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1 February 2017
Grand Prairie, Texas Man Sentenced to 6 Months for Bank FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that ISSAC YEBOAH, age 30, of Grand Prairie, Texas, was sentenced to 6 months imprisonment, and 3 years of supervised release for BANK FRAUD, in violation of Title 18, United States Code, Sections 1344(2) and 2; and for UNLAWFUL TRANSFER, POSSESSION OR USE OF A MEANS OF IDENTIFICATION, in violation of Title 18, United States Code, Sections 1028(a)(7) and 2.
The Indictment alleged that on or about March 18, 2016, in the Eastern District of Oklahoma, the defendant did knowingly obtain moneys and funds owned by and under the custody and control of CreditONE, a financial institution as defined by Title 18, United States Code, Section 20, whose deposits were insured by the Federal Deposit Insurance Corporation, by means of false pretenses and representations, by using an unauthorized credit card.
The indictment further alleged that on the same date, the defendant did knowingly possess in or affecting interstate or foreign commerce, without lawful authority, a means of identification of another person, knowing that the means of identification belonged to another actual person, with the intent to commit, or to aid or abet or in connection with, Bank Fraud.
The charges arose from an investigation by the Murray County Sheriff’s Office, the Oklahoma Highway Patrol, and the United States Secret Service.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Melody Nelson represented the United States.
Grand Jury Indicts Eight Members of Multi-State Drug Trafficking NetworkRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a federal grand jury indictment charging eight individuals in connection with an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Trafficking Task Force (OCDETF) aimed at a drug trafficking network based in Ascension Parish and covering Louisiana, Texas, and Mississippi.
The indictment charges significant drug trafficking offenses involving cocaine, crack cocaine, and heroin. If convicted, these defendants face significant terms of imprisonment, fines, and the forfeiture of proceeds from the illegal activity. The defendants are as follows:
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Arthur Johnson, Jr., a.k.a. “Nelson Howard,” “Wood,” and “Dread,” age 40, of Hattiesburg, Mississippi, CEO of “Ruff-n-Rugged Entertainment” in Geismar, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine, crack cocaine, and 100 grams or more of heroin; distribution of 100 grams or more of heroin; unlawful use of a communication facility; and forfeiture.
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Lorenza Benitez Alday, a.k.a. “Old Woman,” “Old Lady,” and “Old Girl,” age 51, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine, crack cocaine, and heroin; possession with the intent to distribute five kilograms or more of cocaine; unlawful use of a communication facility; and forfeiture.
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Tom Christmas III, a.k.a. “Bald Head” and “Tom Jr.,” age 40, of Geismar, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine, crack cocaine, and 100 grams or more of heroin; distribution of 100 grams or more of heroin; unlawful use of a communication facility; and forfeiture.
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Rodolfo De La Cruz Alday, age 43, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine, crack cocaine, and heroin; possession with the intent to distribute five kilograms or more of cocaine; unlawful use of a communication facility; and forfeiture.
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Norberto Aaron Bejarano, age 30, of Houston, Texas, is charged with conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine, crack cocaine, and heroin; distribution of five kilograms or more of cocaine; unlawful use of a communication facility; and forfeiture.
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Reginald Jackson, a.k.a. “Lemonhead,” age 44, of Geismar, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine, 28 grams or more of crack cocaine, and heroin; distribution of cocaine; distribution of crack cocaine; distribution of 28 grams or more of crack cocaine; and forfeiture.
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Lashucklan Martin, a.k.a. “Fat,” age 39, of Hattiesburg, Mississippi, is charged with conspiracy to distribute and possess with the intent to distribute cocaine, crack cocaine, and heroin; unlawful use of a communication facility; and forfeiture.
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Everett D. Ramsey, a.k.a. “Ram,” age 30, of Hattiesburg, Mississippi, is charged with conspiracy to distribute and possess with the intent to distribute cocaine, crack cocaine, and heroin; unlawful use of a communication facility; and forfeiture.
U.S. Attorney Green stated: “Our office will continue to aggressively pursue drug traffickers using all legal means available. I commend the FBI, the Ascension Parish Sheriff’s Office, and all of the other federal, state, and local law enforcement agencies who contributed to this important matter.”
Jeffrey S. Sallet, the Special Agent-in-Charge of the New Orleans Division of the Federal Bureau of Investigation, stated: “This investigation and indictments are the result of multiple law enforcement agencies working together to keep our communities safe. The FBI will continue to work with our federal, state and local partners to combat violent gangs and illegal drug traffickers.”
Ascension Parish Sheriff Jeff Wiley stated: “We partnered with the FBI on this case several years ago. We will continue to work together to keep our streets safe from drugs and other criminal activity.”
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This joint operation is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana; the FBI Baton Rouge Capitol Area Gang Task Force, which is an FBI Safe Street Task Force that includes the East Baton Rouge Sheriff’s Office and Baton Rouge Police Department; the Ascension Parish Sheriff’s Office; the FBI Hattiesburg, Mississippi, Resident Agency; and Hattiesburg, Mississippi, Police Department. This matter is being prosecuted by Assistant United States Attorneys Jamie A. Flowers, Jr. and Cam Le.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
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Gloucester County, New Jersey, Man Admits Role in Camden Drug Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - A Mantua, New Jersey, man today admitted overseeing a more than 15-month conspiracy to sell crack cocaine in Camden, New Jersey, U.S. Attorney Paul J. Fishman announced.
Harold Miller, 41, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base.
According to documents filed in this case and statements made in court, Miller admitted that from May 2014 through Sept. 1, 2015, he oversaw a conspiracy to distribute crack cocaine on Pfeiffer Street in Camden. Miller admitted that as part of his role, he managed the drug sales on Pfeiffer Street and coordinated the supply of crack cocaine to other dealers.
The conspiracy charge carries a maximum potential penalty of 20 years in prison. Miller’s sentencing is scheduled for May 8, 2017.
Miller was arrested on Sept. 2, 2015 following an investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Rasheed Wise, Rodney Wall, and David Wilkerson, all of Camden, previously pleaded guilty to their roles in the conspiracy and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation.
The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill of the U.S. Attorney’s Office in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Gloucester County Man Pleads Guilty to Child Pornography ChargeRead the Press Release
NEWPORT NEWS, Va. – Timothy Justin George, 27, of Gloucester County, pleaded guilty today to distribution of child pornography.
According to the statement of facts filed with the plea agreement, in September 2016, law enforcement conducted a search of George’s home and seized a number of electronic devices. A forensic examiner completed a forensic analysis of the devices and found over 31,000 images of child pornography.
George was indicted by a federal grand jury on Dec. 14, 2016, and faces a minimum of five years in prison and a maximum of 20 years in prison when sentenced on May 8. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-96.
Fresno Business Owner Pleads Guilty to Money LaunderingRead the Press Release
FRESNO, Calif. — Krishen Sauble Iyer, 36, of Fresno, pleaded guilty today to conspiring to launder money, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Iyer was the owner of several insurance sales and brokerage businesses in Fresno. Iyer conspired with S.V., whom he knew to be a marijuana trafficker, to launder the proceeds of S.V.’s marijuana trafficking through one of Iyer’s businesses, Health Shield. Iyer and S.V. agreed that S.V. would transfer the drug proceeds to Health Shield, and those funds would then be paid back to S.V. to make the drug proceeds appear to be legitimate salary payments. Iyer issued two Form 1099s to S.V., which claimed that Health Shield paid S.V. $111,952 in 2013 and $164,000 in 2014, even though he never earned all of those funds from the company. S.V. paid Iyer a commission for transferring the funds.
This case is the product of an investigation by the Drug Enforcement Administration, the IRS Criminal Investigation, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Jeffrey A. Spivak are prosecuting the case.
Iyer is scheduled to be sentenced by Judge Dale A. Drozd on April 24, 2017 at 10:00 a.m. Iyer faces a maximum statutory penalty of 20 years in prison and a $500,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Founder of Non-Profit Charged with Bribing Former Prince George’s County Official in Exchange for Grant FundsRead the Press Release
Greenbelt, Maryland – A criminal complaint has been filed charging Felix Nelson Ayala, of Rockville, Maryland, late yesterday with bribery and making false statements in connection with a scheme to engage in bribery in order to influence a public official in the performance of his official duties in Prince George’s County. Ayala’s initial appearance is scheduled today at 1:45 p.m. before U.S. Magistrate Judge Timothy J. Sullivan in U.S. District Court in Greenbelt, Maryland.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to affidavit filed in support of the criminal complaint, Ayala was an accountant and founder of Ayala and Associates Public Accountants in Washington, D.C. Ayala was also the founder of the Salvadoran Business Caucus, a non-profit organization also known as the Caucus Salvadoreno Empresarial, Inc. (CSE). CSE’s website stated that CSE awarded scholarships to high school and college students.
The affidavit alleges that Ayala paid bribes to former Prince George’s County Council Member Will Campos in exchange for grant funding. Specifically, the affidavit alleges that Ayala paid Campos $5,000 for each of County fiscal years 2012 through 2015, in exchange for $25,000 in grants to CSE in each of those years. For example, on August 13, 2014, Campos met with Ayala for lunch in Washington, D.C. During the meeting, Ayala asked Campos what would happen after Campos left his position on the County Council and assumed his position within the Maryland General Assembly. According to the affidavit, Ayala advised, “The arrangement is still on,” and Campos asked if Ayala had anything for Campos. Ayala asked Campos to give him two weeks, and “I [Ayala] call you and I’ll say let’s, let’s have a drink and you know what it’s for.” Campos asked for $5,000, “like last time,” and Ayala agreed.
According to the affidavit, on September 23, 2014, Ayala had dinner with Campos at a restaurant in Silver Spring, Maryland, and discussed the grant money. Specifically, Campos advised that he would push for Ayala to still receive grant money after Campos left office. At the conclusion of the meal, Ayala walked Campos out of the restaurant and allegedly handed Campos an envelope bearing a label for CSE and containing a cashier’s check for half the agreed upon amount. The affidavit alleges that Ayala explained, “I was unable to obtain cash. It’s better like this. This comes from – from a third party who knows me, so it’s better.” Campos joked that Ayala was paying “half now, half later,” and Ayala responded, “I would say that.”
According to the affidavit, on January 8, 2015, Ayala met with Campos at Ayala’s office in Washington, D.C. Ayala reached into his desk and retrieved an envelope. Ayala handed the envelope to Campos, who asked if it was “the rest that we talked about? 2,500?” and Ayala responded, “Yeah.” The affidavit alleges that inside the envelope, Ayala had placed $2,500 in cash.
On January 5, 2017, Ayala was interviewed by federal law enforcement agents. The affidavit alleges that Ayala denied providing anything of value to Campos in exchange for receiving Prince George’s County grant money for CSE. Thereafter, agents showed Ayala still photographs from videos taken while Ayala was making bribe payments to Campos on September 23, 2014 and January 8, 2015.
If convicted, Ayala faces a maximum sentence of ten years in prison for bribery, and a maximum of five years in prison for false statements. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, IRS-CI, and Prince Georges County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom, Mara Zusman Greenberg, and James A. Crowell IV, who are prosecuting the case.
Fort Myers Urologist Agrees to Pay More Than $3.8 Million for Ordering Unnecessary Medical TestsRead the Press Release
Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that Meir Daller, M.D. has agreed to pay $3.81 million to the government to resolve allegations that he violated the False Claims Act by causing claims to be submitted to federal health care programs for laboratory tests that were not medically necessary.
During the relevant time period, Dr. Daller was a urologist practicing as part of Gulfstream Urology, which was a division of 21st Century Oncology, LLC. 21st Century is a nationwide provider of integrated cancer care services that is headquartered in Fort Myers. As part of its business, 21st Century employs and affiliates with physicians in specialty fields such as radiation oncology, medical oncology, and urology.
The settlement announced today resolves allegations that Dr. Daller submitted claims to Medicare and Tricare for fluorescence in situ hybridization, or “FISH,” tests that were not medically necessary. FISH tests are laboratory tests performed on urine that can detect genetic abnormalities associated with bladder cancer. Medicare does not consider a FISH test reasonable or necessary unless it is used to monitor for tumor reoccurrence in a patient previously diagnosed with bladder cancer or unless, after performing a full urologic workup, the physician has reason to suspect that a patient with hematuria (i.e., blood in the urine) may have bladder cancer.
Beginning in 2009, Dr. Daller began referring all of the FISH testing ordered by him to a laboratory owned and operated by 21st Century. During the relevant time, Dr. Daller ordered over 13,000 separate FISH tests on his Medicare patients, making him the number one referring physician in the country with respect to FISH tests. Dr. Daller was paid bonuses by the company based, in part, on the number of FISH tests he referred to 21st Century laboratory. During the relevant time, Dr. Daller received approximately $2 million in bonus payments from 21st Century associated with these FISH tests.
The allegations that doctors affiliated with 21st Century were ordering unnecessary FISH tests were originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The original lawsuit was captioned United States, State of Florida, ex rel. Mariela Barnes v. Dr. David Spellberg, 21st Century Oncology and Naples Urology Associates, Civil Action No. 2:13-cv-228-FtM-38DNF (M.D. Fla.).
In addition to the civil settlement, Dr. Daller has entered into a three-year Integrity Agreement with the Office of Inspector General of the United States Department of Health and Human Services. The Integrity Agreement, among other obligations, requires Dr. Daller to retain an Independent Review Organization to perform a Claims Review, as well as an Electronic Health Records Review to evaluate the appropriateness of any revisions made to the medical record after initial entry, pursuant to Medicare and Medicaid requirements.
In addition to the settlement announced today with Dr. Daller, the United States previously entered into settlements relating to similar allegations with 21st Century Oncology for $19.75 million and urologists David Spellberg, M.D. and Robert Scappa, D.O. for $1,050,000 and $250,000, respectively. As a result, the United States’ total recovery relating to the investigation of the use of FISH tests by doctor’s affiliated with 21st Century is now $24,860,000.
The whistleblower, a former medical assistant who worked for David Spellberg, M.D. at Naples Urology Associates, which was also a division of 21st Century Oncology, will receive $571,500 as her share of this recovery. This amount is in addition to a $3,437,000 million share she already received as a result of the settlements previously reached with David Spellberg, M.D, Robert Scappa, D.O., and 21st Century Oncology.
“Charging for clearly unnecessary medical services defrauds the government, threatens the viability of public health care programs, and breaches the sacred trust that physicians owe their patients,” said U.S. Attorney Bentley. “Our office will continue to pursue and hold accountable health care providers who defraud the United States.”
“Greed was the clear motive in this case," said Shimon R. Richmond, Special Agent in Charge for the HHS Office of the Inspector General. “Patients' needs played no role in ordering tests that were medically unnecessary and could have endangered patient care. Egregious fraud, such as alleged in this settlement, will not be tolerated. Together with our law enforcement partners, we will protect beneficiaries and the federal health care programs they rely upon.”
"The Defense Criminal Investigative Service (DCIS) continues to protect the integrity of the U.S. military health care program (TRICARE) against fraud as one of our top priorities. DCIS dedicates substantial resources to investigating both corporate and individual medical services providers who defraud the TRICARE program," said Special Agent in Charge John F. Khin, Southeast Field Office.
The investigation was handled by Trial Attorney Arthur Di Dio from the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Kyle S. Cohen, with assistance from DCIS, FBI, and the Department of Health and Human Services Office of Inspector General.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.4 billion through False Claims Act cases, with more than $19.6 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former U.S. Postal Carrier Convicted of Dumping MailRead the Press Release
A federal jury convicted a former U.S. postal carrier of delaying and detaining mail in Broward County.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), made the announcement.
John Henry Caddle, Jr., 58, of Hollywood, was convicted by a federal jury yesterday of three counts of delaying and detaining mail, in violation of Title 18, United States Code, Section 1703(a). Caddle faces a maximum statutory sentence of five years in prison as to each count of conviction. Sentencing is scheduled for April 21, 2017 at 9:00 a.m. before U.S. District Judge James I. Cohn.
According to the court record, including trial testimony, on August 18, 2016, a witness saw Caddle dump a garbage bag into a dumpster near the defendant’s residence. The witness recovered the garbage bag from the dumpster and found that it contained deliverable mail from Caddle’s assigned mail route. The witness contacted U.S. postal authorities and alerted them to the mail that had been discovered in in the dumpster. On August 18 and 19, 2016, Caddle was employed as a U.S. Postal Carrier and had a duty to deliver the mail.
Mr. Ferrer commended the investigative efforts of the USPS-OIG. The case is being prosecuted by Assistant United States Attorney’s Randy Katz and Jennifer A. Keene.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former North Carolina Correctional Officer Sentenced to 5 Years ImprisonmentRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that GREGORY DUSTIN GOULDMAN was sentenced today to 60 months in prison followed by 3 years of supervised release.
On August 19, 2015, a federal grand jury in Raleigh returned an Indictment charging GOULDMAN, a former Sergeant in the High Security Maximum Control Unit (“HCON”) at Polk Correctional Institution (“Polk”) in Butner, North Carolina, with extorting funds from inmates in exchange for delivery of various contraband items.
GOULDMAN, who is 33 years of age, was employed as a Correctional Officer at Polk from 2005, through May of 2015. From 2012, through September of 2014, GOULDMAN held the position of Sergeant and worked as a supervisor in the HCON unit at Polk. The HCON unit was opened in 1998 to serve as North Carolina’s supermax prison for “the state’s most violent and assaultive offenders.” GOULDMAN misused his high level position of public trust to enter arrangements under which he smuggled tobacco, marijuana, cellular telephones, and packages of AA batteries (often used to fashion a device for charging the cellular telephones) to HCON inmates in exchange for electronic transfers or cash. The cellular telephones were used by the inmates to communicate with persons outside of prison and to transfer funds through the use of various internet accounts, such as green dot. GOULDMAN’s supervisory position in HCON provided him with the ability to meet with inmates without other correctional officers present. This privacy allowed GOULDMAN the freedom to negotiate prices and ultimately deliver the contraband items to the HCON inmates without witnesses. After being transferred out of HCON in September of 2014, GOULDMAN continued to smuggle contraband into Polk for additional inmates.
The United States Attorney’s Office and FBI’s investigation into Polk was prompted by the circumstances relating to the kidnapping conspiracy orchestrated by defendant Kelvin Melton through the use of a cellular telephone in his cell in HCON.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Dennis Duffy and Leslie Cooley.
Former Mayor Pleads Guilty to Wire Fraud for Using Campaign Contributions for His Own Personal BenefitRead the Press Release
A former mayor of Dunkirk, New York pleaded guilty today to engaging in a scheme to defraud his mayoral campaign and supporters by stealing campaign contributions for his personal benefit, announced Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division and Acting U.S. Attorney James P. Kennedy Jr. of the Western District of New York.
Richard L. Frey, 85, pleaded guilty to one count of wire fraud before U.S. District Judge Richard J. Arcara of the Western District of New York. Sentencing is scheduled for May 11, 2017.
According to admissions made in connection with his plea, from at least January 2003 through June 2012, Frey solicited and received several large campaign contributions from a number of area businesses and businesspeople and then, instead of depositing the donations into his campaign accounts, either cashed the checks for his personal use or deposited the checks into his personal bank accounts. Frey admitted that he concealed the existence of these larger campaign contributions by not reporting or disclosing them on his campaign disclosure reports, as was required of local candidates for public office.
FBI’s Buffalo Field Office and the U.S. Housing and Urban Development Office of Inspector General investigated the case. Former Assistant U.S. Attorney John E. Rogowski and Assistant U.S. Attorney John Fabian of the Western District of New York and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Federal Air Marshal SentencedRead the Press Release
PHOENIX – Yesterday, Kristopher Gale Hanks, 40, of Ashburn, Va., was sentenced by United States Senior District Judge Roslyn O. Silver to three years’ probation. Hanks had previously pleaded guilty to conspiracy to deliver misbranded drugs into interstate commerce.
Hanks is a former law enforcement officer who helped make and sell illicit designer drugs commonly known as “spice” and “bath salts.” “Spice” and “bath salts” are drugs that look like marijuana or cocaine but are falsely labeled and sold as innocuous household products like “incense,” “potpourri,” or “bath treatments” in an effort to circumvent federal drug and consumer laws.
Through this Organized Crime Drug Enforcement Task Force investigation, agents determined that Hanks assisted co-conspirators make and sell “spice” products. Later, Hanks made and sold a “bath salt” product called “Flash Bang” that was redistributed in Arizona and elsewhere. “Flash Bang” contained the chemical 4-MEC, which is a stimulant compound that Hanks ordered from China.
Hanks’ involvement in this conspiracy ended in the summer of 2011 when he joined the Federal Air Marshal Service. Prior to his involvement in this case, Hanks was employed as a police officer with the Salt Lake City, Utah, and Gilbert, Ariz., police departments and as a security contractor with the Department of Defense in Iraq.
The investigation in this case was conducted by the Drug Enforcement Administration and the Internal Revenue Service-Criminal Investigations. The prosecution was handled by D. J. Pashayan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-0989-PHX-ROS
RELEASE NUMBER: 2017-007_Hanks
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Executive of Tenet Healthcare Corporation Charged for Alleged Role in $400 Million Scheme to DefraudRead the Press Release
A former senior executive of Tenet Healthcare Corporation, was indicted for his alleged role in an over $400 million scheme to defraud. The indictment alleges that the scheme to defraud victimized the U.S. government, the Georgia and South Carolina Medicaid Programs, and prospective patients of Tenet hospitals.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge David J. LeValley of the FBI’s Atlanta Division and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office made the announcement.
John Holland, 60, of Dallas, was charged in an indictment filed on Jan. 24 in the Southern District of Florida with one count of mail fraud, one count of health care fraud and two counts of major fraud against the United States. Holland made an initial appearance today, Feb. 1, at 2:00 p.m. EST before U.S. Magistrate Judge Edwin G. Torres of the Southern District of Florida.
According to the indictment, Holland formerly served as a senior vice president of operations for Tenet Healthcare Corporation’s Southern States Region and as chief executive officer of North Fulton Medical Center Inc. in Roswell, Georgia. The indictment alleges that from approximately 2000 through 2013, Holland engaged in a scheme to defraud the United States, and the Georgia and South Carolina Medicaid Programs, by causing the payment of bribes and kickbacks in return for the referral of patients to North Fulton Medical Center Inc. and other Tenet hospitals in the Southern States Region, including Atlanta Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital. From approximately 2007 through 2013, Tenet maintained and operated an affiliated billing center located in Boca Raton, Florida, that assisted in processing, for payment, Medicaid billings for these hospitals. Holland took affirmative steps to conceal the scheme including by circumventing internal accounting controls and falsifying Tenet’s books, records and reports. These kickbacks and bribes helped Tenet bill the Georgia and South Carolina Medicaid Programs over $400 million, and Tenet obtained more than $149 million in Medicaid and Medicare funds based on the resulting patient referrals, the indictment alleges.
According to the allegations, to effectuate the scheme, Holland, among other things, made false and fraudulent statements to HHS-OIG in connection with Tenet’s 2006 Corporate Integrity Agreement (the CIA), in which he falsely certified to HHS-OIG that Tenet was in compliance with the terms of participation in the Medicare and Medicaid Programs, and the terms of the CIA, when in fact he knew that Tenet was paying for illegal patient referrals. Holland’s certifications were included as part of Tenet’s yearly annual reports that were mailed to the HHS-OIG monitor located in Miami Lakes, Florida. During the duration of the CIA from 2007 through 2011, Tenet received over $10 billion in payments from federal health care programs – monies that Tenet would not have received had the company been excluded from participation in federal health care programs, the indictment alleges.
“These charges underscore our continued commitment to holding both individuals and corporations accountable for their fraudulent conduct,” said Acting Assistant Attorney General Blanco. “We will follow the evidence where it takes us, including to the corporate executive ranks.”
“Medicaid patients have the right to seek healthcare without fearing that care is tainted by bribes and illegal kickbacks,” said Special Agent in Charge for FBI’s Atlanta Division LeValley. “Not only did patients suffer because of these alleged actions, but this kind of alleged abuse threatens to drive up the cost of healthcare for everyone. The FBI is committed to ensuring that federal laws related to the healthcare industry are enforced, and this case is an example of that commitment.”
“Health care companies and their executives must bill taxpayer-funded health programs honestly,” Special Agent in Charge Jackson of the HHS Office of Inspector General. “Working with our law enforcement partners, our office will continue to pursue those who attempt to defraud Medicare and Medicaid, as alleged in this indictment.”
On Oct. 19, 2016, North Fulton Medical Center Inc. and Atlanta Medical Center Inc. pleaded guilty to conspiring to defraud the United States and to violate the Anti-Kickback Statute. Tenet subsidiary Tenet HealthSystem Medical Inc. and its subsidiaries (THSM) also entered into a non-prosecution agreement (NPA) with the government at that time. Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls. Tenet also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of the AKS by any entity owned in whole, or in part, by Tenet. Tenet and its subsidiaries also agreed to pay over $513 million to resolve the criminal charges and civil claims arising from the matter.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Atlanta Field Office, HHS-OIG and the FBI Healthcare Fraud Unit Major Provider Reponse Team are conducting the investigation. Deputy Chief Joseph S. Beemsterboer, Assistant Chiefs Robert A. Zink and Sally B. Molloy and Trial Attorney Antonio M. Pozos of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine locations across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.
Former Dunkirk Mayor Pleads Guilty to Wire Fraud for Using Campaign Contributions for His Own Personal BenefitRead 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 former City of Dunkirk Mayor Richard L. Frey, 85, of Dunkirk, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to wire fraud involving a scheme to defraud his mayoral campaign and his supporters by stealing campaign contributions for his personal benefit. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian and Department of Justice Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section, who are handling the case, stated that the defendant was the City of Dunkirk mayor from January 2002 until January 2012. During that time, Frey had substantial personal debt.
From January 2003, to June 2012, the defendant devised and executed a scheme to defraud the co-owners of a hospitality company that owned a hotel in Dunkirk and the owner of a food production company in Dunkirk by inducing them to make contributions to his mayoral and other political campaigns. After receiving checks from these individuals, Frey, rather than depositing the funds into a campaign or official account, simply spent them for his own personal benefit. The contributions totaled $54,361.30. In addition, Frey failed to report or disclose the contributions on his campaign disclosure reports, which is required of local candidates for public office.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the U.S. Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Brad Geary.
Sentencing is scheduled for May 11, 2017, at 1:00 p.m. before Judge Arcara.
Former Deschutes County Sheriff Captain's Mistress Sentenced for Making False Statements to Federal AgentsRead the Press Release
EUGENE, Ore. – On Monday, January 30, 2017, Krista Jean Mudrick, 36, a resident of Deschutes County, Oregon and former Deschutes County Sheriff employee, was sentenced to three years of probation and 200 hours of community service by U.S. District Judge Michael J. McShane for lying to FBI and IRS agents.
On September 15, 2016, Mudrick pleaded guilty to making material false statements to federal agents about her relationship with former Deschutes County Sheriff Captain Scott Raymond Beard and receiving cash and gifts from him. On September 8, 2016, Judge McShane sentenced Beard to five years in prison for stealing $205,747 in public funds designated for use in combating drug crimes.
Beard falsified records to steal from programs receiving federal funds, which he was entrusted to manage, and then laundered the money by making cash deposits into Mudrick’s bank account. Beard also used some of the public money to fund an international vacation to a resort with Mudrick, bought her a motorcycle and paid for her apartment. U.S. District Judge McShane told Beard when imposing the five-year sentence that “[t]he community has to know that [this conduct] will not be tolerated.”
During her own sentencing hearing, Mudrick admitted lying to agents but denied knowing Beard was stealing public funds. A long-time volunteer for numerous charities, Mudrick offered to do community service work. When imposing the probationary sentence, Judge McShane noted this was Mudrick’s first offense and her lies had not impeded the agents’ investigation of Beard.
This case was investigated jointly by the FBI and IRS and prosecuted by Christopher Cardani and Frank R. Papagni, Jr., Assistant United States Attorneys for the District of Oregon.
Florida Department of Health Supervisor Sentenced to Prison for Accepting a BribeRead the Press Release
Florida Department of Health supervisor sentenced to prison for accepting a bribe.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office announce that
Johnson, 58, of Tamarac, was sentenced yesterday to five months’ imprisonment by U.S. District Judge Daniel T. K. Hurley, after having previously pled guilty to extortion under color of official right, in violation of Title 18, United States Code, Section 1951.
On June 22, 2015, Johnson was employed as a supervisor at the Broward County office of the Florida Department of Health, in Fort Lauderdale, Florida. Two home builders met Johnson while he was working at the Florida Department of Health office and paid the defendant $500 in exchange for sewage and water permits.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Jury Convicts Woman in ID Theft CaseRead the Press Release
DALLAS – Following a three-day trial before Chief U.S. District Judge Barbara M. G. Lynn, a federal jury convicted Deborah Petty, 48, of Mesquite, Texas, on several identity theft offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, yesterday afternoon, the jury convicted Petty on seven counts of identity theft and one count of aggravated identity theft. Each of the identity theft counts carries a maximum statutory penalty of fifteen years in federal prison and a $250,000 fine. The aggravated identity theft count carries a $250,000 fine and a mandatory statutory penalty of two years in federal prison, consecutive to any other sentence Petty receives on Counts one through seven. Restitution could also be ordered. Sentencing has not yet been scheduled.
The government presented evidence at trial that Petty worked at the Western Regional Center for Brain and Spine Surgery (WRCBSS), a medical facility in Las Vegas, Nevada, between November 28, 2011, and June 29, 2012. In her position, and prior to her termination from WRCBSS, Petty obtained access to patient files, which included patients' names, dates of birth, and social security numbers. Petty understood and signed an acknowledgement that she would have access to confidential patient information and agreed that she would not disclose or share such information. Nonetheless, Petty stole hundreds of patient files and maintained possession of those files until May 2014, long after she left WRCBSS.
During the time in which she possessed these stolen identities, Petty used the identities in connection with a food stamp fraud scheme in the State of Florida. Approximately 110 individual patients from WRCBSS had food stamp benefits obtained in their name, totaling over $44,000 in losses to the government. Petty eventually moved to Mesquite and obtained new employment at another entity, Epic Healthcare Services, by overstating her qualifications and omitting her work at WRCBSS. In her new position, Petty again had access to patient identifiers and other personal information. In May 2014, the Mesquite Police Department recovered approximately 1,500 stolen identities possessed and maintained by Petty in an apartment in Mesquite.
The U.S. Department of Agriculture, U.S. Department of Health and Human Services Office of Inspector General and the Mesquite Police Department investigated the case. Assistant U.S. Attorneys Kate Rumsey and P.J. Meitl are in charge of the prosecution.
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District Man Sentenced to Three Years in Prison for Robbing Bank in Northwest WashingtonRead the Press Release
WASHINGTON – David Proctor, 56, of Washington, D.C., who has no fixed address, has been sentenced to three years in prison for a mid-morning bank robbery he committed last year in Northwest Washington, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Proctor pled guilty in October 2016, in the U.S. District Court for the District of Columbia, to a bank robbery charge. He was sentenced on Jan. 31, 2017, by the Honorable Rudolph Contreras. Following completion of his prison term, Proctor will be placed on three years of supervised release.
According to the government=s evidence, on June 13, 2016, at approximately 9:25 a.m., Proctor entered a TD Bank in the 1400 block of P Street NW. He approached the teller counter and passed the teller a demand note that stated, “This a Robbery Pass All Big Bills 100’s 50’s 20’s And No One Will Get Hurt.” Proctor then instructed the teller to give him large bills. His right hand remained in his pocket, and the teller believed he could have possibly had a weapon. However, the teller did not observe a weapon. The teller, fearing for her safety and the safety of others, turned over more than $3,000 and Proctor fled. Surveillance video captured the robbery, and multiple witnesses subsequently identified Proctor. He was arrested Aug. 1, 2016.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Interim Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias and Legal Assistant Peter Gaboton. Finally, they commended the efforts of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
Detroit man indicted for selling carfentanil that killed Marion manRead the Press Release
A Detroit man was indicted for selling carfentanil that killed a man in Marion last year, law enforcement officials said.
Ronald Dale Wilson, Jr., 24, was charged in U.S. District Court with drug trafficking and drug trafficking that resulted in death.
Wilson possessed carfentanil and cocaine on Oct. 31. 2016. Wilson sold cocaine and carfentanil on that day to an individual identified as K.C., which resulted in K.C.’s overdose death, according to the indictment.
“We will continue to seek long prison sentences for drug traffickers who kill our neighbors and destroy our families,” U.S. Attorney Carole S. Rendon said. “Aggressive law enforcement is one component to confronting the opioid epidemic, along with increased education, changing prescribing practices and making treatment available to those who want help.”
FBI Special Agent in Charge Stephen D. Anthony said: “Heroin use continues to increase in astonishing proportions with overdose deaths in Ohio being among the highest in the country. Individuals, like Ronald Dale Wilson, Jr., will be held accountable for selling illegal drugs that kill. Efforts to rid the streets of heroin and other dangerous drugs remains a top priority for the FBI, our law enforcement partners, and the community.”
“We hope word is getting out that if you sell drugs in Marion and cause the death of another you are looking at a possible 20-year sentence," Marion Police Chief Bill Collins said. “We hope this proves to be a stronger deterrent to the thugs who choose to sell drugs in Marion.”
The charges include an enhanced penalty specification which could result in a mandatory minimum sentence of 20 years in prison. If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum.
This case was investigated by the Federal Bureau of Investigation and the Marion Police Department. The case is being prosecuted by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Dauphin County Woman Pleads Guilty to Social Security Fraud and Harboring an Illegal AlienRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Stephayne McClure-Potts, age 51, of Harrisburg, Pennsylvania, pleaded guilty today before United States District Judge Sylvia H. Rambo to social security fraud and harboring an illegal alien.
According to United States Attorney Bruce D. Brandler, McClure-Potts provided false information to the Commissioner of Social Security on ten separate occasions with the intent to obtain a social security card with a fictitious identity for another person. McClure-Potts also harbored an illegal alien from March 2013 through August 2015.
Michael McClure-Potts, age 60, was also charged in October 2016, with harboring an illegal alien from March 2013 through August 2015. His trial is scheduled to begin on February 21, 2017.
This case was investigated by the Department of State Diplomatic Security Service, the Social Security Administration Office of Inspector General and the City of Harrisburg Bureau of Police. Assistant United States Attorney Daryl F. Bloom is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for these offenses is 10 years’ imprisonment, a term of supervised release of three years, and a $500,000 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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Court of Appeals Affirms 14-Year and 12 ½ -Year Prison Sentences for Two Luzerne County Heroin DealersRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the United States Court of Appeals for the Third Circuit affirmed a 14-year prison sentence and a 12 ½-year prison sentence imposed by Senior U.S. District Court Judge James M. Munley on two Luzerne County men who participated in a heroin trafficking conspiracy during 2014.
According to United States Attorney Bruce D. Brandler, the Court of Appeals affirmed Desmond Mercer’s 14-year prison sentence and Shaliek Stroman’s 12 ½-year prison sentence as being both procedurally and substantively reasonable. Mercer was sentenced in March 2016, and Stroman was sentenced in January 2016.
Mercer previously pleaded guilty to conspiring with Stroman and others from Luzerne County, New Jersey, and Alabama, to distribute heroin to customers in the Luzerne County area. Mercer in his plea acknowledged distributing more than 700 grams of heroin (which equals approximately 23,000 retail bags of heroin) and playing a leadership role in the conspiracy. During part of the conspiracy, Mercer ran the drug operation while an inmate at the Luzerne County Prison.
Stroman, a sub-distributor of heroin for Mercer, also previously pleaded guilty to the conspiracy charge.
In separate opinions upholding the sentences, the Third Circuit Court of Appeals reasoned that Judge Munley appropriately considered the respective advisory sentencing guideline ranges, the presentence reports, and the relevant sentencing factors under federal law.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kingston Police. Assistant United States Attorney Francis P. Sempa prosecuted the cases and handled the appeals.
The cases were brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Corning Man Arrested, Charged with Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Kevin Theil, 53, of Corning, NY, was arrested and charged by criminal complaint with receipt of child pornography. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, on November 8, 2016, the FBI met with the Ithaca Police Department and a Cooperating Witness (CW). The CW told officers that through backpage.com, she came come to know a man from Corning, NY who had a sexual interest in children. A cellular telephone number provided by the CW traced back to the defendant. A check of an FBI database determined that Theil worked for a manufacturing company and he attended an FBI Cyber briefing in the State of Kentucky involving his employment. At the briefing, the defendant provided the FBI with his contact information, including his cell number which matched the number provided by the CW.
The CW told officers that the defendant showed her child pornography on his iPad, naked images of young girls, approximately seven or eight years old. In addition, the CW stated that Theil admitted to her that he had previously sexually abused his niece on multiple occasions when she was approximately 14 years old.
The CW further stated that on another occasion, Theil asked her to facilitate a sexual encounter with a minor female. The CW arranged for an 18-year-old friend, who looked much younger, to meet with Theil in a hotel room in Ithaca, NY. The defendant paid the CW $1,200 for the session with the alleged 14-year-old. After the session, Theil contacted the CW and asked that she find a true minor female. In hopes of getting money, the CW fabricated a story that she babysat two sisters, ages eight and 12, and that she could facilitate the defendant having a session with the 12-year-old. The CW told officers she had no intention of providing a minor female because she found it inappropriate but hoped to steal money from Theil when he showed up anticipating the session.
On December 15, 2016, search warrants were executed at the defendant’s residence in Corning, NY and at Theil’s lake house in Hammondsport, NY. Following the searches, a forensic examination of the defendant’s computer revealed 367 images of child pornography on Theil’s laptop.
The defendant made an initial appearance before U.S. Magistrate Judge John W. Feldman and was released.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, the New York State Police, under the direction of Major Richard Allen, and the Steuben County Sheriff’s Department, under the direction of Sheriff James Allard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Convicted felon faces charges for having fentanyl and firearmsRead the Press Release
A man with residences in Akron and Barberton was indicted on firearms and fentanyl charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Anthony J. Board Jr., 33, was indicted on one count of possession with the Intent to distribute fentanyl and one count of being a felon in possession of firearms and ammunition. Board, Jr., age 33, resided at homes in Barberton, and Akron, Ohio.
Akron Police Department Narcotics Unit Detectives along with Drug Enforcement Administration Task Force Officers executed a state search warrant at Board Jr.’s residence in Akron on Dec. 14, 2016 and recovered approximately 25 grams of fentanyl as well as two firearms and a bullet-proof vest, according to court documents.
Barberton Police Narcotics Detectives along with Drug Enforcement Administration Task Force Officers executed a state search warrant the same day at Board Jr.’s residence in Barberton. They recovered two additional firearms, including a semi-automatic rifle, according to court documents.
Board was prohibited from possessing firearms and ammunition because he has several prior felony convictions, including burglary, escape, improper discharge of a firearm and other crimes.
The investigation preceding this indictment was conducted by the Akron Police Department Narcotics Unit, the Barberton Police Department and the Drug Enforcement Administration, Akron, Office. matter is being prosecuted by Assistant United States Attorney Aaron P. Howell.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the United States of America’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
Carson City Man Sentenced to Eight Years for Distribution of MethamphetamineRead the Press Release
RENO, Nev. – A Carson City, Nev., man was sentenced Monday to eight years in prison for distributing methamphetamine, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Saul Cisneros, 33, was sentenced by U.S. District Judge Robert C. Jones, who also ordered Cisneros to 24 months consecutive on his supervised release violation. Cisneros pleaded guilty on Sept. 26, 2016, to conspiracy to distribute at least five grams of actual methamphetamine. He was indicted in a superseding indictment on June 10, 2015. Co-defendant Lisa Rose Jones, 37, of Carson City, pleaded guilty on March 29, 2016, and was sentenced to 18 months in prison.
According to court documents, in April 2015, a DEA confidential source called Cisneros to order an ounce of methamphetamine. They met at an apartment complex in Carson City where Cisneros and Jones directed the confidential source to an apartment. While in the apartment, Cisneros told the confidential source that he only had a half ounce of methamphetamine, and that the other half was on its way, and that the confidential source would need to return to the apartment for it. Jones placed a plastic bag of methamphetamine on the bed and the confidential source put $300 on the bed, which Cisneros took. The bag contained 13.3 grams of actual methamphetamine.
Seven other defendants were charged in federal district court arising out of this coordinated law enforcement investigation into methamphetamine distribution in the Lyon County and Carson City areas of Nevada. Michael Perez, 38, of Dayton, Nev., and Sergio David Perez, 33, of Carson City, Nev., were charged with conspiracy to distribute methamphetamine. Michael Perez was sentenced to 168 months on Aug. 8, 2016, and Sergio David Perez was sentenced to 97 months on Aug. 22, 2016 by U.S. District Judge Robert C. Jones. Juan Alvarez, 40, of Carson City, Nev., and Yuritsi Marquez, 35, of Carson City, Nev., pleaded guilty to possession with intent to distribute at least 50 grams of methamphetamine on November 16, 2016, and is awaiting sentencing. Marquez was sentenced to 366 days in prison on January 31, 2017. Angelo Tello, 31, of Carson City, Nev., and Lorena Tello, 25, Dayton, Nev., the paramours of Michael and Sergio David Perez, pleaded guilty to money laundering relating to the distribution of methamphetamine. Julio Contreras, 26, of Long Beach, CA, pleaded guilty to conspiracy to commit money laundering. Lorena Tello was sentenced to 366 days’ imprisonment. Angelo Tello and Julio Contreras are awaiting sentencing.
This case was a joint investigation by the DEA, Lyon County Sheriff’s Office, Tri-County Narcotics Enforcement Task Force, and the Tri-County Gang Unit; and prosecuted by Assistant U.S. Attorney James E. Keller.
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Canton man indicted on firearms and drug chargesRead the Press Release
A Canton man was indicted on federal drug and firearms charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Eric L. McReynolds, 46, was indicted on four counts of possession with the intent to distribute crack cocaine, one count of being a felon in possession of firearms and ammunition and one count of possession of firearms in furtherance of a drug trafficking offense.
McReynolds possessed crack cocaine, several firearms and other items indicative of drug trafficking on September 15, 2016. was prohibited from possessing firearms and ammunition because he has prior felony convictions for robbery and aggravated robbery, according to the indictment.
The investigation preceding this indictment was conducted by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives. matter is being prosecuted by Assistant United States Attorney Aaron P. Howell.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the United States of America’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
Buffalo Man Arrested on Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Charles Newkirk, 33, of Buffalo NY, was arrested and charged by criminal complaint with conspiracy to possess with intent to distribute heroin and fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan Tokash, who is handling the case, stated that according to complaint, the defendant sold large volumes of heroin in the City of Buffalo. A confidential source made undercover purchases of cocaine from Newkirk on June 25, 2015, and July 7, 2015. Laboratory testing determined the drugs contained heroin and fentanyl.
The defendant made an initial appearance before U.S Magistrate Judge Michael J. Roemer.
The complaint is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.Batesburg-Leesville Man Convicted on Federal Drug ChargesRead the Press Release
Contact Person: William K. Witherspoon (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that John Timothy Cannon, a/k/a “Mr. JT.,” age 63, of Batesburg-Leesville, South Carolina, was convicted Monday by a federal jury in Columbia, of conspiracy to possess with the intent to distribute 500 grams or more of cocaine, a violation of 21 U.S.C. §§ 846, 841(a)(1). Cannon was also convicted of four (4) counts of using a telephone to arrange drug deals, a violation of 21 U.S.C. § 843(b). United States District Judge Joseph F. Anderson, Jr. of Columbia, presided over the trial and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the trial established that in 2011, the Federal Bureau of Investigation began investigating a violent street gang operating in Columbia, SC. They obtained wiretaps on a number of telephones and determined these gang members were involved in selling cocaine and crack cocaine. The FBI then tapped the telephone of the gang’s cocaine suppliers, which ultimately led to a major cocaine distributor in Batesburg, SC. The FBI then tapped the distributor’s telephone and learned that this supplier, starting in 2008, began to supply Cannon with cocaine for resale to local drug dealers. This arrangement continued until the Batesburg distributor was arrested, pled guilty and sentenced to federal prison in 2012. Thereafter, Cannon found another distributor and continued his sale of large amounts of cocaine to persons in Batesburg-Leesville, Columbia and surrounding areas. The evidence presented at trial included wiretap calls on which Cannon was overheard ordering three (3) ounces of cocaine multiple times a week during a sixty (60) day time period of the wiretaps. The evidence also included testimony from persons who purchased cocaine from Cannon.
Ms. Drake stated the maximum penalty for these offenses is Life imprisonment and a fine of $8,000,000.
The case was investigated by the Columbia Violent Gang Task Force, which is comprised of agents of the Federal Bureau of Investigation, South Carolina Law Enforcement Division (SLED), Columbia Police Department, and Richland County Sheriff’s Department. Assistant United States Attorneys William K. Witherspoon and Jane B. Taylor of the Columbia office prosecuted the case.
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Another Albuquerque Resident Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Julian Brown, 22, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws under a plea agreement with the U.S. Attorney’s Office.
Brown was 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.
Brown was arrested on Aug. 10, 2016, on an indictment charging him with distribution of heroin and possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR). According to the indictment, Brown committed the offenses on July 11, 2016, in Bernalillo County, N.M.
During today’s proceedings, Brown pled guilty to Count 2 of the indictment charging him with possession of an unregistered firearm. In entering the guilty plea, Brown admitted that on July 11, 2016, he possessed and sold a weapon made from a shotgun not registered to him in the NFRTR. At sentencing, Brown faces a maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
To date, 25 of the 104 defendants, have entered guilty pleas and one has been sentenced. The remaining defendants 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 Edward Han is prosecuting the case.
Accokeek Felon Exiled to over 7 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Shaka Abdul-Muhaimin, age 31, of Accokeek, Maryland, today to 92 months in prison, followed by three years of supervised release for possession with intent to distribute controlled substances, being a felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to his plea agreement, late on July 9, 2015, Abdul-Muhaimin and another individual were seated in Abdul-Muhaimin’s vehicle at the far end of a restaurant parking lot in Accokeek. Police officers approached the vehicle and saw Abdul-Muhaimin, who was in the driver’s seat, abruptly begin to move around inside the vehicle, and saw the passenger quickly exit the vehicle. Abdul-Muhaimin then jumped out of the vehicle and attempted, unsuccessfully, to get away.
From inside the vehicle and from Abdul-Muhaimin, law enforcement recovered crack and powder cocaine; heroin; ethylone; marijuana; a 9mm semi-automatic pistol loaded with 11 rounds of ammunition; and a digital scale with cocaine residue.
Abdul-Muhaimin had a 2008 felony drug conviction in the District of Columbia and was prohibited from possessing a firearm or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Menaka Kalaskar, who prosecuted the case.
31 January 2017
Woman Sentenced to Prison for Stealing Money from Gila River Scholarship FundRead the Press Release
PHOENIX – On Jan. 30, 2017, U.S. District Judge David C. Campbell sentenced Betty Nora Anderson, 56, a member of the Gila River Indian Community, to 15 months in prison and three years of supervised release for stealing approximately $200,000 from the Gila River Indian Community Scholarship Fund. Anderson had previously pleaded guilty to one count of conspiracy to commit theft from an Indian Tribal Organization.
Anderson stole money from the Gila River Indian Community Scholarship Fund by submitting altered and forged transcripts that made it appear she had completed certain course work and thus remained eligible for financial support. The scheme continued from 2007 through 2010.
“Through deceit, Anderson stole money that would otherwise have gone to deserving members of the Gila River Indian Community. We will vigorously pursue and bring to justice those who would defraud the public,” stated Acting United States Attorney Elizabeth A. Strange.
The investigation in this case was conducted by the Gila River Indian Community Police Department. The prosecution was handled by Kevin M. Rapp, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-01411-DGC
RELEASE NUMBER: 2017-004_Anderson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Woman Pleads Guilty to Wire Fraud in Scheme to Defraud the IRSRead the Press Release
DALLAS — Crystal Burrows appeared in federal court this afternoon and pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to one count of wire fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Burrows faces a maximum statutory penalty of twenty years in federal prison, and a $250,000 fine. She could also be ordered to pay restitution. Sentencing will be set at a later date.
According to documents filed in her case, beginning in 2014, Borrows knowingly and intentionally participated in a scheme to defraud the Internal Revenue Service (IRS). More specifically, Burrows electronically filed tax returns for the tax year 2013 with her EFIN, and for tax years 2014 and 2015 with EFINs of coconspirators, under taxpayers’ names and social security numbers without the taxpayers’ knowledge or consent. In total, Burrows prepared and filed at least 22 fraudulent tax returns using stolen identifying information of tax payers. Burrows also used two stolen social security numbers to establish numerous credit card accounts, a car loan, store accounts, and care credit accounts typically used for medical procedures.
Burrows stipulates that her conduct resulted in at least a $692,184 loss.
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Andrew Wirmani is in charge of the prosecution.
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Vermont Man Sentenced to Fifteen Years in Prison for Eight Bank and Other RobberiesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Matthew T. Martin, 32, of Weathersfield, Vermont, was sentenced today to a prison term of fifteen years, followed by five years of supervised release, and $25,514 in restitution. United States District Court Judge J. Gavin Murtha imposed the sentence in District Court in Brattleboro and noted that he rarely sees sentences of this length but that the circumstances of this case warranted such a result.
Martin had previously pleaded guilty to a Superseding Information that consolidated eight separate robberies into a single case. He was sentenced today on each of the robberies to eight separate prison terms of 180 months, each to run concurrently.
As charged in the Superseding Information, on January 28, 2015, Martin robbed a branch of the Windsor County South Credit Union in Springfield Vermont. During the commission of this robbery, Martin indicated to the teller that he had a gun, although he did not display a firearm. Martin stole $2,596 from the Credit Union in this incident.
On February 7, 2015, Martin robbed a Shell gas station in Ludlow, Vermont. During the commission of this robbery, Martin pointed a firearm at the gas station clerk and made off with approximately $200.
On February 17, 2015, Martin robbed a branch of the Citizens Bank in Springfield, Vermont. During the commission of this robbery, Martin again indicated that he had a gun, although he did not display a firearm. During this incident, Martin wore a fake beard to disguise his identity and managed to steal $5,744 from the bank.
On November 11, 2015, Martin robbed the Greater Falls Pharmacy in Bellows Falls, Vermont, pocketing tablets containing Oxycodone and OxyContin. Again, Martin indicated that he had a gun, although he did not display one.
On December 1, 2015, Martin took his crime spree into New Hampshire, committing an armed robbery of a branch of the Mascoma Savings Bank in Charlestown, New Hampshire. During this robbery, Martin displayed a BB gun that resembled a firearm and twice pointed the weapon at the teller. Martin was able to steal $4,700 during this incident.
On December 4, 2015, Martin committed an armed robbery at a branch of the TD Bank North in Loudon, New Hampshire. Again, Martin displayed a BB gun that resembled a firearm. Martin made off with $3,200 as proceeds of this robbery.
On December 14, 2015, Martin committed an armed robbery of a branch of the People’s United Bank in Brattleboro, Vermont. In instructing the teller to give him all of the money in the cash drawer, Martin brandished a BB gun that resembled a firearm and showed the teller a clay “glob” embedded with a cell phone connected to the clay via black wires that he claimed was a bomb. Martin made off with $3,791 from the bank. During this bank robbery, Martin was disguised as a woman.
A week later, on December 21, 2015, Martin committed an armed robbery of a branch of the Heritage Family Credit Union in Ludlow, Vermont. Again, Martin was armed with a BB gun that resembled a firearm, which he pointed at two tellers and a customer. Martin made off with $4,633 as a result.
In late December 2015, Martin surrendered to law enforcement after the U.S. Marshals Service publicly named him a “Fugitive of the Week.”
The collaborative team that investigated the crimes committed by Martin included federal, state, and local law enforcement agents, including agents from the Federal Bureau of Investigation; the U.S. Marshals Service; the Vermont State Police; the New Hampshire State Police; and the police departments of Brattleboro, Springfield, Ludlow, and Bellows Falls.
In addition to the agents that investigated Martin’s crimes, United States Attorney Eric Miller also thanked law enforcement partners at the U.S. Attorney’s Office in New Hampshire; the Windsor County State’s Attorney’s Office; the Windham County State’s Attorney’s Office; the County Attorney’s Office in Sullivan County, New Hampshire; and the County Attorney’s Office in Merrimack County, New Hampshire, for their cooperation and collaboration.
The United States was represented in this matter by Assistant U.S. Attorneys Kunal Pasricha and Abigail Averbach. Matthew Martin was represented by attorney Jordana Levine.
United States Settles Navy Discrimination and Wrongful Termination LawsuitRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced the United States of America, on behalf of Ray Mabus, Secretary of the Navy, settled the lawsuit Ballard v. Mabus, CV13-00024 (D. Guam). The Plaintiff claimed that the Navy created a hostile work environment because of sexual harassment, age and race discrimination, and retaliated against him for accusing a co-worker, who had worked at the facility for many decades, of sexual harassment and another co-worker of age and race discrimination. The Navy’s internal investigation found that the allegations against the co- workers were false and that no sexual harassment occurred. The Navy also determined that Plaintiff’s substandard work performance warranted termination of his employment during the probationary period. Plaintiff worked for the Navy for a total of approximately four months.
After a Summary Judgment hearing before the District Court, Plaintiff’s claim of a hostile work environment based on sexual harassment and age and race discrimination was dismissed with prejudice. Because of the short time period between Plaintiff’s allegations against his co-workers and his dismissal by the Navy, the issue of possible retaliation remained to be resolved by a trial. Recognizing that trial would require the United States to bring in witnesses who are now serving around the world, the United States entered into a settlement agreement on January 28, 2017, to resolve the one remaining retaliation claim. Settlement negotiations were assisted by Magistrate Judge Joaquin V.E. Manibusan, Jr., at the U.S. District Court. The settlement resolves all claims by the Plaintiff.
The case was handled by Assistant U.S. Attorney Mikel Schwab.
Two Mexican Nationals Indicted for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Mexican nationals were indicted by a federal grand jury today for their roles in a conspiracy to distribute more than five kilograms of methamphetamine.
Jose Adrian Medina-Herrera, 21, and Jose Farias-Valdovinos, 41, both citizens of Mexico, were charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against both defendants on Jan. 12, 2017.
The federal indictment alleges that Medina-Herrera and Farias-Valdovinos participated in a conspiracy to distribute methamphetamine on Jan. 11, 2017. They are also charged with aiding and abetting each other to possess methamphetamine with the intent to distribute.
According to an affidavit filed in support of the original criminal complaint, Medina-Herrera was arrested at a local bus station on Jan. 11, 2017. Medina-Herrera, who told officers he originally had traveled from California to St. Louis, Mo., had a one-way ticket from St. Louis to Kansas City, Mo. A law enforcement officer searched his suitcase, the affidavit says, and discovered 11 bundles wrapped in brown packing tape that contained a total of 5.352 kilograms of methamphetamine.
Farias-Valdovinos was arrested when he arrived at the bus station to pick up Medina-Herrera.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
Two Elkins residents convicted for methamphetamine chargesRead the Press Release
ELKINS, WEST VIRGINIA – Two Elkins residents pled guilty to methamphetamine charges in federal court today, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Christina Crites, 46, of Elkins, West Virginia, pled guilty to one count of “Distribution of Methamphetamine in Proximity of a Protected Location.” She faces up to forty years in prison and a fine of up to $2,000,000.
Joseph Muster, 28, of Elkins, West Virginia, pled guilty to one count of “Distribution of Methamphetamine.” 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 Stephen D. Warner prosecuted the cases on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Two Charged with Distributing Heroin Involved in Southeastern Connecticut OverdosesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the investigation of two drug overdose deaths in May 2016 has resulted in federal heroin distribution charges against NESTOR SANTANA, also known as “Beans,” 29, of New London, and JAMES BUTLER, 23, of Montville.
The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
SANTANA and BUTLER were arrested today on federal criminal complaints charging each with possession with the intent to distribute, and distribution of, heroin. They appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and were ordered detained. The charge carries a maximum term of imprisonment of 20 years.
As alleged in court documents and statements made in court, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of Narcan (Naloxone), which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
The investigation revealed that Ramon Gomez, also known as “B.I.,” who knew the victim was under the age of 18, brought the victim to the motel to engage in prostitution. On the morning of May 28, 2016, Gomez sold a quantity of heroin to another individual who then distributed the heroin to the victim. It is alleged that SANTANA supplied Gomez with the heroin that caused the death of the victim.
On May 31, 2016, members of the Montville Police Department responded to an apartment on Route 32 for an “untimely death” investigation. Upon arrival, officers found a deceased 34-year-old female lying face down on the bathroom floor.
The Connecticut’s Office of the Chief Medical Examiner subsequently determined the cause of the 34-year-old female’s death to be “Acute Ethanol and Fentanyl Intoxication.”
It is alleged that the victim was supplied with heroin/fentanyl by BUTLER, who in turn was supplied by Gomez, who in turn was supplied by SANTANA.
In August and September 2016, investigators made controlled purchases of heroin from SANTANA. SANTANA was arrested on state charges on September 29, 2016. A search of his residence at the time of his arrest revealed an additional quantity of heroin and items used to process and package narcotics.
Gomez, 41, of Uncasville, has pleaded guilty to federal sex trafficking of a minor and heroin distribution offenses. He awaits sentencing.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Drug Enforcement Administration, Connecticut State Police, Groton Police Department, Montville Police Department, New London Police Department, Statewide Narcotics Task Force – East, and the Regional Community Enhancement Task Force.
This matter is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Two Camp Street Gang Members Indicted on Drug ChargesRead 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 a federal grand jury has returned separate indictments charging Camp Street Gang Members, Mario McGee, 36, and his brother, Tramell McGee, 34, both of Buffalo, NY, with possession with intent to distribute and distribution of cocaine. The charge carries a maximum penalty of 20 years and a $1,000,000 fine.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that the defendants are members of the Camp Street Gang which operates in the Camp Street area of the City of Buffalo. Gang members are believed to be responsible for the distribution of illegal narcotics including cocaine. According to the indictments, Mario and Tramell McGee distributed cocaine between November 2015 and May 2016.
The defendants were arraigned this afternoon before U.S. magistrate Judge Michael J. Roemer and are being held pending detention hearings scheduled for February 3, 2017, at 11:30 a.m., and February 6, 2017, at 11:00 a.m., respectively.
The indictments are the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Three Individuals Arrested and Charged in South Dakota Fraudulent Medical Device SchemeRead the Press Release
The Justice Department, in conjunction with the U.S. Postal Inspection Service, announced today that three individuals have been arrested on charges related to their involvement in a scheme to defraud consumers with regard to a medical device that they marketed as a treatment for over 200 different diseases and disorders, and for violating a judicial order that was previously imposed after this scheme was originally uncovered.
Over the weekend, U.S. Postal Inspectors arrested Rapid City, South Dakota residents Robert “Larry” Lytle, 81, and Fredretta L. Eason, 76, and Canada resident Irina Kossovskaia, 62, after the three were indicted by a federal grand jury in Rapid City, South Dakota. Lytle and Kossovskaia are charged with mail fraud, wire fraud, conspiracy, contempt, and obstruction of government proceedings. Eason is charged with criminal contempt. A fourth individual, Ronald D. Weir, 38, also of Rapid City, agreed to plead guilty on Monday to related conspiracy charges contained in a separate criminal information that was filed with the U.S. District Court for the District of South Dakota. These charges follow a separate civil enforcement action brought by the United States against Lytle and his QLaser businesses in late 2014.
As alleged in the charging documents and in filings from a prior civil case, Lytle, Kossovskaia, and Weir marketed and distributed “QLasers,” a collection of hand-held light-emitting devices that they falsely claimed could safely and effectively treat a panoply of medical conditions at home, including cancer, cardiac arrest, HIV, diabetes, and even Lou Gherig’s disease. The use of the QLaser to treat such serious conditions is unsupported by any published clinical, scientific studies, and not approved by the U.S. Food and Drug Administration (FDA). The defendants sold the devices alone and in combination packages mostly to elderly consumers for prices that ranged from approximately $4,000 to $13,000. To convince consumers of their claim that the device was able to “help almost every health problem ever experienced by a human being,” promotional material for the QLaser referred to the device’s inventor as “Dr. Larry Lytle, D.D.S., Ph.D.” to create the false impression that he was especially knowledgeable, scientifically competent, credible and authoritative. In reality, Lytle’s license to practice dentistry was permanently revoked for engaging in fraud and material deception and his claimed “Ph.D.” in “nutrition” is not legitimate.
In 2015, during the civil case against Lytle, the federal court concluded that the QLaser’s labeling was not only false and misleading, but also that using the device could actually be dangerous when used as Lytle directed. As a result, the court ordered Lytle and anyone acting in concert and participation with him to cease distributing the devices. The defendants’ disobedience of the court’s orders is the basis of the criminal contempt charges contained in the indictment. In addition to criminal contempt, mail fraud, and wire fraud, the grand jury also charged Lytle with obstruction of the FDA by making false statements and providing false documents during the agency’s inspections of his QLaser business.
In accordance with a plea agreement with Weir, the government charged him in a criminal information with one count of conspiracy to introduce misbranded medical devices into interstate commerce with the intent to defraud and mislead. The information accuses Weir of conspiring with Lytle and others to market and distribute QLasers through a company called “Laser Wellness.”
“As the indictment alleges, these individuals targeted vulnerable citizens for years, preying on weaknesses brought about by chronic illnesses and fear of death—all to enrich themselves, and even where the scheme entailed violating a direct court order to stop,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This prosecution further demonstrates the Department’s ongoing commitment to protecting older Americans from fraud and abuse.”
“This indictment represents the government’s commitment to protecting consumers from unethical and predatory businesses,” said U.S. Attorney Randolph J. Seiler of the District of South Dakota. “In cases like this, prosecutorial measures are the only recourse when a business repeatedly demonstrates blatant disregard for the law, and potentially jeopardizes the health and safety of its consumers.”
“The U.S. Postal Inspection Service is committed to ensuring that these types of predatory schemes are investigated aggressively,” said U.S. Postal Inspector in Charge Craig Goldberg of the Denver Division, which covers multiple states including South Dakota. “It is imperative that we continue to protect those vulnerable individuals in our society who unknowingly fall prey to these schemes. We cannot allow fraudsters to utilize the U.S. mail to further their schemes.”
In addition to fines, each count of mail and wire fraud in the indictment carries a statutory maximum sentence of 20 years’ imprisonment. Each of the conspiracy and obstruction counts carries a maximum sentence of five years imprisonment. There is no statutory maximum penalty for criminal contempt.
The criminal investigation has been conducted by the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorney Ross S. Goldstein of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Ted McBride of the U.S. Attorney’s Office for the District of South Dakota.
The details contained in indictments and informations are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Three Cleveland men sentenced to prison for more than a decade for armed robberies in Solon, Bath and North OlmstedRead the Press Release
Three Cleveland men were sentenced to prison for more than a decade for committing armed robberies in Solon, Bath and North Olmsted, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division.
Stephone D. Tillman, 25, Matthew S. Bowen, Jr., 25, and Christopher R. Jones, 26, were previously found guilty of multiple counts of interfering with interstate commerce by means of robbery and brandishing firearms during a crime of violence. Tillman was found guilty of being a felon in possession of a firearm.
Tillman was sentenced to 20 years in prison.
Bowen was sentenced to nearly 13 years in prison.
Jones was sentenced to nearly 11 years in prison.
“These men deserve to be locked up for a long time after using loaded guns to rob hard-working people,” Rendon said.
“There is no place in our society for those who use firearms for illegal purposes,” Velinor said. “The cooperative efforts between ATF and the Solon, North Olmsted, and Bath Police Departments are a positive example that we have more impact when we work together to bring violent criminals to justice.”
Tillman, Bowen, and Jones robbed the Circle K, located at 29605 Aurora Road, in Solon, on September 15, 2015.
On October 3, 2015, Bowen and Tillman robbed the Zip Thru drive-through store located at 30781 Lorain Road, in North Olmsted.
On October 8, 2015, all three defendants robbed the Circle K, located at 791 Cleveland-Massillon Road, in Bath, according to court documents.
Each of the robberies involved the use of a firearm, according to court documents.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in conjunction with the Solon, North Olmsted, and Bath Police Departments. The case is being prosecuted by Assistant United States Attorneys Kevin R. Filiatraut and Kelly L. Galvin.
Ten Area Men Charged with Federal Dog-Fighting OffensesRead the Press Release
ROCK ISLAND, Ill. – Federal and local law enforcement officers made arrests this morning of area men charged by indictment with conspiracy to sponsor and participate in a dog-fighting venture and related charges. The indictment, returned by the grand jury last week, had remained sealed pending the arrests and initial court appearances. The defendants are making their initial appearances in federal court in Rock Island.
Those charged in the conspiracy include the following: Demarlo A. McCoy, 29; Ryan M. Hickman, 42; Andre Keywan Lidell, 40; Algerron Lee Goldsmith, 46; Stantrel Vontrez Knight, 29; Simmeon Terrell Hall, 28; Sherrick Cornelius Houston, 43; Willie Earl Jackson, 34, all of Rock Island, Ill.; and, Terrell Onterial McDuffy, 43, of Davenport, Iowa. In addition, the indictment charges Jaquan Leontae Jones, 27, also of Rock Island, with a single misdemeanor count of knowingly attending a dog fight.
Acting U.S. Attorney Patrick D. Hansen, FBI Special Agent in Charge Sean M. Cox, Springfield Field Office, and Rock Island Police Chief Jeffrey R. VenHuizen announced the charges today. The investigation was conducted by the FBI and the Rock Island Police Department. Assistant U.S. Attorneys Don Allegro and Ryan Finlen are prosecuting the case.
The indictment charges the defendants with conspiring from 2011 through April 14, 2016, to sponsor pit bull-type dogs in fights as well as buying, selling, training, and possessing dogs to participate in such fights. According to the indictment, the defendants allegedly scheduled and conducted dog fights for sport and entertainment and wagered money on fight results.
The defendants allegedly discussed and disseminated information, including video recordings of dog fights, to establish the fighting reputations of specific dogs, to maximize the dogs’ values for breeding fighting dogs, and to maximize the defendants’ reputations as fighting-dog trainers and breeders.
In a separate, but related matter, the government filed a civil complaint in April 2016, seeking forfeiture of approximately 64 dogs that were seized in the execution of search warrants on April 14, 2016. According to the civil complaint, the dogs were involved in and used to commit or facilitate the alleged dog-fighting venture.
To date, pursuant to a court order, 27 of the previously seized dogs have been forfeited to the government. On Jan. 26, 2017, the court granted the government’s motion for default pertaining to 24 additional dogs. Two dogs have been euthanized pursuant to a court order; five were voluntarily surrendered; and three dogs have died. There are three dogs whose claims remain unresolved, including two for which a motion to strike is currently pending.
Law enforcement agencies that coordinated and participated in making today’s arrests include: the Rock Island Police Department; FBI; Rock Island County Sheriff’s Office; DEA; Scott County, Iowa Sheriff’s Office; the Quad City Metropolitan Enforcement Team (QCMEG); and the U.S. Marshals Service.
Representatives of the American Society for the Prevention of Cruelty of Animals (ASPCA) were available today to assist in the event any additional dogs were seized in the execution of the arrest warrants. ASPCA continues to assist in the care of the dogs seized by law enforcement in April 2016, during the execution of search warrants.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
If convicted, the maximum statutory penalty for each offense charged is prescribed by Congress and is provided here for informational purposes, as sentencing is determined by the court based on
the advisory Sentencing Guidelines and other statutory factors. The maximum statutory penalty is up to five years in prison and fines of up to $250,000 for each count charged of conspiracy to sponsor/exhibit pit bulls in an animal fighting venture; sponsoring/exhibiting an animal in an AFV; possessing an animal for purposes of having the animal participate in an AFV; and transporting an animal for purposes of having the animal participate in an AFV. For the misdemeanor charge of knowingly attending an AFV, the penalty is up to one year in prison. The table below lists the defendants and specific counts charged in the indictment.
Defendant
Charge
Demarlo A. McCoy, 29
400 block 7th St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Sponsoring/exhibiting an animal in an AFV (4 counts)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Ryan M. Hickman, 42
500 block 14th Ave.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Andre Keywan Lidell, 40
800 block 15th Ave.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Sponsoring/exhibiting an animal in an AFV (2 counts)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Algerron Lee Goldsmith, 46
1200 block 14th St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Defendant
Charge
Stantrel Vontrez Knight, 29
500 block 6th St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Sponsoring/exhibiting an animal in an AFV (1 count)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Terrell Onterial McDuffy, 43
1800 block 8th Ave.
Davenport, Iowa
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Simmeon Terrell Hall, 28
800 block 21st St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Sponsoring/exhibiting an animal in an AFV (3 counts)
Transporting an animal for purposes of having the animal participate in an AFV (1 count)
Sherrick Cornelius Houston, 43
1600 block 5th St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Possessing an animal for purposes of having the animal participate in an AFV (1 count)
Willie Earl Jackson, 34
1500 block 9th St.
Rock Island, Ill.
Conspiracy to sponsor/exhibit pit bulls in an animal fighting venture (1 count)
Sponsoring/exhibiting an animal in an AFV (1 count)
Jaquan Leontae Jones, 27
1000 block 10th Ave.
Rock Island, Ill.
Knowingly attending an animal fighting venture (1 count)
Teller Supervisor Convicted of Concealing Theft of Bank FundsRead the Press Release
McALLEN, Texas – A McAllen woman has entered a guilty plea to falsifying bank records in order to conceal theft of $1.25 million in bank funds, announced U.S. Attorney Kenneth Magidson.
Jill Marie Myers, 42, was employed as the teller supervisor at the Edinburg branch of First National Bank, later PlainsCapital Bank. Among her duties, she was responsible for verifying the amount of U.S. currency maintained by the bank in its various “cash vaults” and then entering those amounts at the end of each day into the general ledger of the bank.
An investigation into these records revealed that from approximately June 2004 until June 2014, U.S. currency belonging to the bank began to disappear from the vault at an average of $10,000 per month. Myers admitted she created fraudulent entries in bank records in order to conceal theft of $1.25 million in U.S. currency.
The scheme was uncovered in June 2014 after PlainsCapital Bank acquired the Edinburg location of First National Bank.
U.S. District Judge Micaela Alvarez accepted the plea today and has set sentencing for April 26, 2017. At that time, Myers faces up to 30 years in federal prison and a possible $1 million fine. She has also agreed to pay restitution. Myers was permitted to remain on bond pending her sentencing hearing.
The FBI conducted the investigation with the assistance of the Federal Deposit Insurance Corporation. Assistant U.S. Attorney Robert L. Guerra Jr. is prosecuting the case.
Three Individuals Arrested and Charged in South Dakota Fraudulent Medical Device SchemeRead the Press Release
WASHINGTON - The Justice Department, in conjunction with the U.S. Postal Inspection Service, announced today that three individuals have been arrested on charges related to their involvement in a scheme to defraud consumers with regard to a medical device that they marketed as a treatment for over 200 different diseases and disorders, and for violating a judicial order that was previously imposed after this scheme was originally uncovered.
Over the weekend, U.S. Postal Inspectors arrested Rapid City, South Dakota residents Robert “Larry” Lytle, 81, and Fredretta L. Eason, 76, and Canada resident Irina Kossovskaia, 62, after the three were indicted by a federal grand jury in Rapid City, South Dakota. Lytle and Kossovskaia are charged with mail fraud, wire fraud, conspiracy, contempt, and obstruction of government proceedings. Eason is charged with criminal contempt. A fourth individual, Ronald D. Weir, 38, also of Rapid City, agreed to plead guilty on Monday to related conspiracy charges contained in a separate criminal information that was filed with the U.S. District Court for the District of South Dakota. These charges follow a separate civil enforcement action brought by the United States against Lytle and his QLaser businesses in late 2014.
As alleged in the charging documents and in filings from a prior civil case, Lytle, Kossovskaia, and Weir marketed and distributed “QLasers,” a collection of hand-held light-emitting devices that they falsely claimed could safely and effectively treat a panoply of medical conditions at home, including cancer, cardiac arrest, HIV, diabetes, and even Lou Gherig’s disease. The use of the QLaser to treat such serious conditions is unsupported by any published clinical, scientific studies, and not approved by the U.S. Food and Drug Administration (FDA). The defendants sold the devices alone and in combination packages mostly to elderly consumers for prices that ranged from approximately $4,000 to $13,000. To convince consumers of their claim that the device was able to “help almost every health problem ever experienced by a human being,” promotional material for the QLaser referred to the device’s inventor as “Dr. Larry Lytle, D.D.S., Ph.D.” to create the false impression that he was especially knowledgeable, scientifically competent, credible and authoritative. In reality, Lytle’s license to practice dentistry was permanently revoked for engaging in fraud and material deception and his claimed “Ph.D.” in “nutrition” is not legitimate.
In 2015, during the civil case against Lytle, the federal court concluded that the QLaser’s labeling was not only false and misleading, but also that using the device could actually be dangerous when used as Lytle directed. As a result, the court ordered Lytle and anyone acting in concert and participation with him to cease distributing the devices. The defendants’ disobedience of the court’s orders is the basis of the criminal contempt charges contained in the indictment. In addition to criminal contempt, mail fraud, and wire fraud, the grand jury also charged Lytle with obstruction of the FDA by making false statements and providing false documents during the agency’s inspections of his QLaser business.
In accordance with a plea agreement with Weir, the government charged him in a criminal information with one count of conspiracy to introduce misbranded medical devices into interstate commerce with the intent to defraud and mislead. The information accuses Weir of conspiring with Lytle and others to market and distribute QLasers through a company called “Laser Wellness.”
“As the indictment alleges, these individuals targeted vulnerable citizens for years, preying on weaknesses brought about by chronic illnesses and fear of death—all to enrich themselves, and even where the scheme entailed violating a direct court order to stop,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This prosecution further demonstrates the Department’s ongoing commitment to protecting older Americans from fraud and abuse.”
“This indictment represents the government’s commitment to protecting consumers from unethical and predatory businesses,” said U.S. Attorney Randolph J. Seiler of the District of South Dakota. “In cases like this, prosecutorial measures are the only recourse when a business repeatedly demonstrates blatant disregard for the law, and potentially jeopardizes the health and safety of its consumers.”
“The U.S. Postal Inspection Service is committed to ensuring that these types of predatory schemes are investigated aggressively,” said U.S. Postal Inspector in Charge Craig Goldberg of the Denver Division, which covers multiple states including South Dakota. “It is imperative that we continue to protect those vulnerable individuals in our society who unknowingly fall prey to these schemes. We cannot allow fraudsters to utilize the U.S. mail to further their schemes.”
In addition to fines, each count of mail and wire fraud in the indictment carries a statutory maximum sentence of 20 years’ imprisonment. Each of the conspiracy and obstruction counts carries a maximum sentence of five years imprisonment. There is no statutory maximum penalty for criminal contempt.
The criminal investigation has been conducted by the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorney Ross S. Goldstein of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Ted McBride of the U.S. Attorney’s Office for the District of South Dakota.
The details contained in indictments and informations are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
NOTE: Relevant court documents are available at the following links: Indictment, Weir Criminal Information, Weir Plea Agreement and Weir Factual Basis Statement.
St. Paul Man Sentenced for Making False StatementRead the Press Release
Abingdon, VIRGINIA – A St. Paul, Virginia man, who lied about his employment status in order to continue to collect disability benefits from the Railroad Retirement Board, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Ronald W. David, 58, of St. Paul, Va., previously pled guilty to one count of making materially false, fictitious and fraudulent statements. Today in District Court, David was sentenced to two years of probation to include six months of home confinement. David paid restitution to the Railroad Retirement Board in the amount of $70,206.
According to evidence presented at previous hearings by Special Assistant United States Attorney Kathleen Carnell, on July 25, 2015, David knowingly made a willfully false statement and representation to the Railroad Retirement Board by failing to report his self-employment with Copperhead Road Properties LLC. As part of the defendant’s eligibility for disability benefits, he was required to report all information regarding employment to the Railroad Retirement Board.
The investigation of the case was conducted by Special Agent Patrick Fletcher of the Office of Inspector General U.S. Railroad Retirement Board. Special Assistant United States Attorney Kathleen Carnell prosecuted the case for the United States.
St. Maries Man Pleads Guilty to Federal Drug ChargeRead the Press Release
COEUR D’ALENE – Darrin Craig Dahl, 43, of St. Maries, Idaho, pleaded guilty today to possession with intent to distribute 50 grams or more of methamphetamine, U.S. Attorney Wendy J. Olson announced. Dahl was indicted by a federal grand Jury in Coeur d'Alene on August 16, 2016.
According to the plea agreement, Dahl admitted that on June 12, 2016, he was driving erratically on U.S. 95 in Benewah county. A Benewah County Sheriff's deputy and a Coeur d'Alene Tribal Police officer tried to pull him over when Dahl jumped from his vehicle and tried to flee. He was arrested and found in possession of over 50 grams of methamphetamine, digital scales, baggies and cash. As part of the plea agreement, Dahl agreed to forfeit $4,000 in drug proceeds. Dahl also admitted that he was subject to a sentencing enhancement due to his previous drug conviction from Nez Perce County, Idaho in 2014.
The charge of possession with intent to distribute with the sentencing enhancement is punishable by at least 10 years and up to life in federal prison, a maximum fine of $8,000,000, and at least 8 years but up to life of supervised release.
Sentencing is set for April 25, 2017, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
“This demonstrates why it is critically important that there be good communication between local and tribal law enforcement,” Olson said. “Only by all law enforcement, state, county, tribal, city and federal working together can we do what we are charged to do, keep our communities safe.”
The case was investigated by the Benewah County Sheriff’s Office, Coeur d’Alene Tribal Police and Bureau of Indian Affairs, Drug Enforcement Unit.
St. Francis Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, 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.
Ennors Quick Bear, age 28, was sentenced to 15 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Quick Bear was indicted by a federal grand jury on October 12, 2016. He pled guilty on November 14, 2016.
Quick Bear was convicted of Sexual Abuse of a Minor in federal court in September 2012. 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 June 2016, Bear registered with an address in St. Francis. On August 9, 2016, Bear moved to a different address in St. Francis, but did not update his registration. Bear was on federal supervised release at the time and a warrant was issued for his arrest. On September 15, 2016, Bear was arrested at a house in St. Francis without incident. Bear did not update his sex offender registration between August 12, 2016, and September 15, 2016, as required by law.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Quick Bear was immediately turned over to the custody of the U.S. Marshals Service.
Spanish Woman Admits Illegal Re-entryRead the Press Release
SYRACUSE, NEW YORK – Maria Martinez a/k/a Maria Josefa Munagorri Diaz, age 49, of Madrid, Spain, pled guilty yesterday to attempting to illegally re-enter the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
Martinez was convicted of conspiracy to distribute cocaine in the Northern District of Ohio in 2002, and after serving 32 months in prison, was deported. Because of her conviction, Martinez is not allowed to enter the United States. As part of her guilty plea yesterday, Martinez admitted that on August 8, 2016, she presented herself at the Champlain Port of Entry for admission to the United States and presented a passport in the name of “Maria Josefa Munagorri Diaz.” A fingerprint scan of Martinez resulted in the discovery of her arrest record and prior deportation.
As a result of her conviction, Martinez faces up to 20 years in prison and a fine of up to $250,000 when she is sentenced by Senior U.S. District Judge Norman A. Mordue on May 30, 2017. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by United States Customs and Border Protection and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Southern District of Georgia Collects over $19 Million in Civil, Criminal and Asset Forfeiture Cases in 2016Read the Press Release
SAVANNAH, GA - U.S. Attorney Edward Tarver announced today that the Southern District of Georgia collected over $19.4 million in civil, criminal and asset forfeiture actions during the 2016 calendar year. Of this amount, $15,694,972.37 was collected in affirmative civil enforcement actions; $2,798,814.88 was collected in criminal actions; and, $949,712.44 in assets were forfeited.
U.S. Attorney Tarver stated, “The amounts of money collected in criminal, civil and asset forfeiture actions by the men and women of the United States Attorney’s Office in 2016 are enough to pay this Office’s yearly budget several times over. This Office earns its keep and then some.”
The U.S. Attorneys’ Offices, along with the Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
For additional questions, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Smuggler Gets Enhanced Sentence for Raping Undocumented Honduran AlienRead the Press Release
McALLEN, Texas – A 30-year-old Mexican national has been ordered to federal prison for harboring undocumented aliens, announced U.S. Attorney Kenneth Magidson. Adan Hernandez-Nunez pleaded guilty Sept. 29, 2016.
Today, U.S. District Judge Micaela Alvarez sentenced Hernandez-Nunez to 50 months imprisonment. The sentence was enhanced because he raped one of the undocumented aliens. Upon imposing the sentence, the court noted that the sentence was warranted due to the rape and the harm that Hernandez-Nunez put these individuals in by engaging in this crime.
From June 7 to July 14, 2016, Hernandez-Nunez harbored undocumented aliens in a residence in Palmhurst. During this time, he sexually assaulted one undocumented alien and threatened to kill her if she reported the assault to anyone.
On July 15, 2016, an undocumented Honduran alien advised Border Patrol agents that another female undocumented alien had previously escaped from the same stash house. The victim further advised agents that Hernandez-Nunez had accused her of encouraging the female undocumented alien to escape and threatened her, saying she “was going to pay for it.” Subsequently, on July 11, 2016, Hernandez-Nunez raped the undocumented Honduran alien.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol, Immigrations and Customs Enforcement’s Homeland Security Investigations and the Hidalgo County Sheriff’s Office conducted the investigation.
Assistant U.S. Attorneys Alex Benavides and Jimmy Leo prosecuted the case.
Shiloh Man Sentenced to over 12 Years in Prison for Robbing Gas Station Twice. Case Was Brought as Part of the United States Attorney's Armed Robbery InitiativeRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Michael L. Jackson, III, 21, of Shiloh, Illinois, was sentenced today in the United States District Court for the Southern District of Illinois to 148 months in federal prison, 5 years of supervised release, and was ordered to pay a $300 special assessment and $917 in restitution for charges stemming from two armed robberies which occurred at Midwest Petroleum in Shiloh in December of 2011 and March of 2014.
Evidence at trial showed that on December 21, 2011, Jackson entered Midwest Petroleum located at 1551 Hartman Lane wielding a knife and demanded money from the clerk. He was wearing a ski mask which covered his entire face, and the clerk was unable to make any kind of identification. He fled southbound on foot and discarded the clothing and ski mask he wore during the robbery in a field adjacent to Midwest Petroleum. On March 13, 2014, Jackson again entered Midwest Petroleum, brandished a firearm, and demanded money and Newport cigarettes from the clerk. He again was wearing a ski mask which covered his entire face, and the clerk was unable to make any kind of identification. He fled southbound on foot and discarded the clothing and ski mask he wore during the robbery in the same field adjacent to Midwest Petroleum. Investigators from the Shiloh Police Department found the clothing after each robbery and collected it as evidence.
In listening to the surveillance videos, Shiloh investigators believed the robber was Jackson based upon the voice. The clothes worn and discarded in the field from both robberies were submitted to the Illinois State Police Crime Laboratory for DNA testing, and Jackson’s DNA was found on all of the clothing tested.
The investigation was conducted by the Shiloh Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Laura V. Reppert and Special Assistant United States Attorney Emily Wasserman.
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Seven Sentenced in $6 Million Health Care Fraud SchemeRead the Press Release
HOUSTON – The final seven of eight convicted in a $6 million fraudulent Medicare billing scheme have been ordered to federal prison, announced U.S. Attorney Kenneth Magidson.
A Houston federal jury has returned guilty verdicts June 28, 2016, against Giam Nguyen, D.O.,47, of Houston; Benjamin Martinez, M.D., 35, of Dallas; Donovan Simmons, M.D., 43, of Austin; and Anna Bagoumian, 44, of Glendale, California, following an eight-day trial and approximately 13 hours of deliberation. Zaven Pogosyan, 38, Edvard Shakhbazyan, 41, and Seryan Mirzakhanyan, 32, all of Glendale, California; and Frank Montgomery, 67, of Houston; pleaded guilty prior to trial.
At a hearing that concluded late yesterday, U.S. District Judge Lynn N. Hughes handed Nguyen, Edvard Shakhbazyan and Pogosyan all sentences of 87 months in prison and ordered they pay restitution in the amount of $3.3 million. Martinez, Montgomery and Simmons were ordered to serve respective sentences of 28, 17 and 15 months, while Bagoumian will serve a 51-month-term of imprisonment. All were also ordered to pay varying terms of restitution ranging from $6,200 to $2.6 million.
Seryan Mirzakhanyan, 32, was sentenced earlier this month to a 28-month-term of imprisonment and ordered to pay restitution of $1.48 million.
The scheme involved fraudulent billing for diagnostic testing done at three different clinics from September 2008 to May 2010. Patients were paid to come to the clinics, and the clinics then billed for tests that were either not performed or not medically necessary.
Pogosyan and Edvard Shakhbazyan were the former owners of medical clinics located at 2110 Jefferson, 2112 Pease and 6892 Southwest Freeway, Suite 2A, in Houston. Both admitted they opened the three clinics with the intention to defraud Medicare. The majority of the diagnostic tests allegedly performed there were either not done or not medically necessary. Further, the medical equipment, patient files and doctors were all there only to make it appear legitimate. The men also admitted hiring doctors for that purpose and that they paid marketers to bring patients to the fraudulent clinics.
Pogosyan hired Nguyen, who was the only doctor working at the clinics. Pogosyan also hired Martinez and Simmons to travel to Houston once a month to review patient files at the clinic located on Pease Street.
Patients were brought to the clinics by recruiters/marketers like Montgomery who were paid for each patient they delivered. Seryan Mirzakhanyan and Edvard Shakhbazyan paid the marketers for the patients as did Pogosyan and Bagoumian. Mirzakhanyan and Montgomery testified at trial about receiving the cash payments. The court also heard that Bagoumian participated in shredding all of the patient and business records of the Jefferson clinic.
Some of the Medicare beneficiaries also testified as to being paid approximately $100 to go to the clinics. They had primary care physicians, but they reported that they were not referred to the clinics by their physicians nor did they receive any of the test results.
During trial, a law enforcement agent testified about reviewing patient files seized during the searches of the Pease and Southwest Freeway clinics. The jury heard that 730 of the 1229 patients reported their chief complaint as back pain. Nevertheless, those patients were given ultrasounds of their kidneys, abdomens, thyroids, carotid arteries as well as allergy tests and anorectal tests. His testimony also revealed that not one of the files contained a plan of treatment or any indication that the test results were discussed with the patient.
Further, an expert witness told the jury that the anorectal manometry and EMG of the anal or urethral sphincter test results in the patient files were physiologically impossible and therefore could not have been done. He also said there was no medical justification in any of the files to do either of the tests.
The court also heard that Simmons had admitted being paid $40,000 for reviewing 20-30 patient files in less than four hours. Bagoumian received checks totaling $183,000 and cashed every one of them, according to testimony.
With the exception of Bagoumian and Montgomery, who were ordered into custody for violating the terms of their pre-trial release, all had been on bond. Nguyen was taken into custody following the sentencing where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The remaining defendants were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Multiple agencies conducted the investigation to include The Texas Attorney General’s Office – Medicaid Fraud Control Unit, IRS - Criminal Investigation, FBI, Department of Health and Human Services - Office of Inspector General. Assistant U.S. Attorneys Al Balboni and Rodolfo Ramirez prosecuted the case.
Scranton Man Charged with Possessing and Distributing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shawn Howells, age 43, of Scranton, Pennsylvania, was indicted by a federal grand jury with possessing and distributing child pornography.
According to United States Attorney Bruce D. Brandler, the indictment alleges that between November 29, 2016 and January 20, 2017, Shawn Howells used the internet to view a minor engaging in illegal sexual activity, and during that same time period transported child pornography by any means, including by computer.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Evan Gotlob is prosecuting the case.
If convicted, Howells faces a mandatory minimum sentence of 5 years in prison and a potential maximum sentence of 20 years in prison for the possessing and distributing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
If convicted, Howells faces a mandatory minimum sentence of five years and a maximum penalty under federal law for this offense is 20 years’ 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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