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2 May 2017
Hickory Pathology Lab Agrees to Pay the United States $601,000 to Settle False Claims Act AllegationRead the Press Release
CHARLOTTE, N.C. - U.S. Attorney Jill Westmoreland Rose announced today that Piedmont Pathology in Hickory, N.C., has agreed to pay the United States $601,000 to settle allegations that it violated the False Claims Act by submitting false claims to Medicare and Medicaid for medically unnecessary procedures.
U.S. Attorney Rose is joined in making today’s announcement by Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina.
“Government healthcare programs serve a vital role in providing necessary services to the citizens of our district,” said U.S. Attorney Rose. “This office is dedicated to ensuring that money is spent wisely on medically necessary services that benefit healthcare consumers as opposed to profiting the bottom line of healthcare providers.”
“Patients should be able to trust that their health care providers only provide medically necessary services,” said Special Agent in Charge Jackson. “Working in close coordination with the U.S. Attorney’s Office, we will continue to pursue health care companies that threaten the integrity of federal health care programs.”
The allegations arose from a lawsuit filed by a whistleblower, Dr. Kim Geisinger (the Relator), under the qui tam provisions of the False Claims Act. Relator Dr. Geisinger is a pathologist who formerly worked for Piedmont Pathology. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The case is investigated by the United States, which can choose to take over the case or allow the Relator to pursue the case. Relator Dr. Geisinger will receive approximately $120,200 from the recovery announced today.
According to court documents, pathology practices apply stains to specimens to allow pathologists to identify abnormalities in the tissue. These stains include a routine hemotoxylin and eosin (H&E) stain and other special stains for various purposes. Among other things, the complaint alleges that a pathologist should review the specimen with the routine H&E stain before any special stain is used on the specimen. Special stains are billed separately to government healthcare programs. The government considers the use of special stains before the analysis of the routine H&E stained specimen to be medically unnecessary. In November 2016, the United States intervened in the case, pursuing claims that Piedmont Pathology lacked medical necessity for the special stains conducted on certain gastric biopsies before a pathologist reviewed the routine H&E stained specimen.
In making today’s announcement U.S. Attorney Rose thanked HHS-OIG for their coordination with the U.S. Attorney’s Office in investigating this case. The settlement was negotiated by Assistant U.S. Attorney Jonathan Ferry, of the U.S. Attorney’s Office in Charlotte.
The case is captioned United States of America ex rel. Geisinger v. Piedmont Pathology Associates, Inc. and Piedmont Pathology, Professional Corporation, Case No. 5:14-CV-121. The claims settled by the lawsuit are allegations only and there has been no determination of liability.
Harvey Man Sentenced for Conspiracy to Commit Financial Aid FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BOBBY R. LOWE, age 66, of Harvey, was sentenced today after previously pleading guilty to one count of conspiracy to commit mail fraud.
U.S. District Judge Jay C. Zainey sentenced LOWE to one-year probation and a $100 special assessment.
According to court documents, LOWE owned and operated a printing company in Harvey. In early 2013, LOWE conspired with student applicants to produce fraudulent high school transcripts and diplomas, as well as fraudulent GED certificates and transcripts, which were sent to the Office of Admissions at Delgado Community College in New Orleans. LOWE also provided his co-conspirators with envelopes with return addresses for the Department of Education and the Louisiana Community & Technical College System in Baton Rouge. LOWE instructed his co-conspirators to mail the documents from Baton Rouge, so the documents would look more legitimate. The purpose of the scheme was to obtain federal financial aid from the United States Department of Education and Delgado Community College.
Acting U.S. Attorney Evans praised the work of the United States Department of Education-Office of Inspector General and the United States Secret Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans was in charge of the prosecution.
Hartford Crack Dealer Sentenced to 21 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHRISTOPHER ROSA, 33, of Hartford, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 21 months of imprisonment, followed by one year of supervised release, for using a telephone to facilitate the distribution of crack cocaine.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
During the investigation, ROSA contacted his crack cocaine supplier, Eduardo Zayas, more than 100 times to obtain crack for subsequent redistribution.
On May 15, 2015, Hartford Police arrested Zayas after he traveled to a parking lot to meet his own drug supplier who was in possession of approximately 320 grams of crack. A subsequent search of an apartment on New Britain Avenue in Hartford that was connected to Zayas revealed a .25 caliber handgun, a magazine with four live .25 caliber rounds, approximately 52 grams of crack, items used to process and package narcotics, and $4,120 in cash.
On February 3, 2016, ROSA pleaded guilty to one count of use of a telephone in the commission of a drug trafficking felony.
ROSA’s criminal history includes multiple felony drug convictions and a firearms conviction.
Zayas pleaded guilty and, on January 27, 2017, was sentenced to 65 months of imprisonment.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division, Major Crimes Unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Harrison County man indicted on firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, man was indicted by a grand jury today on charge of unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Matthew E. Boone, age 32, was indicted on one count of “Unlawful Possession of a Firearm.”
Boone, having previously been convicted of heroin distribution in United States District Court, and five felonies in Harrison County Circuit Court, is accused of having a 9mm pistol in his possession. The crime is alleged to have occurred in January 2017 in Harrison County.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Grant County Man indicted on meth trafficking and firearm chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Petersburg, West Virginia, man was indicted by a grand jury today on charges of methamphetamine distribution and illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Joseph Nathaniel Hartman, age 33, was indicted on one count of “Distribution of Methamphetamine,” one count of “Distribution of Methamphetamine in Proximity of a Protected Location,” and two counts of “Unlawful Possession of a Firearm.”
The crimes are alleged to have occurred in August and September of 2015 and June of 2016 in Grant County.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police Bureau of Criminal Investigation, and the Grant County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Godfrey Man Sentenced to Federal Prison for Child Pornography OffenseRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Jeremy Foster, 32, of Godfrey, Illinois, was sentenced today by United States District Court Judge Staci M. Yandle to 60 months imprisonment for one count of receipt of child pornography. Judge Yandle also sentenced Foster to five years of supervised release to follow the imprisonment, a fine of $3,000 and a $100 special assessment.
According to court documents, on October 9, 2014, the Federal Police of Switzerland seized a server in Zurich, Switzerland that was running a child pornography website. Swiss authorities identified over 800 Internet Protocol (IP) addresses in the United States that had downloaded child pornography from this server. One of these IP addresses was registered to Foster’s Godfrey address. Agents from the St. Louis division of Homeland Security conducted the local investigation. Foster’s laptop was seized and a forensic search revealed that on October 4, 2015, Foster downloaded multiple videos containing child pornography. These videos constituted child pornography as defined at 18 U.S.C. § 2256(8). Homeland Security Investigations agents interviewed Foster and he confessed to downloading and viewing videos containing child pornography.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit
www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Homeland Security Investigations St. Louis division and prosecuted by Assistant United States Attorney Christopher Hoell.
Gila River Tribal Member Sentenced for Near-Fatal Assault of A WomanRead the Press Release
MARQUETTE, MICHIGAN — David Kel Baldwin, Jr., 45, of Watersmeet, Michigan was sentenced to 41 months in federal prison for assault resulting in serious bodily injury, Acting U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Paul L. Maloney ordered Baldwin to serve three years of supervised release following his prison term, to pay a $2,000 fine, and to pay a $100 special assessment. Baldwin pleaded guilty to the charge on February 2, 2017.
On August 12, 2016, Baldwin, an enrolled member of the Gila River Indian Community, assaulted an enrolled member of the Lac Vieux Desert Tribe at a residence located on Lac Vieux Desert reservation lands, beating the female victim with his hands. The victim suffered serious bodily injury as a result, and, if not treated promptly by medical personnel, would likely have died as a result of her injuries.
The Lac Vieux Desert Tribal Police and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case.
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Georgia Man Pleads Guilty to Stealing Deceased Father’s Social Security BenefitsRead the Press Release
ATLANTA - Timothy S. Lenon has pleaded guilty to one count of theft of government funds for stealing over $300,000 in Social Security benefits. Lenon received and subsequently spent his deceased father’s Social Security benefits for over 20 years after his death, and did the same with his father’s New York City pension.
“Lenon pocketed his deceased father’s Social Security payments for over 20 years, using the money to pay his own personal expenses,” said U. S. Attorney John Horn. “His theft ultimately diverted these scarce resources from those citizens who truly needed them to live.”
“The Social Security Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits. I’m grateful that the U.S. Attorney’s Office shares our determination to protect the integrity of the SSA’s programs for those who rely on them now and into the future,” stated Special Agent-in-Charge Margaret Moore-Jackson.
According to U.S. Attorney Horn, the charges and other information presented in court: The defendant's father died on January 16, 1994. At the time of his death, he received Social Security retirement benefits and New York City pension benefits that were deposited directly into his bank account. The defendant never notified Social Security that his father died and never closed his father's bank account.
Two years after his father's death, Lenon contacted Social Security and changed the address on his father's account in order to maintain the appearance that his father was still alive. As a result, his father's benefits continued to be deposited into his bank account until April 2014. Bank records showed that Lenon used the money in his father's account to live beyond his means. Social Security money paid for multiple credit cards in both his and his partner’s names, dozens of monthly Amazon purchases, utility bills for himself and his family, and phone bills. In total, the defendant stole over $309,000 from Social Security.
When law enforcement questioned the defendant, he claimed that he thought the bank account was closed after his father's death. Later, he told law enforcement that he never touched the money in the account. Eventually, he admitted that he spent some funds from the account, but continued to minimize the magnitude of his theft by claiming that he only spent money out of the account for a two-year period. The evidence, however, directly contradicted his version of events and showed that he spent all the money in the account.
Additionally, the defendant did not notify the New York City pension system of his father's death, and therefore, his father's pension benefits continued to be direct deposited into his father's account from 1994 until 2008. In total, the New York City pension system deposited over $157,000 into his father's account. Lenon also spent all of this money.
Sentencing for Timothy S. Lenon, 57, of Philadelphia, Pennsylvania, is scheduled for July 19, 2017 at 11:00 a.m., before U.S. District Judge Charles A. Pannell Jr.
This case is being investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gang Members Plead Guilty to Racketeering ChargesRead the Press Release
Two members, including the top leader, of the Detroit branch of the Rollin 60s Crips street gang pleaded guilty yesterday to various racketeering and firearms offenses based on their roles in gang-related murders, shootings, and drug distribution. The guilty pleas are the result of the collaborative efforts of law enforcement and the community to reduce homicide and other violent crime under the Detroit One program, announced Acting U.S. Attorney Daniel L. Lemisch.
Joining in the announcement was S. Robin Shoemaker, Special Agent in Charge of the Detroit Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Chief James Craig of the Detroit Police Department.
According to the indictment, the Rollin’ 60s Crips is a national street gang founded in Los Angeles, California, in the mid-1970s. In 2008, Jerome Hamilton, who pleaded guilty yesterday, started a Detroit line of the Rollin 60s, which now boasts approximately 150 members and who operated primarily on the west side of Detroit in the vicinity of Seven Mile and Tracey. The Rollin 60s Detroit chapter is a violent organization responsible for numerous assaults, robberies, carjackings and the unlawful possession and trafficking of firearms and narcotics in and around the Detroit metropolitan area over the last nine years. The gang uses violence as a means of retribution for acts done by rival gang members, to intimidate witnesses, and as a means for individuals to maintain or advance their position within the gang.
The leader, Jerome Hamilton, 24, of Southfield, pleaded guilty to racketeering conspiracy and use of a firearm during and in relation to a crime of violence causing death. As part of the underlying racketeering activity, Hamilton took responsibility for the August 8, 2011 homicide of Kionte Atkins during a drive-by shooting and being involved in the distribution of marijuana as part of his membership with the Rollin 60s Crips. plea agreement calls for a sentence of 30 to 35 years in prison.
Another gang member, Roderek Perry, 22, of Detroit, also pleaded guilty to racketeering conspiracy, assault with a dangerous weapon in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence. According to his plea documents, Perry was a member of the Rollin 60s Crips from 2011 to 2016. Perry admitted to participating in the drive-by shooting of Kionte Atkins on August 8, 2011, as well as a June 20, 2012 attempted robbery that left Perry’s fellow gang member dead after Perry inadvertently killed him during the robbery. In addition, Perry sold narcotics to fund activities of the gang. Perry’s plea agreement calls for a sentence of 30 to 35 years in prison.
"Violence in our communities will not be tolerated and this investigation should serve as a warning to others threatening the safety of our citizens," said ATF Special Agent in Charge Robin Shoemaker. "ATF will continue to partner with our law enforcement partners to protect our neighborhoods from violent organized street gangs."
"Violent Gangs should have no place or acceptance in our communities. It should be clear from today's outcome that gang members cannot avoid responsibility for their crimes and law enforcement will not stop going after them,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
Hamilton and Perry are the tenth and eleventh members of the Rollin 60s Crips to plead guilty in this investigation. Other Rollin 60s Crips members have pleaded guilty to racketeering conspiracy for acts involving carjackings, armed robberies, firebombing, unarmed robberies, and distributing narcotics on behalf of the gang. Those members are:
- Darriyon Mills, 25, of Detroit, pleaded guilty to RICO conspiracy and using a firearm during and in relation to a crime of violence;
- Jonathan Barber, 25, of Detroit, pleaded guilty to RICO conspiracy;
- Deaires Foster, 23, of Irondale, Alabama, pleaded guilty to RICO conspiracy;
- Timothy Price, 27, of Detroit, pleaded guilty to RICO conspiracy;
- Sadeisha Johns, 32, of West Bloomfield, pleaded guilty to RICO conspiracy;
- Soumo Kennedy, 23, of Detroit, pleaded guilty to RICO conspiracy;
- Brandon Kennedy, 23, of Detroit, pleaded guilty to RICO conspiracy;
- Charles Anthony Smith, 32, of Windsor, Ontario, Canada, pleaded guilty to RICO conspiracy; and
- Tre Tigner, 23, of Detroit, pleaded guilty to RICO conspiracy.
Three other alleged members of the gang are scheduled to begin trial on July 11, 2017, before Chief Judge Denise Page Hood.
The case is being investigated by the ATF’s Comprehensive Violence Reduction Program, which includes representatives of the Detroit Police, Michigan State Police, and Michigan Department of Corrections, in coordination with the FBI Violent Crime Task Force, and Detroit Police Department. The case is being prosecuted by Assistant U.S. Attorneys Eaton Brown and Shane Cralle.
Fountain Valley Man Arrested for Attempted Smuggling of Nearly 100 Asian Songbirds from Vietnam – Most of which Died in TransitRead the Press Release
LOS ANGELES – Federal agents this morning arrested a Fountain Valley man on federal animal smuggling charges that allege he illegally brought to the United States 93 Asian songbirds on a flight from Vietnam – most of which died in transit or soon after arriving at Los Angeles International Airport.
Kurtis Law, 49, who also maintains a residence in Vietnam, was arrested pursuant to a federal criminal complaint filed yesterday afternoon.
The complaint alleges that Law attempted to smuggle 93 Asian songbirds into the United States on March 24.
According to the affidavit in support of the complaint, investigators found several species of protected songbirds in Law’s luggage, including Bali Mynas birds (Leucopsar rothschildi), Chinese Hwamei birds (Garrulax canorus), Silver-eared Mesia birds (Leiothrix argentauris), and Red-billed Leiothrix birds (Leiothrix lutea). These species are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
The complaint alleges that the birds were placed in Law’s suitcases in a way “that allowed each bird little or no movement,” and all but eight of the 93 birds ultimately died as a result of the smuggling.
Law is expected to make his initial appearance this afternoon in federal court in downtown Los Angeles.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Law is specifically charged with smuggling goods into the United States, a felony offense that carries a statutory maximum penalty of 20 years in federal prison.
The investigation in this case is being conducted by the United States Fish and Wildlife Service, U.S. Customs and Border Protection, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The prosecution is being handled by Assistant United States Attorneys Dennis Mitchell and Erik M. Silber of the Environmental and Community Safety Crimes Section.
Former Pittsburgh physician convicted of 180 counts, including conspiracy to distribute steroids, human growth hormone, oxycodone and OxyContinRead the Press Release
A jury convicted former physician Richard Rydze on all 180 charged counts, including conspiracy to distribute anabolic steroids, human growth hormone, oxycodone and OxyContin, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
A sentencing date was not immediately set for Rydze, 67, of Pittsburgh.
“While a physician, Rydze used his prescribing pad in place of his ATM card, doling out steroids to enrich himself and flooding the community with dangerous painkillers,” Sierleja said. “He violated the law, his professional oath, and the trust of his patients.”
“Greed and power often drives criminal activity as evidenced by this indictment, where a physician decided to abuse his medical privileges in order to line his pockets,” Anthony said. “The FBI will continue to aggressively pursue doctors who illegally divert prescription medications.”
Various conduct detailed in the months-long trial spanned from 2005 through 2012.
Rydze was the sole owner of Optimal Health Center LLC (OHC), located at 425 First Avenue, Pittsburgh, which opened in 2007. Prior to OHC, Rydze was involved with other physicians in a joint medical practice known as Diagnostic Medical Associates, according to the indictment.
James Hatzimbes and William Sadowksi previously pleaded guilty to their roles in the case. Hatzimbes owned and operated HSE Salon and Wellness Center, aka HSE Anti-Aging & Wellness Center (HSE), formerly located in a strip mall at 2851 Saw Mill Run, Pittsburgh. It was located in the same strip mall where Hatzimbes owned and operated Hatz’s Solar Eclipse Tanning. Sadowski operated a Pittsburgh pharamacy called ANEWrx, according to court documents.
Together, they facilitated the conspiracy to illegally distribute controlled substances and, in the case of Sadowski, knowingly facilitated a kickback scheme from which Rydze directly benefitted.
Rydze conspired with others to distribute anabolic steroids, including Stanozolol, Nandrolone Decanoate, Testosterone Enanthate, Testosterone Cypionate, Oxandrolone and testosterone. He unjustly enriched himself by causing the distribution of the steroids for unauthorized uses such as bodybuilding and athletic performance enhancement, according to trial testimony and court documents.
Rydze and Hatzimbes scheduled “steroid clinics” at HSE nearly every other Saturday. Frequently, Rydze would falsely diagnose clients as having hormone imbalance or other conditions, and then knowingly prescribe steroids and human growth hormone, according to court documents.
Rydze and Hatzimbes had a financial relationship in which Rydze charged clients $75 for each visit at HSE, which Rydze and Hatzimbes split equally. Additionally, Hatzimbes received prescriptions for anabolic steroids and human growth hormone from Rydze on numerous occasions, which were filled at ANEWrx, despite no corresponding office appointments, notations or diagnosis to justify the prescriptions, according to court documents and trial testimony.
In early 2007, Rydze met with Sadowski, the co-owner of ANEWrx, and they agreed Rydze would be paid a commission on every prescription for human growth hormone, anabolic steroids and other specific medications filled at ANEWrx. Sadowski then provided Rydze with a list of ANEWrx’s price for each prescription. They agreed to mark up the price for Rydze’s patients, with Sadowski then kicking back additional money to Rydze, according to court documents and trial testimony.
Commission reports prepared by ANEWrx show that between August 2007 and January 2011, Rydze received $301,407 in commission payments. For commissions paid on mark-ups for Rydze’s patients, ANEWrx wrote one check to Rydze for $6,845 and three to OHC for $25,395. Additionally, ANEWrx made 14 deposits into OHC’s account totaling $146,465, according to court documents and trial testimony.
Rydze was also convicted of multiple counts of distribution of anabolic steroids, conspiracy to distribute human growth hormone, distribution of human growth hormone, distribution of controlled substances, obstruction of justice.
Rydze conspired with others to distribute controlled substances, including Oxycodone, Oxymorphone, Oxycontin and Opana, according to court documents.
Beginning in 2007, Rydze prescribed the painkillers to Williams Zipf. Later that year, Zipf requested Rydze put the prescriptions in the names of other people, including Zipf’s relatives. At times, Zipf requested Rydze write two prescriptions for him at the same time and leave the date blank on one so Zipf could fill it in later. Zipf took the prescriptions to numerous different pharmacies in order to avoid detection, according to court documents and trial testimony.
Zipf has pleaded guilty to crimes for his role in the case.
From 2005 through 2011, Rydze obtained more than 21,000 pills of Hydrocodone-Acetaminophen, commonly referred to as “Vicodin ES,” by calling in more than 200 prescriptions to Pittsburgh-area pharmacies. He did so by fraudulently and without lawful authority using a DEA registration number that was issued to another physician, and did so without the consent or knowledge of that physician, according to court documents and trial testimony.
The jury also found Rydze corruptly attempted to obstruct justice by calling his brother and asking his brother to lie to federal law enforcement by declaring that some of the diverted opioid prescriptions found in Rydze’s control during the execution of a search warrant were written to the brother. In fact, according to trial testimony and other evidence, the prescription was illegally written to Rydze’s deceased father. His brother refused and testified during the trial of this matter.
A related case accusing Rydze of engaging in widespread health care fraud remains pending.
This case was prosecuted by Assistant U.S. Attorney Carol M. Skutnik and Brian McDonough following an investigation by the FBI.
Former Pastor of St. Mary’s County Church Pleads Guilty to Federal Bank Fraud ChargesRead the Press Release
Greenbelt, Maryland – On May 1, 2017, John S. Mattingly, age 71, of Charlotte Hall, Maryland, pleaded guilty to bank fraud in connection with a scheme to steal funds from St. Francis Xavier Catholic Church, while he was the pastor.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, St. Mary’s County Sheriff Tim Cameron, and St. Mary’s County State’s Attorney Richard Fritz.
According to his plea agreement, Mattingly was ordained as a Roman Catholic priest in 1972 and was the pastor of St. Francis Xavier Catholic Church (St. Francis), in Leonardtown, Maryland, from 1994 until September 1, 2010, when he resigned. While serving as a parish priest, Mattingly was paid a salary and stipend by St. Francis.
From September 2006 through September 2010, Mattingly fraudulently deposited checks from parishioners made payable to St. Francis and to the St. Vincent de Paul Society, which were intended by the St. Francis parishioners to be charitable donations, into a bank account he controlled. In order to conceal the scheme, Mattingly falsely represented that that the checks he deposited into his bank account would be used for charitable purposes and/or church maintenance and renovations. Mattingly did not use the charitable contributions from the St. Francis parishioners for their intended purposes, but instead transferred the fraudulently obtained funds from his bank account to his personal individual retirement account. He also wrote unauthorized checks from the St. Francis bank account payable to himself and deposited those checks into his personal individual retirement account.
Mattingly fraudulently deposited more than 500 checks, totaling at least $76,000, written by more than 135 parishioners and made payable to St. Francis or the St. Vincent de Paul Society, and not to Mattingly.
Mattingly and the government have agreed that if the Court accepts the plea agreement he will be sentenced to home detention from six to 18 months. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for July 31, 2017 at 10:00 a.m.
Acting United States Attorney Stephen M. Schenning commended the FBI, St. Mary’s County Sheriff’s Office, and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.
Former North Charleston, South Carolina, Police Officer Michael Slager Pleads Guilty to Federal Civil Rights OffenseRead the Press Release
Former North Charleston, South Carolina, Police Department (NCPD) Officer Michael Slager, 35, pleaded guilty to a federal civil rights offense for his fatal shooting of Walter Scott, Jr. on April 4, 2015.
Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, U.S. Attorney Beth Drake of the District of South Carolina, Special Agent in Charge Alphonse “Jody” Norris of the FBI’s Columbia Division, Solicitor Scarlett A. Wilson of the Ninth Judicial Circuit and Chief Mark Keel of the South Carolina Law Enforcement Division (SLED) announced today’s guilty plea, which took place in the U.S. District Court for the District of South Carolina. The plea will resolve both the federal and the state cases pending against Michael Slager. Prior to entry of the guilty plea, jury selection in the federal trial had been scheduled to begin on May 9, and a state trial had been set for August.
According to documents filed in connection with the guilty plea, Michael Slager, while acting as an NCPD Officer, willfully used deadly force on Walter Scott even though it was objectively unreasonable under the circumstances. Slager had stopped Scott’s vehicle after observing that a brake light was not working. During the stop, Scott fled on foot and Slager pursued him. During the foot chase, Slager deployed his Taser and Scott fell to the ground. Scott managed to get off of the ground and again run away. Scott was unarmed and running away when Scott fired eight shots at him from his department-issued firearm. Five shots hit Scott, with all of the bullets entering from behind. Scott died as a result of the injuries from Slager’s gunshots.
“The Department of Justice will hold accountable any law enforcement officer who violates the civil rights of our citizens by using excessive force,” said Attorney General Sessions. “Such failures of duty not only harm the individual victims of these crimes; they harm our country, by eroding trust in law enforcement and undermining the good work of the vast majority of honorable and honest police officers. As our Department works to support the courageous and professional law enforcement personnel who risk their lives every day to protect us, we will also ensure that police officers who abuse their sacred trust are made to answer for their misconduct.”
“Our hearts are with the Scott family today. They have persevered in their quest for justice for their loved one, and I hope that today brings them a measure of closure,” said U.S. Attorney Drake. “I also want to thank both Solicitor Wilson of the Ninth Judicial Circuit and South Carolina Law Enforcement Division Chief Mark Keel for their efforts to secure justice in this matter.”
“The resolution of this investigation protects the integrity of law enforcement, maintains the confidence of the community, and ensures justice is served in a fair and impartial manner,” said Special Agent in Charge Norris. “The cooperation between the South Carolina Law Enforcement Division, the U.S. Attorney's Office, the Charleston County Solicitor's Office, the Civil Rights Division, and the FBI Columbia Division was paramount in bringing this case to a successful conclusion.”
“This conviction is prime example of the strong results we can get when federal and state authorities work together,” said Solicitor Wilson. “We are grateful for the Department of Justice for their role in obtaining justice for the Scotts with this conviction and in moving our community forward through their hard work.”
“SLED’s role in any criminal investigation is to discover the facts of the case and report them,” said Chief Keel. “For the men and women of SLED, working closely with our partners in the Ninth Circuit Solicitor’s Office, the U.S. Department of Justice, the FBI and the U.S. Attorney’s Office, today’s plea is the culmination of our collaboration.”
“This disposition is the product of the excellent work of state and local law enforcement. I am proud of the leadership of U.S. Attorney Beth Drake and the critical work of the FBI. The teamwork in this case represents the best in law enforcement,” added Attorney General Sessions.
Slager faces a maximum sentence of life in prison for the federal civil rights violation, as well as a potential $250,000 fine. Both federal prosecutors and Solicitor Wilson will have the opportunity to address the Court at sentencing.
The case was investigated by the FBI’s Columbia Division and the South Carolina Law Enforcement Division. The federal case is being prosecuted by Assistant U.S. Attorneys Eric Klumb and Alyssa Richardson of the District of South Carolina and Special Litigation Counsel Jared Fishman and Trial Attorney Rose Gibson of the Civil Rights Division of the Department of Justice. The state case is being prosecuted by Scarlett A. Wilson and the Office of the Solicitor of the Ninth Judicial Circuit.
Former Federal Corrections Officer Pleads Guilty to BriberyRead the Press Release
Jackson, Miss - Former federal corrections officer Julius Pearson, 26, from Madison County, Mississippi, pleaded guilty today before Senior U.S. District Judge William H. Barbour, to bribery, announced Acting U.S. Attorney Harold Brittain.
The investigation revealed that, beginning in approximately August, 2016, Julius Pearson began smuggling tobacco into the Federal Prison in Yazoo County where he was employed as a corrections officer. Pearson was paid approximately ten thousand dollars by inmates and others for delivering the tobacco to inmates inside the facility.
Pearson will be sentenced on August 15, 2017, and faces a maximum penalty of 15 years in prison and a $250,000 fine. The case is being prosecuted by Deputy Criminal Chief Patrick Lemon and was investigated by the Federal Bureau of Investigation and the U.S. Department of Justice, Office of Inspector General.
Florida Man Indicted for Scheme Seeking $5.6 Million in Tax RefundsRead the Press Release
A federal grand jury sitting in West Palm Beach, Florida returned an indictment on April 25, which was unsealed today, charging a Florida resident with corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws, filing false tax returns, theft of government property and money laundering, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, David R. Andre of Boynton Beach, Florida, filed false income tax returns with the Internal Revenue Service (IRS) from 2010 to 2015 that sought more than $5.6 million in fraudulent tax refunds. The indictment further alleges that the IRS paid out approximately $463,920, which was deposited into Andre’s personal bank account. Andre also allegedly attempted to impede the due administration of the internal revenue laws by making false statements to IRS agents during interviews in 2015. According to the indictment, Andre falsely stated to IRS agents that he purchased his residence with inheritance proceeds, when in fact he purchased it with illegal proceeds from the tax refund fraud.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Andre faces a statutory maximum sentence of three years in prison for corruptly endeavoring to impede the due administration of the internal revenue laws, three years in prison for each count of filing a false tax return, 10 years in prison for each count of theft of government property, and 10 years in prison for each money laundering count. Andre also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Daniel McGraw and Charles Edgar Jr. of the Tax Division, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Florida for its substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five-Time Felon Sentenced to 20 Years for Possession of A Firearm and AmmunitionRead the Press Release
LAS VEGAS, Nev. – A five-time felon was sentenced today by United States District Judge Kent J. Dawson to 235 months in prison for possession of a firearm and possession of ammunition, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Following a jury trial in October 2016, Mario Jacob Sapp, 40, of Las Vegas, was found guilty of one count each of felon in possession of a firearm and felon in possession of ammunition. At the time of trial, Sapp had five prior felony convictions, including two prior convictions for being a felon in possession of a firearm, a conviction for battery with a deadly weapon resulting in substantial bodily harm, and a conviction for conspiring to manufacture methamphetamine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Patrick Burns.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Five Additional Defendants Charged in Securities Fraud ConspiracyRead the Press Release
HOUSTON – Five additional individuals have been charged for their role in a $6.8 million securities fraud “pump-and-dump” conspiracy, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned the original indictment Sept. 15, 2016, charging Andrew Ian Farmer, 38, and Thomas Galen Massey, 46, for their roles in a securities fraud scheme involving the stock of Chimera Energy Corp.
A superseding indictment was returned by the grand jury on April 26, 2017, and charges five new individuals for their roles in the Chimera fraud - Eddie Douglas Austin Jr., 66, Carolyn Price Austin, 62, and Charles Earl Grob Jr., 37, all of Houston; John David Brotherton, 57, of League City; and Scott Russell Sieck, 58, of Winter Park, Florida. All five new defendants are charged with one count of conspiracy to commit wire fraud and nine counts of wire fraud.
Brotherton and Grob made their initial appearances this afternoon, at which time the indictment was unsealed. Carolyn Austin and Eddie Austin are expected to make their appearances in federal court before U.S. Magistrate Judge Frances Stacy at 2:00 p.m. Thursday, May 4, while Sieck is expected to appear in Houston sometime next week.
In a typical “pump-and-dump” fraud scheme, the perpetrators publish false and misleading information about a company in order to fraudulently inflate the price of the stock. The perpetrators then sell the stock to unwitting investors at the inflated prices.
According to the charges in this case, the conspiracy involved a scheme to defraud investors in Chimera Energy Corp. by publishing false and misleading information about the company. In the conspiracy, the defendants allegedly published press releases, public filings and public advertisements that falsely claimed Chimera had licensed a new technology called “Non-Hydraulic Extraction,” which purported to be a new method of extracting oil by fracturing without using water. The defendants also published false press releases claiming that they had a business relationship with Petroleos Mexicanos, aka PEMEX, the government-owned oil producing company of Mexico, according to the charges. As a result of the false claims, the defendants allegedly defrauded investors that purchased shares of Chimera Energy Corp. out of a total of approximately $6.8 million.
Conspiracy to commit wire fraud and wire fraud each carry a possible term of imprisonment of up to 20 years in federal prison and a possible 250,000 fine.
Massey pleaded guilty to his role on April 18, 2017, and is set for sentencing June 26, 2017. The remaining defendants are presumed innocent unless convicted through due process of law.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and Financial Industry Regulatory Authority. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Felon from Carlsbad Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Miguel Molina, 36, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 37 months in prison for unlawfully possessing a firearm and ammunition. Molina will be on supervised release for three years after completing his prison sentence.
Molina was arrested in July 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on May 6, 2015, in Eddy County, N.M. According to the indictment, Molina was prohibited from possessing firearms or ammunition because of his prior conviction for distributing marijuana.
On Nov. 17, 2016, Molina entered a guilty plea to the indictment without the benefit of a plea agreement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Dustin C. Segovia of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Federal Jury Convicts Imperial Beach Man in Fatal Stabbing of his Texas BoyfriendRead the Press Release
Assistant U. S. Attorneys Alexandra Foster (619) 546-6735 and Robert Ciaffa (619) 546-7748
NEWS RELEASE SUMMARY – May 2, 2017
SAN DIEGO – On the second anniversary of his victim’s death, David Enrique Meza of Imperial Beach was convicted by a federal jury this morning of fatally stabbing his boyfriend 24 times, slashing his throat twice and dumping his body in a ravine near Rosarito Beach, Mexico in order to inherit the boyfriend’s estate.
After two weeks of trial and seven days of deliberations, the jury found Meza guilty of murdering Texas retiree Jake Clyde Merendino in the early morning hours of May 2, 2015 in Mexico. Merendino’s body was found next to the highway between Rosarito and Ensenada in an area known as Los Arenales.
Meza was convicted of both charges, including one count of Interstate or Foreign Domestic Violence Resulting in Murder and one count of Conspiracy to Obstruct Justice. U.S. District Judge Jeffrey T. Miller, who presided over the trial, set sentencing for August 7, 2017 at 9 a.m.
“David Meza took the life of a man who cared for him, lavished him with expensive gifts and who wanted to create a life with him,” said Acting U.S. Attorney Alana W. Robinson. “On this day, the second anniversary of Jake Merendino’s death, we salute the jury for delivering justice to a greedy killer who will now have to answer for his cruelty.”
“The greed, lies, and brutality of this crime were stark,” said FBI Special Agent in Charge Eric S. Birnbaum. “Every day, the FBI works tirelessly, utilizing all resources, expertise and lawful methods to find justice for victims of crime. Today’s guilty verdict brings a measure of justice for Jake Merendino.”
According to evidence presented at trial, Meza, then 23, and Merendino, then 49, met online in June 2013 and were involved in a romantic relationship thereafter. At the same time, Meza was also involved in a long-term romantic relationship with Taylor Marie Langston, a Chula Vista High graduate who was pregnant with his child at the time of the murder. Prosecutors said Meza was living a double life.
Merendino’s death came two days after he closed escrow on a luxury oceanfront condominium at Palacio del Mar in Rosarito. Meza was the beneficiary. Within days of the murder, Meza produced a handwritten will written on hotel stationery that made him sole heir to Merendino’s estate.
Langston was also charged in the indictment, returned by a grand jury in December 2015. She pleaded guilty in February to obstruction of justice for her role in the cover-up. She admitted that she and Meza agreed to lie to law enforcement agents about her and Meza’s whereabouts on the night of the murder.
According to evidence presented at trial, Meza and Merendino drove to Mexico on April 30, 2015, so Merendino could close on his $273,000 ocean-view condominium at Palacio Del Mar in Rosarito
The next day, on May 1, Meza and Merendino returned to Baja, this time with Merendino driving his Range Rover and Meza following on a motorcycle (a 2014 Christmas gift from the victim). The new condo was not yet ready for occupancy, so they checked in to a room at Bobby’s by the Sea, a hotel nearby.
Meza went down to the lobby between 7 p.m. and 8 p.m. to open a bottle of wine. Then, at about 10:30 p.m., the hotel manager heard a motorcycle leaving the hotel parking lot, and Meza was captured on a border camera entering the U.S. at about 11 p.m.
Merendino was last seen alive in the early morning hours of May 2, when he drove out of Bobby’s by the Sea parking lot, telling the hotel security guard that he needed to help a friend stranded on the road. His body was found at around 3 a.m. by Mexican police officers. At 3:57 a.m. Meza crossed into the United States on his motorcycle; Langston crossed 25 minutes later, at 4:22 a.m. in a black SUV.
At 7 p.m. the same day as the murder, Meza and Langston returned to the Bobby’s by the Sea hotel in the black SUV. Meza told hotel staff he was there to pick up his personal items from the room he had shared with Merendino.
After the slaying, one of the victim’s friends filed probate paperwork for a will Merendino drew up in 1998 in Galveston, Texas. A few days later, Meza, through his lawyers, contested the 1998 will and filed the handwritten will on letterhead from the Hercor Hotel in Chula Vista, which he claimed was executed by Merendino in December of 2014, and left Meza “everything.”
Acting U.S. Attorney Robinson thanked law enforcement counterparts from Procuraduría General de Justicia del Estado - the Attorney General’s office in the state of Baja California - for their assistance in the investigation and prosecution of these crimes.
She also noted that in certain circumstances, the United States has legal jurisdiction to prosecute crimes committed in other countries when U.S. citizens are victimized. “The United States will use every tool at its disposal to investigate and prosecute offenders who prey on U.S. citizens abroad.”
DEFENDANT Case Number: 15CR3175-JM
David Enrique Meza Age: 25
SUMMARY OF CHARGES
Count One
Interstate or Foreign Domestic Violence Resulting in Murder, in violation of Title 18 United States Code, Section 2261 (a) (1).
Maximum Penalty: Life in prison
Count Two
Conspiracy to Obstruct Justice, in violation of Title 18, United States Code, Section 1512 (k).
Maximum Penalty: 20 years’ imprisonment
AGENCY
Federal Bureau of Investigation
Federal Grand Jury in Oakland Charges Eight Defendants in Sixty-Four Count Indictment Alleging Interstate Gun Trafficking SchemeRead the Press Release
OAKLAND – A 64-count second superseding indictment was unsealed today charging eight defendants for their respective roles in an interstate firearms trafficking conspiracy announced United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. Two of the defendants were also charged with conspiracy to commit robbery affecting interstate commerce, and the use of firearms in furtherance of a crime of violence. Additionally, one defendant was charged with drug trafficking crimes.
The defendants are Oakland residents Andre Martel Winn, 31, and Edgar De La Cruz, 19; Reno, Nev. residents Richard Straight, 27, Jenna Jeanne Allec, 26, Jonathan Salevao, 28, and Kaleka Mile Kam, 23; Elko, Nev. resident Kenneth Lee Kemp, 32; and Sparks, Nev. resident Daniel Taylor Taufi, 24. According to the indictment, all eight defendants conspired to engage in a scheme to purchase dozens of firearms in Nevada and have them transported to and sold in California. The indictment alleges that Allec, Kemp, Kam, and Taufi purchased the firearms from licensed Nevada salespersons and then negotiated with Salevao and Straight to sell the arms to Winn and De La Cruz. Further, according to the indictment, Winn and De La Cruz traveled from Oakland to Reno to retrieve the firearms. Winn and De La Cruz then transported the firearms to the San Francisco Bay Area where they were sold, mostly in exchange for cash or drugs. A number of the firearms trafficked during the conspiracy have been recovered in Oakland and elsewhere in the Bay Area by local police officers in the course of law enforcement operations. The indictment further alleges Winn and Straight were prohibited from possessing or receiving firearms in light of previous criminal convictions. Listed in the indictment is an array of transactions from March of 2015 through October of 2016 by which dozens of firearms allegedly were illegally purchased, transported, and sold in violation of federal firearms laws.
Moreover, in addition to the firearms charges, the indictment charges De La Cruz with possession with the intent to distribute cocaine and marijuana, and charges both De La Cruz and Winn with robbery affecting interstate commerce and conspiracy to commit robbery affecting interstate commerce, and brandishing firearms during the robbery. The indictment alleges that Winn and De La Cruz brandished firearms during an armed heist at a gas station on High Street in Oakland in 2015.
“The indictment unveiled today is the result of hard work and coordination by the Bureau of Alcohol, Tobacco, Firearms and Explosives and local law enforcement agencies across California and Nevada,” said U.S Attorney Stretch. “We appreciate the efforts of the many law enforcement officials whose selfless dedication has brought an end to this gun running scheme. The removal from our neighborhoods of illegal firearms will remain a priority of this office.”
“One of the missions of the Bureau of Alcohol, Tobacco, Firearms and Explosives or ATF is to protect our communities from the illegal use and trafficking of firearms,” said Special Agent in Charge Jill Snyder. “ATF's Crime Gun Intelligence Center or CGIC identifies firearms trafficking trends and patterns. As with this case, ATF is then able to utilize that information and take action to prevent firearms from going into the hands of prohibited and potentially dangerous people. ATF would like to thank the San Leandro Police Department, Oakland Police Department, Reno Police Department, Sparks Police and the U.S. Attorneys Office. It's through partnerships that law enforcement agencies across the board are able to continue to make our neighborhoods a safer place daily.”
In sum, the defendants have been charged with the following crimes and face the following maximum statutory sentences:
Defendant
Charge
Statute
Maximum Sentence
(Each Count)
Andre Martel Winn
Conspiracy to Commit Robbery (Interference with Commerce by Robbery
18 U.S.C. § 1951(a)
20 years in prison
$250,000 fine
3 years supervised release
Robbery (Interference with Commerce by Robbery), and Aiding and Abetting
18 U.S.C. §§ 195l(a) and 2
20 years in prison
$250,000 fine
3 years supervised release
Possessing/Brandishing a Firearm in Furtherance of a Crime of Violence, and Aiding and Abetting
18 U.S.C. §§ 924(c)(l)(A)
and 2
Life in prison
(7 years mandatory minimum, consecutive to sentence imposed on any other count
$250,000 fine
5 years supervised release
Felon in Possession of a Firearm
18 U.S.C. § 922(g)(l)
10 years in prison
$250,000 fine
3 years supervised release
Conspiracy to Deal in Firearms Without a License
18 U.S.C. § 371
5 years in prison
$250,000 fine
3 years supervised release
Dealing in Firearms Without a License
(54 counts)
18 U.S.C. §§ 922(a)(l)(A)
and 2
5 years in prison
$250,000 fine
3 years supervised release
Traveling Interstate to Promote Illegal Firearms Trafficking
(two counts)
8 U.S.C. §§ 924(n) and 2
10 years in prison
$250,000 fine
3 years supervised release
Edgar De La Cruz
Conspiracy to Commit Robbery (Interference with Commerce by Robbery
18 U.S.C. § 1951(a)
20 years in prison
$250,000 fine
3 years supervised release
Robbery (Interference with Commerce by Robbery), and Aiding and Abetting
18 U.S.C. §§ 195l(a) and 2
20 years in prison
$250,000 fine
3 years supervised release
Possessing/
Brandishing a Firearm in Furtherance of a Crime of Violence, and Aiding and Abetting
8 U.S.C. §§ 924(c)(l)(A)
and 2
Life in prison
(7 years mandatory minimum, consecutive to sentence imposed on any other count)
$250,000 fine
5 years supervised release
Possession with Intent to Distribute Cocaine
(two counts)
21 U.S.C. §§ 84l(a)(l) and (b)(l)(C)
20 years in prison
$1 million fine
Supervised release for life
Possession with Intent to Distribute Marijuana
21 U.S.C. §§ 84l(a)(l) and (b)(l)(D)
20 years in prison
$250,000 fine
Supervised release for life
Conspiracy to Deal in Firearms Without a License
18 U.S.C. § 371
5 years in prison
$250,000 fine
3 years supervised release
Dealing in Firearms Without a License
(54 counts)
18 U.S.C. §§ 922(a)(l)(A)
and 2
5 years in prison
$250,000 fine
3 years supervised release
Traveling Interstate to Promote Illegal Firearms Trafficking
(two counts)
8 U.S.C.
§§ 924(n) and 2
10 years in prison
$250,000 fine
3 years supervised release
Richard Straight
Conspiracy to Deal in Firearms Without a License
18 U.S.C. § 371
5 years in prison
$250,000 fine
3 years supervised release
Dealing in Firearms Without a License
(39 counts)
18 U.S.C.
§§ 922(a)(l)(A)
and 2
5 years in prison
$250,000 fine
3 years supervised release
Traveling Interstate to Promote Illegal Firearms Trafficking
8 U.S.C. §§ 924(n) and 2
10 years in prison
$250,000 fine
3 years supervised release
Jenna Leanne Allec
Conspiracy to Deal in Firearms Without a License
18 U.S.C. § 371
5 years in prison
$250,000 fine
3 years supervised release
Dealing in Firearms Without a License
(18 counts)
18 U.S.C.
§§ 922(a)(l)(A)
and 2
5 years in prison
$250,000 fine
3 years supervised release
Kenneth Lee Kemp
Conspiracy to Deal in Firearms Without a License
18 U.S.C. § 371
5 years in prison
$250,000 fine
3 years supervised release
Dealing in Firearms Without a License
(21 counts)
18 U.S.C.
§§ 922(a)(l)(A)
and 2
5 years in prison
$250,000 fine
3 years supervised release
Jonathan Salevao
Conspiracy to Deal in Firearms Without a License
18 U.S.C. § 371
5 years in prison
$250,000 fine
3 years supervised release
Dealing in Firearms Without a License
(15 counts)
18 U.S.C.
§§ 922(a)(l)(A)
and 2
5 years in prison
$250,000 fine
3 years supervised release
Traveling Interstate to Promote Illegal Firearms Trafficking
8 U.S.C.
§§ 924(n) and 2
10 years in prison
$250,000 fine
3 years supervised release
Kaleka Mile Kam
Conspiracy to Deal in Firearms Without a License
18 U.S.C. § 371
5 years in prison
$250,000 fine
3 years supervised release
Dealing in Firearms Without a License
(six counts)
18 U.S.C.
§§ 922(a)(l)(A)
and 2
5 years in prison
$250,000 fine
3 years supervised release
Daniel Taylor Taufi
Conspiracy to Deal in Firearms Without a License
18 U.S.C. § 371
5 years in prison
$250,000 fine
3 years supervised release
Dealing in Firearms Without a License
(nine counts)
18 U.S.C.
§§ 922(a)(l)(A)
and 2
5 years in prison
$250,000 fine
3 years supervised release
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. Additional fines, forfeitures, and special assessments also could be imposed. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Six of the eight defendants are currently in law enforcement custody in various jurisdictions, including in the custody of the United States Marshals Service. Winn, De La Cruz, Allec, and Kam are scheduled to appear May 8, 2017, 9:30 am before U.S. Magistrate Judge Vadas in Oakland for arraignment on the second superseding indictment. The remaining defendants are scheduled to appear tomorrow in Reno to be arraigned.
The prosecution is the result of an investigation by the ATF Crime Gun Intelligence Center, San Francisco Field Division (SFFD). The U.S. Attorney for the Northern District of California thanks the Reno Office of the U.S. Attorney’s Office for the District of Nevada for its assistance.
Fayetteville Man Sentenced for Drug and Firearm OffensesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Chief United States District Judge James C. Dever, III, sentenced DARIUS JEROME BRADLEY, 28, of Fayetteville, NC to 204 months of imprisonment followed by 5 years of supervised release.
BRADLEY was named in a three-count Indictment filed on August 2, 2016. On October 25, 2016, BRADLEY pled guilty to possession with intent to distribute a quantity of marijuana and possession of a firearm in furtherance of a drug trafficking crime.
On January 10, 2016, officers with the Fayetteville Police Department (FPD) responded to an anonymous call from a concerned citizen regarding individuals smoking marijuana. When officers arrived at the scene and approached the vehicle, they noticed the strong smell of marijuana and observed BRADLEY exit the driver’s side. Upon searching the vehicle, officers seized 10 grams of marijuana, a loaded .380 caliber handgun, a digital scale, and a box of plastic bags used for distribution. BRADLEY was arrested, but subsequently released on bond on January 11, 2016.
On February 3, 2016, FPD officers again responded to a citizen’s complaint of suspected drug activity from a vehicle in a residential section of Fayetteville. Officer initiated blue lights and siren for a car matching the description given. Eventually BRADLEY stopped the car that he was driving, but remained in the driver’s seat. Officers approached the car. BRADLEY then started the vehicle, put the car in reverse, and began backing up at a high rate of speed. One of the officers was forced to jump out of the way to avoid being struck by BRADLEY’s vehicle. BRADLEY crashed his vehicle into a nearby tree. When the defendant exited the vehicle, a struggle ensued until he was apprehended. BRADLEY was found in possession of cocaine and of cocaine base. There were two other adults and one juvenile in BRADLEY’s car. Upon searching the vehicle, officers seized 12 grams of marijuana from the driver’s floorboard.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The Fayetteville Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Eight Members and Associates of Violent Narcotics Trafficking Organization Charged in Manhattan Federal Court with Six Murders and Racketeering OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Adolphus P. Wright, the Special Agent in Charge of the Miami Field Division of the Drug Enforcement Administration (“DEA”), James J. Hunt, the Special Agent in Charge of the New York Field Division of the DEA, Peter Forcelli, Special Agent in Charge of the Miami Field Division and Puerto Rico Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and George P. Beach II, the Superintendent of the New York State Police (“NYSP”), announced the unsealing today of an Indictment charging eight members and associates of La Organizacion de Narcotraficantes Unidos (“La ONU”) with various racketeering, drug trafficking, and firearms offenses, including six murders.
Five of the defendants are already in custody for other offenses. The remaining three defendants – OSCAR VALDES-GARCIA, a/k/a “Pony,” WILLIAM VASQUEZ-BAEZ, and RALPH LABOY – will be presented today in the District of Puerto Rico before U.S. Magistrate Judge Silvia Carreno-Coll. VASQUEZ-BAEZ was an active member of the Puerto Rico Police Department when he allegedly committed the May 9, 2007, murder of Anthony Castro-Carrillo, as charged in Counts 13 and 14 of the Indictment. LABOY had recently resigned from the Puerto Rico Police Department when he allegedly committed the Castro-Carillo murder. The case has been assigned to United States District Judge Jesse M. Furman in Manhattan.
All eight defendants are charged with murder. In connection with the racketeering conspiracy and a narcotics conspiracy, members and associates of La ONU are charged in the Indictment with committing the following murders in Puerto Rico:
- The April 9, 2005, murder of Crystal Martinez-Ramirez.
- The June 23, 2006, double murder of Ken Gonzalez-Rodriguez and Jean Adorno-Caballero.
- The December 28, 2006, murder of Israel Crespo-Cotto.
- The May 9, 2007, murder of Anthony Castro-Carrillo.
- The March 20, 2009, murder of Carlos Barbosa.
Acting U.S. Attorney Joon H. Kim said: “Members and associates of a violent drug trafficking organization, La ONU, allegedly committed six ruthless murders to further a drug trade that funneled massive quantities of cocaine from Puerto Rico to New York. Frighteningly, one of those six murders allegedly was committed by an active and a former member of the Puerto Rico Police Department. As alleged, when police officers, sworn to protect the citizens they serve, instead kill to protect drug trafficking profits, that tears at the very fabric of civilized society. Such alleged lawlessness simply cannot be left unchecked. We thank all of our federal and local law enforcement partners for their tireless investigative work to bring these defendants to justice in a court of law.”
USPIS Inspector in Charge Philip R. Bartlett said: “This criminal enterprise stopped at nothing to allegedly move drugs from Puerto Rico to the Bronx; it was all about money. They didn’t care who or what got in their way, and based on the indictment, they ‘got rid’ of their perceived obstacles. Fortunately, members of this criminal enterprise underestimated the power of interagency cooperation and collaboration. These individuals will be brought to justice for their alleged heinous crimes against the community and the misuse of the US Mail to facilitate the transport of illegal drugs into the United States.”
DEA Special Agent in Charge Adolphus P. Wright said: “Through this collaborative effort with our law enforcement partners, drug traffickers committing not only drug violations, but also other equally egregious and violent crimes, have been taken off the streets. We remain committed to pursuing their prosecution to the fullest extent of the law.”
DEA Special Agent in Charge James J. Hunt said: “A 2013 investigation grew legs into something much more dangerous than a local drug distribution organization operating out of a daycare center in the Bronx. It led investigators to identifying the organization’s alleged source of supply comprising corrupt cops and violent thugs who were arrested today in Puerto Rico. This is a great example of collaborative law enforcement efforts.”
ATF Special Agent in Charge Peter Forcelli said: “For years, ATF has made combatting violent crime its top priority and this case is a perfect example of our commitment to making our communities safer. We will work tirelessly with our state, local, and federal partners to identify, investigate, and prosecute those who use or traffic in illegal firearms, regardless of where they engage in criminal activity. This case is a clear example of interagency teamwork and collaboration across several jurisdictions and I’m proud of the work that was done here.”
Superintendent George P. Beach II said: “This investigation is yet another example of law enforcement partners working collaboratively to get dangerous individuals and drugs off our streets. The expertise and dedication of our law enforcement colleagues charges eight individuals in multiple murders in Puerto Rico. Two of the individuals were police officers, trusted with enforcing the law, and were instead breaking it and causing terror in communities. I thank all of our law enforcement partners for their hard work, professionalism and commitment to making our neighborhoods safer.”
As alleged in the Indictment[1] unsealed today in Manhattan federal court and in other court papers:
La ONU was a criminal enterprise involved in the trafficking of cocaine from Puerto Rico to the Bronx, New York. The cocaine was distributed in New York, including out of a daycare center in the Bronx, New York. Members and associates of La ONU engaged in acts of violence, including murder, to protect and expand the enterprise’s criminal operations and in connection with rivalries with other criminal organizations. In particular, members of the enterprise shot and killed suspected rival drug trafficking members.
Count One of the Indictment charges JULIO MARQUEZ ALEJANDRO, a/k/a “Chino Montero,” LUIS BLONDET, a/k/a “Cabezon,” OSCAR VALDES-GARCIA, a/k/a “Pony,” JASON DONES-GONZALEZ, a/k/a “Jason,” a/k/a “Arrabal,” JOSE VICTOR PELLOT CARDONA, a/k/a “Vitito,” and REINALDO CRUZ-FERNANDEZ with participating in a racketeering conspiracy for criminal involvement in La ONU.
Counts Two and Three of the Indictment charge LUIS BLONDET with the murder of Crystal Martinez-Ramirez in aid of racketeering, and a related firearms offense.
Counts Four, Five, and Six of the Indictment charge JULIO MARQUEZ ALEJANDRO and OSCAR VALDES-GARCIA with the murder of Jean Adorno-Caballero in aid of racketeering and in connection with a drug crime, as well as a related firearms offense.
Counts Seven, Eight, and Nine of the Indictment charge JULIO MARQUEZ ALEJANDRO and OSCAR VALDES-GARCIA with the murder of Ken Gonzalez-Rodriguez in aid of racketeering and in connection with a drug crime, as well as a related firearms offense.
Counts 10, 11, and 12 of the Indictment charge JULIO MARQUEZ ALEJANDRO and OSCAR VALDES-GARCIA with the murder of Israel Crespo-Cotto in aid of racketeering and in connection with a drug crime, as well as a related firearms offense.
Counts 13 and 14 of the Indictment charge RALPH LABOY and WILLIAM VASQUEZ-BAEZ with the murder of Anthony Castro-Carrillo in connection with a drug crime, as well as a related firearms offense.
Counts 15, 16, and 17 of the Indictment charge JULIO MARQUEZ-ALEJANDRO, JASON DONES-GONZALEZ, JOSE VICTOR PELLOT-CARDONA, and REINALDO CRUZ-FERNANDEZ with the murder of Carlos Barbosa in aid of racketeering and in connection with a drug crime, as well as a related firearms offense.
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Charts containing the names, ages, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case 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 outstanding investigative work of USPIS, the DEA, the ATF, and the NYPD. He also thanked the United States Attorney’s Office for the District of Puerto Rico, U.S. Attorney’s Office for the Middle District of Pennsylvania, the Office of the Special Narcotics Prosecutor for the City of New York, and the Puerto Rico Police Department for their support in this ongoing investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Jordan Estes, Dina McLeod, Andrew Thomas, and Lara Pomerantz are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
JULIO MARQUEZ-ALEJANDRO (age 47)
LUIS BLONDET (age 42)
OSCAR VALDES-GARCIA (age 35)
JASON DONES-GONZALEZ (age 37)
JOSE VICTOR PELLOT-CARDONA (age 38)
REINALDO CRUZ-FERNANDEZ (age 43)
Life in prison
2
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
LUIS BLONDET
Death penalty, or life in prison
3
Use of a firearm for murder
18 U.S.C. § 924(j)(1)
LUIS BLONDET
Death penalty, or life in prison
4
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
JULIO MARQUEZ-ALEJANDRO
OSCAR VALDES-GARCIA
Death penalty, or life in prison
5
Murder in connection with a drug crime
21 U.S.C. § 848(e)(1)(A)
JULIO MARQUEZ-ALEJANDRO
OSCAR VALDES-GARCIA
Death penalty, or life in prison
6
Use of a firearm for murder
18 U.S.C. § 924(j)(1)
JULIO MARQUEZ-ALEJANDRO
OSCAR VALDES-GARCIA
Death penalty, or life in prison
7
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
JULIO MARQUEZ-ALEJANDRO
OSCAR VALDES-GARCIA
Death penalty, or life in prison
8
Murder in connection with a drug crime
21 U.S.C. § 848(e)(1)(A)
JULIO MARQUEZ-ALEJANDRO
OSCAR VALDES-GARCIA
Death penalty, or life in prison
9
Use of a firearm for murder
18 U.S.C. § 924(j)(1)
JULIO MARQUEZ-ALEJANDRO
OSCAR VALDES-GARCIA
Death penalty, or life in prison
10
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
JULIO MARQUEZ-ALEJANDRO
OSCAR VALDES-GARCIA
Death penalty, or life in prison
11
Murder in connection with a drug crime
21 U.S.C. § 848(e)(1)(A)
JULIO MARQUEZ-ALEJANDRO
OSCAR VALDES-GARCIA
Death penalty, or life in prison
12
Use of a firearm for murder
18 U.S.C. § 924(j)(1)
JULIO MARQUEZ-ALEJANDRO
OSCAR VALDES-GARCIA
Death penalty, or life in prison
13
Murder in connection with a drug crime
21 U.S.C. § 848(e)(1)(A)
RALPH LABOY (age 36)
WILLIAM VASQUEZ-BAEZ (age 48)
Death penalty, or life in prison
14
Use of a firearm for murder
18 U.S.C. § 924(j)(1)
RALPH LABOY
WILLIAM VASQUEZ-BAEZ
Death penalty, or life in prison
15
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
JULIO MARQUEZ-ALEJANDRO
JASON DONES-GONZALEZ
REINALDO CRUZ-FERNANDEZ
JOSE VICTOR PELLOT-CARDONA
Death penalty, or life in prison
16
Murder in connection with a drug crime
21 U.S.C. § 848(e)(1)(A)
JULIO MARQUEZ-ALEJANDRO
JASON DONES-GONZALEZ
REINALDO CRUZ-FERNANDEZ
JOSE VICTOR PELLOT-CARDONA
Death penalty, or life in prison
17
Use of a firearm for murder
18 U.S.C. § 924(j)(1)
JULIO MARQUEZ-ALEJANDRO
JASON DONES-GONZALEZ
REINALDO CRUZ-FERNANDEZ
JOSE VICTOR PELLOT-CARDONA
Death penalty, or life in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Executive Director of New York City Non-Profit Organization and His Wife Found Guilty in Manhattan Federal Court of Corruption OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that KWAME INSAIDOO, the former executive director of United Block Association (“UBA”), a New York-based non-profit organization, and his wife ROXANNA INSAIDOO, were found guilty in Manhattan federal court of embezzlement from a federally funded program, money laundering, and defrauding their mortgage lender. KWAME INSAIDOO was also found guilty of defrauding the City of New York in connection with UBA’s contracts to operate senior centers in Upper Manhattan. The jury convicted KWAME and ROXANNA INSAIDOO on all counts in the superseding indictment following a one-week trial before U.S. District Judge Valerie E. Caproni.
Acting U.S. Attorney Joon H. Kim said: “As a unanimous jury found today, Kwame Insaidoo and his wife Roxanna Insaidoo stole hundreds of thousands of dollars from a government-funded non-profit organization that operated senior centers in Manhattan, and used that money to pay for luxury cars and personal expenses. The defendants’ brazen theft deprived some of the City’s neediest residents of public money for healthy meals and senior citizen programs. Despite efforts to hide their schemes, including the use of a fake charity, the outstanding investigative work of our partners at the New York City Department of Investigation exposed the defendants’ conduct, and the jury swiftly convicted them.”
According to the Indictment, other filings in Manhattan federal court, and the evidence admitted at trial:
UBA is a non-profit organization headquartered in New York, New York, that was controlled by KWAME INSAIDOO, its former Executive Director. UBA received funding from New York City’s Department for the Aging to operate and provide healthy meals and programming at four senior centers in Upper Manhattan. From in or about July 2008 through March 2015, the Department for the Aging paid UBA more than $8,700,000 in federal, state, and local funds to provide such services.
As found by the jury, KWAME INSAIDOO, with the assistance of his wife ROXANNA INSAIDOO, abused his authority as UBA’s executive director by embezzling over $580,000 from UBA. KWAME INSAIDOO and ROXANNA INSAIDOO, who were both signatories on a UBA bank account that was not subject to audits by the City, wrote hundreds of checks from that UBA account to themselves, their son, and a fake charity they used to launder some of the money. The defendants used the stolen funds to pay for personal expenses, including their home mortgage, the purchase of a Mercedes Benz and a Cadillac, and telephone bills and other personal utilities. They also wired more than $300,000 abroad.
In addition, KWAME INSAIDOO repeatedly lied to the Department for the Aging in an effort to evade scrutiny for these unauthorized payments and to maintain UBA’s funding.
In 2011, KWAME and ROXANNA INSAIDOO also engaged in a scheme to defraud their mortgage lender, in connection with a modification of their mortgage under the federally sponsored Home Affordable Modification Program, by underreporting their income and assets. This scheme led to a write-off of almost $200,000 from KWAME and ROXANNA INSAIDO’s home mortgage.
* * *
KWAME INSAIDOO, 60, and ROXANNA INSAIDOO, 63, both of Bay Shore, Long Island, were each found guilty of embezzlement from a federally funded program, conspiracy to commit money laundering, wire fraud of their mortgage lender, and conspiracy to commit wire fraud of their mortgage lender, each of which carries a maximum penalty of 20 years in prison, and also each was found guilty of conspiracy to embezzle from a federally funded program, which carries a maximum penalty of five years in prison. KWAME INSAIDOO was also found guilty of one count of defrauding the City of New York, which carries a maximum penalty of 20 years in prison. Their sentencings are set for August 11, 2017, before the Honorable Valerie E. Caproni.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Acting U.S. Attorney Kim praised the outstanding investigative work of the New York City Department of Investigation and the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark, David Zhou, and Tatiana Martins are in charge of the prosecution.
Dr. Jian Dong Sentenced to Seventy Months for Grant FraudRead the Press Release
Contact Person: Eric Klumb (843) 727-4381
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Dr. Jian Yun Dong, aka John Dong, was sentenced to seventy months imprisonment for multiple fraud-based convictions and ordered to pay over three million dollars in restitution. GenPhar Inc. and Vaxima Inc, corporations Dong founded, were fined a total of $12,846,399.32. Dr. Dong, GenPhar Inc., and Vaxima Inc. went to trial in federal court in June of 2015. All three were convicted on charges of conspiracy to commit grant fraud, wire fraud, theft of government property and providing false statements, theft of government funds, as well as twenty-two counts of wire fraud.
Testimony at trial established that federal grant money was obtained by GenPhar and Vaxima for purposes of biodefense research and vaccine development, but was used for other purposes, specifically to construct a commercial office building and pay lobbyists and others who were seeking to secure federal funding for the defendants. Testimony further established that a total of approximately $6 million dollars was spent on the construction, which included approximately at least $3 million dollars of improperly diverted grant money.
"Justice is finally served against Dr. John Dong and his companies with these sentences," stated Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service (DCIS), Southeast Field Office. "Throughout this lengthy and extensive joint investigation with our law enforcement partners, DCIS steadfastly pursued recoupment of millions of dollars in stolen and diverted funds that were critically needed for research and development of vaccines against the world's most deadly diseases."
“Diverting funds meant for critical vaccine research is reprehensible and illegal,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) in Atlanta. “We will continue to work with our law enforcement partners to root out all forms of waste, fraud, and abuse in federal grant programs."
Ms. Drake stated, “The real tragedy in this case is that millions of dollars intended for desperately needed vaccine research was diverted into a commercial real estate project. Most of the dedicated and accomplished scientists receiving these grants can be trusted to spend the funds on research, but those that seek to divert the funds to their own benefit need to know that we will pursue charges against them like any other fraudster.”
The conviction and sentence are the result of an investigation conducted by the Department of Health and Human Services Office of Inspector General, the Defense Criminal Investigative Service, the Federal Bureau of Investigation, the U.S. Army Criminal Investigation Command, and the Naval Criminal Investigative Service. Assistant United States Attorneys Eric Klumb and Nathan Williams of the Charleston office prosecuted the case.
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District Woman Sentenced to 12 Years in Prison for Attacking Ex-Boyfriend with Knife, Sulfuric AcidRead the Press Release
WASHINGTON – Linda Washington, 53, of Washington, D.C., was sentenced today to 12 years in prison in connection with a pair of attacks she carried out last summer against her ex-boyfriend, including one with a knife and one with sulfuric acid, announced U.S. Attorney Channing D. Phillips.
Washington pled guilty in March 2017, in the Superior Court of the District of Columbia, to one count of assault with a dangerous weapon (knife) and one count of aggravated assault while armed (chemical substance). She was sentenced by the Honorable Marisa Demeo. Following her prison term, she will be placed on five years of supervised release.
According to the government’s evidence, late in the evening on July 24, 2016, Washington drove to the Northeast Washington home of her ex-boyfriend to retrieve hedge trimmers that she had loaned him. During a verbal confrontation in the alley behind his home, Washington pulled out a butcher’s knife and ran toward the victim with it. In fear, the victim ran away and jumped over a side fence into his neighbor’s yard. Washington then entered the victim’s house, where the victim’s daughter was sleeping, and took his house keys. She left with the knife. The victim’s home security camera captured the incident.
Early on September 1, 2016, Washington again approached her ex-boyfriend, this time in a parking lot outside Washington’s residence in Southeast Washington. As he attempted to enter his vehicle, Washington threw a plastic cup full of El Diablo drain cleaner on him, covering his face, neck, chest, and arm. An FBI chemist determined that the bulk of the liquid contained sulfuric acid. The victim suffered devastating injuries—including lifelong disfigurement—and spent nearly a month at The Burn Center at MedStar Washington Hospital Center.
Judge Demeo sentenced Washington to two years of incarceration for the July 24th knife attack, and a consecutive ten years for the September 1st sulfuric acid attack.
In announcing the sentence, U.S. Attorney Phillips praised the work of those who investigated the case from the Metropolitan Police Department. He expressed appreciation for the assistance provided by the FBI Laboratory and The Burn Center at Medstar Washington Hospital Center. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Elsa Maltese, and Paralegal Specialists Tiffany Jones and D’Yvonne Key. Finally, he commended the work of Assistant U.S. Attorneys John Timmer and J. Matt Williams, who prosecuted the case.
Detroit Resident Pleads Guilty to Illegally Acquiring a FirearmRead the Press Release
A 30-year-old Detroit man pleaded guilty today to a charge of buying a firearm through a straw purchaser, Acting United States Attorney Daniel L. Lemisch announced today.
Lemisch was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Sebastian Gregerson pleaded guilty before United States District Judge Arthur J. Tarnow in Detroit.
According to court records, on February 16, 2014, defendant Gregerson purchased a Glock 31 .357 caliber gun through a straw purchaser in Virginia. The defendant accompanied another individual to a gun show in Virginia where the individual purchased the gun for Gregerson. Gregerson gave cash to the individual to make the gun purchase and identified the gun he wanted the individual to purchase. At the time of the transaction, the individual completed a federal firearms form indicating that he was the buyer of the gun, when, in fact, Gregerson was the actual buyer. Gregerson was present during the transaction and took possession of the gun after the purchase. The gun was recovered from defendant Gregerson’s residence at the time of his arrest in July, 2016.
Defendant Gregerson previously pled guilty, on March 17, 2017, to possession of unregistered destructive devices based on his purchase, through an FBI employee acting in an undercover capacity (UCE), of grenade bodies containing high explosives, as well as grenade fuses. Those components constituted a combination of parts that were designed or intended for use in M67 fragmentation grenades and from which M67 fragmentation grenades could be readily assembled. The destructive devices were not registered to defendant Gregerson in the National Firearms Registration and Transfer Record.
According to the court records, Gregerson’s social media site, as well as conversations with an undercover FBI employee, indicated his support for the Islamic State of Iraq and Levant (ISIL), a designated foreign terrorist organization and statements relating to committing violent acts.
Gregerson was arrested on August 1, 2016, by FBI agents and remains in custody pending his sentencing which has been scheduled for June 30, 2017 in both cases. Gregerson faces a term of up to 10 years in federal prison for the straw purchase of the firearm.
Defendant Sentenced to 14 Years in Federal Prison on Methamphetamine Distribution ConvictionRead the Press Release
AMARILLO, Texas — Juan Daniel Mares, 40, of Amarillo, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 168 months in federal prison on a methamphetamine distribution conviction, announced John Parker, U.S. Attorney for the Northern District of Texas.
Mares pleaded guilty in January 2017 to one count of possession with intent to distribute 50 grams or more of methamphetamine. He has been in custody since his arrest on September 13, 2016.
According to documents filed in the case, on September 10, 2015, Mares agreed to meet with an undercover Texas Department of Public Safety agent, at a Walmart store in Canton, Texas, and sell him one pound of methamphetamine.
After the undercover agent arrived at the parking lot of the Walmart store, Mares got into the agent’s vehicle and gave the agent a shoebox containing 446 grams of methamphetamine, the agent in turn gave Mares $6,100.
The Texas Department of Public Safety, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Drug Enforcement Administration, Amarillo Police Department, Potter County Sheriff’s Office, and Randall County Sheriff’s Office investigated. Assistant U.S. Attorneys Joshua Frausto and Sean Taylor prosecuted.
# # #
Damariscotta Dentist Agrees to Pay $90,000 to Settle Civil Health Care Fraud CaseRead the Press Release
Contact: Sheila W. Sawyer
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: Acting United States Attorney Richard W. Murphy today announced that Joseph W. Griffin, D.M.D. (“Dr. Griffin”) has entered into a civil settlement agreement with the United States and the State of Maine in which he will pay $90,000 to resolve allegations that he submitted false claims to MaineCare (Maine’s Medicaid program) from July 1, 2014 through July 1, 2015. MaineCare is primarily funded by the United States which pays about two-thirds of all claims submitted to MaineCare.According to a civil complaint, Dr. Griffin was alleged to have violated the state and federal False Claims Acts by submitted claims totaling $164,972 to MaineCare for dental services that were not rendered, were medically unnecessary, or were so inadequately documented in the patient’s medical record as to be unreviewable, all in violation of the requirements of the MaineCare Program. The settlement amount reflected Dr. Griffin’s inability to repay the full amount improperly billed and his retirement from his dentistry practice.
The case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General and Maine Attorney General’s Health Care Crimes Unit. The civil action is docketed United States and the State of Maine v. Joseph W. Griffin, D.M.D., 2:17-cv-00162-JAW (D. Me.).Cramer Chennaux Sentenced to Prison in Ice Trafficking CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant CRAMER CHENNAUX, age 30, was sentenced in District Court to 57 months imprisonment, to be followed by three of supervised release, and 100 hours of community service. The Court also ordered CHENNAUX to pay a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On May 25, 2016, CHENNAUX was charged by Indictment with Possession of Methamphetamine with Intent to Distribute. On July 27, 2016, CHENNAUX entered a guilty plea to an Information charging him with Possession of Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(C). Law enforcement had received information that CHENNAUX was in possession of a large amount of methamphetamine at a hotel room. They subsequently seized over 122 grams of methamphetamine, with a 99 percent purity level. Officers also discovered $7,200.00 during the search. The money was administratively forfeited.
The investigation was conducted by DEA, Superior Court of Guam Marshals Division, Guam Superior Court Probation Office, Guam Police Department, and the U.S. Marshals Service. The case was prosecuted by Clyde Lemons, Jr., Assistant U.S. Attorney.
Convicted Felon Admits Trafficking Guns in the Camden AreaRead the Press Release
CAMDEN, N.J. – A Carbon County, Pennsylvania, man today admitted conspiring to illegally traffic over 20 firearms – including assault rifles and other high-capacity weapons – in the South Jersey area, Acting U.S. Attorney William E. Fitzpatrick announced.
Darnel Johns, 49, of Albrightsville, Pennsylvania, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of conspiracy to deal in firearms without a federal firearms license and one count of possession of firearms by a convicted felon. Johns had previously turned himself into law enforcement in late 2016 after several months as a fugitive.
According to documents filed in this and related cases and statements made in court:
Johns admitted that in the Fall and Winter of 2014, he conspired with co-defendant David Potts, 45, of Camden, to illegally sell at least 22 guns. The firearms included a sawed-off shotgun, multiple high-capacity assault-style rifles, and a high-capacity assault-style pistol with a 30-round magazine. Several of the firearms were stolen and had obliterated serial numbers.
Potts previously pleaded guilty to his role in the conspiracy and was sentenced on April 10, 2017 to 121 months in prison.
The illegal firearms dealing count to which Johns pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The possession of firearms by a convicted felon count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 4, 2017.
This case was initiated as part of a wide-ranging set of gun trafficking arrests that took place on March 4, 2015. Acting U.S. Attorney Fitzpatrick credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Scott C. Curley, Newark Division, and Essam Rabadi, Special Agent in Charge of ATF’s Philadelphia Field Division, with the investigation. He additionally credited special agents of the Drug Enforcement Administration, Maple Shade Resident Office, under the direction of Special Agent in Charge Carl J. Kotowski; the ATF Charlotte Field Division under the direction of Special Agent in Charge C. J. Hyman; investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; detectives of the Camden County Police Department, under the direction of Chief Scott J. Thomson; the Newark Division of Public Safety’s Ballistics Laboratory; and the Bergen County Sheriff’s Office Ballistics Laboratory, with the investigation.
He additionally credited the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos, Jr.; investigators under the Camden High Intensity Drug Trafficking Area; the New Jersey State Police’s Metro South Unit, under the direction of Superintendent Col. Rick Fuentes; the New Jersey State Parole Board, under the direction of Chairman James T. Plousis; the Camden County Sheriff’s Office, under the direction of Sheriff Gilbert L. Wilson; and the Cherry Hill, Pennsauken and Maple Shade Police Departments.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
This investigation was coordinated through the Camden County Crime Collaboration (“C-4”). Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute Camden’s most dangerous criminals.
Defense counsel: Thomas Young Esq., Assistant Federal Defender, Philadelphia
Concert Promoter Arrested on Federal Fraud Charges that Allege He Solicited Investment Money that Was Never Used for Music EventsRead the Press Release
LOS ANGELES – A concert promoter with operations in Dallas, Texas and West Hollywood has been arrested on federal wire fraud charges in a case that alleges he defrauded investors in connection with concerts and other events.
Gabriel Martin Reed, 46, a former Malibu resident who recently relocated to Las Vegas, Nevada, was arrested by special agents with the Federal Bureau of Investigation on Saturday afternoon in McKinney, Texas.
Reed, who does business under the name Gabe Reed Productions, was arrested pursuant to a criminal complaint filed on April 19 in United States District Court in Los Angeles. The case against Reed was announced today after the complaint was unsealed during Reed’s first court appearance. The complaint charges Reed with wire fraud and aggravated identity theft.
Over an 8½-year period, Reed represented himself as a promoter and organizer of hard rock music events, as well as wrestling matches for World Wrestling Entertainment. According to the affidavit in support of the criminal complaint, Reed solicited investors in concert events by touting longstanding relationships with well-known musicians, showing props from alleged previous tours, and, in some instances, creating fabricated financial records related to music events.
The complaint alleges that Reed falsely told investors that musical artists had agreed to participate in events and that their funds would be used to provide up-front financing for the events. However, in many instances, the musical artists had not agreed to participate and, rather than using the funds for the events, Reed allegedly used the investors’ funds for personal expenses.
One Los Angeles investor agreed to put $100,000 into a concert tour Reed was calling “Titans of Rock.” However, many of the promised artists had not agreed to participate in the tour. An FBI review of bank records showed the victim’s money was used to pay for Reed’s personal expenses, including child support, costs related to a birthday, and meals at Ruth’s Chris Steakhouse and Mr. Chow in Beverly Hills, according to the affidavit. Over the course of several months in 2015, the $100,000 “had been depleted,” due in part to ATM withdrawals, and the FBI was “unable to identify the payment of any expenses related to a concert or tour,” the affidavit states.
The complaint alleges that Reed solicited money from at least 15 victims who suffered losses of at least $1.4 million.
Reed made his initial court appearance this morning in United States District Court in Sherman, Texas. Reed has agreed to appear in federal court Los Angeles at a date to be determined. He remains in custody until a detention hearing set for Friday in Texas.
Reed is charged with wire fraud for allegedly bilking the Titans of Rock investor and aggravated identity theft in relation to another promoter whose name Reed allegedly used in connection with the wire fraud.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If he is convicted of the charges, Reed would face a statutory maximum sentence of 20 years in federal prison for the wire fraud count and a mandatory, consecutive two-year sentence for the aggravated identity theft charge.
Investors who provided money to Reed and believe they were defrauded should contact the FBI’s Los Angeles Field Office at (310) 477-6565.
The case against Reed is being investigated by the FBI.
This case is being prosecuted by Assistant United States Attorney Poonam Kumar of the Major Frauds Section.
Concert Promoter Arrested on Federal Fraud Charges that Allege He Solicited Investment Money that Was Never Used for Music EventsRead the Press Release
LOS ANGELES – A concert promoter with operations in Dallas, Texas and West Hollywood has been arrested on federal wire fraud charges in a case that alleges he defrauded investors in connection with concerts and other events.
Gabriel Martin Reed, 46, a former Malibu resident who recently relocated to Las Vegas, Nevada, was arrested by special agents with the Federal Bureau of Investigation on Saturday afternoon in McKinney, Texas.
Reed, who does business under the name Gabe Reed Productions, was arrested pursuant to a criminal complaint filed on April 19 in United States District Court in Los Angeles. The case against Reed was announced today after the complaint was unsealed during Reed’s first court appearance. The complaint charges Reed with wire fraud and aggravated identity theft.
Over an 8½-year period, Reed represented himself as a promoter and organizer of hard rock music events, as well as wrestling matches for World Wrestling Entertainment. According to the affidavit in support of the criminal complaint, Reed solicited investors in concert events by touting longstanding relationships with well-known musicians, showing props from alleged previous tours, and, in some instances, creating fabricated financial records related to music events.
The complaint alleges that Reed falsely told investors that musical artists had agreed to participate in events and that their funds would be used to provide up-front financing for the events. However, in many instances, the musical artists had not agreed to participate and, rather than using the funds for the events, Reed allegedly used the investors’ funds for personal expenses.
One Los Angeles investor agreed to put $100,000 into a concert tour Reed was calling “Titans of Rock.” However, many of the promised artists had not agreed to participate in the tour. An FBI review of bank records showed the victim’s money was used to pay for Reed’s personal expenses, including child support, costs related to a birthday, and meals at Ruth’s Chris Steakhouse and Mr. Chow in Beverly Hills, according to the affidavit. Over the course of several months in 2015, the $100,000 “had been depleted,” due in part to ATM withdrawals, and the FBI was “unable to identify the payment of any expenses related to a concert or tour,” the affidavit states.
The complaint alleges that Reed solicited money from at least 15 victims who suffered losses of at least $1.4 million.
Reed made his initial court appearance this morning in United States District Court in Sherman, Texas. Reed has agreed to appear in federal court Los Angeles at a date to be determined. He remains in custody until a detention hearing set for Friday in Texas.
Reed is charged with wire fraud for allegedly bilking the Titans of Rock investor and aggravated identity theft in relation to another promoter whose name Reed allegedly used in connection with the wire fraud.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If he convicted of the charges, Reed would face a statutory maximum sentence of 20 years in federal prison for the wire fraud count and a mandatory, consecutive two-year sentence for the aggravated identity theft charge. Investors who provided money to Reed and believe they were defrauded should contact the FBI’s Los Angeles Field Office at (310) 477-6565.
The case against Reed is being investigated by the FBI. This case is being prosecuted by Assistant United States Attorney Poonam Kumar of the Major Frauds Section.
Carlisle Man Sentenced to 11 Years’ Imprisonment for Two Bank RobberiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jeffrey Turns, age 33, of Carlisle, Pennsylvania, was sentenced on May 1, 2017, before United States District Court Judge John E. Jones, III, to 132 months’ imprisonment for committing two bank robberies and federal firearms charges.
According to United States Attorney Bruce D. Brandler, Turns robbed two banks in August 2015, a Fulton Bank in Dillsburg, Pennsylvania, on August 12, 2015, and a Santander Bank in Mechanicsburg, Pennsylvania, on August 27, 2015. During the Santander Bank robbery, Turns threatened the tellers by brandishing a firearm. Turns was apprehended just after the August 27, 2015, bank robbery through a cooperative effort by Upper Allen Township Police Department, Camp Hill Police Department, Lower Allen Township Police Department, and the Pennsylvania State Police. When taken into custody, Turns was fleeing from the bank in a stolen car with the firearm in his waistband, and nine additional stolen firearms in the back of the car.
As a part of his sentence, Judge Jones ordered Turns to serve a term of three years of supervised release at the conclusion of his prison sentence. Turns must also pay restitution in the amount of $3,471 to Fulton Bank. Officers recovered the money that Turns had stolen from Santander Bank from Turns at the time of his arrest.
This case was investigated by the Federal Bureau of Investigation, the Mechanicsburg Police Department, and the Carroll Township Police Department. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Career Offender Sentenced to More Than 18 Years for Armed Drug TraffickingRead the Press Release
Tampa, FL – U.S. District Judge Charlene E. Honeywell has sentenced Michael D. Richardson, Jr. (25, Hillsborough County) to 18 years and 4 months in federal prison for possessing with the intent to distribute 50 grams or more of a mixture of methamphetamine and for possessing a firearm in furtherance of a drug-trafficking crime. He pleaded guilty on November 2, 2016.
According to court documents, in May 2015, law enforcement officers arrested Richardson after he was seen driving a stolen car. The officers recovered distribution quantities of crack cocaine and methamphetamine from inside the car. In July 2015, as officers approached Richardson in another stolen car, he fled on foot. The officers ultimately arrested Richardson who was carrying a bag containing multiple baggies of methamphetamine. Officers recovered more methamphetamine, hydrocodone (a prescription opiate), and a loaded handgun from inside the stolen car. Between his May and July arrests, Richardson possessed with the intent to distribute 24.6 grams of crack cocaine, 60 hydrocodone pills, and 203 grams of methamphetamine. At the time of his arrest, Richardson had multiple prior felony convictions including robbery, robbery with a firearm, and battery.
This case was investigated by the Drug Enforcement Administration, the Hillsborough County Sheriff’s Office, and the Plant City Police Department. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
California Woman Pleads Guilty to Federal Meth Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Natalie Orozco, 30, of Los Angeles, Calif., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. The plea agreement recommends that Orozco be sentenced to ten years of imprisonment followed by a term of supervised release to be determined by the court. The guilty plea was announced by Acting U.S. Attorney James D. Tierney and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division.
The DEA arrested Orozco in May 2016, after seizing approximately 1.4 kilograms (3.08 pounds) of methamphetamine from her during an interdiction investigation at the Amtrak Train Station in Albuquerque. During a post-arrest statement, Orozco acknowledged that she was transporting the methamphetamine to Indianapolis, Ind., in exchange for money.
Orozco subsequently was indicted on May 25, 2016, and charged with possession of methamphetamine with intent to distribute on May 9, 2016, in Bernalillo County, N.M.
During today’s proceedings, Orozco pled guilty to the indictment and admitted possessing methamphetamine concealed inside a backpack while traveling to Albuquerque on an Amtrak Train on May 9, 2016. Orozco also admitted that she was transporting the methamphetamine for money. Orozco remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Eva Fontanez.
Brockton Man Sentenced on Fentanyl and Firearms ChargesRead the Press Release
BOSTON – A Brockton man was sentenced yesterday in federal court in Boston for trafficking fentanyl and possession of a firearm.
Luis DaCosta, 23, aka “Jesse” and “Slu,” a Legal Permanent Resident, was sentenced by U.S. District Court Judge William G. Young to 106 months in prison and five years of supervised release, during which time he will be prohibited from associating with his co-conspirators and certain other Brockton gang members. DaCosta is subject to immigration proceedings, including deportation, after serving his sentence.
In January 2017, DaCosta pleaded guilty to conspiracy to possess with intent to distribute fentanyl and possession of a firearm during and in relation to a drug trafficking crime. In April 2016, DaCosta was arrested and charged in a criminal complaint, and in May 2016, he and six others were indicted on drug and firearm-related charges.
On numerous occasions from December 2015 to March 2016, DaCosta sold fentanyl in the Brockton area. On April 5, 2016, law enforcement seized a loaded Smith and Wesson 9mm handgun and more than 30 grams of fentanyl from the hotel room in which DaCosta and co-defendant Seidica Monteiro were staying. According to court documents, DaCosta has a violent history and gang associations. Specifically, DaCosta had been released on bail from Rhode Island state court after he allegedly shot a person on March 19, 2016. In addition, in February 2016, DaCosta sold fentanyl to a person that overdosed, but later recovered.
Monteiro pleaded guilty in January 20127 and is scheduled to be sentenced on July 10, 2017.
This case was brought as part of the federal response to the opioid abuse epidemic in Massachusetts. Fentanyl is a powerful synthetic opiate that is 50 to 100 times more potent than morphine, and is responsible for the increased number of overdose deaths in Massachusetts. In 2016, 75 percent of those who unintentionally overdosed had fentanyl in their systems, an increase of nearly 25 percent from the prior year.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley, made the announcement today. The case was investigated by the Federal Bureau of Investigation, the Massachusetts State Police assigned to the Plymouth Country District Attorney’s Office, MSP CAT Team, the Southeastern Massachusetts Gang Task Force, the New England High Intensity Drug Trafficking Area (HIDTA), and Brockton Police Department. Assistant U.S. Attorneys Glenn A. MacKinlay and Timothy Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
Bowie Woman Convicted of Fraud Scheme and ID TheftRead the Press Release
ALEXANDRIA, Va. – A Bowie, Maryland, woman was convicted today of bank fraud, mail fraud, and aggravated identity theft.
According to court records and evidence presented at trial, Tonia Latrice Lewis, 47, obtained the identities of dozens of victims and used those identities to open bank accounts and apply for loans in the names of the victims, without their knowledge or consent. Lewis submitted over 30 applications to open accounts and get access to funds from various financial institutions, including Pentagon Federal Credit Union, Lafayette Federal Credit Union, U.S. Postal Service Federal Credit Union, Interior Federal Credit Union, D.C. Teachers Federal Credit Union, M&T Bank, and others. Lewis’ scheme included fabricating driver’s licenses and falsifying records submitted in support of these applications. Lewis used the proceeds from the fraud in part to purchase jewelry, items of clothing, and to gamble at a casino in West Virginia.
Lewis faces a maximum penalty of 30 years in prison and a fine of $1 million for the bank fraud, 30 years in prison and a fine of $1 million for the mail fraud, and mandatory minimum penalty of two years in prison for the aggravated identity theft when sentenced on August 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; J. Thomas Manger, Montgomery County Chief of Police, made the announcement after a bench trial before Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Katherine L. Wong and Michael Culhane Harper of the Criminal Division’s Fraud Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-25.
Blood Testing Laboratory to Pay $6 Million to Settle Allegations of Kickbacks and Unnecessary TestingRead the Press Release
Contact Person: Office of Public Affairs (202) 514-2007
WASHINGTON – Quest Diagnostics Inc. has agreed to pay $6 million to resolve a lawsuit by the United States alleging that Berkeley HeartLab Inc., of Alameda, California, violated the False Claims Act by paying kickbacks to physicians and patients to induce the use of Berkeley for blood testing services and by charging for medically unnecessary tests. Quest, which is headquartered in Madison, New Jersey, acquired Berkeley in 2011, and ended the conduct that gave rise to the settlement.
“We rely on doctors to provide honest, independent recommendations regarding clinical testing,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Companies that pay kickbacks to referring doctors corrupt those doctors’ independence, leaving patients vulnerable to expensive and unnecessary testing.”
Physicians refer their patients to independent laboratories like Berkeley to conduct tests on blood samples. According to the government’s complaint, Berkeley paid kickbacks to referring physicians disguised as “process and handling” fees. The complaint also alleged that Berkeley paid kickbacks to patients by routinely waiving copayments owed by certain patients who were legally required to pay for part of their tests. Allegedly, Berkeley paid the kickbacks to induce both the physicians and patients who received them to choose Berkeley over other laboratories. The government’s complaint further alleged that these illegal practices resulted in medically unnecessary cardiovascular tests being charged to federal healthcare programs.The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient. The Anti-Kickback Statute also prohibits routinely waiving patient copayments to ensure that patients are appropriately incentivized to refuse unnecessary tests.
“The South Carolina U.S. Attorney’s Office has dedicated considerable resources to pursuing fraud cases that divert federal tax payer dollars from important programs, like health care and defense contracting,” said U.S. Attorney Beth Drake of the District of South Carolina. “The goal for our qui tam unit is to protect taxpayers, patients, and soldiers by ensuring that important decisions are made according to medical science and engineering, and not based on dollar signs.”
“This settlement is part of the government’s ongoing efforts to address conduct that allows medical decisions to be influenced by money rather than the best interests of patients,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “Our office is pleased to defend the integrity of our healthcare system and to demand the return of ill-gotten gains.”
“We will not allow laboratories to provide financial incentives to induce physicians to steer patients their way,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) in Atlanta. “The Office of Inspector General will continue to work aggressively to eliminate this type of behavior which ultimately drives up healthcare costs and eliminates fair competition.”
The lawsuit was initially filed by Dr. Michael Mayes under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act permits the United States to intervene in and take over a whistleblower suit. The United States partially intervened in this and two related actions on March 31, 2015, and is continuing to pursue claims against the remaining defendants: Latonya Mallory, the former CEO of Health Diagnostics Laboratory Inc., and marketing company BlueWave Healthcare Consultants Inc. and its owners, Floyd Calhoun Dent III and Robert Bradford Johnson. Dr. Mayes’ share of the settlement with Quest has not been determined.
On April 9, 2015, the United States announced settlements with two other laboratories - Health Diagnostics Laboratory Inc. of Richmond, Virginia, and Singulex Inc., of Alameda, California - for engaging in conduct similar to that resolved in the settlement with Quest.
The government’s intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the District of South Carolina and the District of Columbia, FBI’s Columbia Field Office and the FBI Healthcare Fraud Unit Major Provider Response Team (MPRT), HHS-OIG, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.
The cases is captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
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Baltimore, Maryland Man Sentenced to 8 Years in Federal Prison for His Role in Six Year Scam Using Fake Companies and False Documentation to Defraud Car Dealers and LendersRead the Press Release
Baltimore, Maryland – On May 1, 2017, U.S. District Judge Catherine C. Blake sentenced Sean Stanley Jackson, age 44, of Baltimore, Maryland to eight years in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud and money laundering charges as the leader of a scheme to defraud auto dealers in Anne Arundel, Howard, Baltimore and Montgomery counties and nation-wide financial lenders. Judge Blake also ordered Jackson to pay forfeiture and restitution in the amount of $692,587.63.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, from January 2010 to February 2016, Jackson, and his co-Defendants Erika P. Ryles, and Walter J. Perry, III conspired to make false representations on loan applications to lenders in order to obtain loans to purchase vehicles from dealers, for which they were not financially qualified. Jackson and his co-conspirators organized and registered shell entities, including The Black Group LLC, which they used to make false representations in loan applications. For example, the conspirators falsely represented that The Black Group was a legitimate, thriving business with millions of dollars in annual revenues. To support their false representations, the defendants created fake documents, including paystubs, bank account statements, utility bills and corporate tax returns and schedules for the shell entities, which they submitted with auto loan applications, and to banks and other lenders.
On December 5, 2013, Jackson sent a message to Ryles asking her to create a fake bank account statement showing specific deposits and balance, which she did. Jackson and another co-conspirator, who was an elderly family member, then used the fraudulent bank statement to apply for loans on behalf of The Black Group on two different 2014 Ford F450 trucks, a Chevrolet Express Van, and a 2009 Audi A8. After obtaining more than $246,349 to purchase the four vehicles, Jackson and the co-conspirator defaulted on the loans, causing losses to the lender. In June 2014, Ryles again prepared false bank statements at Jackson’s request. Jackson and the co-conspirator then used the false bank statement in support of a loan application to purchase a 2006 5900i International Dump Truck. After receiving the financing to purchase the dump truck, Jackson and the co-conspirator again defaulted on the loan, causing a loss to the lender.
Jackson also used The Black Group to launder proceeds he obtained from the sale of a 2012 Chevrolet Avalanche. On May 10, 2012, Jackson submitted a false loan application and obtained $63,067.38, to finance the purchase of a 2012 Chevrolet Avalanche. After a few months, Jackson stopped making payments on the loan and the lender attempted to repossess the vehicle, but was unsuccessful since Jackson did not live at the address he provided on the loan application. Jackson continued using the vehicle. On November 29, 2014, Jackson went to a title shop in Maryland and presented a Mississippi title for the Avalanche which reflected that the vehicle had been sold to The Black Group on November 24, 2014, by the original owner, Thomas Mack, and that the vehicle did not have any outstanding liens. In order to conceal the true ownership of the vehicle, Jackson used the Mississippi title to obtain a Maryland MVA title on the Avalanche in the name of The Black Group. On December 15, 2014, Jackson, acting as a representative of The Black Group, sold the Avalanche to a car dealership in Maryland for $34,000, receiving a check in that amount made payable to The Black Group.
The next day, Jackson directed Perry to open two bank accounts representing that Perry owned a company called “Black Group,” and had Perry deposit the check from the sale of the Avalanche into one of those accounts. On December 18, 2014, at Jackson’s direction, Perry use the funds in that account to purchase three cashiers’ checks totaling $23,000, each made payable to Jackson. In addition, Perry withdrew $8,000 in cash and gave the money to Jackson. On January 9, 2015, Jackson had Perry purchase the Avalanche from the dealership where he’d sold it. At Jackson’s direction, Perry applied for a loan to purchase the vehicle, falsely stating that he was president of the Black Group LLC. Jackson provided Perry with two fake pay stubs, which Perry used as part of his loan application.
Acting United States Attorney Stephen M. Schenning commended the IRS - Criminal Investigation and Baltimore County and City Police Departments for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Dana J. Brusca, who prosecuted the case.
Baltimore Sex Offender Sentenced to 35 Years in Federal Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Louis Frances Bradley, age 66, of Baltimore, Maryland today to 35 years in prison, followed by a lifetime supervised release, for production of child pornography. Bradley has four previous state convictions on charges related to the sexual exploitation of children.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, between 2014 and 2016, Bradley paid numerous women in the Philippines to take sexually explicit photos of prepubescent females and send the images to Bradley using social media. Bradley also paid the women to expose their genitals to Bradley using video streaming programs.
Bradley created two social media accounts and used the accounts to become “friends” with hundreds of young women who lived in the Philippines. Many of the women “friended” by Bradley had prepubescent children or access to prepubescent children. Bradley asked the women to send sexually explicit images of prepubescent females under their care in exchange for money. Bradley admitted that he sent 120 payments to at least 17 payees in the Philippines, totaling $8,291. At least six of the recipients sent Bradley images or videos of children engaged in sexually explicit conduct in exchange for the payments.
As part of his plea agreement, Bradley must continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the FBI and Baltimore Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Austin Man Indicted on Federal Firearms ChargeRead the Press Release
In Austin today, a federal grand jury returned an indictment against 50-year-old Steven Thomas Boehle for possession of a firearm by a prohibited person announced United States Attorney Richard L. Durbin, Jr.; and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
The indictment alleges that on April 12, 2017, Boehle was in possession of three firearms, namely semi-automatic pistols, while being an unlawful user of a controlled substance.
According to court records, last month, FBI Joint Terrorism Task Force (JTTF) agents received information that an individual, subsequently identified as the defendant, was planning to conduct a mass shooting.
On April 12, 2017, a State search warrant stemming from a narcotics investigation was executed at the Boehle’s residence. At that time, authorities seized the three firearms and over one thousand rounds of ammunition.
A federal search warrant was executed on April 14, 2017, at a storage unit in Austin that was leased by Boehle. Agents recovered ten long guns (rifles and shotguns) during the execution of that search warrant.
Boehle faces up to ten years in federal prison upon conviction. Yesterday, a federal magistrate judge in Austin set bond at $10,000 for Boehle. Boehle remains in custody while the U.S. District Court reviews the release order. The case has been assigned to U.S. District Judge Sam Sparks. No hearings have been scheduled at this time.
The FBI JTTF conducted this investigation with assistance from the Austin Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Gregg N. Sofer is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Dwayne Cunningham, 49, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge. Cunningham’s plea agreement includes a recommendation that he be sentenced to 60 months of imprisonment followed by a term of supervised release to be determined by the court.
Cunningham and co-defendants Devell Devoual, 35, and Cedric Laneham, 39, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support 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 collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Cunningham and his co-defendants were arrested in July 2016, on an indictment charging them with conspiring to distribute methamphetamine between May 16, 2016 and June 2, 2016; Devoual and Laneham with distributing methamphetamine on May 17, 2016; and Devoual and Cunningham with possessing methamphetamine with intent to distribute on June 2, 2016. According to the indictment, the defendants committed the offenses in Bernalillo County, N.M.
During today’s proceedings, Cunningham pled guilty to distributing more than 50 grams of methamphetamine on May 17, 2016. Cunningham remains in custody pending a sentencing hearing, which has yet to be scheduled.
To date, 46 of the 104 defendants including Lucero have entered guilty pleas, and 18 have been sentenced. The remaining defendants, including Devoual and Laneham, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. This case was prosecuted by Assistant U.S. Attorneys David M. Walsh and Norman Cairns.
1 May 2017
York County Man Indicted for Robbery and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony Johnson, age 49, a resident of York, Pennsylvania, was indicted on April 19, 2017, by a federal grand jury on robbery and federal firearms charges. The indictment was unsealed today.
According to U.S. Attorney Bruce D. Brandler, Johnson and his co-conspirator robbed and shot a victim on Girard Avenue, York, on January 9, 2016. During the investigation, the U.S. Marshals Task Force and York City officers recovered a stolen Smith and Wesson 9mm caliber semiautomatic pistol and three Luger cartridges from Johnson’s co-conspirator during her arrest.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorney Meredith A. Taylor is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 lifetime imprisonment, 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.
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York County Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony Corsa, age 31, of York, Pennsylvania, was indicted on April 19, 2017, by a federal grand jury on drug trafficking and firearms charges. The indictment was unsealed on April 28, 2017.
According to United States Attorney Bruce D. Brandler, the indictment alleges that in October 2016, Corsa was in possession of an Iver Johnson .32 caliber revolver, acrylfentanyl, and drug packaging materials with intent to distribute. The drugs seized in this case tested positive for acrylfentanyl, which is a potent and dangerous derivative of fentanyl, and has already been responsible for several deaths in Pennsylvania. The indictment also alleges that Corsa is a convicted felon, making it illegal for him to possess a firearm.
The case was investigated by the Alcohol, Tobacco, Firearms and Explosives, and the York County Police Department. Assistant U.S. Attorney Meredith A. Taylor is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 lifetime imprisonment, 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.
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Woodbury Man Pleads Guilty to Stealing Deceased Relatives' IdentitiesRead the Press Release
George Ronzell Fyke, 40, of Woodbury, Tennessee, pleaded guilty today to aggravated identity theft and theft of government funds, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
According to the plea agreement, Fyke stole names and social security numbers of deceased relatives and from fellow inmates at the Montgomery County, Tenn. Jail and used them to file false income tax returns. Fyke had the tax refund checks sent to addresses under his control and after being released from jail, he forged the signatures of the stolen identities and deposited the refund checks and into his bank accounts. Fyke caused the Department of Treasury to release over $56,000 in unlawful tax refunds.
As part of his plea agreement, Fyke has agreed to a sentence of 48 months in prison and to pay restitution to the IRS. Fyke also faces a period of supervised release and other monetary penalties.
Sentencing is scheduled for August 14, 2017.
This case was investigated by the IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Ryan Raybould.
Warrensburg Man Sentenced for Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Warrensburg, Mo., man who amassed a large collection of child pornography was sentenced in federal court today.
Timothy K. Jokubeit, 36, of Warrensburg, was sentenced by U.S. District Judge Gary A. Fenner to eight years and one month in federal prison without parole.
On May 24, 2016, Jokubeit pleaded guilty to one count of receiving child pornography over the Internet and one count of possessing child pornography.
Law enforcement officers executed a search warrant at Jokubeit’s residence on May 28, 2015, and seized a laptop computer, an external hard drive and two SD cards. Those devices contained more than 2,200 images of child pornography and more than 300 videos of child pornography, including images and video of children depicted in acts of bondage and adult/toddler rape scenes. According to court documents, the majority of the images and videos of child pornography depicted children under the age of 12.
Jokubeit told investigators he had been downloading child pornography for over 20 years.
This case was prosecuted by Assistant U.S. Attorney David Barnes. It was investigated by the Dent County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Parker Hosts Bi-Annual Community Council MeetingRead the Press Release
DALLAS —U.S. Attorney John Parker of the Northern District of Texas hosted a bi-annual meeting of the U.S. Attorney’s Community Council in Dallas last week. A group of community leaders which include law enforcement, civil rights, faith-based groups, and other organizations throughout north Texas convened to foster understanding and communication among people with varied perspectives, but with common interests.
“This council gathers in recognition of the fact that we have much more in common than divides us,” said U.S. Attorney Parker. “We have different experiences and perspectives, the respectful sharing of which is important in building trust and stronger communities.”
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Two District Men Indicted on Federal Charges for Series of Armed Robberies of Convenience StoresRead the Press Release
WASHINGTON – Darrell Blackwell, 24, and Michael Kemp, 27, both of Washington, D.C., have been indicted on federal charges alleging that they conspired to commit a series of armed robberies of 7-Eleven convenience stores in the District of Columbia and Maryland.
The indictment was announced today by U.S. Attorney Channing D. Phillips and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
Blackwell was arrested on April 28, 2017 in the District of Columbia and made his first appearance today in the U.S. District Court for the District of Columbia. He was ordered held pending a detention hearing set for May 4, 2017. Also, a status hearing in his case is set for May 9, 2017, before the Honorable Amy Berman Jackson.
Kemp will be presented at a future date. He will be brought to the District of Columbia, by writ, from Maryland where is serving a sentence on unrelated charges.
The indictment, filed last month, charges Blackwell with one count of conspiracy to interfere with commerce by robbery; two counts of interference with interstate commerce by robbery; two counts of armed robbery; two counts of unauthorized use of a vehicle in a crime of violence, and 12 federal firearms offenses.
The indictment charges Kemp with one count of conspiracy to interfere with commerce by robbery; two counts of interference with interstate commerce by robbery; two counts of armed robbery; two counts of unauthorized use of a vehicle during a crime of violence, and five federal firearms offenses.
The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the firearms offenses.
According to the indictment, Blackwell and Kemp conspired to and executed the armed robberies of six 7-Eleven convenience stores, and individual patrons of those stores, in the District of Columbia and Maryland between January and June 2013. As alleged in the indictment, from January through June 2013, Blackwell, Kemp and others, engaged in a conspiracy to commit a series of armed robberies of 7-Eleven convenience stores, businesses engaged in and affecting interstate commerce, obtaining cash and lottery tickets for their own benefit. According to the indictment, Blackwell, Kemp, and others, used firearms in the commission of these offenses and robbed individual patrons, present at some of the robberies. Lastly, the indictment alleges that Blackwell and Kemp used, without authorization, cars belonging to others in the execution of the armed robberies.
The robberies took place on the following dates and times:
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Jan. 5, 2013, approximately 5:20 a.m.: 4100 block of Kenilworth Avenue, Bladensburg, Md.
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Jan. 25, 2013, approximately 4:30 a.m.: 1900 block of Rhode Island Avenue NE.
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Jan. 27, 2013, approximately 8:10 p.m.: 7900 block of Georgia Avenue, Silver Spring, Md.
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Jan. 31, 2013, approximately 11:40 p.m. 7400 block of Georgia Avenue NW.
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Feb. 16, 2013, approximately 3:05 p.m.: 8200 block of Georgia Avenue, Silver Spring, Md.
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June 12, 2013, approximately 2:50 p.m.: 2500 block of Benning Road NE.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Phillips and Acting Chief Newsham expressed appreciation for the work performed by detectives and officers of the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Montgomery County, Md. Police Department and the City of Bladensburg, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including, Paralegal Specialist Teesha Tobias, and Legal Assistants Peter Gaboton and Kate Abrey. Finally, they commended the work of Assistant U.S. Attorneys Jennifer Kerkhoff and Kacie Weston, who are prosecuting the case.
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Tonawanda Man Sentenced to 20 Years on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that David Barraclough, 32, of Tonawanda, NY, who was convicted of possession of child pornography, was sentenced to 240 months in prison and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handling the case, stated that on November 12, 2014, the defendant was charged with endangering the welfare of a child in violation of New York State law. While in custody related on that arrest, two individuals began cleaning out Barraclough’s apartment so that it could be rented to another tenant. The two individuals discovered a thumb drive above a door jamb in the defendant’s bedroom and contacted the Tonawanda Police Department. Officers took possession of the thumb drive along with an Android tablet belonging to Barraclough. A forensic analysis uncovered 238 images and five videos containing child pornography.
The Android tablet also contained multiple sexual conversations that occurred via “Kik” and “ooVoo” applications between the defendant, using the screen name “lordxavior,” and a young girl (the Minor Victim). The Minor Victim was 14-years old at the time Barraclough communicated with her. During the conversations, the defendant described performing oral sex and having intercourse with the Minor Victim and sent the Minor Victim a sexual photograph. The Minor Victim also sent pictures and videos of herself to the defendant.
On March 4, 2010, the defendant was convicted in NYS Supreme Court of possessing a sexual performance by a child and endangering the welfare of a child and sentenced to time served and 10 years probation.On December 1, 2010, the defendant was convicted in NYS Supreme Court for failing to register as a sex offender and sexual misconduct. Barraclough was sentenced to 12 months in jail.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III; and the City of Tonawanda Police Department, under the direction of Chief William Strassburg.
Texan Sentenced in Designer Drug Case in KansasRead the Press Release
TOPEKA, KAN. - A Texas man was sentenced Monday to time served (two years) for selling designer drugs manufactured in Kansas, U.S. Attorney Tom Beall said.
Michael Myers, 37, Montgomery, Texas, pleaded guilty to one count of conspiracy to possess with intent to distribute controlled substances and one count of conspiracy to commit mail fraud.
Myers was indicted in April 2014 along with co-defendants Tracy Picanso and Roy Ehrett, the owners of an Olathe-based business that produced and sold dangerous controlled substances and controlled substance analogs of THC (the active ingredient in marijuana) and methcathinones (stimulants). Picanso and Ehrett are awaiting sentencing.
Picanso and Ehrett sold products to distributors under names including Pump It, Head Trip, Black Arts, Grave Digger, Voodoo Doll and Lights Out. Some of the counterfeit drugs were manufactured in buckets with drill-powered immersion mixers and tried out on “testers” who helped tweak the recipes.
Myers and co-defendant Michelle Reulet lived together in Houston, Texas, and owned and operated Bully Wholesale, an independent wholesaler and distributor of products purchased from Picanso and Ehrett.
Ehrett routinely traveled from Kansas City to Houston to pick up cash from Reulet and Myers. On at least two occasions Myers met Ehrett in Oklahoma to transfer in excess of $100,000 cash to him. Investigators collected emails and text messages exchanged among the defendants. In an October 2011 email, for instance, Myers claimed the fake weed he was selling would not show up on a drug test. In a January 2012 email to Ehrett, Myers says he and Reulet were buying $600,000 to $900,000 worth of products each month from Ehrett and Picanso.
Beall commended the Drug Enforcement Administration, the Food and Drug Administration – Office of Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, Customs and Border Protection, the FBI, the Overland Park Police Department, the Johnson County Sheriff’s Office, the Olathe Police Department, the St. Joseph Police Department and the Buchanan County Drug Strike Force, Assistant U.S. Attorney Tanya Treadway, Michael Varrone, associate chief counsel at the Food and Drug Administration, and Assistant U.S. Attorney Tony Mattivi for their work on the case.