Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 26 April 2017
DEA Prepares for Prescription Drug Takeback DayRead the Press Release
Acting United States Attorney Sean R. Berry wants to encourage the public to participate in the Drug Enforcement Administration’s National Prescription Drug Takeback Day on Saturday, April 29, 2017, from 10:00 a.m. to 2:00 p.m.
Acting United States Attorney Berry stated, “The DEA’s National Takeback Initiative has been very successful and offers an anonymous and free opportunity to get rid of unwanted pills.” Berry went on to add, “The threat of prescription drug abuse leading to more serious drug addictions is real. The Takeback Day is a day our community should come together to fight the opioid and heroin epidemic crossing our nation and impacting our citizens.”
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 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 release 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 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, such as flushing them down the toilet or throwing them in the trash, post potential safety and health hazards.
Collection sites will be set up throughout communities nationwide. Through the cooperative efforts of federal, state, and local authorities, there is a takeback collection site located in 50 of the 52 counties comprising the Northern District of Iowa. To locate a collection site near you, go the DEA Office of Diversion Control website 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.
Follow us on Twitter @USAO_NDIA.
Columbia Man Pleads Guilty to Theft of Food Stamp MoneyRead the Press Release
Contact Person: Winston David Holliday, Jr. (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Christopher O’Berry, age 42, of Columbia, pled guilty in federal court in Columbia to Theft of Government Money, a violation of Title 18, United States Code, § 641. Senior United States District Judge Joseph F. Anderson, Jr., of Columbia, accepted the guilty plea and will sentence him at a later date.
Evidence presented at the change of plea hearing established that the Food and Nutrition Service (FNS) is the agency within the U.S. Department of Agriculture responsible for the administration and regulation of the SNAP. SNAP, commonly known as the food stamp program, assists low-income families and individuals to purchase food.
Christopher O’Berry operated Cynthia’s Soul Food Deli (formerly Food World) in the Columbia area. The Deli served food, but was also registered to receive SNAP benefits as payment for food items. This arrangement posed two issues. First, SNAP does not pay for prepared food. Second, the Deli did not stock sufficient food to justify the purchases recorded under SNAP. O’Berry allowed beneficiaries to make small purchases through SNAP but processed them as much larger amounts. He would then pay some cash to the beneficiary and keep some for himself.
The investigation traced proceeds of the theft to a Woodforest National Bank account controlled by O’Berry. O’Berry deposited $956,006.90 between May 2011 and December 2014. He then withdrew $158,187 in cash and transferred $714,032 to his own accounts. The rest was used to make minimal purchases for the store.
Ms. Drake stated the maximum penalty faced by O’Berry is imprisonment for ten years and a fine of $250,000.
The Richland County Sherriff’s Office and the United States Department of Agriculture, Office of the Inspector General, investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
#####
Co-Owner of Nick’s Roast Beef Sentenced for Skimming Nearly $6 Million in CashRead the Press Release
BOSTON - The co-owner of Nick’s Famous Roast Beef in Beverly was sentenced today in federal court in Boston in connection with skimming nearly $6 million in cash receipts from the business over a six-year period and not reporting that cash income on his business or personal tax returns. His wife and son were also sentenced today for their role in the scheme.
Nicholas Koudanis, 67, of Topsfield, was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison, two years of supervised release and ordered to pay restitution in the amount of $2,042,366 to the IRS. In January 2017, Koudanis pleaded guilty to one count of conspiracy to defraud the United States by obstructing the IRS and 10 counts of aiding and assisting in the filing of false tax returns. His wife, Eleni Koudanis, 61, was sentenced by Judge Saris to one year of probation and ordered to pay the same amount of restitution. She previously pleaded guilty to five counts of aiding and assisting in the filing of false tax returns. The restitution amount consists of the approximately $992,821 in taxes the Koudanises avoided paying, plus interest and penalties. Their son, Steven Koudanis, 40, was sentenced to one year of probation to be served in home confinement and ordered to pay restitution in the amount of $151,240 to the IRS. He pleaded guilty to one count of endeavoring to obstruct and impede the due administration of the Internal Revenue Laws.
From 2008 to 2013, the co-owners of Nick’s Roast Beef, Nicholas Koudanis and Nicholas Markos, skimmed more than $1 million in cash receipts each year, which they failed to report on either the corporate tax returns or their personal tax returns, thereby avoiding the payment of nearly $1 million each in personal income taxes during that same period. Each week, Koudanis and Markos personally divided the cash receipts, determining how much to deposit to the business’s bank account and report on their tax returns, how much to use to pay suppliers and employees, and how much to keep for themselves. Eleni Koudanis had primary responsibility for the bookkeeping functions of the restaurant and provided some of the false income information to the tax preparer. Their son, Steven Koudanis, created false cash register receipts that were used in connection with an IRS tax audit of the business. The actual cash register receipts were not provided to the tax preparer who prepared the business and personal tax returns. By December 2014, Nicholas and Eleni Koudanis amassed more than $1.6 million in cash, which they kept in a safe in their home.
In January 2017, Nicholas Markos pleaded guilty to the same charges as Nicholas Koudanis and is scheduled to be sentenced on May 9, 2017.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.
Co-Conspirator Sentenced to 27 Months for Wire FraudRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Sharon Johnson, age 50, of Columbia, was sentenced today in federal court in Greenville, for conspiracy to commit wire fraud, a violation of Title 18, United States Code, Section 1349. United States District Judge Bruce H. Hendricks, of Greenville, sentenced Johnson to 27 months imprisonment, ordered that she pay $385,425.75 in restitution, and placed her on three years of supervised release. Johnson, previously on bond, was taken into custody at the conclusion of the hearing.
Evidence presented at the change of plea hearing established that Patricia Sullivan, who has pled guilty and is awaiting final sentencing, and Sharon Johnson were co-conspirators in a scheme and artifice to defraud various individuals. Sullivan is the former postmaster for Greenville, South Carolina. She also operated a company called HYPD Publishing (“HYPD”). In March 2009, HYPD published The Struggle of Love written by Sharon Denise Johnson.
Shortly after publication of Johnson’s book, Sullivan and Johnson began to spin a story that the producer Tyler Perry had bought the rights to The Struggle of Love and would be making a movie or reality TV show staring Johnson. Victims were told that Sullivan and Johnson were on the verge of great wealth, but needed bridge loans or some other form of financial assistance until the project with Perry reached fruition. Sullivan and Johnson promised the investors large returns in exchange for the loans and/or investments.
To make themselves look the part of successful individuals, Sullivan and Johnson squatted in several mansions, took photos, and posted them to Facebook. They also created fictitious documents from an accounting firm that “documented” the sale of the book and a huge payout to come as well as a bogus Wells Fargo statement that showed millions of dollars as pending.
Of course, there was no book deal with Tyler Perry and the victims lost the money loaned and/or invested.
The case was investigated by agents of United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
#####
Citizen of Colombia Sentenced to 16 Months in Prison for Illegally Reentering the United StatesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS ALBERTO DEOSA-MUNERA, 57, a citizen of Colombia, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 16 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, DEOSA-MUNERA has been previously deported from the U.S. on four occasions. DEOSA-MUNERA, who had been residing in Waterbury, was convicted of sexual assault in the third degree and incarcerated in state custody. Federal immigration officers visited DEOSA-MUNERA at a Connecticut Department of Correction facility, advised him of his Miranda rights and questioned him. He admitted that he was born in Colombia, remains a citizen of that country and had been previously deported on multiple occasions.
DEOSA-MUNERA completed his state sentence and has been in federal custody since June 10, 2016. On October 5, 2016, he waived his right to be indicted and pleaded guilty to one count of illegal reentry.
He will be removed to Colombia at the conclusion of his federal prison term.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Detention and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
Canadian Man Admits Role in Cocaine Distribution SchemeRead the Press Release
CAMDEN, N.J. – A Canadian man today admitted his role in a conspiracy to traffic 100 kilograms of cocaine from Chicago to New Jersey and then on to Canada, Acting U.S. Attorney William E. Fitzpatrick announced.
Sezayir Bulamun, 48, of Hemmingford, Canada, pleaded guilty before U.S. District Court Judge Robert Kugler in Camden federal court to an indictment charging him with one count of conspiring to distribute more than five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
Between October 2012 and Nov. 29, 2012, Bulamun conspired with others to pick up 100 kilograms of cocaine in Chicago, Illinois, transport it to a warehouse in New Jersey and then transport it to Canada. He was indicted in 2012, but fought extradition to the United States. The FBI seized the cocaine as part of the operation.
The conspiracy count to which Bulamun pleaded guilty carries a mandatory minimum penalty of 10 years in prison and a maximum of life in prison. Sentencing is scheduled for Aug. 4, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Sara F. Merin of the OCDETF/Narcotics Unit and Andrew J. Bruck of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.
California Man Sentenced to 188 Months in Prison for Large-Scale Methampetamine, Cocaine and Heroin Trafficking in Monroe CountyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a California man was sentenced on April 25, 2017, by U.S. District Court Judge Malachy E. Mannion to serve 188 months (15 years and 8 months) in prison for large-scale methamphetamine, cocaine and heroin trafficking in Monroe County.
According to United States Attorney Bruce D. Brandler, Fontaine Horton, age 37, formerly of San Bernardino, California, was convicted of conspiracy to distribute in excess of nine kilograms of methamphetamine, as well as additional amounts of cocaine and heroin, after a four-day jury trial before Judge Mannon in May 2016. Horton was also convicted of two counts of distributing methamphetamine. Another individual, Reginald Braddy, age 33, formerly of San Bernardino, California, was also convicted of conspiracy to distribute methamphetamine, cocaine and heroin.
Horton and Braddy were charged with obtaining high-quality methamphetamine from sources in California, along with heroin and cocaine, which they then distributed for profit in the Monroe County area between 2012 and 2014. Previously, Judge Mannion sentenced Reginald Braddy to serve 235 months (19 years and 7 months) for his role in this drug-trafficking conspiracy.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, and the Pocono Mountain Regional Police Department. Officers from the Orange County, California Sheriff’s Office, the Scranton Police Department, and Plainfield Township, Pennsylvania, Police Department assisted in the investigation. The case was prosecuted by Assistant United States Attorneys Robert J. O’Hara and Francis P. Sempa.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
# # #
Buffalo Woman Pleads Guilty to Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Kristie Boncore, 24, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and distribution of heroin before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between April 2014 and September 28, 2015, the defendant conspired with Hector Carattini and others to distribute heroin on the West Side of Buffalo. The investigation utilized court ordered wiretaps as well as undercover purchases conducted by the New York State Police Community Narcotics Enforcement Team (CNET) and the Buffalo Police Department.
The 10 defendants charged in this case were street-level distributors or “runners” in a heroin trafficking ring operated by Daniel Molina-Rios who was arrested in June 2015 along with Orlando Rios, Luis Montanez and Jose Andujar. The organization acquired heroin from the New York City area for distribution in Buffalo but also had an alternate heroin source locally.
A total of 14 defendants have been indicted in this case. Boncore is the first to be convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 7, 2017, at 12:30 p.m. before Judge Arcara.
Buffalo Man Sentenced for Stealing StampsRead 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 Irvin Bates, 64, of Buffalo, NY, who was convicted of theft of government funds, was sentenced to two years probation and ordered to pay $3760.00 in restitution by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Maura K. O’Donnell, who handled the case, stated that the defendant worked as a temporary employee at Ashton Potter printing company located in Williamsville, NY. The company is contracted by the U.S. Postal Service (USPS) to print and manufacture postage stamps and related specialty products. On July 22, 2016, during his "lunch break," Bates stole a pad of stamps from Ashton Potter, concealed the pad of stamps in his clothes, and removed it from the facility at the conclusion of his shift. In total, the stamps stolen by the defendant were valued at $3760.00.
The sentencing is the result of an investigation by the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Buffalo Man Sentenced for Being A Felon in Possession of A GunRead 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 Casidus Carr, 31, of Buffalo, NY, who was convicted of being a felon-in-possession of a gun, was sentenced to 30 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that during the January 16, 2015, execution of a search warrant at Carr’s residence on Dunlop Avenue in Buffalo, law enforcement officers discovered a loaded firearm and ammunition. The defendant was prohibited from legally possessing such firearm by virtue of his conviction, in 2005, for Manslaughter in the First Degree, in New York State Court.
The sentencing is the result of an investigation on the part of law enforcement officers of the Federal Bureau of Investigation Safe Street Task Force, under the direction of Special Agent in Charge Adam S. Cohen, and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
Bridgeport Man Charged with Distributing Heroin to Monroe Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CAREEM BENTLEY, also known as “C-Lows,” 33, of Bridgeport, was arrested today on a federal criminal complaint charging him with heroin distribution offenses. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
BENTLEY appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
As alleged in court documents, on November 23, 2016, Monroe Police and emergency medical personnel responded to a residence in Monroe on a report of a suspected drug overdose. At the scene, responders encountered an unresponsive 37-year-old male lying on the floor. The male was pronounced deceased. Investigators seized the victim’s cellphone, multiple folds of suspected heroin, and other items, and subsequently concluded that the victim purchased heroin from BENTLEY in the late evening of November 22, 2016.
The complaint charges BENTLEY with possession with intent to distribute, and distribution of, heroin, and conspiracy to distribute narcotics. Both offenses carry a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and Monroe Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Brian Deshon Miller Sentenced Following Guilty Plea to a Federal Drug Conspiracy ChargeRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces today that Brian Deshon Miller was sentenced to 120 months imprisonment. Miller’s sentencing followed entry of a January 2017 guilty plea to conspiracy to possess with intent to distribute cocaine.
Miller’s guilty plea included his admission that between November 2015 and July 2016, he regularly arranged the purchase, distribution and payment for cocaine which he received and sold. The conspiracy involved the distribution of various quantities of cocaine, ranging between gram and ounce quantities. Miller was held responsible for the distribution of a quantity of cocaine between 400 and 500 grams.
Based upon his criminal history Career Offender status was found applicable to Miller under the United States Sentencing Guidelines, which increased the applicable advisory sentencing guideline range. Conspiracy to possess with intent to distribute a controlled substance is a violation of Title 21, United States Code Section 846. Miller’s imprisonment will be followed by a three-year term of supervised release.
This case arose from a long-term investigation in the Daphne/Fairhope area conducted by the Federal Bureau of Investigation’s Safe Streets Task Force and the Baldwin County Sheriff’s Office Drug Task Force. This investigation has previously resulted in the indictment of six (6) other defendants on federal drug conspiracy charges. Acting U.S. Attorney Steve Butler stated, “We appreciate the diligent investigative work done by our federal, state and local law enforcement partners. We share a common purpose of striving to make our communities safer for all citizens.” FBI Special Agent in Charge, Robert Lasky stated, "These types of investigations are a perfect example of what can happen when federal, state, and local agencies come together to rid our communities of this type of behavior." The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Bank Robber Admits Hatchet JobRead the Press Release
COEUR D’ALENE - Charles Ray Bartkowiak, 34, of Hayden, Idaho, pleaded guilty on April 25, 2017, to Bank Robbery, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced. Bartkowiak was indicted by a federal grand Jury in Coeur d’Alene on December 13, 2016.
According to the plea agreement, Bartkowkiak admitted that on November 28, 2016, he entered the Bank CdA in Hayden, Idaho and placed a hatchet on the counter of the teller window. He demanded all the teller’s cash and left with $6,366 in U.S. currency. Bartkowiak was identified from video surveillance and law enforcement found some of the money and the hatchet in his car. He admitted to the crime and was arrested.
The charge of Bank Robbery is punishable by up to 20 years in prison, a maximum fine of $250,000.00, and up to 3 years of supervised release.
Sentencing is set for July 26, 2017, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by North Idaho Violent Crimes Task Force (NIVCTF). The NIVCTF is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Idaho State Police, Post Falls Police Department, Coeur d’Alene Police Department, Kootenai County Sheriff’s Office and the Idaho Department of Corrections.
Attorney General Sessions Announces Continuing Litigation in Sanctuary City CaseRead the Press Release
Tonight Attorney General Jeff Sessions issued the following statement:
“The American people demand a lawful system of immigration. Congress has established a lawful system of immigration. At the heart of this immigration debate is disagreement over whether illegally entering this country is a crime. Our duly enacted laws answer that question.
“Nevertheless, actions that have always been understood to be squarely within the powers of the President, regardless of the Administration, have now been enjoined. The Department of Justice cannot accept such a result, and as the President has made clear, we will continue to litigate this case to vindicate the rule of law.
“Make no mistake – our national interest also requires criminal aliens to be deported. The Bureau of Justice Statistics just released a report showing that 42 percent of defendants charged in U.S. district court were non-U.S. citizens. And according to the U.S. Sentencing Commission, in 2013, 48 percent of all deported aliens who were convicted for coming back to the United States illegally were also convicted of a non-immigration related crime.
“This is the Trump era. Progress is being made daily, and it will continue. This will be the Administration that fully enforces our nation’s immigration laws.”
Army Staff Sergeant Pleads Guilty to Using Stolen UMPC Employee IDs to File Four False Income Tax ReturnsRead the Press Release
PITTSBURGH - A resident of Spanaway, Washington, pleaded guilty in federal court to charges of False Claims against the United States, Acting United States Attorney Soo C. Song announced today.
Justin A. Tollefson, age 26, of Spanaway, Washington, and an enlisted Staff Sergeant in the Army at Joint Base Lewis-McChord in Tacoma, Washington, pleaded guilty to four counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, Tollefson used stolen identities of employees at UPMC to file four 2014 false federal income tax returns in which he made claims for tax refunds, which collectively totaled approximately $56,333.
Judge Hornak scheduled sentencing for August, 30, 2017 at 9:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations and the United States Secret Service conducted the investigation that led to the prosecution of Justin A. Tollefson.
Army Reserves Lt. Col. Convicted for Fraudulently Supplying Chinese-made Army Promotional Gear as Made in USARead the Press Release
BIRMINGHAM – A federal jury on Tuesday convicted a lieutenant colonel in the U.S. Army Reserves for fraudulently supplying hundreds of thousands of Chinese-produced baseball caps and backpacks to the Army Recruiting Command, despite receiving millions of dollars under contracts stating the items “MUST BE 100 % U.S. MADE.”
Acting U.S. Attorney Robert O. Posey, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, and U.S. Army Criminal Investigation Command Special Agent in Charge James T. Wallis announced the verdict.
Following a seven-day trial before U.S. District Court Judge Sharon Lovelace Blackburn, the jury found FREDERICK LAMAR BURNETT, 48, of Madison, guilty on three counts of wire fraud. The jury deliberated for less than two hours before convicting Burnett, who took the stand in his own defense.
The jury determined that Burnett used his Huntsville-based company, Lamar International Inc., in a scheme to defraud the Defense Department on three contracts, worth $6.2 million, between 2005 and 2009. All the contracts, two for baseball caps and one for backpacks, were for promotional items to be given to Army recruits. Burnett certified for all three contracts that he would meet the requirements of the Buy American Act, the Berry Amendment and federal regulations that require the government to buy domestic products and materials, according to the indictment.
The Buy American Act requires the federal government to buy domestic articles, materials and supplies, primarily to protect American labor. The Berry Amendment prohibits the Defense Department from buying clothing, fabrics, fibers and yarns that are not grown, reprocessed, reused or produced in the United States. The purpose of the Berry Amendment is to protect the viability of the textile and clothing production base in the United States. These statutes are incorporated and made applicable to government contractors through the federal acquisition regulations.
Under the first contract awarded to Lamar International in 2005, Burnett supplied 209,706 baseball caps over three years and the government paid him $1.4 million. Under the second contract, awarded in 2007, Lamar supplied 590,042 ball caps and the government paid him about $4 million. Under the third contract, also awarded in 2007, Lamar supplied 146,375 Army Combat Uniform backpacks and the government paid $1.1 million. A Defense Department accounting agency made the payments to Burnett by electronic funds transfer to his Huntsville bank.
Along with the required compliance to the BBA and the Berry Amendment, according to evidence at trial, both of the 2007 contracts included a statement, in all capital letters, that the “PRODUCT MUST BE 100% U.S. MADE.”
Instead of providing American-made products, however, Burnett negotiated and contracted with suppliers directly from China and with American companies who he knew were procuring the products from China. He used Chinese-made products to fill orders under all three contracts and hid their foreign manufacture by hiring workers on a cash basis to remove all the Chinese labels and repackage the items he sent to the Army Recruiting Command.
After award of the third contract, a competitor protested the bid, claiming Burnett could only bid so low if he were using foreign suppliers. The government allowed Burnett to proceed with the contract after he promised that he would use only American-made products and that he would comply with all aspects of the Buy American Act and the Berry Amendment.
The total amount of the three contracts was $6.2 million. The indictment seeks to have Burnett forfeit that amount to the government as proceeds of illegal activity.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
DCIS and Army CID investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
###
Armed Career Offender from Albuquerque Sentenced to Fifteen Years for Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Joe Ray Alires, 42, of Albuquerque, N.M., was sentenced yesterday in federal court to180 months in prison followed by five years of supervised release for unlawfully possessing firearms and ammunition, announced Acting U.S. Attorney James D. Tierney and Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Alires was charged by an indictment filed on Nov. 19, 2014, with being a felon in possession of firearms and ammunition on June 26, 2014, in Bernalillo County, N.M. Alires was prohibited from possessing firearms or ammunition because of his status as a convicted felon. According to the indictment, on June 26, 2014, Alires had at least ten felony convictions, convictions for residential and commercial burglary, possession of a controlled substance, being a felon in possession of a firearm, and possession of a deadly weapon or explosive by a prisoner.
On March 9, 2017, Alires pled guilty to the indictment under a plea agreement with the U.S. Attorney’s Office, and admitted to possessing a loaded pistol on June 26, 2014, despite his status as a convicted felon.
This case was investigated by the ATF office in Albuquerque and was prosecuted by Assistant U.S. Attorney David M. Walsh as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat and violent offenders, primarily based on their prior convictions, from counties with the highest violent crime rates including Bernalillo County under this initiative.
Arizona Woman Pleads Guilty to Federal Larceny Charge in New MexicoRead the Press Release
ALBUQUERQUE – Sabrina Morgan, 39, of Jeddito, Ariz., pled guilty today in federal court in Albuquerque, N.M., to a larceny charge arising out of her theft of cash belonging to a commercial business located in Naschitti, N.M.
Morgan was charged in an indictment filed on March 14, 2017, with stealing more than $1,000 from the Red Mesa Trading Company, which is located on the Navajo Indian Reservation in San Juan County, N.M. At the time of the offense, Morgan was employed as the district supervisor of the Trading Company.
During today’s proceedings, Morgan entered a guilty plea to the indictment without the benefit of a plea agreement. At sentencing, Morgan faces a maximum penalty of five years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and is being prosecuted by Assistant U.S. Attorney Michael D. Murphy.
Akron man sentenced to 20 years in prison for selling fentanyl obtained from China that resulted in fatal overdoseRead the Press Release
An Akron man was sentenced to 20 years in prison for selling fentanyl obtained from China that resulted in a fatal overdose, law enforcement officials said.
Leroy Shuarod Steele, 36, pled guilty earlier this year to conspiracy to possess with intent to distribute fentanyl and distribution of fentanyl.
The fentanyl Steele distributed resulted in the fatal overdose of a person identified only as T.R. on March 21, 2016 in Akron, according to court documents.
Steele obtained fentanyl from suppliers in China and then distributed the drug to people in Akron, Fairlawn and elsewhere, according to court documents.
“Mr. Steele’s actions resulted in the death of another person,” Acting U.S. Attorney David A. Sierleja said. “Those who profit from selling the heroin and opioids that have devastated our state will be held accountable for their actions.”
Akron Police Chief James Nice said: “Keeping this guy behind bars for two decades keeps the residents of Summit County safer.”
This case is being prosecuted by Assistant U.S. Attorney Linda H. Barr following an investigation by the Drug Enforcement Agency, the Akron Police Department and the Fairlawn Police Department.
"Operation Real Time": Spartanburg Man Enters Guilty Plea in Federal Court on Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Xavier Lee Gist, age 22, of Spartanburg, pled guilty in federal court in Greenville, to possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c) and possession with intent to distribute crack cocaine, a violation of Title 21, United States Code, Section 841(a)(1). United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on May 19, 2016, officers with the Spartanburg Police Department observed a silver Nissan Maxima with North Carolina tags fail to signal a left hand turn. Officers initiated a traffic stop but the vehicle failed to stop. Officers were able to identify the driver as Xavier Gist by sight during the pursuit based on prior interactions with Gist. Gist jumped from the vehicle and was apprehended after a brief foot chase. Officers, with the vehicle, observed in plain sight a Smith and Wesson 9mm handgun on the passenger seat. Prior to the vehicle being towed, officers recovered a silver whisk and a set of digital scales from the center console. Approximately 4.4 grams of cocaine base (crack) was located on the street where Gist jumped from the vehicle.Gist faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Spartanburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Special Assistant United States Attorney Jennifer Wells, a 7th Circuit Assistant Solicitor designated by Solicitor Barry Barnette to identify and expedite state cases for federal prosecution, handled the case.
Gist was arrested federally as a part of “Operation Real Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the Spartanburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Real Time’s core partners include the Greenville Police Department, the Greenville County Sheriff’s Office, the Anderson City Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 7th Circuit Solicitor’s Office, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 97 defendants and seizure of approximately 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the local, state, and federal agencies that led to the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
#####
Tuesday 25 April 2017
Zwolle man sentenced to 19 years in prison on methamphetamine, firearms chargesRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Zwolle man was sentenced Monday to 228 months in prison for possessing with intent to distribute methamphetamine and possessing multiple firearms.
Heath Meshell, 34, of Zwolle, La., was sentenced by U.S. District Judge Elizabeth E. Foote to 168 months in prison on one count of possession with intent to distribute methamphetamine and 60 months in prison on one count of possession of a firearm in furtherance of a drug trafficking crime. He was also sentenced to five years of supervised release. According to the December 19, 2016 guilty plea, law enforcement agents searched Meshell’s home on April 12, 2016. The agents found more than 1,700 grams of methamphetamine, a small number of prescription pills, digital scales and $1,585. They also found a 9 mm rifle, 9 mm pistol, a 410 shotgun and assorted rounds of ammunition.
The ATF and the DEA conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Woman Sentenced to Fifty One Months Confinement for Interstate Methamphetamine and Cocaine TraffickingRead the Press Release
MOBILE, AL— The Acting United States Attorney, Steve Butler, announces that Graciela Mora-Demoran was sentenced in United States District Court, Senior Judge Callie V. Granade, on April 24, 2017 to fifty-one months confinement for trafficking in methamphetamine and cocaine. The sentence was structured to give the defendant credit for twenty one months already spent in state custody.
On August 20, 2015, an Alabama State Trooper stopped Mora-Demoran on I-10 in Baldwin County, Alabama. Later during the stop, K-9 “Justice” gave a positive alert to the odor of narcotics on the defendant’s vehicle and a search of the vehicle was conducted. In the cargo area of the vehicle, there were various types of Mexican food products and soft drinks. A State Trooper opened a bag containing several bottles of purported soft drink and picked up a bottle and noticed white debris floating around inside the bottle. The State Trooper noticed that the bottle picked up was not tight with pressure as when factory sealed, was filled up to the very top, and did not show any carbonation when shaken.
Aware of current trafficking trends of methamphetamines in liquid form, the bottle of soda was tested at the roadside for the presence of narcotics with a narcotics test kit. The liquid from the bottles of soda tested positive for the presence of narcotics (methamphetamines). Laboratory testing revealed that the lemonade soda containers contained 126.4 g of methamphetamine (mixture and substance) at a purity level of
56.6 % resulting in 71.5 grams of pure methamphetamine. Ginger ale bottles contained 130.3 g of methamphetamine (mixture and substance) at a purity level of 57.9 % resulting in 75.4 grams of pure methamphetamine.Officers also discovered numerous cone shaped containers in the vehicle that contained suspected narcotics. Further testing of the cone shaped containers revealed that they contained 7.9 kilograms of cocaine.
The case was jointly investigated by the Drug Enforcement Administration and the Alabama Law Enforcement Agency. Assistant United States Attorney George May prosecuted the case.
Acting United States Attorney Steve Butler stated he “appreciates and praises the efforts of the alert State Troopers who were dedicated in keeping up with the drug trafficking trends and able to foil a very clandestine manner of transporting narcotics”.
Woman Sentenced to Eighty Months Confinement for Multi-State Methamphetamine (Ice) Distribution ConspiracyRead the Press Release
MOBILE, AL— The Acting United States Attorney, Steve Butler, announces that Jennifer Arlene Rosas-Saucedo was sentenced in United States District Court, Senior Judge Callie V. Granade, on April 24, 2017 to eighty months confinement for being involved in a multi-state methamphetamine distribution conspiracy. On November 23, 2015, a United States Postal Inspector intercepted a postal parcel shipped from a United States Post Office located in El Segundo, California destined for Fairhope, Alabama. Mobile Police Department dedicated K-9 “ARON” alerted to the odor of narcotics emanating from the parcel. A search warrant of the package revealed 16.93 kilograms of methamphetamine with a purity of 92.8%.
The Postal Inspector contacted the Drug Enforcement Administration (DEA) to pursue an investigation. The DEA investigation revealed that Rosas-Saucedo travelled from her home in Vancouver, Washington to Southern California to provide the 16.93 kilograms of methamphetamine to other members of the conspiracy. The other members of the conspiracy arranged to ship the package from Southern California to Fairhope, Alabama.
Further investigation revealed that another member of the conspiracy met Rosas-Saucedo in Los Angeles, California in March 2016 and received 7.8 pounds of methamphetamine from her. The courier then transported the methamphetamine on an Amtrak train to New Orleans, Louisiana, where the DEA and local officials intercepted him.
In September 2016, the DEA used a cooperating defendant to purchase 1 kilogram of methamphetamine from Rosas-Saucedo, which again was shipped from Southern California to the Southern District of Alabama
In October 2016, investigative team members of FBI Vancouver authored a federal search warrant for the defendant’s residence in Vancouver, Washington as well as a vehicle owned by another member of the conspiracy. A search of the residence revealed eight cellular phones, $7,388.00 in United States currency and multiple notebooks containing drug ledgers. A search of the vehicle, a 2013 Dodge Ram Pickup, yielded approximately $62,000 in United States currency, a stolen handgun and approximately 4.4 pounds of methamphetamine.The case was jointly investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation in Vancouver, Washington, the United States Postal Inspector in Mobile and the Mobile Police Department. Assistant United States Attorney George May prosecuted the case.
Acting United States Attorney Steve Butler stated, “this case represented the quintessential example of the partnership between different federal law enforcement agencies as well as the cooperation between federal and local law enforcement agencies”. Butler stated, “I laud the efforts of law enforcement in shutting down this significant methamphetamine trafficking organization”.
Winslow Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Darrin Cates, 47, of Winslow, Maine, was sentenced today in U.S District Court by Judge John A Woodcock, Jr. to 10 years in prison to be followed by 10 years of supervised release for possessing child pornography. Cates pleaded guilty on October 23, 2015.
According to court records, on January 9, 2015, law enforcement authorities executed a search warrant at Cates’s residence and seized computer equipment. A forensic examination revealed about 550 images and 276 videos of child pornography depicting two to 11-year-old children. Cates admitted that he possessed large quantities of child pornography and that he was interested in eight to 12-year-old girls.
In imposing sentence, Judge John Woodcock noted that the images were “egregious,” “disturbing” and “abhorrent” and said that Cates “committed a crime that touches upon a societal nerve,” and that it was “profoundly troubling” that Cates collected such “truly sick images.”
The investigation was conducted by the Maine State Police Computer Crimes Unit and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Wilkes-Barre Man Pleads Guilty to Crack Cocaine TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jahkel Lamar, age 29, of Wilkes-Barre, Pennsylvania, pleaded guilty on April 24, 2017, before U.S. District Court Judge Malachy E. Mannion to possession with intent to distribute more than 28 grams of crack cocaine.
According to United States Attorney Bruce D. Brandler, Lamar admitted to possessing approximately 127 grams of crack cocaine on September 1, 2016, at a bus terminal on Lackawanna Avenue in Scranton after Lamar had returned to Scranton by bus from New York City.
Judge Mannion ordered that a pre-sentence investigation be completed. Sentencing will be scheduled at a later date.
The case was investigated by the Drug Enforcement Administration, and the Scranton Police Department, Special Investigations Division. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to forty years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Weymouth Woman Sentenced for Stealing $700,000 from EmployerRead the Press Release
BOSTON – A Weymouth woman was sentenced today in federal court in Boston in connection with a fraud scheme in which she stole approximately $701,826 from her employer.
Katelin Garland, 39, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two years in prison, two years of supervised release and ordered to pay restitution in the amount of $656,825. In November 2016, Garland pleaded guilty to two counts of wire fraud. Garland’s former employer previously recovered approximately $45,000 that Garland stole.
As an administrative manager for a company in Massachusetts, Garland was responsible for depositing checks received, maintaining the record-keeping system, and requesting checks payable for entities in connection with business services. From approximately October 2011 to October 2015, Garland took advantage of flaws in her employer’s accounting and auditing systems and requested checks payable to fictitious names, which she then endorsed and deposited to a bank account she controlled. To conceal the scheme, Garland made false entries in her employer’s record-keeping system concerning those payments. Garland used the funds to pay for living expenses, tickets to sporting events, private school tuition for her children, as well as to purchase a boat, travel and shop.
Acting United States Attorney William D. Weinreb and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.
Westbrook Men Indicted for SNAP and WIC Trafficking ConspiracyRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 945-0373Portland, Maine: Acting United States Attorney Richard W. Murphy announced that brothers Ali Ratib Daham, 40, and Abdulkareem Daham, 21, of Westbrook, Maine, were charged by indictment today in U.S. District Court with conspiracy to defraud and to commit offenses against the United States. In addition, Ali Ratib Daham was charged with SNAP and WIC trafficking, wire fraud, money laundering and theft of government funds. The charges arise out of the defendants’ operation of Ahram Halal Market on Forest Avenue in Portland. Ali Ratib Daham was the owner and operator of the market; Abdulkareem was an employee.
The Supplemental Nutrition Assistance Program (“SNAP”) is a federal government program, formerly known as the Food Stamp Program, designed to raise the level of nutrition among low-income households. The Special Supplemental Nutrition Program for Women, Infants and Children (“WIC”) is a federal program that provides supplemental food, health care referrals and nutrition for certain low-income women, and to infants and children up to age five who were found to be nutritionally at risk.
The indictment alleges that from about June 2011 until about April 2016, the defendants engaged in a SNAP and WIC trafficking conspiracy by allowing customers to exchange SNAP benefits and WIC checks for cash at a discounted rate and allowing SNAP benefits to be used to purchase ineligible goods or services or illegally pay off credit accounts at the market. The indictment also alleges that Ali Ratib Daham allowed customers to exchange SNAP benefits for cash or use their SNAP benefits to pay down credit accounts, allowed customers to redeem WIC coupons for cash, committed wire fraud by allowing a customer to use an EBT card containing SNAP benefits to obtain cash at a discounted rate, laundered proceeds of SNAP trafficking, and stole about $39,000 in SNAP and MaineCare benefits by failing to report or update changes to his income and assets with the Maine Department of Health and Human Services (“MDHHS”).
Both defendants face up to five years in prison and a $250,000 fine on the conspiracy charge. In addition, Ali Ratib Daham faces up to five years in prison on the WIC and SNAP trafficking charges, up to 20 years on each of the wire fraud and money laundering charges, up to ten years on the theft charges and up to a $250,000 fine on each count.
"I am extremely grateful to MDHHS' investigative team for their incredible work on uncovering and prosecuting potential welfare fraud; I am committed to maintaining this focus to ensure our limited taxpayer dollars are going toward those who truly need them. The collaboration between our Department and the FBI highlights the importance of working together to protect the integrity of our welfare system. I also appreciate the work done by the Federal Bureau of Investigation (“FBI”) that led to the indictment.” said MDHHS Commissioner Mary Mayhew.
This case is being investigated by the FBI; the U.S. Department of Agriculture, Office of Inspector General; the Internal Revenue Service-Criminal Investigation; and the MDHHS, Fraud Investigation and Recovery Unit.
An indictment is merely an accusation and a defendant is presumed to be innocent unless proven guilty in a court of law.
Upstate Residents Plead Guilty to Mail Theft ConspiracyRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Nerissa A. Orr, age 42, of Simpsonville, and Craig A, Mann, age 21, of Greenville, pled guilty today in federal court in Greenville, to a conspiracy to commit mail theft, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendants stole mail in and around Greenville County in an effort to obtain bank account numbers, routing numbers, and identification information. Once in possession of this material they would create counterfeit checks and negotiate them to obtain money for methamphetamine.On June 10, 2016, a search warrant was executed in connection with this investigation at the Greenville home of co-conspirator Cary L. Wright, age 38, who has already been sentenced to 51 months in the Bureau of Prisons for his participation in the offense. Items recovered from the residence included, but was not limited to, numerous pieces of mail belonging to others, checks stolen from the mail, financial transaction cards, blank check stock, counterfeit checks, and a computer used for check counterfeiting. Many of the counterfeit checks were made out to Mann and Orr, but had yet to be negotiated.
Ms. Drake stated the maximum penalty defendants can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Greenville City Police Department and the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
#####
Two Narcotics Dealers Charged in Manhattan Federal Court with Heroin Overdose Death in A Hospital Rehabilitation ClinicRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a superseding indictment charging ANTHONY DODAJ, 46, and DUANE MARTINEZ, 44, with narcotics dealing that resulted in the heroin overdose death of a 41-year-old patient in a hospital rehabilitation clinic.
On April 20, 2017, a grand jury returned an indictment charging DODAJ and MARTINEZ with conspiracy to distribute heroin. The indictment alleges that heroin distributed by DODAJ and MARTINEZ on January 1, 2017, resulted in the death of Ivy Katz, age 41.
DODAJ was arrested on a complaint on March 27, 2017, and was held without bail. MARTINEZ will be presented in federal court in Manhattan before U.S. Magistrate Judge Kevin Nathaniel Fox later today. The case has been assigned to U.S. District Judge Vernon S. Broderick. DODAJ and MARTINEZ each face a mandatory minimum term of 20 years in prison.
Acting U.S. Attorney Joon H. Kim stated: “As alleged, Duane Martinez and Anthony Dodaj worked together to deliver a fatal dose of heroin to Ivy Katz, even as she was a patient in a hospital rehabilitation clinic. Martinez and Dodaj will now be held to account for their role in fueling the tragic overdose death crisis in New York City.”
NYPD Commissioner James P. O’Neill stated: “These defendants face 20-years-to-life in prison in connection with the overdose death of a 41-year-old woman. Those who sell heroin should know that the NYPD is committed to investigating overdoses to hold dealers responsible for their deaths. I want to thank the U.S. Attorney’s Office and the NYPD detectives who worked on this case. Together, we’re fighting the alarming rise in overdoses with every tool we have.”
As alleged in the Indictment against DODAJ and MARTINEZ[1]:
From at least in or about September 2016 through in or about March 2017, in the Southern District of New York and elsewhere, ANTHONY DODAJ and DUANE MARTINEZ, the defendants, and others conspired to sell heroin. In addition, the use of controlled substances distributed by DODAJ and MARTINEZ on or about January 1, 2017, resulted in the death of Ivy Katz.
* * *
ANTHONY DODAJ, 46, and DUANE MARTINEZ, 44, each face a maximum of life in prison, and a mandatory term of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Kim praised the outstanding investigative work of the NYPD.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney David W. Denton Jr. is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Columbus Men Charged with Homicides of WitnessesRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Antwan L. Hutchinson, 25, and Michael J. Favors, 24, both of Columbus, with the murders of two potential witnesses and the beating of a third witness in an indictment returned in Columbus.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) and Columbus Police Chief Kim Jacobs announced the indictment returned today.
Hutchinson and Favors allegedly possessed and distributed cocaine, heroin, oxycodone and marijuana. It is alleged that, as part of the drug conspiracy, they used “trap houses” that were in others’ names as locations to store and sell the drugs. This included using threat of force and using the homes of drug-addicted individuals.
Allegedly, it was part of the conspiracy to intimidate assault, threaten and torture individuals with serious physical harm who were perceived as owing money or drugs to the members of the conspiracy. Further, the indictment alleges that Hutchinson and Favors tortured and killed individuals who were seen as potential witnesses against the members of their conspiracy.
It is alleged that Hutchinson and Favors intentionally killed Sidney Campbell and Marie Stamp because they were perceived as potential witnesses against the defendants. They are also allegedly responsible with the beating of Cody Campbell, who subsequently died.
In the 12-count indictment, both defendants are charged with conspiracy to distribute and possess with intent to distribute controlled substances, two counts of conspiracy to murder a witness, two counts of murder of a witness, two counts of murder through use of a firearm in relation to a drug trafficking crime, conspiracy to tamper with a witness and use of a firearm during a crime of violence.
Hutchinson is also charged with an additional count each of conspiracy to tamper with a witness, use of a firearm during a crime of violence and use of a firearm in relation to a drug trafficking crime.
The indictment includes death-eligible specifications under the Federal Death Penalty Act.
Hutchinson and Favors were arrested on March 27 and remain in custody.
U.S. Attorney Glassman commended the investigation of this case by ATF and the Columbus Police, as well as Assistant United States Attorneys David M. DeVillers and Jessica W. Knight who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #
Two Charlotte Bloods Gang Members Sentenced to Life in Prison for the Double-murder of Lake Wylie CoupleRead the Press Release
CHARLOTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that Jamell Lamon Cureton, 24, and Malcolm Jarrel Hartley, 23, were both sentenced to life in prison without parole in connection to the 2014 double-murder of Douglas and Deborah London in Lake Wylie, S.C., and related charges. Cureton was also sentenced to life in prison for the 2013 murder of Kwamne Donqurius Clyburn in Charlotte. U.S. District Judge Max O. Cogburn, Jr. presided over today’s sentencing hearings.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Chief Kerr Putney of the Charlotte-Mecklenburg Police Department; and Sheriff Kevin R. Tolson of the York County Sheriff’s Office in South Carolina join U.S. Attorney Rose in making today’s announcement.
“Today, the Court handed down life sentences to Cureton and Hartley for the murders of three innocent people whose families are still dealing with the loss of their loved ones. May these sentences bring some sense of peace for those grieving families,” said U.S. Attorney Rose. “Our message to these violent gangs: We are resolute, we are prepared and we will ensure you are punished mightily for gang violence and community intimidation.”
According to previous court filings, admissions contained in filed plea documents and today’s sentencing hearings:
Beginning at least in or about 2012, Cureton, Hartley and their co-defendants were members of the United Blood Nation gang (UBN or Bloods) in Charlotte. As UBN members, the defendants carried out violent acts for the purpose of protecting and furthering the gang’s power. Court documents show that the defendants operated according to a common set of Bloods’ rules and participated regularly in gang meetings to discuss, among other things, the commission of crimes, including robbery and murder.
Cureton, a.k.a. “Assassin” and “Murda Mel,” is a member of the Charlotte-area UBN and holds the rank of 5-Star General. As early as 2007, Cureton reported his affiliation with the UBN as a Valentine Blood. Law enforcement seized Cureton’s UBN “Book of Knowledge,” wherein he was identified as a 3-Star General and has since been promoted to a 5-Star General. As a 5-Star General, Cureton commanded the gang’s activities in the area. Hartley, a.k.a. “Silent” and “Bloody Silent,” is also a member of the Charlotte-area Valentine Blood set of the UBN. Hartley was “ranked up,” or “promoted,” to a 2-Star General, following the murders of Douglas and Deborah London.
On or about May 25, 2014, Cureton, Nana Yaw Adoma and David Lee Fudge robbed “The Mattress Warehouse” store, owned by the victims, Douglas and Deborah London, in Pineville, N.C. Federal charges were subsequently filed against Cureton, Adoma and Fudge in connection with the robbery. In the months that followed, Cureton communicated with Hartley and other UBN gang members and associates, including co-defendants Daquan Lamar Everrett, Randall Avery Hankins, II, Nehemijel Maurice Houston, Briana Shakeyah Johnson, Ibn Rashaan Kornegay, Centrilla Shardon Leach, and Rahkeem Lee McDonald to plan the murders of Douglas and Deborah London. In a letter Cureton sent from prison, Cureton explained that he ordered the murder of Douglas London because the victim was going to testify against him in court, and described Deborah London as “collateral damage.” The gang’s leadership authorized Hartley to proceed with the murder, and on or about October 23, 2014, Johnson drove Hartley to South Carolina, where Hartley shot and killed Douglas and Deborah London at their home.
Following the Londons’ murders, UBN leadership directed the gang members to “lay low” and to avoid contact with law enforcement. Cureton also told Hartley that from that point forward the topic of the victims’ murders was forbidden to be discussed and authorized action against any person who talked about it.
In addition, on August 22, 2013, Cureton, Adoma and Akheem McDonald murdered Kwamne Donqurius Clyburn, after luring him to Pressley Road Neighborhood Park, in Charlotte. Cureton admitted in court papers that the three gang members murdered Clyburn because they suspected that Clyburn was “false claiming” (falsely claiming to be a Bloods member), and because Clyburn failed a “DNA check,” meaning that they could not verify Clyburn’s claim to be a Blood.
In September 2016, Cureton pleaded guilty to a total of 10 criminal counts: two counts of murder in aid of racketeering for the deaths of Douglas and Deborah London; two counts of use and carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the deaths of Douglas and Deborah London; one count of racketeering conspiracy; one count of Hobbs Act robbery; one count of assault with a dangerous weapon in aid of racketeering activity; one count of use or carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence; one count of murder in aid of racketeering for the death of Kwamne Donqurius Clyburn; and one count of use and carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the death of Kwamne Donqurius Clyburn.
Hartley pleaded guilty to a total of five counts: two counts of murder in aid of racketeering for the deaths of Douglas and Deborah London; two counts of use and carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the deaths of Douglas and Deborah London; and one count racketeering conspiracy.
Cureton and Hartley’s co-defendants, Fudge, Everett, Kornegay, Leach, Johnson, Houston and Rahkeem Lee McDonald previously pleaded guilty to federal charges in connection with this prosecution. Sentencing dates for those defendants have not been set.
Three additional defendants, Adoma, Hankins and Ahkeem McDonald currently each face racketeering conspiracy charges. Ahkeem McDonald and Adoma are also charged with murder in aid of racketeering and use and carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the death of Kwamne Donqurius Clyburn. Adoma is also charged with Hobbs Act Robbery, assault with a dangerous weapon in aid of racketeering activity and use or carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence for his role in the mattress store robbery. Randall Hankins is also charged with two counts of murder in aid of racketeering and two counts of use and carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the deaths of Douglas and Deborah London.
The investigation was led by the FBI with the invaluable assistance of CMPD and the York County Sheriff’s Office. In making today’s announcement U.S. Attorney Rose also thanked York County Solicitor Kevin Brackett for his support and assistance throughout the investigation and prosecution of this case.
Assistant U.S. Attorneys Elizabeth Greene and Don Gast are prosecuting the case.
Three People Sentenced for Trafficking Heroin and FentanylRead the Press Release
BIRMINGHAM – A federal judge today sentenced three Birmingham residents for conspiring to traffic nearly $2 million worth of heroin and fentanyl, announced Acting U.S. Attorney Robert O. Posey and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
U.S. District Court Judge L. Scott Coogler sentenced ONANDAS CARMECE BEARD, 19, to five years in prison; ANTHONY LEVY ALEXANDER, 57, to eight years and nine months in prison, and BETTY LEVY ALEXANDER, 50, to nine years and five months in prison. Each of the defendants last year pleaded guilty to the conspiracy, acknowledging their involvement in the distribution of multiple kilograms of heroin and fentanyl between September 2015 and October 2016 in Jefferson County.
“The Birmingham Metro Area and other parts of North Alabama have seen a dramatic rise in the number of overdose deaths attributed to fentanyl or a combination of heroin and fentanyl,” Posey said. “Most heroin users have no idea whether the drug they are using contains fentanyl, and while heroin can be deadly, fentanyl is much more potent. Our office is committed to the kind of joint law enforcement effort that took down this large-scale supply operation and, undoubtedly, saved lives.”
“Heroin abuse is a growing drug problem across the nation, including here in Alabama,” Hamilton said. “Overdoses from heroin and heroin laced with fentanyl have increased dramatically and are destroying countless number of lives. It only takes a few grains of pure fentanyl for an immediate death sentence. DEA and our law enforcement partners will continue to investigate those who distribute this poison in our communities with no regard for the destruction they cause.”
The remaining six defendants in the case are scheduled for sentencing on May 9, June 29, and July 27. They are: ANTHONY LEVY WARD, 36, of Chelsea, FERLANDO CARMISE MIMS, 19, and COREY DARNELLE HAYNES, 37, both of Birmingham, and JOSE AGUSTIN GUTIERREZ, 31, JESUS UBALDO MONTOYA, 23, and MARAHAI ARDIZO ENRIQUEZ, 25, all of Phoenix, Ariz.
The indictment in the case sought a $1.7 million monetary judgment against the defendants as proceeds of illegal activity. The amount of fentanyl trafficked in the conspiracy was about 4.6 kilograms, or nearly 233,000 user doses of the drug. The total amount of heroin trafficked was about 5 kilograms, or approximately 50,000 user doses.
Betty Alexander was responsible for trafficking 4.6 kilograms of pure fentanyl and Anthony Alexander, her brother, with trafficking 5 kilograms of heroin and 1.5 kilograms of fentanyl.
The DEA investigated the case in conjunction with the Birmingham and Hoover police departments and the U.S. Marshals Service. The U.S. Attorney’s Office for the Northern District of Alabama is prosecuting the case.
###
Three Former Police Officers and Former Assistant District Attorney Arrested in Connecton with Gun License Bribery SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today that PAUL DEAN, ROBERT ESPINEL, GAETANO VALASTRO, a/k/a “Guy,” and JOHN CHAMBERS were arrested and charged in Manhattan federal court with conspiracy to commit bribery, among other offenses, in connection with a scheme involving the approval of gun licenses by the NYPD License Division in exchange for cash payments and non-monetary bribes. Acting U.S. Attorney Kim also announced the unsealing of the guilty pleas of David Villanueva, a former NYPD Sergeant assigned to the License Division, and Frank Soohoo, a gun license expediter. In connection with their guilty pleas, Villanueva and Soohoo have agreed to cooperate with the Government.
DEAN and ESPINEL were arrested and charged in Manhattan federal court with two counts of conspiracy to commit bribery, and one count of extortion; VALASTRO was arrested and charged in Manhattan federal court in the same case with two counts of conspiracy to commit bribery, and one count of making false statements. CHAMBERS was arrested and charged separately in Manhattan federal court with one count of conspiracy to commit bribery and one count of bribery. All four defendants were arrested this morning by FBI agents and officers from the NYPD’s Internal Affairs Bureau (“IAB”), and will be presented before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan this afternoon.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Corruption was allegedly pervasive at the NYPD’s License Division going up as high as Lieutenant Paul Dean, until recently the Division’s second in command, and including three other officers, Sergeant David Villanueva, Officer Robert Espinel and Officer Richard Ochetal. Corruption at the License Division also spawned a cottage industry of parasitic profiteers, alleged bribers masquerading as so-called expediters, that included other former police officers and John Chambers, a lawyer and former Brooklyn prosecutor. As alleged, for the police officers and expediters charged in this case, the critically important police function of issuing and controlling gun licenses was one they were willing to pervert for personal profit. When police officers violate their oath in this way, they not only betray the public they have sworn to protect, but their fellow officers who do their jobs the right way, remaining faithful to the duties they owe to the public and to each other. This Office, along with our partners at the FBI and NYPD, remain as committed as ever to ensure that public servants serve the public, not their personal pocketbooks.”
FBI Assistant Director William F. Sweeney Jr. said: “Law enforcement officials are granted authority to uphold the fundamental rule of law. But any abuse of this power – no matter how great or how small – is nothing short of a crime in and of itself. Today, as alleged, a series of gun expediters and former NYPD officers of various ranks face charges for their alleged role in a scheme that threatened the safety of our communities. The vast majority of NYPD officers who willingly protect our city each and every day, no matter the risks, shouldn’t be associated with a select few who, as charged, placed a higher priority on satisfying their desires than upholding the law.”
NYPD Commissioner James P. O’Neill said: “Over the past three years, the NYPD’s Internal Affairs Bureau has conducted a thorough and comprehensive investigation in coordination with the FBI. The behavior, as alleged in today’s charging documents, is intolerable. The charges reflect a serious violation of the oath these officers swore to uphold, eroding at the trust the public has in this Department. The NYPD will continue to investigate alleged wrongdoing and root out corruption wherever it might be found.”
According to the allegations in the Complaints unsealed today in Manhattan federal
court[1]:
DEAN was a member of the NYPD from 1994 through 2016, and was assigned to the License Division from 2008 through 2016. DEAN, a Lieutenant, was one of the highest-ranking members of the License Division and, from approximately November 2014 through November 2015, regularly ran the day-to-day operations of the License Division. ESPINEL was a member of the NYPD from 1995 through his retirement in 2016, and was assigned to the License Division from 2011 through 2016.
From at least 2013 through 2016, DEAN, ESPINEL, Villanueva, and Police Officer Richard Ochetal solicited and accepted bribes from gun license expediters in exchange for providing assistance to the expediters’ clients in obtaining gun licenses quickly and often with little to no diligence. They obtained bribes from at least three expediters: VALASTRO, Soohoo, and Alex Lichtenstein, a/k/a “Shaya.” VALASTRO was a former NYPD Detective who retired in 1999, and who operated a gun store out of which he sold guns, gun paraphernalia, and gun safety courses.
The bribes included cash payments, paid vacations, food and liquor, the services of prostitutes, and free guns, among other things. In exchange, DEAN, ESPINEL, Villanueva, and Ochetal approved, expedited, and upgraded licenses for clients of VALASTRO, Lichtenstein, and Soohoo. They did so by forgoing standard License Division diligence, including by failing to interview the applicants and failing to investigate the business-based need for applicants to carry guns. They approved licenses for individuals with substantial criminal histories, including arrests and convictions for crimes involving weapons or violence, and for individuals with histories of domestic violence.
In 2015, dissatisfied with the fact that expediters were profiting thousands of dollars per gun license applicant when DEAN, ESPINEL, and others did the work to approve those applications, DEAN and ESPINEL decided to retire and go into the expediting business themselves. In order to ensure the success of their business, DEAN and ESPINEL planned to bribe Villanueva, Ochetal, and others still in the License Division to enable their clients to get special treatment. They also agreed with VALASTRO to run their expediting and bribery scheme out of VALASTRO’s gun store. According to the plan, VALASTRO would benefit from the scheme because DEAN and ESPINEL would steer successful applicants to VALASTRO’s store to buy guns. They also tried to corner the expediting market by forcing other expediters to work through them. DEAN and ESPINAL attempted to coerce Soohoo into sharing his expediting clients with them by threatening to use their influence in the License Division to shut down Soohoo’s expediting business if Soohoo refused to work with, and make payments to, DEAN and ESPINEL.
* * *
In addition to this bribery scheme, JOHN CHAMBERS, a former Assistant District Attorney in Kings County, was arrested for a separate bribery conspiracy with Villanueva. CHAMBERS is an attorney who represents individuals before the License Division, and who markets himself to potential clients as the “Top Firearms Licensing Attorney in NY.” From at least 2010 through 2015, CHAMBERS gave Villanueva numerous valuable items, including tickets to sporting and entertainment events for Villanueva and his family, free dinners and lunches for Villanueva, sports memorabilia, and a wristwatch valued at approximately $8,000.
In exchange, Villanueva assisted CHAMBERS’s clients in several ways. He ensured that renewal applications submitted by CHAMBERS’s clients, which typically take 30 to 40 days for approval, were renewed more expeditiously, sometimes as quickly as within one day. In addition, in evaluating “incidents” – investigations to determine whether an individual’s gun license should be suspended or revoked – Villanueva expedited the investigations, and then shortened the suspension periods, for CHAMBERS’s clients.
Villanueva also helped CHAMBERS renew gun licenses for clients before the Pistol Section of the Nassau County Police Department, where Villanueva had contacts. Starting in or about 2012, CHAMBERS brought his clients’ renewal applications to Villanueva at One Police Plaza, and Villanueva mailed those applications to the Pistol Section using his NYPD License Division stationery. Villanueva did so knowing that because he was submitting the renewal applications using his NYPD License Division stationery, the renewals would be approved in a significantly faster time for CHAMBERS’s clients than for other applicants. In exchange, CHAMBERS paid Villanueva several times in cash, as well as with tickets to sporting and entertainment events for Villanueva and his family. CHAMBERS typically mailed Villanueva the cash by taping it to the inside of a magazine.* * *
DEAN, 44, who resides in Wantagh, New York, has been charged with two counts of conspiracy to commit bribery, each of which carries a maximum term of five years in prison, and one count of extortion, which carries a maximum term of 10 years in prison.
ESPINEL, 47, who resides in Seaford, New York, has been charged with two counts of conspiracy to commit bribery, each of which carries a maximum term of five years in prison, and one count of extortion, which carries a maximum term of 10 years in prison.
VALASTRO, 58, who resides in Queens, New York, has been charged with two counts of conspiracy to commit bribery, each of which carries a maximum term of five years in prison, and one count of making false statements, which also carries a maximum term of five years in prison.
CHAMBERS, 62, who resides in Manhattan, New York, has been charged with one count of bribery, which carries a maximum term of 10 years in prison, and one count of conspiracy to commit bribery, which carries a maximum term of five years in prison.
Villanueva, 43, pled guilty in February 2017 to one count of conspiracy to commit bribery, four counts of bribery, and one count of making false statements.
Soohoo, 55, pled guilty in October 2016 to one count of conspiracy to commit bribery, one count of bribery, one count of making false statements, and one count of mail fraud.
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.
Mr. Kim praised the investigative work of the FBI and the NYPD Internal Affairs Bureau, and noted that the investigation is continuing.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Russell Capone, Kan M. Nawaday, and Lauren B. Schorr are in charge of the prosecution.
The charges contained in the Complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the descriptions of the Complaints set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Three Defendants Sentenced for Their Involvement in Identity Theft RingRead the Press Release
Montgomery, Alabama – Patrick Rashaud Thomas (24) of Milledgeville, Georgia, Patience Denise Minor (51) of Phenix City, Alabama, and Shameka Lashay Thomas (27) of Sylvester, Georgia were sentenced in federal court yesterday for their involvement in an identity theft ring, announced A. Clark Morris, Acting United States Attorney for the Middle District of Alabama. Patrick Thomas was sentenced to 28 months in prison, Patience Minor received a sentence of six months in prison, and Shameka Thomas received three years of supervised release for her participation in the scheme.
Over the course of two years, these three conspirators used the personal information of more than 30 victims to open up 87 fraudulent credit card accounts. They collectively stole more than $13,000, and gained access to over $75,000 worth of credit before being caught by law enforcement.
The identity theft scheme was carried out by obtaining stolen personal identifying information and then using that information to apply for Capitol One credit cards under false pretenses. They would then direct those credit cards to be sent to addresses used by other conspirators. Patrick Thomas, who was aiding the other conspirators from inside a Georgia prison where he is serving time for unrelated felony convictions, would sometimes have proceeds from the credit cards placed on his prison commissary account.
Patience Minor was on probation for insurance fraud at the time of this offense. Court records indicate that she used the fraudulent credit cards from this scheme to pay off some of her probation costs from her previous conviction.
Acting U.S. Attorney Morris would like to thank the following entities for their assistance with this case: the United States Postal Inspector’s Service, and the Capitol One Bank, N.A. Fraud Department. The case was prosecuted by Assistant United States Attorney Bradley Bodiford.
Stockbroker Sentenced to 78 Months in Prison in Connection with Investment SchemeRead the Press Release
PHILADELPHIA –William Bucci, 60, of Philadelphia, PA, was sentenced yesterday to 78 months in prison for running an investment fraud scheme that duped victims into turning over more than $3.2 million, announced Acting United States Attorney Louis D. Lappen. United States District Judge Joel H. Slomsky also ordered that Bucci serve five years of supervised release after his prison term. In addition, Bucci must pay more than $3 million in restitution to the victims and the Internal Revenue Service.
According to the indictment, Bucci told his victims he was starting a wine and high-end olive oil import business. Among his one dozen victims was a Catholic Priest and a retired Philadelphia firefighter. The indictment charges securities fraud, four counts of mail fraud, one count of mortgage fraud, and five counts of making and subscribing false federal income tax returns for underreporting his income for the tax years 2007 through 2011. On June 8, 2016, Bucci entered a plea of guilty to the securities fraud, mail fraud, and mortgage fraud counts. He entered a plea of nolo contendre to the tax counts. After the government presented its evidence, the Court found the defendant guilty of all charges.
According to the indictment, beginning as early as 2004, Bucci represented to his brokerage clients-victims that he was starting a business to import high end olive oil and wine from Italy. But Bucci, who was a licensed stockbroker and a non-lawyer elector on the Pennsylvania Court of Judicial Discipline, never had an olive oil and wine business. He allegedly promised the clients a rate of return of at least 10% on their investment. He also falsely guaranteed to the investors that he would repay principal and interest. Bucci also allegedly solicited other individuals to loan him money for the purchase of real estate. According to the indictment, Bucci used funds from these individuals to support his lifestyle and to make payments to earlier victims. In total, the indictment alleges that victims entrusted in excess of $3.2 million to Bucci between November 2003 and December 2011.
The indictment further alleges that Bucci filed false federal income tax returns, underreporting his income, for the tax years 2007 through 2011. It is further alleged that, in 2012, Bucci provided false documents to Beneficial Mutual Savings Bank in connection with a mortgage that Beneficial held on a property that Bucci owned in Brigantine, New Jersey.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney David J. Ignall and Trial Attorney Derek J. Ettinger of the Fraud Section of the Criminal Division of the United States Department of Justice.
Statement by Attorney General Jeff Sessions Following Meeting with Representatives from the U.S. Conference of MayorsRead the Press Release
Today, Attorney General Sessions issued the following statement following his meeting with representatives from the U.S. Conference of Mayors:
“The Department of Justice will fulfill our responsibility to uphold and enforce our nation’s immigration laws, including 8 U.S.C. 1373. Under the Obama administration, the Department of Justice required certain grantees to certify compliance with federal law, including 8 U.S.C. 1373, as a condition for receiving grant funding. Last year, the Department of Justice’s Inspector General reported that 10 jurisdictions were potentially in violation of 8 U.S.C. 1373, including because they had policies that restricted local law enforcement from sharing information about criminal aliens in their custody.
“My letter has required those jurisdictions to submit a response by June 30 certifying they are in compliance. To date, only one has replied and we await the responses of the others. We will evaluate those responses to ensure the requirements of these grants are met. I once again urge these cities and jurisdictions to reevaluate their policies, protect their citizens and comply with the law.
“We are pleased that the mayors who met with us today assured us they want to be in compliance with the law. The vast majority of state and local jurisdictions are in compliance and want to work with federal law enforcement to keep their communities safe. Of course, compliance with 8 U.S.C. 1373 is the minimum the American people should expect. We want all jurisdictions to enthusiastically support the laws of the United States that require the removal of criminal aliens, as many jurisdictions already do.”Standish Man Sentenced to a Year and a Day in Prison for Health Care FraudRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Paulo D. Braga, 66, of Standish, Maine was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to one year and a day in prison for health care fraud. He was also ordered to pay $89,445 in restitution. Braga pleaded guilty to the offense on November 29, 2016.
According to court records, from 2010 to 2013, the defendant was a licensed clinical professional counselor who had offices in Portland and Windham, Maine. He billed MaineCare through a third-party mental health agency that required him to submit progress notes for each counseling session. MaineCare is part of the federal Medicaid program. Braga hired former mental health and substance abuse clients as office assistants and then instructed them to create and then sign his name to progress notes based on past progress notes, or that they created using their “imagination.” He instructed them to bill for sessions based on his calendar of appointments, regardless of whether the client showed up for the appointment. He also instructed his office assistants to always bill for the maximum number of sessions for a client that MaineCare allowed under its cap. As a result, his staff submitted progress notes to his billing agency that contained false information or dates-of-service and caused MaineCare to pay for counseling sessions that never took place.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations and the Healthcare Crimes Unit of the Maine Attorney General’s Office.
Southern Indiana U.S. Attorney’s Office files cyber threats and stalking charges against North Carolina womanRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler today announced criminal charges in a cyber-stalking case in which Shamonique Ferguson, a 21 year old from North Carolina, engaged in a pattern of internet threats that involved three Indiana University campuses, Ivy Tech, a business in Fishers, and a family living in Indiana. The three count complaint charges Shamonique Ferguson with extortionate communication, mail threats, and interstate stalking between December of 2016 and April of 2017.
According to the criminal complaint, Ferguson harassed her victim prior to December of 2016; however, beginning in 2017, the behavior escalated. Ferguson delivered threats to Indiana University, alleging that the victim was planning mass acts of physical violence on several of its campuses. Ferguson posted threats to send a pipe bomb to the victim’s residence and to commit violent acts at the victim’s then place of employment, a family entertainment center in Fishers, IN. Ferguson also mailed various items to the victim and her family, including an item that contained bodily waste and threats to kill the victim. Over a period of less than 4 months, Fishers police, fire, and ambulance services responded to the victim’s residence on more than 20 false reports made by Ferguson. Because many of the calls were recorded, a Fishers Police Department detective was able to recognize Ferguson’s voice as the false reporter. Facebook records for Ferguson showed that she enlisted others to make false reports against the victim as well.
“We live in times where the Internet, cell phones, and social media allow for unlimited communication with friends, family, and even complete strangers. Sadly, we also live in times where people abuse that privilege, turning a text message, a webpage, or a keyboard into an instrument of fear by instantaneously transmitting anonymous threats,” said United States Attorney Josh J. Minkler. “Faced with the risk of large scale violence, universities, businesses, and individuals cannot simply disregard threats. When an individual elects to threaten anyone in the Southern District of Indiana, in the manner laid out in our complaint, he or she should not expect to forever hide behind the anonymity of the web. What he or she should expect is a visit from federal, state, and local law enforcement, working together to ensure the safety of our citizens.”
This case was investigated by the United States Postal Inspection Service, Fishers Police Department, the Department of Homeland Security, and the Indiana State Police.
“Using the U.S. mail to communicate threats of violence, attempt extortion, or to commit stalking are criminal acts. The U.S. Postal Inspection Service investigates threats made against the American public. Working with our local law enforcement partners, a suspect has been apprehended and will now answer for those charges in Federal court,” said Patricia Armstrong, Inspector in Charge, U.S. Postal Inspection Service - Detroit Division.
“The landscape of this investigation quickly went beyond the borders of Fishers, Indiana. The use of the internet, social media and other electronics raised the level of harassment beyond a typical investigation. Law enforcement partnerships and resources also extend beyond borders. We take the safety of our community very seriously and working with State and Federal law enforcement on this case was absolutely necessary to end this cycle of harassment and threats. We are committed to seeing this case through the criminal justice system to affirm that this type of criminal activity does not continue,” said Fishers Indiana Chief of Police Mitch Thompson.
According to Assistant U.S. Attorney Kristina M. Korobov who is prosecuting the case for the government, if convicted, Ferguson faces up to 5 years of imprisonment for each count charged.
A criminal complaint is only a charge and not evidence of guilt. All defendants are innocent until proved guilty in federal court.
Southern California Residents Sentenced to Prison for Hiding Millions of Dollars in Secret Foreign Bank AccountsRead the Press Release
Three Orange County, California residents were sentenced to prison today for willfully failing to report their foreign bank accounts in Switzerland and Israel, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Dan Farhad Kalili, 55, a resident of Irvine, California, was sentenced to serve 12 months and one day in prison; his brother, David Ramin Kalili, 52, a resident of Newport Coast, was sentenced to serve eight months in prison; and his brother-in-law, David Shahrokh Azarian, 67, also a resident of Newport Coast, was sentenced to serve eight months in prison.
According to documents and information provided to the court, Dan Kalili, David Kalili and Azarian willfully failed to file with the Department of Treasury Reports of Foreign Bank and Financial Accounts (FBARs) regarding secret bank accounts in Switzerland and Israel that each maintained and controlled, many for well over a decade. These secret accounts held assets that reached into the millions of dollars.
“For more than a decade, Dan Kalili, David Kalili and David Azarian hid millions in secret offshore accounts,” said Acting Deputy Assistant Attorney General Goldberg. “They moved their funds from bank to bank and country to country in an effort to escape scrutiny. Today, each was sentenced to prison. The clear message is: the days when a U.S. citizen can safely stash money in an undeclared foreign account are over.”
“Today’s sentencing should reassure every honest, hardworking American taxpayer that schemes designed to conceal income in offshore accounts will not be tolerated,” said Chief Richard Weber of Internal Revenue Service Criminal Investigation (IRS-CI). “IRS-CI will continue to devote resources to investigate individuals who engage in these types of schemes for the purpose of personal gain by defrauding the U.S. Treasury and the American taxpayer.”
From May 1996 through at least 2009, Dan Kalili opened and maintained several undeclared offshore bank accounts at Credit Suisse Group (Credit Suisse) in Switzerland. He also opened and maintained several undeclared offshore bank accounts from at least 1998 through 2008 at UBS AG (UBS) in Switzerland. In July 2006, Dan Kalili opened an undeclared account at UBS in the name of the Colsa Foundation, an entity established under the laws of Liechtenstein. At the end of May 2008, the Colsa Foundation account held approximately $4,927,500 in assets. Similarly, David Kalili opened and maintained several undeclared accounts at Credit Suisse in Switzerland, from February 1999 through at least 2009, and at UBS in Switzerland, from October 1993 through at least 2008. Dan and David Kalili also maintained joint undeclared Swiss bank accounts at both UBS and Credit Suisse beginning in 2003 and 2004. Meanwhile, Azarian opened and maintained several of his own undeclared accounts at Credit Suisse in Switzerland from May 1994 through at least 2009, and at UBS in Switzerland from April 1997 through at least 2008.
Dan Kalili, David Kalili and Azarian took affirmative steps to prevent their assets in UBS and Credit Suisse from being discovered. Dan Kalili opened an undeclared account at Swiss Bank A in the name of the Colsa Foundation and in May 2008, transferred his assets from the UBS Colsa Foundation account to Swiss Bank A. By this time, Bradley Birkenfeld, an American banker who worked for UBS, had been indicted, Martin Liechti, a UBS executive, had been detained and UBS had announced that the Justice Department and the SEC were investigating whether it helped clients avoid paying taxes between 2000 and 2007. Dan Kalili later made a partial disclosure of the Swiss Bank A Colsa account on his individual income tax returns. In 2009, he opened undeclared accounts at Israeli Bank A and at Bank Leumi, both in Israel. In June 2009, he closed the joint undeclared account at Credit Suisse he held with David Kalili, as well as his own undeclared account, and transferred the funds. Shortly before its closure, the undeclared joint account at Credit Suisse held approximately $2,561,508 in assets. As of December 2009, Dan Kalili’s undeclared account at Israeli Bank A held assets valued at approximately $1,569,973, and his undeclared account at Bank Leumi held assets valued at approximately $2,497,931.
Similarly, in August 2008, David Kalili opened an undeclared account at Israeli Bank A in Israel, into which he transferred funds from his UBS accounts. He later partially declared the Israeli Bank A account on his individual income tax returns. As of August 2009, David Kalili’s undeclared account at Israeli Bank A held assets valued at approximately $1,369,489.
In August 2008, Azarian, also opened an undeclared account at Israeli Bank A in Israel, and in May 2009, he closed his undeclared account held at Credit Suisse and transferred the funds to Israeli Bank A. Azarian later partially declared this Israeli Bank A account on his individual income tax returns. At the time of its closure, Azarian’s undeclared account at Credit Suisse held assets valued at approximately $1,903,214.
In addition to the term of prison imposed, Dan Kalili was ordered to serve one year of supervised release and to pay $337,443 in restitution. He also agreed to pay a civil penalty of $2,674,329. David Kalili was ordered to serve one year of supervised release and to pay $243,019 in restitution. He also agreed to pay a civil penalty of $1,325.121. Azarian was ordered to serve one year of supervised release and to pay $197,840 in restitution. He also agreed to pay a civil penalty of $951,607.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant Chief Jorge Almonte and Trial Attorney Jason M. Scheff of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Central District of California for its substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
South African Man Sentenced to 25 Years for Sexually Exploiting a Minor and Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Denver Carolissen, 42, of Kuilsrivier, South Africa, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 25 years in prison and 15 years of supervised release for sexually exploiting a minor and transporting child pornography. Carolissen pleaded guilty on December 8, 2016.
According to court records, in 2010, Carolissen, who was in South Africa, took several sexually explicit photographs of a minor girl. In September 2014, he sent the photographs to undercover federal agents in Maine investigating the online exchange of child pornography. He also sent child pornography images depicting other children to the investigators. He was indicted in the District of Maine in November 2014, and arrested by South African authorities. Following his arrest, he admitted that he had engaged in sexual activity with the minor girl, taken photos and video footage of the activity, and sent images to other individuals using the internet.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Family Violence, Child Protection and Sexual Offenses Unit of the South African Police Service.
Sarasota Man Pleads Guilty to Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Obenson Cerulist (27, Sarasota) has pleaded guilty to theft of government property. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in September 2013, a search warrant was executed at a home in Bradenton that Cerulist was sharing with Brandon Taylor. Based on evidence of narcotics activity found during the search, Cerulist pleaded guilty and was sentenced to 41 months’ imprisonment. In addition to narcotics, more than 250 items of personal identifying information (PII) belonging to others was found in the home. In February 2014, a second search warrant was executed at the home of Cerulist’s girlfriend, Loretta Gilchrist, where Cerulist occasionally stayed. PII was also found in Gilchrest’s home, along with prepaid debit cards and additional evidence linking Cerulist to the filing of fraudulent tax returns.
The direct loss to the Internal Revenue Service from the fraudulent tax returns filed during the course of this scheme was $156,399.39. The total amount claimed as a result of fraudulent tax returns was $571,708.
Taylor and Gilchrist were also prosecuted for their roles in this scheme. On August 2, 2016, Taylor was sentenced to 32 months in federal prison for theft of government funds. On February 28, 2017, Gilchrist was sentenced to 30 months in federal prison for theft of government funds.
This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Adam M. Saltzman.
Press Conference AdvisoryRead the Press Release
There will be a press conference today to announce federal public corruption charges relating to the New York City Police Department. Relevant charging documents are attached.
WHO:
Joon H. Kim, Acting United States Attorney for the Southern District of New York
William F. Sweeney, Special Agent-in-Charge of the New York Field Office of the Federal Bureau of Investigation
James P. O’Neill, Commissioner of the Police Department for the City of New York
WHEN:
Tuesday, April 25, 2017
11:00 a.m.
WHERE:
U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza
New York, NY 10007
CONTACT:
James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
Pittsburgh Woman Pleads Guilty to Laundering Heroin Trafficking ProceedsRead the Press Release
PITTSBURGH – On April 24, 2017, Lasean Gardenhire was convicted of conspiring to launder heroin trafficking proceeds, Acting United States Attorney Soo C. Song announced today.
Gardenhire, age 40, of Pittsburgh, Pennsylvania, pled guilty on the first day of trial in the courtroom of United States District Court Judge Nora Barry Fischer. In support of the guilty plea, the prosecution informed Judge Fischer that Gardenhire used thousands of dollars of the proceeds she obtained from the interstate heroin distribution business of her husband, Lance Gardenhire, to purchase and renovate certain residential properties in the Pittsburgh area and to purchase multiple luxury vehicles. She also converted the heroin proceeds into what appeared to be legitimate wealth that she could deposit into bank accounts with federally insured financial institutions.
Judge Fischer scheduled sentencing for Lasean Gardenhire to occur on August 30, 2017, at 11:30 a.m.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Immigrations and Customs Enforcement/Homeland Security Investigations, the Drug Enforcement Administration and the Pittsburgh Bureau of Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pittsburgh Man Pleads Guilty to Trafficking Heroin, Possessing WeaponRead the Press Release
PITTSBURGH – On April 24, 2017, Corey Cheatom was convicted of conspiring to engage in large-scale heroin trafficking, Acting United States Attorney Soo C. Song announced today.
Cheatom, age 29, of Pittsburgh, Pennsylvania, pled guilty on the first day of trial in the courtroom of United States District Court Judge Nora Barry Fischer. In support of the guilty plea, the prosecution informed Judge Fischer that, for several years leading up to May 2015, Cheatom and co-defendant Lance Gardenhire led a heroin trafficking organization in Western Pennsylvania. The organization was centered in and around the Beltzhoover area of Pittsburgh. Cheatom admitted as part of his guilty plea to being responsible for the distribution of between 10 and 30 kilograms of heroin and for the possession of a dangerous weapon. Also as part of his guilty plea, Cheatom agreed to forfeit his interest in two vehicles, a Mercedes and a Jaguar.
Judge Fischer scheduled sentencing for Corey Cheatom to occur on August 31, 2017, at 1:30 p.m.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pittsburgh Man Pleads Guilty on First Day of Trial to Leading Heroin Trafficking OrganizationRead the Press Release
PITTSBURGH – On April 24, 2017, Lance Gardenhire was convicted of conspiring to engage in large-scale heroin trafficking and money laundering, Acting United States Attorney Soo C. Song announced today.
Gardenhire, age 41, of Pittsburgh, Pennsylvania, pled guilty on the first day of trial in the courtroom of United States District Court Judge Nora Barry Fischer. In support of the guilty plea, the prosecution informed Judge Fischer that, for several years leading up to May 2015, Gardenhire led a heroin trafficking organization in Western Pennsylvania. The organization was centered in and around the Beltzhoover area of Pittsburgh. Gardenhire admitted as part of his guilty plea to being responsible for the distribution of between 30 and 90 kilograms of heroin and for the possession of a dangerous weapon. Also as part of his guilty plea, Gardenhire agreed to forfeit his interest in several Mercedes, Infinity, and Nissan vehicles.
In support of the money laundering conviction, the prosecution informed Judge Fischer that Lance Gardenhire, along with his wife, Lasean Gardenhire, filtered thousands of dollars of Lance Gardenhire’s heroin trafficking proceeds through Lasean Gardenhire’s bank accounts at federally insured banks that were engaged in interstate commerce. The heroin trafficking proceeds were thereby converted into bank funds and ultimately real and personal property possessed by Lance and Lasean Gardenhire.
Judge Fischer scheduled sentencing for Lance Gardenhire to occur on Aug. 30, 2017, at 9:30 a.m.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Pittsburgh Police Bureau of Police, and the U.S. Immigration and Customs Enforcement/Homeland Security Investigations led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pittsburgh Man Pleads Guilty in Heroin Trafficking SchemeRead the Press Release
PITTSBURGH – On April 24, 2017, Khyree Gardenhire was convicted of conspiring to engage in heroin trafficking, Acting United States Attorney Soo C. Song announced today.
Gardenhire, age 20, of Pittsburgh, Pennsylvania, pled guilty on the first day of trial in the courtroom of United States District Court Judge Nora Barry Fischer. In support of the guilty plea, the prosecution informed Judge Fischer that, for several years leading up to May 2015, Lance Gardenhire, Khyree Gardenhire’s father, led a heroin trafficking organization in Western Pennsylvania. The organization was centered in and around the Beltzhoover area of Pittsburgh. Khyree Gardenhire admitted as part of his guilty plea to participating in a conspiracy to distribute heroin, and to being responsible for the distribution of more than 700 grams of heroin.
Judge Fischer scheduled sentencing for Khyree Gardenhire to occur on August 30, 2017, at 1:30 p.m. The law provides for a total sentence of up to forty years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, and the Pittsburgh Bureau of Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pasquotank County Drug Trafficker Sentenced to 25 YearsRead the Press Release
RALEIGH - The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Terrence W. Boyle sentenced DAVON KELLY BENNETT, 42 years of age from Elizabeth City, N.C., to 240 months in prison for conspiracy to distribute 5 kilograms or more of cocaine, 100 grams or more of heroin and marijuana; possession with the intent to distribute 500 grams or more of cocaine, 100 grams or more of heroin and marijuana; and money laundering by concealment. Judge Boyle also sentenced BENNETT to 60 months for possession of a firearm in furtherance of a drug trafficking crime to run consecutively to the 240-month sentence, for a total sentence of 300 months. BENNETT will be on supervised release for 5 years upon his release from the Bureau of Prisons. Additionally, Judge Boyle entered an order forfeiting BENNETT’S residence, several motor vehicles and firearms, as well as directing that a money judgment be entered against BENNETT in the amount of $1,000,000 representing the gross proceeds of his drug trafficking. A jury in Elizabeth City, N.C. convicted BENNETT of the charges on October 20, 2016.
On March 4, 2015, detectives with the Pasquotank County Sheriff’s Office and other agencies executed a search warrant at BENNETT’S residence located at 1300 Brothers Lane, Elizabeth City, N.C. During the search, $81,047 was seized from BENNETT’S washing machine. Detectives found more than $10,000 in U.S. currency, three firearms, and titles to multiple motor vehicles registered in the names of nominee owners in BENNETT’S bedroom. Detectives located 92 grams of marijuana, a vacuum sealer, two sets of digital scales and two money counters in the house, and approximately 180 grams of marijuana in a shed on the property. Motor vehicles parked at the residence, including a Honda Odyssey, were searched the following day. Detectives recovered 3 kilograms of cocaine, 789 grams of heroin, $60,100 and a stolen .38 caliber revolver from a hidden compartment in the floor board of the Honda Odyssey.
Evidence presented at trial established that BENNETT had conspired to traffic narcotics, including over 45 kilograms of cocaine, since 2000 and had paid associates to register motor vehicles in their names to conceal his drug proceeds. BENNETT and his associates had been subjects of Organized Crime Drug Enforcement Task Force Operation Dare Devil, a long-term investigation conducted by several federal, state and local law enforcement agencies, including the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the Pasquotank County Sheriff’s Office, the Dare County Sheriff’s Office, the Greenville Regional Drug Task Force, the North Carolina State Bureau of Investigation, North Carolina Alcohol Law Enforcement, the Nags Head Police Department, the Kill Devil Hills Police Department, the Kitty Hawk Police Department, the Elizabeth City Police Department, and North Carolina Wildlife Enforcement.
The federal prosecution was handled by Assistant United States Attorney Brad Knott and Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Oxygen Equipment Provider Pays $11.4 Million to Resolve False Claims Act AllegationsRead the Press Release
The Department of Justice announced today that Braden Partners, L.P., doing business as Pacific Pulmonary Services, has agreed to pay $11.4 million to resolve allegations against it and its general partner, Teijin Pharma USA LLC, for violating the False Claims Act by submitting claims for reimbursement to Medicare and other federal healthcare programs for oxygen and related equipment supplied in violation of program rules, and for sleep therapy equipment supplied as part of a cross-referral kickback scheme with sleep clinics.
“This settlement demonstrates our continued pursuit of health care providers who take advantage of federal healthcare programs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will investigate and take action against providers who cut corners and pay kickbacks.”
California-based Pacific Pulmonary Services furnishes stationary and portable oxygen tanks and related supplies, and sleep therapy equipment, such as Continuous Positive Airway Pressure, Bi-level Positive Airway Pressure masks and related supplies, to patients’ homes in California and other states. The government alleged that, beginning in about 2004, Pacific Pulmonary Services began submitting claims to the Medicare, TRICARE and Federal Employee Health Benefits programs for home oxygen and oxygen equipment without obtaining a physician authorization, as required by program rules.
Beginning in 2006, certain of the company’s patient care coordinators also allegedly agreed to make patient referrals to sleep testing clinics in exchange for those clinics’ agreement to refer patients to Pacific Pulmonary Services for sleep therapy equipment. The government alleged that this conduct violated the Anti-Kickback Act, which prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and/or other federally funded programs.
“The U.S. Attorney’s Office is committed to taking all appropriate action against companies that disregard patients’ medical needs in pursuit of company profits,” said U.S. Attorney Brian J. Stretch for the Northern District of California. “Patients in federal health care programs expect and deserve medical care that is free from any undue influence and complies with the program safeguards that are in place to protect patients.”
“Home oxygen equipment and related supplies are some of the most fraudulently billed items of durable medical equipment,” said Special Agent in Charge Steven J. Ryan of the Office of Inspector General for the U.S. Department of Health and Human Services. “Medicare suppliers more concerned with profits than compliance will be met with investigation and enforcement.”
This settlement resolves allegations filed in a lawsuit by a former sales representative of Pacific Pulmonary Services, in federal court in San Francisco, California. The lawsuit was filed by Manuel Alcaine under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Mr. Alcaine will receive $1.824 million of the recovered funds.
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office of the Northern District of California, the Civil Division’s Commercial Litigation Branch, the U.S. Department of Health and Human Services Office of Inspector General, and the various other agencies that administer the federal health care plans at issue.
The case is captioned United States ex rel. Alcaine v. Braden Partners, L.P., dba Pacific Pulmonary Services, et al., Case No. 10-cv-4597 (N.D. Cal.). The claims resolved by the settlements are allegations only; there has been no determination of liability.
Oxygen Equipment Provider Pays $11.4 Million to Resolve False Claims Act AllegationsRead the Press Release
SAN FRANCISCO – Braden Partners, L.P., doing business as Pacific Pulmonary Services, has agreed to pay $11.4 million to resolve allegations against it and its general partner, Teijin Pharma USA LLC, for violating the False Claims Act. The government has accused the entities of submitting claims for reimbursement to Medicare and other federal healthcare programs in violation of program rules and as part of a cross-referral kickback scheme with sleep clinics. The announcement was made by U.S. Attorney Brian J. Stretch, Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler, and Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services Steven J. Ryan.
California-based Pacific Pulmonary Services furnishes stationary and portable oxygen tanks and related supplies, and sleep therapy equipment, such as Continuous Positive Airway Pressure, Bilevel Positive Airway Pressure masks and related supplies, to patients’ homes in California and other states. The government alleges that, beginning in about 2004, Pacific Pulmonary Services began submitting claims to the Medicare, TRICARE and Federal Employee Health Benefits programs for home oxygen and oxygen equipment without obtaining a physician authorization, as required by program rules. Further, beginning in 2006, certain of the company’s patient care coordinators also allegedly agreed to make patient referrals to sleep testing clinics in exchange for those clinics’ agreement to refer patients to Pacific Pulmonary Services for sleep therapy equipment.
“The United States Attorney’s Office is committed to taking all appropriate action against companies that disregard patients’ medical needs in pursuit of company profits,” said U.S. Attorney Stretch. “Patients in federal health care programs expect and deserve medical care that is free from any undue influence and complies with the program safeguards that are in place to protect patients.”
“This settlement demonstrates our tenacity in pursuing health care providers who seek to take advantage of federal healthcare programs,” said Acting Assistant Attorney General Readler. “Providers who cut corners and pay kickbacks should be aware that they may face serious consequences.”
“Home oxygen equipment and related supplies are some of the most fraudulently billed items of durable medical equipment,” said Special Agent in Charge Ryan. “Medicare suppliers more concerned with profits than compliance will be met with investigation and enforcement.”
The settlement resolves allegations filed in a lawsuit by a former sales representative of Pacific Pulmonary Services, in federal court in San Francisco, California. The lawsuit was filed by Manuel Alcaine under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. In this case, Mr. Alcaine will receive $1,824,000 of the recovered funds.
Assistant U.S. Attorney Gioconda Molinari handled the case with the assistance of Tiffani Chiu. The settlement was the result of a coordinated effort by the United States Attorney’s Office, the Civil Division of the Department of Justice, the Health and Human Services Office of Inspector General, and the various other agencies that administer the federal health care plans at issue.
The claims resolved by the settlements are allegations only; there has been no determination of liability.
Oregon Woman Sentenced to Prison for ID TheftRead the Press Release
A Portland, Oregon resident was sentenced to serve 24 months in prison for aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Billy Williams for the District of Oregon.
According to documents filed with the court, Roychelle Brown, 45, stole personal identifying information of homeless individuals and veterans from her employer, Central City Concern, a non-profit organization dedicated to helping fight homelessness and joblessness for residents of Portland, Oregon. Brown collected information related to individuals she believed had died and provided it to her sister, Tataneisha White, to use in filing fraudulent returns. White was sentenced to serve 37 months in prison in October 2015.
In addition to the term of prison imposed, Brown was ordered to serve one year of supervised release and to pay $2,000 in restitution to Central City Concern, to reimburse the organization for costs it incurred as a result of Brown’s identity theft. Brown previously pleaded guilty in December 2016.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Williams commended special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Trial Attorney Lori A. Hendrickson and former Trial Attorney Ryan Raybould of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.