession of firearms and ammunition by an illegal drug user; and possessing firearms and ammunition in relation to a drug trafficking crime. The indictment asserted that committed these five crimes on Oct. 21, 2015, in Bernalillo County.
According to court filings, the federal investigation into Torrez began on Oct. 21, 2015, when APD received a tip about a suspect who shot and killed a child during a road rage incident; the tipster provided a residential address for the suspect. Based on the tip, APD officers conducted surveillance at the residence where they observed a man, subsequently identified as Torrez, load items into a Toyota sedan. APD officers later conducted a traffic stop on the Toyota after a woman drove away from the residence in the Toyota. Shortly thereafter, APD officers conducted a traffic stop on a Lexus sedan that drove away from the residence and identified the driver as Torrez. APD sealed and towed the two vehicles to the APD Crime Lab.
On Oct. 21, 2015, APD executed a state search warrant at the aforementioned residence where they found shoeboxes containing U.S. currency, paraphernalia and other items consistent with the use of marijuana and a substance believed to be “wax,” a concentrated form of THC oil processed from the marijuana plant. Thereafter, the DEA executed a federal search warrant on Torrez’s residence and the two vehicles and seized items and paraphernalia used for distributing marijuana and possibly for the manufacturing THC “wax” and oil. From the vehicles, the officers seized a bag with U.S. currency, marijuana, firearms and ammunition, a bullet-proof vest, a small amount of suspected cocaine, and drug paraphernalia. Court filings indicate that approximately $64,000.00 in cash was seized from Torrez’s residence and vehicles.
During today’s proceedings, Torrez pled guilty to all five counts of the indictment. In his plea agreement, Torrez admitted possessing marijuana in Oct. 2015 that he intended to distribute to others as well as illegal steroids for his personal use. Torrez also admitted possessing several firearms while he was using the illegal steroids to protect himself from the dangers of the drug trafficking business. Finally, Torrez admitted using his residence to store marijuana he sold.
Torrez previously pled guilty in Dec. 2016, to related state court charges arising out of the murder of a child during the Oct. 21, 2015 road rage incident, and was sentenced to a 16-year term of imprisonment. Under the terms of the plea agreement in the federal case, ’ federal sentence will run consecutive to at least 15 of the 16-year state prison sentence. remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque offices of the DEA and Bureau of Alcohol, Tobacco, Firearms and Explosives and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Paul Mysliwiec and Nicholas Ganjei are prosecuting the case.
Three Southern Arizona Men and One Woman Sentenced to Lengthy Prison Terms for Exporting Firearms, Ammunition, and Silencers to Hong KongRead the Press Release
TUCSON, Ariz. – Yesterday, Peter Steve Plesinger, 55, of Sahuarita, Ariz., and Stephen Edward Smith, 63, of Tucson, Ariz., were sentenced by U.S. District Judge James A. Soto to 87 months and 102 months, respectively, in prison. Both men had previously pleaded guilty to exportation of munitions from the United States to Hong Kong, dealing firearms without a license, and money laundering. Two other defendants, Irina Cvetkovic and Earl Richmond, both of Sahuarita, Ariz., also were charged and convicted for their lessor roles in the conspiracy.
On June 27, 2014, law enforcement authorities in Hong Kong intercepted a package containing 139 rounds of ammunition that had been shipped from Arizona by Plesinger. A search of the intended recipient’s Hong Kong residence resulted in the recovery of three rifles, two pistols, four rifle barrels, a silencer, and at least 9,000 rounds of ammunition. Further investigation revealed that Plesinger had previously shipped those items to Hong Kong in packages with innocuous labels, that Plesinger had been paid at least $64,500 to ship large quantities of firearms, ammunition, and silencers to Hong Kong, and that Smith had been paid at least $59,550 for making similar shipments.
“The sentences imposed in this case should send a strong message to those who would consider illegally exporting firearms, ammunition, or silencers to other countries,” stated Acting United States Attorney Elizabeth A. Strange. “We will continue to work diligently with our national and international partners to vigorously investigate and prosecute such conduct.”
"I wish to compliment the tenacity of the ATF agents and prosecuting attorneys that brought this case to a successful conclusion. Our agents left no stone unturned as they doggedly pursued these criminals and brought them to justice. ATF will continue our role in enforcing violations of the federal firearms and explosives laws both domestically and in this case internationally," stated Assistant Special Agent in Charge, Mark Murray.
"HSI with our domestic and international law enforcement partners, is dedicated to making communities safer by bringing criminals to justice. The sentences of the defendants is a direct result of the steadfast efforts of federal agents to prevent firearms from falling into the hands of transnational criminal organizations who pose a threat to public safety both here and abroad,” said Scott Brown, special agent in charge of HSI Phoenix.
The investigation in this case was conducted by the Department of Homeland Security-Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, United States Customs and Border Protection (Los Angeles), the Hong Kong Customs and Excise Department, the Hong Kong Police Force, and the Hong Kong Department of Justice. The prosecution was handled by Serra M. Tsethlikai and Angela Martinez, Assistant U.S. Attorneys, District of Arizona, Tucson, with substantial assistance from the Department of Justice’s Office of International Affairs.
CASE NUMBER: CR-14-1362-TUC-JAS
RELEASE NUMBER: 2017-038_Plesinger et al
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
The U.S. Attorney’s Office Supports DEA’s Prescription Drug Take-Back DayRead the Press Release
The U.S. Attorney’s Office for the Southern District of Florida encourages the public to participate in the Drug Enforcement Administration’s (DEA) National Prescription Drug Take-Back Day this Saturday, April 29, 2017.
“The collective goal of the U.S. Attorney’s Office, DEA and concerned South Florida residents is to prevent potentially dangerous controlled substances from falling into the wrong hands,” stated Acting U.S. Attorney Benjamin G. Greenberg. “The rate of prescription drug abuse is staggering. We are now confronted with a horrific reality – that overdoses from all drugs are the leading cause of injury-related deaths, eclipsing the tragic loss of life from motor vehicle crashes or firearms. Turning in your outdated or unused prescription drugs is one step forward, in a united front to combat the epidemic of addiction, overdoses and death.”
On October 22, 2016, the public turned in 731,269 pounds—almost 366 tons—of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds (more than 3,500 tons) of prescription drugs have been removed from medicine cabinets, kitchen drawers, and nightstands by citizens around the country.
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused controlled prescription drugs (CPDs) in 2015, including the almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Tragically, some painkiller abusers move on to heroin: four out of five new heroin users started with painkillers. Almost 30,000 people —78 a day—died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
The Prescription Drug Take-Back initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
On Saturday, collection sites will be set up throughout communities nationwide – including in the Southern District of Florida. To locate a collection site near you, go to the DEA Office of Diversion Control web site at https://www.deadiversion.usdoj.gov/drug_disposal/takeback where you can search by zip code, city, or state. The service is free and anonymous.
Stratford Man Charged with Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANTHONY LEE PAROWSKI, 29, of Stratford, has been charged by federal criminal complaint with possession with intent to distribute, and distribution of, heroin.
PAROWSKI was arrested on April 25. He appeared yesterday before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained. The offense carries a maximum term of imprisonment of 20 years.
As alleged in the criminal complaint, in March 2017, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Milford Police Department received information that PAROWSKI was distributing heroin to numerous individuals. In April 2017, investigators conducted two controlled purchases of heroin from PAROWSKI, the second of which occurred in a Milford motel room that PAROWSKI had rented. On April 20, investigators approached PAROWSKI as he exited the motel carrying a cardboard box. PAROWSKI dropped the box and ran, and was observed discarding items as he ran. He was apprehended after a brief pursuit. A search of PAROWSKI’s person, the cardboard box and the area of the chase revealed approximately 190 dose bags of heroin, 66 grams of additional heroin, and items used to process and package heroin for street sale. A subsequent search of PAROWSKI’s Stratford residence revealed $32,210 in cash.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Smuggler Gets Enhanced Sentence for Raping Undocumented Alien and Brandishing a MacheteRead the Press Release
McALLEN, Texas – A 53-year-old Mexican National has been ordered to federal prison for conspiring to harbor undocumented aliens, announced Acting U.S. Attorney Abe Martinez. Julio Puente-Oliva pleaded guilty Jan. 26, 2017.
Today, U.S. District Judge Micaela Alvarez sentenced Puente-Oliva to 70 months imprisonment. The court enhanced the sentence because he raped the victim and brandished a dangerous weapon during the course of the conspiracy. At the hearing, the court heard from a victim who testified how Puente-Oliva tried to forced her to consume alcohol and showed her a machete he kept underneath his mattress. She also stated that he said he would “use it if he had to.” She told the court that Puente-Oliva raped her and then threatened to kill her if she accused him of anything. In handing down the sentence, the court noted the sentence imposed was necessary to protect the public from further crimes of the defendant and to deter future criminal conduct.
From Oct. 1-3, 2016, Puente-Oliva conspired to harbor undocumented aliens in his residence in Edinburg, during which time he committed the sexual assault and threats. On Oct. 3, 2016, the victim escaped from the Edinburg stash home and ran to a nearby restaurant where she asked for police. The victim advised Edinburg Police officers that she had escaped from a stash house where she was sexually assaulted by the caretaker. She has also brought a 16-year-old undocumented alien with her who had been harbored in the same place.
Puente-Oliva will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Edinburg Police Department conducted the investigation. Assistant U.S. Attorney Alex Benavides prosecuted the case.
Singapore Man Sentenced to 40 Months in Prison for Plot Involving Exports to Iran of U.S. ComponentsRead the Press Release
Lim Yong Nam, aka Steven Lim, 43, a citizen of Singapore, was sentenced today to 40 months in prison for his role in a conspiracy that caused thousands of radio frequency modules to be illegally exported from the U.S. to Iran, at least 14 of which were later found in unexploded improvised explosive devices (IEDs) in Iraq.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Channing D. Phillips of the District of Columbia, Acting Assistant Secretary of Export Enforcement Richard Majauskas for the U.S. Department of Commerce, Acting Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) and Assistant Director Bill Priestap of the FBI’s Counterintelligence Division. The sentence was issued by the Honorable Emmet G. Sullivan.
Lim was extradited in 2016 from Indonesia, where he had been detained since October 2014 in connection with the U.S. request for extradition. He pleaded guilty on Dec. 15, 2016, to a charge of conspiracy to defraud the U.S. by dishonest means. Lim will be deported upon completion of his sentence.
Lim and others were indicted in the District of Columbia in June of 2010 on charges involving the shipment of radio frequency modules made by a Minnesota-based company. The modules have several commercial applications, including in wireless local area networks connecting printers and computers in office settings. These modules include encryption capabilities and have a range allowing them to transmit data wirelessly as far as 40 miles when configured with a high-gain antenna. These same modules also have potentially lethal applications. Notably, during 2008 and 2009, coalition forces in Iraq recovered numerous modules made by the Minnesota firm that had been utilized as part of the remote detonation system for IEDs. According to the plea documents filed in the case, between 2001 and 2007, IEDs were the major source of American combat casualties in Iraq.
In a statement of offense submitted at the time of the guilty plea, Lim admitted that between August 2007 and February 2008, he and others caused 6,000 modules to be purchased and illegally exported from the Minnesota-based company through Singapore, and later to Iran, in five shipments, knowing that the export of U.S.-origin goods to Iran was a violation of U.S. law. In each transaction, Lim and others made misrepresentations and false statements to the Minnesota firm that Singapore was the final destination of the goods; at no point in the series of transactions did Lim or any of his co-conspirators inform the company that the modules were destined for Iran. Similarly, according to the statement of offense, Lim and others caused false documents to be filed with the U.S. government, in which they claimed that Singapore was the ultimate destination of the modules. Lim and his co-conspirators were directly aware of the restrictions on sending U.S.-origin goods to Iran.
Shortly after the modules arrived in Singapore, they were kept in storage at a freight forwarding company until being aggregated with other electronic components and shipped to Iran. There is no indication that Lim or any of his co-conspirators ever took physical possession of these modules before they reached Iran or that they were incorporated into another product before being re-exported to Iran.
According to the statement of offense, 14 of the 6,000 modules the defendants routed from Minnesota to Iran were later recovered in Iraq, where the modules were being used as part of IED remote detonation systems.
This investigation was jointly conducted by ICE Homeland Security Investigations (HSI) special agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, the Treasury Department’s Office of Foreign Assets Control, and the Office of International Affairs in the Justice Department’s Criminal Division, particularly the Justice Department Attaché in the Philippines, as well as the FBI and HSI Attachés in Singapore and Jakarta.
U.S. law enforcement authorities thanked the governments of Singapore and Indonesia for the substantial assistance that was provided in the investigation of this matter.
The prosecution was handled by Assistant U.S. Attorney Ari Redbord of the District of Columbia and Trial Attorney Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.
Singapore Man Sentenced to 40 Months in Prison for Plot Involving Exports to Iran of U.S. ComponentsRead the Press Release
WASHINGTON – Lim Yong Nam, aka Steven Lim, 43, a citizen of Singapore, was sentenced today to 40 months in prison for his role in a conspiracy that caused thousands of radio frequency modules to be illegally exported from the U.S. to Iran, at least 14 of which were later found in unexploded improvised explosive devices (IEDs) in Iraq.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Channing D. Phillips of the District of Columbia, Acting Assistant Secretary of Export Enforcement Richard Majauskas of the U.S. Department of Commerce, Acting Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE), and Assistant Director Bill Priestap of the FBI’s Counterintelligence Division. The sentence was issued by the Honorable Emmet G. Sullivan.
Lim was extradited in 2016 from Indonesia, where he had been detained since October 2014 in connection with the U.S. request for extradition. He pleaded guilty on Dec. 15, 2016, to a charge of conspiracy to defraud the U.S. by dishonest means. Lim will be deported upon completion of his sentence.
Lim and others were indicted in the District of Columbia in June of 2010 on charges involving the shipment of radio frequency modules made by a Minnesota-based company. The modules have several commercial applications, including in wireless local area networks connecting printers and computers in office settings. These modules include encryption capabilities and have a range allowing them to transmit data wirelessly as far as 40 miles when configured with a high-gain antenna. These same modules also have potentially lethal applications. Notably, during 2008 and 2009, coalition forces in Iraq recovered numerous modules made by the Minnesota firm that had been utilized as part of the remote detonation system for IEDs. According to the plea documents filed in the case, between 2001 and 2007, IEDs were the major source of American combat casualties in Iraq.
In a statement of offense submitted at the time of the guilty plea, Lim admitted that between August 2007 and February 2008, he and others caused 6,000 modules to be purchased and illegally exported from the Minnesota-based company through Singapore, and later to Iran, in five shipments, knowing that the export of U.S.-origin goods to Iran was a violation of U.S. law. each transaction, Lim and others made misrepresentations and false statements to the Minnesota firm that Singapore was the final destination of the goods; at no point in the series of transactions did Lim or any of his co-conspirators inform the company that the modules were destined for Iran. Similarly, according to the statement of offense, Lim and others caused false documents to be filed with the U.S. government, in which they claimed that Singapore was the ultimate destination of the modules. Lim and his co-conspirators were directly aware of the restrictions on sending U.S.-origin goods to Iran.
Shortly after the modules arrived in Singapore, they were kept in storage at a freight forwarding company until being aggregated with other electronic components and shipped to Iran. There is no indication that Lim or any of his co-conspirators ever took physical possession of these modules before they reached Iran or that they were incorporated into another product before being re-exported to Iran.
According to the statement of offense, 14 of the 6,000 modules the defendants routed from Minnesota to Iran were later recovered in Iraq, where the modules were being used as part of IED remote detonation systems.
This investigation was jointly conducted by ICE Homeland Security Investigations (HSI) special agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, the Treasury Department’s Office of Foreign Assets Control, and the Office of International Affairs in the Justice Department’s Criminal Division, particularly the Justice Department Attaché in the Philippines, as well as the FBI and HSI Attachés in Singapore and Jakarta.
U.S. law enforcement authorities thanked the governments of Singapore and Indonesia for the substantial assistance that was provided in the investigation of this matter.
The prosecution was handled by Assistant U.S. Attorney Ari Redbord of the District of Columbia and Trial Attorney Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.
Seven Members of Bronx Drug Trafficking Organization Charged in Federal Court with Narcotics TraffickingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James G. Hunt, Special Agent in Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging seven members of the “MMOB” drug trafficking organization with participating in a narcotics trafficking conspiracy. The case has been assigned to United States District Judge Paul G. Gardephe. Six of the defendants are currently in custody, and were presented before United States Magistrate Judge Kevin Nathaniel Fox later this afternoon.
Acting Manhattan U.S. Attorney Joon H. Kim said: “With today’s indictment of seven alleged members of a drug trafficking organization, we seek to stem the flow of drugs and the havoc they wrought on the Norwood neighborhood of the Bronx. As the Indictment alleges, these defendants trafficked in all types of drugs, including crack cocaine, cocaine, oxycodone and marijuana, and peddled them on the streets, by delivery, and out of apartment buildings in the area. I thank our partners at the NYPD and DEA for their continued commitment to combatting drug trafficking and making our city safer.”
Special Agent in Charge James J. Hunt said: “Law enforcement’s collaboration since last summer has led to the indictments of members of the MMOB crew on narcotics conspiracy charges. The Norwood section of the Bronx has been plagued by these individuals for some time and today’s efforts are a step in reclaiming this neighborhood for the community. These gang members allegedly trafficked a myriad of drugs to include strong prescription narcotics, which is a focus of our current investigative efforts, as these drugs are causing serious issues for our citizens.”
Police Commissioner James P. O’Neill said: “This indictment is another example of the NYPD’s commitment to hold responsible those who distribute narcotics into our communities. I commend the work of the NYPD investigators involved and our federal partners who continue to work tirelessly to protect our communities.”
As alleged in the Indictment and in other court papers[1]:
The MMOB crew (“Mosholu Money Over Bitches”) is a group of individuals who are engaged in narcotics trafficking in the vicinity of Gates Place, Knox Place, and Mosholu Parkway, in the Norwood neighborhood of the Bronx (the “MMOB DTO”). From July 2016 up to April 2017, in the Southern District of New York and elsewhere, JOSHUA PEREZ a/k/a “Link,” JAVIER COLLAZO, HIRAM COLLAZO, a/k/a “Alex, NATALIE JUSINO, KEVIN MIESES, AMAURY MODESTO, and ANDREW PEREZ conspired to distribute significant amounts of narcotics, including crack cocaine, cocaine, oxycodone, and marijuana, in and around the Norwood neighborhood of the Bronx, on a daily basis. The MMOB DTO controlled narcotics sales between Gates Place and Knox Place, primarily between Mosholu Parkway and West Gun Hill Road, including by selling on the streets and in and around apartment buildings in that area.
Each defendant is charged with one count of conspiracy to distribute narcotics, which carries a maximum sentence of life in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. A chart with the defendants’ ages and residences is below.
All of the defendants except for JOSHUA PEREZ, who remains at large, are in custody.
Mr. Kim thanked the DEA and the NYPD for their work on the investigation.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Eli J. Mark and Jilan J. Kamal are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
DEFENDANT
AGE
RESIDENCE
JOSHUA PEREZ a/k/a “Link”
30
Bronx, New York
JAVIER COLLAZO
20
Bronx, New York
HIRAM COLLAZO, a/k/a “Alex”
19
Bronx, New York
NATALIE JUSINO, a/k/a “Papo”
34
Bronx, New York
KEVIN MIESES
25
Bronx, New York
AMAURY MODESTO
37
Bronx, New York
ANDREW PEREZ
24
Bronx, New York
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described should be treated as an allegation.
Seven Baltimore Men Indicted in Federal Drug Conspiracy Related to 2014 Murder of Mckenzie ElliottRead the Press Release
Gang Member Allegedly Shot and Killed Three-Year-Old Girl in Turf Battle;
Authorities Aim to “Catch the Killer and Dismantle his Gang”Baltimore, Maryland – A federal grand jury has returned an indictment charging seven alleged members of the Old York Money Gang, an alleged drug trafficking organization (DTO) operating in the Waverly Way section of Baltimore, with conspiracy to distribute and possess with the intent to distribute controlled substances. One defendant is charged with using a gun to kill an innocent bystander. The indictment was returned on April 25, 2017, and unsealed today upon the arrest of the defendants.
The indictment charges the following defendants, all of Baltimore:
Terrell Plummer, a/k/a Rell, age 28;
Davonte Rich, a/k/a Chopper, age 22;Trevon Beasley, a/k/a Tre, age 23;
Tyrone Jamison, a/k/a Ty, age 23;
Davin Lawson, a/k/a D, age 25;
Calvin Watson, a/k/a Monster, age 26; andTyron Brown, a/k/a Boobie, age 26.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Commissioner Kevin Davis of the Baltimore Police Department.
“Exceptional police officers and prosecutors worked tirelessly and creatively to catch the killer and dismantle his gang because they care about saving lives,” said U.S. Attorney Rod J. Rosenstein. “The indictment alleges that an armed drug dealer killed McKenzie Elliott, which is no surprise because most murders in Baltimore are committed by armed drug dealers who belong in prison.”
“The loss of any life is heartbreaking to a family member, but to see this level of callous disregard for human life, especially when it leads to the loss of an innocent child, is wholly unacceptable,” said ATF Baltimore Special Agent in Charge Daniel L. Board. “ATF will remain steadfast in our partnerships with the Baltimore City Police Department and the USAO to combat these blatant and vicious attacks against our communities.”
"This case rocked not only the Waverly community, but the entire city of Baltimore," said Baltimore Police Commissioner Kevin Davis. "McKenzie should be in school, running around with her friends and doing everything a six-year-old does, but instead, her life was cut short by a coward with a gun. This case exemplifies the strength of our federal partnerships and our resolve to go after those who choose to harm citizens, especially our most vulnerable."
According to the 16-count indictment, the defendants were members and associates of the Old York Money Gang (OYMG), a violent drug trafficking organization operating in the Waverly Way neighborhood in the northeastern district of Baltimore since January 2014. Crimes committed by the gang include murder, robbery, extortion, burglary, and narcotics trafficking. A neighborhood gang, OYM generally limits its membership to persons that originate from or live in the Waverly Way neighborhood, and excludes outsiders. The gang represents their association through social and digital media in which members and associates identify themselves by hand signals forming the letters “OY” or written labels of “Old York Money Gang” or OYMG.
The indictment alleges that the defendants sold heroin, powder and crack cocaine, and marijuana in their territory in Waverly Way and elsewhere. The defendants and their associates controlled, maintained, and defended drug territories called “shops” and permitted only OYMG members to sell drugs in these shops. Any non-OYMG members who wished to distribute drugs in these shops would be violently attacked. The defendants agreed to defend their territory. In order to maintain and increase their power, they agreed to commit murder and assaults against anyone who posed a threat to their organization or who invaded their territory.
In the summer of 2014, Plummer allegedly carried a firearm defend OYMG territory and collect drug debts. On July 31, 2014, Plummer, Rich and other OYMG members allegedly violently attacked three victims who had entered OYMG territory to support a friend who was engaged in a dispute with the sister of an OYMG member. In this incident, an OYMG member stabbed one of these victims.
The three victims returned to the same OYMG drug shop on August 1. In order to protect OYMG territory, Plummer allegedly shot multiple rounds at the vehicle carrying the three victims. One of the rounds hit a victim in the head but did not kill him. Another bullet missed the three victims and killed a three year-old girl named McKenzie Elliott.
If convicted, the defendants each face a maximum sentence of 40 years in prison for the drug conspiracy. Plummer faces a maximum sentence of death or life in prison for possession of a firearm in furtherance of a drug trafficking conspiracy in which death results and a maximum of life imprisonment in prison for using, brandishing, and discharging a firearm during a drug trafficking crime. Beasley, Lawson, Jamison, Watson, Plummer, and Brown also face a maximum of 20 years in prison for each count of distribution of heroin, powder cocaine and/or crack cocaine. Rich also faces a maximum of 5 years in prison for distribution of marijuana. The defendants are expected to have an initial appearance later today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the ATF and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys David Metcalf and Robert R. Harding, who are prosecuting the case.
Sentencings for April 24 - April 26, 2017Read the Press Release
Juan Armando Garcia-Paez, 38, of La Mirada, California, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 26, 2017, for conspiracy to distribute 32 pounds of methamphetamine. Garcia-Paez was arrested in Sundance, Wyoming. He received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $2,400.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation, the Wyoming Highway Patrol and the U.S. Drug Enforcement Administration.
Carl Vannatter, 30, of Bismarck, North Dakota, was sentenced by Federal District Court Judge Alan B. Johnson or April 26, 2017, for possession with intent to distribute 50 grams or more of methamphetamine. Vannatter received 60 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation and the Wyoming Highway Patrol.
Jason Michael Nathey, 37, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 25, 2017, for being a felon in possession of a firearm. Nathey was arrested in Cheyenne, Wyoming. He received 18 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Cheyenne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Anthony C. Carlson, 22, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 25, 2017, for possession of child pornography. Carlson was arrested in Cheyenne, Wyoming. He received 36 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment. Restitution in this matter will be determined at a later date. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Michael Jimmy Hanway, 53, of Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 24, 2017, for mail fraud. Hanway was arrested in Riverton, Wyoming. He received five years of supervised probation and was ordered to pay a $100.00 special assessment and $62,500.00 in restitution. This case was investigated by the U.S. Department of Agriculture, Office of Inspector General-Investigations.
Garrett Blackburn, 24, of Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 24, 2017, for attempted robbery. Blackburn was arrested in Florence, Colorado. He received 60 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $653.04 in restitution. This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Uvaldo Lopez-Trejo, 28, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on April 24, 2017, for illegal re-entry of a previously deported alien into the United States. Lopez-Trejo was arrested in Douglas, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Schneider Sentenced for Federal Hate Crime Based on Victim’s Sexual OrientationRead the Press Release
BOISE – Kelly Schneider, 23, of Nampa, Idaho, was sentenced today in U.S. District Court to 336 months in prison, five years of supervised release and a $5,000 fine based on his guilty plea to violently assaulting Steven Nelson because he was a gay man, resulting in Mr. Nelson’s death, announced Acting Assistant Attorney General Tom Wheeler, head of the Justice Department’s Civil Rights Division, and Acting U.S. Attorney Rafael M. Gonzalez, Jr., for the District of Idaho.
Schneider was indicted by a federal grand jury on January 10, 2017, with one count of violating the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act. He pleaded guilty to the charge on February 7, 2017. He was sentenced today by Chief U.S. District Court Judge B. Lynn Winmill.
“Kelly Schneider assaulted and killed a man because of the man’s sexual orientation,” said Acting Assistant Attorney General Wheeler. “This is a federal crime, and the Department of Justice will continue to work with our federal and state law enforcement partners to enforce our federal hate crimes laws.”
“Steven Nelson was assaulted and later died because he was gay,” said Gonzalez. “This is precisely the kind of bias motivated violence that the Shepard-Byrd Hate Crimes Prevention Act was passed to address. I commend the federal and local prosecutors and investigators who brought the defendant to justice.”
According to the plea agreement, on the evening of April 27, 2016, Schneider posted a solicitation for sex on backpage.com, an Internet website, which included a shirtless photo of himself. Mr. Nelson responded to that posting, and Schneider met with him the next evening. Schneider took Mr. Nelson’s money without engaging in any sexual act with Mr. Nelson. Before the encounter, Schneider told his friends that he was not gay and would not let anyone who was gay touch him.
In the early morning hours of April 29, Schneider resumed communication with Mr. Nelson. Schneider then conspired with other individuals to again rob Mr. Nelson. According to the plan, Schneider was to meet up with Mr. Nelson in a parking lot and ask Mr. Nelson to drive to Gott’s Point, an isolated wildlife area in the Deer Flat Wildlife Refuge near Lake Lowell, for a sexual encounter. At Gott’s Point, Schneider would rob Mr. Nelson, and two of Schneider’s cohorts would be lying in wait as “back up” to assist Schneider if Mr. Nelson resisted the robbery.
When Schneider and Mr. Nelson reached Gott’s Point, Schneider immediately began physically assaulting Mr. Nelson, kicking him 20-30 times with steel-toed boots and repeatedly using a homophobic slur. Mr. Nelson never resisted throughout the attack. He died of his injuries later that day. No one else participated in the assault.
Schneider was sentenced earlier this month in state court for first degree murder based on Mr. Nelson’s death. The state court sentenced him to a fixed 28-year term of imprisonment and life indeterminate. Schneider’s federal sentence will be served concurrently to the state sentence.
The Canyon County Sheriff’s Office, with assistance from the Treasure Valley Metro Violent Crime Task Force, conducted the murder investigation. The FBI conducted the federal hate crime investigation.
Saturday is Prescription Drug Take Back Day, with 270 locations in OhioRead the Press Release
Addictive prescription drugs that are thrown away or left untended on shelves and in drawers at home are often stolen and either abused or sold by family members and visitors. That’s why the DEA and thousands of its state, local, and tribal law enforcement and community partners are holding another Prescription Drug Take Back Day this Saturday, April 29, from 10 A.M. to 2 P.M., at over 5,000 sites around the country, including more than 270 sites in Ohio.
The service is free of charge, no questions asked.
America is experiencing an epidemic of addiction, overdose, and death due to abuse of prescription drugs, particularly opioid painkillers. More than 6.4 million Americans age 12 and over -- 2.4 percent of the population -- abuse prescription drugs, according to the 2015 National Survey on Drug Use and Health released last fall. That’s more than abuse cocaine, heroin, hallucinogens, and methamphetamine combined.
Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The majority of prescription drug abusers report that they obtain their drugs from friends and family, including from the home medicine cabinet.
Last October, Americans turned in 366 tons (over 730,000 pounds) of prescription drugs at almost 5,200 sites operated by the DEA and more than 4,000 of its state and local law enforcement partners. Overall, in its 12 previous Take Back events, DEA and its partners have taken in over 7.1 million pounds -- more than 3,500 tons -- of pills.
The public can find a nearby collection site at DEA.GOV and click on the “Take Back Day” box on the home page. You can also fine nearby collections sites by calling 800-882-9529. Only pills and other solids, like patches, can be brought to the collection sites—liquids, needles, or other sharps will not be accepted. This event will go on even if the Federal Government shuts down this weekend.
Sacramento Man Sentenced and Stockton Man Pleads Guilty in Separate Fraudulent Tax Refund CasesRead the Press Release
SACRAMENTO, Calif. — Today United States District Judge Troy L. Nunley sentenced a Sacramento man to two years in prison and a Stockton man pleaded guilty in two separate cases of conspiracy to submit false claims against the United States, U.S. Attorney Phillip A. Talbert announced.
“Identity theft schemes harm everyone, especially those which defraud the United States government and members of our community,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Mr. Windon Jr., his co-conspirators and others like them, who create these elaborate schemes have no purpose other than to mislead others and defraud the IRS. IRS Criminal Investigation remains committed to combatting refund schemes such as this and will continue to devote resources to bring those responsible for such harm to justice.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service, which worked with IRS CI in the Windom case, stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for fraud schemes committed against the public.”
United States v. Windom, et al., 2:15-cr-29
Lejohn Windon Jr., 24, of Sacramento, was sentenced to two years in prison. He is the fourth defendant to be sentenced in this case. According to court documents, Windon and his co‑conspirators Lejohn Windom Sr., Audrey Johnson, and Tracy Hartway submitted at least 682 tax returns to the IRS requesting a total of $1,989,803 in refunds. The IRS mailed at least $1,188,972 in refunds based on those fraudulent claims. In many cases, the defendants submitted the fraudulent tax returns without the knowledge or permission of the taxpayers whose names appeared on the returns. When the conspirators received the tax refund checks, they would forge the signatures of the taxpayers and cash the refund checks for themselves.
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On January 5, 2017, Lejohn Windom Sr. was sentenced by Judge Nunley to seven years and 10 months in prison and ordered to pay $1.1 million in restitution to the IRS;
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On February 9, 2017, Audrey Johnson was sentenced by Judge Nunley to 16 months in prison and ordered to pay $213,725 in restitution;
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On February 26, 2017, Tracy Hartway was sentenced to 28 months in prison and ordered to pay $142,069 in restitution.
This case was the product of a joint investigation by the IRS Criminal Investigation and the United States Postal Inspection Service.
United States v. Grady et al., 2:15-cr-204
Christopher M. Grady, 35, of Stockton, pleaded guilty to conspiracy to submit false claims against the United States and aggravated identity theft. According to court documents, Grady and others submitted tax returns to the IRS that falsely claimed that the persons named on the returns were entitled to tax refunds. Grady obtained the names, social security numbers, and other personal identifying information of various individuals and used that information, often without the knowledge of those people, to submit the tax returns in their names. Altogether, they submitted at least 1,367 false tax returns, requesting approximately $962,853 in tax refunds.
Charges are pending against Grady’s three co-defendants. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the IRS Criminal Investigation.
Assistant United States Attorney Matthew G. Morris is prosecuting both cases.
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Rochester Man Pleads Guilty to Cocaine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Yusef Blocker, 35, of Rochester, NY, pleaded guilty to possession with intent to distribute crack cocaine, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 20 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorneys Richard A. Resnick and Charles E. Moynihan, who are handling the case, said that on March 21, 2016, members of the United States Probation and Pre-Trial Services Office searched an apartment at 505 University Avenue in Rochester as part of their responsibilities while supervising Blocker. The defendant was convicted in 2005 of drug trafficking offenses in the Western District of New York. During the search, probation officers found drug paraphernalia, U.S. currency, and a quantity of crack cocaine.
The plea is the result of an investigation by the United States Probation and Pre-Trial Services Office, under the direction of Chief Probation Officer Anthony SanGiacomo; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt.
Sentencing is scheduled for August 8, 2017, at 10:15 a.m. before Judge Siragusa.
Rochester Man Pleads Guilty in Case Involving BitcoinsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Richard Petix, 32, of Rochester, NY, pleaded guilty to making material false statements and operating an unlicensed money transmitting business, before U.S. District Judge Charles J. Siragusa. The charges carry a maximum penalty of five years in prison.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that Petix lied to federal probation officers and law enforcement agents about his ownership and use of a laptop computer and a smartphone. The defendant is on a term of supervised release following a 2009 conviction for knowingly transporting child pornography in interstate commerce. As a condition of that supervision, Petix was required to notify his probation officer of any computers he used and, as triggered by impermissible or suspicious activity, consent to examinations of such computers. As of October 20, 2015, the defendant told his probation officer that he did not use any computers or the Internet.
On December 3, 2015, Petix conducted a Bitcoin transaction with an undercover federal agent at a business in Buffalo, NY. Using his laptop computer and smartphone, the defendant transferred approximately $13,000 in the form of 37 bitcoins to an address specified by the agent. When confronted by federal probation officers at the scene, however, Petix claimed that the laptop and smartphone were not his and that he could not access them.
Between August, 2014, and December 3, 2015, Petix conducted over 100 Bitcoin transactions wherein he transferred over $200,000 in bitcoins to customers both locally and across the United States. At least some of these customers then used the bitcoins to purchase controlled substances from dark net vendors. At no time during this period did Petix comply with federal money transmitting business registration requirements.
Petix was scheduled to go to trial on May 1, 2017.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Sentencing is scheduled August 14, 2017, at 9:15 a.m. before Judge Siragusa.
Rochester Man Pleads Guilty in Case Involving Bit CoinsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Richard Petix, 32, of Rochester, NY, pleaded guilty to making material false statements and operating an unlicensed money transmitting business, before U.S. District Judge Charles J. Siragusa. The charges carry a maximum penalty of five years in prison.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that Petix lied to federal probation officers and law enforcement agents about his ownership and use of a laptop computer and a smartphone. The defendant is on a term of supervised release following a 2009 conviction for knowingly transporting child pornography in interstate commerce. As a condition of that supervision, Petix was required to notify his probation officer of any computers he used and, as triggered by impermissible or suspicious activity, consent to examinations of such computers. As of October 20, 2015, the defendant told his probation officer that he did not use any computers or the Internet.
On December 3, 2015, Petix conducted a Bitcoin transaction with an undercover federal agent at a business in Buffalo, NY. Using his laptop computer and smartphone, the defendant transferred approximately $13,000 in the form of 37 bitcoins to an address specified by the agent. When confronted by federal probation officers at the scene, however, Petix claimed that the laptop and smartphone were not his and that he could not access them.
Between August, 2014, and December 3, 2015, Petix conducted over 100 Bitcoin transactions wherein he transferred over $200,000 in bitcoins to customers both locally and across the United States. At least some of these customers then used the bitcoins to purchase controlled substances from dark net vendors. At no time during this period did Petix comply with federal money transmitting business registration requirements.
Petix was scheduled to go to trial on May 1, 2017.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Sentencing is scheduled August 14, 2017, at 9:15 a.m. before Judge Siragusa.
Restaurant Owner Sentenced to 15 Years in Prison on Arson and Wire Fraud ChargesRead the Press Release
PROVIDENCE, R.I. –Daniel E. Saad, 51, of Spencer, Mass., today was sentenced to 15 years in federal prison for devising and executing a scheme to burn down his Glocester, R.I., restaurant, Snow’s Clam Box Restaurant and Pub, and then attempting to collect on an insurance policy worth nearly one million dollars.
Saad was also ordered to serve one year supervised release upon completion of his prison term and to pay restitution in the amount of $509,000 to Lloyds of London.
On January 27, 2017, a federal court jury convicted Saad on one count of arson, one count of use of fire to commit wire fraud, and two counts of wire fraud. The jury found that Saad set fire to his business shortly after 5:00 a.m. on November 30, 2014, and then initiated insurance claims via email later the same day and on the following day.
According to the government’s evidence presented during a three-week trial, Saad, who owed banks, private lenders and venders nearly $2.5 million dollars, entered the building through an unlocked rear door, spread gasoline in and around a bar area and ignited the gasoline before fleeing the building. A woman who resided in an apartment above the restaurant reported the fire after fleeing from the building.
Acting United States Attorney Stephen G. Dambruch; Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police and Department of Public Safety; and Glocester Police Chief Joseph S. DelPrete announce Saad’s sentence, imposed by U.S. District Court Judge John J. McConnell, Jr.
According to the government’s evidence, Saad on two occasions told investigators he was at his home in Massachusetts when the fire occurred. During a subsequent interview, he told investigators that he was at his estranged wife’s home in Webster, Mass. On two occasions during interviews with state and federal investigators, Saad’s wife corroborated Saad’s account. However, after being summoned to appear before a federal grand jury and again when testifying during Daniel Saad’s trial, she admitted that Daniel Saad had asked her to provide an alibi for him for the night of the fire. She testified that he was not with her that night.
Cellular data collected and analyzed by law enforcement placed Saad’s cellphone in very close proximity to his restaurant at the time the fire began.
ATF, the Glocester Police Department, Rhode Island State Fire Marshal’s Office and Rhode Island State Police investigated the matter, with the assistance of the Rhode Island Department of the Attorney General and the FBI’s Cellular Analysis Survey Team.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Port Arthur Man Convicted for Federal Violations Related to Port Acres MurderRead the Press Release
BEAUMONT, Texas - A 35-year-old Port Arthur, Texas man has been found guilty by a jury for federal violations related to the murder of a Port Acres woman in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Sabino Orlando Martinez was found guilty by a jury of conspiracy to interfere with interstate commerce by robbery, conspiracy to use and carry firearms during a crime of violence, and conspiracy to possess firearms during a drug trafficking crime following a two-day trial before U.S. District Judge Marcia A. Crone today. After the opening statement by the prosecutor, the defendant pleaded guilty to conspiracy to possess with intent to distribute cocaine and methamphetamine. The trial proceeded on the remaining three charges of which the jury found him guilty after approximately one hour.
According to information presented in court, beginning in 2001, Martinez and others started robbing women in the parking lots of stores and businesses in Port Arthur, Texas. Evidence showed the defendants committed the robberies for the purpose of supporting their crack cocaine habits. The robberies increased to almost daily between 2009 and 2011. During the investigation of these crimes, it was discovered that Martinez and his co-defendants were responsible for the May 14, 2010 death of Allison Neil Clark, of Port Acres, Texas. Clark was shot while driving on West Port Arthur Road. Once law enforcement officers became aware of Martinez’s co-defendant’s vehicle in the area, they were quickly able to focus on Martinez’s involvement. Video surveillance from area businesses verified the vehicle’s presence in the area at the time of the shooting. Testimony at trial was that Martinez fired the shot that killed Clark. Martinez was indicted by a federal grand jury on May 4, 2016.
“This conviction of Sabine Orlando Martinez concludes the prosecution of two very dangerous men, who for more than ten years terrorized innocent Jefferson County victims by robbing, threatening, exploiting, and eventually killing one of their "lambs" they targeted for attack and theft,” said Acting U.S. Attorney Brit Featherston. “A tenacious team of dedicated investigators, Alton Baise, of the Jefferson County Sheriff’s Office; Paul Arvizo, of the Port Arthur Police Department; and Mike Hebert, of the Port Arthur Police Department, refused to let this cold case die. Joined by Assistant U.S. Attorney and prosecutor, Lesley Woods, this team worked night and day, turning over every stone to bring Allison's killer to justice. That happened today!”
Under federal statutes, Martinez faces up to 100 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Port Arthur Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Lesley Woods.
Philadelphia Man Pleads Guilty to Conspiring to file 1.2 Million in False Tax ReturnsRead the Press Release
Voncel R. Harrigan, Sr., 51, of Philadelphia, Pennsylvania entered a plea of guilty to one count of conspiracy to file false income tax returns, announced Acting United States Attorney Louis D. Lappen.
According to court documents, the charges arose from Harrigan’s daughter, Vontia Jones’ tax fraud and identity theft scheme to obtain tax refunds from the IRS by filing over 700 false tax returns amounting to over three million dollars in the tax years 2008 through 2013. Defendant Jones operated a “business” she called “Jones Tax Service” which operated out of her home in Philadelphia. Jones designed multiple flyers for distribution advertising her services that stated “DON’T YOU DESERVE SOME INCOME TAX MONEY TOO? $750 [PER CHILD] WELFARE SOCIAL SECURITY UNEMPLOYMENT DISABILITY EVEN IF YOU NEVER HAD A JOB.” Defendant Jones conspired with her father, Voncel R. Harrigan, Sr., her sister, Michele Wood, and others who solicited personal identifying information from individuals under the guise that Jones’ business would get them “tax money” even if they never worked. Defendant Jones used the individuals’ information to file false tax returns and open bank accounts so that fraudulent tax refunds could be deposited and withdrawn from those accounts.
Among other things, defendant Harrigan opened up a business account so that the fraudulent tax refund checks could be deposited into that account. Defendant Harrigan made deposits of fraudulent tax refund checks, forged signatures on checks, and made withdrawals from that business account. This account had approximately $206,751, deposited in fraudulent tax refunds. Harrigan participated in the false claims conspiracy from February 9, 2011, when he opened the account, through January 24, 2012, when search warrants were executed at his home and defendant Jones’ home. During this time period, the conspiracy included 282 fraudulent tax returns (for the 2010 and 2011 tax years), which collectively claimed refunds of $1,233,974.
The defendant faces a maximum possible sentence of 10 years’ imprisonment, 3 years supervised release, $250,000 fine, $100 special assessment
The case was investigated by Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jessica Natali.
Peter Anthony C. Santos Sentenced to Prison in Ice Trafficking CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant PETER ANTHONY CONCEPCION SANTOS, age 44, was sentenced in District Court to a 63-month term of imprisonment, to be followed by three years of supervised release, and 100 hours of community service. The Court also ordered SANTOS to pay a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
November 18, 2015, SANTOS was charged by Superseding Indictment with Conspiracy to Distribute Methamphetamine Hydrochloride and Attempted Possession with Intent to Distribute Methamphetamine Hydrochloride. On February 23, 2016, SANTOS entered a guilty plea to an Information charging him with Attempted Possession with Intent to Distribute Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(C) and 18 U.S.C. § 2. The United States also sought forfeiture of related assets under federal law. The investigation revealed that SANTOS, and others, agreed to use the mail system to distribute large quantities of methamphetamine on Guam. Law enforcement seized approximately 4.5 kilo grams of methamphetamine, with a 99 percent purity level. Officers also discovered $2,772 during a search incident to the arrest of SANTOS. SANTOS testified at trial against his co-defendant Justin Cruz. Cruz was sentenced on March 22, 2017, to 35 years imprisonment for Conspiracy to Distribute methamphetamine.
The investigation was pursued by the Organized Crime Drug Enforcement Task Force (OCDETF), a specialized multi-agency, multi-jurisdictional law enforcement team effort. OCDETF investigates and prosecutes the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
This OCDETF investigation involved federal agents and local law enforcement officers of the U.S. Postal Inspection Service (USPIS), Drug Enforcement Administration (DEA), U.S. Department of Homeland Security Investigations (HSI), Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA), Superior Court of Guam Probation Office, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. National Oceanic Atmosphere Administration (NOAA), and U.S. Coast Guard Criminal Investigative Service (CGIS). The case was prosecuted by Clyde Lemons, Jr., an Assistant United States Attorney for the District of Guam.
Partners Healthcare and Brigham and Women’s Hospital Agree to Pay $10 Million to Resolve Research Fraud AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that Partners HealthCare System and one of its hospitals, Brigham and Women’s Hospital (collectively, BWH), have agreed to pay $10 million to resolve allegations that a BWH stem cell research laboratory run by Dr. Piero Anversa fraudulently obtained grant funding from the National Institutes of Health (NIH). BWH disclosed these allegations to the government.
The settlement resolves allegations that Dr. Anversa, along with Dr. Annarosa Leri and Dr. Jan Kajstura, knew or should have known that their laboratory promulgated and relied upon manipulated and falsified information, including confocal microscope images and carbon-14 age data for cells, in applications submitted for NIH research grant awards concerning the purported ability of stem cells to repair damage to the heart. The government alleges that problems with the work of the laboratory included improper protocols, invalid and inaccurately characterized cardiac stem cells, reckless or deliberately misleading record-keeping, and discrepancies and/or fabrication of data and images included in applications and publications. The government contends that, at the direction of these BWH scientists, the Anversa laboratory included false scientific information in claims to NIH in order to obtain and use funds from NIH grants. Drs. Anversa, Leri, and Kajstura are no longer affiliated with BWH.
“Individuals and institutions that receive research funding from NIH have an obligation to conduct their research honestly and not to alter results to conform with unproven hypotheses,” said Acting U.S. Attorney William D. Weinreb. “Medical research fraud not only wastes scarce government resources but also undermines the scientific process and the search for better treatments for serious diseases. We commend Brigham and Women’s for self-disclosing the allegations of fraudulent research at the Anversa laboratory, and for taking steps to prevent future recurrences of such conduct.”
“Resolution of this self-disclosure underscores the Inspector General’s commitment to promoting data integrity and scientific principles in HHS-sponsored grants and in addressing fraud affecting any HHS program,” said Gregory E. Demske, HHS OIG Chief Counsel to the Inspector General. “We commend the institution’s efforts to self-examine and disclose in this case.”
“Today, Partners Healthcare and Brigham and Women’s Hospital resolved allegations of fraud perpetuated by several scientists who worked for them,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This settlement demonstrates the FBI’s commitment to ensuring that taxpayer dollars are not wasted, and that organizations that receive these funds are truthful in their dealings with federal agencies like the NIH and in the research findings they present to the scientific community, and the public, as a whole.”
After learning of the allegations of research misconduct in the Anversa laboratory, BWH investigated the allegations, disclosed its concerns to the U.S. Department of Health and Human Services, Office of the Inspector General (OIG) and Office of Research Integrity, and then worked cooperatively with OIG and the Department of Justice to explain the bases for the allegations.
Acting U.S. Attorney Weinreb, HHS OIG Chief Counsel Demske and FBI SAC Shaw, made the announcement today. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Vassili Thomadakis of Weinreb’s Office and OIG Attorney Kristen Schwendinger.
Owners of Floral Call Center Charged with Tax FraudRead the Press Release
Andrew Bassaner, age 44 and Vicki Bunchuk, age 44, of Southampton, Pennsylvania were arrested today, when a 27-count indictment was unsealed, which charged the couple with various criminal tax fraud violations including conspiracy to defraud the United States, filing false individual, corporate and employment tax returns and with aiding and assisting in the preparation of false tax returns announced Acting United States Attorney Louis D. Lappen.
According to the indictment, Bassaner and Bunchuk were the managers and owners of Florist Concierge Corporation located in Orlando, Florida. The corporation was initially formed in Pennsylvania, but subsequently incorporated in the State of Florida where it operated a telephone call center and internet service that accepted floral arrangement orders from customers throughout the United States. The indictment further alleges that Bassaner and Bunchuk entered into a contract with Floral Source International, located in Oregon, who managed a national registry of florists, who would fill the initial order for floral arrangement that Bassaner and Bunchuk’s company had contracted to provide.
The indictment alleged further that Bassaner and Bunchuk diverted funds from Florist Concierge which they used to pay personal living expenses and then failed to report the diverted funds as income on their personal income tax returns. The diverted funds were then misclassified as legitimate business expenses on the corporation’s tax returns which resulted in the corporation filing false returns as well. In addition, the indictment charges that Bassaner failed to collect and pay over employment taxes, Federal Insurance Contribution Act Taxes and Federal Unemployment Tax on behalf of employees who worked for Florist Concierge.
If convicted of the crimes charged in the indictment, the Bassaner and Bunchuk face a substantial period of incarceration in addition to a fine. This case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Jet Boat Companies Pleads GuiltyRead the Press Release
BOISE - Christopher Bohnenkamp, 42, formerly of Kuna, Idaho, pleaded guilty today, pursuant to a plea agreement, to one count of wire fraud and one count of bank fraud, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced.
According to the plea agreement, from 2009 through 2015, Mr. Bohnenkamp was the owner of Treasure Valley Marine, Inc. and Bohnenkamp’s Whitewater Customs, Inc. located in Meridian, Idaho (and later Boise, Idaho). TVM/BWC sold and built custom-made jet boats and trailers and generally required customers to pay upfront.
As it related to the wire fraud count, the plea agreement provided that, in or about 2014, the defendant devised and intended to devise a scheme to obtain money and property from customers and material vendors of TVM/BWC by means of materially false and fraudulent pretenses, representations and promises, and to misappropriate without authority money and property belonging to customers and material vendors of his companies. Knowing that TVM/BWC was financially insolvent, from May of 2014 through December of 2014, the defendant continued to accept orders and upfront payments from 13 new customers and parts on credit from material vendors. At the time, he knew that the upfront payments from new customers would be used to pay old debts and complete the boats of existing customers, not to construct the boats of the new customers or pay for new parts. In doing so, the defendant acted with the intent to deceive the new customers and material vendors. The 13 new customers did not receive the completed boats and trailers for which they paid. On or about December 2, 2014, for the purpose of executing the scheme, the defendant caused a $125,728 check drawn on KeyBank on behalf of customer D.H. to be deposited in Washington Trust Bank, causing an interstate wire transfer of funds.
According to the plea agreement, the defendant’s wire fraud scheme: (i) resulted in an actual loss of between $1,500,000 and $3,500,000; (ii) involved 10 or more victims; (iii) affected financial institutions, to wit: Washington Trust Bank, KeyBank, Idaho Central Credit Union, Mountain West Bank of Montana, and Les Bois Credit Union that loaned money to customers to purchase jet boats and trailers that were never built and delivered; and (iv) resulted in the defendant deriving more than $1,000,000 in gross receipts from the above financial institutions.
As it related to the bank fraud count, the plea agreement provided that, on or about January 6, 2012, in the District of Idaho, the defendant knowingly executed and attempted to execute a scheme to obtain moneys, funds, credits, asset, securities, and other property owned by, and under the custody or control of KeyBank. Specifically, the defendant caused to be submitted to KeyBank a false bill of sale for customer D.B, with the intent to defraud KeyBank. The bill of sale inflated the purchase price of the boat ordered by D.B., misrepresented that D.B. had made a $20,000 cash deposit, when he had not, and omitted that $59,283 of the loan proceeds would be kicked-back to D.B. As a result, KeyBank disbursed loan proceeds of $272,982 to TVM/BWC, of which TVM/BWC kicked-back $59,283 to D.B.
Separately for each count, Mr. Bohnenkamp faces a statutory maximum sentence of 30 years in prison, a $1,000,000 fine, and not more than 5 years of supervised release.
for Mr. Bohnenkamp is set for August 8, 2017 at 9:00 a.m., before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.