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28 April 2017
Former Owner of Internet Sports Memorabilia Businesses Sentenced to 60 Months’ Imprisonment for $2.5 Million Fraud SchemeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joshua Aaron Shores, age 44, of Bel Air, Maryland and also of Ocean City, Maryland, was sentenced on April 27, 2017, by United States District Court Judge John E. Jones, III, to 60 months’ imprisonment for a $2.5 million dollar fraud scheme.
According to United States Attorney Bruce D. Brandler, between 2008 and 2013, Shores obtained money and property by dealing in counterfeit and fraudulent sports memorabilia. Shores created, owned, and operated internet businesses under the names of Dealakhan, LLC, Stadium Authentics, Autograph Showcase, Sunset Beach, End Game Sports, Authenticgraph, and others with facilities in York County, Pennsylvania and in Maryland, and used the businesses to traffic in counterfeit and fraudulent sports memorabilia.
In order to carry out his scheme to defraud, Shores used various mailbox receiving services as business addresses, created and registered dozens of PayPal and Amazon.com accounts in his name and in the names of others to receive payments from customers, purchased counterfeit sports jerseys in bulk from China and affixed fraudulent autographs to them representing them to be authentic autographs of well-known athletes and sports figures, and also using fake certificates of authenticity. He opened and maintained more than 80 different bank accounts in five different financial institutions, in his name and in the name of others without their knowledge.
The court also ordered Shores to pay restitution in the amount of $500,000, a fine of $5,000, and immediate forfeiture of assets including U.S. currency in the approximate amount of $140,000. His prison term will be followed by a 2-year term of supervised release.
The investigation was conducted by the Federal Bureau of Investigation and Homeland Security Investigations. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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Former Investment Advisor Who Stole Client’s Retirement Savings Guilty on All Counts of Wire Fraud and Investment Advisor FraudRead the Press Release
TRENTON, N.J. – A former financial advisor entrusted with advising clients on investments was convicted by a federal jury today for defrauding his client, a former factory worker, out of his retirement savings and using the funds for his own benefit, Acting U.S. Attorney William E. Fitzpatrick announced.
Jesse Holovacko, 39, of Sayreville, New Jersey, was convicted on all counts of an indictment charging him with six counts of wire fraud and one count of investment advisor fraud following a five-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court. The jury deliberated for approximately one hour before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
Holovacko was an investment advisor at a financial institution located in New Jersey. In 2012, Holovacko went to the factory where the victim worked, met with the victim and some of his co-workers, and signed the victim on as a client, transferring the victim’s pension savings into an Individual Retirement Account (IRA). The victim entrusted Holovacko with managing the victim’s retirement savings.
From December 2013 through August 2014, Holovacko falsely told the victim that he would use retirement account funds to purchase bonds for him and advised the victim to transfer the retirement money to the victim’s bank account and then provide cashier’s checks made out directly to the financial advisor, telling the victim it would make it easier to purchase the bonds. Based on these false representations, Holovacko obtained 18 cashier’s checks totaling approximately $255,000.
Holovacko deposited all of the cashier’s checks into his own personal bank account and spent it for his car loan and mortgage payments, dining out, concerts and clubs, baseball game tickets, as well as taking out approximately $150,000 in cash. In order to continue deceiving the victim, Holovacko promised the victim documentation of the purported investments in bonds.
The wire fraud charges on which Holovacko was convicted each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The investment advisor fraud charge carries a maximum potential penalty of five years in prison and a maximum fine of $10,000. Sentencing is set for Aug. 8, 2017.
Acting U.S. Attorney Fitzpatrick credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn in Newark, and agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s verdict. He also thanked the Financial Industry Regulatory Authority (FINRA) and the N.J. Bureau of Securities of the New Jersey Attorney General’s Office for their assistance.
The government is represented by Assistant U.S. Attorneys Jihee G. Suh and Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Paul Condon, Jersey City, New Jersey
Former Chief Executive of Chicago Public Schools Sentenced to More Than Four Years in Prison in Connection with Bribery and Kickback SchemeRead the Press Release
CHICAGO — BARBARA BYRD-BENNETT was sentenced today to more than four years in federal prison for using her position in charge of the Chicago Public Schools to guide lucrative no-bid contracts to her former employer in exchange for bribes and kickbacks.
While serving as the Chief Executive Officer of CPS, Byrd-Bennett steered no-bid contracts worth more than $23 million to two education-consulting firms, THE SUPES ACADEMY LLC and SYNESI ASSOCIATES LLC. In exchange, Byrd-Bennett expected to receive cash kickbacks from the companies, as well as a consulting job at SUPES upon her retirement from CPS. Byrd-Bennett admitted in a plea agreement that the kickbacks were to be paid to her in the form of a “signing bonus” on the first day of her new employment.
Byrd-Bennett, 67, of Solon, Ohio, pleaded guilty in 2015 to one count of wire fraud. In addition to the 54-month prison sentence, U.S. District Judge Edmond E. Chang also fined Byrd-Bennett $15,000 and ordered that she and her co-defendants jointly share in a $254,000 restitution payment to CPS. Byrd-Bennett was ordered to report to prison no later than Aug. 28, 2017.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Nicholas J. Schuler, Inspector General for CPS.
“Byrd-Bennett agreed to cheat and deceive CPS from the get-go, to eliminate any opposition to her efforts to expand contracts for the SUPES entities within CPS, and to line her pockets with money obtained from a cash-strapped school district through her fraud,” Assistant U.S. Attorneys Megan Cunniff Church and Lindsay C. Jenkins argued in the government’s sentencing memorandum. “She corrupted the process entirely.”
Byrd-Bennett had previously worked as a consultant for SUPES and Synesi before moving to CPS in May 2012. In addition to the expected kickback from the contracts, Byrd-Bennett admitted in her plea agreement that the companies provided her with numerous other benefits while she was CEO, including meals and tickets to sporting events. She resigned as CEO on June 1, 2015.
All five defendants charged in the case have now been convicted and sentenced. The Wilmette-based SUPES and the Evanston-based Synesi, as well as their former owners, GARY SOLOMON, 49, of Wilmette, and THOMAS VRANAS, 36, of Glenview, pleaded guilty to federal criminal charges last year. Solomon admitted that he maintained a line item within the companies’ internal financial statements to set aside Byrd-Bennett’s kickback money, which would be paid in the form of a one-time signing bonus on her first day back. Solomon told Byrd-Bennett in a 2012 email, “If you only join for the day, you will be the highest paid person on the planet for that day. Regardless, it will be paid out on day one.”
Judge Chang today sentenced Vranas to 18 months in prison. Solomon was sentenced last month to seven years in prison.
Florida Man Sentenced to 30 Years in Federal Prison for Child Enticement, Possession of Child PornographyRead the Press Release
Tampa, FL – U.S. District Judge Richard A. Lazzara today sentenced Michael Joseph Armano (43, Pinellas County) to 30 years in federal prison for child enticement and possession of child pornography. As part of his sentence, the Court also ordered him to pay $72,415 in restitution.
Armano pleaded guilty on January 12, 2017.
According to court documents, Armano used fake social media accounts to pretend to be a child online. Through those accounts, he targeted at least 60 children on social media and convinced them to produce lewd and sexually explicit images of themselves and Livestream those images to him over the Internet. Additionally, according to testimony at sentencing, Armano possessed over 100,000 images of child pornography.
“Today’s sentencing ensures this criminal will never again be in a position of trust,” said Susan L. McCormick, special agent in charge of HSI Tampa. “This predator has abused children in ways that will affect them for their entire lives, but we hope this significant sentence can provide the innocent victims some amount of closure, while also serving as a grave warning to parents to be vigilant about their children’s online activities.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Gregory T. Nolan and Amanda Kaiser.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
Florida Man Pleads Guilty to Felony Charges for Activities in Inauguration Day RiotingRead the Press Release
WASHINGTON - Dane Powell, 31, of Tampa, Fla., pled guilty today to charges of felony rioting and felony assault on a police officer for his role in the violence and destruction that took place in downtown Washington on Inauguration Day, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
Powell was among more than 230 people arrested in the aftermath of various incidents on January 20, 2017; he was arrested the following day. He was among 212 defendants named in a superseding indictment returned on April 27, 2017, by a grand jury in the Superior Court of the District of Columbia. Powell is the first to plead guilty to felony charges.
In his guilty plea, Powell admitted to breaking windows and throwing a brick, large rock, or piece of concrete at uniformed law enforcement officers. He admitted being part of a group of rioters who moved approximately 16 blocks over a period of more than 30 minutes.
The charge of inciting or urging a riot (felony rioting) carries a statutory maximum of 10 years in prison and a $25,000 fine, or both. The charge of assaulting a police officer also carries a statutory maximum of 10 years in prison and a $25,000 fine, or both. Under the District of Columbia’s voluntary sentencing guidelines, Powell faces an estimated range of 12 to 36 months in prison on each of the two charges. Powell, who remains free on personal recognizance, is to be sentenced on July 7, 2017 by the Honorable Lynn Leibovitz.
According to a factual proffer signed by the defendant, on January 20, 2017, Powell joined together with more than 200 other people in and around Logan Circle in Washington, D.C. The group formed a “black bloc” in which individual defendants wore black or dark colored clothing, gloves, scarves, sunglasses, ski masks, gas masks, goggles, helmets, hoodies, and other face-concealing and face-protecting items to conceal their identities in an effort to prevent law enforcement from being able to identify the individual perpetrators of violence or property damage. Some of the members of the black bloc were armed with hammers, crowbars, wooden sticks, and other weapons. Powell was among those dressed in black, and had in his possession a gas mask. Powell also attempted to conceal his face with a mask. Powell was in possession of a hammer, and a heavy wooden stick with a flag attached to it.
At or about 10:19 a.m., according to the proffer, Powell and others in the black bloc moved south from Logan Circle on 13th Street NW. He marched with the group and saw that, within minutes of leaving Logan Circle, individuals participating in the black bloc began to vandalize and damage public and private property.
At approximately 10:35 a.m., Powell and other participants -- who armed themselves with hammers, crowbars, wooden sticks, and other weapons -- broke the windows of a Starbucks coffee shop in the 1200 block of I Street NW, the proffer states. He continued to move with the black bloc for several blocks when, at approximately 10:40 a.m., he broke the windows of a McDonalds restaurant near the intersection of New York Avenue NW and 13th Street NW, Washington, D.C. He then continued to move with the black bloc for multiple blocks.
At approximately 10:50 a.m., according to the proffer, Powell and more than 200 participants in the black bloc observed law enforcement forming a police line consisting of less than two dozen officers at the intersection of 12th and L Streets NW. At approximately 10:52 a.m., he and the other participants formed their own line, counted down, and charged the officers who formed the police line. Powell was one of approximately 50 or more individuals in the black bloc who broke the police line and was able to escape. Law enforcement was ultimately able to detain and to arrest more than 200 participants in the black bloc, and those individuals were held at the intersection of 12th and L Streets until they could be processed for arrest.
After Powell broke the police line and while law enforcement was detaining the more than 200 participants in the black bloc at the intersection of 12th and L Streets NW, he and others continued to engage in violence, the proffer states. Law enforcement formed another police line at 12th and K Streets NW. On at least three separate occasions, Powell threw a brick, large rock, or piece of concrete at uniformed law enforcement officers who had formed a line, the proffer states. Others also threw bricks, rocks, or pieces of concrete at uniformed law enforcement officers in the area. Multiple officers were transported to the hospital after being hit with bricks, rocks, or pieces of concrete, to include one officer who was knocked unconscious on the scene.
The investigation is continuing, and three defendants were added to the case in the superseding indictment returned on April 27. The U.S. Attorney’s Office has dismissed cases against 19 of the 230 individuals arrested on Inauguration Day. Two other defendants have pled guilty to a misdemeanor rioting charge.
This case is being investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Assistant U.S. Attorneys Jennifer A. Kerkhoff and John W. Borchert.
Five Men Associated with the Aryan Brotherhood Indicted for Illegal Possession and Transfer of Firearms and Conspiracy to Distribute MethamphetamineRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that five men were indicted on April 27, 2017, by a federal grand for illegal possession and transfer of machine gun parts and firearms, interstate travel in aid of racketeering activities, and conspiracy to distribute methamphetamine and conduct money laundering transactions. The indictment was partially unsealed on April 27, 2017.
According to United States Attorney Bruce D. Brandler, the redacted indictment alleges that the defendants conspired to transport methamphetamine, firearms, and machine gun parts to generate money to fund the activities of the Aryan Strike Force, including the acquisition of firearms. As stated in the indictment, in its on-line mission statement, the Aryan Strike Force describes itself as a “white nationalist organization” with the “goal to protect the honour of our women, children, and the future of our race and nation” using violence as a necessary tool to achieve its goals to the. The individuals charged in the indictment include:
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Joshua Michael Steever, Phillipsburg, NJ, age 37;
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Jacob Mark Robards, Bethlehem, PA, age 40;
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Henry Lambert Baird, Allentown, PA, age 40;
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Connor Drew Dykes, Silver Spring, MD, age 20;
- Justin Daniel Lough, Waynesboro, VA, age 26.
The indictment charges criminal violations involving the transfer of firearms to a convicted felon, possession of firearms by convicted felons, transfer of unregistered machine gun parts, distribution of methamphetamine, money laundering of drug proceeds, and conspiracy and interstate travel to facilitate drug distribution and money laundering.
On April 27, 2017, defendants Steever, Robards, Lough, and Dykes appeared in Williamsport for arraignment on the indictment before Magistrate Judge Martin C. Carlson, and they entered not guilty pleas. Trial and jury selection have been scheduled for July 10, 2017 before U.S. District Judge Matthew W. Brann in Williamsport. Magistrate Judge Carlson ordered that Steever, Lough, and Robards be detained pending trial and released Dykes on the condition of home confinement with electronic monitoring. Baird’s arraignment and a detention hearing are scheduled for May 4, 2017, in Williamsport.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the Pennsylvania State Police, the Virginia State Police, Phillipsburg (New Jersey) Police Department, New York State Police, Waynesboro (Virginia) Police Department, and the Montgomery County (Maryland) Police Department . Assistant U.S. Attorney George J. Rocktashel 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 included 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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Federal Grand Jury Indicts Birmingham Man in Tuscaloosa Gun Store BurglaryRead the Press Release
BIRMINGHAM – A federal grand jury on Thursday indicted a Birmingham man on stolen firearms charges related to the July 2016 burglary at a Tuscaloosa gun shop, announced Acting U.S. Attorney Robert O. Posey and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido.
A two-count indictment filed in U.S. District Court charges MARTAVES LABRON “Moo Moo” BROWN, 23, with one count of stealing firearms from a licensed firearms business, the Guns & Ammo store in Tuscaloosa, on July 12, 2016. The indictment also charges Brown with one count of possessing the more than 40 stolen firearms.
Taken in the store break-in were: two Taurus .380-caliber pistols, two SCCY 9mm pistols, two Jimenez Arms 9mm pistols, a Phoenix Arms .22-caliber pistol, an Anderson 5.56mm rifle, a GSG .22-caliber rifle, a KEL-TEC 9mm pistol, a Glock .380-caliber pistol, 11 Glock 9mm pistols, an Armalite 0.308-caliber rifle, a Bushmaster 5.56mm rifle, a Century Arms 7.62x39-caliber pistol, a Diamondback 5.56mm rifle, a Mossberg .22-caliber rifle, a Bersa .380-caliber pistol, a Masterpiece Arms 9mm pistol, two Hi-Point .40 S&W caliber rifles, an Armalite 5.56mm rifle, a Hi-Point .40 S&W caliber rifle, a Century Arms 7.62x39-caliber rifle, a Hi-Point 9mm pistol, a Walther .22-caliber pistol, a KEL-TEC 9mm pistol, a Smith & Wesson 5.56mm rifle, a Taurus 9mm pistol, a KEL-TEC .22-caliber pistol, a Walther .22-caliber rifle, a KEL-TEC 12-gauge shotgun, two Hi-Point .380-caliber rifles, and a JC Higgins 12-gauge shotgun.
In separate and unrelated cases, the grand jury indicted two other men with illegal possession of firearms or explosives.
A one-count indictment charges JARVIS MONTREZ KEY, 24, of Hoover, with being a convicted felon in possession of a Glock 9mm pistol and a Sig Sauer .380-caliber rifle on Aug. 20, 2016, in Jefferson County. Key was convicted of second-degree robbery in Shelby County Circuit Court in March 2013, according to the indictment.
A one-count indictment charges JEFFERY CUNNINGHAM, 47, of Cullman, with being a convicted felon in possession of an electrically initiated explosive detonator on March 23, 2016 in Cullman County. Cunningham previously was convicted in Cullman County Circuit Court of first-degree property theft in May 2001, second-degree receiving stolen property in August 2001, and unlawful possession of a controlled substance in November 2001, according to the indictment.
The maximum penalty for stealing a firearm from a licensed gun dealer and for possession a stolen firearm is 10 years in prison and a $250,000 fine. The maximum penalty for being a convicted felon in possession of firearms or explosives is 10 years in prison and a $250,000 fine.
ATF investigated the cases, which the U.S. Attorney’s Office for the Northern District of Alabama is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Federal Authorities Announce Criminal Charges in Tax CasesRead the Press Release
CHICAGO — Federal authorities today announced criminal charges against three Chicago-area defendants for a variety of alleged tax frauds. Although Tax Day has recently come and gone, the prosecutions serve as a warning for citizens to comply with their tax obligations.
Two Chicago-area tax preparers were charged with assisting clients in obtaining thousands of dollars in fraudulent refunds. The preparers fraudulently reduced their clients’ tax liabilities by misrepresenting their eligibility to claim tax credits, such as dependent exemptions, education expenses, real estate and child credits.
In addition, an Illinois attorney was charged with filing fraudulent individual income tax returns that willfully omitted more than $637,000 in income he received from his law firm.
“It is imperative to remind the public that criminal tax prosecutions occur throughout the year,” said Joel R. Levin, Acting United States Attorney for the Northern District of Illinois. “Tax preparers and individuals who willfully file false returns will be held accountable.”
“The IRS Criminal Investigation Division is committed to ensuring that all taxpayers pay their fair share,” said Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “We are aggressively serving the American people by investigating criminal violations of the Internal Revenue Code. Tax fraud does not know a season – IRS special agents pursue criminals year round, not only at tax time.”
In addition to criminal penalties, including incarceration, fines and the costs of prosecution, tax evaders remain responsible for all taxes and interest due, as well as civil penalties, the officials noted. Individuals making false claims against the government may be required to pay restitution and could be sued civilly for an amount greater than the fraudulent claims.
In an indictment returned earlier this month, LAURIE HELFER, 55, was charged with preparing and filing false and fraudulent income tax returns. Helfer, a professional tax preparer who owned Northlake-based “The Tax Lady Laurie,” filed the returns on behalf of clients for the tax years 2008 through 2010, according to the indictment. The returns claimed false credits for earned income, education and child care expenses, the indictment states. The government in Helfer’s case is represented by Assistant U.S. Attorneys Rick D. Young and Carol A. Bell.
Another professional tax preparer, LONNIE BLAKNEY, who owned Chicago-based “Blakney Tax Associates,” was charged earlier this month with preparing and filing individual income tax returns that he knew contained false and fraudulent information. Blakney, 63, of Normal, Ill., filed the returns on behalf of various taxpayers for the tax years 2010 and 2011, according to the indictment. The false information included invalid credits for real estate taxes, charitable donations, child and dependent care costs, and education expenses, according to the indictment. The government in Blakney’s case is represented by Assistant U.S. Attorney John D. Mitchell.
The attorney, TIMOTHY K. LIOU, was charged earlier this month with filing fraudulent individual income tax returns for the tax years 2010, 2011 and 2012. Liou, 50, of Wheaton, willfully omitted approximately $637,380 in gross income he had received from his firm, “The Liou Law Firm,” according to the indictment. Assistant U.S. Attorney Brian Netols represents the government in Liou’s case.
The public is reminded that charges are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
For tips and guidelines to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the official IRS website: https://www.irs.gov/help-resources.
Everett Man Convicted of Armed Bank RobberyRead the Press Release
BOSTON – An Everett man was convicted by a federal jury yesterday of armed bank robbery, using a firearm during the commission of a crime of violence, and being a previously convicted felon in possession of a firearm and ammunition.
Joseph G. Rachal, 65, was convicted following a four-day trial and is scheduled to be sentenced by U.S. District Court Judge Nathaniel M. Gorton on July 27, 2017.
On Nov. 19, 2015, an individual wearing a blue hat, brown facemask, tan jacket, tan pants, and carrying a black nylon bag, entered a branch of the TD Bank in Brighton. As the individual entered the bank, he removed a black semi-automatic handgun, pointed it at the tellers, and ordered them to turn over cash from the drawers. The individual took the money and exited the bank. A post-robbery audit revealed that the individual took $2,397.
The Boston Police arrived within minutes of the robbery and observed an individual hiding behind a parked SUV one block from the bank. When the officers approached the vehicle and identified themselves as police, the individual got up and began running away while carrying a black nylon bag.
The officers caught the individual, later identified as Rachal. An active scanner, which was tuned to a Boston Police radio frequency, was found on Rachal. The bag Rachal was carrying was searched and found to contain a 9mm Glock semi-automatic pistol with one chambered round and a magazine containing 14 additional rounds, along with an additional magazine containing 15 rounds of 9mm ammunition, a brown facemask, gloves, a tan jacket, blue baseball hat and $2,397.
Bank surveillance cameras captured images of the robbery, and the items recovered from the bag Rachal was carrying were consistent with the items observed on the video.
The charge of armed bank robbery provides for a sentence of no greater than 25 years in prison, five years of supervised release, and a fine of up to $250,000. The charge of being a felon in possession provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of carrying a firearm during the commission of a crime of violence provides for a mandatory sentence of seven years to be served consecutive to the other charges. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. The investigation was conducted with the assistance of the FBI’s Violent Crime Task Force. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Edinburg Man Gets More Than 24 Years for Three Child Pornography ChargesRead the Press Release
McALLEN, Texas – A 29-year-old Edinburg man has been ordered to federal prison following his convictions of production, receipt and distribution of child pornography, announced Acting U.S. Attorney Abe Martinez. Carlos Benjamin Martinez pleaded guilty Dec. 2, 2016.
Today, U.S. District Judge Randy Crane handed Martinez a total sentence of 292 months in federal prison. At the hearing, the court heard testimony from that Martinez had made several inquiries with adoption agencies expressing an interest in adopting children. He had also responded to a Craigslist posting, offering his services as a babysitter. In handing down the sentence, Judge Crane expressed his concerns regarding these inquiries. Martinez will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender and undergo sex offender treatment.
As part of his plea, Martinez admitted to downloading and receiving child pornography and to sending emails which contained child pornography. He also admitted to performing a sexual act on a minor child while recording the incident with his cellular phone.
In March 2015, authorities were investigating an individual suspected of possessing child pornography in Massachusetts. During that time, authorities discovered Martinez had emailed several images of child pornography to that suspect. The FBI executed a federal search warrant at the Martinez residence in September 2015 and seized various electronic devices. A search warrant was also executed on an email account belonging to Martinez. A forensic analysis on those devices and email account led to the discovery of thousands of images and multiple videos of child pornography involving children who were clearly young engaged in sexually explicit conduct.
A subsequent search of his cell phone revealed a video of Martinez performing sexual intercourse on a minor child approximately 12 years of age.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorneys Alex Benavides and Kimberly Ann Leo, 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."
East Hartford Man Sentenced to More Than 6 Years in Federal Prison for Distributing Crack CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN THOMAS MINTER, also known as “Louch” and “Louch Ramsey,” 29, of East Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 80 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
This matter stems from a long-term investigation being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department into narcotics trafficking by members and associates of the Westhell and Team Grease groups and group-related violent activity.
According to court documents and statements made in court, MINTER was a member of Team Grease, which was originally called “Wall Street.” In April 2015, investigators conducted two controlled purchases of crack cocaine from MINTER. On April 14, MINTER sold approximately 105 grams of crack in exchange for $2,600 and, on April 24, he sold approximately 248 grams of crack in exchange for $5,200.
MINTER was arrested on April 30, 2015. On that date, a search of MINTER’s East Hartford residence revealed approximately 62 grams of crack cocaine, approximately 93 grams of powder cocaine, items used to process and package narcotics for street sale, and $16,021 in cash.
MINTER has been detained since his arrest. On October 12, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, 28 grams or more of cocaine base (“crack cocaine”).
MINTER’s criminal history includes multiple felony narcotics convictions, and a conviction for risk of injury.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division and Hartford Police Department. 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 and Shooting Task Force, and the Capitol Region Emergency Response Team (CREST) have provided valuable assistance to the investigation.
This case was prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
District Man Sentenced to Seven-Year Prison Term on Federal Firearms ChargeRead the Press Release
WASHINGTON – Chaka Al-Fatah, 37, of Washington, D.C., was sentenced today to seven years in prison for a federal firearms charge related to a narcotics conspiracy that operated in the District of Columbia and Maryland. He was among 16 people to plead guilty following an investigation that led to the seizure of kilograms of narcotics, firearms, and cash.
The announcement was made by Channing D. Phillips, U.S. Attorney for the District of Columbia; Stephen M. Schenning, Acting U.S. Attorney for the District of Maryland; Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD), Henry P. Stawinski III, Chief of the Prince George’s County, Md. Police Department; Robert D. MacLean, Chief of the United States Park Police, and Robert Turner, Acting U.S. Marshal for the U.S. District Court for the District of Columbia.
Al-Fatah pled guilty in February 2017, in the U.S. District Court for the District of Columbia, to possession of a firearm in furtherance of a narcotics trafficking offense. The plea agreement, which was contingent upon the Court’s approval, called for a sentence of five to eight years in prison. The Honorable Chief Judge Beryl A. Howell accepted the plea agreement today and sentenced Al-Fatah accordingly. Following his prison term, Al-Fatah will be placed on five years of supervised release. He also must pay a forfeiture money judgment of $5,290.
Over the past 20 months, Chief Judge Howell has also accepted felony pleas from 15 others charged in the case. In March, she sentenced a leader of the conspiracy, Demetrius Muschetta, 33, of Washington, D.C., to a 13-year prison term. Last November, another leader of the group, Myron Williams, 40, of Oxon Hill, Md., was sentenced to a nine-year prison term.
As established through the defendants’ guilty pleas, in January 2015, the FBI/MPD Safe Streets Task Force began a long-term investigation into a narcotics enterprise involving Muschetta and Williams, that primarily focused in the Barnaby Terrace area of Southeast Washington and extended into Maryland.
The investigation revealed that Williams and Muschetta were partners in a drug business and purchased kilogram amounts of cocaine and heroin from multiple sources, and then in turn supplied it to other co-defendants for eventual distribution. According to the government’s evidence, Al-Fatah had narcotics dealings with Muschetta and Williams, which included the selling of narcotics to customers referred to him by Muschetta. He also engaged in phone calls regarding the acquisition of firearms. At the time of his arrest, in June 2015, law enforcement recovered a firearm and narcotics at Al-Fatah’s residence.
The 16 defendants were arrested after months of investigation by the FBI/MPD Safe Streets Task Force, which is comprised of agents from the FBI, the Metropolitan Police Department, the Prince George’s County Police Department, the United States Park Police, and the United States Marshals Service. The Department of Justice’s Organized Crime Drug Enforcement Task Force sponsored and supported this complex investigation
In announcing the sentence, U.S. Attorney Phillips, Acting U.S. Attorney Schenning, Assistant Director in Charge Vale, Acting Chief Newsham, Chief Stawinski, Chief MacLean, and Acting Marshal Turner commended the work of the D.C. Safe Streets Task Force.
They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Anthony Scarpelli and Christopher Macchiaroli of the Violent Crimes and Narcotics Trafficking Section; Assistant U.S. Attorney Zia Faruqui and Special Assistant U.S. Attorney Kyle Bateman of the Asset Forfeiture and Money Laundering Section; former Assistant U.S. Attorneys John Han and Todd Gee; Paralegal Specialists Candace Battle, Mary Downing, Teesha Tobias, Catherine O’Neal, and Toni Anne Donato, and Legal Assistants Brendan Coyne, Diane Brashears, and Latoya Wade. They also commended those who worked on the case from the U.S. Attorney’s Office for the District of Maryland including Assistant U.S. Attorney Matthew Sullivan, who prosecuted the Maryland portion of Muschetta’s narcotics seizure prior to the charges being transferred to Washington, D.C. for resolution before Chief Judge Howell.
District Man Sentenced to Prison Term for Sexually Assaulting Nieces and StepdaughterRead the Press Release
WASHINGTON – A 45-year-old man, of Washington, D.C., was sentenced today to a 30-month prison term for sexually assaulting two nieces and a stepdaughter, U.S. Attorney Channing D. Phillips announced.
The man, who is not identified here to protect the privacy of the victims, pled guilty in February 2017, in the Superior Court of the District of Columbia, to one count of second-degree child sexual abuse and two counts of misdemeanor sexual abuse of a child. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 30 months in prison. The Honorable Hiram E. Puig-Lugo accepted the plea today and sentenced the defendant accordingly. Following his prison term, the man is to be placed on three years of supervised release. He also will be required to register as a sex offender for the rest of his life.
At his plea hearing, the man admitted that, on one occasion between Dec. 1 and Dec. 22, 2016, he sexually fondled two of his nieces, then aged eight and nine, on the same evening, while visiting their home in Northwest Washington. The girls told their mother – the man’s sister – who notified the Metropolitan Police Department (MPD).
Further investigation by the police revealed that the man had been fondling his 15-year-old stepdaughter on various occasions throughout 2016. The man admitted his guilt at almost his earliest opportunity in the court proceedings.
In announcing the sentence, U.S. Attorney Phillips praised the work of officers from MPD’s Sexual Assault Unit. He also expressed appreciation for the work of personnel from Safe Shores, who conducted forensic interviews of the three victims. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Brenda C. Williams and Victim/Witness Advocate Elsa Maltese. Finally, U.S. Attorney Phillips commended the work of Assistant U.S. Attorneys Peter V. Taylor and Caroline Burrell, who investigated and prosecuted this case.
District Man Sentenced to 14 Years in Prison for Robbing and Assaulting Elderly Couple as They Were Walking in Northwest WashingtonRead the Press Release
WASHINGTON – Milton Hood, 52, of Washington, D.C., was sentenced today to 14 years in prison on charges of robbing and assaulting a senior citizen couple in Northwest Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
Hood was found guilty by a jury in January 2017 of one count of robbery of a senior citizen, and one count of assault with intent to commit robbery of a senior citizen. The verdict followed a two-week trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Kimberley S. Knowles. Upon completion of his prison term, Hood will be placed on three years of supervised release.
According to the government’s evidence at trial, at about 11:15 a.m. on May 29, 2015, a 75-year-old woman and her 81-year-old husband were walking south on 23rd Street NW, between Q and P Streets. Hood attacked the husband, knocking him to the ground, and forcibly removed his wallet from his back pocket. The female victim, afraid for her husband’s life, began striking Hood with her cane, hitting him repeatedly on the head and neck. Hood turned on her, striking back and knocking her head to the ground. Hood tried to grab her purse, but the female victim, bleeding from her head and her knees, did not let go. People in two cars driving by stopped to help the victims, and the defendant ran off. Based on descriptions provided by the victims and eyewitnesses, Hood was spotted by the Metropolitan Police Department (MPD) two hours later wearing the exact same clothing as he was at the time of the attack. The victim’s cane was swabbed for DNA, and subsequent testing revealed the presence of Hood’s DNA on it.
In announcing the sentence, U.S. Attorney Phillips and Acting Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Forensic Science Laboratory and Crime Scene Sciences Division of the District of Columbia Department of Forensic Sciences, as well as Bode Cellmark Forensics.
They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Assistant U.S. Attorneys Sharon Donovan, Michael Spence, Chrisellen Kolb, and Stephen Rickard ; Paralegal Specialists Crystal Waddy, Stephanie Siegerist, Stephanie Gilbert, Donville Drummond, Lynda Randolph, Debra McPherson, and Benjamin Kagan-Guthrie; Litigation Technology Specialists Claudia Gutierrez, Jeanie Latimore-Brown, and Paul Howell, and Jennifer Clark, Katina Adams-Washington and LaJune Thames, of the Victim Witness Assistance Unit. Finally, they commended the work of Assistant U.S. Attorneys Gilead Light, Michael Romano, and Allessandra Stewart, who investigated and prosecuted the case.
Des Moines Man Pleads Guilty to 2016 String of Robberies of Git-N-Go, Kum & Go, Hy-Vee, and U.S. BankRead the Press Release
DES MOINES, IA - On April 27, 2017, Alexander Hamilton, age 26, heather Jean Reekrof Des Moines, Iowa, appeared before Chief United States Magistrate Judge Helen C. Adams and entered pleas to interference with commerce by robbery and conspiracy to distribute hydromorphone, an opioid. Hamilton admitted to committing the following robberies, charged in the November 21, 2016, indictment against him:
Date
Count
Business
Location
3/21/16
3
Git-N-Go
4224 NW 2nd Avenue, Des Moines, IA
3/22/16
4
Git-N-Go
100 Watrous, Des Moines, IA
3/23/16
6
Kum & Go
4506 Lincoln Way, Ames, IA
3/23/16
7
Git-N-Go
816 E Euclid Avenue, Des Moines, IA
3/24/16
8
Git-N-Go
2601 SW 9th Street, Des Moines, IA
3/29/16
10
Kum & Go
4506 Lincoln Way, Ames, IA
3/30/16
11
Kum & Go
5830 SE 14th Street, Des Moines, IA
3/30/16
12
Git-N-Go
890 County Line Road, Des Moines, IA
3/31/16
13
Git-N-Go
2601 SW 9th Street, Des Moines, IA
4/03/16
14
Git-N-Go
4224 NW 2nd Avenue, Des Moines, IA
4/05/16
15
Git-N-Go
2911 Douglas Avenue, Des Moines, IA
4/06/16
16
Hy-Vee
2540 E Euclid Avenue, Des Moines, IA
4/08/16
17
Hy-Vee
2540 E Euclid Avenue, Des Moines, IA
4/11/16
18
Git-N-Go
865 42nd Street, Des Moines, IA
4/12/16
19
Git-N-Go
2911 Douglas Avenue, Des Moines, IA
4/13/16
20
U.S. Bank
2500 E Euclid Avenue, Des Moines, IA
4/17/16
23
Hy-Vee
1107 E Army Post Road, Des Moines, IA
Hamilton admitted he obtained hydromorphone (Dilaudid) from co-defendant Luke Martin, Jr., and distributed it to others, including co-defendants Sarah Coe, Shelly Avery, and Christ Avery. Hamilton admitted these robberies helped fund the hydromorphone distribution conspiracy.
Co-defendant Luke Martin, Jr., previously pleaded guilty to conspiracy to distribute hydromorphone. Co-defendants Chris Avery and Shelly Avery each previously pleaded guilty to interference with commerce by robbery. Co-defendant Sarah Coe previously pleaded guilty to bank robbery.
Defendants face potential maximum penalties under the statute of up to 20 years in prison on each of the plea counts.
Sentencings are presently scheduled as follows before Chief United States District Judge John A. Jarvey:
Luke Martin, Jr. June 8, 2017, 10:30 a.m.
Chris Avery July 6, 2017, 10:30 a.m.
Shelly Avery July 25, 2017, 9:00 a.m.
Sarah Coe July 25, 2017, 9:30 a.m.
Alexander Hamilton September 12, 2017, 1:30 p.m.
The investigation was conducted by the Des Moines Police Department, Polk County Sheriff's Office, Ames Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Defense Contractor Sentenced to 5 Years in Federal Prison for $53 Million Procurement Fraud and Illegal Gratuities SchemeRead the Press Release
Baltimore, Maryland – On April 27, 2017, U.S. District Judge Marvin J. Garbis sentenced John Wilkerson, age 51, of Moultrie, Georgia to five years in prison, followed by three years of supervised release, for a wire fraud conspiracy and for paying illegal gratuities to a government official, in connection with the award of more than $53 million in federal government contracts. Judge Garbis also ordered Wilkerson to pay forfeiture and restitution in the amount of $9,441,340.11.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Commander of the Air Force Office of Special Investigations (OSI); Special Agent in Charge Robert Craig, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office; and U.S. Small Business Administration Acting Inspector General Mike Ware.
According to his plea agreement, Wilkerson was a Department of Defense Account Manager for Iron Bow Technologies, LLC (Iron Bow), which provided IT consulting and other services to government and industry customers. Wilkerson was also part owner and operated an information technology company, Superior Communications Solutions, Inc. (SCSI).
Andrew Bennett, who was separately charged and has pled guilty, was a program manager for an information technology company, Advanced C4 Solutions, or AC4S, from 2005 until 2011. In 2011, Bennett left AC4S and went to work for Wilkerson at SCSI.
James T. Shank, who was separately charged and has pled guilty, was a Program Manager at the United States Navy’s Space and Naval Warfare (SPAWAR) Systems Center
From September 2009 through August 2012 Wilkerson, Bennett and Shank conspired to steer government contracts at Joint Base Andrews to companies affiliated with Wilkerson and Bennett. After the award of the contracts, Wilkerson offered, and Shank accepted, employment with SCSI while Shank was still a government employee and while he was taking official actions that benefited Wilkerson. In addition, Wilkerson paid Shank $86,000 in the year after Shank retired from government service, funneling the payment through two other companies in order to conceal the source of the funds. Wilkerson also hired Bennett and paid him a $500,000 bonus using proceeds from the fraud scheme.
For example, Shank, Wilkerson, and Bennett developed a request for proposal (RFP) for DO27, a contract to supply labor services for an Air Force technology project, including for overall project management services, so that AC4S would win the contract. On June 10, 2010, DO27 was awarded to AC4S in the amount of $18,332,738.10. Wilkerson provided Bennett with a quote for labor on behalf of SCSI that was less than the quote he had previously submitted on behalf of Iron Bow as their sales representative. After SCSI was selected as a subcontractor on DO27, it subcontracted with Iron Bow to provide most of the labor SCSI was supposed to provide under DO27. Wilkerson was able to earn income from the work Iron Bow employees were doing by having SCSI act as a middleman and charging a mark-up on Iron Bow’s work. Wilkerson and Bennett also directed an SCSI employee to create false invoices supposedly documenting the hours SCSI employees spent working on DO27, which were submitted to AC4S and paid by the United States government. SCSI received $6,794,432.98 on DO27 out of the $18 million AC4S received for providing labor for the project.
Shank also initiated the procurement process on more than 11 delivery orders that purchased telecommunications equipment and furniture as part of the Air Force project. Those delivery orders were issued to Iron Bow in 2010 and 2011. Wilkerson took multiple items of commercially available furniture, bundled them together and assigned them an SCSI specific number and a price that included a significant mark up over what SCSI paid the furniture manufacturer for the items. Shank then submitted to SPAWAR contracting officers a purchase order asking for authority to buy the bundle of furniture that bore the SCSI specific part number. SCSI received approximately $33 million of the $35 million paid to Iron Bow under the various furniture and equipment delivery orders. Wilkerson charged the United States a 25 percent markup on furniture purchased under these two purchase orders, resulting in a profit to him of more than $6 million.
In addition, from 2010 until his retirement in June 2011, Shank falsely certified that the United States government received more than $1 million worth of goods under the W91QUZ-07-D-0010 contract that the government did not in fact receive.
In late 2010 or early 2011, Wilkerson offered Shank employment. Shank did not disclose that fact to anyone at SPAWAR and did not recuse himself from any of the contracts that benefited Wilkerson. In February 2011, Bennett left AC4S and went to work for Wilkerson at SCSI. Bennett received a $500,000 bonus when he joined SCSI, which was paid for by profit Wilkerson had earned on the furniture contracts.
Shank accepted employment with SCSI in May 2011, but was still working for SPAWAR when he approved more than $1.1 million worth of invoices that benefitted SCSI and Wilkerson.
Between July 2011 until August 2012, Wilkerson paid Shank approximately $86,000. The funds that Wilkerson paid Shank were funneled through T&M Communications, LLC, a company owned by T.R., a senior executive at SCSI, who ultimately paid out the funds to Shank. Further, in some instances funds paid to Shank were also funneled through Decision Point Technologies, LLC, another company owned by Wilkerson. Shank did no work for Decision Point Technologies or T&M Communications in that time period.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
Acting United States Attorney Stephen M. Schenning thanked Air Force OSI, DCIS, and the U.S. Small Business Administration Office of Inspector General for their work in the investigation. Mr. Schenning commended Assistant U.S. Attorneys Leo J. Wise and Philip A. Selden, who are prosecuting the case.
Decatur Man Loses U. S. Citizenship and Faces Deportation after being Convicted of making False Statements in order to obtain His CitizenshipRead the Press Release
ATLANTA - Ismail Ali Khan has been sentenced to five years, seven months in federal prison after being convicted of conspiring to import illegally and distribute male enhancement pills that contained the drug found in Viagra. Khan was also convicted and sentenced for falsely stating on his application to become a naturalized U.S. citizen that he had never committed a crime for which he had not been arrested.
“This defendant endangered the health of countless individuals by illegally importing and distributing drugs that can be obtained in the United States only with a prescription written by a licensed, medical professional,” said U. S. Attorney John Horn. “What’s more, this defendant became a naturalized U.S. citizen by giving a false statement to the government about his criminal history, while he was engaged in this illicit drug scheme. Khan’s willful criminal pursuit earned him more than a prison sentence. It cost him his citizenship and deportation after prison.”
“American consumers are put at serious risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in products falsely labeled as natural dietary supplements,” said Justin Green, Special Agent in Charge, FDA Office of Criminal Investigations, Miami Field Office. “FDA remains committed to pursuing those who endanger the U.S. public health by distributing fraudulent and potentially dangerous products.”
According to U.S. Attorney Horn, the charges and other information presented in court: The defendant and others imported from China male enhancement pills with names such as, “Maxman,” “Herb Viagra,” “Rock Hard Weekend,” “Stiff Nights,” “Happy Passengers,” “Hard Ten Days” “Zhen Gongfu,” and they distributed the pills throughout the United States. These pills contained the same drug that is the active ingredient in Viagra. If the pills had been properly labeled, the Food and Drug Administration (FDA) and U.S. Customs and Border Protection would have stopped them from entering the U.S. because Viagra is available in this country only when prescribed by a licensed physician and dispensed by a pharmacist.
In order to evade import restrictions, the defendant and his co-conspirators directed their suppliers to mislabel the boxes containing the pills to make it appear that the boxes contained items that can be legally imported into the U.S., such as beauty products, pottery, coffee, and tea.
The defendant and his co-conspirators received the illegally imported pills at multiple addresses in the Atlanta, Georgia, area. They rented storage units at different locations where they repackaged the pills for distribution to wholesale and retail locations in the Atlanta area and throughout the U.S. In order to evade detection by law enforcement authorities, they moved their illegal operations regularly, used aliases, false addresses, and fake business names, and misrepresented the nature of their business when renting storage units and mailboxes.
Over the course of a conspiracy that lasted from early 2011 until May 2014, Khan and his co-conspirators illegally imported and distributed more than $1.5 million worth of illegal drugs that came from China.
On August 12, 2013, while this drug conspiracy was ongoing, Khan submitted an application to Citizenship and Immigration Services to become a naturalized United States citizen. The application included the following question: “Have you ever committed a crime for which you have not been arrested?” Khan falsely answered, “No.” On January 6, 2014, and again on March 14, 2014, Khan was interviewed by a representative of Citizenship and Immigration Services. Both times the representative asked Khan whether he had ever committed a crime for which he had not been arrested. On both occasions, Khan falsely stated that he had not. Khan became a naturalized United States citizen on March 14, 2014.
Ismail Ali Khan, 29, of Decatur, Georgia, was sentenced to five years and seven months in prison, to be followed by three years of supervised release. At the sentencing hearing, Judge Steve C. Jones ordered that Khan’s status as a naturalized U.S. citizen be revoked and Khan’s certificate of naturalization was declared void. Judge Jones also ordered that Khan be immediately deported to India, Khan’s native country, once he completes his prison term. At that time, supervised release will not be enforced. Khan was found guilty by a jury on February 13, 2017.
This case was investigated by the Office of Criminal Investigations, Food and Drug Administration and Homeland Security Investigations.
Assistant U.S. Attorneys William L. McKinnon, Jr. and Trevor Wilmot prosecuted 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.
DEA Prepares for Prescription Drug Takeback DayRead the Press Release
DALLAS - U.S. Attorney John Parker wants to encourage the public to participate in the Drug Enforcement Administration’s National Prescription Drug Take-Back Day on Saturday, April 29, 2017.
On October 22, 2016, the public turned in 731,269 pounds—almost 366 tons—of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds (more than 3,500 tons) of prescription drugs have been removed from medicine cabinets, kitchen drawers, and nightstands by citizens around the country.
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused CPDs in 2015, including the almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers. Almost 30,000 people—78 a day—died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
Collection sites will be set up throughout communities nationwide. To locate a collection site near you, go the DEA Office of Diversion Control web site at https://www.deadiversion.usdoj.gov/drug_disposal/takeback where you can search by zip code, city, or state. The service is free and anonymous.
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D.C. Circuit Affirms Decision Blocking Anthem’s Acquisition of CignaRead the Press Release
The U.S. Court of Appeals for the D.C. Circuit today affirmed the decision by the District Court for the District of Columbia blocking health insurer Anthem, Inc.’s acquisition of Cigna Corp., the Justice Department announced. Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division released the following statement today after the ruling in United States et al. v. Anthem, Inc. and Cigna Corp.:
“We are pleased with the appellate court’s decision. It upholds an injunction against the merger of two of the country’s largest health insurers, which not only would have led to higher prices but also slowed innovation and harmed consumers by weakening value-based offerings aimed at lowering medical costs. The decision confirms the district court’s conclusion that the merger would not have provided real benefits to consumers, but instead would have harmed competition in these important markets.
“I am proud of the outstanding work done by the trial team, who established that this merger would be anticompetitive, and by the lawyers who defended the case on appeal. As this case shows, the Antitrust Division and our state partners will continue to vigorously protect competition and enforce the antitrust laws in this critical industry.”
In July 2016, the Antitrust Division filed a lawsuit in the U.S. District Court for the District of Columbia seeking to block Anthem’s $54 billion acquisition of Cigna, the largest proposed transaction in the history of the healthcare industry. The division’s complaint alleged that the merger would substantially lessen competition in the health insurance industry in dozens of markets throughout the United States.
The Division tried the case before Judge Amy Berman Jackson over a seven-week period from Nov. 21, 2016, to Jan. 3, 2017. On Feb. 8, 2017, Judge Jackson ruled in favor of the Division and blocked the proposed merger. She found that the merger was likely to substantially lessen competition in the market for the sale of health insurance to national accounts based in fourteen states, and in the sale of health insurance to large employers in Richmond, Virginia. Five days after the court’s decision, Anthem filed a brief appealing the decision and separately requested expedited review from the court of appeals. Oral argument was held six weeks later on March 24, 2017.
The United States was joined in the lawsuit by the District of Columbia and the States of California, Colorado, Connecticut, Georgia, Iowa, Maine, Maryland, New Hampshire, New York, Tennessee and Virginia.
Cullman County Man Indicted for Jasper Bank RobberiesRead the Press Release
BIRMINGHAM – A federal grand jury on Thursday indicted a Cullman man for robbing the same Walker County bank twice within seven months, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
A three-count indictment filed in U.S. District Court charges WALTER LARRY LUMPKIN, 71, with two counts of bank robbery and one count of brandishing a firearm during a bank robbery.
According to the indictment, Lumpkin robbed the Curry Branch of First Bank of Jasper on June 17, 2016, taking $32,600. The indictment charges he robbed the same bank on Jan. 20 this year, taking $61,135. He is charged with brandishing a Heritage Arms .22-caliber revolver during the January robbery.
The maximum penalty for bank robbery is 25 years in prison and a $250,000 fine. The penalty for brandishing a firearm during a crime of violence is a minimum of seven years and a maximum of life in prison, and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney William G. Simpson is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Court Orders Forfeiture of Henderson County ResidenceRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that the federal court in the Western District of North Carolina has ordered the final forfeiture of a Henderson County residence used in the illegal distribution of oxycodone and other narcotics. The forfeiture of the residence to the United States is the result of the collaborative efforts of the Henderson County Sherriff’s Office, the United States Drug Enforcement Administration (DEA) and the U.S. Attorney’s Office.
The case against the residence arose out of a civil complaint for forfeiture filed by the United States in February 2015 (Docket No. 1:15-cv-23). The United States’ forfeiture lawsuit was brought pursuant to 21 U.S.C. § 881, which, under certain circumstances, allows for forfeiture of property which is proceeds of or used to commit or facilitate the commission of felony drug offenses. In its civil complaint, the United States alleged that the property located at 318 Jody Street, in East Flat Rock, N.C. (“the Jody Street Property”), facilitated and was proceeds of narcotics offenses by Harvey Franklin Hunt, Vivian Hunt, and Dorothy Hunt.
The civil complaint detailed narcotics offenses dating back to 2012. Specifically, the civil complaint alleged illegal sales of oxycodone from the property, and also the recovery of large amounts of cash, digital scales, marijuana, alprazolam, and methamphetamine from the residence. Finally, the civil complaint alleged multiple state controlled substances convictions against Harvey Hunt, Vivian Hunt, and Dorothy Hunt.
Ultimately, the civil forfeiture case was stayed pending the resolution of state criminal charges against the Hunts based on the continuing drug activity. In 2016, after the successful resolution of the state cases and the conviction of the Hunts, the federal court lifted the stay. The United States ultimately obtained agreement from Harvey and Vivian Hunt, the owners of the Jody Street Property, to their eviction from and final forfeiture of the property. The default judgment and final order entered this month by the federal court enables the United States to evict the Hunts and sell the property.
In making today’s announcement, the U.S. Attorney’s Office commended the coordination and collaborative work of the DEA, the Henderson County Sherriff’s Office, and the Henderson County Drug Task Force.
Assistant United States Attorney Benjamin Bain-Creed, of the U. S. Attorney’s Office in Charlotte, handled the civil proceedings.
Court of Appeals Affirms Convictions, Life Sentence, and $1 Miillion Forfeiture Judgment in 2009 Rochester Drug Trafficking CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. — Acting U. S. Attorney James P. Kennedy, Jr. announced today that the United States Court of Appeals for the Second Circuit has affirmed the convictions and sentences of Kevin Lamont Anderson, a/k/a Cuda, and Willie Grimes, a/k/a Chill.
On October 26, 2009, following a six-week trial before U.S. District Judge Charles J. Siragusa, a federal jury convicted defendant Anderson of conspiracy to distribute, and possession with intent to distribute crack cocaine, maintaining a drug involved premises, and money laundering conspiracy.
From 1990 to December 2005, defendant Anderson led a conspiracy to distribute crack and powder cocaine. Evidence presented by the Government during the trial showed that during the time of the conspiracy, drugs were sold to customers from a series of houses in the northeast section of Rochester controlled by Anderson.
As part of sentencing proceedings, the Government proved that Anderson was responsible for the double homicide in May 2002 of Clifford Robinson and Allen Tyrone Smith in Rochester. Anderson shot Robinson and Smith in a house located at 279 Avenue A in Rochester in furtherance of his drug distribution activity. With the help of several of co-conspirators, Anderson placed the victims' bodies in Clifford Robinson's vehicle and left the vehicle on Cutler Street in Rochester. Police found the bodies in the parked vehicle on Cutler Street on May 15, 2002, two days after the murders.
Anderson was sentenced to life in prison. Defendant Grimes was convicted of possession with intent to distribute, and conspiracy to distribute, crack cocaine and cocaine and sentenced to 135 months in prison.
On appeal, defendants argued that their convictions should be reversed based upon juror misconduct, insufficient evidence, and false testimony. They further argued that their sentences should be vacated as unreasonable. In rejecting each of defendants’ claims, the Judges of the Second Circuit concluded: “We have considered all of the defendants’ arguments on this appeal and find in them no basis for reversal. Accordingly, we AFFIRM the judgments of the district court.” A special jury verdict, determining that Anderson’s assets were subject to forfeiture in the amount of $1,000,000, was also affirmed.
Seven other defendants were also convicted in this case.
On appeal, the government was represented by Assistant U.S. Attorney Frank T. Pimentel. The trial was handled by Assistant U.S. Attorneys Frank H. Sherman and Everardo A. Rodriguez.
Corpus Christi Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 69-year-old Corpus Christi man has admitted he possessed child pornography, announced Acting U.S. Attorney Abe Martinez.
The investigation into Henry Franklin Reddick began after authorities received a CyberTipline report from The National Center for Missing & Exploited Children. The CyberTipline provides the public and electronic service providers with the ability to report online instances of child pornography. The CyberTipline report indicated that an individual using the email address of [email protected] had uploaded 79 images of suspected child pornography onto a cloud storage service.
Law enforcement was able to determine Reddick was associated with that email address and, in April 2015, agents executed a search warrant at his residence. At that time, agents seized various electronic devices during the search and a forensic analysis on those devices revealed more than 450 images and 13 videos of child pornography.
Sentencing is set for Aug. 8, 2017, before U.S. District Judge Nelva Gonzales Ramos. At that time, Reddick faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Reddick also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez and Elsa Salinas, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Corinna Man Sentenced to 11 Years on Cocaine and Oxycodone Trafficking ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Roger Belanger, 59, of Corinna, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to 11 years in prison and five years of supervised release for conspiring to distribute and possess with the intent to distribute oxycodone and cocaine. Belanger was convicted following a jury trial on August 19, 2016.
The evidence at trial revealed that between 2002 and 2014, the defendant and his daughter, Kelli Mujo, ran a cocaine and oxycodone distribution conspiracy that stretched from Rhode Island to the Dexter, Maine area. Belanger was central to the organization of the conspiracy and was directly involved in obtaining over 22 kilograms of cocaine and thousands of oxycodone pills in Rhode Island and arranging their transportation to Maine where it was distributed in Dexter and the surrounding communities.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Dexter Police Department, and the Penobscot and Somerset County Sheriff’s Offices.
Construction Company Partner Sentenced to 15 Months in Prison for Evading Taxes on More Than $1 MillionRead the Press Release
PANAMA CITY, FLORIDA –Patrick Shawn Kelley, 55, of Panama City Beach, was sentenced yesterday to 15 months in prison and $210,397 in restitution to the IRS, after pleading guilty to tax evasion in October 2016. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between 2009 and 2011, Kelley was a partner in American Construction Logistics and Services (ACLS), a construction company that performed work for the U.S. Government in Afghanistan. Kelley admitted that he failed to file tax returns for the 2009, 2010, and 2011 tax years on income consisting of $1,167,025.32 in wages, ACLS funds used for personal expenditures, and cash wired to Kelley’s wife from ACLS employees. In total, Kelley never paid the IRS $210,397 in taxes due and owing for the unreported income.
During the years 2010 and 2011, in an effort to conceal his income from the IRS, and without the knowledge or consent of his business partners, Kelley made significant personal expenditures directly from the ACLS bank account. The expenditures included $320,550 for the purchase of his personal residence in Panama City Beach; $156,000 for an ownership interest in a motorcycle shop; $44,000 for the purchase of a boat; $10,393 for the purchase of a Jeep Wrangler; and a $9,500 loan to a friend. Kelley also diverted funds totaling $353,520.37 from the ACLS corporate bank account to his personal bank accounts, and directed Afghan employees to wire cash to his wife.
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Special Inspector General for Afghanistan Reconstruction. Assistant United States Attorney Stephen M. Kunz prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information OfficerColumbus Man Sentenced for Dog-Fighting ConspiracyRead the Press Release
COLUMBUS, Ohio – Charles A. Granberry, 40, of Columbus, was sentenced in U.S. District Court to 72 months in prison for conspiring to participate in a dog-fighting ring in central Ohio, illegally possessing a firearm and violating the terms of his supervised release.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, Midwest Region, U.S. Department of Agriculture Office of Inspector General, Columbus Police Chief Kim Jacobs, Franklin County Prosecuting Attorney Ron O’Brien, and Capital Area Humane Society Executive Director Rachel D.K. Finney announced the sentence handed down today by U.S. District Judge James L. Graham.
According to court documents, an undercover law enforcement officer met with Granberry and others over a two-week period at two houses in Columbus in March 2016. The officer saw evidence indicating that the house was used to train, fight and sell dogs, including at least 20 fighting dogs in the rear yard of one house that were chained to heavy automobile axles buried in the ground.
Granberry described the fighting style of his dogs to the undercover officer and boasted about his dogs’ prowess during dogfights. He sold a dog to the undercover officer for $2,500 and advised that the dog could fight immediately because of its breeding and conditioning.
Officers executed search warrants on April 5, 2016 at five Columbus houses. Agents seized evidence including 46 dogs along with cages, treadmills, heavy chains and collars and other items. Agents found canine blood on the floor and walls of the basement of one home indicating that the area was used as a dog-fighting pit.
Officers arrested Granberry and seized firearms and documents connected to the dog-fighting operation. Granberry – who was a manager or supervisor of the operation, directing activities and controlling the money – has been in custody since his arrest.
At the time of the search warrant, Humane Society officials took extreme measure to ensure the safety of the seized dogs and the ASPCA provided animal behavioral specialists to conduct examinations of each dog. Some of the dogs reacted severely to loud noises and leashes during the examinations. For example, one dog latched on to a stuffed animal so aggressively that professionals had to cut the head off the toy.
Additionally, a large number of the dogs seized had a canine disease called Babesia Gibsoni, which results in anemia and ultimately death. The prevalence of the disease is unusually high in “bully breeds” used in dog-fighting operations through exposure to infected dogs’ blood and during non-sterile procedures such as tail docking, ear cropping and vaccinations of multiple animals with single needles.
Of the 46 dogs seized, specialists determined that 15 were eligible for placement in a shelter for adoption, and the remaining 31 dogs were euthanized for behavioral concerns or medical issues.
“The cruelty involved in this case is significant,” U.S. Attorney Glassman said. “Mr. Granberry bred, raised, and sold dogs to be severely injured or maimed in dogfighting, and his sentence today shows that we take such illegal behavior seriously.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals who conspire or commit crimes in violation of the Animal Welfare Act, illegally possess firearms and drugs or attempts to defraud other USDA programs,” said Anthony V. Mohatt, Special Agent in Charge, USDA-OIG-Investigations. “It should also serve as a warning to individuals that these matters will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in public safety and the enforcement of these statutes.
The USDA-OIG applauds the steadfastness resolution of the Columbus Police Department in this joint investigation and U.S. Attorney's Office to also prosecute these matters.”
Last week, a federal grand jury charged Dwayne T. Robinson, Jr., 33, and Henry Gerard James Hill, Jr., 21, both of Columbus, with conspiring to participate in the dog-fighting ring. Randall J. Frye, 58, also of Columbus, has pleaded guilty in U.S. District Court to the same charge.
U.S. Attorney Glassman commended the ongoing investigation by the USDA-OIG, Columbus Police, the Humane Society and the ASPCA, as well as Assistant U.S. Attorneys J. Michael Marous and Jessica W. Knight, and Franklin County Assistant Prosecutor Heather Robinson, who are representing the United States in this case.
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Canfield Man Charged in Conspiracy of Illegal Distribution of Weapons That Were Resold to Buyers from MexicoRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Paul A. Groves, 36, of Canfield, Ohio, with conspiring with others to illegally buy and resell military-grade semi-automatic firearms in a superseding indictment returned here yesterday.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the indictment.
The superseding indictment alleges that Groves, who operated High Powered Armory in Youngstown, provided false information in the purchase of firearms in order to fraudulently purchase military-grade weapons and resell them to illegal purchasers, who then resold them to Mexican buyers.
Co-defendant Eric L. Grimes, 47, of Columbus, operated Great Machine, LLC in Hilliard.
While High Powered Armory was a federal firearms licensee, Great Machine was not. In January 2015, Groves submitted an application to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to license Great Machine as a secondary location for High Powered Armory.
According to the superseding indictment, individuals in Indiana conspired to fraudulently acquire firearms from licensees for the purpose of transferring those firearms to illegal purchasers in Mexico. Groves allegedly negotiated with members of the Indiana group for the purchases of high-powered rifles that were then sold to buyers from Mexico who paid extremely high, marked-up prices.
For example, on January 28, 2015, Grimes accepted more than $48,000 in cash at Great Machine at the instruction of Groves and on his behalf as payment for the anticipated purchase of rifles. Groves then transferred the weapons to members of the Indiana group at High Powered Armory a few weeks later. The Indiana individuals then drove to McAllen, Texas and re-sold them to buyers from Mexico.
Gun Envy, LLC on Indianola Avenue in Columbus was also used as a meeting location on at least one occasion.
Groves is charged with one count of conspiracy to defraud the United States, which is punishable by up to five years in prison, and one count of receipt or possession of an unregistered firearm, which carries a potential maximum sentence of 10 years in prison.
Grimes pleaded guilty in U.S. District Court Wednesday to engaging in firearms business without a license, a crime punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by ATF, and Assistant United States Attorneys Kevin Kelley and Jessica H. Kim, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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California Man Sentenced to 15 Years in Prison for Attempted Sex Trafficking of ChildrenRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced today that United States District Judge Francisco A. Besosa sentenced 38-year-old Shane R. Yoder of Fairfield, CA, to serve a term of imprisonment of fifteen years followed by 20 years of supervised release. On December 16, 2016, Yoder pled guilty to one count of attempted sex trafficking of children, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In March 2016, the defendant traveled from California to Puerto Rico in order to pay for sex with multiple girls between the ages of 8-11 years of age.
“This case should send a message that human trafficking does, in fact, exist in Puerto Rico,” said U.S. Attorney Rodríguez. “Given the fact that human trafficking is a modern form of slavery, we must educate ourselves to protect our children from suffering from this vile form of exploitation”
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the sexual exploitation of children.
The criminal prosecution was handled by Special Assistant U.S. Attorney Cristina Caraballo-Colón.
Burley Man Charged with Illegal Drug TraffickingRead the Press Release
POCATELLO - Lucio Juarez, of Burley, Idaho, was indicted April 25, 2017, by a federal grand jury sitting in Pocatello for distribution of and conspiracy to distribute methamphetamine, Acting U.S. Attorney Rafael Gonzalez, announced.
The indictment alleges that between December 2016 and April 2017, Juarez conspired with others to distribute and possess with intent to distribute methamphetamine. In addition, Juarez is alleged to have distributed methamphetamine on four occasions within the timeframe of the conspiracy. Law enforcement executed search warrants in Burley and Heyburn on Wednesday, April 26th, related to the case.
The charges of conspiracy to distribute methamphetamine and distribution of methamphetamine are punishable by a term of imprisonment of no less than five and up to forty years, a maximum fine of $5,000,000, and at least four years of supervised release.
A trial is set for July 3, 2017 before U.S. District Chief Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Idaho State Police, the Cassia County Sheriff’s Office, and the Minnedoka County Sheriff’s Office.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Blood Testing Laboratory to Pay $6 Million to Settle Allegations of Kickbacks and Unnecessary TestingRead the Press Release
Quest Diagnostics Inc. has agreed to pay $6 million to resolve a lawsuit by the United States alleging that Berkeley HeartLab Inc., of Alameda, California, violated the False Claims Act by paying kickbacks to physicians and patients to induce the use of Berkeley for blood testing services and by charging for medically unnecessary tests. Quest, which is headquartered in Madison, New Jersey, acquired Berkeley in 2011, and ended the conduct that gave rise to the settlement.
“We rely on doctors to provide honest, independent recommendations regarding clinical testing,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Companies that pay kickbacks to referring doctors corrupt those doctors’ independence, leaving patients vulnerable to expensive and unnecessary testing.”
Physicians refer their patients to independent laboratories like Berkeley to conduct tests on blood samples. According to the government’s complaint, Berkeley paid kickbacks to referring physicians disguised as “process and handling” fees. The complaint also alleged that Berkeley paid kickbacks to patients by routinely waiving copayments owed by certain patients who were legally required to pay for part of their tests. Allegedly, Berkeley paid the kickbacks to induce both the physicians and patients who received them to choose Berkeley over other laboratories. The government’s complaint further alleged that these illegal practices resulted in medically unnecessary cardiovascular tests being charged to federal healthcare programs.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient. The Anti-Kickback Statute also prohibits routinely waiving patient copayments to ensure that patients are appropriately incentivized to refuse unnecessary tests.
“The South Carolina U.S. Attorney’s Office has dedicated considerable resources to pursuing fraud cases that divert federal tax payer dollars from important programs, like health care and defense contracting,” said U.S. Attorney Beth Drake of the District of South Carolina. “The goal for our qui tam unit is to protect taxpayers, patients, and soldiers by ensuring that important decisions are made according to medical science and engineering, and not based on dollar signs.”
“This settlement is part of the government’s ongoing efforts to address conduct that allows medical decisions to be influenced by money rather than the best interests of patients,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “Our office is pleased to defend the integrity of our healthcare system and to demand the return of ill-gotten gains.”
“We will not allow laboratories to provide financial incentives to induce physicians to steer patients their way,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) in Atlanta. “The Office of Inspector General will continue to work aggressively to eliminate this type of behavior which ultimately drives up healthcare costs and eliminates fair competition.”
The lawsuit was initially filed by Dr. Michael Mayes under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act permits the United States to intervene in and take over a whistleblower suit. The United States partially intervened in this and two related actions on March 31, 2015, and is continuing to pursue claims against the remaining defendants: Latonya Mallory, the former CEO of Health Diagnostics Laboratory Inc., and marketing company BlueWave Healthcare Consultants Inc. and its owners, Floyd Calhoun Dent III and Robert Bradford Johnson. Dr. Mayes’ share of the settlement with Quest has not been determined.
On April 9, 2015, the United States announced settlements with two other laboratories - Health Diagnostics Laboratory Inc. of Richmond, Virginia, and Singulex Inc., of Alameda, California - for engaging in conduct similar to that resolved in the settlement with Quest.
The government’s intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the District of South Carolina and the District of Columbia, FBI’s Columbia Field Office and the FBI Healthcare Fraud Unit Major Provider Response Team (MPRT), HHS-OIG, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.
The cases is captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
Blood Testing Laboratory to Pay $6 Million to Settle Allegations of Kickbacks and Unnecessary TestingRead the Press Release
WASHINGTON – Quest Diagnostics Inc. has agreed to pay $6 million to resolve a lawsuit by the United States alleging that Berkeley HeartLab Inc., of Alameda, California, violated the False Claims Act by paying kickbacks to physicians and patients to induce the use of Berkeley for blood testing services and by charging for medically unnecessary tests. Quest, which is headquartered in Madison, New Jersey, acquired Berkeley in 2011, and ended the conduct that gave rise to the settlement.
“We rely on doctors to provide honest, independent recommendations regarding clinical testing,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Companies that pay kickbacks to referring doctors corrupt those doctors’ independence, leaving patients vulnerable to expensive and unnecessary testing.”
“This settlement is part of the government’s ongoing efforts to address conduct that allows medical decisions to be influenced by money rather than the best interests of patients,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “Our office is pleased to defend the integrity of our healthcare system and to demand the return of ill-gotten gains.”
Physicians refer their patients to independent laboratories like Berkeley to conduct tests on blood samples. According to the government’s complaint, Berkeley paid kickbacks to referring physicians disguised as “process and handling” fees. The complaint also alleged that Berkeley paid kickbacks to patients by routinely waiving copayments owed by certain patients who were legally required to pay for part of their tests. Allegedly, Berkeley paid the kickbacks to induce both the physicians and patients who received them to choose Berkeley over other laboratories. The government’s complaint further alleged that these illegal practices resulted in medically unnecessary cardiovascular tests being charged to federal healthcare programs.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient. The Anti-Kickback Statute also prohibits routinely waiving patient copayments to ensure that patients are appropriately incentivized to refuse unnecessary tests.
“The South Carolina U.S. Attorney’s Office has dedicated considerable resources to pursuing fraud cases that divert federal tax payer dollars from important programs, like health care and defense contracting,” said U.S. Attorney Beth Drake of the District of South Carolina. “The goal for our qui tam unit is to protect taxpayers, patients, and soldiers by ensuring that important decisions are made according to medical science and engineering, and not based on dollar signs.”
“We will not allow laboratories to provide financial incentives to induce physicians to steer patients their way,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) in Atlanta. “The Office of Inspector General will continue to work aggressively to eliminate this type of behavior which ultimately drives up healthcare costs and eliminates fair competition.”
The lawsuit was initially filed by Dr. Michael Mayes under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act permits the United States to intervene in and take over a whistleblower suit. The United States partially intervened in this and two related actions on March 31, 2015, and is continuing to pursue claims against the remaining defendants: Latonya Mallory, the former CEO of Health Diagnostics Laboratory Inc., and marketing company BlueWave Healthcare Consultants Inc. and its owners, Floyd Calhoun Dent III and Robert Bradford Johnson. Dr. Mayes’ share of the settlement with Quest has not been determined.
On April 9, 2015, the United States announced settlements with two other laboratories - Health Diagnostics Laboratory Inc. of Richmond, Virginia, and Singulex Inc., of Alameda, California - for engaging in conduct similar to that resolved in the settlement with Quest.
The government’s intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the District of South Carolina and the District of Columbia, FBI’s Columbia Field Office and the FBI Healthcare Fraud Unit Major Provider Response Team (MPRT), HHS-OIG, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.
The cases is captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
Bank Robber Arrested by Westminster Police Department and FBI Rocky Mountain Safe Streets Task ForceRead the Press Release
DENVER – Christopher Dean Grisham, age 28, of Adams County, Colorado, was arrested last week by the Westminster Police Department and the FBI Rocky Mountain Safe Streets Task Force for bank robbery, the U.S. Attorney, FBI and Westminster Police Department announced. The defendant appeared in federal court this morning before a U.S. Magistrate Judge for a detention hearing. U.S. Magistrate Judge Kristen L. Mix ordered Grisham held without bond pending a resolution of his case. No trial date has yet been scheduled. The defendant is to appear in court on May 9, 2017 for a preliminary hearing.
According to court documents, on March 22, 2017, an individual robbed the U.S. Bank at 3454 West 72nd Avenue in Westminster. On March 29, 2017, that same individual robbed the Wells Fargo Bank located at 7401 Federal Blvd also in Westminster. After the March 22 bank robbery, investigators received a tip after someone saw an image of the bank robber, stating they believed the robber was Christopher Grisham. Special Agents and officers conducting the investigation showed the victim tellers of both banks a photo lineup which included a photo of Grisham. Both tellers identified Grisham as the individual responsible for the robbery.
Based on that information, a Criminal Complaint was obtained on April 21, 2017, charging Grisham with bank robbery. He was arrested, and then made his initial appearance on April 25, 2017, where he was advised of his rights and the charges pending against him. Bank robbery carries a penalty of not more than 20 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI Rocky Mountain Safe Streets Task Force and the Westminster Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Kurt Bohn.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury. The charges contained in the Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Attorney General Jeff Sessions Announces Dana Boente to Serve as Acting Assistant Attorney General of the National Security DivisionRead the Press Release
Attorney General Jeff Sessions today announced the appointment of Dana Boente as Acting Assistant Attorney General of the National Security Division. Boente succeeds Acting Assistant Attorney General Mary McCord, who serves as the Principal Deputy Assistant Attorney General and who recently announced that she would be departing in May.
“Dana Boente has been a dedicated public servant for decades and has served in important leadership roles in the Department of Justice,” said Attorney General Sessions. “In recent months, he has provided extraordinary leadership during the transition period. I am pleased that he has agreed to continue his service by leading our efforts to keep America safe. I also thank Mary McCord for her dedicated service to the department.”
Prior to this appointment, Boente had been serving as the Acting Deputy Attorney General since Jan. 30, 2017, and has served and will continue to serve as the U.S. Attorney for the Eastern District of Virginia since his confirmation by the U.S. Senate on Dec. 15, 2015. Boente was appointed by the Attorney General in December 2012 to serve as the U.S. Attorney for the Eastern District of Louisiana, a position he held until September 2013. Boente began his career with the Justice Department in 1984 with the Tax Division, and in January 2001 he became an Assistant U.S. Attorney in the Fraud Unit of the Eastern District of Virginia.
From 2005 to 2007, Boente served as the Principal Deputy Assistant Attorney General of the Tax Division. Following his service with the Tax Division, he returned to the Eastern District of Virginia when he was selected as the First Assistant U.S. Attorney. He served as acting U.S. Attorney for that office from October 2008 through September 2009 and from Sept. 23, 2013 until his Senate confirmation.
Atlanta Man Convicted in Federal Court Jury Trial in Charleston for Jewelry Store RobberiesRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Charleston, South Carolina --- United States Attorney Beth Drake announced today that Aquabeus Demond Moore, 37, of Atlanta, Georgia, was convicted following a four-day jury trial in United States District Court in Charleston. The Honorable Richard M. Gergel presided over the case.
Witness testimony and the evidence presented by the government during the trial established that Moore and others travelled from Atlanta to rob Sylvan Jewelers in Columbia, South Carolina, on February 19, 2015, and MP Demetre Jewelers in Charleston, South Carolina, on March 4, 2015. The jury convicted Moore of five separate counts, one count of Conspiracy to Commit Robbery Affecting Interstate Commerce, two counts of Robbery Affecting Interstate Commerce, and two counts of Brandishing a Firearm During a Violent Crime.
The conspiracy and robbery counts each carry up to twenty years imprisonment under 18 U.S.C. § 1951(a) and the gun charges carry a mandatory consecutive seven years plus twenty-five years imprisonment under 18 U.S.C. § 924(c).
A federal jury previously convicted Charles Johnson, one of Moore’s co-conspirators, of the same charges. The Honorable Richard M. Gergel sentenced Johnson to thirty-two years and one day on April 10 of this year.
The conviction is the result of an investigation conducted by the Federal Bureau of Investigations, City of Charleston Police Department and Columbia Police Department. Assistant United States Attorneys Nathan Williams and Emily Limehouse of the Charleston office prosecuted the case.
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Ashtabula man indicted on drug and firearms chargesRead the Press Release
An Ashtabula man was charged in federal court with drug trafficking and firearms crimes, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
George R. Williams, 35, was indicted on one count of possession with intent to distribute heroin, methamphetamine and crack cocaine; possession of firearms in furtherance of a drug trafficking crime; and of being a felon in possession of a firearms and ammunition.
Williams possessed heroin, methamphetamine and crack cocaine on Jan. 5 with the intent to distribute the drugs. On the same date, he possessed firearms in furtherance of the drug trafficking crime, according to the indictment
Williams possessed a Springfield, model XD40, .40 caliber pistol, a Lorcin, model L25, .25 caliber pistol, and ammunition on Jan. 5, after having been convicted in 2012 of heroin trafficking in the Ashtabula County Court of Common Pleas.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Ashtabula Police Department. The case is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
27 April 2017
Westminster, Maryland Man Indicted for Production and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Eric Wayne Grinder, age 36, of Westminster, Maryland, with three counts of production of child pornography and two counts of possession of child pornography. The indictment was returned on April 26, 2017.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Sheriff James T. DeWees of the Carroll County Sheriff’s Office.
According to the indictment, from June 2013 through August 2016, Grinder allegedly sexually abused a now 10-year old minor, and produced images of himself and the minor engaged in sexually explicit conduct. Further, Grinder used electronic communications devices to store and obtain visual depictions of minor victims engaged in sexually explicit conduct.
Grinder faces a maximum sentence of 30 years in prison for each of count of production of child pornography and a maximum of 20 years in prison for each count of possession of child pornography. An initial appearance has been scheduled in U.S. District Court in Baltimore on Thursday, May 4, 2017.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI, the Maryland State Police, the Carroll County Sheriff’s Office, and the Carroll County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul Riley and Paul Budlow, who are prosecuting the case.
United States Attorney’s Office Supports Advocacy Day for Access and IndependenceRead the Press Release
Contact Person: Rob Sneed (843) 266-1600
Columbia, South Carolina---- United States Attorney Beth Drake stated today that in its continued efforts to support the commitments in the Americans with Disabilities Act (ADA), the U.S. Attorney’s Office participated in Advocacy Day for Access and Independence this week.
This annual event was led by Able SC, which is a Center for Independent Living organization whose mission includes empowering people with disabilities to live active and self-determined lives. There were several different disability advocacy and support groups from around the state participating and hundreds of people attended the event.
South Carolina Governor Henry McMaster earlier issued a proclamation naming April 26, 2017 as Advocacy Day for Independence throughout the state to “encourage all South Carolinians to work together to destroy the barriers that hinder individuals with disabilities from becoming fully independent participants in our communities.”
AUSA Sneed’s remarks focused on the Department of Justice’s unwavering support of the Americans with Disabilities Act (ADA). AUSA Sneed referenced examples where the U.S. Attorney’s Office and the Department of Justice are opening gateways to full participation and opportunity for people with disabilities. This includes Project Civic Access, which is the DOJ’s wide-ranging effort to ensure that counties, cities, towns, and camps comply with the ADA by eliminating physical and communication barriers that prevent people with disabilities from participating fully in community life.
U.S. Attorney Drake noted that, “The ADA has been described as ‘the Emancipation Proclamation for people with disabilities.’ Others have described this landmark law as a vehicle that “secures for people with disabilities the most fundamental of rights: the right to live in the world. It ensures they can go places and do things that other Americans take for granted. If a person can work, it is critical for so many reasons that we eliminate artificial barriers that can obstruct their ability to work.” Recognizing that work remains to be done to create free access to employment and services, U.S. Attorney Drake noted that the U.S. Attorney’s Office and the Department of Justice will continue enforcement efforts until reaching the point so well-made nearly twenty-seven years ago by President George H.W. Bush, when he signed the ADA into law: “When every last shameful wall of exclusion for persons with disabilities finally comes tumbling down.”
#####USAO-EDNC Partners with Others for National Reentry WeekRead the Press Release
RALEIGH – The Department of Justice designated the week of April 24-28, 2017 as National Reentry Week. National Reentry Week, which was first observed in April 2016, is a week designed to highlight the efforts to assist formerly incarcerated individuals as they successfully return to and contribute to their communities. National Reentry Week seeks to promote a reduction in recidivism through the elimination of barriers to successful reentry as formerly incarcerated individuals compete for jobs, obtain stable housing, and seek to support for their families.
Prior to and during National Reentry Week, the U.S. Attorney’s Office for the Eastern District of North Carolina (USAO-EDNC) has participated in several recent events.
On March 29, 2017, USAO-EDNC hosted a Reentry Council Networking Forum where USAO-EDNC’s federal, state, and local partners gathered to share and discuss innovative ways to address barriers and service gaps that impact the success of formerly incarcerated individuals. Also, USAO-EDNC hosted a Focused Deterrence Call-In Forum whereby law enforcement and prosecutorial agencies from across the District gathered to learn about focused deterrence call-ins and how they can be utilized to decrease the recidivism rate and create safer communities.
On April 18, 2017, USAO-EDNC hosted a group of middle school students from Pitt County Sheriff’s Office’s Youth Program. Students learned about avoiding violence and gang activity by making good decisions. Several speakers shared statistics and real life examples to help the youth understand the consequences of making bad choices. In addition, students were provided with a guided tour of the federal building, featuring United States Marshal’s Offices and a federal courtroom.
As part of National Reentry Week, USAO-EDNC will join with other agencies to address reentry topics. On April 25th, USAO-EDNC joined with the U.S. Attorney’s Office, for the Middle and Western Districts of North Carolina, the United States Probation Office, the North Carolina Department of Public Safety, and the North Carolina Network for Safe Communities, in a joint meeting to discuss ways in which the federal districts and state agencies can collectively support the ongoing reentry work across the state. Today, USAO-EDNC is partnering with the Reentry Affairs Division of the Bureau of Prisons in Butner for two resource fairs, which will assist current inmates in preparing for their return to society at the end their incarceration.
National Reentry Week events are being planned in and across the United States. Various U.S. Attorney’s Offices and Bureau of Prison facilities are holding similar events.
EDNC U.S Attorney John Stuart Bruce stated: “The U.S. Department of Justice and our office are determined to reverse recent trends by reducing violent crime and illegal drug trafficking, which plague our communities. Reducing recidivism with effective reentry programs is an important part of this effort.”
U.S. Attorney’s Office urges public to participate in Drug Take Back driveRead the Press Release
SHREVEPORT, LAFAYETTE, MONROE, ALEXANDRIA, LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook urges the public to discard unused prescription drugs this weekend at area collection sites during Drug Take Back Day.
On October 22, 2016, the public turned in 731,269 pounds—almost 366 tons—of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds (more than 3,500 tons) of prescription drugs have been removed from medicine cabinets, kitchen drawers and nightstands by citizens around the country.
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused prescription drugs in 2015, including the almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Some painkiller abusers move on to heroin; four out of five new heroin users started with painkillers. Almost 30,000 people—78 a day—died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses because of these drugs. Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
The DEA will have collection sites across the country on Saturday, April 29, for those who are interested in bringing their unused or expired prescription drugs for proper disposal. Only pills and other solids, like patches, can be brought to the collection sites – liquids and needles or other sharp objects will not be accepted. The service is free and anonymous, no questions asked.
Prescription drugs can be dropped off from 10 a.m. to 2 p.m., April 29, at:
Shreveport
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Caddo Parish Sheriff’s Office, Sheriff’s Safety Town in the parking lot of Summer Grove Baptist Church, 8910 Jewella Ave.
Bossier City
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Bossier Parish Sheriff’s Office, Viking Drive Substation, 2510 Viking Drive
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Louisiana State Police Troop G office, 5300 Industrial Drive
Barksdale Air Force Base
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Barksdale Air Force Base Exchange, 455 Curtis Road
Monroe
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Louisiana State Police Troop F office, 1240 Highway 594
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Brookshire’s Food & Pharmacy, 1801 North 18th St.
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Brookshire’s Food & Pharmacy, 4070 Highway 165
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Super One, 2810 Louisville Ave.
West Monroe
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Brookshire’s Food & Pharmacy, 3426 Cypress St.
Alexandria
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Louisiana State Police Troop E office, 1710 Odom St.
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Alexandria Police Department, 1000 Bolton Ave.
Broussard
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Broussard Police Department at Walgreen’s parking lot, 105 St. Nazaire St.
Lake Charles
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Lake Charles Police Department at 900 Lake Short Drive (Civic Center)
Morgan City
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Walgreens, 815 Brashear Ave.
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Walmart Neighborhood Market parking lot, 1002 La.-70
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Walmart Super Center, 973 Highway 90-East
The public can also find other nearby collection sites by visiting www.dea.gov, clicking on the Take Back Day icon, and following the links to a database where they enter their zip code or call 800-882-9539.
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U.S. Attorney’s Office for the Southern District of Florida Reinforces its Commitment to Reducing RecidivismRead the Press Release
The United States Attorney’s Office for the Southern District of Florida and our partners continue to take significant steps to reduce recidivism and help formerly incarcerated individuals successfully contribute to their communities.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, recognizes the collective efforts of the South Florida Reentry Task Force, including the U.S. Attorney’s Office, U.S. District Court, U.S. Probation, Federal Public Defenders Office, law enforcement and diverse community stakeholders, to implement local reentry initiatives and support returning citizens.
“It is incumbent upon us all to support our returning citizens, because their success means a stronger, safer community for everyone,” stated Acting U.S. Attorney Benjamin Greenberg. “We cannot overstate the invaluable impact of programs and initiatives that offer services to our returning citizens. Having paid their debt to society, formerly incarcerated individuals should have the tools they need to gain lawful employment, obtain stable housing and support their families. South Florida reentry initiatives are designed to tear down the barriers and promote reintegration.”
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons, and another 11.4 million individuals cycle through local jails. The long-term impact of a criminal record prevents many returning citizens from obtaining employment, housing, a quality education, adequate health care, personal identification and even financial credit. These often-crippling barriers can contribute to a cycle of incarceration that makes it difficult for even the most well intentioned individuals to continue on the right path and avoid reentering the criminal justice system. Within the Southern District of Florida comprehensive reentry initiatives have been implemented to promote the successful reintegration of returning citizens and reduce recidivism. These efforts will help those who have paid their debt to society prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our communities.
Last year, the Southern District of Florida launched its first ever Reentry Court, known as the Court-Assisted Re-Entry (CARE) Initiative. The CARE Initiative is a problem-solving, collaborative effort between U.S. District Court, the U.S. Probation Office, the U.S. Attorney’s Office and Federal Public Defender representatives, and a Department of Justice Re-Entry Specialist. The CARE Team’s mission is to: help those returning from prison to become productive members of society by providing coordination for job training and placement, housing assistance, educational support, and the medical, substance abuse and mental health referrals; promote community safety by reducing recidivism and victimization; and reduce taxpayer spending on incarceration. Through weekly court sessions, the CARE Team assesses each participants’ progress, addresses any issues with his or her reentry, decides whether wrap-around services can be provided, and determines appropriate rewards and/or sanctions. Earlier this year, the CARE Team celebrated the first graduate of the Reentry Court initiative.
In 2011, The United States Attorney’s Office established the Violence Reduction Partnership (VRP) to address violent crime, gang activity and firearms offenses that plague communities in the Southern District. The VRP employs a holistic, three-pronged approach to violence reduction – one focused not only on enforcement, but also on prevention and reentry. Utilizing this multi-faceted approach, the VRP aims to reduce crime and promote safer and more resilient communities.
As part of the reentry prong of the VRP, the U.S. Attorney’s Office, alongside the Federal Bureau of Prisons, U.S. Probation and non-profit service providers have conducted Reentry and Resource (“in-reach”) Meetings at both the Federal Detention Center and the Federal Correctional Institution located in the Southern District. The meetings provide inmates preparing to be released from incarceration with the tools and information they need to navigate their successful reentry into society and reduce their risk of recidivism. Since 2013, more than 965 individuals have attended the meetings and received a Reentry Resource Guide. Acting U.S. Attorney Greenberg joined the most recent in-reach meeting on April 25, 2017 at the Federal Detention Center. Additionally, since 2012, the U.S. Attorney’s Office has been actively involved with Reentry Fairs at state correctional institutions and has connected with more than 3,261 inmates before their release.
The U.S. Attorney’s Office and our community partners also continue to support the South Florida Reentry Center Hub, a traveling one-stop service center for returning citizens and their families. The Reentry Center Hub provides returning citizens with easy, centralized access to a variety of reentry services within their local communities. Since 2014, Reentry Center Hub events, held in Fort Pierce, Miami Gardens, Liberty City and Goulds, Florida, have reached more than 856 returning citizens and their families.
Additionally, the U.S. Attorney’s Office and the Florida Department of Corrections continue to host Job Preparedness Workshops for returning citizens. The workshops provide individuals with the information they need to seek, gain and maintain lawful employment. The curriculum focuses on a variety of areas, including the development of resume writing, application and interview skills. Since 2013, the workshops have offered services to 58 returning citizens.
Tomorrow, the U.S. Attorney’s Office will host a Re-Entry Simulation to offer more than 60 members of the community an opportunity to experience the challenges that returning citizens experience, while reintegrating into society while on probation and supervised release. Last fall, the Office hosted two successful Re-Entry Simulation events.
The goal of the Office’s reentry initiatives is to build a fair, safe and more inclusive local community.
Additional information regarding the CARE and VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
U.S. Attorney’s Office Honors Citizens, Policymakers and Officers for Exceptional Efforts to Address New Mexico’s Opioid EpidemicRead the Press Release
ALBUQUERQUE – The U.S. Attorney’s Office today recognized fifteen individuals for their exceptional efforts to address New Mexico’s opioid epidemic and to attain the goals of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative during its Thirteen Annual Law Enforcement Awards Ceremony in Albuquerque, N.M. Acting U.S. Attorney James D. Tierney commended the following individuals for their important roles in solving the multi-faceted problems caused by the opioid epidemic:
Bernalillo County Commissioner Maggie Hart Stebbins, District 3, and Dr. William Wiese, Chair, Coordinating Committee of the Bernalillo County Opioid Accountability Initiative, were recognized for working with policymakers and local government to develop a coordinated response to the heroin and opioid epidemic through the Bernalillo County Opioid Accountability Initiative. Commissioner Hart Stebbins has been the driving force behind the Initiative, a multi-sectoral collective impact strategy to align the activities of governmental, non-profit, business and community leaders to strengthen the prevention, treatment, harm reduction, and law enforcement/criminal justice systems in Bernalillo County, and Dr. Wiese serves as the Chair of the Initiative’s Coordinating Committee. Through their efforts, Bernalillo County has taken significant strides in providing support and treatment for individuals struggling with addiction, increasing the availability of naloxone, providing medically assisted treatment (MAT) in its detention center, and raising awareness throughout the County.
Albuquerque City Councilor Diane Gibson, District 7, was recognized for her leadership role in promoting public awareness of naloxone, a life-saving medication that reverses the effects of an opioid overdose, is easy to administer and safe to use. Councilor Gibson kicked off a public awareness campaign in April 2016, to educate the community about naloxone, and to encourage those who keep narcotic painkillers in their homes or who have family members or friends who are addicted to heroin or prescription painkillers to keep emergency doses of naloxone on hand. Councilor Gibson was a leader in the effort that resulted in legislation making naloxone available in numerous city-owned facilities throughout Albuquerque and requiring that officers of the Albuquerque Police Department be equipped with and trained to administer naloxone.
Dr. Joanna Katzman, Medical Director, UNM Pain Clinic, UNM Health Sciences Center, was recognized for her critical role in the enactment of the first-of-its-kind legislation supported by the UNM Health Sciences Center to make a life-saving drug that reverses the effects of opioid overdoses more widely available to New Mexicans. House Bill 370 puts naloxone into the hands of law enforcement officers and makes the medication available to individuals undergoing narcotic replacement therapy and newly released inmates diagnosed with opioid addiction. Dr. Katzman previously played a key role in enactment of legislation requiring continuing medical education (CME) training in the treatment of chronic pain, and participated in developing the mandatory CME program for physicians and physician assistants that ensures that healthcare providers in New Mexico pursue evolving best practices in pain and addiction treatment.
Dr. Snehal R. Bhatt, Medical Director of Addictions and Substance Abuse Programs, UNM Psychiatric Center, was recognized for his outstanding efforts to improve access to addiction treatment in communities across New Mexico, exploring novel pharmacological treatments for addictive illnesses, and educating medical students, residents and medical professionals throughout New Mexico and across the country. Dr. Bhatt is part of the UNM Health Sciences Center team collaborating with the Indian Health Services (IHS) to combat the disproportionate misuse of opioids by Native Americans by using telehealth technology to provide training in best practices in chronic pain management to thousands of IHS health care providers.
Chief Medical Investigator Kurt Nolte, Medical Investigator Hannah Kastenbaum and Forensic Pathologist Karen Cline-Parhamovich of the New Mexico Office of the Medical Investigator (OMI), were recognized for their outstanding contributions to combatting New Mexico’ opioid epidemic. OMI is on the front-line of the opioid epidemic. Through the leadership of Dr. Nolte, Dr. Kastenbaum and Dr. Cline-Parhamovich, OMI has emerged as integral information-sharing partner in the HOPE Initiative. OMI is working closely with the U.S. Attorney’s Office in an effort to create a real-time surveillance model for all drug-related deaths. Such model would be the first of its kind and would enable both health and public safety officials to work in lockstep to address this devastating problem.
Executive Director Jennifer Weiss-Burke and Prevention Specialist Lou Duran of Healing Addiction in Our Community were recognized for raising community awareness of the dangers of opioid abuse and addiction. HAC is a non-profit organization founded seven years ago by concerned parents and grandparents, and is dedicated to providing education and awareness about the heroin and opiate epidemic that plagues our state. HAC provides the voices for those who have lost their lives to addiction and for those who continue to struggle. Years before the rest of the country realized that the opioid epidemic was looming, Ms. Weiss-Burke, Ms. Duran and HAC were using their personal stories to draw attention to this critically important issue. The HOPE Initiative continues to be inspired by Ms. Weiss-Burke, Ms. Duran and HAC, and the U.S. Attorney’s Office is proud to collaborate with them on HOPE’s education and prevention efforts.
Susan McKee, Counseling Manager, Albuquerque Public Schools, was recognized for her outstanding work supervising and coordinating the Crossroads Counselors Program. APS’s seven Crossroads Counselors educate students on substance abuse and help students with drug issues overcome their problems so they may successfully further their lives and educations. Crossroads Counselors all have master's degrees, school counselor licenses and training in substance abuse counseling. Ms. McKee and the Crossroad Counselors support and participate in the prevention and education component of the HOPE Initiative by including Generation Rx, DEA and the U.S. Attorney’s Office in their substance abuse programs, and by providing guidance on HOPE presentations to ensure that they are relevant and relatable to teens and young adults.
Brittany Haggard, a Pharm. D. candidate at the UNM College of Pharmacy and 2016 Chairperson of Generation Rx, was recognized for her outstanding support of and participation in the prevention and education component of the HOPE Initiative. Generation Rx is an educational outreach program of the UNM College of Pharmacy that educates middle school, high school and college students, parents and senior citizens about the dangers of prescription drug misuse. Ms. Haggard and other Generation Rx members collaborated with the U.S. Attorney’s Office and DEA in presenting prevention programs to thousands of students in 2016.
Three law enforcement officers of the Drug Enforcement Administration were recognized for their outstanding support of and participation in the prevention and education component of the HOPE Initiative. Working with Generation Rx and the U.S. Attorney’s Office, they regularly participate in the Albuquerque Public Schools’ Parent Involvement Program (PIP). The PIP provides an alternative to long-term suspensions for students who are caught on campus with drugs or alcohol that requires students and their parents participate in a series of counseling sessions that help students get back on track by focusing on communication, problem solving and the effects of drugs.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
U.S. Attorney’s Office Honors 123 Officers and Citizens for Exceptional Contributions to Public Safety in New MexicoRead the Press Release
ALBUQUERQUE – The U.S. Attorney’s Office today honored 111 law enforcement officers, agents and investigators for their outstanding work on dozens of cases that led to the convictions of murderers, sexual predators, drug dealers, fraudsters, and other criminals during an awards ceremony in Albuquerque, N.M. Twelve private citizens and policymakers also were recognized for exceptional contributions to the Office’s public safety initiatives addressing the opioid epidemic, youth prevention and education programs, officer safety, and national security. The ceremony, held at the Vincent E. Griego Council Chambers of the Albuquerque/Bernalillo County Government Center, drew a large crowd of prosecutors and staff from the U.S. Attorney’s Office, leaders of numerous federal, state, local, and tribal law enforcement agencies, and representatives from the UNM Health Sciences Center, City of Albuquerque, Bernalillo County, Albuquerque Public Schools, and community organizations.
Acting U.S. Attorney James D. Tierney said the Office’s Thirteenth Annual Law Enforcement Awards Ceremony recognized the outstanding work performed by honorees in 2016 on a wide variety of investigations, including those involving violent crimes, narcotics trafficking, fraud and public corruption, and national security matters. It also distinguished the exceptional efforts of some of New Mexico’s most distinguished, dedicated, and deserving private citizens and policymakers. The efforts recognized during the ceremony represent only a small portion of the remarkable work performed by law enforcement and citizens on behalf of the communities.
“The many men and women being honored today exemplify the professionalism, dedication, and commitment to public service shown by law enforcement, private citizens, and policymakers throughout New Mexico each and every day,” said Acting U.S. Attorney Tierney. “This ceremony is a way to express our appreciation to the officers and agents on the front lines of justice, as well as the private citizens and policymakers who work tirelessly to make New Mexico stronger, safer, and more just.”
Former U.S. Attorney Damon P. Martinez also was honored during the ceremony for his service as U.S. Attorney for the District of New Mexico from May 2014 to March 2017, as well as an Assistant U.S. Attorney from 2001 to 2014. Mr. Martinez received accolades from the leaders of numerous law enforcement agencies. Dr. Paul B. Roth, Chancellor of the UNM Health Sciences Center, honored Mr. Martinez for collaborating with him in establishing the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative, a program which seeks to protect our communities from the dangers associated with heroin and opioid painkillers and to reduce the number of opioid-related deaths in New Mexico.
The ceremony honored the achievements of law enforcement officers from a multitude of federal, state, local, and tribal agencies. In addition to law enforcement, the ceremony also recognized the achievements of private citizens who have improved the safety and lives of the citizens of New Mexico.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in New Mexico, as well as with representing the federal government in civil litigation. The District is composed of approximately 80 Assistant U.S. Attorneys and approximately 91 staff members at offices located in Albuquerque and Las Cruces. Today’s ceremony recognized work undertaken in collaboration with the Albuquerque office of the U.S. Attorney’s Office. A separate ceremony in Las Cruces will recognize work undertaken in collaboration with the Las Cruces office.
U.S. Attorney's Office and DEA announce National Prescription Drug Take Back Day collection sitesRead the Press Release
CHARLESTON, W.Va. – The United States Attorney’s Office for the Southern District of West Virginia and the Drug Enforcement Administration’s Charleston District Office announced today the location of collection sites for the Drug Enforcement Administration’s National Prescription Drug Take Back Day. The event provides safe venues for West Virginians to responsibly dispose of prescription drugs. National Prescription Drug Take Back Day is on Saturday, April 29, 2017, from 10:00 a.m. until 2:00 p.m. Anyone can properly dispose of prescription medication by visiting one of several conveniently located collection sites throughout West Virginia.
“West Virginians know that opioid abuse is at a crisis level. Our state leads the nation in drug overdose deaths, and the widespread prevalence of unused prescription medication is a significant contributor to the problem,” stated United States Attorney Carol Casto. “Prescription Drug Take Back Day is an opportunity to get rid of a substantial part of the pain pill supply available for abuse. I urge everyone to do their part to fight drug abuse by going to a collection site and safely disposing of unused, expired, and dangerous prescription medication.”
“Last year, we lost more than 52,000 Americans to drug overdoses, more than 33,000 of those were from opioids. This program gives West Virginians an opportunity to rid their households of unwanted prescription medications without question. These are prescriptions that won’t have a chance to get diverted in an illegal manner,” stated Assistant Special Agent in Charge David Gourley of the Drug Enforcement Administration’s Charleston District Office.
Nearby collection sites can be found by visiting www.dea.gov, clicking on the “Take-Back Site Locations” icon, and searching by zip code, county, city, and state. Another option for locating collection sites is to call 800-882-9539. West Virginians have the option of visiting over 90 sites throughout the state to dispose of prescription drugs. Only pills and other solids, such as patches, can be brought to collection sites – liquids, needles, or other sharps will not be accepted.
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Two Men Sentenced to More Than Twenty Years Each for the Armed Robbery of Multiple Bay Area BusinessesRead the Press Release
OAKLAND– Shawan I. Spragans and Merl J. Simpson were sentenced in federal court in Oakland today to serve prison sentences of 23 years and 20 years, respectively, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The defendants each were also ordered to pay $2,014 in restitution stemming from an armed robbery spree committed in the Bay Area between approximately February 1, 2016, and April 21, 2016. The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, U.S. District Judge, following guilty pleas entered by the defendants on January 13, 2017, to conspiracy, attempt, and multiple robberies affecting interstate commerce (Hobbs Act robbery). The defendants each also pleaded guilty to discharging a firearm in furtherance of Hobbs Act robbery, and being a felon in possession of firearms.
According to their plea agreements, on March 3, 3016, Spragans, 41, of Oakland, and a co-conspirator entered a Berkeley pharmacy wearing masks, gloves, and dark-colored clothing, pointed a firearm at employees and customers, and stole cash from a register. Simpson, 47, of Antioch, drove the getaway vehicle. On March 20, 2016, Spragans and a co-conspirator entered a barbecue restaurant in Berkeley wearing masks and dark clothing, and forced three employees at gunpoint to stand still while Spragans and his co-conspirator robbed the restaurant. They also robbed the employees of personal cash. They fled the restaurant with the stolen cash, and Simpson drove them away in the getaway vehicle. On April 7, 2016, Spragans and a co-conspirator entered an Ethiopian restaurant in Berkeley wearing masks and dark clothing. They each pointed revolvers at two female employees and robbed them of the restaurant’s cash. Spragans entered the kitchen and encountered another employee, who struggled with Spragans as the employee attempted to escape. During that physical encounter, Spragans fired a bullet at the employee from his revolver. The bullet missed the employee. Spragans and his co-conspirator then fled the restaurant with the stolen cash, and Simpson drove them away in the getaway vehicle. Simpson also admitted that, earlier on April 7, 2016, prior to robbing the Ethiopian restaurant, he and a co-conspirator robbed a pizzeria in San Francisco at gunpoint. Finally, on April 21, 2016, Spragans and Simpson attempted to rob a bar in San Francisco at gunpoint. However, police already were in place conducting surveillance on the location and arrested the defendants as they attempted to flee the area. The police also arrested a co-conspirator, who was waiting in the getaway car.
Spragans and Simpson were indicted by a federal grand jury on June 30, 2016. They have remained in federal custody since they made their initial appearances in federal court on July 7, 2016. They pleaded guilty on January 13, 2017.
In addition to the prison terms, Judge Gonzalez Rogers also sentenced each defendant to a five-year term of supervised release.
Assistant U.S. Attorney Bill Gullotta is prosecuting the case with the assistance of Michelle Alter Eck and Trina Khadoo. The prosecution is the result of an investigation by the FBI and the Berkeley, San Francisco, San Leandro, and Albany Police Departments.
Torrington Woman Sentenced to 21 Months in Federal Prison for Health Care FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PATRICIA LAFAYETTE, 62, of Torrington, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 21 months of imprisonment, followed by three years of supervised release, for committing health care fraud. Judge Bolden also ordered LAFAYETTE to serve her first six months of supervised release in home confinement, and to pay restitution of $1.6 million.
Accprding to court documents and statements made in court, in March 2011, LAFAYETTE and another individual approached Anne Charlotte Silver, a licensed clinical social worker who owned and operated Silver Counseling Services, LLC, in Canton and Bantam. LAFAYETTE, the other individual, and Silver all agreed to engage in a scheme to defraud Medicaid in which Silver permitted LAFAYETTE and the other individual to bill Medicaid for licensed psychotherapy services using Silver’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Silver kept 25 percent of the proceeds, and paid the remaining 75 percent to LAFAYETTE and the other individual.
Over the next four years, LAFAYETTE submitted more than 18,000 false claims for psychotherapy using Silver’s provider number. LAFAYETTE regularly submitted the claims twice a month, every month, over this period. The claims included more than $71,000 in false claims for psychotherapy services purportedly provided to LAFAYETTE’s daughter and grandchildren, and more than $67,000 in false claims for psychotherapy services provided to LAFAYETTE’s son’s girlfriend and her children. As part of her plea, LAFAYETTE admitted to defrauding Medicaid of more than $1.6 million through the scheme, of which LAFAYETTE received more than $1.2 million.
On July 15, 2016, LAFAYETTE pleaded guilty to one count of health care fraud.
On May 2, 2016, Silver pleaded guilty to the same charge. She is scheduled to be sentenced on May 8.
In addition, LAFAYETTE’s son, Maurice Sharpe, pleaded guilty to the same charge on December 13, 2016. He is scheduled to be sentenced on June 19.
“As Judge Bolden recognized in his remarks imposing this sentence, Medicaid fraud is a serious offense,” stated Attorney Daly. “One of the most important benefits the Medicaid program provides is mental health counseling to individuals who cannot themselves afford to pay for such services. Through her actions, the defendant in this case stole $1.6 million needed state and federal tax dollars dedicated to providing mental health counseling, resulting in less money to provide this vital medical care to Medicaid clients. My Office is committed to working with our state partners to vigorously protect the Medicaid program.”
“I commend the Medicaid Fraud Control Unit in the Office of the Chief State’s Attorney and the Office of the Inspector General of the U.S. Department of Health and Human Services for their work on this case and continued collaboration to preserve the integrity of government programs that exist to serve those in need,” said Chief State’s Attorney Kevin T. Kane.
“Medicaid provides health care services to some of the most vulnerable members of our society, and it’s our agency’s mission to ensure the program funds are spent properly,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our federal and state partners, we will continue to hold accountable anyone who attempts to enrich themselves by fraudulently billing for Medicaid services.”
The criminal case was jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office. U.S. Attorney Daly thanked the Connecticut Department of Social Services and the Connecticut Attorney General’s Office for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Connecticut Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Tony Torrez Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Tony Derrick Torrez, 33, of Albuquerque, N.M., pled guilty today in federal court to drug trafficking and firearms charges. The plea agreement recommends that Torrez be sentenced to a term of imprisonment within the range of 93 to 101 months followed by a term of supervised release to be determined by the court. The plea agreement also requires Torrez to forfeit to the United States $64,000 in drug proceeds and firearms and ammunition seized during the investigation of the case.
The guilty plea was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Will R. Glaspy of the El Paso Division of the DEA, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Gorden E. Eden Jr., of the Albuquerque Police Department (APD).
Torrez was charged in a federal criminal complaint in Oct. 2015, with possession of marijuana with intent to distribute and using and carrying firearms in relation to drug trafficking crimes. According to the complaint, committed these crimes on Oct. 21 and 22, 2015, in Bernalillo County, N.M. was subsequently charged in a five-count indictment with possessing marijuana with intent to distribute; maintaining a place for the purpose of distributing controlled substances; possession of cocaine, testosterone and its esters; possession of firearms and ammunition by an illegal drug user; and possessing firearms and ammunition in relation to a drug trafficking crime. The indictment asserted that committed these five crimes on Oct. 21, 2015, in Bernalillo County.
According to court filings, the federal investigation into Torrez began on Oct. 21, 2015, when APD received a tip about a suspect who shot and killed a child during a road rage incident; the tipster provided a residential address for the suspect. Based on the tip, APD officers conducted surveillance at the residence where they observed a man, subsequently identified as Torrez, load items into a Toyota sedan. APD officers later conducted a traffic stop on the Toyota after a woman drove away from the residence in the Toyota. Shortly thereafter, APD officers conducted a traffic stop on a Lexus sedan that drove away from the residence and identified the driver as Torrez. APD sealed and towed the two vehicles to the APD Crime Lab.
On Oct. 21, 2015, APD executed a state search warrant at the aforementioned residence where they found shoeboxes containing U.S. currency, paraphernalia and other items consistent with the use of marijuana and a substance believed to be “wax,” a concentrated form of THC oil processed from the marijuana plant. Thereafter, the DEA executed a federal search warrant on Torrez’s residence and the two vehicles and seized items and paraphernalia used for distributing marijuana and possibly for the manufacturing THC “wax” and oil. From the vehicles, the officers seized a bag with U.S. currency, marijuana, firearms and ammunition, a bullet-proof vest, a small amount of suspected cocaine, and drug paraphernalia. Court filings indicate that approximately $64,000.00 in cash was seized from Torrez’s residence and vehicles.
During today’s proceedings, Torrez pled guilty to all five counts of the indictment. In his plea agreement, Torrez admitted possessing marijuana in Oct. 2015 that he intended to distribute to others as well as illegal steroids for his personal use. Torrez also admitted possessing several firearms while he was using the illegal steroids to protect himself from the dangers of the drug trafficking business. Finally, Torrez admitted using his residence to store marijuana he sold.
Torrez previously pled guilty in Dec. 2016, to related state court charges arising out of the murder of a child during the Oct. 21, 2015 road rage incident, and was sentenced to a 16-year term of imprisonment. Under the terms of the plea agreement in the federal case, ’ federal sentence will run consecutive to at least 15 of the 16-year state prison sentence. remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque offices of the DEA and Bureau of Alcohol, Tobacco, Firearms and Explosives and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Paul Mysliwiec and Nicholas Ganjei are prosecuting the case.
Three Southern Arizona Men and One Woman Sentenced to Lengthy Prison Terms for Exporting Firearms, Ammunition, and Silencers to Hong KongRead the Press Release
TUCSON, Ariz. – Yesterday, Peter Steve Plesinger, 55, of Sahuarita, Ariz., and Stephen Edward Smith, 63, of Tucson, Ariz., were sentenced by U.S. District Judge James A. Soto to 87 months and 102 months, respectively, in prison. Both men had previously pleaded guilty to exportation of munitions from the United States to Hong Kong, dealing firearms without a license, and money laundering. Two other defendants, Irina Cvetkovic and Earl Richmond, both of Sahuarita, Ariz., also were charged and convicted for their lessor roles in the conspiracy.
On June 27, 2014, law enforcement authorities in Hong Kong intercepted a package containing 139 rounds of ammunition that had been shipped from Arizona by Plesinger. A search of the intended recipient’s Hong Kong residence resulted in the recovery of three rifles, two pistols, four rifle barrels, a silencer, and at least 9,000 rounds of ammunition. Further investigation revealed that Plesinger had previously shipped those items to Hong Kong in packages with innocuous labels, that Plesinger had been paid at least $64,500 to ship large quantities of firearms, ammunition, and silencers to Hong Kong, and that Smith had been paid at least $59,550 for making similar shipments.
“The sentences imposed in this case should send a strong message to those who would consider illegally exporting firearms, ammunition, or silencers to other countries,” stated Acting United States Attorney Elizabeth A. Strange. “We will continue to work diligently with our national and international partners to vigorously investigate and prosecute such conduct.”
"I wish to compliment the tenacity of the ATF agents and prosecuting attorneys that brought this case to a successful conclusion. Our agents left no stone unturned as they doggedly pursued these criminals and brought them to justice. ATF will continue our role in enforcing violations of the federal firearms and explosives laws both domestically and in this case internationally," stated Assistant Special Agent in Charge, Mark Murray.
"HSI with our domestic and international law enforcement partners, is dedicated to making communities safer by bringing criminals to justice. The sentences of the defendants is a direct result of the steadfast efforts of federal agents to prevent firearms from falling into the hands of transnational criminal organizations who pose a threat to public safety both here and abroad,” said Scott Brown, special agent in charge of HSI Phoenix.
The investigation in this case was conducted by the Department of Homeland Security-Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, United States Customs and Border Protection (Los Angeles), the Hong Kong Customs and Excise Department, the Hong Kong Police Force, and the Hong Kong Department of Justice. The prosecution was handled by Serra M. Tsethlikai and Angela Martinez, Assistant U.S. Attorneys, District of Arizona, Tucson, with substantial assistance from the Department of Justice’s Office of International Affairs.
CASE NUMBER: CR-14-1362-TUC-JAS
RELEASE NUMBER: 2017-038_Plesinger et al
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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The U.S. Attorney’s Office Supports DEA’s Prescription Drug Take-Back DayRead the Press Release
The U.S. Attorney’s Office for the Southern District of Florida encourages the public to participate in the Drug Enforcement Administration’s (DEA) National Prescription Drug Take-Back Day this Saturday, April 29, 2017.
“The collective goal of the U.S. Attorney’s Office, DEA and concerned South Florida residents is to prevent potentially dangerous controlled substances from falling into the wrong hands,” stated Acting U.S. Attorney Benjamin G. Greenberg. “The rate of prescription drug abuse is staggering. We are now confronted with a horrific reality – that overdoses from all drugs are the leading cause of injury-related deaths, eclipsing the tragic loss of life from motor vehicle crashes or firearms. Turning in your outdated or unused prescription drugs is one step forward, in a united front to combat the epidemic of addiction, overdoses and death.”
On October 22, 2016, the public turned in 731,269 pounds—almost 366 tons—of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds (more than 3,500 tons) of prescription drugs have been removed from medicine cabinets, kitchen drawers, and nightstands by citizens around the country.
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused controlled prescription drugs (CPDs) in 2015, including the almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Tragically, some painkiller abusers move on to heroin: four out of five new heroin users started with painkillers. Almost 30,000 people —78 a day—died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
The Prescription Drug Take-Back initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
On Saturday, collection sites will be set up throughout communities nationwide – including in the Southern District of Florida. To locate a collection site near you, go to the DEA Office of Diversion Control web site at https://www.deadiversion.usdoj.gov/drug_disposal/takeback where you can search by zip code, city, or state. The service is free and anonymous.
Stratford Man Charged with Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANTHONY LEE PAROWSKI, 29, of Stratford, has been charged by federal criminal complaint with possession with intent to distribute, and distribution of, heroin.
PAROWSKI was arrested on April 25. He appeared yesterday before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained. The offense carries a maximum term of imprisonment of 20 years.
As alleged in the criminal complaint, in March 2017, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Milford Police Department received information that PAROWSKI was distributing heroin to numerous individuals. In April 2017, investigators conducted two controlled purchases of heroin from PAROWSKI, the second of which occurred in a Milford motel room that PAROWSKI had rented. On April 20, investigators approached PAROWSKI as he exited the motel carrying a cardboard box. PAROWSKI dropped the box and ran, and was observed discarding items as he ran. He was apprehended after a brief pursuit. A search of PAROWSKI’s person, the cardboard box and the area of the chase revealed approximately 190 dose bags of heroin, 66 grams of additional heroin, and items used to process and package heroin for street sale. A subsequent search of PAROWSKI’s Stratford residence revealed $32,210 in cash.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Smuggler Gets Enhanced Sentence for Raping Undocumented Alien and Brandishing a MacheteRead the Press Release
McALLEN, Texas – A 53-year-old Mexican National has been ordered to federal prison for conspiring to harbor undocumented aliens, announced Acting U.S. Attorney Abe Martinez. Julio Puente-Oliva pleaded guilty Jan. 26, 2017.
Today, U.S. District Judge Micaela Alvarez sentenced Puente-Oliva to 70 months imprisonment. The court enhanced the sentence because he raped the victim and brandished a dangerous weapon during the course of the conspiracy. At the hearing, the court heard from a victim who testified how Puente-Oliva tried to forced her to consume alcohol and showed her a machete he kept underneath his mattress. She also stated that he said he would “use it if he had to.” She told the court that Puente-Oliva raped her and then threatened to kill her if she accused him of anything. In handing down the sentence, the court noted the sentence imposed was necessary to protect the public from further crimes of the defendant and to deter future criminal conduct.
From Oct. 1-3, 2016, Puente-Oliva conspired to harbor undocumented aliens in his residence in Edinburg, during which time he committed the sexual assault and threats. On Oct. 3, 2016, the victim escaped from the Edinburg stash home and ran to a nearby restaurant where she asked for police. The victim advised Edinburg Police officers that she had escaped from a stash house where she was sexually assaulted by the caretaker. She has also brought a 16-year-old undocumented alien with her who had been harbored in the same place.
Puente-Oliva will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Edinburg Police Department conducted the investigation. Assistant U.S. Attorney Alex Benavides prosecuted the case.