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6 February 2017
Healthcare Service Provider to Pay $60 Million to Settle Medicare and Medicaid False Claims Act AllegationsRead the Press Release
WASHINGTON – A major U.S. hospital service provider, TeamHealth Holdings, as successor in interest to IPC Healthcare Inc., f/k/a IPC The Hospitalists Inc. (IPC), has agreed to resolve allegations that IPC violated the False Claims Act by billing Medicare, Medicaid, the Defense Health Agency and the Federal Employees Health Benefits Program for higher and more expensive levels of medical service than were actually performed (a practice known as “up-coding”), the Department of Justice announced today. Under the settlement agreement, TeamHealth has agreed to pay $60 million, plus interest.
“This settlement reflects our ongoing commitment to ensure that health care providers appropriately bill government programs vital to patient health care,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
The government contended that IPC knowingly and systematically encouraged false billings by its hospitalists, who are medical professionals whose primary focus is the medical care of hospitalized patients. Specifically, the government alleged that IPC encouraged its hospitalists to bill for a higher level of service than actually provided. IPC’s scheme to improperly maximize billings allegedly included corporate pressure on hospitalists with lower billing levels to “catch up” to their peers.
“Medical providers who fraudulently seek payments to which they are not entitled will be held accountable,” said U.S. Attorney Zachary T. Fardon for the Northern District of Illinois. “False documentation of treatment is not just flawed patient care; it is illegal.”
As part of the settlement, TeamHealth entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) covering the company’s hospital medicine division. This CIA is designed to increase TeamHealth’s accountability and transparency so that the company will avoid or promptly detect future fraud and abuse.
“When health care companies boost their profits by misrepresenting the services they bill to taxpayer-funded health care programs, our office will make sure they are held accountable for their deceptive schemes and that they make changes to bill these programs appropriately,” said Special Agent in Charge Lamont Pugh of HHS-OIG.
The settlement resolves allegations filed in a lawsuit by Dr. Bijan Oughatiyan, a physician formerly employed by IPC as a hospitalist. The lawsuit was filed in a federal court in Chicago, Illinois, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Mr. Oughatiyan will receive approximately $11.4 million.
The government’s intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Northern District of Illinois, and HHS-OIG.
The case is captioned United States ex rel. Oughatiyan v. IPC The Hospitalist, Inc., et al., Case No. 09-C-5418 (N.D. Ill.). The claims resolved by the settlements are allegations only and there has been no determination of liability.
Healthcare Service Provider to Pay $60 Million to Settle Medicare and Medicaid False Claims Act AllegationsRead the Press Release
A major U.S. hospital service provider, TeamHealth Holdings, as successor in interest to IPC Healthcare Inc., f/k/a IPC The Hospitalists Inc. (IPC), has agreed to resolve allegations that IPC violated the False Claims Act by billing Medicare, Medicaid, the Defense Health Agency and the Federal Employees Health Benefits Program for higher and more expensive levels of medical service than were actually performed (a practice known as “up-coding”), the Department of Justice announced today. Under the settlement agreement, TeamHealth has agreed to pay $60 million, plus interest.
“This settlement reflects our ongoing commitment to ensure that health care providers appropriately bill government programs vital to patient health care,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
The government contended that IPC knowingly and systematically encouraged false billings by its hospitalists, who are medical professionals whose primary focus is the medical care of hospitalized patients. Specifically, the government alleged that IPC encouraged its hospitalists to bill for a higher level of service than actually provided. IPC’s scheme to improperly maximize billings allegedly included corporate pressure on hospitalists with lower billing levels to “catch up” to their peers.
“Medical providers who fraudulently seek payments to which they are not entitled will be held accountable,” said U.S. Attorney Zachary T. Fardon for the Northern District of Illinois. “False documentation of treatment is not just flawed patient care; it is illegal.”
As part of the settlement, TeamHealth entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) covering the company’s hospital medicine division. This CIA is designed to increase TeamHealth’s accountability and transparency so that the company will avoid or promptly detect future fraud and abuse.
“When health care companies boost their profits by misrepresenting the services they bill to taxpayer-funded health care programs, our office will make sure they are held accountable for their deceptive schemes and that they make changes to bill these programs appropriately,” said Special Agent in Charge Lamont Pugh of HHS-OIG.
The settlement resolves allegations filed in a lawsuit by Dr. Bijan Oughatiyan, a physician formerly employed by IPC as a hospitalist. The lawsuit was filed in a federal court in Chicago, Illinois, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Mr. Oughatiyan will receive approximately $11.4 million.
The government’s intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Northern District of Illinois, and HHS-OIG.
The case is captioned United States ex rel. Oughatiyan v. IPC The Hospitalist, Inc., et al., Case No. 09-C-5418 (N.D. Ill.). The claims resolved by the settlements are allegations only and there has been no determination of liability.
Harrison County man pleads guilty to cocaine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ruben L. Aguilar, 29, of Clarksburg, West Virginia, was convicted of cocaine distribution today, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Aguilar pled guilty to one count of “Conspiracy to Distribute Cocaine Base.” He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Hampshire County man and Berkeley County man sentenced for separate drug-related crimesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Aaron Matthew Reed, 37, of Romney, West Virginia, and Sean Dickerson, 29, of Martinsburg, West Virginia were sentenced today for separate drug crimes, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Reed was sentenced to 18 months incarceration. In October 2016, a jury found Reed guilty of one count of “Possession of Material Used in the Manufacture of Methamphetamine.” Dickerson was sentenced to 18 months incarceration after pleading guilty to one count of “Possession with the Intent to Distribute Heroin” in November 2016.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted both cases on behalf of the government. Assistant U.S. Attorney Shawn M. Adkins assisted on the Reed case. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated the Dickerson case. The Reed case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia Division of Natural Resource Criminal Investigation, and the Hampshire County Sheriff’s Office.
Chief U.S. District Judge Gina M. Groh presided.
Groton Man Sentenced to More Than 5 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LORENZO MALCOLM, 28, of Groton, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 66 months of imprisonment, followed by three years of supervised release, for gun and drug offenses.
According to court documents and statements made in court, on March 1, 2016, MALCOLM was arrested in Groton after a search of his person revealed five individually-wrapped packages of cocaine, one baggie containing crack cocaine and two individually-wrapped baggies of heroin. In addition, a search of a vehicle in which MALCOLM had been a passenger revealed a gym bag that contained a .22 caliber Sig Sauer pistol and seven rounds of ammunition, and a small backpack that contained more than 300 grams of heroin, marijuana and drug paraphernalia.
MALCOLM has been detained since his arrest. On November 9, 2016, he pleaded guilty to one count of possession with intent to distribute cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime.
This investigation has been conducted by the Town of Groton Police Department and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Fulton County Contract Supplier Guilty of Giving Kickbacks Tied to Construction of Fulton County Detention CenterRead the Press Release
PADUCAH, Ky. – a Dresden, Tennessee, business owner and contract supplier pled guilty today in United States District Court before Senior Judge Thomas B. Russell for his role in a conspiracy to defraud Fulton County citizens, through kickbacks and concealment of costs associated with work performed on the 2015 Fulton County Detention Center expansion, announced United States Attorney John E. Kuhn, Jr.
Ronald D. Armstrong, 60, pled guilty to four charges including Honest Services Wire Fraud and Wire Fraud for his role in a conspiracy that allegedly involved then Fulton County Jailer Ricky D. Parnell and others between April 2015 and August 2016.
According to the plea agreement, Armstrong is the owner of Armstrong Construction, located in Dresden, Tennessee, whose company often performed contracting work for Fulton County both as part of the Fulton County Detention Center expansion (Project) and for work done prior to the Project. Armstrong has been doing business with Parnell and Fulton County for approximately twenty years.
Armstrong was awarded a $210,000 general contractor contract by the Fulton County Fiscal Court as part of the Project. Parnell influenced the Fulton County Fiscal Court to award Armstrong with this contract with the understanding that Armstrong would pay Parnell $100,000 of his fees to Parnell as a kickback for being awarded the contract. In following through with this agreement, Armstrong so far has paid Parnell $80,000 in cash.
Armstrong knowingly and voluntarily agreed and conspired with Parnell to give Parnell cash kickbacks due to Parnell influencing the Fulton County Fiscal Court to award Armstrong with the general contractor contract for the Project, which Parnell could do because he was the Fulton County Jailer. Armstrong’s contractor fees were paid by Fulton County. As part of their kickback scheme, the Fiscal Court paid Armstrong by check in amounts of $50,000, $60,000, and $50,000, which were drawn on the Fulton County account with Republic Bank in Louisville, Kentucky, and those checks triggered interstate wire transfers.
Armstrong and Parnell both profited from their arrangement and neither the Fulton County Fiscal Court nor the citizens of Fulton County were ever made aware of the arrangement. In doing so, Armstrong had the intent to defraud the citizens of Fulton County through the kickback scheme he entered into with Parnell.
Armstrong was charged by grand jury indictment, with co-defendants Ricky D. Parnell, 59, of Hickman, Kentucky; Michael Homra, 79, of Fulton, Kentucky; Jimmy Boyd, 56, of South Fulton, Tennessee; and Daniel C. Larcom, 42, of Union City, Tennessee, on November 15, 2016 and were arraigned in United States District Court in Paducah, before Magistrate Judge Lanny King that same day.
If convicted at trial, Armstrong could be sentenced to no more than 80 years in prison, pay a $1,000,000 fine, and be sentenced to serve a three-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the Kentucky Attorney General’s Office and the Federal Bureau of Investigation (FBI).
Former Lincoln Land Community College Employee Pleads Guilty to Fraud Scheme; Agrees to Pay Back Nearly $700,000Read the Press Release
SPRINGFIELD, Ill. – A former telecommunications employee of Lincoln Land Community College, John H. Martinez, 47, waived indictment and pled guilty to a scheme that defrauded the college of nearly $700,000 over seven years. Martinez, of the 4600 block of Lily Lane, Springfield, Ill., appeared before U.S. Magistrate Judge Tom Schanzle-Haskins on Friday, Feb. 3.
According to court documents, during the time Martinez carried out the scheme, from 2005 to February 2012, he was employed as a telecommunications administrator. In this capacity, Martinez worked on the college’s telephone system and was authorized to order products for its communications network. For vendor payments greater than a certain amount, Martinez was required to complete certain forms and documentation to obtain supervisory approval for the expenditure. As part of the scheme, Martinez admitted he repeatedly forged his supervisors’ signatures to authorize expenditures and caused the college to issue checks to fictitious vendors.
To carry out the scheme, Martinez removed some of the checks to fictitious vendors from the college’s mailroom prior to mailing. For one of the vendors, Martinez caused checks to be mailed to an invalid address, knowing that the checks would be returned and given to him for delivery. Martinez then deposited the fraudulent checks in his personal bank account and used the funds for personal expenses. Two other vendors were owned by Martinez’s friends, with whom Martinez agreed that the friends would deposit the checks in their personal accounts and make cash payments back to Martinez. Martinez allowed the vendors/friends to retain part of the proceeds from the checks in exchange for their assistance in the scheme.
Martinez admitted that he used the fraud proceeds to finance his personal lifestyle, including personal expenses, repeated personal travel, and alcohol expenses. As a result of the scheme, Martinez caused a loss of approximately $695,401 to Lincoln Land Community College.
Martinez’s sentencing is scheduled on June 5, 2017. As part of the plea agreement, Martinez has agreed to pay full restitution, in the amount of $695,401 to Lincoln Land Community College and its insurers. The parties have further agreed that the advisory sentencing guideline range which will be presented to the court may be up to 51 months in prison.
The case is being prosecuted by Assistant U.S. Attorney Timothy A. Bass. The investigation was conducted by the U.S. Postal Inspection Service, Illinois State Police, and the Lincoln Land Police Department, with the full cooperation of Lincoln Land Community College, which referred the matter to law enforcement.
Former Financial Advisor Pleads Guilty to Stealing over $1 Million from ClientsRead the Press Release
WASHINGTON – A former financial advisor, who provided services and investment advice to current and former professional athletes, pled guilty today to a federal charge stemming from the theft of more than $1 million from his clients, announced U.S. Attorney Channing D. Phillips and Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
Brian J. Ourand, 55, now of Chicago, admitted stealing from four athletes, including boxing champion Mike Tyson and former National Basketball Association All-Star Glen Rice. At the time of the offenses, Ourand was an executive for a Washington, D.C.-based company.
Ourand pled guilty to a charge of wire fraud in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Ourand faces a likely range of 33 to 41 months in prison and a potential fine. The plea agreement calls for him to pay $1,002,390 in restitution and an identical amount as a forfeiture money judgment. Ourand is to be sentenced on May 2, 2017, by the Honorable Tanya S. Chutkan.
In his plea, Ourand admitted that he embezzled the funds through various means, including numerous fraudulent checks that he made payable in his own name and to cash, which he later deposited into his personal accounts. Ourand also admitted to stealing his clients’ money for the benefit of others, including his girlfriend and another individual identified in court documents as “Person B”. In one such instance, Ourand obtained a cashier’s check using funds from the bank account of Mr. Rice in the amount of $10,000 in order to pay the registration fee of “Person B” to participate in the 2009 World Series of Poker tournament in Las Vegas. Ourand also used client funds to send numerous wire transfers to his girlfriend and “Person B” via Western Union, at least some of which money was used to pay off Ourand’s gambling debts.
“Financial advisor Brian Ourand violated the trust of clients who depended upon him to protect their investments, using over $1 million of their hard-earned money for his own personal purposes,” said U.S. Attorney Phillips. “Thanks to law enforcement, his fraudulent conduct came to light and he is being held accountable for the money that he stole.”
“Today, Mr. Ourand admitted his participation in an embezzlement scheme intended to defraud investors,” said Assistant Director in Charge Vale. “The FBI is committed to protecting the public from investment fraud and other deceptive scams, and will vigorously investigate those who criminally abuse their positions of trust for their own personal gain.”
According to a statement of offense submitted as part of the plea, the criminal activities began as early as 2006 and continued through July 2011. Ourand’s employer, identified in court documents as “Company A,” terminated his employment in August of 2011, after the scheme was uncovered. The company reimbursed the athletes for their losses.
In his work for the firm, Ourand and the company provided advisory and financial management services to high net-worth individuals, most of whom were current or former professional athletes. For example, Ourand and the company paid invoices and bills, coordinated tax preparation, and provided estate planning on behalf of clients. In that capacity, Ourand managed his clients’ personal and business bank accounts and credit cards, among other financial-related services.
The criminal charges involve Ourand’s work for Mr. Tyson, Mr. Rice, and two other athletes, identified in court documents as “Athlete C” and “Athlete D.” As part of the plea agreement, Ourand agreed that he abused a position of trust in committing the offense.
According to the statement of offense, Ourand deposited nearly 100 checks, drawn on the accounts of the four athletes, into a personal bank account, even though he was not authorized to do so. He also initiated numerous wire transfers, drawn on the bank accounts of Mr. Tyson, Mr. Rice and “Athlete C,” for which he had no authorization. As part of his scheme, Ourand also made numerous unauthorized ATM withdrawals and debit card transactions using funds belonging to Mr. Tyson, and obtained credit cards in his own name on the accounts of Mr. Rice and a foundation formed by “Athlete C,” which Ourand used to make unauthorized purchases.
Ourand sought to conceal his activities by generating documentation falsely claiming the money was used for business-related or otherwise authorized expenses, such as “personal expenses” for the client. His actions caused $546,168 in losses for Mr. Rice; $265,124 for Mr. Tyson; $182,957 for “Athlete C,” and $8,141 for “Athlete D.”
The Securities and Exchange Commission previously announced charges against Ourand, who was later found by an administrative law judge to have misappropriated funds from client accounts in violation of securities laws. In an initial decision issued in March 2016, the SEC ordered Ourand to pay disgorgement of $671,367 plus prejudgment interest and a $300,000 penalty, and he was barred from the securities industry.
In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Vale commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office for the District of Columbia, including Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorney Vesna Harasic-Yaksic, also of the Asset Forfeiture and Money Laundering Section; Supervisory Paralegal Specialist Tasha Harris; and former Paralegal Specialists Heather Sales and Angela Lawrence.
Finally, they commended the work of Special Assistant U.S. Attorney David A. Last and Assistant U.S. Attorney Peter C. Lallas, who are prosecuting the case.
Fifth Person Arrested in Connection with Scheme to Smuggle Guns to LebanonRead the Press Release
Fadi Yassine, age 42, a Lebanese citizen, was arrested last evening as he disembarked an international flight arriving in New York City.
Yassine was arrested without incident on a warrant issued in the Northern District of Iowa on a criminal complaint charging him with conspiring to violate the Arms Export Control Act.
According to an affidavit filed in support of the criminal complaint, Yassine purchased guns in Lebanon that had been acquired in the United States and shipped to Lebanon by Ali Herz, Adam Al-Herz, Bassem Herz, and Sarah Majid Zeaiter. Yassine also purportedly communicated via Facebook from Lebanon with Bassem Herz in the United States to provide direction concerning which firearms to purchase. The affidavit also states that Yassine gave $30,000 cash to Ali Herz in Lebanon to be used to acquire more guns in the United States.
The Herzs and Zeaiter were each sentenced to terms of imprisonment in 2016 following their pleas of guilty to conspiring to violate the Arms Export Control Act and other offenses.
Yassine made his initial appearance in federal court in Brooklyn, New York, this afternoon. Yassine waived further proceedings in New York and was ordered to be transferred to Cedar Rapids in the Northern District of Iowa by the United States Marshals Service. A court appearance will be scheduled upon Yassine’s arrival in Cedar Rapids.
As with any criminal case, a charge is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations, the Bureau of Alcohol Tobacco and Firearms, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-mj-00030.
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Executive Office for Immigration Review Swears in 12 Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of 12 new immigration judges. Chief Immigration Judge MaryBeth Keller presided over the investiture during a ceremony held Feb. 3, 2017, in the ceremonial courtroom of the E. Barrett Prettyman U.S. Courthouse, in Washington, D.C.
After a thorough application process, Attorney General Loretta E. Lynch appointed Victoria L. Argumedo, Steven D. Caley, Ila C. Deiss, Delia I. Gonzalez, Deborah K. Goodwin, Stephanie E. Gorman, Richard A. Jamadar, Julie Nelson, Emmett D. Soper, Jem C. Sponzo, Arwen Ann Swink, and Veronica S. Villegas to their new positions.
“On Jan. 8, 2017, we welcomed these 12 appointees to our growing immigration judge corps,” said Keller. “With this investment, EOIR has for the first time in its history exceeded 300 immigration judges. The agency recognizes that we must continue hiring immigration judges in order to address the pending caseload.”
Biographical information follows.
Victoria L. Argumedo, Immigration Judge, San Francisco Immigration Court
Attorney General Loretta E. Lynch appointed Victoria L. Argumedo to begin hearing cases in February 2017. Judge Argumedo earned a Bachelor of Arts degree in 1995 from the University of Vermont and a Juris Doctor in 2000 from the Golden Gate University School of Law. From 2012 to January 2017, she was in private practice at Argumedo Garzon Law Group, in San Francisco. From 2010 through 2012, she was in private practice at Surowitz & Argumedo, in San Francisco. From 2002 through 2010, she was in private practice at the Law Office of Victoria L. Argumedo, in San Francisco. From 2001 through 2002, she was an associate attorney at the Law Offices of Walter R. Pineda, in Redwood City, Calif. From May 2001 to September 2001, she served as a contract attorney for the Law Office of Enrique Ramirez, in San Francisco. From February 2001 to May 2001, she served as a contract attorney for Minami, Lew & Tamaki. Judge Argumedo is a member of the State Bar of California.
Steven D. Caley, Immigration Judge, Aurora Immigration Court
Attorney General Loretta E. Lynch appointed Steven D. Caley to begin hearing cases in February 2017. Judge Caley earned a Bachelor of Arts degree in 1977 from Hanover College and a Juris Doctor in 1980 from the New York University School of Law. From 2012 to January 2017, he served as a senior attorney for GreenLaw, in Atlanta. From 2000 through 2012, he was a partner and senior associate for Weissman, Nowack, Curry & Wilco, in Atlanta. From 2005 through 2006, and previously from 1996 through 1999, he served part-time as a special assistant administrative law judge for the Office of State Administrative Hearings, in Atlanta. From 1998 through 2000, he served as regional director for Legal Aid Services of Oregon, in Portland, Ore. From 1990 through 1998, he served as director of litigation for the Atlanta Legal Aid Society Inc., in Atlanta. From 1980 through 1990, he served in various capacities for the Legal Services Corporation of Alabama, in Dotham, Ala., including as managing attorney, senior staff attorney, and staff attorney. From 2003 through 2007, he served on the faculty of the Georgia State University College of Law as an adjunct professor. Judge Caley is a member of the Alabama State Bar, Florida Bar, State Bar of Georgia, and Oregon State Bar.
Ila C. Deiss, Immigration Judge, San Francisco Immigration Court
Attorney General Loretta E. Lynch appointed Ila C. Deiss to begin hearing cases in February 2017. Judge Deiss earned Bachelor of Arts degrees in 1991 from the University of California at Davis, a Master of Public Administration in 1996 from the New York University Robert F. Wagner Graduate School for Public Service, and a Juris Doctor in 1999 from the City University of New York School of Law. From 2005 to January 2017, she served as an assistant U.S. attorney for the U.S. Attorney’s Office, Northern District of California, Department of Justice (DOJ), in San Francisco. From 2003 through 2005, she served as a staff attorney for the U. S. Court of Appeals for the Ninth Circuit. From 2001 through 2002, she served as a senior court counsel for the Supreme Court of the Republic of Palau. From April 2001 to August 2001, she served as a judicial law clerk for the Honorable Richard M. Berman, U.S. District Court for the Southern District of New York. From 1999 through 2001, she served as a judicial law clerk for the Staff Attorney’s Office, U.S. Court of Appeals for the Second Circuit. Judge Deiss is a member of the Connecticut and New York state bars.
Delia I. Gonzalez, Immigration Judge, Harlingen Immigration Court
Attorney General Loretta E. Lynch appointed Delia I. Gonzalez to begin hearing cases in February 2017. Judge Gonzalez earned a Bachelor of Arts degree in 1993 from the University of Houston and a Juris Doctor in 2001 from the Texas Southern University Thurgood Marshall School of Law. From 2006 through 2016, she served as an assistant chief counsel for the Office of the Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security. From 2001 through 2006, she served as a trial attorney for the Antitrust Division, Department of Justice, entering on duty through the Attorney General’s Honors Program. Judge Gonzalez is a member of the State Bar of Texas.
Deborah K. Goodwin, Immigration Judge, Miami Immigration Court
Attorney General Loretta E. Lynch appointed Deborah K. Goodwin to begin hearing cases in February 2017. Judge Goodwin earned a Bachelor of Arts degree in 1986 from Wilson College and a Juris Doctor in 2000 from the State University of New York at Buffalo School of Law. From 2015 to January 2017, she served as an associate legal advisor for the District Court Litigation Division, Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in Washington, D.C. From 2007 through 2015, she served as an associate counsel for U.S. Citizenship and Immigration Services, DHS, in San Francisco. From 2002 through 2007, she served as an assistant chief counsel for ICE, DHS, in San Francisco. Judge Goodwin is a member of the Florida Bar.
Stephanie E. Gorman, Immigration Judge, Houston Immigration Court
Attorney General Loretta E. Lynch appointed Stephanie E. Gorman to begin hearing cases in February 2017. Judge Gorman earned a Bachelor of Science degree in 1996 from California State University Sacramento, a Juris Doctor in 2002 from the Thomas Jefferson School of Law, and a Master of Laws degree in 2005 from the University of San Diego School of Law. From 2014 to January 2017, she served as an attorney and legal instructor at the Federal Law Enforcement Training Center in Glynco, Ga., for the Office of the Chief Counsel, Customs and Border Protection, Department of Homeland Security (DHS). From 2008 through 2014, she served as an assistant chief counsel for the Office of the Principal Legal Advisor, Immigration and Customs Enforcement, DHS. From 2009 through 2012, she also served as a special assistant U.S. attorney for the U.S. Attorney’s Office, Middle District of Florida, Department of Justice (DOJ), in Orlando, Fla. From 2007 through 2008, she served as a judicial law clerk for the Honorable M. James Lorenz, U.S. District Court for the Southern District of California, in San Diego. From March 2007 to September 2007, she served as a judicial law clerk for the Honorable Roger T. Benitez, U.S. District Court for the Southern District of California, in San Diego. From 2006 through 2007, she served as an assistant state attorney for the Twelfth Judicial Circuit, in Sarasota, Fla. From 2003 through 2006, she served in various capacities on the faculty of the Thomas Jefferson School of Law, including as visiting assistant professor of law and senior legal writing instructor and adjunct professor. From 2002 through 2004, she served as an associate attorney for the Law Office of Matthew P. Rocco, in Carlsbad, Ca. Judge Gorman is a member of the State Bar of California and the Florida Bar.
Richard A. Jamadar, Immigration Judge, Houston Immigration Court
Attorney General Loretta E. Lynch appointed Richard A. Jamadar to begin hearing cases in February 2017. Judge Jamadar earned a Bachelor of Laws degree in 1987 from the University of the West Indies Faculty of Law and a Juris Doctor in 1996 from the Washington University School of Law. From 2004 to January 2017, he served as an assistant chief counsel for the Office of the Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Orlando, Fla. During this time, from 2011 through 2013, he served as a special assistant U.S. attorney for the U.S. Attorney’s Office, Middle District of Florida, Department of Justice, in Orlando, Fla. From 2003 through 2004, he served as a senior attorney for the Department of Children and Families, Tenth Judicial Circuit, in Bartow, Fla. From 1999 through 2002, he served as an assistant state attorney for the State Attorney’s Office, Ninth Judicial Circuit, in Orlando, Fla. From 1996 through 1998, he served as an associate attorney for Polatsek and Scalfani, in Fort Lauderdale, Fla. Judge Jamadar is a member of the Florida Bar.
Julie Nelson, Immigration Judge, San Francisco Immigration Court
Attorney General Loretta E. Lynch appointed Julie Nelson to begin hearing cases in February 2017. Judge Nelson earned a Bachelor of Arts degree in 2003 from Biola University and a Juris Doctor in 2006 from California Western School of Law. From December 2014 to January 2017, and previously from 2009 through May 2014, she served as an assistant chief counsel for the Office of the Principal Legal Advisor, Immigration and Customs Enforcement, Department of Homeland Security, in Eloy, Az. From June 2014 to November 2014, she served as a judicial law clerk for the Honorable Steven P. Logan, U.S. District Court for the District of Arizona. From 2008 through 2009, she served as an attorney advisor for the Los Angeles Immigration Court, Executive Office for Immigration Review (EOIR), DOJ. From 2007 through 2008, she served as a judicial law clerk for the San Diego Immigration Court, EOIR, DOJ, entering on duty through the Attorney General’s Honors Program. From 2007 through 2009, she served on the faculty of Biola University as an adjunct professor. Judge Nelson is a member of State Bar of California.
Emmett D. Soper, Immigration Judge, Arlington Immigration Court
Attorney General Loretta E. Lynch appointed Emmett D. Soper to begin hearing cases in February 2017. Judge Soper earned a Bachelor of Arts degree in 1998 from Carleton College and a Juris Doctor in 2005 from the University of Oregon School of Law. From 2012 to January 2017, he served as an associate general counsel for the Office of the General Counsel, Executive Office for Immigration Review (EOIR), Department of Justice (DOJ), in Falls Church, Va. From 2010 through 2012, he served as an attorney advisor for the Office of Legal Policy, DOJ, in Washington, D.C. From 2006 through 2010, he served as an attorney advisor for the Office of the Chief Immigration Judge, EOIR, DOJ, in Falls Church, Va. From 2005 through 2006, he served as a judicial law clerk for the Buffalo Immigration Court, EOIR, DOJ. Judge Soper is a member of the Oregon State Bar.
Jem C. Sponzo, Immigration Judge, New York City Immigration Court
Attorney General Loretta E. Lynch appointed Jem C. Sponzo to begin hearing cases in February 2017. Judge Sponzo earned a Bachelor of Arts degree in 2003 from Hamilton College and a Juris Doctor in 2006 from the University of Connecticut School of Law. From 2007 to January 2017, she served as a trial attorney for the Civil Division, Office of Immigration Litigation, Department of Justice (DOJ), in Washington, D.C. From January 2015 to July 2015, she also served as a clearance counsel for the Office of Presidential Personnel, White House, Executive Office of the President of the United States. From 2006 through 2007, she served as a judicial law clerk for the New York City Immigration Court, Executive Office for Immigration Review, DOJ, entering on duty through the Attorney General’s Honors Program. Judge Sponzo is a member of the New York State Bar.
Arwen Ann Swink, Immigration Judge, San Francisco Immigration Court
Attorney General Loretta E. Lynch appointed Arwen Ann Swink to begin hearing cases in February 2017. Judge Swink earned a Bachelor of Arts degree in 2002 from California State University San Marcos and a Juris Doctor in 2006 from the University of California Hastings College Of Law. Prior to this post, she served as a staff attorney in the motions unit of the U.S. Court of Appeals for the Ninth Circuit, in San Francisco, beginning in 2010. From 2006 through 2010, she served as an associate attorney for the Law Office of Robert B. Jobe, in San Francisco. Judge Swink is a member of the State Bar of California.
Veronica S. Villegas, Immigration Judge, Los Angeles Immigration Court
Attorney General Loretta E. Lynch appointed Veronica S. Villegas to begin hearing cases in February 2017. Judge Villegas earned a Bachelor of Arts degree in 1996 from California State University Fullerton and a Juris Doctor in 1999 from the Loyola Law School. From 2012 to January 2017, and previously from 2004 through 2005, she was in private practice at the Law Office of Veronica S. Villegas, in West Covina, Calif. From 2005 through 2012, she was a partner at Hill, Piibe & Villegas, in West Covina, Calif. From 2003 through 2004, she served as an assistant chief counsel for the Office of the Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security. From 1999 through 2003, she served as an assistant district counsel for the former Office of the District Counsel, Immigration and Naturalization Service, Department of Justice. Judge Villegas is a member of the State Bar of California.
East St. Louis Resident Charged as Felon in Possession of a FirearmRead the Press Release
Timothy J. Felty, 50, of East St. Louis, Illinois, was charged on January 18, 2017 with two counts of being a felon in possession of a firearm, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
The indictment alleges that on December 7, 2016, Felty knowingly possessed two firearms in violation of Title 18, United States Code, Section 922(g)(1). If convicted, Felty faces on each count a prison sentence of up to ten years, a fine of up to $250,000, and up to three years supervised release.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The prosecution is the result of an investigation by the Metro East Public Corruption Task Force. The case is being prosecuted byAssistant United States Attorney James G. Piper, Jr.
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District Man Sentenced to Eight Years in Prison for Attacking Two Men in Northwest WashingtonRead the Press Release
WASHINGTON – Yeison Gomez Chavez, 18, of Washington, D.C., has been sentenced to an eight-year prison term for his role in a pair of attacks carried out against two men within a 90-minute period last summer, U.S. Attorney Channing D. Phillips announced today.
Gomez Chavez pled guilty in November 2016, in the Superior Court of the District of Columbia, to charges of aggravated assault while armed and assault with a dangerous weapon. He was sentenced on Feb. 3, 2017, by the Honorable Lynn Leibovitz. Upon completion of his prison term, Gomez Chavez will be placed on five years of supervised release.
Two co-defendants, Christian Mendoza, 18, and Ever Umanzor, 16, both of Washington, D.C., also have pled guilty to charges and are awaiting sentencing. Umanzor was charged as an adult given the serious nature of the crimes.
The charges against Gomez Chavez stemmed from attacks on two victims. However, in a proffer of facts submitted at his plea hearing, Gomez Chavez also admitted to taking part in the attacks of two additional victims at about the same time and in the same area.
According to the government’s evidence, the first attack took place on Aug. 29, 2016, at approximately 11:30 p.m. Gomez Chavez, Mendoza, and Umanzor arrived in front of a location in the 3100 block of 16th Street NW. The victim rode his bicycle to this location, and was approached by Mendoza, who stood in front of him and stopped him from riding forward. Within seconds, Umanzor and Gomez Chavez rushed toward the victim and began striking him with fists and feet. Gomez Chavez also slashed the victim with a knife. While Umanzor and Gomez Chavez struck and stabbed the victim, Mendoza took and held his bicycle. The victim fled after being stabbed, with Mendoza retaining possession of his bicycle. Gomez Chavez pled guilty to aggravated assault while armed for this attack.
The second attack took place at about 1 a.m. on Aug. 30, 2016, about 90 minutes later. Gomez Chavez and Mendoza were in front of a restaurant in the 1700 block of Columbia Road NW. The second victim exited the restaurant to check on a friend. He reported that an unknown suspect threw a rock at the back of his head and that someone stabbed him in his lower back. Gomez Chavez pled guilty to assault with a dangerous weapon for this incident.
In his proffer, Gomez Chavez admitted to participating in other offenses that took place a short time later with Mendoza, although he did not plead guilty to charges from these crimes. At about 1:30 a.m. on Aug. 30, a third victim was approached and robbed at a gas station in the 2800 block of Sherman Avenue NW. The defendants approached the victim, stated that the gas station was 18th Street territory, and asked what he was doing there. The victim tried to ignore them, but the defendants assaulted him. At least one of the defendants produced a knife and ordered the victim to give them his bicycle. Finally, at approximately 2:40 a.m., Gomez Chavez and Mendoza approached a fourth victim in the 1600 block of Columbia Road NW and asked if he was affiliated with MS-13 or with the 18th Street Crew. The victim replied that he was not affiliated with any gang and attempted to flee. Gomez Chavez and Mendoza caught him, surrounded him, and forced him to stop his bicycle. At least one suspect brandished a knife, and the victim was stabbed in his right bicep. At some point, the victim was able to flee.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Juanita Harris, former Victim/Witness Advocate Christina Principe, and Paralegal Specialists Debra McPherson and Donville Drummond. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Monica Trigoso and Michael Romano, who investigated the case and handled the sentencing.
Coushatta man pleads guilty to drug, firearm chargesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Coushatta man pleaded guilty last week to illegally possessing methamphetamine and firearms.
Aaron Joseph Clark, 65, of Coushatta, La., pleaded guilty February 2, 2017 before U.S. District Judge Elizabeth E. Foote to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of drug trafficking. According to the guilty plea, law enforcement agents identified Clark as a suspect in a drug case and conducted a search of his temporary residence in Ringgold, La., on January 26, 2016. They found a gram of methamphetamine, two grams of marijuana and nine Xanax pills. They also found digital scales, baggies, syringes and pipes. Additionally, agents located ammunition and a number of loaded weapons including: three revolvers, two derringers, four pistols, four rifles, three shotguns and a weapon made from a shotgun with no serial number. Two of the shotguns were sawed off, and at least six silencers were also found among his possessions. Two days later, agents found 20 grams of methamphetamine hidden in an ammo bag.
Clark faces up to 20 years in prison for the drug distribution count and mandatory five years for the firearm count, which is to run consecutive to the distribution count. He also faces at least three years of supervised release and a $1 million fine. The court set a sentencing date of May 31, 2017.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, Bienville Parish Sheriff’s Office, Red River Parish Sheriff’s Office and Tri-Parish Drug Task Force conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick is prosecuting the case.
Clinic Manager Pleads Guilty in $70 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDUARD ZAVALUNOV, a manager of two health care clinics in Queens, New York, pled guilty today before U.S. District Judge Ronnie Abrams to conspiracy to commit wire fraud, mail fraud, and health care fraud, for his role in a massive health care fraud scheme through which three medical clinics in Brooklyn and Queens submitted over $70 million in fraudulent claims to Medicaid and Medicare.
Manhattan U.S. Attorney Preet Bharara said: “Eduard Zavalunov has admitted to his role in this $70 million health care fraud conspiracy. Zavalunov and his conspirators recruited people from soup kitchens and welfare offices and arranged for them to get medically unnecessary procedures, all so that they could falsely bill Medicaid, Medicare and private insurers.”
According to the Superseding Indictment to which ZAVALUNOV pled guilty, and other publicly filed information in this case:
The Heath Care Fraud Scheme
From 2005 to November 2014, ZAVALUNOV, Victor Lipkin, Vadim Zubkov, Nokoloz Chochiev, Anatoliy Fatkhov, Mariana Swaffar, Jacqueline Pinez, Jonathan Oliver, Jason Brissett, Gilbert Trotman, and Giorgi Buleishvili engaged in a scheme to operate three medical clinics in Brooklyn and Queens, through which they recruited financially disadvantaged and homeless people insured by Medicare and/or Medicaid (the “Phony Patients”) to undergo unnecessary medical tests, typically performed by unlicensed personnel, at the clinics in exchange for cash, and then billed the insurers for administering those unnecessary tests. Beginning in or about 2005, Lipkin and Zubkov recruited and paid a particular licensed physician (the “Doctor”) to act as the nominal owner and/or physician under whose name three purported medical clinics would bill Medicare, Medicaid, and private insurance providers (the “Insurance Providers”) for unnecessary services and tests – including sleep tests and stress tests – performed at the clinics. The clinics were located on Avenue V in Brooklyn, New York, and on Hillside Avenue and Elmhurst Avenue, respectively, in Queens, New York. Lipkin and Zubkov were, in fact, the beneficial owners of the clinics, but they concealed their ownership through the Doctor’s nominal affiliation with the clinics, and by laundering the proceeds of the clinics’ operation through shell companies that they owned and controlled. ZAVALUNOV, Lipkin, Zubkov, and Buleishvili operated and controlled the clinics, and ran the clinics’ day-to-day operations, despite the fact that they were not licensed physicians, as required by New York law.
At the direction of ZAVALUNOV, Lipkin, Zubkov, Buleishvili, and other members of the scheme, including Oliver, Brissett, and Trotman (the “Runners”), as well as Chochiev, recruited financially disadvantaged individuals with Medicaid and/or Medicare insurance to act as Phony Patients and undergo unnecessary medical tests at the clinics in exchange for cash payments. The Runners often recruited such individuals from soup kitchens and local welfare offices, and coached them on what to say on various medical forms in order to make it falsely appear that the medical tests to which the defendants intended to subject them were medically necessary. In furtherance of the scheme, Chochiev also made threats of physical violence to individuals who Chochiev believed owed money to the scheme members.
Also in furtherance of the scheme, before the medically unnecessary tests were performed on the Phony Patients, Swaffar and Pinez obtained the Phony Patients’ Medicaid and/or Medicare insurance information, and then contacted the Insurance Providers to confirm that the Insurance Providers would reimburse for the tests. Swaffar and Pinez engaged in such conduct knowing that the Phony Patients were being recruited and paid by the Runners to undergo the tests. Once they determined that a particular Phony Patient’s insurance would pay out claims made by the clinic for the planned medical tests, Swaffar and Pinez notified the Runners that the individuals were eligible and could be brought to the clinic to undergo such tests.
After the Phony Patients had been recruited, confirmed to be Medicare and/or Medicaid eligible, and transported to one of the clinics by the Runners or Chochiev, in many instances certain individuals who were not physicians administered a host of unnecessary medical tests to them. In particular, for example, Fatakhov administered unnecessary medical tests, including stress tests, to the Phony Patients of the Elmhurst Avenue Clinic. Fatakhov administered these tests outside the presence and supervision of the Doctor or other licensed physician, despite knowing that the presence or supervision of a licensed physician was required. After the unnecessary medical tests were administered, the Phony Patients were paid cash kickbacks. The defendants, through the clinics, then submitted fraudulent claims to Medicaid and Medicare seeking reimbursement for the unnecessary medical tests. In total, in the course of the scheme, the defendants fraudulently billed over $70 million to Medicaid and Medicare, for which they received over $25 million in reimbursements.
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ZAVALUNOV, 36, pled guilty to one count of conspiracy to commit wire fraud, mail fraud, and health care fraud.
Victor Lipkin, 52, pled guilty on August 3, 2016, to one count of conspiracy to commit wire fraud, mail fraud, and health care fraud.
Vadim Zubkov, 49, pled guilty on January 13, 2017, to one count of conspiracy to commit wire fraud, mail fraud, and health care fraud.
Nikoloz Chochiev, 42, pled guilty on August 11, 2016, to one count of conspiracy to commit wire fraud, mail fraud, and health care fraud.
Anatoliy Fatakhov, 60, pled guilty on July 28, 2016, to one count of conspiracy to commit wire fraud, mail fraud, and health care fraud.
Mariana Swaffar, 52, pled guilty on August 15, 2016, to one count of conspiracy to commit wire fraud, mail fraud, and health care fraud.
Jacqueline Pinez, 33, pled guilty on July 11, 2016, to one count of conspiracy to commit wire fraud, mail fraud, and health care fraud.
Jonathan Oliver, 54, pled guilty on September 6, 2016, to one count of conspiracy to commit wire fraud, mail fraud, and health care fraud.
Giorgi Buleishvili, 42, pled guilty on January 31, 2017, to one count of conspiracy to commit wire fraud, mail fraud, and health care fraud.
Conspiracy to commit wire fraud, mail fraud, and health care fraud carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences for the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and the Department of Health and Human Services.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Daniel Tehrani, Patrick Egan, and Timothy T. Howard are in charge of the prosecution.
Chicago Man Pleads Guilty to Fraud Conspiracy; False Tax Returns Filed for RefundsRead the Press Release
PEORIA, Ill., -- A Chicago man, Gbadebo Adebiyi, 41, of Chicago, pled guilty today to his role in a fraud scheme that used others’ personal information to file false tax returns for refunds. Adebiyi appeared this morning before U.S. District Judge Joe Billy McDade. A co-defendant, Idris Akande, 35, also of Chicago, remains a fugitive. Sentencing for Adebiyi is scheduled on May 3, 2017.
According to court documents, in March 2015, Bradley University reported a data breach that resulted in employees having their personal identifying information used to file false 2014 federal income tax returns. Adebiyi admitted to conspiring with others to obtain refunds obtained from the false income tax returns.
The false tax returns typically directed that refunds be routed to third-party prepaid debit cards, Green Dot cards, which were purchased at various retail locations. The personal information of Bradley employees was used to create permanent Green Card accounts. Conspirators used the Green Dot cards, loaded with the fraudulent tax refunds, to purchase money orders. The money orders were then cashed at currency exchange businesses in the Chicago area. As a result of the fraud, the government estimates that the conspiracy’s intended loss is approximately $770,000.
Adebiyi pled guilty to one count of conspiracy to commit mail fraud, an offense that carries a maximum statutory penalty of five years in prison. The defendant may also be ordered to pay restitution. The maximum statutory penalty is prescribed by Congress and is provided for informational purposes as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation conducted the investigation. Supervisory Assistant U.S. Attorney Darilynn J. Knauss is prosecuting the case.
Chicago Man Charged with Possessing Child PornographyRead the Press Release
CHICAGO — A Chicago man was ordered detained in federal custody today for allegedly possessing thousands of photographs and videos of child pornography.
SCOTT RESKEY, 61, is charged with one count of possessing an image of child pornography involving a minor under the age of 12. A search of Reskey’s laptop computer revealed more than 45,000 images and more than 200 videos of apparent child pornography, according to a criminal complaint filed in U.S. District Court in Chicago.
Reskey was arrested last week at his home on the Northwest Side of Chicago. He appeared in federal court this morning before U.S. Magistrate Judge Young B. Kim and was ordered detained in federal custody.
The charge against Reskey arose from a federal investigation of an online community that sent and received child pornography via an anonymous website, according to the complaint. The investigation remains ongoing.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge in the complaint is punishable by a maximum sentence of 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Grayson Walker.
Charlotte Man Enters Guilty Plea in Federal Court to Simpsonville Gun Shop RobberyRead the Press Release
Contact Person: Lance Crick, (864) 282-2105
Columbia, South Carolina –------- United States Attorney Beth Drake, announced today that Juran Maghi Witherspoon, age 18, of Charlotte, North Carolina, entered a guilty on a charge stemming from his involvement in the pre-dawn break-in and theft of firearms from The Gun Shop in Simpsonville in October of 2016.
Witherspoon was previously indicted on December 13, 2016, by a federal grand jury. Prior to his indictment, Witherspoon was arrested on federal arrest warrants in early November for the offense and has remained in custody, detained without bond, since that date.
The facts presented by AUSA Bill Watkins at the guilty plea hearing this morning established that on October 13, 2016, at approximately 2:52 a.m., a burglary occurred at The Gun Shop and Indoor Range, a federal firearms licensee, located at 622 NE Main Street, Simpsonville, South Carolina 29681. Surveillance camera footage from the store depicted a minivan driving though the front of the store and then three subjects (one of which was Witherspoon), wearing hooded sweatshirts, gloves and carrying bags, entering the store. Witherspoon and his associates used a sledge hammer and a baseball bat to break the glass from display cases containing firearms before loading handguns into the bags. The three men were in the store for just under one minute before they fled in a getaway car and abandoned the van at the scene. A subsequent inventory of the missing guns revealed that a total of forty-three (43) handguns had been stolen to include various models of Auto Ordnance, Bersa, Glock, Ruger, Sig Sauer, Smith & Wesson, Springfield Armory and Taurus firearms. The van was identified as a white Chrysler Town & Country which had been reported stolen from Denver, North Carolina.
Ms. Drake said that the maximum penalty Witherspoon faces is 10 years’ imprisonment, a fine of $250,000, supervised release of 3 years, and a special assessment fee of $100.
Ms. Drake also thanked law enforcement for the excellent police work: “The Simpsonville and Charlotte police, ATF and the Lincoln County Sheriff, they pulled together to solve this one. Working together for safer communities is what it’s about.”
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance and cooperation of the Simpsonville Police Department, Charlotte Mecklenburg Police Department and the Lincoln County (North Carolina) Sheriff’s Department. The case has been assigned to Assistant United States Attorney Bill Watkins and First Assistant United States Attorney Lance Crick, both of the Greenville office, for prosecution.
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Canton Woman Charged with Misappropriation of Postal FundsRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lisa Belawske, age 53, of Canton, Pennsylvania, was charged today in a criminal information with misappropriation of postal funds by a postal employee.
According to United States Attorney Bruce D. Brandler, the information alleges that Belawske misappropriated over $12,000 between October 2015 and June 2016.
The case was investigated by the U.S. Postal Service, Office of the Inspector General. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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CMU Student Sentenced to Probation for Causing Damage to Others’ ComputersRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to three years’ probation, with 300 hours of community service and computer monitoring, on his conviction of attempting and conspiring to cause damage to others’ computers, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Morgan Culbertson, 22, of Pittsburgh, Pa.
According to information presented to the court, Culbertson, known as “Android” on the online computer hacking forum known as Darkode, developed and sold malware known as Dendroid, which was used to infect victims’ Google Android phones. Once infected, Dendroid would allow Culbertson and his conspirators to steal information stored on the cell phones and to remotely use features on the phones.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Culbertson.
Buffalo Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Pritchett, 21, of Buffalo, NY, pleaded guilty to production of child pornography, before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of 15 years in prison and a maximum of 30 years.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in October of 2015, Robert Pritchett, utilizing the name “Jess Allen,” began communicating with Victim 1, a 17-year-old female from New Jersey, via text messages and chat messages over the internet. The defendant convinced her to travel to New York to live with him. Pritchett misrepresented his identity and made fraudulent promises regarding where she would live upon her arrival. On November 6, 2015, after picking up Victim 1 at the bus station, the two engaged in sexual activities, and then traveled to a motel in Tonawanda, NY. While at the motel, Pritchett had Victim 1 engage in prostitution services and engaged in additional sexual activities with Victim 1. During the sexual activity, the defendant used Victim 1’s Apple iPhone to record some of the activity.Pritchett also engaged in online sexual communications and/or sexual contact with three other minor females. In June of 2014, using Kik, the defendant sent sexually explicit photographs by a 14-year-old female (Victim 2) from Buffalo. This then lead to communications with a 15-year-old female friend of Victim 2, also from Buffalo (Victim 3). Victim 3 went with the defendant to the Galleria Mall on July 3, 2014, in an effort to get the defendant to delete the pictures he had of Victim 2. While at the mall, Pritchett engaged in repeated sexual acts with Victim 3 inside a movie theater and near a loading dock of a department store.
Between November, 2013 and March, 2014, the defendant communicated with a 15-year-old female from East Aurora (Victim 4), using ooVoo, a video and instant messaging chat application. During those communications, Victim 4 engaged in sexually explicit conduct while video chatting with the defendant. During the video chat, Pritchett created two screen shots that depicted Victim 4 engaged in sexually explicit conduct, and saved those screen shots to his cellular telephone.
The plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Adam s. Cohen, Special Agent-in-Charge, along with Detectives from the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for May 17, 2017 at 1:00 p.m. before Judge Vilardo.
Avon Man Pleads Guilty to Federal Charges Stemming from Hartford Soccer Stadium ProjectRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MITCHELL ANDERSON, 52, of Avon, pleaded guilty today before U.S. District Court Judge Stefan R. Underhill in Bridgeport to fraud and money laundering charges stemming from a scheme involving the redevelopment of Dillon Stadium in Hartford and a plan to bring a professional soccer team to the city.
According to court documents and statements made in court, in September 2014, the City of Hartford entered into a professional services agreement with ANDERSON’s company, Premier Sports Management Group (“PSMG”), to secure a professional soccer team and to develop a new, 9,000 seat facility at the Dillon Stadium location. Under the terms of the agreement, PSMG was entitled to receive $775,000 for serving as the project manager for the $12 million plan. In February 2015, ANDERSON joined with a business partner who agreed to be the majority owner of the professional soccer team. ANDERSON and his business partner represented to various city officials that PSMG and the partner’s consulting company had merged for purposes of completing the Dillon Stadium project and securing the professional soccer team.
Beginning in approximately March 2015, ANDERSON submitted invoices to the city for reimbursement to PSMG sub-contractors working on the project. However, rather than pay the total amounts owed to PSMG’s subcontractors, ANDERSON and his business partner directed more than $1 million that PSMG received from the city to themselves, their businesses and other entities not related to the Dillon Stadium project. ANDERSON and his business partner also secured invoices from subcontractors who had not performed work for the project, which ANDERSON caused to be submitted to the city as if the work had been performed. ANDERSON then illegally used the proceeds of the fraud in a series of bank transactions to pay individuals and companies for expenses unrelated to the Dillon Stadium project.
ANDERSON pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, an offense that carries a maximum term of imprisonment of 20 years, and one count of conducting illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years. Judge Underhill scheduled sentencing for May 1, 2017.
ANDERSON has agreed to make restitution in the total amount of $1,134,595.37 to the City of Hartford and two subcontractors of the Dillon Stadium project.
ANDERSON was arrested on June 23, 2016, as is released on a $100,000 bond.
This matter is being investigated by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The Task Force also includes members from the U.S. Department of Housing and Urban Development- Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service. The Hartford Police Department is also assisting the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Douglas Morabito.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Arizona Man Sentenced to Prison for Trafficking in Pet Products with Counterfeit LabelsRead the Press Release
An Arizona man was sentenced today to serve 37 months in prison for trafficking in pet products with counterfeit labels into the United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; Special Agent in Charge E. Spencer Morrison of the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI) Kansas City, Kansas, Field Office and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Office made the announcement.
Allen Smith, 50, of Phoenix, Arizona, was sentenced today by U.S. District Judge David Hittner of the Southern District of Texas. In addition to his prison term, Smith was ordered to pay $867,150 in restitution and to forfeit $42,269 worth of illicit proceeds.
According to admissions made in connection with his plea, Smith was responsible for aiding and abetting the trafficking of over $1 million worth of veterinary products that were not manufactured for the U.S. market into the United States for distribution under false labels, including Frontline and Frontline Plus products manufactured by Merial Pharmaceutical Company (Merial) and Advantage and K9 Advatix products manufactured by Bayer. Smith intentionally trafficked in the products to deceive retail stores and consumers into believing that the products had received necessary Environmental Protection Agency (EPA) authorization to be manufactured for and approved for sale in the United States.
The FDA-OCI, HSI and the EPA investigated the case. Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Jennifer Lowery of the Southern District of Texas are prosecuting the case. The U.S. Attorney’s Office of the Central District of California and the CCIPS Cybercrime Lab provided significant assistance.
Arizona Man Sentenced for Trafficking in Pet Products with Counterfeit LabelsRead the Press Release
HOUSTON - An Arizona man was sentenced today to serve 37 months in prison for trafficking in pet products with counterfeit labels into the United States.
U.S. Attorney Kenneth Magidson, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge E. Spencer Morrison of the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI) Kansas City, Kansas, Field Office and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
U.S. District Judge David Hittner of the Southern District of Texas sentenced Allen Smith, 50, of Phoenix, Arizona, today. Smith was also ordered to pay $867,150 in restitution and to forfeit $42,269 worth of illicit proceeds.
According to admissions made in connection with his plea, Smith was responsible for aiding and abetting the trafficking of more than $1 million worth of veterinary products that were not manufactured for the U.S. market into the United States for distribution under false labels. These included Merial Pharmaceutical Company (Merial) manufactured-products Frontline and Frontline Plus and others Bayer manufactured, such as Advantage and K9 Advantix. Smith intentionally trafficked in the products to deceive retail stores and consumers into believing that the products had received necessary Environmental Protection Agency (EPA) authorization to be manufactured and approved for sale in the United States.
The FDA-OCI, HSI and the EPA investigated the case. Assistant U.S. Attorney Jennifer Lowery of the Southern District of Texas and Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. The U.S. Attorney’s Office of the Central District of California and the CCIPS Cybercrime Lab provided significant assistance.
Architect of Offshore Fraud Haven and Orchestrator of More Than 40 Pump and Dump Schemes Sentenced to 6 and 12 Years in Prison, Respectively, for Executing A $250 Million Money Laundering SchemeRead the Press Release
BROOKLYN, N.Y. – Earlier today, Robert Bandfield, a U.S. citizen and resident of Belize, and Gregg R. Mulholland, a dual U.S. and Canadian citizen, were sentenced to 6 and 12 years in prison, respectively. In May 2016, Bandfield pleaded guilty to money laundering conspiracy for setting up an elaborate and fraudulent structure of shell companies and brokerage firms in Belize and the West Indies that enabled his clients to fraudulently manipulate the stocks of dozens of U.S. publicly-traded companies. That same month, Mulholland, the secret owner of Legacy Global Markets S.A. (Legacy), an offshore broker-dealer and investment management company based in Panama City, Panama and Belize City, Belize, pleaded guilty to money laundering conspiracy for fraudulently manipulating the stocks of more than 40 U.S. publicly-traded companies and then laundering more than $250 million in fraudulent proceeds through at least five offshore law firms. As part of the sentences, Bandfield was ordered to forfeit, among other things, $1 million and all his rights and interests in three corporate entities -- IPC Management Services LLC, IPC Corporate Services Inc. and IPC Corporate Services LLC (collectively, “IPC Corp”) -- that he founded and controlled in Belize, whereas Mulholland was ordered to forfeit, among other things, a Dassault-Breguet Falcon 50 aircraft, a Range Rover Defender vehicle, two real estate properties in British Columbia, and funds and securities on deposit at more than 25 bank and brokerage accounts.
The sentences were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Kathy A. Enstrom, Acting Special Agent-in-Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS-CI); and Angel M. Melendez, Special Agent-in-Charge, New York, Homeland Security Investigations (HSI).
In addition to the agencies that led the investigation, Mr. Capers thanked the Securities and Exchange Commission (SEC), the Department of Justice’s Office of International Affairs (OIA), the Department of State’s Diplomatic Security Service (DSS) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance in the investigation.
According to the court filings and facts presented at the plea and sentencing hearings, between January 2009 and September 2014, Bandfield, Mulholland and their co-conspirators engaged in three interrelated schemes: (1) to induce U.S. investors to purchase stock in various thinly-traded U.S. public companies through fraudulent promotion of the stock, concealment of their ownership interests in the companies, and fraudulent manipulation of artificial price movements and trading volume in the stocks of those companies; (2) to circumvent the payment of capital gains taxes and the IRS’s reporting requirements under the Foreign Account Tax Compliance Act (FATCA); and (3) to launder the fraudulent proceeds from the stock manipulation schemes to and from the United States through debit cards and attorney escrow accounts. Between 2010 and 2014, Mulholland controlled a group of individuals (the Mulholland Group). Through these schemes, Bandfield helped his corrupt clients -- who included Mulholland and more than 100 others -- launder more than $250 million in fraudulent proceeds.
To facilitate these interrelated schemes, Bandfield and his co-conspirators created shell companies in Belize and the West Indies for the corrupt clients and placed nominees at the helm of these companies. This structure was designed to conceal the clients’ ownership interest in the stock of U.S. public companies, in violation of U.S. securities laws, and enable the corrupt investors to engage in trading under the nominee’s names through brokerage firms also set up in Belize. For example, this structure enabled the Mulholland Group to manipulate the stock of Cynk Technology Corp, which traded on the U.S. OTC markets under the ticker symbol CYNK. Using aliases such as “Stamps” and “Charlie Wolf,” Mulholland was intercepted on a court-authorized wiretap on May 15, 2014, admitting to his ownership of “all the free trading” or unrestricted shares of CYNK. Prior to this conversation between Mulholland and his trader at Legacy, there had been no trading in CYNK stock for 24 trading days. Over the next two months, the stock of CYNK rose from $0.06 per share to $13.90 per share, a more than $4 billion stock market valuation for a company that had no revenue and no assets.
Mulholland used the services of a U.S.-based lawyer to launder the more than $250 million generated through his stock manipulation of CYNK and other U.S. companies – directing the fraud proceeds to five law firm accounts and transmitting them back to members of the Mulholland Group and its co-conspirators. Other clients used unidentifiable debit cards to freely transfer their fraudulent proceeds back into the United States.
Bandfield’s scheme also enabled the U.S. corrupt clients evade reporting requirements to the IRS by concealing the proceeds generated by the manipulated stock transactions through the shell companies and their nominees. For example, in response to a request received by a U.S. corrupt client from a U.S. transfer agent who had to determine whether the proceeds from manipulative stock trading transaction were taxable under U.S. law, Bandfield forwarded an IRS Form signed by co-defendant Andrew Godfrey as the nominee for the shell company which had been set up at the request of the client. At one point during the government’s investigation, Bandfield boasted to an undercover law enforcement agent that he had specifically designed this “slick” corporate structure to counter then-President Barack Obama’s new laws, a reference to FATCA.
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Today’s proceeding took place before United States District Judge I. Leo Glasser.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn Kasulis, Winston Paes and Michael Keilty are in charge of the prosecution, with assistance from Assistant United States Attorney Brian Morris of the Office’s Civil Division, who is responsible for the forfeiture of assets.
The Defendants:
ROBERT BANDFIELD
Age: 72
Belize City, Belize
GREGG R. MULHOLLAND
Age: 47
San Juan Capistrano, California
Vancouver, Canada
EDNY Docket No. 14-CR-476 (S-2) (ILG)
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Manuel Boydston, 36, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Boydston and his co-defendant Thomas Montoya, 40, also of Albuquerque, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Boydston and Montoya were charged in a three-count indictment filed on June 30, 2016. The indictment charged Montoya with distribution of methamphetamine on June 6, 2016, and Montoya and Boydston with conspiracy and distribution of methamphetamine on June 14, 2016. According to the indictment, the offenses took place in Bernalillo County.
During today’s proceedings, Boydston pled guilty to Count 3 of the indictment charging him with distributing methamphetamine. In entering the guilty plea, Boydston admitted that on June 14, 2016, he sold approximately 118 grams of methamphetamine to an undercover law enforcement agent.
At sentencing, Boydston faces a statutory minimum penalty of five years and a maximum of 40 years in federal prison. A sentencing hearing has yet to be scheduled.
To date, 26 of the 104 defendants have entered guilty pleas and two have been sentenced. The remaining defendants, including Montoya, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Jacob Wishard is prosecuting the case.
Acting U.S. Attorney Weinreb Highlights Obligations of Cities and Towns Under Religious Anti-Discrimination LawRead the Press Release
BOSTON – Acting U.S. Attorney William D. Weinreb sent a letter to cities and towns across Massachusetts highlighting the obligations of cities and towns under a federal law that prohibits religious discrimination. The Religious Land Use and Institutionalized Persons Act (RLUIPA) protects against substantial burdens on religious exercise, unequal treatment, and unreasonable limitation for religious assemblies and institutions such as churches, mosques, and synagogues.
The U.S. Attorney’s Office is charged with ensuring that religious institutions and organizations have an equal opportunity to buy and develop land free from unreasonable and burdensome restrictions. To aid in this effort, the U.S. Attorney’s Office recently sent the attached letter to cities and towns highlighting their obligation to comply with RLUIPA.
RLUIPA, which was enacted in 2000, ensures that religious institutions are protected from unduly burdensome, unreasonable, and discriminatory zoning and landmarking. The protections apply widely to religious schools, religious camps, religious retreat centers, and religious social service facilities such as group homes, homeless shelters, and soup kitchens. Among other things, RLUIPA prevents municipalities from placing restrictions or burdens on land use by religious organizations that are not applied to comparable secular institutions.
“All Americans have the right to come together and worship in accordance with their religious beliefs, free from unreasonable burdens,” said Acting U.S. Attorney William D. Weinreb. “This letter will help cities and towns throughout Massachusetts understand the requirements of the law and ensure that they do not unintentionally discriminate against religious individuals and institutions.”
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
4 February 2017
Two California Men Sentenced for CounterfeitingRead the Press Release
United States Attorney Randolph J. Seiler announced that two California men convicted of Trafficking in Counterfeit Goods or Services were sentenced on January 30, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Mohamed Elkady, age 30, and Fady Youssef Abdelmalek, age 34, were each sentenced to time served, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. They were also ordered to pay $50,000 in restitution jointly, which they paid in full, prior to sentencing.
Elkady and Abdelmalek were charged on June 6, 2015. The conviction stems from them manufacturing and selling counterfeit goods at kiosks in the Rushmore Mall in Rapid City, South Dakota, and the Empire Mall in Sioux Falls, South Dakota, between November 2014 and June 2015. The victims included the National Football League, various motor vehicle manufacturers, and television show producers.
This case was investigated by the Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on January 30, 2017, by U.S. District Judge Roberto A. Lange.
Allen Good Shield, age 27, was sentenced to 20 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Good Shield was indicted by a federal grand jury on August 23, 2016. He pled guilty on November 8, 2016.
Good Shield was convicted of Sexual Abuse of a Minor in federal court in November 2010, and sentenced to 27 months in prison, followed by 5 years supervised release. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocating or changing employment. In July 2016, Good Shield registered with an address in Rapid City. Good Shield subsequently absconded from supervised release and an arrest warrant was issued. He was arrested in Rapid City on August 11, 2016. Good Shield did not update his sex offender registration between August 2, 2016, and August 11, 2016, as required by law.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Good Shield was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on January 31, 2017, by U.S. District Judge Roberto A. Lange.
Patrick Black Spotted Horse, age 27, was sentenced to 18 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Black Spotted Horse was indicted by a federal grand jury on January 21, 2016. He pled guilty on November 8, 2016.
Black Spotted Horse was convicted of Sexual Abuse of a Minor in federal court in March 2010, and sentenced to 40 months in prison followed by 5 years of supervised release. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocating or changing employment. In October 2015, Black Spotted Horse updated his registration using an address in Rapid City. In December 2015, Black Spotted Horse absconded from supervised release, and a warrant was issued for his arrest. Black Spotted horse did not update his sex offender registration between December 3, 2015, and January 20, 2016, as required by law.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Black Spotted Horse was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on January 30, 2017, by U.S. District Judge Roberto A. Lange.
Lonnie Ray Erickson, age 51, was sentenced to 132 months in custody, 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Erickson was also ordered to forfeit U.S. currency, firearms, and ammunition seized by law enforcement.
Erickson was initially indicted by a federal grand jury on August 11, 2015. A Superseding Indictment was filed on December 8, 2015, and a second Superseding Indictment was filed on May 7, 2016. Erickson pled guilty on November 8, 2016.
Between March of 2015 and May of 2016, Erickson knowingly and intentionally conspired with others to distribute more than 500 grams of methamphetamine, a Schedule II Controlled Substance, in South Dakota. Erickson received distributable quantities of methamphetamine and distributed it to others within South Dakota. The individuals who provided Erickson with methamphetamine knew that he intended to engage in further distribution. It was reasonably foreseeable to Erickson that more than 500 grams of methamphetamine would be distributed during the course of the conspiracy.
On July 26, 2015, and October 15, 2015, cash, firearms, and ammunition were seized by law enforcement from Erickson. Methamphetamine, marijuana, and drug paraphernalia were also seized from Erickson on October 15, 2015.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Erickson was immediately turned over to the custody of the U.S. Marshals Service.
Manderson Man Indicted for Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Manderson, South Dakota, man has been indicted by a federal grand jury for Abusive Sexual Contact.
Lorne Michael Thunder Horse, age 34, was indicted on January 24, 2017, and appeared before U.S. Magistrate Judge Daneta Wollmann on January 31, 2017. He pleaded not guilty to the charge.
The penalty upon conviction is any term of years up to life imprisonment, and/or a $250,000 fine, any term of years or lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Thunder Horse engaging in sexual contact with a young child. The charge is merely an accusation and Thunder Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Thunder Horse was detained pending trial. A trial date has not been set.
Ellsworth Air Force Base Man Indicted for Illegal Use of InternetRead the Press Release
United States Attorney Randolph J. Seiler announced that an Ellsworth AFB, South Dakota, man has been indicted by a federal grand jury for Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, and Transfer of Obscene Material to a Minor.
Rickey Lee Crain, age 27, was indicted on January 24, 2017, and appeared before U.S. Magistrate Judge Daneta Wollmann on January 27, 2017. He pleaded not guilty to the Indictment.
The penalty upon conviction is a minimum of 5 years up to life imprisonment, a $250,000 fine, a minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Crain using a cell phone and a computer to send obscene material to a minor, and to engage in sexually explicit conduct with a female he believed to be 13-years old.
The charges are merely an accusation and Crain is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Crain was released pending trial.
Eagle Butte Woman Charged with Conspiracy and Distribution of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Distribution of a Controlled Substance.
Donni DaRae Traversie, a/k/a Donna Dupris, age 26, was indicted on January 19, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 24, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction, on each count, is up to 20 years in custody and/or a $1,000,000 fine, up to life on supervised release, and $500 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that between April 1, 2012, and January 19, 2017, Traversie conspired to manufacture and distribute methamphetamine in the District of South Dakota. It is further alleged that on four occasions between June 14 and July 1, 2016, Traversie distributed methamphetamine.
The charges are merely accusations and Traversie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Traversie was released on bond to a third party custodian pending trial. Trial is set for April 4, 2017.
Eagle Butte Man and Utah Man Sentenced for RobberyRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man and an Ogden, Utah, man convicted of Robbery were sentenced by U.S. District Judge Roberto A. Lange.
Ryker Talbot, age 20, from Ogden, Utah, was sentenced on January 30, 2017, to 84 months in custody, to be followed by 3 years of supervised release. Dominic Houston, age 18, from Eagle Butte, South Dakota, was sentenced on December 19, 2016, to 46 months in custody, followed by 2 years of supervised release. Both were ordered to pay $1,743.20 in restitution to the Eagle Stop Convenience Store and Gas Station in Eagle Butte, on a joint and several basis, and a special assessment to the Federal Crime Victims Fund in the amount of $100.00 each.
Talbot and Houston were indicted by a federal grand jury on July 26, 2016. Talbot pled guilty on November 8, 2016, and Houston pled guilty on September 27, 2016.
The conviction stems from an incident on July 2, 2016, when Talbot and Houston discussed committing a robbery. Ultimately, the decision was made to rob the Eagle Stop. Shortly before 1:00 a.m. on Saturday, July 2, 2016, Talbot and Houston traveled to the vicinity of the Eagle Stop. Houston remained outside of the store and served as a lookout. Talbot entered the Eagle Stop, carrying a Maverick 12-gauge shotgun. Talbot pointed the shotgun at the clerk and demanded money. Talbot then racked the shotgun and repeated his demand to be given money. The clerk gave Talbot money from the cash registers in the store. Talbot then demanded the clerk to give him two cartons of cigarettes, and the clerk complied. Talbot exited the store with the cash and cartons of cigarettes, and Talbot and Houston then left the scene. They later split up the proceeds acquired in the robbery.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services, and the Division of Criminal Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Talbot and Houston were immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with Assault of a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Thomas James Shan Looking Horse, a/k/a TJ. Shan Looking Horse, age 31, was indicted on January 19, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 31, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 19, 2016, Looking Horse forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a Police Sergeant and a Correctional Officer from the Cheyenne River Sioux Tribe, while they were performing their official duties.
The charges are merely accusations and Looking Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Looking Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
3 February 2017
“Pimp” Sentenced to 216 Months in Federal Prison in Child Sex Trafficking CaseRead the Press Release
DALLAS — Edric Norvell Robinson, Sr., 46, of Dallas, was sentenced by U.S. District Judge Ed Kinkeade to 216 months in federal prison, following his guilty plea in April 2016 to one count of sex trafficking of children related to his pimping a 16-year-old girl in Dallas and Wichita Falls, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
In addition, at Wednesday’s sentencing hearing, Judge Kinkeade ordered that Robinson must serve a 15-year term of supervised release after serving his custody sentence. He must also register as a lifetime sex offender.
According to documents filed in his case, from approximately April 7, 2014, through August 19, 2014, Robinson knowingly recruited, enticed, harbored and transported a 16-year-old minor female, whom he caused to engage in a commercial sex act.
Project Safe Childhood (PSC) is a Department of Justice initiative that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The Texas Department of Public Safety and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Anti-Trafficking Taskforce (NTATT), investigated the case.
Assistant U.S. Attorneys Cara Foos Pierce was in charge of the prosecution.
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United States Postal Employees Prosecuted for Conspiracy to Defraud the United States and TheftRead the Press Release
Jacksonville, Florida – U.S. Attorney A. Lee Bentley, III announces the arrest of U.S. Postal employee Badi Mohamed (30, Jacksonville) on January 31, 2017, for conspiracy to defraud the United States, theft of government money, and theft of mail. If convicted, he faces up to 10 years’ imprisonment, and he could be ordered to pay at least $20,741 in restitution to the Internal Revenue Service.
In addition, U.S. District Judge Brian J. Davis yesterday sentenced U.S. Postal employee Veronica Skrine (54, Jacksonville) to two years’ probation in a related case, which includes a one-month term of home confinement, for conspiracy to defraud the United States and theft of government property. She also was ordered to pay $44,334.23 in restitution to the Internal Revenue Service. Skrine pleaded guilty on November 18, 2016.
According to court documents, Skrine conspired with another individual, Lorne Jordan, to cash stolen United States Treasury checks in the names of others. She and Jordan entered into an arrangement in 2013, and again in 2015, to use her employment at a U.S. Post Office to accept Treasury checks in other persons’ names and to cash them using funds held by the U.S. Postal Service. Skrine was paid $100 per $1,000 of the face value of each check.
On August 23, 2016, Jordan was sentenced to four years and three months in federal prison for conspiracy to defraud the United States, theft of government funds, and aggravated identity theft. She also was ordered to pay restitution to the Internal Revenue Service in the amount of $120,713.09.
These cases were investigated by the Internal Revenue Service - Criminal Investigation, the U.S. Postal Inspection Service - Office of Inspector General, the Florida Department of Law Enforcement, and the North Florida Financial Crimes Task Force. The cases are being prosecuted by Assistant United States Attorney Kelly S. Karase.
United States Attorney Eric Miller Submits His ResignationRead the Press Release
United States Attorney Eric Miller has announced his resignation, effective February 10, 2017. In 2015, Miller was appointed to his position by President Barack Obama on the recommendation of Senator Patrick Leahy and was confirmed unanimously by the United States Senate. Since then, he has led the United States Attorney’s Office for the District of Vermont, which has 45 employees, including 20 attorneys, who enforce all federal criminal and civil laws in the state.
In announcing his departure, Mr. Miller said, “Serving as Vermont’s United States Attorney has been the highest honor of my career, and I am grateful for the trust placed in me by President Obama, Senator Leahy, and the people of Vermont.” Miller praised his colleagues at the United States Attorney’s Office and commended the work they do on behalf of the people of Vermont. “This is an amazing group of lawyers and staff. The single greatest joy of this job has been supporting their skilled advocacy on positions I am passionate about and which also make life better for Vermonters.”
During Miller’s tenure, the United States Attorney’s Office increased its focus on a statewide, collaborative approach to confronting Vermont’s heroin crisis. Through its Vermont Heroin Initiative, the office partnered with federal, state, and local law enforcement agencies, healthcare providers, and non-profits to encourage the most effective mix of prosecution, treatment, and education to stem the flow of opiates into the state. Over the past two years, the United States Attorney’s Office has successfully prosecuted scores of significant heroin trafficking conspiracies. The office prioritized the pursuit of human trafficking charges in association with its drug prosecutions. It also produced an award-winning public service announcement and informational campaign designed to increase public awareness of the danger of human trafficking and to provide trafficking victims and survivors with appropriate services. Miller expressed special thanks to the FBI, DEA, ATF, Vermont State Police, HSI, Border Patrol, Secret Service, USMS, CBP, and all of the other federal, state, local law enforcement agencies working closely with his office and with one another to accomplish their joint mission.
Under Miller’s leadership, the United States Attorney’s Office also expanded its civil rights enforcement program, adding a Civil Rights Outreach Specialist and an Assistant United States Attorney dedicated to identifying, investigating, and remedying federal civil rights violations in Vermont. Together with the office’s Civil Rights Coordinator, they engage in outreach designed to build trust and relationships between the United States Attorney’s Office and the communities it serves.
Islam Hassan, the Imam of the Islamic Society of Vermont, said, “Eric and his colleagues have worked to build bridges between their office and the Islamic Society of Vermont. They have become familiar faces at our mosque, and we deeply appreciate their commitment to building relationships with our community.” Through these efforts and others, the office has established itself as a statewide leader in protecting Vermonters’ civil rights.
Throughout his time in office, Mr. Miller has been a visible presence in Vermont’s communities, championing the criminal justice initiatives promoted by President Obama and Attorney General Loretta Lynch through working groups, panel discussions, speeches, and one-on-one meetings with Vermont’s elected leaders, local police departments, and residents.
Rutland’s Mayor, Christopher Louras, said, “Eric and his office have invested enormous energy in Rutland. They have worked with the City to transform former drug houses into safe, affordable, owner-occupied homes that grow our neighborhoods. And when I announced Rutland’s plans to welcome Syrian refugees to our community, Eric publicly voiced his strong support and committed the resources of his office to protecting all Rutland residents, including the newest among us.”
Summing up his thoughts on the Department he is leaving, Miller said, “Whenever I think about the core mission of this place, I always return to a formulation I first heard from Deputy Attorney General Sally Yates: Although much or our most important work involves prosecuting people who break the law, we are not just the Department of Prosecutions, or even the Department of Public Safety. We are the Department of Justice. And I know the men and women of this office will continue to work every day to deliver on the promise of justice for all Vermonters.”
Miller has not yet determined his future professional plans.
U.S. Attorney Statement on Opening of Unity Center for Behavioral Health PortlandRead the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, provided the below statement on the opening of the Unity Center for Behavioral Health in Northeast Portland.
“We are pleased to learn of the opening of the Psychiatric Emergency Service at the Unity Center on February 2, 2017 to walk-ins and transfers. This is a much needed service for people in crisis. This facility incorporates a calming environment with peer and community-based services designed to maximize favorable outcomes. The United States Department of Justice identified the need for such a facility over five years ago and we are pleased to see the culmination of efforts of private and public stakeholders, committed to making these services a reality through the Unity Center. While there is much work to be done to address the gaps in community-based mental health services throughout Oregon, we applaud the efforts made to achieve this important step towards closing that gap.”
The Unity Center for Behavioral Health is a 24-hour behavioral and mental health services center providing immediate psychiatric care for people experiencing mental health crises in the greater Portland metropolitan area. To learn more about the Unity Center, please visit www.unityhealthcenter.org.
Topeka Woman Sentenced for Sex Trafficking of 17-Year-OldRead the Press Release
TOPEKA, KAN. – A Topeka woman was sentenced Friday to 34 months in federal prison for the sex trafficking of a 17-year-old girl, U.S. Attorney Tom Beall said.
Tiara Jade Newman, 23, Topeka, pleaded guilty to one count of conspiracy to commit sex trafficking. In her plea, she admitted that on March 21, 2015, she and her husband, co-defendant Reginald Newman, 30, Topeka, Kan., took a 17-year-old girl from Topeka to Junction City, Kan., for the purpose of prostitution.
The Newmans rented two rooms at a Value Place motel in Junction City. They used one room for performing commercial sex acts and slept in the other room. Newman and the girl met a solder from Fort Riley at the Value Place motel. The soldier paid $250 to have sex with both of them.
Tiara Newman took the girl along on an “out call” to the Fairfield Inn in Manhattan, Kan. Newman told a customer there that the girl was new and she was showing her the business. The customer noticed that the girl was nervous and gave her a tip.
Reginald Newman kept all the money from the commercial sex acts. He pleaded guilty and is awaiting sentencing.
Beall thanked Assistant U.S. Attorney Christine Kenney and the following agencies for their work on the case: The Topeka Police Department, Homeland Security Investigations, the Riley County Police Department, the Junction City Police Department, the Kansas Department of Revenue, the Fort Riley Police Department, the Ottawa Police Department, the Shawnee County District Attorney’s Office, the Pottawatomie County Attorney, the Riley County Attorney and local human trafficking victim specialists.
Three Men Plead Guilty to Charges Related to Armed Robberies of West Haven Post Office and Hamden BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that three men have pleaded guilty in Hartford federal court to charges related to the armed robberies of the Allingtown Post Office in West Haven and the Wells Fargo Bank in Hamden on April 21, 2016.
On February 2, MALCOLM HAYNES, also known as “Black,” 26, of New Haven, pleaded guilty to one count of armed robbery of a postal employee and one count of armed bank robbery. On January 25, DERRICK WHITE, also known as “Fly,” 52, of Hamden, pleaded guilty to one count of armed bank robbery. On January 30, HOWARD BOOKERT, 19, of Hamden, pleaded guilty to one count of armed robbery of a postal employee.
According to court documents and statements made in court, on the morning of April 21, 2016, HAYNES, WHITE, BOOKERT and another male drove in WHITE’s vehicle to the vicinity of the Allingtown Post Office located at 75 Farwell Avenue in West Haven. HAYNES, who was armed with a .22 caliber rifle, WHITE and BOOKERT then entered the post office. HAYNES pointed the rifle at individuals who were in the lobby and the clerk behind the counter and directed them to stay away from the door. WHITE then hopped over the counter, waved the postal clerk away from her station, removed the cash drawer from the counter and handed it to BOOKERT. The robbers then fled with the drawer, which contained approximately $491.
In the afternoon of April 21, 2016, the four individuals drove to a branch of Wells Fargo Bank located at 1647 Whitney Avenue in Hamden. HAYNES, again armed with the rifle, WHITE and the other male entered the bank. HAYNES pointed the rifle in the direction of various employees as WHITE went behind the counter and removed approximately $9,287 from teller drawers. During the robbery, the other male brandished what appeared to be a small black semi-automatic pistol.
WHITE and BOOKERT were apprehended in New Haven on April 21, 2016. HAYNES was arrested on May 23, 2016.
HAYNES, WHITE and BOOKERT, who have been detained since their arrests, are scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on May 3, April 19 and May 4, respectively.
Each of the charges carries a maximum term of imprisonment of 25 years.
The fourth male was charged in state court and his case remains pending.
This matter has been investigated by the West Haven Police Department, Hamden Police Department, New Haven Police Department, Federal Bureau of Investigation, and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Tampa Bay Man Sentenced to Twenty Years for Production of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Honeywell today sentenced Paul Dale Pollitt, III (40) to 20 years in federal prison for production of child pornography. The Court also ordered him to forfeit the cellphone he had used to commit the offense. Pollitt pleaded guilty on November 15, 2016.
According to court documents, an undercover police detective working as part of a multi-jurisdictional Child Exploitation Task Force posted an online advertisement on a site frequented by individuals that have a sexual interest in children. In November 2015, Pollitt reached out to this undercover officer, believing him to be a man similarly interested in this type of activity.
Pollitt chatted with the undercover officer for several days and traded multiple images of a child, including an image of child pornography. Pollitt told the undercover officer that he would be seeing the child the following weekend, and intended to take additional photographs of her. Law enforcement officers then engaged in an effort to identify and locate Pollitt before he would again have access to the victim.
Ultimately, Pollitt was arrested and his electronic devices were seized. A review of those devices revealed that Pollitt had been chatting with anonymous men online about molesting the victim for over a year. Several additional photographs were found of the victim, including several additional images of child pornography.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Rachel K. Jones and Stacie B. Harris.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Soper-Wheeler Company to Pay $1.7 Million in Settlement for Plumas National Forest FireRead the Press Release
SACRAMENTO, Calif. — Soper-Wheeler Company LLC has agreed to pay $1.7 million to settle a lawsuit brought by the United States for damages resulting from a 2009 wildfire that burned 307 acres of national forest land, U.S. Attorney Phillip A. Talbert announced today.
The fire, known as the “Silver Fire,” ignited on September 19, 2009, on a steep hillside along Silver Creek, near the community of Spanish Ranch. The lawsuit alleged that a chainsaw being used by Soper-Wheeler’s employees to clear a blockage in a water pipeline struck rocks, causing sparks that ignited dry vegetation. By the time the fire was suppressed, 307 acres of the Plumas National Forest had been burned.
Soper-Wheeler is a timber company that conducts logging operations throughout Northern California. It is based in Strawberry Valley, California. Soper-Wheeler had a Special Use Permit, which allowed it to use or occupy lands in the Plumas National Forest. Settlement documents filed with the court require payment of $1.7 million to resolve the lawsuit.
“We are very pleased with this settlement, which goes a long way toward compensating the public for the expense of fighting the fire and restoring these public lands,” U.S. Attorney Talbert said. “Those who use public lands in California must be vigilant. We will continue to aggressively pursue compensation from those who are responsible for wildfires that damage our precious national resources.”
“Burned areas frequently require some restoration work in order to return them to a resilient state. These settlement funds help us reach our ecological restoration goals in these areas,” said U.S. Forest Service Pacific Southwest Regional Forester Randy Moore.
In the last five years, the U.S. Attorney’s Office has secured settlements in 20 different cases involving wildfire damage to federal lands, with settlements valued at nearly $200 million.
This case was the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Colleen M. Kennedy handled the case.
San Francisco Sheriff’s Deputy and A Former San Francisco Jail Inmate Arrested on Gun and Fraud ChargesRead the Press Release
SAN FRANCISCO – Agents of the Federal Bureau of Investigation and investigators from the San Francisco Public Corruption Task Force arrested San Francisco Sheriff’s Deputy April Myres and a former San Francisco Jail inmate, Antoine Fowler, on gun and fraud charges, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
A criminal complaint was filed in federal court against Fowler, 32, yesterday afternoon. An amended complaint was filed against Myres, 52, earlier today.
According to the complaints, Myres gave her Sheriff’s Department-issued firearm, a Glock 17 9mm pistol, to Fowler and later claimed that it had been stolen in a burglary of her home. The gun was located yesterday by FBI agents under the front driver-side console of Fowler’s car after Fowler was pulled over in Oakland by FBI SWAT agents.
According to the criminal complaints, Myres made a claim to her insurance company that numerous items, including her Sheriff’s Department-issued firearm, body armor, and handcuffs (as well as a mink jacket and a number of Louis Vuitton, Chanel, and Versace handbags, and Manolo Blahnik, Gucci, and Christian Louboutin shoes) were stolen from her home in San Francisco on March 25, 2016. The FBI conducted a search of Myres’ residence on February 2, 2017, and found a number of the items Myres claimed had been stolen. The amended criminal complaint against Myres charges her with mail fraud, wire fraud, and conspiracy, in violation of 18 U.S.C. §§ 1341, 1343, and 1349, as well as disposing of a firearm by providing it to a convicted felon, in violation of 18 U.S.C. § 922(d).
Fowler, who was released from the San Francisco Jail on January 11, 2016, is alleged to have had a romantic relationship with Myres before his release. According to the complaints, when Fowler was arrested on February 2, Myres’ service firearm, which she had reported stolen to the insurance company, was in his car. The criminal complaint against Fowler charges him with being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g).
The charges and successful recovery of the firearm were the result of close cooperation and coordination by members of the San Francisco Public Corruption Task Force, including the FBI, the San Francisco Police Department Internal Affairs Unit, the San Francisco District Attorney’s Office, and the San Francisco Sheriff’s Department Investigative Services Unit. The investigation began shortly after Myres claimed the firearm and other items were stolen from her house in March 2016.
Defendants Myres and Fowler were arrested on February 2, 2017, and made their initial appearances in San Francisco on February 3, 2017, before U.S. Magistrate Judge Laurel Beeler. Fowler is being detained pending further hearings now scheduled for February 7, 2017, at 9:30 am before Magistrate Judge Beeler. Myres was released on a $1 million secured bond and is scheduled to appear before Magistrate Judge Beeler on February 15, 2017.
If convicted, the maximum statutory penalty Fowler faces for being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g), is 10 years in prison. If convicted, the maximum statutory penalty Myres faces for each count of mail fraud, wire fraud, and conspiracy is 20 years in prison, and the maximum statutory penalty for a violation of 18 U.S.C. § 922(d), is 10 years. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A criminal complaint merely alleges there is probable cause to believe crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the United States Attorney’s Office.
Salem Man Sentenced on Federal Drug and Gun ChargesRead the Press Release
Roanoke, VIRGINIA – A Salem man, who previously pled guilty to being part of a federal drug conspiracy, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Marvis Maurice Johnson, 31, of Salem, Va., previously pled guilty to one count of conspiracy to distribute more than 280 grams of cocaine and one count of illegally possessing a firearm by a previously convicted felon. Today in District Court, Johnson was sentenced to 112 months in federal prison.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke County Police Department. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Randolph County man pleads guilty to unlawful possession of a firearmRead the Press Release
ELKINS, WEST VIRGINIA – Tre Plaugher, 22, of Elkins, West Virginia, was convicted for illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Plaugher pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Crime” and admitted to possessing a 9mm caliber pistol in January 2016. He faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Steven D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pocatello Man Sentenced for Possession with Intent to Distribute Methamphetamine and HeroinRead the Press Release
POCATELLO – Kasey Ray Converse, 32, of Pocatello, Idaho, was sentenced today to 18 months in prison for possession with intent to distribute methamphetamine and heroin, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Converse to serve three years of supervised release and forfeit a firearm and as well as all drug proceeds.
According to court documents, on December 17, 2015, Converse was stopped by the Idaho State Police in Oneida County, Idaho. Law enforcement found both methamphetamine and heroin in his possession, as well as a firearm. Converse knowingly possessed the methamphetamine and heroin intending to distribute it to another person.
The conviction is result of a joint operation of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Idaho State Police, the Pocatello Police Department, and the Oneida County Sheriff’s Office, Mini-Cassia Drug Task Force, Cassia County Sheriff’s Office, and the Minidoka County Sheriff’s Office.
Pittsburgh Man Sentenced to Probation for Ticket Fraud SchemeRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of three years probation on his conviction of conspiracy and wire fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Michael F. Schoedel, 27, of Pittsburgh, PA.
According to information presented to the court, from on or about March 1, 2014 to March 17, 2014, Schoedel falsely represented that he had tickets to entertainment events to potential purchasers on Craigslists. He would then have potential purchasers wire money for these tickets, but Schoedel did not provide any tickets.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Schoedel.
Philadelphia Attorney Convicted for Money Laundering Conspiracy Involving the Proceeds of a Major Drug Distribution Organization, Witness Tampering and Tampering with Official ProceedingsRead the Press Release
Greenbelt, Maryland – Late on February 2, 2017, a federal jury convicted Philadelphia attorney James Michael Farrell, age 63, of Wenonah, New Jersey, of money laundering, witness tampering, and obstruction of official proceedings, related to his activities on behalf of members of an extensive drug trafficking operation.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration – Philadelphia Field Office; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
“The evidence proved that James Farrell went far across the line between representing a criminal defendant and joining a criminal conspiracy,” said U.S. Attorney Rod J. Rosenstein. “He ordered witnesses to lie, filed forged affidavits, concealed criminal proceeds, and laundered financial transactions to avoid detection.”
According to the evidence presented at his 14-day trial, Farrell was admitted to practice law in Pennsylvania and New Jersey, and maintained a law office in Philadelphia, Pennsylvania. Matthew Nicka, Gretchen Peterson, David D’Amico, and others were part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore on March 18, 2009. The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, 30 cell phones, and tally sheets showing over $14 million in marijuana sales, among other items.
Trial testimony showed that beginning in 2009 and continuing through at least April 2013, Farrell conspired with Nicka, D’Amico, Peterson and others to conduct financial transactions using the proceeds of the Nicka Organization in order to conceal the source and control of the drug proceeds. A witness testified that the drug conspirators would deliver to Farrell drug proceeds in the form of cash. Farrell then deposited some of the cash into his commercial bank accounts, recording the deposits as payments in the names of individuals who had not provided the cash to Farrell. The evidence showed that, using the drug proceeds, Farrell wrote checks and disbursed cash to pay for the legal representation of grand jury witnesses and individuals under investigation in connection with the activities of the Nicka Organization, which included payments to two Baltimore area attorneys. Evidence presented at trial demonstrated that Farrell also used drug proceeds to purchase money orders, which he directed to be sent to the inmate account of an incarcerated individual who was part of the Nicka organization.
According to trial evidence, in February 2011, Farrell met with a member of the Nicka organization to discuss filing a claim with the DEA to seek the return of certain property DEA had seized upon arrest. Farrell advised that individual not to disclose to the DEA that another member of the Nicka organization had given him one of the items of property. On February 28, 2011, Farrell caused four affidavits in support of the forfeiture of the property to be filed with DEA that contained the forged signature of this individual and the forged signature of the notary public.
According to witness testimony, on July 11, 2012, Farrell met with another member of the Nicka organization, knowing that person was represented by other counsel. Farrell directed that member of the Nicka organization to meet with federal law enforcement officers and federal prosecutors, but to only tell them what they already knew, rather than sharing all the information about the drug and money laundering conspiracy, and the fact that Farrell had previously handed that person $10,000 cash in exchange for a $10,000 check. Farrell then agreed to try to obtain $25,000 to assist with that person’s legal expenses.
Farrell faces a maximum sentence of 20 years in prison for conspiracy to engage in money laundering and for each of six counts of money laundering; a maximum of 20 years in prison for each of two counts of tampering with an official proceeding; and a maximum of 20 years in prison for tampering with a witness. Farrell was acquitted of one count each of tampering with an official proceeding and tampering with a witness. U.S. District Judge Roger W. Titus has scheduled sentencing for Farrell on May 15, 2017, at 1:00 p.m.
U.S. District Judge Roger W. Titus previously sentenced: David D’Amico, age 52, of Baltimore, to 10 years in prison; Matthew Nicka, age 46, of Baltimore, to 188 months in prison; and Gretchen Peterson, age 37, of Kennett Square, Pennsylvania, to seven years in prison. D’Amico, Nicka and Peterson pleaded guilty on January13, 2016, to conspiracy to distribute at least 1,000 kilograms of marijuana and conspiracy to commit money laundering. D’Amico, Nicka and Peterson were fugitives from the time the indictment was returned in December 2010, until Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico was extradited from Colombia, South America. Judge Titus also entered forfeiture orders requiring Nicka to pay a money judgment of $15 million; and D’Amico to pay a money judgment of $1 million, which represents the proceeds of the offense.
Twelve other defendants were convicted in this investigation and sentenced to up to 121 months in prison.
United States Attorney Rod J. Rosenstein praised the DEA Washington and Philadelphia Field Offices, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston, Leah J. Bressack, and Mara Zusman Greenberg, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Pharmacist Pleads Guilty in Pill Mill CaseRead the Press Release
DALLAS — A registered pharmacist who owned, operated and served as the pharmacist in charge of GenPharm Pharmacy on Wheatland Road in Desoto, Texas, Ndufola Kigham, appeared in federal court this morning before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to federal felony offenses stemming from her involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Kigham, 45, of Arlington, Texas, pleaded guilty to two counts of misprision of a felony. She faces a maximum statutory penalty of three years in federal prison, on each of the two counts. In addition, according to the terms of her plea agreement, she agrees to pay a $9,500 fine prior to sentencing. She will remain on bond pending sentencing, which is set for May 26, 2017.
After their arrests in January 2016, Kigham, along with another co-defendant pharmacist, Kumi Frimpong, and Dr. Richard Andrews, a doctor of osteopathy who supervised the McAllen Medical Clinic on South Hampton in Dallas, were ordered to surrender their Drug Enforcement Administration (DEA) registration numbers, preventing Kigham and Frimpong from dispensing controlled substances and Dr. Andrews from issuing prescriptions for controlled substances. Kigham also surrendered the stock of controlled substances that she had in her pharmacy to DEA.
Dr. Andrews, 64, of Dallas, pleaded guilty in mid-January 2016 to one count of conspiracy to distribute controlled substances (oxycodone) and one count of conspiracy to launder monetary instruments. According to the plea agreement filed in his case, if the Court accepts the plea, the parties agree that a sentence of at least 48 months but no more than 96 months in federal prison is the appropriate disposition of his case. He has agreed that he will not apply for another DEA Certificate of Registration, and he further agreed never to seek or retain employment, including consulting, in or related to the pain management industry. He also agreed not to obtain or maintain, directly or indirectly, a financial ownership interest in a pain management clinic or home healthcare service. He remains on bond pending sentencing, which is set for April 28, 2017.
Frimpong, 56, of Dallas, who owned, operated, and was the pharmacist in charge at Cornerstone Pharmacy, on Bolton Boone Drive in Desoto, pleaded guilty in September 2016 to one count of conspiracy to illegally distribute oxycodone. He also agreed to surrender $41,112 to the U.S. that constituted proceeds from dispensing oxycodone during the conspiracy. He faces a maximum statutory penalty of 20 years in federal prison and is scheduled to be sentenced on March 17, 2017.
According to plea documents filed in Kigham’s case, between approximately January 2013 and August 2014, several individuals conspired to distribute 30mg oxycodone, a Schedule II controlled substance. Kigham admitted that she knew of the conspiracy and failed to notify any authority of it. Instead, she committed affirmative acts to conceal the conspiracy, such as filling prescriptions for 30mg oxycodone written for multiple different individuals and dispensing the filled prescriptions to a single individual, and not to the individuals named on the prescription. By filling these prescriptions while the conspiracy was ongoing, Kigham dispensed more than 70,000 30mg oxycodone pills based on legitimate prescriptions.
Another co-conspirator in the case, Muhammad Faridi, 40, who is not a physician but who was the owner of the McAllen Medical Clinic, pleaded guilty in August 2016 to one count of conspiracy to launder monetary instruments and is scheduled to be sentenced in March 2017.
In February 2015, a federal grand jury in Dallas indicted 23 individuals on offenses related to their participation in the prescription drug distribution conspiracy. 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, to obtain prescriptions to fill those prescriptions at designated pharmacies.
Superseding indictments were returned in December 2015 and in January 2016, and a total of 31 individuals were charged. Many of those defendants have pleaded guilty and are awaiting sentencing. Eleven have been sentenced to date. Trial for the one remaining defendant, Carolina Berrio, is set for April 10, 2017.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation is being conducted by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation, with assistance from the 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 is in charge of the prosecution.
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