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25 April 2017
Federal, State and Local Law Enforcement Officials Promote DEA Prescription Drug Take-Back DayRead the Press Release
Middletown, Conn. – National Prescription Drug Take-Back Day is Saturday, April 29, and Connecticut residents are encouraged to bring their potentially dangerous, unwanted medicines to more than 60 collection sites around the state between 10:00 a.m. to 2:00 p.m.
Individuals can find a nearby collection site by visiting www.dea.gov and clicking on the “Take-Back Site Locations” link.
U.S. Attorney Deirdre Daly, DEA Assistant Special Agent in Charge Brian Boyle, Middlesex County Assistant State’s Attorney Peter McShane, Connecticut State Police Colonel Alaric Fox and Middletown Police Chief William McKenna convened at the Middletown Police Department this afternoon to promote the event. The Middletown Police Department will serve as a collection location for this Saturday’s Drug Take-Back Day.
“The opioid epidemic continues to ravage our state as it has states all across the country,” said U.S. Attorney Daly. “Thousands of Connecticut families have lost loved ones to drug overdoses. Tragically, last year alone 917 people in Connecticut died from an overdose and the numbers of deaths are increasing. Far too often the abuse started with painkillers or other prescription narcotics. Again and again, we find victims who were injured and became addicted to legally-prescribed opioids, or family members and friends who experiment with leftover pills they find in medicine cabinets. You may be surprised by the quantity and types of drugs you have in your home. I strongly urge you to collect all of your excess drugs and dispose of them this Saturday at one of more than 60 locations across our state. By doing so, you may be saving someone close to you from addiction, or much worse.”
“Many Americans are not aware that medicines that languish in home cabinets are highly vulnerable to diversion, misuse and abuse,” said DEA Special Agent in Charge Michael J. Ferguson. “Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs. Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse.”
“It is clear that the Take Back Days and the medication collection boxes at police stations have increased awareness of the serious problem of addiction and the need to properly dispose of over-the-counter prescription medicine,” said State’s Attorney McShane. “I am glad that police and prosecutors are taking a proactive approach to aid in the fight in the epidemic that we are faced with.”
“The Connecticut State Police, along with the balance of our law enforcement partners, remain fully committed to addressing the scourge of opioid addiction, through enforcement, education and community service,” said Colonel Fox. “The Drug Take Back Day is but one of the many steps law enforcement is committed to in order to combat this issue.”
“We are happy to, once again, participate in the DEA’s National Drug Take Back Day,” said Chief McKenna. “On Saturday, officers will be made available to any member of the public who wishes to drop off any unused, or expired, prescription medications. The timing of the event unfortunately comes as law enforcement agencies across the country are teaming up with other agencies, hospitals, medical providers and many other organizations in an attempt to combat the opioid epidemic. The goal is to educate the public on the risks associated with the use of these deadly chemicals. Local and federal law enforcement agencies continue to investigate the illegal distribution of these drugs to stop the street level dealing that has resulted in an extraordinary number of overdose deaths. We have also teamed up with the U.S. DOJ, the DEA and our local States Attorney’s office to ensure proper overdose investigation protocols are met, that teamwork is achieved and that communication continues to combat this deadly issue that is affecting more and more families across our city, state and nation.”
Many local police departments in Connecticut, and Connecticut State Police barracks, maintain permanent drop-off receptacles so the public can dispose of unneeded prescription medications anytime throughout the year with no questions asked. Click here for a list of these permanent locations.
U.S. Attorney Daly noted that the U.S. Attorney’s Office and DEA continue to spearhead a comprehensive enforcement and public awareness initiative to prevent opioid addiction and reduce the number of overdose deaths caused by heroin, fentanyl and prescription opioids.
The U.S. Attorney’s Office and DEA, working in close partnership with State’s Attorneys, Connecticut State Police and police departments across the state, are targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
As part of this initiative, local law enforcement officers are performing time-sensitive investigative techniques to preserve all evidence at the scene of an overdose death. Police contact the DEA at the early stages of an investigation and ensure that an autopsy of the decedent is performed. Investigators determine the events leading up to the death, the source of the drug involved, and the composition of the drug. Individuals responsible for distributing drugs causing overdose deaths will be prosecuted by federal or state authorities.
Since the beginning of 2016, as part of this initiative, the DEA, working with state and local counterparts, has conducted approximately 120 investigations, and the U.S. Attorney’s Office has prosecuted approximately 60 individuals.
Last week, the U.S. Attorney’s Office, DEA, Waterbury State’s Attorney and the Connecticut Office of the Chief Medical Examiner conducted opioid overdose death investigation training to approximately 180 police officers from across the state.
The U.S. Attorney’s Office also has formed a Heroin Action Education Team (HEAT), which has conducted opioid awareness presentations at numerous high schools and middle schools in Connecticut. The presentation typically includes an Assistant U.S. Attorney, a DEA special agent and a parent who has lost a child to a drug overdose. To date, these presentations have reached more than 15,000 students.
For more information on HEAT, please click here.
The HEAT presentations also include a showing of the FBI/DEA film “Chasing the Dragon,” and an opioid awareness video produced by the U.S. Attorney’s Office.
Federal Grand Jury Indicts Irving Woman on Wire Fraud Charges Stemming from $1 Million Ponzi SchemeRead the Press Release
DALLAS —Nemelee Liwanag Jiao, 47, of Irving, Texas, was indicted last week by a federal grand jury in Dallas, Texas, on two counts of wire fraud for orchestrating a Ponzi scheme that cost at least 35 investors more than $1,000,000, announced U.S. Attorney John Parker of the Northern District of Texas.
Jiao made her initial appearance last week before U.S. Magistrate Judge Ramirez, who ordered her to surrender her passport and released her on bond pending trial.
According to the indictment, beginning in February 2009 and continuing through September 2016, Jiao devised a scheme to cause individuals to invest in promissory notes purportedly issued by Shepherd’s Light Learning Center and Lord of Peace Learning Center, two non-profit schools located in the Philippines, but instead used the invested funds for her personal benefit. Jiao raised at least $1,000,000 from at least 35 investors.
Specifically, Jiao represented to investors that she was a representative of Shepherd’s Light and Lord of Peace and entered into investment contracts, also known as promissory notes, with investors falsely promising rates of return of 10% to 100% on investments. Jiao also promised repayment of principle and interest resulting from the investment within 30 days to one year following the investment. Many of the investment contracts were notarized to make the investments appear legitimate. Jiao then directed investors to write checks and wire funds to bank accounts controlled by her. Jiao used the investors’ funds for her own benefit, including a country club membership and personal expenses.
The indictment includes a forfeiture allegation that would require Jiao, upon conviction, to forfeit funds in the amount constituting the proceeds traceable to the offense.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for wire fraud is 20 years in federal prison and a $250,000 fine.
If you believe you were the victim of criminal fraud committed by Nemelee Liwanag Jiao, please contact the FBI at 972-559-5000.
The Federal Bureau of Investigation is in charge of the investigation. Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Father and Son Business Owners Get Prison Sentences for Failing to File TaxesRead the Press Release
ERIE, Pa. - Two residents of Warren, Pennsylvania, have been sentenced in federal court on their convictions of violating federal tax and currency transaction laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone sentenced John Branch, 45, of Warren, Pennsylvania, to 12 months and 1 day in jail, a $25,000 fine, and ordered to make restitution in the amount of $377,643.74. Judge Cercone sentenced Randall Branch, 65, of Warren, Pennsylvania to 24 months in jail, a $25,000 fine and ordered to make restitution in the amount of $420,117.40.
According to information presented to the court, the father and son defendants owned a business through which they sold oil and natural gas through various brokers. Between 2006 and 2012, the defendants received combined gross income from their oil and natural gas business in excess of $6,900,000.00. Despite their business income, the defendants stopped filing tax returns with the IRS after 1997. John Branch was sentenced for failing to file income tax returns. Randall Branch was sentenced for failing to file a tax return and of conspiring to defraud the United States for the purpose of impairing, impeding and defeating the functions of the IRS in the computation, assessment and collection of income taxes. According to the facts supporting the conviction of Randall Branch, while failing to file tax returns, he also began to dispute his obligation to pay taxes, and he challenged the authority of the IRS to assess and collect taxes. As part of the conspiracy conviction for Randall Branch, the evidence presented to the court disclosed that he avoided the financial threshold reporting requirements on the FinCEN Form 104, Currency Transaction Report (CTR) and impeded the function of the IRS to assess and collect taxes by structuring financial transactions in amounts less than $10,000.00. He then cashed those checks, regularly doing so with multiple checks, at different bank branches, on the same day.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of the Branches.
Erie Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearm laws, Acting United States Attorney Soo C. Song announced today.
Daniel Warren Talley, 32, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on October 21, 2016, Talley knowingly possessed a stolen firearm which he unlawfully possessed while being a convicted felon. The firearm was seized by investigators after a search warrant was executed at Talley’s residence in Erie, Pennsylvania. The firearm had been stolen from a residence in Millcreek Township, Pennsylvania in September 2016.
Judge Cercone scheduled sentencing for August 14, 2017 at 3:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Millcreek Township Police Department conducted the investigation that led to the prosecution of Talley.
East Chicago Man Indicted for Using Counterfeit Securities to Defraud Gary Housing AuthorityRead the Press Release
HAMMOND- Acting United States Attorney Clifford D. Johnson announced an indictment charging Ashley D. Dunlap, 54, of East Chicago, Indiana with two counts of uttering a counterfeit security.
The indictment alleges, in July 2013, the U.S. Department of Housing and Urban Development approved federal funding for building renovations at the Delaney and Dorie Miller public housing projects operated by Gary Housing Authority (GHA). Dunlap’s construction company was awarded the project, worth $347,500. The successful bidder was required to provide a surety. Dunlap purported to provide the surety – in the form a 20% cash escrow – to GHA on or about September 3, 2013 with two counterfeit instruments purporting to be Chase Bank cashier’s checks in the amounts of $20,000 and $49,600.
The United States Attorney’s office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This indictment resulted from an investigation conducted by the United States Department of Housing and Urban Development, Office of Inspector General. This case is being handled by Assistant United States Attorneys Maria Lerner and Abizer Zanzi.
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Dominican National Sentenced for Heroin TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston in connection with trafficking heroin and fentanyl in Taunton and surrounding communities.
Manuel Romero-Gonsalez, aka Pablo, 40, who previously resided in Providence, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 66 months in prison and three years of supervised release. Romero-Gonsalez will face removal proceedings following the completion of his federal sentence. In January 2017, Romero-Gonsalez pleaded guilty to a superseding indictment charging him with conspiracy to possess with the intent to distribute and distribution of heroin and fentanyl.
In October 2015, Romero-Gonsalez was arrested and charged along with 24 others in connection with a heroin trafficking ring operating in southeastern Massachusetts; an April 2016 superseding indictment brought the number of defendants charged in the case to 26. These charges are the result of a 15-month investigation into heroin and fentanyl trafficking in Taunton, Mass., and surrounding communities, which have seen a steep increase in overdoses and related deaths since 2013. Romero-Gonsalez worked with his brother, Francis Gonsalez-Romero, his sister, Maria Elena Ocasio, Cory Nickerson and William Rodriguez to buy and sell heroin and occasionally fentanyl.
Seventeen of the 26 defendants charged in the superseding indictment have pleaded guilty (including Gonsalez-Romero, Ocasio, Nickerson and Rodriguez) and six, including Romero-Gonsalez, have been sentenced.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Thomas E. Kanwit, Katherine Ferguson and Ann Taylor of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the cases.
Delaware Man Indicted for "Sextorting" Three Minors in MarylandRead the Press Release
WILMINGTON, Del. – Acting U.S. Attorney David C. Weiss for the District of Delaware announced today that a federal grand jury sitting in Wilmington indicted Scott C. Foster on April 13, 2017, on charges related to the production, receipt, and possession of child pornography.
Defendant Foster, 37, of Dover, Delaware made his initial appearance before a federal magistrate judge on April 24, 2017, where his federal Indictment was unsealed. Foster allegedly used a fake Facebook account under the name of “Chase Reacher” to harass, threaten, and coerce minor females into making and sending sexually explicit photographs.
According to the Indictment, from August 2016 through September 2016, Foster knowingly persuaded two Maryland minors to engage in sexually explicit conduct for the purpose of producing images of the conduct and knowingly received child pornography from the two minors. During the same time period, the Indictment alleges that Foster knowingly attempted to persuade and induce a third Maryland minor to engage in sexually explicit conduct for the purpose of producing images of the conduct. Foster is also charged with possession of child pornography.
An indictment is merely an allegation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Delaware Child Predator Task Force, and the Caroline County, Maryland Sheriff’s Office investigated, and Assistant U.S. Attorney Graham L. Robinson of the District of Delaware is prosecuting the case.
This investigation is an outgrowth of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Any person having information about this matter is encouraged to contact Homeland Security Investigations at (302) 428-0104.
Cross Lanes felon sentenced to federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man who sold drugs while on federal supervised release was sentenced to prison today, announced United States Attorney Carol Casto. Darrell Spicer, 60, previously pleaded guilty to possession with intent to distribute heroin. In today’s hearing, he was sentenced to six years in federal prison for that offense. He was also sentenced to an additional year and a half in prison for violating his federal supervised release. The sentences will be served consecutively.
Spicer admitted that on June 15, 2016, he sold a substance that he believed was heroin to a confidential informant working with the Kanawha County Sheriff’s Department. That substance later field-tested positive for fentanyl. Based on that controlled drug buy, a detective from the Sheriff’s Tactical Operations Patrol (STOP) Team obtained a search warrant for Spicer’s residence in Cross Lanes. While searching Spicer’s residence, officers discovered heroin, fentanyl, and over $7,000 in cash, which included pre-recorded buy money used in the controlled purchase. Spicer was present during the search and admitted the recovered drugs belonged to him and that the money was from illegal drug activity.
The Kanawha County Sheriff’s Department’s STOP Team conducted the investigation. Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Construction Company Officer Sentenced to Prison for Conspiring to Defraud GovernmentRead the Press Release
Michelle Cho, an officer of Far East Construction Corporation (Far East) and other construction companies, was sentenced today to six months in prison and 24 months of supervised release on a federal charge of conspiring to commit wire fraud. Cho was also ordered to pay forfeiture in the amount of $169,166 and pay a criminal fine in the amount of $35,000.
The sentencing was announced by Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division, U.S. Attorney Channing D. Phillips of the U.S. Attorney’s Office for the District of Columbia, Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office, Acting Inspector General Hannibal “Mike” Ware for the U.S. Small Business Administration (SBA), Inspector General Carol Fortine Ochoa of the U.S. General Services Administration (GSA), Special Agent in Charge Brian J. Reihms of the Central Field Office of the Defense Criminal Investigative Service (DCIS) and Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
According to court documents, Cho was an initiator and mastermind of a scheme lasting more than five years to defraud a disadvantaged persons’ business assistance program of tens of millions of dollars. Cho utilized two straw companies, including Far East, to conspire with MCC Construction Company (MCC) and others to defraud the SBA. Cho’s two companies were eligible to receive federal government contracts that had been set asides for small, disadvantaged businesses under the SBA 8(a) program. Cho and MCC understood that MCC would illegally perform all of the work on these contracts and pay three percent of the proceeds to Cho’s companies rather than have Cho’s companies perform at least 15 percent of the work as required by the SBA 8(a) program. In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011. The scope and duration of the scheme resulted in a significant number of opportunities lost to legitimate small, disadvantaged businesses.
The court documents also state that Cho and MCC violated the provisions of the SBA 8(a) program, which is designed to award contracts to businesses that are owned by “one or more socially and economically disadvantaged individuals.” To qualify for the 8(a) program, a business must be at least 51 percent owned and controlled by a U.S. citizen (or citizens) of good character who meets the SBA’s definition of socially and economically disadvantaged. The firm must also be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits. Also, under the program, the disadvantaged business is required to perform a certain percentage of the work. For the types of contracts under investigation here, the SBA 8(a)-certified companies were required to perform 15 percent or more of the work with its own employees.
Cho, 45, of Downers Grove, Illinois, was charged on Oct.12, 2016, in the U.S. District Court for the District of Columbia with one count of conspiring to commit wire fraud. She pleaded guilty on Nov. 15, 2016, and was sentenced today by the Honorable Ketanji Brown Jackson.
MCC pleaded guilty on Feb. 2, 2016, to conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses and agreed to pay $1,769,924 in criminal penalties and forfeiture. Thomas Harper, another former officer and owner of MCC, pleaded guilty on June 22, 2016, to conspiring to obstruct proceedings before a department or agency. He is to be sentenced on May 15, 2017. Walter Crummy, another former officer and owner of MCC, pleaded guilty on Aug. 23, 2016, to conspiring to commit wire fraud and was sentenced earlier this month to a year of probation, two months of which were home confinement, and forfeiture in the amount of $105,618.
The investigation was conducted by the FBI’s Washington Field Office, the Inspector General for the Small Business Administration (SBA), the Inspector General of the U.S. General Services Administration (GSA), the Central Field Office of the Defense Criminal Investigative Service (DCIS) and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
The prosecution was handled by Assistant U.S. Attorney John Marston and Trial Attorney Justin P. Murphy of the Antitrust Division.
Construction Company Officer Sentenced to Prison for Conspiring to Defraud GovernnmentRead the Press Release
WASHINGTON – Michelle Cho, an officer of Far East Construction Corporation (Far East) and other construction companies, was sentenced today to six months in prison and 24 months of supervised release on a federal charge of conspiring to commit wire fraud. Cho was also ordered to pay forfeiture in the amount of $169,166 and pay a criminal fine in the amount of $35,000.
The sentencing was announced by Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division, U.S. Attorney Channing D. Phillips of the U.S. Attorney’s Office for the District of Columbia, Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office, Acting Inspector General Hannibal “Mike” Ware for the U.S. Small Business Administration (SBA), Inspector General Carol Fortine Ochoa of the U.S. General Services Administration (GSA), Special Agent in Charge Brian J. Reihms of the Central Field Office of the Defense Criminal Investigative Service (DCIS) and Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
According to court documents, Cho was an initiator and mastermind of a scheme lasting more than five years to defraud a disadvantaged persons’ business assistance program of tens of millions of dollars. Cho utilized two straw companies, including Far East, to conspire with MCC Construction Company (MCC) and others to defraud the SBA. Cho’s two companies were eligible to receive federal government contracts that had been set aside for small, disadvantaged businesses under the SBA 8(a) program. Cho and MCC understood that MCC would illegally perform all of the work on these contracts and pay three percent of the proceeds to Cho’s companies rather than have Cho’s companies perform at least 15 percent of the work as required by the SBA 8(a) program. In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011. The scope and duration of the scheme resulted in a significant number of opportunities lost to legitimate small, disadvantaged businesses.
The court documents also state that Cho and MCC violated the provisions of the SBA 8(a) program, which is designed to award contracts to businesses that are owned by “one or more socially and economically disadvantaged individuals.” To qualify for the 8(a) program, a business must be at least 51 percent owned and controlled by a U.S. citizen (or citizens) of good character who meets the SBA’s definition of socially and economically disadvantaged. The firm must also be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits. Also, under the program, the disadvantaged business is required to perform a certain percentage of the work. For the types of contracts under investigation here, the SBA 8(a)-certified companies were required to perform 15 percent or more of the work with its own employees.
Cho, 45, of Downers Grove, Illinois, was charged on Oct.12, 2016, in the U.S. District Court for the District of Columbia with one count of conspiring to commit wire fraud. She pleaded guilty on Nov. 15, 2016, and was sentenced today by the Honorable Ketanji Brown Jackson.
MCC pleaded guilty on Feb. 2, 2016, to conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses and agreed to pay $1,769,924 in criminal penalties and forfeiture. Thomas Harper, another former officer and owner of MCC, pleaded guilty on June 22, 2016, to conspiring to obstruct proceedings before a department or agency. He is to be sentenced on May 15, 2017. Walter Crummy, another former officer and owner of MCC, pleaded guilty on Aug. 23, 2016, to conspiring to commit wire fraud and was sentenced earlier this month to a year of probation and forfeiture in the amount of $105,618.
The investigation was conducted by the FBI’s Washington Field Office, the Inspector General for the Small Business Administration (SBA), the Inspector General of the U.S. General Services Administration (GSA), the Central Field Office of the Defense Criminal Investigative Service (DCIS) and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
The prosecution was handled by Assistant U.S. Attorney John Marston and Trial Attorneys Kevin B. Hart and Justin P. Murphy of the Antitrust Division.
Connecticut Man Pleads Guilty to Drug Distribution ChargeRead 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 Luis Hernandez, 35, of Waterbury, Connecticut, pled guilty in U.S. District Court to distribution of heroin and cocaine base, commonly known as “crack.”
According to court records, on November 30, 2016, Hernandez distributed heroin and crack to an individual working with the law enforcement agents at a residence in Hermon, Maine.
The defendant faces up to 20 years in prison, a $1,000,000 fine, and at least three years of supervised release.
The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration; and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Columbia, Tennessee Man Ordered Detained by U.S. Magistrate in Sacramento, CaliforniaRead the Press Release
Tad Cummins, 50, of Columbia, Tenn., appeared before a U.S. Magistrate in Sacramento, California today and was ordered to be held in custody, pending his subsequent transfer to the Middle District of Tennessee, to await trial on the charge of transporting a minor across state lines for the purpose of engaging in unlawful sexual activity, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Cummins was charged in a criminal complaint on April 20, 2017, after being located in Cecilville, Calif. with the 15 year-old female victim. As alleged in the complaint, Cummins and the 15-year old had been the subject of a nationwide search by law enforcement, after leaving the Columbia, Tenn. area on March 13, 2017.
Cummins was arrested by FBI agents on Friday, April 21, 2017, while in the custody of the Siskiyou County, Calif. Sheriff. He appeared before U.S. Magistrate Judge Kendall J. Newman this afternoon for a detention hearing. Magistrate Judge Newman ordered that he be transferred to the Middle District of Tennessee as soon as possible for further proceedings.
If convicted, Cummins faces a mandatory minimum sentence of 10 years in prison, up to life.
This case was investigated by the FBI and the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Phil Wehby and Sara Beth Myers of the Middle District of Tennessee and Jason Hitt of the Eastern District of California.
The charges brought by this complaint are merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Citizen of Mexico Sentenced to 15 Months in Prison for Illegally Reentering U.S. after DeportationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALBERTO SILVA-GARCIA, 46, a citizen of Mexico recently residing in Norwalk, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 15 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, SILVA-GARCIA was deported from the U.S. to his native Mexico in March 1999 after sustaining a domestic violence conviction in California. Between March 1999 and April 2004, SILVA-GARCIA was encountered multiple times in California by immigration agents, twice while in custody following his apprehension and conviction for controlled substance violations, and on several other occasions following his apprehension at the U.S. border for falsely claiming U.S. citizenship. On 11 documented occasions, SILVA-GARCIA was removed to Mexico by foot.
In August 2009, SILVA-GARCIA was arrested for motor vehicle offenses in Norwalk. He was subsequently charged with illegal reentry in U.S. District Court in Connecticut and was sentenced to 12 months of imprisonment. In December 2010, SILVA-GARCIA was again removed to Mexico.
SILVA-GARCIA illegally reentered the U.S. and, in March 2015, was charged with larceny and burglary offenses in superior court in Norwalk. The charges stemmed from a crime spree involving the theft of construction tools and equipment from job sites and parked construction vehicles. He pleaded guilty and was sentenced to three years of incarceration.
SILVA-GARCIA has been detained in ICE custody since October 2016. On January 30, 2017, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chicago Man Sentenced to Federal Prison for Heroin OffensesRead the Press Release
A Chicago resident was sentenced to serve 85 months in prison for distribution of heroin and conspiracy to distribute heroin in the St. Louis metropolitan area, announced United States Attorney Donald S. Boyce for the Southern District of Illinois.
According to documents filed with the Court, Lacy Edward Snead, 53, was charged in a superseding indictment on December 16, 2015, along with two co-defendants: Alfred Reeves, Jr., 43, of O’Fallon, Ill., and Ciera McNeal, 29 of East St. Louis, Ill. Snead was charged with distributing heroin on March 5, 2013, and with participating in an ongoing conspiracy to distribute heroin over a three-year period of time.
Snead and Reeves, sold heroin to a confidential informant on March 5, 2013, and continued to be involved in heroin distribution thereafter. On June 18, 2015, Snead traveled from Chicago with Reeves and McNeil, transporting approximately 150 grams of heroin that was intended to be distributed in the St. Louis metropolitan area. Snead pleaded guilty in September of 2016. He was sentenced on Friday, April 21, 2017.
Both of Snead’s co-defendants, McNeil and Reeves, were sentenced in October of 2016. McNeil was sentenced to serve 30 months in prison, and Reeves was sentenced to serve 67 months in prison.
The investigation was conducted by agents from the Drug Enforcement Administration and the Madison County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Charlotte Man Sentenced to Two Years in Connection with Jamaican-based Lottery Fraud SchemeRead the Press Release
CHARLOTTE, N.C. –Jahnoy Davis, 25, of Charlotte, was sentenced today to 24 months in prison for his involvement in a Jamaican-based lottery fraud scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney also sentenced Davis to two years of supervised release and ordered the defendant to pay $216,619 as restitution to 12 victims.
According to today’s sentencing hearing and documents filed in the case, from January 2015 to March 2016, Davis was part of a Jamaican-based lottery fraud scheme. Court records show that co-conspirators operating in call centers in Jamaica and elsewhere contacted victims and falsely told them they were the winners of sweepstakes and other prizes. These victims were usually elderly and located throughout the United States. According to court records, the co-conspirators told the victims that they needed to pay various fees in order to claim the prizes and directed the victims to mail cash to co-conspirators, including to Davis.
Court records indicate that the cash frequently was concealed in a magazine inside the postal package. Davis recruited a number of individuals to receive packages and conspired with a U.S. Postal employee to divert packages from that employee’s route. For example, in or about August and September 2015, a victim identified as “W.R.” was contacted by the co-conspirators and informed that he was the winner of a $7.5 million sweepstakes prize. The victim was told that in order to claim the prize, he needed to pay fees in advance. On at least seven occasions, the victim mailed cash via the U.S. mail to various addresses within Charlotte, as instructed by the co-conspirators. The victim was never awarded the $7.5 million “prize.”
Court records indicate that, generally, once Davis received the mailed cash from the sweepstakes victims, he would wire the money in small increments to co-conspirators in Jamaica. In order to conceal the nature of the proceeds, as well as the owner of the proceeds, Davis would also recruit other individuals to send the cash to Jamaica in their names. Davis lied to those individuals about the source of the cash and the purpose of the transfers. According to court records, Davis defrauded at least 12 victims between $250,000 and $500,000.
Davis pleaded guilty in January 2017 to one count of money laundering conspiracy. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
On April 3, 2017, Antonio Terrell Brown, a former Charlotte-area mail carrier, pleaded guilty to mail theft charges for his involvement the conspiracy. He is currently awaiting sentencing.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Postal Inspection Service in Charlotte, under the direction of Inspector in Charge David M. McGinnis, and the U.S. Postal Service, Office of Inspector General, under the direction of Area Special Agent in Charge Paul L. Bowman, for leading the investigation into Davis.
Assistant U.S. Attorney Kelli Ferry, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Chandler Man Sentenced to Prison for Health Care Fraud and Identity TheftRead the Press Release
PHOENIX – On April 24, 2017, Elseddig Elmarioud Musa, 43, of Chandler, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 57 months in federal prison and three years of supervised release. Musa also was ordered to pay more than $1.2 million in restitution. Musa was convicted by a jury of 35 counts of health care fraud and four counts of aggravated identity theft.
Musa falsely billed Arizona’s Health Care Cost Containment System (AHCCCS) for thousands of medical transports that never occurred, generating more than a million dollars in fraudulent payments from AHCCCS. AHCCCS is Arizona’s Medicaid agency that offers health care programs to serve Arizona residents who meet certain income and other requirements. owned and operated Arizona One Medical Transportation LLC, which purported to provide non-emergency medical transportation for AHCCCS recipients on the Navajo reservation. From January 2012 through June 2014, ’s company submitted more than 15,000 false claims to AHCCCS for medical transports that never occurred, generating approximately $1,203,680.08 in fraudulent payments from AHCCCS to Musa.
The investigation in this case was conducted by the Federal Bureau of Investigation and AHCCCS-OIG. The prosecution was handled by Jillian Besancon and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-15-01265-DLR-PHX
RELEASE NUMBER: 2017-037_Musa
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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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Career Offender Sentenced to over 21 Years for Assaulting A Federal Officer with A Dangerous and Deadly WeaponRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Abasi Akeem Smith (30, Orlando) to 21 years and 6 months in federal prison for assaulting a federal officer with a dangerous or deadly weapon. Smith’s criminal history includes multiple drug-trafficking convictions, so he was sentenced as a career offender pursuant to the U.S. Sentencing Commission Guidelines. Moreover, he was on federal supervised release at the time of the assault, and his sentence includes 18 months’ imprisonment for violating the conditions of his supervised release. Smith was convicted on February 7, 2017, following a jury trial.
According to testimony and evidence presented at trial, on March 30, 2016, task force officers with the U.S. Marshals Service Florida/Caribbean Regional Fugitive Task Force were seeking to apprehend Smith pursuant to a felony arrest warrant and located him driving a vehicle. When the officers attempted to block Smith into a parking lot, he rammed one of the officer’s vehicles and then attempted to escape before hitting a fence and another, unoccupied vehicle. Smith subsequently jumped over the fence and fled on foot, before eventually being apprehended.
This case was investigated by the U.S. Marshals Service, the Orange County Sheriff’s Office, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
Beckley area physician pleads guilty to federal oxycodone crimeRead the Press Release
BECKLEY, W.Va. – A jury trial that began yesterday in federal court in Beckley on a 22-count indictment against a Beckley area physician ended today with the defendant’s guilty plea to a federal drug crime, announced United States Attorney Carol Casto. Dr. Michael Kostenko, D.O., 61, of Daniels, entered his guilty plea to distribution of oxycodone not for legitimate medical purposes and beyond the bounds of medical practice. The crime Kostenko pleaded guilty to was contained in Count Seven of the Superseding Indictment.
Kostenko admitted that he owned and operated the Coal Country Clinic, a medical practice located in his Raleigh County residence. Kostenko also admitted that on December 9, 2013, he distributed oxycodone, a powerful pain medication, not for legitimate medical purposes. Specifically, Kostenko admitted that on that day, approximately 271 patients arrived at Kostenko’s residence seeking oxycodone prescriptions. Kostenko additionally admitted that his staff collected over $20,000 cash from the patients that he later deposited in a local bank in amounts of less than $10,000. Kostenko further admitted that on that day he wrote over 370 oxycodone prescriptions totaling 22,255 pain pills. Moreover, Kostenko admitted that he wrote these prescriptions from his upstairs bedroom, without seeing any of the patients, and that his staff handed out the prescriptions. Finally, Kostenko admitted that by writing the oxycodone prescriptions, he acted beyond the bounds of professional medical practice.
“West Virginia is at the epicenter of a drug crisis that is ravaging our state and has left us with the highest overdose rate in the nation. Doctors are entrusted with prescribing authority in order to heal and protect patients, not betray that trust by contributing to prescription drug addiction,” stated United States Attorney Carol Casto. “My office will continue working with law enforcement to aggressively investigate and prosecute doctors who illegally prescribe the pain pills that have devastated our communities.”
Kostenko faces up to 20 years in federal prison and a fine of up to $1 million when he is sentenced on August 23, 2017.
The investigation of Kostenko and his Coal Country Clinic was led by the West Virginia State Police, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Office of Inspector General, United States Department of Health and Human Services. The plea hearing was held before United States District Judge Irene C. Berger.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Baltimore Woman Sentenced to over Five Years in Federal Prison for Bank Fraud and Narcotics ConspiracyRead the Press Release
Baltimore, Maryland – On Friday April 21, 2017, U.S. District Judge George L. Russell, III sentenced Yasmine Young, age 29, of Baltimore, Maryland to 66 months in prison, followed by five years of supervised release for bank fraud and narcotics conspiracy. Judge Russell also ordered Young to pay $326,487.11 in restitution.
The sentence 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 Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, from July 2014 through October 2014, while employed at a financial institution, Young used her employee access to target customer accounts with high dollar balances. Without permission and a business purpose, she printed screen shots of the account holders’ personal information and copies of checks that had previously been written and processed. Young provided these screen shots to co-schemers.
Using the screen shots provided by Young, co-schemers called into the financial institution’s banking system and were able to bypass the verification protocols. The co-schemers ordered checks from these accounts and forged them in order to cash them or deposit them into various accounts. The financial institution identified 22 victims, all of whom had high dollar balances and all of whom had fraudulent checks drawn on their accounts. The scheme has resulted in a loss to the financial institution of over $300,000.
While awaiting trial on this charge, from November 2015 through January 2016, Young and co-defendant Kaemarr Antonio Cox with others conspired to distribute marijuana. On January 12, 2016, DEA in Maryland received information from DEA in San Diego, California regarding a suspicious United Parcel Service (UPS) parcel that was in route for an apartment in Windsor Mill, Maryland.
On January 14, 2016, a detective interdicted the parcel where a narcotics dog alerted to the parcel for illegal narcotics. DEA found 11 pounds of marijuana inside. The parcel was repackaged and delivered by an undercover detective to Windsor Mill where Young accepted the package. Later that day DEA knocked and announced their presence at the door to execute a state search and seizure warrant. Young came to the front window, but did not open the door. Forced entry was made and members of the entry team took Young and Cox, the only subjects in the residence into custody.
Cox advised that the marijuana that was delivered was his. At the time, Young was on release post-indictment and pending trial on the federal fraud charges. Young’s release conditions required that she live in the Windsor Mill apartment where the search warrant was conducted and that she not commit any new crimes. Young subsequently had her release conditions violated, was detained in federal prison and pled guilty to fraud and aggravated identity theft charges in April 2016.
Cox pled guilty to narcotics conspiracy and brandishing a weapon in furtherance of a drug trafficking crime and is scheduled to be sentenced by Judge Russell on July 14, 2017 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Drug Enforcement Administration, the Baltimore City Police Department, and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lauren Perry and Sandra Wilkinson, who prosecuted the case.
Atlanta Concert Promoter Pleads Guilty to MDMA ConspiracyRead the Press Release
BIRMINGHAM – An Atlanta man and co-owner of a promotions company that presented musical “raves” and concerts across the Southeast pleaded guilty today in federal court to a conspiracy to distribute thousands of MDMA pills, a drug commonly known as “Ecstasy” or “Molly.”
Acting U.S. Attorney Robert O. Posey, Homeland Security Investigations Assistant Special Agent in Charge Sherry Douglas, U.S. Postal Inspection Service Inspector in Charge Adrian Gonzales, Alabama Law Enforcement Agency Secretary of Law Enforcement Hal Taylor, Alabama Attorney General Steve Marshall, and Helena Police Chief Pete Folmar announced the plea.
WOODIE LOUIS OCHLE, 40, entered his plea before U.S. District Court Judge L. Scott Coogler to one count of conspiracy to distribute 3,4 Methylenedioxymethamphetamine, or MDMA, in Jefferson and Shelby counties between February 2015 and April 2016, and to one count of possessing with intent to distribute the drug on April 13, 2016, in Jefferson County. Ochle’s sentencing date has not been set.
Ochle led an organization that distributed MDMA in Alabama and Georgia, according to his plea. Through his Atlanta business, Freakstep Promotions, Ochle set up concerts or dance events and then sold MDMA to people who attended the “raves.”
Four other people have pleaded guilty to the conspiracy and await sentencing. They are KEVIN REID PEDERSEN, 28, SHAWN EDWARD PERKINS, 22, and JENNIFER LEIGH PETITJEAN, 31, all of Birmingham, and KENTON LEE HOWARD, 38, of Chelsea.
U.S. Immigration and Customs Enforcement-HSI, U.S. Postal Inspection Service, ALEA, Alabama Attorney General’s Office and Helena Police investigated the case, which Assistant U.S. Attorney Brad Felton prosecuted.
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Armed Marijuana Dealer Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that an armed marijuana dealer was sentenced to time served in federal court this morning. Court documents reflect that Johnny Devon Brannon, 24, of Mobile, was charged with theft of mail, conspiracy to distribute and distribution of marijuana, and using, carrying and possessing a firearm during and in relation to a drug trafficking felony. Court documents also reflect that Brannon, an employee at a mail handling station, assisted by his co-defendant Steven Bernard Tate, Jr., were intercepting packages, which they believed to contain marijuana illegally shipped via the mail. Security equipment at the facility captured images of Tate and Brannon opening packages, hiding packages of marijuana in their clothing, and leaving with it. When confronted by authorities, both admitted their illegal activities. The third co-defendant, Harold James Griffin, Jr., was also implicated as receiving the marijuana and assisting in its distribution. Brannon used his vehicle to transport the marijuana from the facility to other locations, and a search of the vehicle resulted in the discovery of drugs, drug paraphernalia and a handgun. Brannon admitted he had the gun for protection because he had been robbed several times selling marijuana. Brannon pled guilty to the charges in November of 2016.
United States District Court Judge William H. Steele imposed a sentence in Brannon’s case of time served. He ordered that Brannon serve a three-year term of supervised release. He also ordered that Brannon pay the mandatory $300 in special assessments but did not impose a fine.
The case was investigated by the Mobile County Sheriff’s Office and the United States Postal Inspectors. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Alabama at http://www.justice.gov/usao/als/Albuquerque Man Pleads Guilty to Federal Armed Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Isaiah Gallegos, 22, of Albuquerque, N.M., pled guilty this morning in federal court to an armed bank robbery charge. Gallegos is the final of four defendants to enter a guilty plea in the case.
Isaiah Gallegos was arrested in March 2016, on a criminal complaint charging him and four co-defendants, Greg Miera, 51, Christian Herrera, 20, Christopher Gallegos, 33, and Martin Huertta, 44, all of Albuquerque, with bank robbery. According to the complaint, a source identified the defendants as the individuals involved in robbing the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque, on March 30, 2016. Albuquerque Police Department (APD) officers conducted surveillance as a vehicle with four men pulled up to the US Bank on the afternoon of March 30, 2016. Three of the men remained in the vehicle while the fourth entered the bank, threatened to shoot the bank employees, and demanded that two bank tellers place cash into a plastic bag.
Huertta, Miera, Herrera, Isaiah Gallegos and Christopher Gallegos were indicted on April 27, 2016, and charged with bank robbery.
During today’s proceedings, Isaiah Gallegos pled guilty to the indictment and admitted that on March 30, 2016, he participated in the robbery of the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque by acting as lookout while his co-defendants robbed the bank.
Isaiah Gallegos’ four co-defendants have entered guilty pleas and one has been sentenced. Huertta pled guilty on Sept. 9, 2016 and was sentenced on March 14, 2017 to 108 months in prison followed by five years of supervised release. Miera entered a guilty plea on Oct. 11, 2016, Christopher Gallegos entered a guilty plea on Feb. 13, 2017, and Herrera entered a guilty plea on Feb. 24, 2017. At sentencing, Isaiah Gallegos, Herrera, Christopher Gallegos and Miera each face a statutory maximum penalty of 25 years in federal prison. They remain in custody pending sentencing hearings.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
After Twenty-Six Years Drug Trafficking Fugitive Appears for Initial Hearing in MiamiRead the Press Release
A fugitive, who had been wanted on federal drug trafficking charges for 26 years, had his initial appearance in U.S. Magistrate Court today in Miami, Florida.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; and Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Gustavo Falcon, a/k/a “Taby,” 56, of Miami, had his initial appearance today in the Southern District of Florida before United States Magistrate Judge Jonathan Goodman, following his arrest on a federal warrant for a 1991 drug trafficking indictment. The parties stipulated to the defendant’s detention pending trial, with the right to revisit the ruling. The defendant’s next hearing is scheduled for May 11, 2007 in U.S. Magistrate Court.
“The passage of time does not lessen the government’s commitment to justice,” stated Acting U.S. Attorney Benjamin Greenberg. “Those who are charged federally cannot evade the law. Today, after 26 years in hiding, Gustavo Falcon was brought forward to be held accountable in U.S. District Court for his criminal acts. The U.S. Attorney’s Office is grateful for the dedicated search efforts of the U.S. Marshals Service that led to the defendant’s apprehension.”
Adolphus P. Wright, DEA Special Agent in Charge of the Miami Field Division, said, “Even after 26 years of evading capture and prosecution, the DEA, along with our law enforcement partners, remain committed to following thru until justice is fully served on Falcon and others who violate the drug laws of the United States.”
On April 10, 1991, a federal grand jury sitting in Ft. Lauderdale, Florida returned a multi-count indictment charging Gustavo Falcon, together with lead defendants Augusto Falcon, also known as “Willie Falcon”, and Salvador Magluta, with participation in a conspiracy to possess with the intent to distribute cocaine valued at over $2.3 billion. An arrest warrant was issued for defendant Gustavo Falcon’s arrest at the time of the return of the indictment in 1991. Falcon had remained a fugitive until April 12, 2017, when members of the U.S. Marshals Service arrested him in Kissimmee, Florida. Gustavo Falcon is the last of the ten defendants named in the indictment to be arrested and prosecuted in federal court in Miami. The indictment charges Gustavo Falcon with conspiracy to possess cocaine with the intent to distribute.
Mr. Greenberg commended the investigative assistance of the DEA. Greenberg thanked the U.S. Marhals Service and the Miami-Dade Police Department for their assistance with the apprehension of Gustavo Falcon. The case is being prosecuted by Assistant U.S. Attorneys Christopher J. Clark and Michael Patrick Sullivan.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
"Operation Real Time": Simpsonville Man Enters Guilty Plea in Federal Court on Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Rico Mandreil Sweeney, age 39, of Simpsonville, pled guilty today in federal court in Greenville, to felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Section 922(g)(1). United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing this morning established that on January 12, 2017, Simpsonville police officers responded to an address on West Georgia Road in Simpsonville, to conduct a child welfare check. While investigating, the officers spoke with Sweeney and discovered that he had outstanding warrants from Greenville County. Sweeney was searched incident to his arrest on the outstanding warrants and a loaded .380 caliber pistol located in a holster on his hip was discovered.Sweeney faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Simpsonville Police Department, Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Jeanne Howard handled the case.
Sweeney was arrested federally as a part of “Operation Real Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the Simpsonville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Real Time’s core partners include the Greenville County Sheriff’s Office, the Greenville Police Department, the Anderson City Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 97 defendants and seizure of approximately 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the local, state, and federal agencies that led to the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
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"Operation Real Time": Marietta Man Enters Guilty Plea in Federal Court on Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Michael Wayne Capps, age 45, of Greenville, pled guilty today in federal court in Greenville, to felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Section 922(g)(1). United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing this morning established that on January 10, 2017, agents with the South Carolina Department of Probation, Parole, and Pardon Services and the Greenville County Sheriff Office (GCSO) arrived at Capps’ residence in Marietta, South Carolina, to conduct a probation visit. Capps is currently on probation for possession with intent to distribute a controlled substance. Upon entering the residence, agents observed several people as well as what appeared to be a rifle and drug paraphernalia in plain view prompting GCSO to obtain a search warrant for the residence.A search of Capps’ bedroom revealed a loaded Sauer and Sohn .32 caliber pistol under the mattress. Agents also located over 70 rounds of additional .32 caliber ammunition in the bedroom. ATF agents responded and interviewed Capps. Capps admitted to selling narcotics out of the residence and acknowledged ownership of the Sauer and Sohn .32 caliber pistol.
Capps faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Greenville County Sheriff’s Office, the Spartanburg County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). First Assistant United States Attorney Lance Crick handled the case.
Capps was arrested federally as a part of “Operation Real Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the South Carolina Department of Probation, Parole, and Pardon Services, the GCSO, and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson City Police Department, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 97 defendants and seizure of approximately 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the local, state, and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
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"Operation Real Time": Greenville Man Enters Guilty Plea in Federal Court on Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Travius Isaiah Mayer, age 26, of Greenville, pled guilty today in federal court in Greenville, to felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Section 922(g)(1). United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing this morning established that on June 20, 2016, members of the Greenville County Sheriff’s Office (GCSO) responded to the area of N. Watson Road and Wade Hampton Boulevard to a call about a man with a gun. Upon arrival, GCSO learned from witnesses that Mayer was involved in a single car accident, exited his vehicle with a gun, and fired the gun as a witness attempted to follow him. GCSO seized a Glock .40 caliber pistol and a spent .40 caliber shell casing from the scene.Mayer later told GCSO during an interview that he was the person driving the vehicle during the collision on N. Watson Rd. and further admitted he possessed the Glock pistol during the incident. Mayer stated he had just previously purchased the Glock pistol.
Mayer faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). First Assistant United States Attorney Lance Crick handled the case.
Mayer was arrested federally as a part of “Operation Real Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson City Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 97 defendants and seizure of approximately 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the local, state, and federal agencies that led to the Bureau of Alcohol, Tobacco, and Firearms and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
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"Operation Real Time": Greenville Man Enters Guilty Plea in Federal Court on Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Joshua Shane Verdin, age 32, of Greenville, pled guilty today in federal court in Greenville, to felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Section 922(g)(1) as well as possession of a firearm and ammunition after a previous conviction for a misdemeanor crime of domestic violence, a violation of Title 18, United States Code, Section 922g(9). United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing this morning established that on January 13, 2017, members of the Greenville County Sheriff’s Office (GCSO) and the Spartanburg County Sheriff’s Office (SCSO) were attempting to locate two wanted persons at a residence in Landrum, South Carolina, when they encountered Verdin. Deputies observed Verdin placing his hands near his waistband prompting them to ask if Verdin had a gun. Verdin told the deputies that he had a pistol in his waistband. One of the responding deputies, who knew Verdin to be a prohibited felon from prior interaction with Verdin, removed the loaded 9mm pistol and placed Verdin in handcuffs.Verdin faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Greenville County Sheriff’s Office, the Spartanburg County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). First Assistant United States Attorney Lance Crick handled the case.
Verdin was arrested federally as a part of “Operation Real Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the GCSO, the SCSO, and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson City Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 97 defendants and seizure of approximately 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the local, state, and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
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24 April 2017
Workers Comp Manager Sentenced in the Dr. Ruan & Dr. Couch Pill Mill CaseRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Christopher Manfuso has been sentenced to six months of house arrest and ordered to immediately pay a $50,000.00 fine, for his role in the operation of the massive pill mill run by Dr. Xiulu Ruan and Dr. John Patrick Couch.
In October 2015, Christopher Manfuso of Fulton, Maryland pled guilty to a criminal Information and admitted to paying over $2.6 million in illegal kickbacks to Dr. Xiulu Ruan. The kickbacks were associated with a workers compensation dispensary within Physicians Pain Specialists of Alabama —the clinic owned by Dr. Ruan and Dr. Couch — which was managed by a company that employed Manfuso, and later by a company he owned.At trial, Manfuso testified that he worked for Industrial Pharmaceuticals Management (“IPM”) in 2011 when IPM contracted with Dr. Ruan and Dr. Couch to manage a workers compensation dispensary within PPSA. The contract was structured whereby IPM purchased the drugs for the dispensary upfront, deducted the cost from the amount collected in reimbursement, and then paid the doctors. Manfuso testified that with most other doctors across the country, IPM paid a percentage of the reimbursement collected minus cost. However, Dr. Ruan negotiated for guaranteed monthly minimum payments for himself and Dr. Couch. Thus, Dr. Ruan and Dr. Couch made at least the minimum guarantee each month, even if the collected reimbursement minus the cost would not warrant that amount.
Manfuso testified that the monthly guarantees began at $45,000.00 and $15,000.00 a month for Dr. Ruan and Dr. Couch, respectively. However, over the five-year period these illegal kickbacks were paid, Dr. Ruan’s guaranteed monthly minimum payment increased all the way to $80,000.00 per month. Evidence at trial also showed these guaranteed monthly payments to the doctors did not go into the general PPSA business accounts. Rather, the checks were mailed to the doctors’ homes and were deposited in their personal bank accounts.
When asked to describe the difference between a pharmacy and a workers compensation dispensary, Manfuso testified that a dispensary can provide the drugs to the patient right there in the doctor’s office. Furthermore, the reimbursement from workers compensation companies was typically significantly higher — sometimes 100% higher — than the reimbursement rate paid by health insurance companies for the exact same drugs filled at a pharmacy. So while Dr. Ruan and Dr. Couch owned their own pharmacy as well, there was a much greater financial incentive to direct all of their workers compensation patients to the dispensary instead.
In light of Manfuso’s substantial cooperation and testimony at trial, the United States requested a sentence 50% below the low end of his advisory sentencing guidelines range. Based on the range determined by the Court, the sentencing recommendation was 15 months. However, in light of Manfuso’s cooperation and other factors, Judge Granade declined to give Manfuso an in-custody sentence. Rather, he was sentenced to three years of probation, the first six months of which are home confinement, along with a $50,000.00 fine due immediately.
Following the sentencing hearing, Acting U.S. Attorney Steve Butler stated, “As the seven-week trial of Dr. Ruan and Dr. Couch clearly showed, greed was the motivating factor behind the doctors’ criminal actions. Mr. Manfuso helped feed that greed by paying illegal kickbacks to the doctors in order to secure their dispensing business. Such conduct is criminal and will continue to be prosecuted in this district.”
Robert Laskey, Special Agent in Charge of the Federal Bureau of Investigation, Mobile Division, stated, “The FBI will continue to use every resource available to ensure that this behavior will not be tolerated. We will continue to work with our federal, state, and local partners to investigate these crimes of greed.”
Bret Hamilton, DEA Assistant Special Agent in Charge for the State of Alabama, stated, “Mr. Manfuso was more concerned with lining pockets at any means than insuring injured patients received proper medication. His conviction shows that no one in the medical community is immune from prosecutions and they will be held accountable for their misdeeds.”
This matter was jointly investigated by FBI-Mobile and DEA-Mobile, and was prosecuted by Assistant U.S. Attorneys Christopher Bodnar and Deborah Griffin.
United States Settles Health Care Fraud Action Involving Allegations that Hospital Billed for Medically Unnecessary Lab TestsRead the Press Release
Crittenton Hospital Medical Center and the Crittenton Cancer Center, together with their current owners Ascension Michigan and Ascension Health, have agreed to pay $791,047 to resolve allegations that they violated the False Claims Act by billing for medically unnecessary laboratory testing for patients who had been referred to Crittenton by Dr. Farid Fata and physicians in his office. In an earlier unrelated criminal matter, Fata pleaded guilty to health care fraud, conspiracy to pay and receive kickbacks, and promotional money laundering, and was sentenced to a term of 45 years in prison.
False Claims Act allegations against Fata and Crittenton were brought to the government by a whistleblower, known as a relator, under the qui tam provisions of the False Claims Act. From September 2011 until August 7, 2013, Fata’s medical practice, Michigan Hematology-Oncology P.C., employed relator as an office administrator. Among other allegations, relator questioned the medical necessity of services that Crittenton and other hospital subsidiaries of Ascension Health had provided to patients treated by Fata.
Crittenton and Ascension voluntarily disclosed to the government the lack of medical necessity regarding the laboratory testing. Relator will receive $158,209.40 out of the $791,047 settlement for his role in filing the qui tam action.
This case was investigated jointly by the U.S. Attorney’s Office for the Eastern District of Michigan and the Department of Health and Human Services, Office of Inspector General.
U.S./Israeli Man Charged in Connection with Threats to Jewish Community Centers, Conveying False Information, and CyberstalkingRead the Press Release
WASHINGTON – Michael Ron David Kadar, 18, who holds dual United States and Israeli citizenship and who was recently arrested in Israel, was charged today with making threatening calls to Jewish Community Centers in Florida, conveying false information to police dispatch regarding harm to private residents in Georgia, and cyberstalking, the Justice Department announced today. The investigation into violent threats to Jewish Community Centers, schools and other institutions across this nation continues, including an ongoing investigation into potential hate crime charges.
According to a federal criminal complaint filed in Orlando, Florida, it is alleged that beginning on or about Jan. 4, 2017, and continuing until March 7, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond and clear the area.
Further, according to a federal criminal complaint filed in Macon, Georgia, it is alleged that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged violent emergency situation concerning multiple individuals at a private residence in Athens, Georgia. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
“Today’s charges into these violent threats to Jewish Community Centers and others represent this Department’s commitment to fighting all forms of violent crime,” said Attorney General Sessions. “These threats of violence instilled terror in Jewish and other communities across this country and our investigation into these acts as possible hate crimes continues.”
“This kind of behavior is not a prank, and it isn't harmless. It’s a federal crime,” said Director Comey. “It scares innocent people, disrupts entire communities, and expends limited law enforcement resources. The FBI thanks our partners for working with us here at home and around the world.”
“Violent threats intended to instill fear in our religious communities, schools, and homes are an attack on the very fabric of our society and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The department will continue to vigorously investigate and prosecute those who engage in such violent acts.”
“Kadar allegedly took extraordinary steps to conceal his identity and location through several technological means, including voice alteration, use of proxy IP addresses, virtual currencies and caller ID spoofing,” said Acting Assistant Attorney General Blanco. “Thanks to the specialized training and expertise of our investigative team, we were successful in identifying, locating and apprehending the person accused of this despicable campaign of threats.”
“The charges brought today demonstrate our resolve to pursue and prosecute those who seek to sow terror and fear in our community, wherever they may hide,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “They also reflect the tireless efforts, dedication and cooperation of agents, analysts and prosecutors within the Justice Department, as well as our state, local and international law enforcement partners.”
“People, especially children, deserve to feel safe in their communities,” said U.S. Attorney G. F. Peterman III for the Middle District of Georgia. “The violent threats made against schools, families, and Jewish Community Centers sought to rob our citizens of that right. I'm proud that the Department of Justice and the FBI have fought tirelessly to restore that sense of safety.”
This matter is being investigated by the FBI, the U.S. Attorney’s Office for the Middle District of Florida, U.S. Attorney’s Office for the Middle District of Georgia, the Computer Crime and Intellectual Property Section of the Department of Justice, and the Civil Rights Division’s Criminal Section. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police. The Criminal Division’s Office of International Affairs is providing assistance with this case.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney's Office Observes National Reentry WeekRead the Press Release
In 2016, the U.S. Department of Justice established National Reentry Week to bring awareness to the challenges faced by formerly incarcerated persons when they reenter society. In observance of this year’s week, April 23-29, Acting United States Attorney Steve Butler for the Southern District of Alabama announces some of the current projects in which the U.S. Attorney’s Office is participating.
On April 27, the office will partner with Spring Hill College to host a “Reentry Simulation.” The simulation, open to the public, will be held from 11:00 a.m. to 1:00 p.m. in the college’s Mary Lou and John Barter Student Center. It will provide a glimpse into the first four weeks of life after prison, and will foster discussions about how the public and private sectors may work together to assist persons with the tools they need to successfully reenter their communities.
The office also continues its work with Project H.O.P.E. (Helping Offenders Pursue Excellence). In 2015, at the request of the Alabama Board of Pardon and Paroles, the Project HOPE Reentry Task Force was created to develop a plan to secure funding to support services aimed at reducing the recidivism rate in Alabama. Components such as employment, housing, and transportation continue to be studied in an effort to determine what types of reentry services are lacking. The plan’s objective is to reduce the Alabama recidivism rate by 50% as of 2021.
Acting U.S. Attorney Butler recognizes the positive role that reentry programs play, saying, “By providing people exiting the correctional system with access to necessities such as housing and employment, the hope is that they will become invested in their communities and will be less likely to return to a life of crime.”
To learn more about Project H.O.P.E. and stay up-to-date with reentry events in the Southern District of Alabama, please visit https://www.justice.gov/usao-sdal/programs/ex-offender-re-entry-initiative.
Two Men Plead Guilty to Possessing Child PornographyRead the Press Release
DAYTON – As the result of a national FBI investigation, James Gaver, 71, of Kettering, Ohio, and Robert Phelps, 49, of Jackson Center, Ohio each pleaded guilty in U.S. District Court in separate cases to possession of child pornography involving prepubescent minors.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Division, announced the pleas entered into before U.S. District Judge Walter H. Rice.
According to the Statement of Facts read at Gaver’s plea hearing on April 21, 2017, investigators discovered more than 600 images of child pornography while executing a search warrant on July 27, 2015 at Gaver’s residence. Investigators also found videos of child rape on Gaver’s computer.
Gaver was convicted in Montgomery County Common Pleas Court in 1994 of “Gross Sexual Imposition” and in 2002 of “Pandering obscenity involving a minor.”
The parties involved in his case have recommended a sentence range of 120 months to 144 months in prison. Judge Rice will consider that recommendation at his sentencing hearing scheduled August 1.
At Phelps’ plea hearing on April 13, 2017, the Statement of Facts set forth that federal agents executed a search warrant at Phelps’s home in Jackson Center and discovered more than 600 images and 100 videos of child pornography. He faces a potential maximum of 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Andrew J. Hunt, who is representing the United States in both cases, and First Assistant United States Attorney Vipal J. Patel who is representing the United States in U.S. v. Gaver.
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Two Dallas Women Sentenced in Opioid Prescription Drug Distribution ConspiracyRead the Press Release
DALLAS — Glenda Cane, 47, and Shalisa Robinson, 31, both of Houston, Texas, have been sentenced for their role in a pill mill operation that operated during parts of 2013-2015, announced United States Attorney John R. Parker.
Cane and Robinson were sentenced last week to 18 months each in federal prison by U.S. District Judge Sidney A. Fitzwater, following their guilty pleas in July 2016. Cane pleaded guilty to one count of unlawful use of a communication device. Robinson pleaded guilty to one count of conspiracy to distribute a controlled substance. Judge Fitzwater ordered Cane to surrender to the Bureau of Prisons on June 13, 2017. Robinson is ordered to surrender on June 6, 2017.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Cane and Robinson, on offenses related to their participation in a prescription drug distribution conspiracy. In 2016, an additional 7 individuals were charged in superseding indictments. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies.
According to documents filed in the Cane case, on February 14, 2014, Cane informed co-conspirator and supplier Cornelius Robinson that a customer wanted to purchase 30mg oxycodone pills and 10mg hydrocodone pills from her. Cane asks Robinson what price to charge for the hydrocodone, and Robinson tells Cane to sell the hydrocodone for $4.50 per pill.
According to documents filed in the Robinson case, on May 24, 2013, she and co-conspirator Cornelius Robinson came to Dallas, Texas, to pick up oxycodone and a rental car. Shalisa and Cornelius Robinson drove to Louisiana to distribute the oxycodone they had picked up in Dallas. On May 25, 2013, in St. Martin’s Parish, Louisiana, Shalisa Robinson possessed approximately 1,543 oxycodone pills consisting of 1,161 30mg oxycodone pills and 382 15mg oxycodone pills that she and Cornelius Robinson intended to distribute to customers in Louisiana.
The investigation was conducted by the Drug Enforcement Administration, with assistance from the Internal Revenue Service, Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters prosecuted.
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Texas Man Sentenced for $19 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Texas man was sentenced in federal court today for his role in an elaborate, multi-million-dollar fraud scheme in which conspirators impersonated North Kansas City-based Cerner Corporation in business and legal activities.
Albert Davis, 56, of Richardson, Texas, was sentenced by U.S. Chief District Judge Greg Kays to 12 years in federal prison without parole. The court also ordered Davis to pay $19,151,555 in restitution to the victims of his fraud scheme.
On Oct. 3, 2016, Davis pleaded guilty to participating in a conspiracy to commit wire fraud. Davis admitted that he was the leader of a conspiracy to commit wire fraud in which more than 10 victims suffered millions in losses from Aug. 25, 2008, to Feb. 19, 2015. Conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor.
The decade-long criminal conduct, including relevant conduct from several other jurisdictions, involved perjured testimony, doctored trial exhibits, a manipulated multi-million dollar civil verdict, a fake bankruptcy filing, the use of fake people with fake email accounts, impersonated companies and a phalanx of over 70 entities to conceal it.
Four additional co-conspirators (in separate but related cases) also have pleaded guilty. David Hernon, 56, of Fishers, Ind. (formerly of Richardson, Texas), David Tayce, 67, of Lucas, Texas, and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, are scheduled to be sentenced on Tuesday, April 25, 2017.
In order to impersonate Cerner Corporation, Davis and his co-conspirators created a fake Cerner business entity for a similarly-named company, Cerner, LLC. Conspirators opened a fake Cerner bank account, registered a fake Cerner Internet domain and leased virtual office space for a fake Cerner address in Kansas City, Mo. They created fictitious employees from Cerner Corporation – including both fictitious identities and impersonating actual employees – to communicate with others. Conspirators fabricated documents, price quotes, agreements and invoices, which were all made to appear to be authentic Cerner Corporation documents, when they were not.
For example, conspirators sent e-mails to doctors at Summit Medical Center in Oklahoma, which falsely represented Cerner Corporation in negotiations by containing a quote for the sale of a MRI to Summit Medical Center.
Conspirators also created fraudulent invoices for the sale of an MRI to Dallas Medical Center (DMC), which paid over $1 million to what they believed was Cerner Corporation, but which turned out to be nothing more than one of Davis’ shell companies.
When DMC was not acting quickly enough on the deal, Davis created fake e-mail accounts for prominent cardiologists in Dallas. Davis then used these fake email accounts to draft e-mails to himself, which stated that these cardiologists could not wait to get Davis’ MRI system at DMC. Davis then forwarded these e-mails to DMC, which created the impression of demand for his system at DMC. Smith also provided “references” for DMC to check on him. These “references” turned out to be more fake doctors and co-conspirators playing the role of satisfied business partners of Davis on the phone.
Davis also admitted that conspirators provided false and misleading information and testimony during the litigation of several lawsuits. The false and misleading testimony was regarding business deals where the conspirators had impersonated Cerner Corporation.
For example, when Dallas Medical Center learned of the fraud, Davis sued them (iHeart Care DMC Holdings, LLC. v. Dallas Medical Center, LLC., et al., Cause No. 13-09460, in Dallas County, Texas). Davis, Tayce, and others then provided false testimony in depositions in the resulting lawsuit.
According to court documents, the Dallas Medical Center scheme was just a sliver of the fraud Davis and his co-conspirators committed.
In another example, Davis brought a lawsuit against Korean company ISOL Technology. After testifying falsely about business dealings with Cerner Corporation and offering fake exhibits to support his claim of damages, Davis received a jury award of $24 million in the 2014 trial in LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., Case No. 6:11-CV-428-LED, in the Eastern District of Texas. When the fraud was discovered, attorneys for ISOL Technology filed an emergency motion for sanctions against LBDS (Davis’ company).
In addition to impersonating Cerner Corporation, Davis admitted, conspirators used additional e-mail accounts to impersonate business entities and physicians in order to send communications designed to manipulate others in business transactions.
For example, conspirators forged signatures and misled doctors into guaranteeing over $8 million in loans from Community Trust Bank in Texas. Davis admitted that he and his co-conspirators fraudulently obtained five individual loans from Community Trust Bank.
Conspirators also impersonated bondholders in order to file an involuntary bankruptcy petition against their own company, CMI Holding Company, Inc., in Case no. 10-38011-SGJ-7, in the Northern District of Texas. Conspirators continued to impersonate those bondholders throughout the litigation in phone calls and email communications, and by signing as the bondholders in a settlement agreement. Davis and his co-conspirators concealed their ownership of Eureka Group, LLC and used that entity to receive and disburse the monies received from the $1.8 million settlement of the involuntary bankruptcy. Conspirators impersonated yet another company to buy back their newly re-organized company through the bankruptcy, and collect additional funds and manipulate the price through other fake liabilities and creditors.
Additionally, Davis admitted, conspirators solicited investments using fabricated communications and documents from entities they created, including the entity created to impersonate Cerner Corporation. Those misrepresentations included false financial documents, altered MRI images and false claims that used MRI systems were newly developed technology. Davis collected large amounts of investments through this process.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky, in cooperation with Assistant U.S. Attorney Nathaniel Kummerfeld of the Eastern District of Texas and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas. It was investigated by the FBI.
Six Additional Individuals Indicted for $2.5 Million High-Yield Investment FraudRead the Press Release
Six additional individuals were charged in an indictment unsealed today for their roles in a $2.5 million high-yield investment fraud scheme, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Ludmilda O. Stencil, 46, of Charlotte, North Carolina; Martin Delainie Lewis, 50, of Frisco, Texas; Nicholas Fleming, 63, of Northridge, California; Michael Allen Duke, 48, of Richardson, Texas; Paula Sacccomanno, 59, and Dennis Swerdlen, 61, both of Boca Raton, Florida, were charged with one count of conspiracy to commit wire fraud and mail fraud, 14 counts of mail fraud and 14 counts of wire fraud in a superseding indictment returned on April 19, 2017, in the Western District of North Carolina. Ludmilda Stencil, Lewis and Duke also were each charged with five counts of money laundering.
This superseding indictment also includes previously charged co-defendants Robert Leslie Stencil, Daniel Thomas Broyles Sr. and Kristian F. Sierp. Sierp was previously arrested in Fort Lauderdale, Florida, on separate charges and has been detained pending trial. A trial date has not been set. Defendants Ludmilda Stencil, Martin Delainie Lewis, Nicholas Fleming, Paula Saccomanno and Denis Swerdlen have all been arrested. Michael Allen Duke remains a fugitive.
The indictment alleges that since January 2012, Leslie Stencil, Broyles, Sierp, Ludmilda Stencil, Lewis, Fleming, Duke, Saccomanno and Swerdlen worked to sell stock in Niyato Industries Inc., a Nevada corporation that Robert Stencil owned and operated from Charlotte. Through various publications and sales pitches, the defendants allegedly marketed Niyato as a manufacturer of compressed natural gas (CNG) automobiles and a distributor of CNG fuel that had patented technology, valuable contracts and high-profile executives. According to the indictment, the defendants also sold investors on a promise that Niyato was planning an imminent stock IPO that would reap pre-IPO investors a tenfold return on their investments.
Leslie Stencil, Broyles, Sierp, Ludmilda Stencil, Lewis, Fleming, Duke, Saccomanno and Swerdlen are alleged to have known that, in reality, Niyato had no facilities, products, patents or plans for an imminent IPO, but rather was merely a vehicle for inducing investor funds. Broyles, Sierp, Lewis, Fleming, Duke, Saccomanno and Swerdlen allegedly directed investors to mail or wire funds to Leslie and Ludmilda Stencil, who then allegedly paid half the funds to the investment salespersons and kept the remainder for personal expenses. In addition, Broyles, Sierp, Lewis, Fleming, Duke, Saccomanno and Swerdlen are alleged to have used high-pressure sales tactics to encourage investments from their victims, many of whom were elderly. According to the superseding indictment, Sierp, Lewis, Fleming and Duke operated under fake names while marketing Niyato stock subscriptions.
According to the superseding indictment, Leslie Stencil, Broyles, Sierp, Ludmilda Stencil, Lewis, Fleming, Duke, Saccomanno, Swerdlen and their co-conspirators were responsible for causing at least $2.5 million in losses to more than 140 U.S. citizens and businesses.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service and Internal Revenue Service-Criminal Investigation are investigating this case, which was supervised by the Criminal Division’s Fraud Section. Fraud Section Trial Attorneys William Bowne, Gustav Eyler and Christopher Fenton are prosecuting the case.
Sioux City Man Sentenced to Federal Prison for Unlawful Possession of A Firearm and AmmunitionRead the Press Release
A Sioux City man was sentenced on Monday, April 24, 2017, to 10 years in federal prison.
Donavan Cross, 25, from Sioux City, Iowa, received the prison term after a December 15, 2016, jury verdict finding him guilty of being a prohibited person in possession of a firearm and ammunition.
On June 4, 2016, officers from the Sioux City Police Department responded to a 911 call involving a disturbance between Cross and his live-in girlfriend. Officers spoke to Cross’s girlfriend, who stated that she wanted to gather her belongings and move back with her mother. The girlfriend then led officers to the bedroom that she shared with Cross. Officers discovered a 9mm pistol with a fully loaded clip, further investigation led to the discovery of ammunition, and a holster in the residence. When confronted, Cross immediately claimed the pistol belonged to his grandmother, who also lived with him. He also denied the bedroom in which the pistol was found belonged to him, in spite of his grandmother identifying the bedroom and studio as belonging to Cross.
Cross was sentenced in Sioux City by United States District Court Senior Judge Mark W. Bennett. Cross was sentenced to 120 months’ imprisonment, the maximum under the law. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Cross is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Ajay Alexander and investigated by the Sioux City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-4067.
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Second Nurse Practitioner Sentenced in the Dr. Ruan & Dr. Couch Pill Mill CaseRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Thomas “Justin” Palmer has been sentenced to 30 months in federal prison for his role in the operation of the massive pill mill run by Dr. Xiulu Ruan and Dr. John Patrick Couch.
Following a stint in the United States Navy, Justin Palmer began working as a registered nurse at hospitals in southern Alabama. He then went back to school and earned a Master’s degree in nursing. Upon completion, Palmer was hired by Physicians Pain Specialists of Alabama ¬— the pain clinic co-owned and operated by Dr. Ruan and Dr. Couch. Palmer originally worked under both doctors. However, after about six months, Palmer began to work for Dr. Couch exclusively. While working for Dr. Couch, Palmer knowingly and intentionally conspired to prescribe various Controlled Substances outside the usual course of professional practice and not for a legitimate medical purpose. This included the prescribing of Subsys and Abstral — both of which are brand name forms of instant release fentanyl, a Schedule II Controlled Substance.
During the recent trial of Dr. Ruan and Dr. Couch, Palmer testified that he regularly saw patients without any oversight from a doctor. He also admitted to forging Dr. Couch’s signature on prescriptions, and estimated he did this approximately 25,000 times over a four year period. Evidence at trial showed that both Dr. Couch and Dr. Ruan knew Palmer was forging Dr. Couch’s signature. However, disciplinary action was never taken, and he was never reported to the nursing board. Palmer also testified that he was a habitual intravenous drug abuser, and that he was under the influence of very powerful opioids virtually every day while he was seeing and treating patients.Based on his substantial assistance, including his testimony in the trial against Dr. Ruan and Dr. Couch, Palmer received a 50% sentence reduction recommendation from the United States. The Court accepted this recommendation, and then sentenced Palmer to serve 30 months in federal prison for his criminal actions.
Following the sentencing hearing, Acting U.S. Attorney Steve Butler stated, “As Judge Granade observed at the sentencing hearing, Justin Palmer’s conduct was ‘beyond the pale.’ Forging a doctor’s name on a prescription is reprehensible, and even more so is the conduct of the doctors that let Palmer do this. That said, the United States recognizes that Palmer began cooperating even before the arrest of Dr. Couch and Dr. Ruan, and that his testimony was an important part of trial. Thus, the United States accepts the 30-month sentence handed down by the Court.”
Bret Hamilton, DEA Assistant Special Agent in Charge for the State of Alabama, stated, “Justin Palmer had an honorable and promising career. His patients expected him to provide them with professional medical care. Instead of the welfare of his patients being the basis for his decision making process, his greed for financial gain and his illicit use of drugs guided him.”
In addition, Robert Laskey, Special Agent in Charge of the Federal Bureau of Investigation, Mobile Division, stated, “This type of behavior in the field of medicine cannot be tolerated by a doctor or an employee of the clinic. The FBI will continue to vigorously investigate these cases with a sense of urgency.”
This matter was jointly investigated by DEA-Mobile and FBI-Mobile, and was prosecuted by Assistant U.S. Attorneys Christopher Bodnar and Deborah Griffin.
Roanoke Man Pleads Guilty to Drug, Gun ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man pled guilty this morning to a pair of federal charges related to cocaine distribution and illegal firearms possession, Acting United States Attorney Rick A. Mountcastle announced.
Antonio Maurice Payne, 29, of Roanoke, Va., pled guilty this morning in the United States District Court for the Western District of Virginia in Roanoke to one count of illegal possession of a firearm by a previously convicted felon and one count of possession of cocaine with the intent to distribute.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke City Police Department conducted the investigation of the case. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Richmond Business Owner Convicted of Fraud in Credit Repair SchemeRead the Press Release
Baltimore, Maryland – On April 21, 2017, a federal jury convicted Benjamin Bland, age 41, of Richmond, Virginia, of conspiracy to commit wire fraud, wire fraud, and social security fraud.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to evidence presented at his five day trial, Bland was the owner and registered agent of a company headquartered in Richmond, Virginia that hosted a website that purported to provide individuals with a legal means to start a new credit file through the issuance of a “secondary credit number.” Bland falsely told his customers that these “secondary credit numbers” were “100% legal” and issued “by lawyers.” However, Bland had invented the term “secondary credit number,” there were no lawyers involved with his business, and the “secondary credit numbers” were actually social security numbers that had been previously issued to other individuals, predominantly children.
According to the trial evidence, one of the primary purposes of the fraud scheme was to obtain bank loans, private loans, auto loans, and lines of credit using the stolen social security numbers, counterfeit social security cards, and personal identity information (“PII”) of actual persons to create a false (improved) credit score.
The trial evidence also established that Bland obtained and sold the misappropriated social security numbers to Michael Westbrook and at least 20 others located throughout the country, whom Bland called his “affiliates.” These “affiliates” in turn sold those numbers to buyers. For an additional fee, Bland would provide fraudulent social security cards bearing the stolen number and the name of the “buyer.” Bland also provided fraudulent driver’s licenses to the “customers.” These items were provided so that “customers” could defraud banks and other lenders by drawing upon lines of credit using the stolen social security numbers.
According to the trial evidence, Bland compromised the social security numbers of at least 1,500 people during the conspiracy. The majority of the stolen social security numbers belonged to children all over the United States.
A co-conspirator, Michael Westbrook, also pled guilty to conspiracy to commit wire fraud and aggravated identity theft. He is awaiting sentencing.
Bland faces a maximum sentence of 20 years in prison on each of the wire fraud counts and a maximum of 10 years in prison on each of the social security fraud counts. Senior U.S. District Judge J. Frederick Motz has scheduled sentencing for July 14, 2017 at 10:00 am.
United States Attorney Rod J. Rosenstein commended HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lauren Perry and Aaron Zelinsky, who are prosecuting the case.
Project Dakota Flyer Nets 15 DefendantsRead the Press Release
United States Attorney Randolph J. Seiler announced that fifteen individuals have been indicted for the illegal trafficking of eagles and other migratory birds. The Indictments are a result of a two-year undercover operation, dubbed Project Dakota Flyer.
Indicted Individuals Include:
Troy Fairbanks, 54, Rapid City, SD, charged with Conspiracy to Commit Wildlife Trafficking, and violations of the Bald and Golden Eagle Protection Act, Migratory Bird Treaty Act, and Lacey Act: CR 17-50036
Majestic Fairbanks, 22, Rapid City, SD, charged with Conspiracy to Commit Wildlife Trafficking: CR 17-50036
Troy Young Fairbanks, 24, Rapid City, SD, charged with Conspiracy to Commit Wildlife Trafficking: CR 17-50036
Alvin Brown Jr., 37, Ethete, WY, charged with Conspiracy to Commit Wildlife Trafficking, and violations of the Bald and Golden Eagle Protection Act, Migratory Bird Treaty Act, and Lacey Act: CR 17-50035
Michael Primeaux, 32, Parmalee, SD/ Ethete WY, charged with Conspiracy to Commit Wildlife Trafficking, and violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act: CR 17-50035
Juan Mesteth, 39, Pine Ridge, SD, charged with Conspiracy to Commit Wildlife Trafficking, violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act, and Felon in Possession of a Firearm: CR 17-50035
Aaron David West, 62, Eagle Butte, SD, charged with violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act: CR-17-30051
Aaron David West Jr., 33, Eagle Butte, SD, charged with violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act: CR-17-30051
Jorge Pena, 44, Mt. Vernon, IA, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-50056
Valencia Neck, 38, Parmelee, SD, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-30050
Benjamin Iron Hawk, 44, Kyle, SD, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-30050
Chet Christensen, 66, Tuthill, SD, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-30052
Ronald Fisher, 64, Kyle, SD, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-50057
Gary Fisher, 69, Gordon, NE, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-50057
David Jasper, 60, Box Elder, SD, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-30048
Initial appearances have been set for Monday May 1, 2017 in Rapid City, SD and Thursday May 4, 2017 in Pierre, SD. This case is being investigated by the U.S. Fish and Wildlife Service. Assistant U.S. Attorneys Eric Kelderman and Meghan N. Dilges are prosecuting the cases.
Portfolio Manager Agrees to Plead Guilty to Securities FraudRead the Press Release
BOSTON – A Vice President and Options Portfolio Manager for a Boston-based asset management firm has agreed to plead guilty in connection with a scheme to defraud funds managed by his firm, which made him more than $1.9 million in profits.
Kevin Amell, 45, of Hingham, has agreed to plead guilty to one count of securities fraud.
It is alleged that from December 2014 to February 2017, Amell used the funds he managed to sell options to, and occasionally buy options from, his personal brokerage accounts. Specifically, given his position as Vice President and Options Portfolio Manager, Amell had visibility into the options markets and could see the buy and sell orders for a particular option at a particular time. As a result, Amell could see the “spread” - the price buyers were willing to pay for the option and the price at which sellers were willing to sell the option at any given time. Amell defrauded his firm and the funds managed by the firm, by buying options at prices below the price at which other market participants were willing to sell at that point in time. Amell then sold the options he had purchased from the funds at higher prices, thereby profiting at the expense of the funds he managed. On occasion, Amell also purchased options at a lower price and then immediately sold them to the funds at a higher price.
Amell allegedly carried out the scheme by placing orders in his personal brokerage accounts to buy specific options at a specific price and, within seconds, placed orders on behalf of the funds to sell the same options at the same price. By controlling the prices and the timing of the sales in this way, he guaranteed that he could buy the options himself and make a profit. Amell made more than $1.9 million on the scheme. It is further alleged that, to conceal the fraud from his employer, Amell failed to disclose to the firm the existence of his personal brokerage accounts as required.
The securities fraud statute provides for a sentence of no greater than 20 years in prison, five years of supervised releaseand a fine of $5 million. 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. According to the plea agreement, which was also filed today, the U.S. Attorney’s Office has agreed to recommend a sentence of no greater than 27 months in prison. Amell has also agreed to forfeit $1,954,457.
The Securities and Exchange Commission today filed a parallel civil action.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission. Assistant U.S. Attorney Sarah E. Walters, Chief of Weinreb’s Economic Crimes Unit, is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Perry County Husband and Wife Charged with Production of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Perry County couple were indicted on April 19, 2017, by a federal grand jury in Harrisburg on production of child pornography charges.
The indictment was unsealed on April 21, 2017. Chief Magistrate Judge Susan E. Schwab arraigned Betty Jo Eckenberger on April 20, 2017, and James David Eckenberger on April 24, 2017. Both Defendants were detained.
According to United States Attorney Bruce D. Brandler, Betty Jo Eckenberger, age 32, and James David Eckenberger, age 43, both of Perry County, Pennsylvania, are alleged to have sexually assaulted a minor between 2008 and 2011, and taken photographs of that assault. The four-count indictment charges the Eckenbergers with conspiracy to use a minor to produce child pornography, production of child pornography, receipt and ditribution of child pornography, and possession of child pornography. The indictment also seeks forfeiture of all electronic equipment used to take those images.
This case was investigated by the Pennsylvania State Police with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the production of child pornography offenses is 50 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Those charges carry a mandatory minimum term of imprisonment of 25 years. The possession of child pornography charge is punishable by a maximum of 20 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 10 years. 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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Orange County Pilot Who Operated Private Jets with Passengers Onboard without Proper License Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – An Irvine man who admitted that he illegally piloted private jet airplanes with passengers onboard without having a valid pilot’s license was sentenced today to 10 months in federal prison.
Arnold Gerald Leto III, 37, was sentenced by United States District Judge Dale S. Fischer, who also ordered the defendant to pay a $5,500 fine.
Leto pleaded guilty in October to two counts of operating an aircraft without a valid airman’s certificate.
According to court documents, Leto operated aircraft with passengers on a number of occasions without the proper authorization from the Federal Aviation Administration. In January 2015, Leto piloted a Cessna Citation turbojet-powered aircraft, with paying passengers, from Santa Monica to Phoenix prior to receiving any type of airman’s certificate for turbojet-powered aircraft.
The following month, Leto obtained an airman’s certificate that authorized him to be a second-in-command pilot on a Cessna Citation turbojet-powered aircraft, but he continued to operate the Cessna citation as a sole pilot with passengers. For example, in April 2015, he piloted a Cessna Citation from Burbank to Bermuda Dunes and from Santa Monica to Bentonville, Arkansas.
Furthermore, on April 8, 2016, Leto was the sole pilot of a Falcon 10 turbojet-powered aircraft, with passengers on board, that flew from Van Nuys to Las Vegas, Nevada. At this time, Leto was not certified to fly the Falcon 10, and the FAA had revoked all of his airman certificates.
This case was investigated by the Department of Transportation – Office of Inspector General, with assistance by the Federal Aviation Administration.
The case was prosecuted by Assistant United States Attorney Dennis Mitchell of the Environmental and Community Safety Crimes Section.
Norwalk Man Pleads Guilty to Embezzling Money and Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK W. ERRICO, 64, of Norwalk, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to federal embezzlement and tax evasion offenses.
According to court documents and statements made in court, for approximately 20 years, ERRICO worked for the owner of two companies located in Norwalk, handling the companies’ finances, including payroll, bank accounts, accounts payable and accounts receivable. Between approximately February 2011 and March 2014, ERRICO embezzled approximately $823,476.22 from the two companies. ERRICO transferred stolen funds from the companies’ accounts to pay his personal credit card debts, and also forged the signature of the companies’ owner on company checks and cashed them or made them payable to his own company and deposited them into his company’s business account.
For the 2011 through 2014 tax years, ERRICO attempted to evade paying federal taxes on $851,076.22 of unreported income, which resulted in a total tax loss of $265,326.
As an example, for tax year 2013, ERRICO filed a federal individual tax return for himself in which he stated his taxable income for 2013 was $31,200. The tax return failed to report approximately $536,434.50 in money he stole from the two Norwalk companies.
ERRICO pleaded guilty to one count of the interstate transportation of money obtained by fraud and one count of tax evasion. Judge Underhill scheduled sentencing for July 17, 2017, at which time ERRICO faces a maximum term of imprisonment of 15 years.
ERRICO also has agreed to pay $654,546.09 in restitution to the two companies from which he stole money, and he is obligated to pay $265,326 in back taxes, plus penalties and interest, which continue to accrue.
ERRICO was released on bond pending sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, U.S. Secret Service and Connecticut Financial Crimes Task Force.
This case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Newport Man Pleads Guilty to Heroin Conspiracy ChargeRead 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 Todd Shorey, 52, of Newport, Maine, pled guilty in U.S. District Court to conspiring to distribute more than a kilogram of heroin.
According to court records, between May 2015 and January 2016, Shorey conspired with Jamie Akerson and others to distribute over a kilogram of heroin. Shorey, Akerson and others obtained large quantities of heroin on a weekly basis from an out-of-state source and had it distributed throughout Central Maine. Jamie Akerson pled guilty to the same charge on April 14, 2017.
The charge carries a sentence of between 10 years and life in prison, an $8,000,000 fine, and at least five years of supervised release.
The case was investigated by the U.S. Drug Enforcement Administration, with assistance provided by the Maine State Police; and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Myrtle Beach Man Pleads Guilty on Drug Conspiracy ChargeRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina---- United States Attorney Beth Drake stated that Roberto Yamil Velez-Garcia, age 30, of Myrtle Beach, South Carolina entered a guilty plea in federal court in Florence, South Carolina, to conspiracy to possess with intent to distribute and to distribute a quantity of heroin and a quantity of fentanyl in violation of 21 U.S.C. § 841(a)(1). United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
This case was part of an investigation conducted by agents of the Drug Enforcement Administration (DEA) Florence, South Carolina, and the Fifteenth Circuit Drug Enforcement Unit (DEU) Conway, South Carolina into the sale of heroin and other illegal drugs in the Horry County, South Carolina area. Velez-Garcia was identified as a heroin distributor. Evidence presented at the change of plea hearing established that agents made a controlled purchase of a quantity of fentanyl from Velez-Garcia in December 2015. In May 2016, agents arranged a second controlled purchase of heroin from Velez-Garcia and a coconspirator. After the purchase was made, Velez-Garcia and the coconspirator were arrested. A search warrant was executed at an apartment Velez-Garcia shared with the coconspirator. Agents recovered approximately 95 grams of heroin and two firearms from the apartment.
Ms. Drake stated that the maximum penalty Velez-Garcia could receive is 20 years imprisonment and a fine of $1,000,000 dollars.
The case was investigated by agents of the Drug Enforcement Administration (DEA) Florence, South Carolina, and the Fifteenth Circuit Drug Enforcement Unit (DEU) Conway, South Carolina. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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More Than Fifteen Men Charged with Violations of Federal Gun LawsRead the Press Release
Law enforcement agencies across Iowa continue to make the area safer by addressing the problem of gun crime and violence. Acting United States Attorney Sean R. Berry announced charges and arrests in seventeen recent federal gun cases at a press conference held at the United States Attorney’s Office. Berry was joined by Donald Dockendorf, Bureau of Alcohol, Tobacco, Firearms and Explosives, Thomas Reinwart, Federal Bureau of Investigation, Captain Dave Mohlis, Waterloo Police Department, Deputy Chief Thomas Jonker, Cedar Rapids Police Department, and Corporal James Hancox, Marion Police Department.
“As Attorney General Jeff Sessions recently emphasized, the Department of Justice is committed to investigating, prosecuting, and deterring violent crime,” Berry said. “Historically, gun violence and crime rise sharply as temperatures rise. With summer approaching, my office will continue to work with the Cedar Rapids Safe Streets Task Force, Waterloo Federal Task Force, and all of our federal, state, and local partners to combat violent crime by prosecuting the most dangerous of criminal offenders, including those who unlawfully possess and use firearms.”
In recent weeks, the work of federal, state, and local law enforcement agencies has resulted in the following matters in federal court in Cedar Rapids:
Erwin Bell, age 36, of Clinton, Iowa, Gerraud Bruns, age 26, of Dubuque, Iowa, David Caldwell, age 27, from Chicago, Illinois, Daniel Henriksen, age 29, of Elgin, Iowa, Albert Gunnard Linne, age 42, of Lowden, Iowa, Troy Postel-Vargason, 34, from Independence, Iowa, Nicodimus Coles, age 21, Derek Hines, age 32, James Mitchell, age 36, Terrence Clark Shaffer, age 23, and Darryl Williams, age 29, all of Cedar Rapids, Iowa, and Willie Johnson, age 45, Wayne Jones, age 37, Dayton Myers, age 20, Anntwan Dayshawn Phillips, age 25, Jyshawn Robertson, age 19, and Eric Sallis, age 26, all of Waterloo, Iowa, have all been charged with various violations of federal law including possessing a firearm as a felon or drug user. The charges are contained in Complaints and Indictments filed recently in United States District Court in Cedar Rapids.
The complaint filed against Bell alleges that, on February 4, 2017, Bell possessed a loaded .22 caliber revolver after being convicted of seven separate felony offenses. An officer with the Mount Vernon Police Department Police conducted a traffic stop on a car in which Bell was seated in the front passenger seat. During the course of the traffic stop, Bell assaulted the officer by striking him. Bell then fled on foot, and the officer pursued him. After the officer caught him, Bell continued to assault the officer, punching and kicking him in the face. Bell removed the officer’s baton and struck the officer with the baton in an attempt to gain access to the officer’s taser. Bell was eventually placed under arrest. During a search of the car, police located drug paraphernalia, baggies, a scale, marijuana, and cocaine. The case file is 17-MJ-65.
The indictment filed against Bruns, alleges that, on May 6, 2016, Bruns possessed a .40 caliber pistol and .40 caliber ammunition while being an unlawful user of marijuana. Bruns had his first appearance in federal court in Minnesota on November 22, 2016. He was released on bond and scheduled for a second court appearance in Iowa on November 28, 2016. Bruns failed to appear for that hearing and was later arrested in Minnesota on April 6, 2017. He had his first court appearance in Iowa on April 20, 2017. The case file is 16-CR-1036 and 17-MJ-351 (District of Minnesota).
The complaint filed against Caldwell alleges that, on February 3, 2017, Caldwell possessed a .22 caliber revolver while being an unlawful user of marijuana. The complaint alleges that on February 3 officers with the Dubuque Police Department responded to a report of a disturbance, including a possible shooting. Officers found a man who had been shot in the leg. During a subsequent traffic stop, officers located Caldwell in possession of marijuana, and a .22 caliber revolver. The case filed is 17-MJ-131.
The complaint filed against Henriksen alleges that, on June 17, 2016, law enforcement officers and emergency medical personnel responded to Henriksen’s home in Elgin after receiving a 911 call reporting that a four-year old boy had shot himself in the head. Once at the residence, they located a child suffering from a gunshot wound to his head. The child was transported to Palmer Lutheran Hospital in West Union, Iowa, where he was later pronounced dead. The complaint also alleges that during the investigation of the child’s death, investigators determined that Henriksen was the owner of the firearm used in the shooting, which was a Glock 36, .45 caliber handgun. During a search of Henriksen’s residence, officers seized several items of drug paraphernalia, including marijuana smoking devices. The case file is 17-MJ-120 and 17-CR-2021
The complaint filed against Linne alleges that, on October 25, 2016, Linne possessed a loaded .45 caliber pistol and .45 caliber ammunition after being convicted of three separate felony offenses. The complaint alleges that on October 25, police executed a search warrant at Linne’s residence in Lowden and seized the firearm and two loaded magazines from the master bedroom, as well as additional ammunition from a kitchen drawer. The case file is 17-MJ-83 and 17-CR-22.
The indictment filed against Myers alleges that, on January 3, 2017, Meyers possessed a .22 caliber pistol while being an unlawful user of marijuana. Evidence presented during a court hearing detailed that at approximately 8:00 p.m. on January 3, Myers discharged the firearm towards a home. The case file is 17-CR-2018.
The complaint filed against Phillips alleges that on March 18, 2017, Phillips possessed a loaded AP 7.65 Browning firearm after being convicted of a felony offense. The complaint alleges that on March 18, Waterloo police officers responded to a report of shots fired near Ankeny Street. Officers located Phillips nearby and in possession of the firearm. The case file is 17-MJ-129.
The complaint filed against Postel-Vargason alleges that, on February 9, 2017, Postel-Vargason possessed a loaded 9mm handgun with an obliterated serial number after being convicted of two separate felony offenses. The complaint alleges that on February 9, officers with the Independence Iowa Police Department responded to a report of a suspicious person lying in a field and located Postel-Vargason in a hypothermic state. Postel-Vargason was also in possession of the firearm, cash, and more than 500 grams of methamphetamine. The case file is 17-MJ-127.
The complaint filed against Sallis alleges that, on November 27, 2016, Sallis possessed ammunition as a felon and on December 10, 2016, Sallis possessed a firearm and ammunition as a felon. The complaint alleges that on November 27, police responded to reports of a shooting on Kern Street in Waterloo. Witnesses reported that Sallis had shot at another male multiple times. During the investigation, police seized 9mm FC shell casings from the scene. On December 10, police located Sallis outside an apartment building. Police arrested Sallis and executed a search warrant at an apartment associated with Sallis. Officers seized a 9mm pistol, loaded with FC 9mm ammunition, and marijuana from the apartment. Sallis admitted to possessing both the firearm and marijuana. The case file is 17-MJ-0071 and 17-CR-2017.
The complaint filed against Shaffer alleges that, on February 1, 2017, Shaffer possessed a loaded 9mm handgun after being convicted of three separate felony offenses. On February 1, Marion Police responded to a residence after receiving a report of a domestic disturbance. Shaffer was present and placed under arrest. During a search of the residence, police located a loaded 9mm handgun, cocaine, a digital scale, $835, and cell phones. Photographs depicting Shaffer in possession of the firearm were later recovered. The case file is 17-MJ-130.
The complaint against Williams alleges that on January 31, 2017, Williams possessed a loaded 9mm pistol and additional 9mm ammunition after being convicted of three separate felony offenses and two prior misdemeanor crimes of domestic violence. On January 31, officers conducted a traffic stop on a car driven by Williams. During the stop, Williams fled on foot from officers. Officers eventually placed him under arrest and discover a loaded 9mm pistol in his pants and a loaded magazine in his pants pocket. Officers also found marijuana in a separate pocket. The case file is 17-MJ-132.
The indictment filed against Coles alleges that, on October 29, 2016, Coles possessed an AR-556 rifle after being convicted of a felony offense. The indictment also alleges that Coles knowingly made a false statement while purchasing the firearm, by falsely representing that he had never previously been convicted of a felony. The case file is 17-CR-21.
The indictment filed against Hines alleges that, on January 31, 2107, Hines possessed a 9mm pistol after being convicted of a felony offense and while being an unlawful user of methamphetamine. The case file is 17-CR-0200.
The indictment filed against Willie Johnson alleges that, on March 25, 2017, Johnson possessed a 9mm pistol after being convicted of two separate felony offenses. The indictment also alleges that the firearm possessed by Johnson was stolen, and Johnson knew and had reasonable cause to believe that the firearm was stolen. The case file is 17-CR-2019.
The complaint filed against Jones alleges that, on April 12, 2017, Jones possessed a loaded 9mm handgun and 9mm ammunition after being convicted of a felony offense and as an unlawful user of marijuana. The case file is 17-MJ-134.
The indictment filed against Mitchell alleges that, on October 8, 2016, Mitchell possessed .45 caliber ammunition after being convicted of a felony offense. The case file is 17-CR-19.
The indictment filed against Robertson alleges that, on June 21, 2016, Robertson possessed a 9mm rifle and ammunition while being an unlawful user of marijuana. The case file is 17-CR-2020.
If convicted on these charges, all defendants face a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
Defendants Troy Postel-Vargason and Willie Johnson remain fugitives. Anyone with information regarding the whereabouts of Willie Johnson or Troy Postel-Vargason is asked to contact Crime Stoppers at 319-232-5583 or 855-300-8477.
Willie Johnson is a 45-year-old black male, approximately 5 feet, 10 inches tall. He is pictured below:
Troy Postel-Vargason is a 34-year-old white male, approximately 5 feet, 9 inches tall. He is pictured below:
As with any criminal case, a charge is merely an accusation and each defendant is presumed innocent until and unless proven guilty.
The cases were investigated by the Bureau of Alcohol Tobacco and Firearms, the Federal Bureau of Investigation, the Cedar Rapids Safe Streets Task Force (composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department); the Waterloo Federal Task Force (composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department); the Iowa Division of Criminal Investigations, the Cedar Rapids Police Department, the Dubuque Police Department, the Marion Police Department, the Mount Vernon Police Department, the Waterloo Police Department, the Cedar County Sheriff’s Office, and the Fayette County Sheriff’s and are being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes.
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Mock Interviews Held to Benefit Returning CitizensRead the Press Release
Recognizing its previous declaration of one week in April as “National Re-Entry Week” the United States Department of Justice identified the last week of April 2017 for United States Attorney’s Offices throughout the country to host or attend events related to the issue of individuals making the transition from prison back into the community.
The United States Attorney’s Office for the Middle District of Georgia (USAO-MDGA) likewise recognizes the importance of the success of this transition both to those returning to society and to local citizens in reducing recidivism and making our communities safer. The USAO-MDGA is pleased to announce its participation in re-entry events in the Macon-Bibb County community and its ongoing collaboration with the Macon Reentry Coalition (MRC), a local nonprofit organization that connects returning citizens with a variety of resources to assist in that vital transition. The Macon Reentry Coalition is a 501(c)(3) nonprofit organization, promoting a collaborative effort among federal, state, and local agencies, mentors and advocates, faith-based and philanthropic organizations, and community resource partners to empower returning citizens.
On Friday, April 28, the Macon Reentry Coalition will host its monthly meeting at 9:00 a.m. at the Salvation Army Chapel (2312 Houston Avenue). This meeting provides agencies and organizations the opportunity to information share and address issues affecting returning citizens.
On that same day, at 1:30 p.m., a mock job interview project for individuals re-entering society from both state and federal prisons will be held at Dismas Charities (722 2nd Street). Volunteers will serve as interviewers to give the participants valuable job interviewing experience to assist in their efforts to successfully enter the workforce.
“Macon-Bibb and the Middle Georgia region contain vast and critical resources to help ensure the successful reintegration of our returning citizens,” Macon Reentry Coalition CEO Todd Robinson noted. “Many of these men and women are talented, hard-working individuals that just need counsel and direction. Since 2008, the Macon Reentry Coalition has brought resources together to help reentrants become productive citizens who can support their families. Stronger families equates to a safer community.”
Questions regarding any of the events or the Macon Reentry Coalition can be directed to Brittney Kish Lightsey, Reentry and Community Outreach Coordinator for the United States Attorney’s Office, at 478-621-2735 or [email protected].
Michael V. Bamba Sentenced to Prison in Ice Trafficking CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MICHAEL V. BAMBA, age 33, from Tamuning, was sentenced in District Court to a 57-month term of imprisonment, to be followed by three years of supervised release, and 100 hours of community service. The Court also ordered BAMBA to pay a mandatory $100 assessment fee. In addition, defendants who are convicted of a federal drug offense may no longer qualify for certain federal benefits.
On April 29, 2015, BAMBA was charged by Indictment with Conspiracy to Distribute Methamphetamine Hydrochloride and Attempted Possession with Intent to Distribute Methamphetamine Hydrochloride. On August 13, 2015, BAMBA entered a guilty plea to Conspiracy to Distribute Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(C). The investigation revealed that BAMBA, and other individuals, agreed to use the mail system to distribute large quantities of methamphetamine on Guam. Law enforcement seized over 137 grams of methamphetamine, with a 90 percent purity level.
The investigation was conducted by the U.S. Postal Service and the Drug Enforcement Administration, with assistance by the Guam Superior Court Probation Office, Guam Customs and Quarantine Agency, and the Guam Police Department. The case was prosecuted by Clyde Lemons, Jr., Assistant United States Attorney for the District of Guam.
Man from Mexico pleads guilty to posing as a Puerto Rican citizen on passport application in Morgan CityRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from Mexico pleaded guilty last week to lying on a passport application he applied for at the Morgan City post office.
Roberto Calderon-Perez, 27, of Mexico, pleaded guilty Thursday before U.S. Magistrate Judge Patrick Hanna to one count of false statement in application for passport. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Calderon-Perez submitted a passport application on June 20, 2016 to the Morgan City post office in the name of a Puerto Rican resident. He also submitted other false information such as a birth date and social security number. Law enforcement agents also found that the picture on his identification did not match older records of the individual with the same name in Puerto Rico.
Calderon-Perez faces 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of August 2, 2017.
The State Department and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.