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6 July 2015
Three Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – A federal grand jury returned a superseding indictment today charging the following defendants, all of Maryland, in connection with a conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:
Aldair Garcia-Miranda, a/k/a “Callado” and “Poseido,” age 21, of Wheaton,
Selvin Raymundo Salazar, a/k/a “Little” and “Inquieto,” age 23, of Wheaton, and
Raul Ernesto Landaverde-Giron, a/k/a “Decente” and “Humilde,” age 25, of Silver Spring.
All of the defendants are in custody.
“Transnational criminal gangs inflict violence and fear upon our community,” said Ivan Arvelo, Acting Special Agent in Charge Baltimore, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations. “Enforcement of gang-related crimes is a high priority for our agency. We appreciate opportunities to collaborate with our law enforcement colleagues to bring these violent criminals to justice.”
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Acting Chief Patrick Grossman of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland, with a presence in Frederick. The defendants were members of the Normandie Clique of MS-13. For a period of time beginning at least in late 2013 or early 2014, Garcia-Miranda and Salazar served as leaders of the Normandie Clique in the area of Prince George’s County and Montgomery County.
The four count indictment alleges that from at least prior to 2012 through 2014, the defendants were members and associates of MS-13 who planned and committed murders, attempted murders and extortion.
More specifically, on February 28, 2013, Salazar and other MS-13 members allegedly shot and killed an individual suspected of being a member of a rival gang.
The indictment further alleges that on November 30, 2013, MS-13 members, including Garcia-Miranda and Landaverde-Giron, armed themselves with knives and a gun in order kill a person who had fled from El Salvador to Frederick, Maryland to escape an order to kill by MS-13 in El Salvador. They lured the victim to a wooded area between Greenwall Place and Hoke Place in Frederick, shot him in the head and stabbed him multiple times, killing him.
According to the indictment, on July 30, 2014, Garcia-Miranda, Salazar and other MS-13 members traveled to the 5700 block of 30th Avenue in Hyattsville, Maryland with guns to search for and shoot suspected rival gang members and others who were believed to have taken property from an MS-13 associate. They arrived at a nearby location where three individuals were walking. Garcia-Miranda and an MS-13 associate, while in the company of Salazar, fired multiple shots from handguns at the three victims, striking one victim seven times and another victim once.
All three defendants face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise. Garcia-Miranda and Salazar also face a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering, and for attempted murder in aid of racketeering; and a mandatory minimum of 10 years in prison consecutive to any other sentence and a maximum sentence of life in prison for using a gun to conspire to commit murder in aid of racketeering and attempted murder in aid of racketeering.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County Police Department, Frederick Police Department, Hyattsville Police Department, Montgomery County Police Department, Prince George’s County State’s Attorney’s Office and its Strategic Investigations Unit, Frederick County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, Prince George’s County Department of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan, who are prosecuting this case.
Texas Man Sentenced for Traveling to Missouri for Illicit Sex with Two ChildrenRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Texas man was sentenced in federal court today for traveling to Missouri to engage in sex with two minor sisters whose “father” (actually an undercover police detective) he met online.
John Paul Christian, 42, of San Marcos, Texas, was sentenced by U.S. District Judge Dean Whipple to 10 years in federal prison without parole.
On Sept. 17, 2014, Christian pleaded guilty to two counts of attempting to entice a minor to engage in sexual activity and to one count of traveling across state lines to engage in illicit sexual conduct.
According to court documents, Christian communicated through an online social media site with a man he believed to be the father of two minor females, ages 11 and 15, on Feb. 19, 2014. The father was actually an undercover Kansas City, Mo., Police Department detective.
Christian called the undercover detective on his cell phone to discuss his interest in having sex with the girls, and sent e-mail and text messages to the undercover detective to arrange a meeting to further discuss this opportunity to have sex with his children. On Feb. 26, 2014, Christian sent a text to the undercover detective stating that he wanted to have sex with the 11-year-old girl first and describing all of the sex acts he desired to perform on and with her. On Feb. 28, 2014, Christian sent a $200 Money Gram to the undercover detective as partial payment of the $400 agreed price for sex with the girls.
On March 1, 2014, Christian traveled from Texas to Missouri, to a location where he believed the man and his daughters lived, with the intent to have sex with the girls as previously arranged. Christian arrived in a taxi at about 8:10 p.m. and was arrested as he got out of the taxi.
When he was taken into custody, Christian was in possession of two bags. According to court documents, one of the bags contained a “Hello Kitty” backpack doll, two “Hello Kitty” underwear outfits for young girls, two pairs of young girls’ panties, two cans of Red Bull, rope necklaces, Q-Tips and a teal iPod Nano with headphones. The other bag contained an Acer Chromebook laptop computer with power cables, a Samsung flip phone, and a bottle of Astroglide lubricant.
When officers searched Christian’s hotel room, according to court documents, they found a notebook with what appears to be a letter written to the 15-year-old daughter. The letter details the various sex acts that Christian was going to be engaged in with the sisters. Christian wrote that he wanted to get the 15-year-old girl pregnant so that they could have a “little baby girl together” that they in turn would sexually molest.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Kansas City, Mo., Police Department in conjunction with the Human Trafficking Rescue Project.
Sunnyside Man Sentenced to Concurrent 10 Year Prison Terms for Drug Trafficking and Being an Illegal Alien in Possession of AmmunitionRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Omar Alarcon Fuentes, 37, of Sunnyside, Washington, was sentenced today after having been convicted after a one-day jury trial in December 2014 of one count of distributing 50 grams or more of pure methamphetamine, and pleading guilty on March 19, 2015, to being an illegal alien in possession of ammunition. In the methamphetamine case, United States District Court Judge Thomas O. Rice sentenced Fuentes to a 10-year term of imprisonment and a 5-year term of court supervision following release from federal prison. The Court also ordered Fuentes to pay $4,000 in restitution to the United States Drug Enforcement Administration. In the ammunition case, Judge Rice sentenced Fuentes to a 10-year term of imprisonment to run concurrent to the sentence imposed in the methamphetamine case, followed by a 3-year term of court supervision following release from federal prison. Fuentes has been in custody since his arrest on July 25, 2013.
According to information disclosed during court proceedings, on July 18, 2013, using a confidential informant, the U.S. Drug Enforcement Administration (DEA) and Spokane Regional Drug Task Force (SRDTF) conducted a controlled buy of four ounces of methamphetamine from Henry Patrick Bevans, III, at a hotel on North Division. When the confidential informant arrived at Bevans’ room to buy four ounces, he gave Bevans $4,000 in buy money provided by DEA. However, Bevans did not have the drugs to distribute, indicating he was waiting for his supplier to arrive. While maintaining surveillance outside the hotel, DEA special agents SRDTF officers observed Fuentes driving a minivan into the hotel’s rear parking lot. Shortly afterward, DEA and SRDTF units observed Bevans exit the back of the hotel and enter Fuentes’ minivan. Surveillance units observed Fuentes drive Bevans from the hotel’s rear parking lot to the front entrance. Bevans exited Fuentes’ minivan and went inside the hotel. In the meantime, the confidential informant was waiting in Bevans’ hotel room. Upon returning to his hotel room, Bevans distributed four ounces of methamphetamine that he had received from Fuentes in the parking lot. After leaving the hotel room, the confidential informant turned over the suspected methamphetamine to DEA. DEA laboratory testing confirmed that the substance Fuentes distributed to Bevans who in turn distributed it the confidential informant was 119 grams of pure methamphetamine. Surveillance units followed Fuentes to his residence in Sunnyside, Washington.
On July 24, 2013, SRDTF obtained a State warrant to search Fuentes’ residence. During execution of the warrant, a Spokane County Sheriff’s Office detective found 16 loose rounds of .45 caliber ammunition and a Mexican permanent resident identification card in the name of “Omar Fuentes” in a drawer in the master bedroom. The ammunition was photographed and seized. Fuentes, a citizen and national of Mexico, had been arrested and deported from the United States in 2009, but had illegally reentered the United States.
After previously pleading guilty to two counts of distributing 50 grams or more of pure methamphetamine, Henry Patrick Bevans, III, was sentenced in April 2014 by Senior District Court Judge Fred Van Sickle to a 10-year term of imprisonment followed by 10 years of court supervision and was ordered to pay $8,000 restitution to DEA.
Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said, “The sentence imposed in this case reflects the seriousness of drug trafficking and firearm-related crimes. This case is yet another example of the commitment of the United States Attorney’s Office to prosecute aggressively drug and firearm-related cases in the Eastern District of Washington. The United States Drug Enforcement Administration, Spokane Regional Drug Task Force and Spokane County Sheriff’s Office are commended for its tireless efforts in thoroughly investigating this case.”
The investigation was conducted by the United States Drug Enforcement Administration, Spokane Regional Drug Task Force and Spokane County Sheriff’s Office. The case was prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
Settlements Announced with Two Pharmaceutical Companies Regarding the Medicaid Drug Rebate ProgramRead the Press Release
PHILADELPHIA – AstraZeneca LP has agreed to pay the United States and participating states a total of $46.5 million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program, the Justice Department announced today. Of that amount, AstraZeneca will pay roughly $26.7 million, plus interest, to the United States, and the remainder to states participating in the settlement.
In a separate settlement arising out of the same case, Cephalon Inc. has agreed to pay the United States and participating states a total of $7.5 million, plus interest, to resolve similar allegations. Of that amount, Cephalon will pay roughly $4.3 million, plus interest, to the United States, and the remainder to states participating in the settlement.
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The quarterly rebates are based, in part, on the Average Manufacturer Prices (AMPs) that the manufacturers report to the government for each of their covered drugs. Generally, the higher the reported AMP for a drug, the greater the rebate the manufacturer pays to state Medicaid programs for the drug. These settlements resolve allegations that AstraZeneca and Cephalon underreported AMPs for a number of their drugs by improperly reducing the reported AMPs for service fees they paid to wholesalers. As a result, the government contends that AstraZeneca and Cephalon underpaid quarterly rebates owed to the states and caused the United States to be overcharged for its payments to the states for the Medicaid program.
The two settlements partially resolve a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The amounts to be received by the whistleblower in this suit, Ronald J. Streck, a pharmacist, have not yet been determined.
“We will continue to police the pharmaceutical industry when the Medicaid program overpays for drugs,” said First Assistant U.S. Attorney Louis D. Lappen of the Eastern District of Pennsylvania. “As these settlements demonstrate, it is critical for pharmaceutical manufacturers to comply with requirements of programs such as the Medicaid Drug Rebate Program to ensure that the government and the taxpayers are treated fairly in the reimbursement process.”
“The Medicaid Drug Rebate Program relies on drug manufacturers reporting accurate pricing information used in the rebate calculations,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, the head of the Justice Department’s Civil Division. “These settlements demonstrate the Department of Justice’s commitment to ensuring that state Medicaid programs receive the full amount of rebates from manufacturers that Congress intended.”
The settlement with AstraZeneca LP and Cephalon Inc. was the result of a coordinated effort among the U.S. Attorney’s Office of the Eastern District of Pennsylvania, the Civil Division’s Commercial Litigation Branch, and Health and Human Services-Office of Inspector General.
These settlements illustrate the government’s emphasis on combating health care fraud and mark 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 $24.8 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The lawsuit is captioned United States ex rel. Streck v. Allergan, Inc., et al., Case No. 08-cv-5135 (E.D. Pa.). The claims settled by these agreements are allegations only, and there have been no determinations of liability.
Pine Lawn Mayor Sentenced on Extortion ChargesRead the Press Release
St. Louis, MO – The mayor of Pine Lawn, Missouri, SYLVESTER CALDWELL, was sentenced to 33 months in prison on charges involving the extortion of cash payments from the owner of a local towing company and from the owner of a Pine Lawn convenience store. In addition to the prison sentence, he was also ordered to pay $5,500 restitution.
According to court documents, from December 2013 through April 2014, FBI agents were conducting an ongoing public corruption investigation into the activities of Sylvester Caldwell, who was Mayor of the City of Pine Lawn. As Mayor, he exercised authority and control over which towing company provided the primary towing service for the City. During the public corruption investigation, the owner of a towing company, who was cooperating with the FBI, met with Mayor Caldwell on several occasions for the purpose of making cash payments to the Mayor in order to remain as the primary towing service for Pine Lawn.
On at least five occasions, Mayor Caldwell met with the tow company owner at various locations and accepted cash payments in exchange for continuing to give work to the towing company. At times Mayor Caldwell used coded language when requesting the cash payments. For example, he commanded the tow company owner to place “green Mountain Dew in a cup,” which was code for directing that the cash be placed in a disposable cup. He also induced payments by threatening to use a competing towing company.
From at least February 2013 through September 2014, Mayor Caldwell also extorted numerous payments of money from the owner of a convenience store known as Pine Lawn Market. He attempted to disguise the payments as donations to the City of Pine Lawn. The owner paid the money to Mayor Caldwell out of fear that the Mayor would make trouble for the store. The owner of the store also allowed him to take goods from the store out of fear that his business could suffer economic harm if he refused.
Caldwell, Florissant, Missouri, pled guilty in April before United States District Judge Catherine D. Perry to one count of attempted extortion and one count of extortion.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Reginald Harris and Anthony Franks handled the case for the U.S. Attorney’s Office.
Pharmacist Sentenced to More Than Eight Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Brian C. Weiler (56, Melbourne) to eight years and one month in federal prison for conspiracy to distribute and dispense oxycodone not in the usual course of professional practice. The Court also ordered him to forfeit his Florida pharmacist license and imposed a forfeiture money judgment in the amount of $274,400.
Weiler was found guilty by a federal jury on December 12, 2014.
According to evidence presented at trial, from February 2010 through May 2011, Weiler worked at two Tampa pharmacies, VIP Pharmacy on Martin Luther King, Jr. Boulevard; and New Tampa Pharmacy on Waters Avenue. During that time, he filled hundreds of prescriptions for very large doses of oxycodone. The recipients included drug addicts and members of doctor shopping organizations who traveled from Ohio, Kentucky, and Tennessee. Owners and operators of the VIP Pharmacy and New Tampa Pharmacy have previously been convicted of federal conspiracy charges.
This case was investigated by a joint task force including the Drug Enforcement Administration, the Pasco County Sheriff's Office, and the Temple Terrace Police Department. It was prosecuted by Assistant United States Attorney Maria Chapa Lopez.
Ottawa County Business Owner Sentenced for Clean Water Act ViolationsRead the Press Release
TOPEKA, KAN. - The owner of a metal plating company in Minneapolis, Kan., was sentenced Monday to four months in federal prison followed by six months home confinement for violating the federal Clean Water Act. His company was fined $10,000. In addition, he and his company were ordered to pay $281,503 in restitution.
Kevin L. Cline, 56, Minneapolis, Kan., owner of C & R Plating, pleaded guilty to one count of violating the federal law that regulates discharges into America’s creeks and rivers. The company pleaded guilty to the same count.
In his plea, Cline admitted he was responsible for high levels of zinc found in a sewer system operated by the City of Minneapolis, Kan. Beginning in 2007, Cline submitted false and fraudulent samples and reports to the Kansas Department of Health and Environment to conceal the fact that untreated waste water from C & R Plating was being delivered to the Minneapolis sewer system. The water came from spent chemical baths used in treating metals. The city sewer system discharges into the Solomon River via Lindsey Creek and an unnamed tributary.
Grissom commended the Environmental Protection Agency and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Ohio Man Who Sold Synthetic Urine on the Internet Sentenced to Probation with Home DetentionRead the Press Release
PITTSBURGH – An Ohio resident has been sentenced in federal court to five years’ probation with six months’ home detention and ordered to pay a fine of $7,500 on his conviction of one count of conspiracy to defraud the United States and one count of introduction of misbranded drugs into interstate commerce, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on David Neal, 62, of Middletown, Ohio.
According to information presented to the court, Neal is the owner ACS Herbal Tea Company, a national Internet business located in Middletown, Ohio. Neal, using ACS Herbal Tea Company and the Internet websites www.123zip.com and www.passthetest.com, conspired to defraud the Substance Abuse and Mental Health Services Administration (SAMHSA) of the United States Department of Health and Human Services by obstructing and interfering with the lawful governmental functions of SAMHSA in overseeing, monitoring and establishing scientific and technical guidelines for federal workplace drug testing programs, and standards for certification of laboratories engaged in urine drug testing for federal agencies and federally-regulated industries, under the Federal Agency Drug-Free Work Place Program. For the past eight years, through the Internet websites www.123zip.com and www.passthetest.com, Neal sold, in interstate commerce, products such as the “Magnum Unisex Synthetic Urine-Never Fail a Urine Drug Test” and “Urine Luck” to customers who intended to use the products for the purpose of defeating federal, and federally regulated, employment drug urine tests overseen by SAMHSA. Additionally, some of the products sold through Neal’s websites were drugs, as defined by the Food and Drug Administration, but did not bear appropriate labeling.
“Federally mandated drug testing of transportation workers ¬¬¬is in place to ensure public safety; criminals who enrich themselves by distributing products designed to circumvent and defeat such testing endanger those who rely on transportation workers for safe passage; they also risk the health of the workers who take a product of unknown safety and efficacy,” said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “We will continue to protect the public health by bringing to justice criminals who distribute products that are designed only to defeat consumer safety.”
Judge Conti stated that the seriousness of the offense, when considering the public safety concerns implicated, supported the imposition of a guideline sentence.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation Division along with the Federal Bureau of Investigation and the Food and Drug Administration, Office of Criminal Investigations for the investigation leading to the successful prosecution of Neal.
New Hampshire Man Pleads Guilty to Firearms ChargesRead the Press Release
CONCORD, N.H. – Nickolas Oliva, 27, of Dover, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to being an unlawful user in possession of a firearm and possession of stolen firearms, announced Acting United States Attorney Donald Feith.
On December 20, 2013, the Dover Police Department learned that several of Oliva’s grandfather’s firearms were missing. A subsequent investigation revealed that the defendant had taken several firearms, without the permission of his grandfather and sold the firearms to third parties. Upon speaking with law enforcement, the defendant subsequently admitted that he took the guns from his grandfather's safe, without his permission, and sold them. The defendant further admitted that he had an addiction to narcotics and that he sold the guns to get money for drugs. Agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) were able to recover many of the firearms.
"The federal firearms laws are designed to ensure that firearms do not fall into the hands of those prohibited from having them," stated Acting United States Attorney Don Feith. "We will continue to investigate and prosecute those individuals who violate the firearms laws by delivering weapons to prohibited persons. I want to congratulate the ATF for its excellent work in this case.”
Oliva faces a maximum sentence of ten years imprisonment. Oliva is scheduled to be sentenced on November 2, 2015. Oliva was released pending sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dover Police Department and is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Neosho Man Convicted of Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Neosho, Mo., man has been convicted in federal court of illegally possessing firearms.
Louis Anthony Hardison, also known as Mohammad L. Carrol, 54, of Neosho, was found guilty on July 2, 2015, of being a felon in possession of two firearms, in an order by U.S. District Judge M. Douglas Harpool, following a bench trial on June 15, 2015.
Hardison was in possession of an Intratec 9mm pistol (along with 140 rounds of ammunition) and a Cobray Derringer .45-caliber pistol (along with two rounds of ammunition) on Nov. 27, 2013.
According to court documents, a 911 dispatcher received a desperate call for assistance at about 4 a.m. on Nov. 27, 2013. The caller reported that someone had a gun and knives and told the dispatcher, “I will be . . . dead before you get all this information . . . he got a butcher knife to my . . . neck and he got a gun.”
When Neosho police officers arrived at the residence, they found the caller standing near her vehicle parked on the roadside in front of Hardison’s residence. Hardison was standing near the front door of the residence. The officer noticed that Hardison smelled of intoxicants and his speech was slurred.
Another police officer, who arrived a few minutes later, asked Hardison about the gun. Hardison pointed to a green duffel bag on the floor in the hallway. Inside the bag, the officer found a Tech 9 Intratec 9mm handgun. The gun had a magazine in it, and there were four other magazines in the duffel bag.
A police officer, who had been informed by the victim that Hardison had a Derringer, told Hardison he was sure there were other weapons in the residence. Hardison then told the officer he had another handgun in the bedroom. Hardison escorted the police officer to the bedroom and told him that the gun was in the ductwork. The officer removed the ductwork and located the derringer two-shot pistol.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hardison has two prior felony convictions for forgery and prior felony convictions for escape, grand theft auto and non-sufficient funds.
Under federal statutes, Hardison is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol and the Neosho, Mo., Police Department.
Moore County, Texas, Man Pleads Guilty to Federal Obscenity OffenseRead the Press Release
AMARILLO, Texas — Bassam Arif Al Zarkani, 33, of Dumas, Texas, appeared today before U.S. District Judge Mary Lou Robinson and pleaded guilty to one count of attempted transfer of obscene material to a minor, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Al Zarkani, who has been in custody since his arrest on a related state charge in April 2015, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case, on approximately April 14, 2015, Al Zarkani sent a “friend request” to an undercover officer’s Facebook account, and the undercover officer accepted that friend request. Al Zarkani and the undercover officer exchanged messages and in response to Al Zarkani’s inquiry, the undercover officer responded, “single…no kids thank god…im 15.”
The conversation turned sexual in nature and Al Zarkani sent the undercover officer a sexually explicit photo of himself, and for almost two weeks, Al Zarkani and the undercover officer, whom Al Zarkani believed was a 15-year-old female, sent private messages to each other through Facebook. During the conversations, Al Zarkani warned the undercover officer to keep him a secret from her dad and not tell anyone about him until she is 18 years old. On April 28, 2015, a meeting site was established, and Al Zarkani traveled from Dumas to Amarillo, Texas, to meet the girl. He was arrested when he arrived at the meeting location
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Amarillo Police Department investigated. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Monticello Man Sentenced to over 10 Years for Attempted Enticement of a MinorRead the Press Release
A man who attempted to entice a minor to engage in sexual activity was sentenced July 2, 2015 to over 10 years in federal prison.
Colton Rickels, age 20, of Monticello, Iowa, received the sentence after an April 20, 2015 guilty plea to one count of attempted enticement of a minor. At the guilty plea hearing, Rickels admitted that, in October 2014, he used the Internet to attempt to persuade, induce, entice, or coerce a 12-year-old girl to engage in sexual activity. At the sentencing hearing, the court also discussed defendant’s repeated sex acts with another 12-year-old girl and his inappropriate contact with a 13-year-old girl.
Rickels was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Rickels was sentenced to 121 months’ imprisonment. A special assessment of $100 was imposed, and he must also serve a 10-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Monticello Police Department, and the Cedar Rapids Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-20.
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Massachusetts Man Sentenced on Firearm ChargeRead the Press Release
CONCORD, N.H. – Jason Martinez, 20, of Methuen, Massachusetts, was sentenced today in the United States District Court for the District of New Hampshire to 48 months imprisonment after pleading guilty to conspiracy to make a false statement during the acquisition of a firearm, announced Acting United States Attorney Donald Feith. Upon his release, Martinez will be placed on three years of supervised release which is monitored by the United States Probation and Pretrial Services Office.
Beginning in August 2014, agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Boston were involved in an investigation of the illegal purchase and sale of firearms. During the investigation, ATF agents utilized an informant (CI-1) to purchase firearms from Martinez.
Martinez and others solicited a co-conspirator to purchase firearms because the co-conspirator possessed a New Hampshire identification and could provide that identification to the federal firearms licensee making the sale. Using money provided by Martinez, the co-conspirator purchased, on four separate occasions between October 31, 2014 through November 8, 2014, nine firearms for Martinez and others. On November 26, 2014, the co-conspirator attempted to purchase, with money provided by Martinez, three additional firearms but was denied because ATF was alerted to the purchase. During each of the firearm purchases, the co-conspirator falsely claimed that he was the actual purchaser of the firearms when in reality he was purchasing the firearms for Martinez and others.
“This case is a classic example of the results that can be obtained when good investigative work is coupled with aggressive prosecution,” stated Acting U.S. Attorney Donald Feith. “By refusing to be satisfied with investigating only the purchaser of these firearms, the ATFE was able to identify and arrest the defendant, who was the money man selling on the street the guns he illegally obtained. Our office is committed to pursuing these “lie and buy” cases to identify and prosecute those who would trade in the illegal transfer of firearms.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and was prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Mansfield Man Charged with Threatening President ObamaRead the Press Release
BOSTON – A Mansfield man was charged in U.S. District Court in Boston with posting on-line threats to the President of the United States.
Andrew J. O’Keefe, 28, was charged on June 15, 2015, in a criminal complaint that was unsealed today with posting an online threat to the President of the United States. He is scheduled to appear before U.S. District Court Magistrate Judge Donald L. Cabell at 11:15 a.m. this morning.
According to court documents, on May 13, 2015, an individual, later determined to be O’Keefe, posted a threat on an FBI website stating that he planned on killing President Barack Obama. On May 15, 2015, law enforcement officers attempted to interview O’Keefe regarding the posting; however, O’Keefe refused to speak with officers outside his residence. A search warrant executed on O’Keefe’s residence and vehicle recovered over 100 weapons including swords, double-edged knives, hatchets, spears, an air gun, and two laptop computers.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service; and Mansfield Police Chief Ronald A. Sellon, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crime Unit.
LB&B Associates Inc. Agrees to Pay $7.8 Million for Alleged False Claims Related to Small Business Administration Set Aside ContractsRead the Press Release
LB&B Associates Inc. and its principals, Lily A. Brandon and F. Edward Brandon, have agreed to pay the government $7.8 million to resolve allegations that they made false statements to obtain contracts through the Small Business Administration’s (SBA’s) 8(a) Business Development Program for Small Disadvantaged Businesses, the Justice Department announced today. LB&B is a North Carolina corporation headquartered in Columbia, Maryland.
“The purpose of the 8(a) Program is to assist small disadvantaged businesses to compete in the American economy,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division. “The Justice Department is committed to making sure that those who participate in 8(a) contracts do so honestly and fairly.”
“The basic purpose of this federal program is undermined when contractors falsely claim to be a small or disadvantaged business,” said Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia. “This $7.8 million settlement demonstrates our commitment to protecting the integrity of this important program. Working with relators and federal investigators, we will do all that we can to act against those who illegitimately bill the American taxpayers.”
The government alleged that in seeking certification under SBA’s 8(a) Program, LB&B falsely represented that Lily Brandon – who satisfied the criteria for a socially and economically disadvantaged person under the program – controlled the operations of LB&B, when she did not. Securing 8(a) certification allowed LB&B to obtain 8(a) set aside contracts from various government agencies. Throughout the performance of these contracts, Lily Brandon allegedly failed to exercise actual control over LB&B’s operations, a key component to qualifying for the set aside contracts.
“This case shows the lengths we will go to protect the integrity of SBA’s 8(a) program,” said General Counsel Melvin F. Williams Jr. of the SBA. “Both the Justice Department and SBA are prepared to do what it takes to make certain that the program helps folks who are really disadvantaged, and for whom it is intended to assist.”
The civil settlement resolves a lawsuit filed by Steven O. Sansbury and James T. Buechler, former employees of LB&B, under the whistleblower provision of the False Claims Act, which permits private parties, known as relators, to file suit on behalf of the government for false claims and to share in any recovery. The act permits the government either to intervene in and take over the whistleblowers’ suit, or to allow the whistleblowers to pursue the action. In addition to alleging LB&B’s improper receipt of 8(a) set aside contracts, Mr. Sansbury and Mr. Buechler alleged that LB&B made false claims in connection with contracts it obtained pursuant to the SBA’s Mentor-Protégé Program, which allows participants to obtain set aside contracts following LB&B’s graduation from the 8(a) Program. The United States intervened in the whistleblowers’ 8(a) claims but not the Mentor-Protégé claims. The settlement resolves both claims, and Mr. Sansbury and Mr. Buechler will recover a total of $1.5 million of the settlement.
The settlement with LB&B was the result of a coordinated effort among the Civil Division, the U.S. Attorney’s Office of the District of Columbia, the SBA’s Office of Inspector General and SBA’s Office of General Counsel.
The civil lawsuit was filed in the District of Columbia and is captioned United States ex rel. Sansbury, et al. v. LB&B Associates, Inc., et al., No. 07-cv-00251 (D. D.C.).
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
LB&B Associates Inc. Agrees to Pay $7.8 Million for Alleged False Claims Related to Small Business Administration Set Aside ContractsRead the Press Release
WASHINGTON – LB&B Associates Inc. and its principals, Lily A. Brandon and F. Edward Brandon, have agreed to pay the government $7.8 million to resolve allegations that they made false statements to obtain contracts through the Small Business Administration’s (SBA’s) 8(a) Business Development Program for Small Disadvantaged Businesses, the Justice Department announced today. LB&B is a North Carolina corporation headquartered in Columbia, Maryland.
“The basic purpose of this federal program is undermined when contractors falsely claim to be a small or disadvantaged business,” said Acting U.S. Attorney Vincent H. Cohen, Jr. “This $7.8 million settlement demonstrates our commitment to protecting the integrity of this important program. Working with relators and federal investigators, we will do all that we can to act against those who illegitimately bill the American taxpayers.”
“The purpose of the 8(a) Program is to assist small disadvantaged businesses to compete in the American economy,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division. “The Justice Department is committed to making sure that those who participate in 8(a) contracts do so honestly and fairly.”
The government alleged that in seeking certification under SBA’s 8(a) Program, LB&B falsely represented that Lily Brandon – who satisfied the criteria for a socially and economically disadvantaged person under the program – controlled the operations of LB&B, when she did not. Securing 8(a) certification allowed LB&B to obtain 8(a) set aside contracts from various government agencies. Throughout the performance of these contracts, Lily Brandon allegedly failed to exercise actual control over LB&B’s operations, a key component to qualifying for the set aside contracts.
“This case shows the lengths we will go to protect the integrity of SBA’s 8(a) program,” said General Counsel Melvin F. Williams Jr. of the SBA. “Both the Justice Department and SBA are prepared to do what it takes to make certain that the program helps folks who are really disadvantaged, and for whom it is intended to assist."
The civil settlement resolves a lawsuit filed by Steven O. Sansbury and James T. Buechler, former employees of LB&B, under the whistleblower provision of the False Claims Act, which permits private parties, known as relators, to file suit on behalf of the government for false claims and to share in any recovery. The act permits the government either to intervene in and take over the whistleblowers’ suit, or to allow the whistleblowers to pursue the action. In addition to alleging LB&B’s improper receipt of 8(a) set aside contracts, Mr. Sansbury and Mr. Buechler alleged that LB&B made false claims in connection with contracts it obtained pursuant to the SBA’s Mentor-Protégé Program, which allows participants to obtain set aside contracts following LB&B’s graduation from the 8(a) Program. The United States intervened in the whistleblowers’ 8(a) claims but not the Mentor-Protégé claims. The settlement resolves both claims, and Mr. Sansbury and Mr. Buechler will recover a total of $1.5 million of the settlement.
The settlement with LB&B was the result of a coordinated effort among the Civil Division, the U.S. Attorney’s Office of the District of Columbia, the SBA’s Office of Inspector General and SBA’s Office of General Counsel.
The civil lawsuit was filed in the District of Columbia and is captioned United States ex rel. Sansbury, et al. v. LB&B Associates, Inc., et al., No. 07-cv-00251 (D. D.C.).
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Janitor Employed by Las Cruces Elementary School Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – David Anaya Garcia, 31, of Las Cruces, N.M., was arrested on July 2, 2015, on federal child pornography charges. Garcia made his initial appearance in federal court earlier today. He remains in custody pending a preliminary hearing and detention hearing, both of which currently are scheduled for later this week.
The criminal complaint charges Garcia with distribution of child pornography and possession of child pornography. According to the complaint, HSI initiated the federal investigation leading to Garcia’s arrest on June 30, 2015, after the New Mexico Attorney General’s Office reported that an investigation by the New Mexico Internet Crimes Against Children (ICAC) Task Force revealed that an IP Address subscribed to Garcia’s residential address in Las Cruces was being used to download images consistent with child pornography. The Las Cruces Police Department and HSI arrested Garcia and executed a federal search warrant at his residence on July 1, 2015.
If convicted on the distribution charge, Garcia faces a prison sentence of not less than five years and not more than 20 years. If convicted on the possession charge, Garcia faces a federal prison term of up to ten years. Garcia also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of HSI, the Las Cruces Police Department, the New Mexico Attorney General’s Office, the New Mexico ICAC Task Force and the New Mexico Regional Computer Forensic Laboratory. The case is being prosecuted by Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are [82] federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Illegal Commercial Driver License Conspiracy ExposedRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Ellariy Medvednik (48, Oviedo), Natalia Dontsova (49, Oviedo), Adrian Salari (44, Orlando), and Clarence Davis (76, Winter Garden) with conspiracy to aid and abet the unlawful production of Florida driver licenses and commercial driver licenses (“CDLs”). If convicted on all counts, each defendant faces a maximum penalty of 30 years in federal prison.
According to the indictment, Medvednik, Dontsova, and Salari were affiliated with Larex, Inc., a commercial truck driving school. Larex marketed itself to Russian speakers online. Individuals residing out-of-state seeking Florida CDLs would contact Medvednik to arrange for Larex’s services at the cost of approximately $2,000. Those individuals would then travel to Florida to obtain their CDLs with the intention of returning to their home states immediately afterward. However, to obtain a Florida CDL, an individual must first possess a Florida driver license. The State of Florida restricts its driver licenses and CDLs to Florida residents. Medvednik, Dontsova, and Salari conspired to provide false documentation that the individuals resided with them, so that the individuals could obtain Florida driver licenses.
After providing the false residency certifications, Larex assisted the students with the additional requirements for obtaining a CDL. First, Dontsova, using covert communication equipment, provided answers to the students during the written portion of the CDL exam, the successful completion of which led to the issuance of a commercial learner’s permit. Second, Larex hired Davis, a third-party tester authorized by the State of Florida, to administer vehicle inspection tests, basic control skills tests, and road tests. Davis routinely passed and certified students who should have failed based on their test performance. As a result of Davis’s certifications, the individuals were able to obtain Florida CDLs. In return, Davis received from Medvednik approximately $75 per student above his posted rate. At least 600 individuals have been identified as utilizing Larex’s services with Davis as the third-party tester.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Department of Transportation’s Office of Inspector General, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Embry J. Kidd.
Huntington woman gets federal prison time for dealing heroinRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman caught selling heroin last year was sentenced today to six months in federal prison, U.S. Attorney Booth Goodwin announced. Sunshine Renae Midkiff, 35, previously pleaded guilty in April 2015 to distributing heroin. Chief United States District Judge Robert C. Chambers imposed today’s sentence.
On October 16, 2014, Midkiff met an informant working with the Huntington FBI Drug Task Force in the 2200 block of Artisan Avenue in Huntington and sold heroin to the informant. Midkiff also sold heroin to an informant in Huntington in September 2014.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Huntington man sentenced to federal prison for selling oxycodoneRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who illegally sold oxycodone pills in 2013 and 2014 was sentenced today to two years in federal prison, announced U.S. Attorney Booth Goodwin. Clinton Mack Mount, 38, pleaded guilty in April 2015 to distributing oxycodone. Today’s sentence was imposed by Chief United States District Judge Robert C. Chambers.
On January 13, 2014, Mount met an informant working with the Drug Enforcement Administration (DEA) outside a Barboursville restaurant and sold the informant 100 oxycodone pills for $3,000. Mount also sold oxycodone pills to an informant on three other occasions from December 2013 to January 2014.
The DEA and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Gun Store Owner Pleads Guilty to Selling A Firearm to A Convicted FelonRead the Press Release
TULSA, Okla.—James Patrick Okey, 45, pleaded guilty on Wednesday to sale of a firearm to a convicted felon announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. Okey was a Federal Firearms Licensee (FFL) who owned and operated a gun store, Hunters Choice, located in Sapulpa, Oklahoma.
“As a FFL, Okey had a duty to keep guns out of the hands of convicted felons,” said United States Attorney Williams. “The United States Attorney’s Office is committed to keeping the community safe from gun violence, starting with keeping those convicted of serious crimes from obtaining firearms.”
On May 15, 2014, a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) confidential informant and an ATF undercover agent went into Hunters Choice. The confidential informant told Okey that she was a convicted felon, however, Okey sold her a firearm anyway. Knowingly selling a firearm to a convicted felon is a violation of federal law.
Okey faces a maximum sentence of 10 years in prison, a $250,000 fine, and up to three years of supervised release. Additionally, Okey’s federal firearms license is subject to revocation. United States District Court Judge Claire V. Eagan will sentence Okey on October 5, 2015. This case was investigated by ATF and prosecuted by Assistant United States Attorney Neal C. Hong.
Getaway Car Driver in Five Bank Robberies Sentenced to 4+ Years in Federal PrisonRead the Press Release
KANSAS CITY, KAN. - A Kansas City man who took part in five bank robberies in Kansas and Missouri was sentenced Monday to 55 months in federal prison, U.S. Attorney Barry Grissom said.
Dale Williamson, 35, Kansas City, Mo., pleaded guilty to five counts of bank robbery. In his plea, he admitted driving a getaway car in the following bank robberies:
- April 24, 2014, UMB Bank, 6252 Raytown Road, Raytown, Mo.
- May 12, 2014, First Bank of Missouri, 7001 North Oak Trafficway, Gladstone, Mo.
- May 22, 2014, Bank of America, 15811 Metcalf Ave. Overland Park, Kan.
- May 30, 2014, Commerce Bank, 9501 Antioch Road, Overland Park, Kan.
- May 30, 2014, Commerce Bank, 3606 Frederick Ave., St. Joseph, Mo.
Grissom commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Gang Leader Sentenced to 50 Years for Prescription Drug TraffickingRead the Press Release
SPOKANE - – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, and Douglas James, Acting Special Agent in Charge for the Drug Enforcement Administration, announced that Arvin Terrill Carmen, 39, of Los Angeles, California, and Spokane, Washington, was sentenced to 50 years in prison by Senior United States District Court Judge William Fremming Nielsen following a five-week jury trial, in November 2014. At the trial, in which he was found guilty of engaging in a continuing criminal enterprise, conspiracy to distribute oxycodone-based pills, and possession with intent to distribute oxycodone-based pills. In addition to the sentence handed down by Senior United States District Court Judge Nielsen, Carmen was also ordered to serve a life-term of court supervision following his release from federal prison and to pay a $50,000 fine. Carmen has been in custody since his arrest on February 28, 2013.
“The prescription drug abuse problem in the Spokane and surrounding areas is well documented, and while this one conviction and sentencing won’t change those issues overnight, it demonstrates my office’s continual commitment to fight this problem with every resource at our disposal,” said U.S. Attorney Michael C. Ormsby. “While this marks the end of this chapter of this case, we will continue to work side-by-side with DEA and our other federal and local partners to bring drug traffickers to justice.” Evidence presented during court proceedings showed that Carmen initiated a drug-trafficking scheme that involved dozens of other members and associates of the EIGHT TREY GANGSTER CRIPS, a street gang headquartered in Los Angeles County that operated this criminal enterprise between Los Angeles and Spokane. During a cooperative investigation that included the Drug Enforcement Administration’s Spokane Office (DEA-SRO), the Spokane Regional Drug Task Force, Los Angeles Police Department (LAPD), and numerous other federal and state agencies, it was learned that Carmen and others illegally obtained large quantities oxycodone-based prescription pills in Los Angeles and utilized female couriers to transport the pills to Spokane for distribution on the street.
During the early days of the conspiracy, the 80 mg. OxyContin pills were acquired for approximately $40 or less in Los Angeles and sold for approximately $80 each in Spokane. When the manufacturers modified the structure of the 80 mg. pills to discourage such illegal diversion and abuse, the down-line price per pill rose to approximately $125 each in Spokane. When the 80 mg. pills became scarce, 30 mg. Oxycodone pills, which were illegally acquired in Los Angeles for approximately $10-$12 per pill, were sold in Spokane, for approximately $20-$22 per pill. The cash proceeds from Spokane-area sales, often in excess of $100,000 per shipment, were then transported back to Los Angeles, and hidden in the checked baggage of the same, or different, female couriers. Based on the investigation, DEA-SRO initially estimated that possibly as much as 10,000 illegal OxyContin pills were transported to, and distributed in, Spokane every week for years.
Eventually 62 co-conspirators, nearly all with gang affiliations, were charged in an Indictment handed down by a grand jury in January, 2013. Approximately 50 search warrants were simultaneously executed in Los Angeles, Spokane, and Seattle, resulting in the seizure of supplies of oxycodone-based pills, numerous firearms, and cash. Fifty-one co-conspirators have plead guilty. The four who went to trial were convicted, including Carmen.
“It is clear that this organized criminal group contributed to the oxycodone and heroin epidemic in the Pacific NW,” said DEA Acting Special Agent in Charge Douglas James. “This lengthy sentence sends a clear message and should serve as a warning to all drug traffickers. I would like to commend the outstanding contributions by all investigative agencies who worked tirelessly on this case.”
Oxycodone is classified as a Schedule II controlled substance and the FDA is trying re-labeling of the drug to prevent abuse, and the United States Justice Department, as well as the DEA have released multiple studies on its abuse. During trial of the four defendants who went to trial and at the multiple sentencing’s for defendants, evidence was presented that this investigation arose out of a concern about the dramatic increase in opiate abuse in Spokane and Eastern Washington. Ormsby made it clear that federal law enforcement will continue its efforts with state and local law enforcement to reduce unlawful opiate use in Eastern Washington. “In addition to continued law enforcement efforts, we will also be partnering with education and public health entities to provide information on the addictive qualities of opiates and the health risks that are increased with illegal use” Ormsby says. He noted a symposium on opioid use and risks was sponsored by the United States Attorney’s Office for the Eastern District of Washington, the University of Washington and the Kittitas County Public Health District involving law enforcement and public health issues associated with opiate use and abuse was attended by over 200 persons in early May of this year.
Former Hell’s Angels Associate Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Timothy M. Stone, 35, of Gates, NY, pleaded guilty to being an accessory after the fact to an assault with a dangerous weapon in aid of racketeering before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 10 years in prison and a $125,000 fine.Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that in the late night hours on May 31, 2006, a male patron at Spenders Bar in Rochester, NY, was assaulted with a baseball bat. At the time, the bar was equipped with interior surveillance cameras that recorded the area where the assault occurred. The surveillance recordings were stored on a computer hard drive. In the early morning hours on June 1, 2006, Stone – knowing that others had committed the assault with the baseball bat in aid of racketeering – went to Spenders, forcibly removed the hard drive, and took it from the bar. Stone later destroyed the hard drive and the baseball bat used to commit the assault to assist the perpetrators of the assault in order to prevent their apprehension by the police.
This plea is part of a larger investigation that, in February 2012, resulted in the indictment of 10 Hell’s Angels members and associates on charges of drug trafficking, racketeering and accessory offenses. To date, two other defendants – Richard E. Riedman and Paul Griffin – have been convicted of narcotics conspiracy charges. Hell’s Angels members James H. McAuley, Jr., and Robert W. Moran, Jr., along with Gina Tata, are currently charged with the assault with a dangerous weapon in aid of racketeering in connection with the assault at Spenders Bar.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Craig Hanesowrth, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for October 13, 2015, at 10:30 a.m. before Judge Siragusa.
Former Harrison County Prosecutor Sentenced for Stealing $540,000 from Elderly ClientRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Chris Koster, Missouri Attorney General, announced that the former Harrison County, Mo., prosecuting attorney was sentenced in federal court today for stealing more than $540,000 from an elderly client.
Richard F. Turner, 40, of Bethany, Mo., was sentenced by U.S. District Judge David G. Kays to three years and nine months in federal prison without parole. The court also ordered Turner to pay restitution to his former client, followed by restitution payments to the Internal Revenue Service and the Missouri Department of Revenue. Turner has already made two restitution payments to his former client totaling $193,753.
Turner, an attorney, is the former elected county prosecutor of Harrison County and he was re-elected on Nov. 4, 2014. On Nov. 26, 2014, Turner pleaded guilty to one count of wire fraud and one count of false statements on his tax return.
Turner admitted that from Oct. 12, 2004 to May 29, 2014, he fraudulently attempted to obtain at least $728,147, and he did obtain at least $540,803, from an elderly client. He spent the money on personal expenses not authorized by his client, the client’s trust agreements, or his power of attorney, including paying off his home mortgage, putting in a swimming pool, and spending heavily at retail establishments and restaurants in Bethany, St. Joseph, and Kansas City, Mo., including to support his clothing store, Richard’s / TD Clothiers, in Bethany. Debits included 20 payments to Turner’s law firm from August 2011 to March 2014 totaling $39,936.
Turner also admitted that he failed to pay taxes on the embezzled income, causing additional loss to the state and federal government of at least approximately $154,453.
On Oct. 12, 2004, a Durable Power of Attorney (DPOA) was created for Dorothy Bush, naming Turner as her attorney-in-fact. The DPOA specified that it, “shall become effective ONLY upon (Bush’s) subsequent incapacity ...” The DPOA granted Turner the ability to conduct financial transactions and pay taxes on behalf of Bush, and to conduct business in which she is an interested party. On May 10, 2010, Bush became a resident at the Crestview Home, a skilled nursing facility in Bethany. Records reflect that she was suffering short-term memory impairment at the time of her admission.
Embezzlement Scheme
Through his plea, Turner admitted that from 2005 to 2011, his income diminished but his spending increased. On Jan. 19, 2011, Turner received a foreclosure notice for his residence. On Jan. 31, 2011, Turner filed for Chapter 13 bankruptcy protection in the Western District of Missouri.
On March 3, 2011, Turner caused to be created the Dorothy A. Bush Revocable Trust, naming Bush as the “Settler,” and himself as the “Trustee.” At the time, according to the plea agreement, Bush was suffering from memory problems. The trust appears to have been signed by Bush; however, Turner notarized the signature himself. No other witnesses were listed. The trust authorized the trustee to make payments from the trust assets for the “care, maintenance and comfort” of Bush. It allowed the trustee to sell assets, invest funds, sell property, pay debts, and to act “generally in the management of the trust estate to do all acts and things which he/she deems for the best interests of the trust.” Turner was not himself a beneficiary under the terms of the trust, nor was he authorized under the trust to make personal expenditures. Upon Bush’s death, the trust provided for the distribution of her remaining assets to various persons and charitable organizations, including family members, friends, the Salvation Army, Masonic Home of Missouri, Northwest Missouri State University, and multiple churches. One week after the trust was set up, on March 10, 2011, doctors declared Bush incapacitated.
In the summer of 2011, Turner made arrangements to sell Bush’s farmland, while intending to embezzle some or all of the proceeds. On July 12, 2011, Turner’s bankruptcy case was dismissed on his own motion. On July 29, 2011, Turner opened an individual checking account for Bush at Farmers Bank of Northern Missouri and deposited a $576,329 check from Missouri Land Title Company from the proceeds of the sale of Bush’s farmland.
On Aug. 12, 2011, Turner wire transferred $370,000 from Bush’s account at Farmer’s Bank to Bank of America to fund a new checking account. The outgoing wire transfer sheet stated the reason for the transfer as, “Funding a new trust for Dorothy,” but the account was held solely in Turner’s name. On Aug. 16, 2011, he made a $2,631 purchase at Best Buy. On Aug. 17, 2011, he made a $2,882 payment to Chase Automotive. Out of his Bank of America account, Turner paid almost $300,000 to his various personal creditors, including Discover, Bank Northwest, Chase Automotive Finance, and Best Buy. This included the purchase of a $279,967 cashier’s check, which he used on Aug. 22, 2011 to pay off his home mortgage loan. He spent much of the remaining money on daily living and entertainment expenses for himself, and for his struggling business, Richard’s / TD Clothiers.
On July 13, 2012, Turner wired another $12,760 from Farmer’s Bank to his Bank of America account. On Aug. 15, 2013, he wired in another $13,560. On Sept. 21, 2012, Turner cashed in two certificates of deposit held solely by Bush. On Sept. 21, 2012, Turner then wired the proceeds, $106,127, to his Bank of America account. Also on Sept. 21, with a debit card on his Bank of America account, Turner spent $2,530 at Wal-Mart in Bethany. On Sept. 22, he spent $3,617 at O’Neils Home Furnishing in Bethany. In July and November 2012, Turner also spent $13,316 on a swimming pool, also taken from Bush’s funds.
In all, from Aug. 16, 2011, to Dec. 17, 2013, Turner debited $520,137 from his Bank of America account, resulting in a negative balance of (-$85.75) on Dec. 21, 2013. A total of $327,400 went to pay off and improve Turner’s home, including for the swimming pool. He spent $22,843 at Wal-Mart, $14,667 on retail electronics, $8,430 to pay off his credit cards, $13,324 on automotive expenses (including maintenance for his 2005 GMC Hummer), $9,516 on fuel and convenience stores, $5,805 at restaurants, $6,546 on travel, and $19,014 on clothing, including for items to sell in his store, Richard’s / TD Clothiers.
From Nov. 25 to 26, 2013, Turner used a check in the amount of $147,752, issued from Bush’s account at Farmers Bank, to open a US Bank account in the name of Dorothy A. Bush Revocable Trust, Richard F. Turner Trustee. The referenced check is signed by Turner as the POA, with, “transfer to Trust estate,” written in the memo section. Signature cards for the new US Bank account list Turner as the sole signer on the account.
Dorothy A. Bush Revocable Trust account statements from Nov. 26, 2013, through Feb. 21, 2014, show numerous debits from this account, most of which were conducted via debit card. The debit card usage appears typical of day-to-day purchases, including groceries, dining, gas, and movies. Of note are three debits to the “Turner Law Firm” totaling $1,789. The account balance on Feb. 21, 2014, was $130,553. From Dec. 12, 2013, through March 10, 2014, Turner spent approximately $20,616 from the account. These debits included four payments to Turner’s law firm from December 2013 to March 2014 for $2,539. On March 11, 2014, the bank froze the trust account and contacted law enforcement.
On March 21, 2014, Turner opened another account in Bush’s name at Farmers Bank of Northern Missouri. For the initial deposit, he transferred the entire balance of $61,707 from a business money market account that Bush had opened in 1998. On March 18, 2014, Turner opened an account at the Edward Jones office in Bethany in the name of “Dorothy A Bush Revocable Trust” with Turner as trustee and sole signer on the account. Turner caused a $41,686 starter check drawn on the new Famers Bank account to be deposited to the account at Edward Jones. Turner also attempted to transfer the remaining funds ($125,635) from the frozen trust account at US Bank to the Edward Jones account. The transfer was denied due to the holds that US Bank placed on the account.
Tax Scheme
During this timeframe, Turner maintained a legal practice, a private probation business, a legal services business and a retail clothing business. Turner filed federal individual income tax returns using the filing status single for tax years 2011 (paper) and 2012 (electronic). According to the plea agreement, Turner claimed $0 taxable income in 2011 (he listed adjusted gross income as $11,116) and 2012 (he listed adjusted gross income as $2,944). The income reported is due to losses in some of his businesses that are offset by the gains made in the other businesses. Turner admitted that he knowingly and willfully did not pay federal or state income taxes on the embezzled funds from Bush.
Turner self-prepared his 2011 and 2012 Form 1040. Turner admitted that he knowingly and willfully failed to report and pay income tax on the embezzled income of $370,000 in 2011 and $118,934 in 2012. Consequently, Turner has an estimated additional tax due and owing of $102,978 and $25,331 for tax years 2011 and 2012, respectively. Turner did not file or pay state income taxes for 2011 and 2012. =For 2011, Turner owed $20,424. For 2012, he owed $5,720. The total amount of federal and state tax liability still due and owing from 2011 and 2012 is $154,453.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson and Missouri Assistant Attorney General Joseph Schlotzhauer. It was investigated by the FBI, IRS-Criminal Investigation, The Missouri Division of Health and Senior Services, and the Missouri Department of Revenue.
Former Ft. Riley Soldier Sentenced to 10 Years for Aggravated Sexual Abuse of ChildRead the Press Release
TOPEKA, KAN. - A former Ft. Riley soldier was sentenced Monday to 10 years in federal prison for aggravated sexual abuse of a child, U.S. Attorney Barry Grissom said.
James Duke, 52, who is in federal custody, pleaded guilty to one count of aggravated sexual abuse. In his plea, he admitted he began sexually assaulting a female child starting when she was four or five years old. Most of the assaults occurred while he was stationed at Ft. Riley and living in military housing. He was stationed there from October 1996 to October 2001.
The investigation began in 2013, when the FBI learned Duke was trading child pornography, including photos taken during the assaults he committed.
Grissom commended the FBI, Special Assistant U.S. Attorney Robin Graham and Assistant U.S. Attorney Christine Kenney for their work on the case.
Former Bradenton Tax Preparer Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore today sentenced Guy R. Paul to three years in federal prison for engaging in the preparation of false tax returns and for failing to report income he had earned from his tax preparation business. The Court ordered him to pay restitution in the amount of $217,246 to the Internal Revenue Service. He is also permanently barred from preparing tax returns for others.
Paul was indicted on December 28, 2013, and pleaded guilty on April 14, 2015.
According to court documents, between 2008 and April 2013, Paul owned and operated G7 Financial Enterprises, a tax preparation company located in Bradenton. The company also provided additional services, including check cashing, money transfers, and real estate sales. At G7, Paul prepared and filed false and fraudulent tax returns for others. He added false information to his client’s tax returns in order to fraudulently increase the amount of the tax refund. In exchange for his tax preparation services, he charged and collected tax preparation fees. Paul then failed to report the income he had earned on his personal tax returns.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Palmetto Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Former Bank Employee Sentenced to 21 Months’ in Federal Prison for EmbezzlementRead the Press Release
A former employee of Iowa Falls State Bank in Iowa Falls, Iowa, who embezzled $144,181.47 from the bank, was sentenced on July 2, 2015, to federal prison.
Teresa Ann Kobriger, age 42, from Iowa Falls, Iowa, received the prison term after an April 1, 2015, guilty plea to one count of embezzlement by a bank employee.
In a plea agreement, Kobriger admitted that from December 2008 through December 2012, while employed by the Iowa Falls Sate Bank in a position equivalent to a head teller, she embezzled $144,181.47 from the bank. Kobreger admitted that during this time, she stole money from her teller drawer and the bank vault and then altered bank records in order to conceal her thefts.
Kobriger was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Kobriger was sentenced to 21 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make $ 181,393.63 in restitution. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Kobriger was released on conditions previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation and the Iowa Falls Police Department.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 15-CR-00026.
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Federal Grand Jury Indicts Midland Firearms DealerRead the Press Release
Today, federal authorities in Midland arrested 26-year-old Paul Allen Peters, owner of Jack of All Trades Tactical & Supply, for firearms violations announced Acting United States Attorney Richard L. Durbin, Jr. and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Robert R. Champion, Dallas Division.
A 21-count federal grand jury indictment, returned last month and unsealed today, charges Peters, who now resides in San Marcos, TX, with five counts of wire fraud; four counts of unlawful transfer of a machine gun; six counts of illegal sale of a handgun to a minor; five counts of failure to keep proper records; and, one count of making a false statement to an investigating agent.
As a Federal Firearms Licensee (FFL), Peters is subject to record keeping requirements related to the acquisition and sale or other disposition of firearms including having the purchaser complete an ATF Form 4473 prior to the sale, transfer or delivery of that firearm. FFL’s must retain those ATF forms and any supporting documents for at least 20 years after a sale or transfer is completed. Peters is also required to transfer firearms in accordance with the National Firearms Act (NFA). Specifically, FFL’s are not allowed to transfer firearms restricted under the NFA, such as fully automatic firearms or “machine guns”, without the proper application being filed and the fee paid by the purchaser.
The indictment alleges that on five separate occasions between May 2013 and September 2014, Peters sent by wire a fraudulent ATF form 4473 to the National Tracing Center in West Virginia concerning the transfer of firearms. Peters, allegedly, also sold four machine guns in 2012 without the proper application being filed and the fee paid by the purchaser. The indictment also alleges that on six separate occasions between September 2011 and March 2012, Peters sold a pistol to an individual he knew, or had cause to believe, was younger than 21 years of age. The indictment further alleges that Peters failed to keep records on various firearms sales by not recording the purchaser’s name, age, and place of residence as required by law. The indictment also alleges that Peters provided false information when questioned by investigators on November 4, 2014. According to the indictment, Peters understated the true figure when he told investigators that he transferred approximately 30 to 40 firearms without completing the required firearm transfer process.
Wire fraud calls for up to 20 years imprisonment and the unlawful transfer of a machine gun calls for up to ten years imprisonment upon conviction. Each remaining charge calls for up to five years imprisonment upon conviction.
Today’s arrest and the indictment resulted from an investigation conducted by the ATF. Assistant United States Attorney LaTawn Warsaw is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Fairfax Nursing Center Agrees to Settle Claim That It Failed to Provide Effective Communication Services to Individuals Who Are DeafRead the Press Release
ALEXANDRIA, Va. – Fairfax Nursing Center (FNC) has agreed to pay $97,500 to resolve allegations that it violated the Americans with Disabilities Act (ADA) by failing to provide effective communication services to individuals who are deaf or hard of hearing in the provision of medical services.
The investigation began with a complaint from the public alleging that FNC violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to two individuals who are deaf (two family members of a patient) during critical interactions relating to the patient’s medical care. The complainants alleged that because of FNC’s failure to provide sign language interpreter services, these individuals were denied the benefit of effective communication with the skilled nursing facility’s clinical staff and the opportunity to effectively participate in treatment decisions.
“This office is committed to protecting the rights of those who are deaf or hard of hearing and to ensure that they are able to communicate with health care professionals, especially when patients and their companions have critical interactions with medical providers,” said U.S. Attorney Boente.
The agreement requires FNC to provide training to the skilled nursing facility’s staff on the requirements of the ADA; to adopt specific policies and procedures to ensure that auxiliary aids and services are provided promptly to patients and companions who are deaf or hard of hearing; pay $80,000 in compensatory damages to the two aggrieved individuals; establish a fund with $12,500 to sponsor training on the ADA’s requirements for others in the Virginia nursing facility industry; and pay $5,000 to the United States in order to vindicate the public interest.
This matter was investigated by Assistant U.S. Attorney Steven Gordon.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, at www.ada.gov/hospcombr.htm. For more information on the ADA and to access these publications, visit ADA.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed by email to [email protected].
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. The settlement document for this case and others, under the Barrier-Free Health Care Initiative, may be found on ADA.gov.
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District Man Sentenced to 8 1/2 Years in Prison for Series of Robberies of BusinessesRead the Press Release
WASHINGTON – Quincy Lamont Bufford, 38, of Washington, D.C., was sentenced today to an 8 ½-year prison term for robbing three businesses, including two banks, in Southeast Washington within a 10-day period in 2013, announced Acting U.S. Attorney Vincent H. Cohen, Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Bufford pled guilty in March 2015, in the U.S. District Court for the District of Columbia, to two counts of bank robbery and one count of interference with interstate commerce by robbery. He was sentenced by the Honorable Christopher R. Cooper. Upon completion of his prison term, Bufford will be placed on three years of supervised release. He also was ordered to pay $1,699 in restitution.
According to the government’s evidence, the first robbery took place on July 8, 2013 at approximately 12:35 p.m. Bufford entered the Boost Mobile, in the 2400 block of Good Hope Road SE, placed his hands on the counter, and told an employee, “Give me your money.” After an employee questioned him, Bufford responded, “Make it easy on yourself and just give me the money.” When the employee told Bufford that they did not have any money and that he would have to speak to the store manager, Bufford became angry, reached over the counter, opened the cashier’s drawer, and forcefully took $649, putting it in his pants pocket before walking out.
The second robbery took place on July 15, 2013, at about 11:25 a.m. This time, Bufford entered the Sun Trust Bank in the 1300 block of Good Hope Road SE and pressed a demand note up against the glass. The note stated, in part, “Put money in bag or I’ll kill someone.” As the bank teller began to fumble with her drawer, Bufford pointed at her and stated, “Don’t stall me.” The bank teller took out bundles of loose bills, at which point Bufford stated, “That’s enough.” The bank teller handed Bufford approximately $890. Bufford stated, “Call the police and I’m goin’ kill you” before exiting the bank. The bank robbery was captured on bank surveillance video. Following the robbery, law enforcement processed the doors, glass, and counter inside the bank for fingerprints. A fingerprint and palm print later were found to match Bufford.
The third robbery occurred on July 17, 2013, at about 10:35 a.m. Bufford entered the PNC Bank in the 4100 block of South Capitol Street SE and went directly to the teller line. Once again he presented a threatening demand note. The bank teller hit the panic alarm, and then pulled $50’s and $20’s from his drawer and placed them on the counter. Defendant Bufford then stated, “Hurry up, I’m serious,” to which the bank teller responded, “this is all I got” before sliding approximately $160 under the dividing glass. Bufford put the money in his pants pocket before exiting the bank. The bank robbery was captured on bank surveillance video. Following the robbery, law enforcement processed the doors, glass, and counter inside the bank for fingerprints. Four fingerprints and one palm print later were determined to match Bufford.
Less than three hours after this robbery, Bufford returned to Boost Mobile and attempted to reach over the counter to remove cash from the cashier drawer. Store employees recognized him from the July 8 robbery and chased him out of the store.
In announcing the sentence, Acting U.S. Attorney Cohen, Assistant Director in Charge McCabe, and Chief Lanier commended the work of those who investigated the case from the FBI’s Washington Field Office and MPD. They also expressed appreciation for the assistance of the FBI Laboratory’s Latent Print Operations Unit. In addition, they acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Legal Assistant Holly Crouse and former Paralegal Specialist Starla Stolk, as well as Assistant U.S Attorney Arvind Lal and former intern Joseph Drummey, of the Asset Forfeiture and Money Laundering Section. Finally, they thanked Assistant U.S. Attorney David B. Kent, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the case.
District Man Sentenced to 13 Years in Prison for Sexually Assaulting Three Step-GrandchildrenRead the Press Release
WASHINGTON – A 51-year-old man from Washington, D.C., has been sentenced to a 13-year prison term on charges stemming from sexual assaults he committed against three step-grandchildren, Acting U.S. Attorney Vincent H. Cohen, Jr. announced today.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in May 2015, in the Superior Court of the District of Columbia, to one count of first-degree child sex abuse and two counts of attempted first-degree child sex abuse. He was sentenced on July 1, 2015, by the Honorable Lynn Leibovitz. After his prison term, the defendant will be placed on lifetime supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, the defendant hosted his former wife's three grandchildren at his apartment in Northeast Washington in the summer of 2012. During the visit, the grandsons – then 4, 6 and 10 years old - were sexually assaulted by the defendant.
In announcing the sentence, Acting U.S. Attorney Cohen praised the work of those who investigated the case from the Metropolitan Police Department’s Youth Division. He also expressed appreciation for the work of the child abuse experts at the Child and Adolescent Protection Center at Children’s National Medical Center, as well as the Children’s Advocacy Center, which conducted the child forensic interview and provided other critical services to the victim. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Child Forensic Interview Specialists Tracy Owusu and Karen Giannakoulias; Paralegal Specialist Tiffany Jones, Victim/Witness Advocates Veronica Vaughan and Tracey Hawkins, the Child Waiting Room staff of the Victim/Witness Assistance Unit, and Legal Intern Lauren Eastman. Finally, he commended the work of Assistant U.S. Attorney Kenya K. Davis, who investigated and prosecuted the case.
Detroit man pleads guilty - tried to hide heroin in police carRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who participated in a Huntington heroin distribution conspiracy in 2013 and 2014 pleaded guilty today to a federal drug charge, U.S. Attorney Booth Goodwin announced. Khaleef Teron Chandler, 21, entered a guilty plea to possession with intent to distribute heroin. Chief United States District Judge Robert C. Chambers conducted the plea hearing.
On August 31, 2013, officers with the Huntington Police Department responded to a report of an altercation at 747 Washington Avenue in Huntington. Officers encountered Chandler at the residence. While talking with officers, Chandler attempted to conceal a plastic bag containing heroin.
Several months later, on February 9, 2014, Chandler was a passenger in a vehicle driven by Lakeisha Sherrell Williams that was stopped in Lawrence County, Ohio, by the Ohio Highway Patrol. Chandler and Williams were placed in the rear seat of a patrol vehicle during the stop. While in the police vehicle, Chandler and Williams attempted to conceal approximately 96 grams of heroin by stuffing it under the seat. Chandler and Williams were transporting the heroin from Detroit to Huntington, where they planned to distribute it. Chandler admitted as part of his plea that he distributed heroin in the Huntington area from August 2013 to February 2014.
Williams was previously sentenced to 37 months in federal prison in December 2014 for her role in the heroin conspiracy.
Chandler faces up to 20 years in federal prison and is scheduled to be sentenced on October 5, 2015.
The Huntington FBI Drug Task Force conducted the investigation with assistance from the Huntington Police Department, Cabell County Sheriff’s Department and Ohio Highway Patrol. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Conroe Family Handed Federal Prison SentencesRead the Press Release
HOUSTON – The final member of the Irsan family charged in relation to a conspiracy to defraud the United States has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Ali Irsan, 58, a former citizen of Jordan and naturalized U.S. citizen residing in Conroe, pleaded guilty April 3, 2015.
Today, U.S. District Judge Lynn H. Hughes ordered Irsan to serve a total of 45 months in federal prison for the conspiracy. He was further ordered to pay $290,651 in restitution. His wife, Shmou Ali Al Rawabdeh, 38, and daughter, Nadia Irsan, 31, were convicted of providing false statements in association with the fraud scheme and were each previously sentenced to 24 months imprisonment.
Ali Irsan and members of his family received Supplemental Security Income (SSI), which is needs-based benefit provided by the Social Security Administration (SSA). SSI pays monthly benefits to the disabled, who do not have resources (no more than $2,000 if single and $3,000 if married). An individual with resources, excluding a home and a car, is ineligible for SSI.
On or about September 2002, Ali Irsan applied for SSI benefits claiming he was disabled and had been unable to work since 1990. His wife also claimed a disability and began receiving benefits in 2005. However, the Irsan family failed to report that Ali Irsan maintained a bank account in Jordan with a balance that fluctuated from approximately $4,000 to $16,000. Also, in January 2010, Ali Irsan received a settlement check for $75,000, which he failed to report to the SSA.
Irsan’s wife and daughter falsified documents in order to aid the fraud scheme involving the disability benefits. Nadia Irsan, who was unemployed, had a checking account with deposits of more than $250,000.
All are currently in custody and are also facing unrelated charges in Harris County. They are expected to be transferred to a U.S. Bureau of Prisons facility upon resolution of those alleged offenses.
The fraud investigation was a combined effort by SSA - Office of Inspector General, FBI, Homeland Security Investigations, Montgomery County Sheriff’s Office with assistance from several other state and federal agencies. Assistant U.S. Attorneys Jim McAlister and Mark McIntyre prosecuted the federal case.
Columbus felon pleads guilty to illegally possessing pistolRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Randall Lee Walker Jr., 38, of Columbus, Ohio, entered a guilty plea to being a felon in possession of a firearm. Walker admitted that on June 2, 2014, he had a .45 caliber Glock pistol in his backpack at the Greyhound bus station in Charleston.
Officers with the Charleston Police Department responded that day to a 911 call reporting a suspicious person with a gun at the bus station. Walker was approached by the officers. He admitted that he had the pistol and turned it over to them. Walker had previously been convicted of burglary and felony possession of cocaine in South Carolina and thus was prohibited from possessing the gun.
Walker faces up to ten years' imprisonment when he is sentenced on October 15, 2015, by United States District Court Judge Thomas E. Johnston.
This case was investigated by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
Cleveland man indicted for straw purchase of a firearmRead the Press Release
A federal grand jury returned a one-count indictment charging Walter Jackson, 49, of Cleveland, with making false statements in the acquisition of a firearm, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Specifically, the indictment alleges that Walter Jackson, a convicted felon, used another individual as a straw purchaser of a firearm from Atlantic Gun & Tackle in Bedford Heights, Ohio. Walter accomplished his scheme by having the straw purchaser lie on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form, stating that she was the actual buyer and recipient of the firearm.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
If convicted, the defendant’s sentence will be determined by the court after consideration of the federal sentencing guidelines that depend upon a number of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial where it is the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man charged for armed robbery in Cleveland HeightsRead the Press Release
A two-count indictment was filed charging a Cleveland man for his role in an armed robbery in Cleveland Heights, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Keyonte Oates, aka Keyontae Berry, aka “Pacco,” 23, of with one count of interference with commerce by means of robbery and one count of using and carrying a firearm during and In relation to a crime of violence.
The indictment alleges that Oates, Monroe (named but not charged in the present indictment), and other unknown individuals, attempted to rob a Family Dollar store in Cleveland Heights, Ohio, on September 23, 2014. It further alleges that Monroe, aided and abetted by Oates, carried and brandished a firearm during the incident.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases the sentence will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division, and the Cleveland Heights Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Child Sex Trafficker Gets Ten YearsRead the Press Release
SAN DIEGO – Lamar Moore, a.k.a. “El Brivv,” a.k.a. “Briv,” a twenty-four year-old resident of San Diego, was sentenced today to 120 months in prison for trafficking two minor girls for commercial sex.
In February 2014, Detectives Chris Haughey and Eric Drilling, members of the San Diego Police Human Trafficking Team, rescued a 17-year-old girl from Moore at a local motel. They then arrested Moore.
Moore pleaded guilty on October 9, 2014. In his plea agreement, he admitted that he coerced the rescued 17-year-old, and a second, 15-year-old victim, to engage in commercial sex for his financial benefit. He also provided hotel rooms, condoms, and internet advertisements for their sexual services. Moore received hundreds of dollars in proceeds from the victims’ acts of prostitution.
Moore’s crimes were part of a criminal enterprise which he led that involved two additional minor males, one additional adult male, and two additional adult females. Since his arrest, one of those males – a San Diego resident named Darius Chambers – has also pled guilty to child sex trafficking. Another – San Diegan named Daijon Vailes – has been arrested and charged with the same offense. Chambers will be sentenced on July 31, 2015 by U.S. District Judge Janis L. Sammartino. Vailes entered a plea of not guilty and awaits trial.
United States Attorney Laura Duffy said, “We take these crimes very seriously. If you traffic a child for commercial sex in the Southern District of California, you should expect to spend many, many years in federal prison.”
DEFENDANT Case Number: 14CR1754-AJB Lamar Moore Age: 24 CHARGESChild sex trafficking, in violation of Title 18, United States Code, Section 1591
INVESTIGATING AGENCIES
Maximum penalty: LifeSan Diego Police Department
Cedar Rapids Man Pleads Guilty to Being a Felon and Unlawful Drug User in Possession of a Loaded HandgunRead the Press Release
A two-time felon and unlawful drug user who was found in possession of a loaded handgun during a traffic stop pled guilty today to a firearms offense in federal court in Cedar Rapids.
Anthony Hall, Jr., age 30, from Cedar Rapids, Iowa, was convicted of being a felon and unlawful drug user in possession of a firearm.
In a plea agreement, Hall admitted that Cedar Rapids Police Officers stopped him for a traffic violation on April 13, 2015. Hall lied about his true identity when questioned by the officers. When officers smelled marijuana coming from the car, they searched the car and found a loaded .40 caliber handgun in the center console, along with several baggies of marijuana. When officers moved to arrest Hall, he fought with the officers until they deployed a taser to subdue him. Hall has two prior felony convictions. In 2009, he was convicted in Linn County of Delivery of a Controlled Substance, and in 2003, he was convicted of Robbery in Austin, Texas. Hall also admitted to being an unlawful user of marijuana.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hall remains in custody of the United States Marshal pending sentencing. Hall faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Cedar Rapids Police Department and the FBI Safe Streets Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-55-LRR. Follow us on Twitter @USAO_NDIA.
Bulgarian Citizen Admits Role in $6 Million Tax Refund SchemeRead the Press Release
NEWARK, N.J. – A citizen of the Republic of Bulgaria today admitted his involvement in a $6 million fraudulent tax return scheme that used personal identifying information stolen from multiple accounting firm networks, U.S. Attorney Paul J. Fishman announced.
Vanyo Minkov, 32, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a superseding information charging him with one count of conspiring to file false and fraudulent tax returns.
According to documents filed in this case and statements made in court:
In late 2012, Minkov and his conspirators hacked into the networks of at least four accounting firms and stole the 2011 tax filings for over 1,000 of the firms’ clients. Minkov and others then used the stolen information to file fraudulent tax returns in the clients’ names for the 2012 tax year or sold the information to others for the same purpose. To date, the IRS has identified over $6 million in fraudulent claims made in connection with the scheme.
The charge to which Minkov pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 13, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Carl Agnelli, and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s plea. U.S. Attorney Fishman also thanked the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, the Justice Department’s Office of International Affairs in Washington, as well as the Supreme Cassation Prosecutor’s Office of the Republic of Bulgaria and its law enforcement partners, for their extraordinary support.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Jack Arseneault Esq., Chatham, New Jersey.
Brooklyn Man Pleads Guilty in Manhattan Federal Court to Defrauding Elderly Victims Across New York StateRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALLAH JUSTICE MCQUEEN pled guilty today in Manhattan federal court to conspiracy to commit wire fraud and wire fraud in connection with a scheme that targeted and victimized elderly people across New York State. MCQUEEN, who was arrested in December 2014, entered his plea before U.S. Magistrate Judge Michael H. Dolinger.
Manhattan U.S. Attorney Preet Bharara said: “Allah Justice McQueen had a key role in a conspiracy that preyed on the emotions of vulnerable grandparents, falsely convincing them that their grandchildren were in legal trouble and needed bail money. With his guilty plea, McQueen will be held to account for his role in a heartless scheme that exploited familial love for personal gain.”
According to the Complaint, Superseding Indictment, and plea proceeding:
In or about August and September 2013, MCQUEEN and his co-conspirators perpetrated a scheme to defraud elderly victims around the United States by tricking them into believing their grandchildren had been imprisoned and needed immediate bail money. In particular, in each case, a member of the conspiracy contacted the victim by phone, purported to be a law enforcement official or attorney, and falsely claimed that the victim’s grandchild had been taken into custody for a narcotics offense and would not be released unless the victim paid thousands of dollars, and in some cases tens of thousands of dollars, in purported bail money. A member of the conspiracy also frequently posed on the call as the victim’s grandchild, typically crying and pleading with the elderly victim to send money to secure the grandchild’s release from jail, and asking the victim not to contact any other family members because the grandchild felt ashamed. In each case, in extreme distress, the victim sent thousands of dollars, at a minimum, as instructed, to certain individuals who, among other things, provided that money to MCQUEEN at his direction. In each case, after paying the “bail” money as directed, the victim directly contacted his or her grandchild and thereupon learned that the grandchild had not, in fact, been arrested, that the grandchild knew nothing about the claims made on the call to the victim, and that the call was fraudulent.
For example, a 79-year-old victim in New York received a phone call in August 2013 from an individual who identified himself as a police sergeant and claimed that the victim’s grandson had been arrested after drugs were discovered in a car in which the grandson was a passenger. The purported sergeant said the grandson would be released if the victim sent $6,000 in bail money as directed. The victim, who briefly heard, on the phone, an individual who sounded like the victim’s grandson, wired the money as directed. The victim subsequently spoke directly with the victim’s grandson, and learned that he had not been arrested, and knew nothing about the purported sergeant or the basis for his request for bail money. The victim never received any money back from the purported sergeant.
In fact, the victim’s money was wired to particular individuals working with and at the direction of MCQUEEN who collected the wired funds on MCQUEEN’s behalf and provided the money to MCQUEEN and his co-conspirators. As to a portion of the victim’s money, MCQUEEN appeared personally at a particular location in Brooklyn to arrange for the collection of the proceeds. MCQUEEN subsequently deposited another portion of the money sent by the victim directly into his personal bank account.
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MCQUEEN, 33, of Brooklyn, New York, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud. He faces a maximum sentence of 40 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing has been scheduled for November 2, 2015, at 4:30 p.m., before U.S. District Judge Shira A. Scheindlin.
Mr. Bharara praised the outstanding investigative work of the FBI. Mr. Bharara also thanked the Bronx District Attorney’s Office for its assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Elisha Kobre is in charge of the prosecution.
AstraZeneca and Cephalon to Pay $46.5 Million and $7.5 Million, Respectively, for Allegedly Underpaying Rebates Owed Under Medicaid Drug Rebate ProgramRead the Press Release
AstraZeneca LP has agreed to pay the United States and participating states a total of $46.5 million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program, the Justice Department announced today. Of that amount, AstraZeneca will pay roughly $26.7 million, plus interest, to the United States, and the remainder to states participating in the settlement.
In a separate settlement arising out of the same case, Cephalon Inc. has agreed to pay the United States and participating states a total of $7.5 million, plus interest, to resolve similar allegations. Of that amount, Cephalon will pay roughly $4.3 million, plus interest, to the United States, and the remainder to states participating in the settlement.
“The Medicaid Drug Rebate Program relies on drug manufacturers reporting accurate pricing information used in the rebate calculations,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, the head of the Justice Department’s Civil Division. “These settlements demonstrate the Department of Justice’s commitment to ensuring that state Medicaid programs receive the full amount of rebates from manufacturers that Congress intended.”
“We will continue to police the pharmaceutical industry when the Medicaid program overpays for drugs,” said First Assistant U.S. Attorney Louis D. Lappen of the Eastern District of Pennsylvania. “As these settlements demonstrate, it is critical for pharmaceutical manufacturers to comply with requirements of programs such as the Medicaid Drug Rebate Program to ensure that the government and the taxpayers are treated fairly in the reimbursement process.”
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The quarterly rebates are based, in part, on the Average Manufacturer Prices (AMPs) that the manufacturers report to the government for each of their covered drugs. Generally, the higher the reported AMP for a drug, the greater the rebate the manufacturer pays to state Medicaid programs for the drug. These settlements resolve allegations that AstraZeneca and Cephalon underreported AMPs for a number of their drugs by improperly reducing the reported AMPs for service fees they paid to wholesalers. As a result, the government contends that AstraZeneca and Cephalon underpaid quarterly rebates owed to the states and caused the United States to be overcharged for its payments to the states for the Medicaid program.
The two settlements partially resolve a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The amounts to be received by the whistleblower in this suit, Ronald J. Streck, a pharmacist, have not yet been determined.
These settlements illustrate the government’s emphasis on combating health care fraud and mark 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 $24.8 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlements with AstraZeneca LP and Cephalon Inc. were the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Pennsylvania and the Department of Health and Human Services-Office of Inspector General.
The lawsuit is captioned United States ex rel. Streck v. Allergan, Inc., et al., Case No. 08-cv-5135 (E.D. Pa.). The claims settled by these agreements are allegations only, and there have been no determinations of liability.
AstraZeneca and Cephalon to Pay Millions for Allegedly Underpaying Medicaid RebatesRead the Press Release
PHILADELPHIA – AstraZeneca LP has agreed to pay the United States and participating individual states a total of $46.5 million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program, the Justice Department announced today. Of that amount, AstraZeneca will pay roughly $26.7 million, plus interest, to the United States, and the remainder to states participating in the settlement.
In a separate settlement arising out of the same case, Cephalon Inc. has agreed to pay the United States and participating states a total of $7.5 million, plus interest, to resolve similar allegations. Of that amount, Cephalon will pay roughly $4.3 million, plus interest, to the United States, and the remainder to states participating in the settlement.
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The quarterly rebates are based, in part, on the average manufacturer prices (AMPs) that the manufacturers report to the government for each of their covered drugs. Generally, the higher the reported AMP for a drug, the greater the rebate the manufacturer pays to state Medicaid programs for the drug. These settlements resolve allegations that AstraZeneca and Cephalon underreported AMPs for a number of their drugs by improperly reducing the reported AMPs for service fees they paid to wholesalers. As a result, the government contends that AstraZeneca and Cephalon underpaid quarterly rebates owed to the states and caused the United States to be overcharged for its payments to the states for the Medicaid program.
The settlements were announced today by First Assistant United States Attorney Louis D. Lappen and the Department of Justice. “We will continue to police the pharmaceutical industry when the Medicaid program overpays for drugs. As these settlements demonstrate, it is critical for pharmaceutical manufacturers to comply with requirements of programs such as the Medicaid Drug Rebate Program to ensure that the government and the taxpayers are treated fairly in the reimbursement process,” said Lappen.
The settlements partially resolve a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The amount to be received by the whistleblower in this suit, Ronald J. Streck, a pharmacist, has not yet been determined.
“The Medicaid Drug Rebate Program relies on drug manufacturers reporting accurate pricing information used in the rebate calculations,” said Benjamin C. Mizer, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. “These settlements demonstrate the Department of Justice’s commitment to ensuring that state Medicaid programs receive the full amount of rebates from manufacturers that Congress intended.”
For the United States Attorney’s Office for the Eastern District of Pennsylvania, this investigation and settlements were handled by Assistant United States Attorney Eric D. Gill. The United States’ investigation and settlements were also conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division. The claims settled by these agreements are allegations only, and there has been no determination of liability. The lawsuit is captioned United States ex rel. Streck v. Allergan, Inc., et al., Case No. 08-cv-5135 (E.D. Pa.).
These settlements 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 $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
Aplington Woman Pleads Guilty to Social Security FraudRead the Press Release
A woman who committed Social Security Fraud for approximately eleven years pled guilty on July 2, 2015, in federal court in Cedar Rapids.
Angela Carmichael, 49, from Aplington, Iowa, was convicted of one count of Supplemental Security Income Benefits Fraud.
In a plea agreement, Carmichael admitted that, between June 2003 and June 2014, she hid the fact from the Social Security Administration that she was living with her husband in order to continue to receive Supplemental Security Income benefits. Carmichael admitted she lied to the Social Security Administration in order continue to receive benefits to which she would not have been entitled if the Social Security Administration knew she was living with her husband. During this period of time, Carmichael received over $68,000 in benefits to which she was not entitled.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Carmichael remains free on conditions of release previously set pending sentencing. Carmichael faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Social Security Administration Office of Inspector General.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-2010.
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Andover Man Sentenced for Mishandling ChemicalsRead the Press Release
WICHITA, KAN. - A co-owner of a plastics recycling company in El Dorado, Kan., pleaded guilty Monday to mishandling waste chemicals and was sentenced to pay more than $118,000 in restitution to the Environmental Protection Agency, said U.S. Attorney Barry Grissom. In addition, the defendant was sentenced to serve 18 months on probation.
Sean M. Riley, 39, Andover, Kan., co-owner of Integrated Plastic Solutions, LLC., pleaded guilty to one count of aiding and abetting negligent exposure to a hazardous air pollutant. In his plea, he admitted the company stored hazardous wastes at its facility in the form of paints, solvents and other chemicals. The paints and solvents contained ethylbenzene, which is classified as a hazardous air pollutant. After becoming aware that the Kansas Department of Health and Environment was investigating the company’s waste handling practices, Riley’s brother and business partner, Brian J. Riley, allowed some paints and solvents to be dumped on the IPS grounds, releasing ethyl benzene and exposing employees to the risk of flash fire and explosion.
Brian J. Riley was sentenced in May to three years on probation and the same restitution as Sean M. Riley.
Grissom commended the Environmental Protection Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.
Amarillo Woman Admits Embezzling from Road Construction Company EmployerRead the Press Release
AMARILLO, Texas — Becky Renee Kite, 37, of Amarillo, Texas, appeared in federal court this morning before U.S. District Judge Mary Lou Robinson and pleaded guilty to one count of embezzlement from a federally-funded program, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Kite, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case, from November 2013 until approximately February 2015, Kite embezzled approximately $71,011.13 from her employer, Gilvin-Terrill, Ltd., an organization that received federal assistance from the U.S. Department of Transportation, through the Texas Department of Transportation. Kite was an agent of Gilvin-Terrill in that she was employed as a contract administrator and accounts payable clerk for the road construction company.
Kite admitted using the company Chase credit cards for personal expenses without permission and changing account preferences so that she could take out cash advances from one card. Kite further admitted changing the account preferences to where the statements would be mailed to her, instead of the office. She also admitted making payments to Chase electronically from Gilvin-Terrill’s operating account. An analysis of credit card statements shows that Kite conducted a total of 759 unauthorized transactions totaling $71,011.13.
The Federal Bureau of Investigation investigated. Assistant U.S. Attorney Joshua Frausto is prosecuting.
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Amarillo Man Admits Robbing Amarillo National BankRead the Press Release
AMARILLO, Texas — An Amarillo, Texas, man appeared in federal court today and admitting robbing a branch of Amarillo National Bank (ANB) in March 2015, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
William Eugene Boyd, 51, appeared before U.S. District Judge Mary Lou Robinson and pleaded guilty to one count of bank robbery. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case today, on March 13, 2015, a robber, later identified as Boyd, approached a teller at the ANB located at 2401 S. Coulter, in Amarillo, and told her, “This is a robbery.” He instructed her to give him all the money, nothing marked, and not make a sound. He told her that if she handed over all her money she would not get hurt, and he kept his left hand by his waistband, making her fearful he had a weapon. The teller complied with his instructions and Boyd left the bank with the case.
After providing surveillance photographs to the media that were broadcast to the public, Arlington Police Department investigators received several tips from Boyd’s friends/family members identifying him as the robber. Investigators located a hat matching the color and style of the one Boyd wore during the robbery in a vehicle registered to Boyd’s mother, and bank employees later identified him in a photo line-up.
The Federal Bureau of Investigation and the Amarillo Police Department investigated.
Assistant U.S. Attorney Joshua Frausto is prosecuting.
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Albuquerque Man Arrested on Federal Sex Trafficking ChargesRead the Press Release
ALBUQUERQUE – Shane Roach, 25, of Albuquerque, N.M., appeared in federal court this morning on a criminal complaint charging him with sex trafficking charges. Roach remains in federal custody pending a detention hearing scheduled for July 8, 2015.
Roach was arrested by federal authorities on July 1, 2015, on a criminal complaint charging Roach and co-defendant Angela Santillanes, 30, also of Albuquerque, with commercial sex trafficking. The complaint alleges that the victim who allegedly was sex trafficked by Roach and Santillanes contacted the Albuquerque Police Department (APD) with a request for help on June 10, 2015. During subsequent interviews, the victim reported she had been trafficked for sex by Roach for approximately a month and a half. During that time, the victim allegedly was forced to engage in sex with men four or five times a day earning between $400.00 and $500.00, and Roach allegedly kept all the money. During that time, Roach allegedly beat the victim on a number of occasions, and threatened to harm her family if she left him.
Both Roach and Santillanes were previously arrested on state human trafficking charges and other offenses. Santillanes has yet to be arrested on the charges in the federal criminal complaint.
If convicted of the offenses charged in the federal criminal complaint, Roach and Santillanes each face a mandatory minimum of 15 years and a maximum of life in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of Homeland Security Investigations and APD’s Vice Unit. Assistant U.S. Attorney Norman Cairns is prosecuting the case.
Akron men indicted for extortion plotRead the Press Release
A federal grand jury returned a six-count indictment charging Franklin D. Conley, 27, and Patrick W. Griffin, 28, both of Akron, with conspiracy to affect commerce by extortion and use of a communications facility to facilitate a drug trafficking offense, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Conley and Griffin began threatening the victims and their family in February 2015 with serious physical harm or death if they were not given money or introduced to a source of illegal drugs, according to the indictment.
They were arrested after investigation revealed the extortion plot.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Teresa Riley.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
A Waterloo Felon and Female Friend Plead Guilty to Obstruction of Justice for Providing a False Letter to Federal CourtRead the Press Release
A man and woman who created a false letter to be provided to a federal court pled guilty to obstruction of justice in federal court in Cedar Rapids.
Asa Adams, age 26, from Waterloo, Iowa, pled guilty on June 29, 2015, to obstruction of justice. Nicole Wells, age 36, from Waterloo, Iowa, pled guilty on July 6, 2015, to the same charge.
In plea agreements, Adams and Wells admitted that they worked together to create a false letter to be presented in federal court in a failed attempt to help Adams evade a revocation of his supervised release. Adams was convicted in 2011 of being a felon in possession of a firearm. After serving a sixteen-month sentence in federal prison, Adams was placed on supervised release on October 2, 2014. One of the conditions imposed on supervised release was that Adams not use controlled substances. His use was tested by random urinalysis. On December 24, 2014, Adams submitted a urine sample that tested positive for marijuana. In an attempt to evade having his supervised release revoked and being sent back to prison, Adams recruited his coworker and friend, Nicole Wells, to fabricate a false letter. The letter, purportedly written by a supervisor at the restaurant where Adams and Wells worked, falsely claimed another employee had brought in marijuana-laced brownies to work. The letter was not written by the supervisor and there were no marijuana-laced brownies.
Adams provided the false and fictitious letter to his defense attorney, who unwittingly filed it with the federal court as an exhibit. At a hearing on a petition to revoke Adams’s supervised release, however, the letter was shown to be false when the supervisor and employee who allegedly brought the brownies to work testified. The court found Adams had tested positive for marijuana because he had used marijuana, and sentence Adams to a year in federal prison for violating the terms of his supervised release.
Sentencing before United States District Court Chief Judge Linda R. Reade for the obstruction of justice conviction will be set after a presentence report is prepared. Adams remains in custody of the United States Marshal pending sentencing. Wells remains released on bond pending sentencing. Adams and Wells each face a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-42-LRR.
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