Northern District of Oklahoma

United States Attorney Trent Shores announced today that a Tulsa man was ordered to federal prison for defrauding a bank of nearly $5 million and for bankruptcy fraud. In December, Zealand Benjamin Thigpen III, 68, pleaded guilty in U.S. District Court to defrauding Arvest Bank of $4,754,488 from 2015 to 2017.

U.S. District Judge Claire V. Eagan sentenced Thigpen to 33 months in prison to be followed by five years of supervised release. Judge Eagan further ordered a criminal forfeiture money judgement in the sum of $4,754,488.40 representing proceeds obtained through his crimes.

“Thigpen swindled millions. He perpetrated a fraud on both Arvest Bank and the Small Business Administration. While he sits in federal prison for the next 33 months, the United States Attorney’s Office will return his illegally begotten proceeds to the victims of his fraud,” said U.S. Attorney Shores. “I commend the investigators from the Department of Treasury and Small Business Administration, along with Assistant U.S. Attorney Kevin Leitch. They discovered and exposed Thigpen’s scheme, then brought him to justice.”

As part of his scheme, Thigpen owned and operated Julimar Trading, LLC., which bought and sold refined metal alloys, principally for the production of steel. Julimar’s operations were funded by Avrest Bank and, in part, guaranteed by the Small Business Administration. The bank financing was secured by his company’s inventory and accounts receivable, as well as Thigpen’s personal guarantees. When submitting financial documentation to the bank on October 4, 2016, Thigpen provided false information about the value of Julimar’s inventory and accounts receivable, explaining the inventory was worth $5,816,335. As a result, Arvest and Small Business Administration continued his line of credit under false pretenses. In fact, the accounts receivable and inventory were nearly non-existent.

Later, on November 18, 2016, Thigpen filed pursuant to Chapter 7 in U.S. Bankruptcy Court, and once again lied about Julimar’s inventory, stating that it was worth just over $3.3 million, when he was fully aware it only totaled only a few thousand dollars.

Thigpen was remanded int0 the custody of the U.S. Marshals Service until transfer into a U.S. Bureau of Prisons facility.

This case resulted from a joint investigation performed by the Offices of Inspectors General of the Department of the Treasury and the Small Business Administration and was prosecuted by Assistant U.S. Attorney Kevin C. Leitch

Assistant U.S. Attorney Shannon Cozzoni, Tribal Liaison for the U.S. Attorney’s Office in the Northern District of Oklahoma, was one of 172 members of the Department of Justice recognized by Deputy Attorney General Jeffrey Rosen, and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV, at the 35th Director’s Awards Ceremony today in Washington, D.C.

The Northern District of Oklahoma was one of 31 districts represented at the ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building. Cozzoni was recognized for her superior performance as Tribal Liaison in Indian Country.

Deputy Attorney General Jeffrey Rosen addressed the recipients and guests, saying, “Today’s honorees have earned the esteem of their colleagues.  But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”

“The Department of Justice is in truth a deployed force,” said EOUSA Director James Crowell to the recipients. “Your work isn’t easy, but it is vital to the functioning and enduring nature of our democracy. As federal prosecutors, we are held to a higher standard, a standard that requires us to ensure that we uphold the rule of law and the fundamental rules of fairness in every trial, every settlement, every plea, and every legal argument in which we are involved.”

Cozzoni is a stalwart advocate for justice as the Tribal Liaison to fourteen tribes in the Northern District of Oklahoma. Cozzoni has strengthened the relationship between the U.S. Attorney’s Office and the Tribes, and likewise, she has expanded the collaborative partnership between federal, state, local, and tribal authorities.

“Assistant U.S. Attorney Shannon Cozzoni isn’t just a great Indian Country prosecutor, she’s a great person. This national recognition was well deserved and hard earned. I am incredibly proud to have her on our team,” said U.S. Attorney Trent Shores of the Northern District of Oklahoma. “AUSA Cozzoni exhibits excellence in the courtroom and shows genuine care for victims of violent crime. She regularly goes above and beyond the call of duty to help Native American women and children who are victims of domestic violence or sexual abuse. As our Tribal Liaison, she ensures that the United States upholds its federal trust responsibilities to Native Americans. AUSA Cozzoni does it all. She is truly an outstanding advocate for justice in Indian Country.”

As Tribal Liaison, Cozzoni prosecutes cases involving Native American victims and defendants, and she educates legal and law enforcement professionals on justice issues affecting communities in Indian Country. During the past year, Cozzoni organized and led victim service roundtables for tribal and state law enforcement and victim service providers. She also developed and taught accredited, joint training courses to tribal and local police departments in eleven counties, covering topics like cross-deputization agreements, domestic violence, and the opioid epidemic. Cozzoni further orchestrated three days of meetings for the Native American Issues Subcommittee to the Attorney General’s Advisory Committee, which were held at the Muscogee (Creek) and Cherokee Nations in Oklahoma. In hosting the 32 U.S. Attorneys who serve Native American and Alaska Native communities, Cozzoni developed an agenda focused on violent crime reduction, opioid abuse enforcement, victims’ rights, and white-collar crimes in Indian Country.

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

Two Assistant United States Attorneys have been named Prosecutors of the Year by the Oklahoma Gang Investigators Association (OGIA), announced Trent Shores, U.S. Attorney for the Northern District of Oklahoma, and Timothy Downing, U.S. Attorney for the Western District of Oklahoma. The recipients were announced at the OGIA’s 23rd Annual Gang Conference on Jun. 18, in Tulsa.

Assistant U.S. Attorneys Dennis A. Fries and Nicholas J. Patterson were recognized for their extensive prosecutorial work involving members and associates of the Universal Aryan Brotherhood (UAB), a “whites only” prison-based gang with members operating inside and outside of state prisons throughout Oklahoma. Investigations in the Northern and Western Districts of Oklahoma have resulted in the federal prosecution of dozens of UAB members. Fries’ and Patterson’s efforts demonstrate unwavering commitment to the security of communities across Oklahoma and the administration of justice. 

“I am pleased to see Assistant U.S. Attorney Dennis Fries recognized for his exemplary work prosecuting gang cases,” said U.S. Attorney Shores. "From prosecuting white supremacist prison gangs to violent street gangs and international drug trafficking organizations, Dennis has proven himself to be a dedicated public servant and stalwart advocate for justice. We are proud of his efforts to keep Oklahomans safe from organized crime.”

“AUSA Patterson has served the people of Oklahoma well by establishing a strong working relationship with federal, state, and local law enforcement and by prosecuting violent UAB members vigorously,” said U.S. Attorney Downing.  “My office will continue to bring criminal cases with hefty sentences against violent gang members to make our entire district safer.”

In the Northern District of Oklahoma, Fries indicted 18 key members and associates of the Universal Aryan Brotherhood for their roles in operating and supporting a racketeering enterprise. The indictment, unsealed in February 2019, alleged that the UAB committed nine overt acts of murder, kidnapping, the trafficking of methamphetamine and firearms, money laundering, assault, and robbery as part of their racketeering enterprise. While in prison, members of the gang’s main council are alleged to have used contraband cell phones to communicate their orders and further their enterprise. Fries worked extensively with investigators from Homeland Security Investigations and IRS-Criminal Investigation to navigate the complex and considerable processes associated with developing a racketeering prosecution. The lengthy investigation into the UAB’s operations began in 2012, but evidence gathered dates as far back as 2006.

In the Western District of Oklahoma, Patterson has led the successful prosecution of more than 20 UAB members and associates, many of whom had lengthy histories of violent crime.  Three of these cases involved guilty verdicts after jury trials.  Patterson’s UAB cases have generally involved the illegal possession of firearms and drug distribution; they have resulted in the seizure of more than 70 firearms, including machine guns and silencers, as well as large quantities of methamphetamine and heroin.  In just the past two weeks, for example, Patterson’s work has involved the seizure of approximately four kilograms of methamphetamine.  In addition to charging defendants in the Oklahoma City metropolitan area, Patterson has contributed to community safety in more rural areas by charging UAB defendants in, for example, Woodward, Beckham, and Garfield Counties.

These prosecutions are a part of the Project Safe Neighborhoods initiative, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. 

The Oklahoma Gang Investigators Association was established more than 20 years ago. OGIA has taken the lead in gang training around the state. The association is led by federal, state, and local law enforcement gang experts and educates law enforcement as well community groups on the nature and operations of gangs. The group is also involved in charitable donations to gang intervention and prevention organizations.

United States Attorney Trent Shores announced that Andrew Wade Wyrrick, 24, of Owasso, was ordered to prison today for possession with intent to distribute marijuana and to possessing a firearm in furtherance of a drug trafficking crime.

Chief U.S. District Judge John E. Dowdell sentenced Wyrrick to five years in federal prison followed by three years of supervised release.

“I am often asked whether the United States Attorney’s Office prosecutes violations of federal drug laws involving marijuana. This prosecution should answer that question. Andrew Wyrrick dealt large quantities of marijuana on Tulsa’s streets and carried a gun while doing so. His illegal operation facilitated the transportation and distribution of nearly 200 pounds of marijuana to Tulsa communities,” said U.S. Attorney Shores. “Illegal narcotics distribution operations pose a threat to the safety and security of Tulsa’s neighborhoods. There is a societal toll associated with drug addiction that accompanies large-scale distribution operations. Addiction impacts families, relationships, and even economic opportunity. The U.S. Attorney’s Office wants to keep addiction out of our community while also helping to ensure those in need of addiction related treatment are aware of local resources.”

Tulsa police officers initially made contact with Wyrrick during a suspected drug deal. When officers searched his vehicle and questioned the defendant, they found a handgun, more than $2,000, and discovered he was dealing marijuana. They also discovered that he had pleaded guilty just two days earlier to drug distribution. Wyrrick was arrested and later released on bond. Afterward, investigators monitored Wyrrick’s activity, noting that he was continuing to distribute marijuana. He was eventually arrested in April 2018 when he returned from Colorado with duffel bags full of marijuana. At his plea hearing, Wyrrick admitted to traveling to Pueblo, Colorado, in April 2018, to purchase marijuana for the purpose of selling it in northeastern Oklahoma.

Wyrrick is currently in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.

The Tulsa and Owasso Police Departments and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.  Assistant U.S. Attorney Ryan Roberts prosecuted the case.

Over the past two weeks, five defendants have pleaded guilty or have been sentenced in the Northern District of Oklahoma for sex crimes involving minors, announced U.S. Attorney Trent Shores. The prosecutions are part of the Department of Justice’s Project Safe Childhood initiative and come on the heels of Operation Broken Heart, a two-month, nationwide operation that netted almost 1,700 suspected online child sex offenders and identified 308 offenders who either produced child pornography or committed child sexual abuse.

The Project Safe Childhood initiative marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and identifies and rescues victims.

“Our Project Safe Childhood initiative is crucial to ferreting out criminal deviants who try to sexually exploit minors. We conduct local undercover sting operations as well as use cyber-based investigative techniques to identify these child predators,” said U.S. Attorney Shores. “As a prosecutor, I sought justice for victims of child sexual abuse, human trafficking, and child pornography. I know just how important these cases are, which is why we continue to prioritize them. We must get child predators off our streets and behind bars. I’m thankful for the aggressive prosecution of these cases by Assistant U.S. Attorneys Chris Nassar and Shannon Cozzoni. Moreover, our partnerships with local, state, and federal investigators are crucial to protecting children in northern Oklahoma. There is no more righteous cause than protecting children.”

Levi William Welker, 29, of Tulsa, was sentenced to 17 years in federal prison followed by seven years on supervised release for distribution of child pornography, enticing a minor, and tampering with a witness and evidence. In February 2016, Welker shared child pornography using a bit torrent file sharing network. Investigators initially discovered 68 images on a torrent file which was traced to Welker’s IP address. During a search, investigators located more than 7,000 image and video files of child pornography. Welker also admitted that he later used multiple social media apps and communications devices to manipulate and lure two minor children to engage in sexual activity with him. He pretended to be 16 years old and provided the victims with cell phones in order to secretly communicate. When one of the children’s parents became suspicious, they reported Welker to the Tulsa Police Department. After the investigation commenced, police discovered that Welker messaged one of the victim’s social media accounts, asking her to lie to police and destroy evidence. He also destroyed other digital evidence in an effort to thwart the investigation. The Court remanded Welker into the custody of the U.S. Marshals Service pending transfer to a U.S. Bureau of Prisons facility. The FBI and Tulsa Police Department investigated these crimes.

Kenny Wayne Brown, 52, of Gainesville, Texas, was sentenced to 10 years in federal prison followed by 10 years on supervised release for attempted coercion and enticement of a minor. From Sept. 6 to Sept. 28, 2018, Brown unknowingly initiated contact with an Internet Crimes Against Children task force officer from the Bristow Police Department who was posing as a minor female. Using social media, he engaged the “girl” in explicit sexual conversation and sent pornographic images of himself to the “girl.” He eventually arranged to travel from Texas to Bristow, Oklahoma, in order to engage in sexual activity. During the arrest at the arranged location, Brown attempted to flee from officers nearly striking them with his vehicle until he was eventually stopped and arrested. Investigators discovered that Brown was also charged with online solicitation in May 2018 in Texas. The Bristow Police Department conducted the investigation.

Jeffrey Scott Cooper, 46, of Broken Arrow, was sentenced to 87 months in federal prison followed by five years on supervised release for attempted receipt of child pornography. From Dec. 18 to Dec. 20, 2018, Cooper unknowingly made contact with an officer from the Tulsa Police Department’s Cyber Crimes Task Force posing as a minor female. Using a social media app, Cooper started the conversation with what he believed to be a minor female. He then engaged the “girl” in explicit sexual conversation, eventually arranging to meet in order to engage in sexual activity. On Dec. 20, 2018, investigators arrested Cooper after he arrived in his company car at the arranged meeting location. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.

Sean Clarke McCain, 32, of Tulsa, was sentenced to 87 months in federal prison followed by five years on supervised release for attempted receipt of child pornography. From Dec.18 to Dec. 20, 2018, McCain unknowingly made contact with an officer from Tulsa Police Department’s Cyber Crimes Task Force posing as a minor female using an online messaging app and attempted to receive photographs of the “minor” engaged in sexually explicit conduct. He then engaged the “girl” in explicit sexual conversation, eventually arranging to meet in order to engage in sexual activity. McCain was later arrested at the arranged meeting location. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.

Robert Shawn Thomas Davis, 26, of Owasso, pleaded guilty on June 11, to attempted coercion and enticement of a minor. On March 25, 2019, Davis unknowingly initiated contact with an FBI Task Force Officer who was posing as a minor female. Davis engaged the “minor” in sexually explicit conversation, asking to meet her and to bring other children along to engage in sexual activity. He eventually arranged to meet the “minor.”  At his plea hearing, Davis admitted that from March 25 to April 4, 2019, he used a social media app on his phone to attempt to persuade, induce and coerce and entice a what he believed was a 13-year-old girl to engage in sexual activity with him. The Court set sentencing for Sept. 24, 2019. Davis faces a minimum sentence of 10 years in prison The Tulsa Police Department and FBI conducted the investigation.

Following their federal prison sentences, all convicted sex offenders are required to comply with requirements designed to restrict their access to children and to register as sex offenders.

Assistant U.S. Attorney Christopher J. Nassar prosecuted these crimes.

TULSA, Okla. – Three physicians and five marketers have been charged in U.S. District Court with violations of the federal anti-kickback statute and other criminal offenses, announced U.S. Attorney Trent Shores. The men allegedly caused federal health care insurance programs to pay reimbursement costs for fraudulent and expensive compounding drug prescriptions written by recruited doctors in return for kickback payments. The defendants would then use the reimbursed funds for their own financial gain.

“Sadly, the American taxpayer ends up paying the price when unscrupulous medical professionals fraudulently bill federal health insurance. In these cases, patients believed they were receiving a compounded cream that fit their specific medical need. In actuality, the charges allege that the drug mixtures prescribed and received by the patients were designed to line the pockets of criminally corrupt doctors with illegally begotten funds,” said U.S. Attorney Shores. “Every dollar we recover from those who defraud federal health insurance programs will be a dollar that goes back to providing healthcare for Americans served by these programs.”

Dr. Krishna Balarma Parchuri, 44, of Tulsa, is charged in a superseding Indictment along with Christopher R. Parks, 57, of Tulsa, Dr. Gary Robert Lee, 58, of Tulsa, and Dr. Jerry May Keepers, 65, of Kingwood, Texas, with conspiracy to commit health care fraud. Keepers and Parchuri are also charged with soliciting and receiving illegal bribes and kickback payments. Parchuri is further charged with obstructing the criminal investigation into the health care offenses.

The criminal indictment alleges that since November 2012, Parks and Lee, engaged in a conspiracy to unlawfully pay kickbacks and bribes to physicians in order to induce the physicians to write expensive compounding prescriptions to pharmacies they controlled, including OK Compounding LLC, in Skiatook, One Stop RX LLC in Tulsa and NBJ Pharmacy LLC and Airport McKay Pharmacy, both in Houston. The defendants then allegedly submitted large claims for payment to federal health care programs and divided the profits. The defendants are accused of causing Tricare to pay reimbursement for false claims in the total amount of $3,207, 514.97; Medicare in total of $285,776.87; FECA Program in total of $552,544.55; and CHAMPVA in total of $310,273.64.

Compounding prescriptions is a practice in which a pharmacist or physician combines ingredients of multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration (FDA) approved drugs are unsuitable for the patient. They are also more expensive and reimbursed at a far higher rate by federal and private insurance companies. Compounded drugs are not to be mixed or marketed in bulk.

The charges allege that, in some cases, physicians were provided pre-printed prescription pads that listed compounding formula choices. Participating physicians allegedly checked a box with their preferred selection and then faxed it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.

Parchuri, an orthopedic surgeon practicing in Tulsa, Oklahoma, and a doctor of osteopathic medicine licensed in Arizona, Kansas, Oklahoma, Florida, and Texas, received kickbacks and bribes in varying amounts up to $50,000 per month from Parks and Lee in exchange for writing compounded drug prescriptions that were submitted to pharmacies controlled by the two men. 

Keepers allegedly solicited and received more than $860,000 in illegal bribe and kickback payments from Parks and Lee.

According to the indictment, kickback payments were disguised through various sham business arrangements, including contracts where physicians purported to serve as “medical directors” or “consulting physicians” for the pharmacies. Doctors were also recruited as “medical directors” for a university study. In actuality, the sham arrangements were meant to conceal the fact doctors were receiving kickback payments for writing prescriptions. Additionally, limited liability companies (“LLCs”) were created, owned and operated by the corrupt pharmacies/marketers and physicians who submitted the compounding prescriptions. After the pharmacies received payments for the illegal prescriptions, the conspirators transferred the profits to the LLCs to be divided among the conspirators.

Jonathon Yates Boyd III, 47, of Sugarland, Texas, is charged in an Information for conspiring to pay health care kickbacks. In 2012, Boyd formed R&A Marketing LLC, in Houston, Texas, and began recruiting physicians to write prescriptions for compounded drugs. From November 2012 to September 2014, Boyd conspired to pay kickbacks and bribes to physicians to induce them to write prescriptions for expensive compounded drugs and to submit those prescriptions to pharmacies controlled and operated by Parks and Lee. The conspirators then submitted large claims for payment to various federal health care programs and divided the profits from the federally-paid claims. Boyd was paid a commission based upon the reimbursed prescriptions.

The kickback payments were allegedly disguised through fraudulent business arrangements. Contracts were created between the corrupt pharmacies and physicians for services as “medical directors” or “consulting physicians” to the pharmacies. In actuality, the doctors did not provide the services. The sham arrangements were meant to conceal the fact doctors were receiving kickback payments for writing prescriptions. R&A Marketing and the pharmacies were each responsible for their prearranged portion of the kickback payments.

Daniel Richard Ferguson, 47, of Broken Arrow; John Richard Frohrip, 52, of Tulsa; and Kevin Ellis Partin, 49, of Bixby are charged in three separate Informations with offering or paying health care kickbacks. On March 30, 2015, the men allegedly paid a physician a $15,000 check payment from an account controlled by Brookhaven Specialty Pharmacy, LLC, which constituted a kickback in return for the physician referring patients to Brookhaven for compounding prescriptions that would be reimbursed by the federal health care program Tricare.

Conspiracy to violate the anti-kickback statute carries a possible maximum sentence of five years in prison and a $250,000 fine, while violating the anti-kickback statute carries up to 10 years in prison and a $100,000 possible fine. A conviction of health care fraud without injury or death also carries a possible maximum of 10 years in prison, but if resulting in injury or death, the maximum penalty climbs to 20 years or life in prison, respectively.

Assistant U.S. Attorneys Melody N. Nelson and Richard M. Cella are prosecuting the cases. The Department of Labor- Office of Inspector General (OIG), IRS - Criminal Investigation, U.S. Postal Service- OIG, Department of Veterans Affairs- OIG, FBI, the Department of Health and Human Services-OIG, and Defense Criminal Investigative Service conducted the investigation.

United States Attorney Trent Shores announced today the results of the June 2019 Federal Grand Jury B.

The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

Ken Lee, Veng Xiong, Xiongkou Her, and Kosh Kash Cannady Lor- Superseding Indictment. Drug Conspiracy; Possession of Firearms in Furtherance of a Drug Trafficking Crime (2 Counts); Felon in Possession of a Firearm. Ken Lee, 24; Veng Xiong, 32; Xiongkou Her, 23; and Kosh Kash Cannady Lor, 24, all of Tulsa, are charged with conspiring to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. Lee and Her are also charged with possessing a Glock .40 caliber semi-automatic pistol and a Taurus .38 caliber special revolver in furtherance of their drug trafficking crimes. Xiong and Lor are charged with possessing a Winchester 12 gauge shotgun and associated ammunition in furtherance of their drug trafficking crimes. Xiong is further charged with being a felon in possession of a Winchester 12 gauge shotgun, a ROMARM/CUGIR 7.62x39 mm semi-automatic rifle, a Glock .40 caliber semi-automatic pistol, and a Taurus .38 caliber special revolver. The investigative agencies are the Osage Nation Tribal Police, Osage County Sheriff’s Office; FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Oklahoma Bureau of Narcotics and Dangerous Drugs, and Oklahoma Highway Patrol.

Krishna Parchuri, Christopher Parks, Gary Lee, and Jerry Keepers- Superseding Indictment. Conspiracy to Offer and Pay, and Solicit and Receive Health Care Kickbacks; Conspiring to Commit Health Care Fraud; Soliciting and Receiving Health Care Kickbacks; Obstruction of Criminal Investigations of Health Care Offense. Parchuri, 44, of Tulsa, Parks, 57, of Tulsa, Lee, 58, of Tulsa, and Keepers, 65, of Kingwood, Texas, are charged with conspiring to offer and pay, and solicit and receive health care kickbacks; and conspiring to commit health care fraud. Keepers and Parchuri are also charged with soliciting and receiving illegal bribes and kickback payments. Parchuri is further charged with obstructing the criminal investigation into the health care offenses. The Department of Labor- Office of Inspector General (OIG), IRS- Criminal Investigation, U.S. Postal Service- OIG, Department of Veterans Affairs- OIG, FBI, the Department of Health and Human Services- OIG, and Defense Criminal Investigative Service conducted the investigation.

A Claremore man was sentenced today in U.S. District Court for maintaining a drug-involved premises, being a felon in possession of firearms and ammunition, and obstruction of justice by using the threat of physical force against a witness.

U.S. District Judge Gregory K. Frizzell sentenced James Kent Patrick Hill, 58, to 25 years in prison to be followed by three years of supervised release.

Hill previously pleaded guilty to the charges on March 12, 2019. During the plea hearing, he admitted to maintaining his Claremore residence for the purpose of using controlled substances such as methamphetamine, marijuana, alprazolam and diazepam. Hill further admitted to being a felon in possession of 10 firearms, including shotguns, rifles and pistols and more than 1,000 rounds of associated ammunition. Hill also stated that after he was arrested on Sept. 20, 2018, he threatened the use of force against Corporal John Haning, of the Rogers County Sheriff’s Office, when he reached for and nearly unholstered the Corporal’s firearm while being transported to the Rogers County Jail. By grabbing Haning’s firearm, Hill intended to influence, delay, and prevent the testimony of Haning and others in official proceedings.

“James Hill will have 25 years to reflect on his crimes while he serves his sentence in prison,” said U.S. Attorney Shores. “My team is focused on making northeastern Oklahoma neighborhoods safer by targeting drug and gun related crimes through Project Safe Neighborhoods. James Hill made a bad situation worse when he attempted to grab the service weapon of the deputy who had arrested him. Assaults on law enforcement officers and agents will be prosecuted by my office. If there is jurisdiction over the assault, then criminals should expect to meet a federal prosecutor. There is no better partner than the ATF to help us investigate these types of cases. I’m thankful the Rogers County Deputy in this case did not suffer serious injury or worse.”

Hill was remanded into the custody of the U.S. Marshals Service while awaiting state charges.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Verdigris Police Department and Rogers County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Mark Morgan prosecuted the case

As severe weather continues across the United States and this year’s hurricane season begins, the Department of Justice and U.S. Attorney Trent Shores remind the public to be on the lookout for fraud against natural disaster victims and to report it to the National Center for Disaster Fraud (NCDF).

“Committing fraud against natural disaster victims is an inexcusable crime,” said Deputy Attorney General Jeff Rosen.  “It is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes and solicitations for fake charities.  The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”

“In Oklahoma, ten counties were recently approved to receive federal disaster assistance due to the severe weather and flooding that began in May,” said U.S. Attorney Shores. “As Oklahomans recover and rebuild, they should be wary of fraudsters and con artists who would seek to exploit victims of this extreme weather season. I strongly encourage the public to contact the Justice Department’s National Center for Disaster Fraud at 1-866-720-5721 to report any instances of fraud.”

The Department of Justice established the NCDF in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times.  The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud.  More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.

Numerous U.S. Attorneys’ offices in districts impacted by hurricanes have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.

"The Department of Justice and the NCDF is committed to ensuring each report of disaster fraud reaches the appropriate investigative agency. Do not let disaster strike twice. Report suspected disaster fraud to the NCDF, which has an excellent staff of investigators, analysts, call center operators, and managers who are well prepared to handle the anticipated volume of complaints during hurricane season,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director.

Eighteen major disaster declarations have already been declared in 2019 for events including recent storms, tornadoes, and flooding across the Midwest; Typhoon Wutip in Guam; and severe winter storms and mudslides in Oregon, California. Unfortunately, and inevitably, natural and man-made disasters will continue to occur across our great nation. These terrible and often tragic events leave many people without food, water, or shelter, and often cause devastating damage to life and property. Nevertheless, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.

While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:

• Impersonation of federal law enforcement officials;
• Identity theft;
• Fraudulent submission of claims to insurance companies and the federal government;
• Fraudulent activity related to solicitations for donations and charitable giving;
• Fraudulent activity related to individuals and organizations promising high investment returns via profits from recovery and cleanup efforts;
• Price gouging;
• Contractor Fraud;
• Debris removal fraud;
• Theft, looting, and other violent crime

Members of the public are reminded to be extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. They are also reminded to report suspected waste, fraud, abuse, or allegations of criminal conduct. If members of the public believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, they are strongly encouraged to contact the National Center for Disaster Fraud Hotline toll free by phone at (866) 720-5721, email at disaster@leo.gov, or fax at (225) 334-4707.   The telephone line is staffed by live operators 24 hours a day, seven days a week. 

To learn more about the NCDF please visit the website at www.justice.gov/disaster-fraud and watch a public service announcement. 

Attorney General William P. Barr and U.S. Attorney Trent Shores today announced the formation of a Domestic Violence Working Group aimed at keeping guns out of the hands of convicted domestic abusers, using the tools of federal prosecution to stop and prevent domestic violence. The group will operate under the auspices of the Attorney General’s Advisory Committee (AGAC) and be comprised of nine U.S. Attorneys across the country, chaired by U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

“Too often, domestic abusers start with threats and abuse, and end up committing extreme violence and even homicide, with devastating impact on families and the community around them,” said Attorney General Barr.  “I have directed this working group to examine this issue and determine the best way to use federal gun prosecutions and other appropriate tools to supplement state, local and tribal efforts to address domestic violence.”

“Domestic violence abusers often escalate from fists to firearms. They drive-up violent crime numbers across a number of categories, including sexual assault and homicide. I am honored Attorney General Barr asked me to join this domestic violence working group,” said U.S. Attorney Shores. “As a career prosecutor, I have seen firsthand the tragic effects of domestic violence not only on the victim, but also on children in the household. It is not uncommon that those children are also severely impacted for the rest of their lives. Moreover, domestic violence is a particular problem in Indian Country, as Native American women and children are often victimized at higher rates than other demographics in America.”

Federal law has long barred convicted felons, as well as individuals subject to certain domestic violence protective orders or convicted of domestic violence misdemeanors, from possessing firearms.

Offenders with domestic violence in their past pose a remarkably high risk of homicide. Research shows that abusers with a gun in the home are five times more likely to kill their partners than abusers who don’t have that same access to a firearm. And according to one recent study, more than half of America’s mass shootings are cases of extreme domestic violence.

Keeping guns from domestic abusers legally prohibited from possessing them would significantly reduce violence in America, a major priority of the Justice Department.

However, federal gun cases involving domestic violence present unique challenges. In some states, the federal and state definitions of domestic violence differ, requiring complex legal analysis that varies based on the location of conviction.

“Our working group will look at how to strategically use federal gun prosecutions involving domestic abusers to protect victims, prevent homicides, and generally lower our violent crime rates in America. We recently instituted a localized federal domestic violence prosecution initiative in partnership with the Tulsa Police Department, Tulsa County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms, and Explosives,” continued U.S. Attorney Shores. “Assistant United States Attorney and Tribal Liaison Shannon Cozzoni is helping to lead that effort for our office. She is an experienced and talented prosecutor who is passionate about this topic and understands the value of community based services to advocate for victims and deter domestic violence.”

U.S. Attorneys’ offices have worked tirelessly over the years to address these legal challenges with tremendous success.  The Working Group will share best practices, legal analysis and guidance on prosecuting abusers who unlawfully possess guns, and will advise U.S. Attorneys across the country on outreach to local law enforcement, judges, and nonprofit groups.

Working Group members include:

•  Scott W. Brady, U.S. Attorney for the Western District of Pennsylvania

•  Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky

•  Nicola T. Hanna, U.S. Attorney for the Central District of California 

•  Justin E. Herdman, U.S. Attorney for the Northern District of Ohio

•  Erin Nealy Cox, U.S. Attorney for the Northern District of Texas

•  Christina E. Nolan, U.S. Attorney for the District of Vermont

•  Byung J. Pak, U.S. Attorney for the Northern District of Georgia

•  R. Trent Shores, U.S. Attorney for the Northern District of Oklahoma

•  Timothy J. Downing, U.S. Attorney for the Western District of Oklahoma

A Tulsa man, who attempted to prevent the Internal Revenue Service (IRS) from collecting more than $200,000 in taxes, penalties and interest he owed for 2005, and didn’t file tax returns for the years 2006 through 2012, despite earning commissions totaling nearly $5 million during these years, was sentenced in federal court in Tulsa, Oklahoma, today by U.S. District Court Judge Gregory Frizzell to 24 months in prison, announced U.S. Attorney Trent Shores and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

John D. Petrig, 49, of Tulsa, pleaded guilty on February 5, 2019, to one count of tax evasion. From 2000 to 2012, Petrig worked for a company as an independent contractor installing ATM machines inside casinos. The company paid him commissions based on the number of transactions that were executed at the ATMs. In 2012, Petrig filed his 2005 tax return with the IRS, reporting a tax due of just over $110,000. In fact, Petrig owed taxes, penalties and interest of more than $217,000 and took steps to evade payment of those funds. When the IRS sent a levy to his employer, Choice ATM Enterprises, directing his commission payments be sent to the IRS to pay his 2005 tax debt, Petrig instructed Choice to pay his future commission payments to a nominee entity, and thereby prevent those funds from being used to satisfy his tax debt. According to court documents, Petrig earned commissions totaling nearly $5 million for the years 2006 through 2012, but did not file tax returns for any of those years.

“Petrig tried to beat the system and lost. Over a seven year period, he earned a commission income of almost $5 million and failed to pay the nearly $1 million owed in income taxes. When the United States attempted to collect those back taxes, he directed his commission payments to be sent to fictitious corporations,” said U.S. Attorney Trent Shores. “This egregious behavior warrants the sentence Judge Frizzell handed down today in federal court. Tax evaders beware, your criminal conduct will be brought to light, investigated, and prosecuted by the Department of Justice.”

“Evading the payment of taxes constitutes serious criminal activity,” stated Principal Deputy Assistant Attorney General Zuckerman. “In partnership with the United States Attorney’s Office and IRS-Criminal Investigation, the Tax Division is committed to holding tax evaders accountable for such criminal activity and seeking prison sentences for such crimes.”

U.S. Attorney Shores also commended the efforts of the justice team, “I appreciate the detailed examination of evidence by special agents from IRS-Criminal Investigation and the prosecutorial work of Special Assistant U.S. Attorney and Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorneys Victor Régal and Charles McLoughlin.”

In addition to prison, Petrig was ordered to pay restitution to the IRS in the amount of $974,350.48 and to serve three years of supervised release after completion of his sentence.

The Department of Treasury, Internal Revenue Service-Criminal Investigation investigated the case. Special Assistant U.S. Attorney/ Assistant Chief Andrew J. Kameros of the Tax Division and Assistant U.S. Attorneys Charles M. McLoughlin and Victor A.S. Régal prosecuted the case.

A Tulsa man, who attempted to prevent the Internal Revenue Service (IRS) from collecting more than $200,000 in taxes, penalties and interest he owed for 2005, and didn’t file tax returns for the years 2006 through 2012, despite earning commissions totaling nearly $5 million during these years, was sentenced in federal court in Tulsa, Oklahoma, today by U.S. District Court Judge Gregory Frizzell to 24 months in prison, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Trent Shores.

John D. Petrig, 49, of Tulsa, pleaded guilty on Feb. 5, 2019, to one count of tax evasion. From 2000 to 2012, Petrig worked for a company as an independent contractor installing ATM machines inside casinos. The company paid him commissions based on the number of transactions that were executed at the ATMs. In 2012, Petrig filed his 2005 tax return with the IRS, reporting a tax due of just over $110,000. In fact, Petrig owed taxes, penalties and interest of more than $217,000 and took steps to evade payment of those funds. When the IRS sent a levy to his employer, Choice ATM Enterprises, directing his commission payments be sent to the IRS to pay his 2005 tax debt, Petrig instructed Choice to pay his future commission payments to a nominee entity, and thereby prevent those funds from being used to satisfy his tax debt. According to court documents, Petrig earned commissions totaling nearly $5 million for the years 2006 through 2012, but did not file tax returns for any of those years.

“Evading the payment of taxes constitutes serious criminal activity,” stated Principal Deputy Assistant Attorney General Zuckerman. “In partnership with the United States Attorney’s Office and IRS-Criminal Investigation, the Tax Division is committed to holding tax evaders accountable for such criminal activity and seeking prison sentences for such crimes.”

“Petrig tried to beat the system and lost. Over a seven year period, he earned a commission income of almost $5 million and failed to pay the nearly $1 million owed in income taxes. When the United States attempted to collect those back taxes, he directed his commission payments to be sent to fictitious corporations,” said U.S. Attorney Trent Shores. “This egregious behavior warrants the sentence Judge Frizzell handed down today in federal court. Tax evaders beware, your criminal conduct will be brought to light, investigated, and prosecuted by the Department of Justice.”

In addition to prison, Petrig was ordered to pay restitution to the IRS in the amount of $974,350.48 and to serve three years of supervised release after completion of his sentence.

The Department of Treasury, Internal Revenue Service-Criminal Investigation investigated the case. Special Assistant U.S. Attorney/ Assistant Chief Andrew J. Kameros of the Tax Division and Assistant U.S. Attorneys Charles M. McLoughlin and Victor S. Régal prosecuted the case.

United States Attorney Trent Shores announced today the appointment of Kristin Harrington as an Assistant U.S. Attorney in the Civil Division and Scott Proctor as an Assistant U.S. Attorney in the Criminal Division for the Northern District of Oklahoma. They are scheduled to be sworn in Friday, June 7, at 10:00 a.m., at the United States District Courthouse by Chief United States District Judge John E. Dowdell.

“Kristin and Scott are valuable additions to our justice team here in the Northern District of Oklahoma. Kristin brings extensive experience, knowledge, and passion to the fight against opioids as part of our affirmative civil enforcement unit. Scott - with his service as an officer in the U.S. Navy and education at Harvard - brings a unique blend of mission readiness and legal aptitude to our Indian Country team,” said U.S. Attorney Shores. “We are lucky to have selfless civil servants like Kristin and Scott on our team. They will make a positive impact on our community and help further our mission at the Department of Justice.”

As an Assistant U.S. Attorney for the Affirmative Civil Enforcement unit, Ms. Harrington will prosecute civil actions on behalf of the United States of America to recover damages for fraud and other offenses and impose civil penalties for violations of the federal health, safety and economic welfare laws. One of her primary focuses will be combating the opioid crisis in northeastern Oklahoma. Previously, Ms. Harrington served as an Assistant U.S. Attorney for the Eastern District of Oklahoma. While there, she also served as the Opioid Coordinator, a position responsible for community outreach to address the opioid crisis and prosecution of cases involving opioids, including heroin, fentanyl and other controlled substances. Ms. Harrington has also served at the Oklahoma Attorney General’s Office, prosecuting white collar crime and healthcare matters, and as an Assistant District Attorney for the Tulsa County District Attorney’s Office. Ms. Harrington received her undergraduate degree at DePauw University and her J.D. from the University of Tulsa College of Law.

As a Criminal Division Assistant U.S. Attorney, Mr. Proctor will represent the United States of America in the prosecution of criminal cases in Indian Country. Mr. Proctor joined the office from the Attorney General’s Honors Program, where he was selected as “Indian Country Fellow.” Previously, he clerked for U.S. Circuit Judge Jeffrey Sutton at the United States Court of Appeals for the Sixth Circuit in Columbus, Ohio. He has also worked as an intern at the Justice Department’s National Security Division, Counterterrorism Section, the U.S. Attorney’s Office for the District of Massachusetts, and on Capitol Hill for U.S. Senator Tom Cotton. Mr. Proctor has further served in the United States Navy and Navy Reserve for ten years, attaining the rank of Lieutenant Commander. Mr. Proctor received his undergraduate degree from Yale University and his J.D. from Harvard University where he graduated magna cum laude. While at Harvard, he served as executive editor of the Harvard Law Review.

United States Attorney Trent Shores announced today the results of the June 2019 Federal Grand Jury A.

The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

Jonathan Michael Baker. Coercion and Enticement of a Minor; Distribution of Child Pornography; Attempted Receipt of Child Pornography. Baker, 40, of Salem, West Virginia, is charged with using social media to entice an individual that he believed was under the age of 18 to engage in sexual activity. He is further charged with knowingly distributing a visual depiction of a minor engaged in sexually explicit conduct, and he is charged with knowingly attempting to receive visual depictions of a minor engaged in sexually explicit conduct. The Bristow Police Department is the investigative agency.

Steven Ronald Belcher and Alisa Maria Belcher. Felon in Possession of a Firearm; Transportation of a Stolen Firearm; Pledging a Stolen Firearm as a Security for a Loan. Steven Belcher, 30, of Princeton, West Virginia, is charged with being a felon in possession of a stolen Springfield Armory 9 x 19 caliber pistol. Alisa Belcher, 30, of Princeton, West Virginia is charged with aiding and abetting Steven Belcher in the crime. The two are also charged with aiding and abetting one another when they transported the stolen firearm across state lines from West Virginia to Oklahoma. Finally, Alisa Belcher is charged with pledging as security for a loan the stolen firearm at a pawnshop. Steven Belcher is charged with aiding and abetting Alisa Belcher when she pawned the firearm. The Mayes County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Berry Allen Leerdam-Superseding Indictment. Felon in Possession of Firearms. Leerdam, 58, of St. Thomas, U.S. Virgin Islands, is charged with being a felon in possession of a Taurus .357 magnum caliber pistol frame and a Taurus .9 mm semiautomatic pistol frame. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Department of Homeland Security, Transportation Security Administration’s Federal Air Marshals are the investigative agencies.

Jana Renee Parrish. Attempted Bank Robbery. Parrish, 42, residence unknown, is charged with using force, violence and intimidation while attempting to rob a Bank of America in Tulsa. The FBI and Tulsa Police Department are the investigative agencies.

Ricardo Perez-Rocha. Drug Conspiracy. Perez-Rocha, 42, of Bakersfield, California, is charged with conspiring with others to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. The Drug Enforcement Administration is the investigative agency.

Agustin Nieto Regalado. Attempted Coercion and Enticement of a Minor; Possession of False Lawful Permanent Resident Card. Regalado, 46, of Tulsa, also known as Marcos Diaz, is charged with using social media to knowingly attempt to persuade, induce, and entice a minor to engage in sexual activity. He is also charged with knowingly possessing a fraudulent permanent resident card. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO) are the investigative agencies.

Viviano Rodriguez-Escalante. Unlawful Reentry of Removed Alien.  Rodriguez-Escalante, 33, of Tulsa, is charged with reentry of a removed alien, having returned to the United States unlawfully after being deported Oct. 27, 2017, at Laredo, Texas. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is the investigative agency.

Dustin Wayne Thompson. Felon in Possession of a Firearm and Ammunition. Thompson, 26, of Tulsa, is charged with being a felon in possession of a Glock .45 caliber handgun and associated ammunition. Upon investigation, police allegedly found a switch affixed to the handgun that allowed the weapon to fire in fully automatic mode. The Tulsa Police Department is the investigative agency.

Ira Lee Wilkins. Felon in Possession of a Firearm and Ammunition. Wilkins, 38, of Tulsa, is charged with being a felon in possession of a Highpoint C9 .9 mm pistol and associated ammunition. The Tulsa Police Department is the investigative agency.

A man who fired his weapon at FBI agents attempting to arrest him in Delaware County, in October 2018, pleaded guilty Wednesday to assaulting federal officers, announced U.S. Attorney Trent Shores.

Brian Kirk Marshall, 50, of Pattonsburg, Missouri, pleaded guilty in U.S. District Court to assaulting federal officers, obstruction of justice by attempting to kill witnesses, and carrying, using and discharging a firearm during and in relation to a crime of violence. U.S. District Judge Claire V. Eagan accepted Marshall’s plea and set sentencing for Aug. 27, 2019.

“The patience, professionalism, and excellence of the FBI Special Weapons and Tactics Team were on full display in the arrest of Brian Marshall, a self-described “cop killer.” Marshall was a fugitive from justice hiding in rural northeastern Oklahoma. For more than 40 minutes, an FBI negotiator tried to talk Marshall into surrendering peacefully. Instead, Marshall opened fire on the FBI agents. Marshall was ultimately taken into custody,” said U.S. Attorney Shores. “Today’s change of plea is a culmination of months of diligent work by FBI special agents and federal prosecutors. When criminals shoot at law enforcement, they can expect to receive the full weight of a federal prosecution.”

During the plea hearing, Marshall admitted to firing shots at FBI agents after the FBI SWAT Team had appropriately identified themselves and attempted to call all occupants safely out of the residence. The FBI returned fire in accordance with protocol, resulting in Marshall surrendering to authorities. In total, Marshall admitted to firing eight rounds at FBI agents. At the time of the incident, the FBI was attempting to execute a search warrant for Marshall’s Delaware County residence; as well as an arrest warrant for interstate communication of threats Marshall allegedly made, in which he threatened to kill police officers.

Marshall remains in the custody of the U.S. Marshals Service while awaiting sentencing.

The FBI is the investigative agency. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.

A former bank loan officer was sentenced to federal prison Tuesday for defrauding Oklahoma State Bank, in Vinita, of more than $175,000, announced U.S. Attorney Trent Shores.

U.S. District Judge Gregory K. Frizzell  sentenced Charles Lee Enyart, 47, of Vinita, to four months in prison for two counts of embezzlement and willful misapplication by a bank officer.  Following his term in prison, he will be placed on five years of supervised release. Additionally, the Court ordered the defendant to make restitution in the amount on $180, 221.17. Of that amount, a forfeiture money judgement of $171,089.16 was previously ordered by the Court, and the additional $9,132.01 was ordered for prejudgment interest.

“Charles Enyart violated the confidence placed in him by the Vinita community. He exploited his position of trust along with his personal and business relationships at Oklahoma State Bank to fraudulently take more than $175,000,” said U.S. Attorney Shores. “Our team of federal prosecutors were able to recover the funds originally lost plus interest. I’m proud of their work to bring to justice this white collar criminal.”

In December 2018, Enyart pleaded guilty to embezzling funds at the bank from November 2016 to December 2017. On Nov. 28, 2016, Enyart received $99,000 based on a false loan application to purchase cattle that he submitted under another individual’s name. Later, from September to December 2017, Enyart made multiple cash withdrawals and purchased cashier’s checks, using proceeds from a separate construction loan. Enyart withdrew the money under false pretenses, stating the money was to be used for the benefit of the individual who had applied for the loan. In both instances, he admitted to knowing the loans were insured by the Federal Deposit Insurance Corporation (FDIC) and that he used the money for his own personal benefit.

Enyart was permitted to voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

The FBI and Craig County District Attorney’s Office conducted the investigation. Assistant U.S. Attorney Joseph F. Wilson prosecuted the case.

 “On Saturday, President Trump declared a disaster in three Oklahoma counties affected by severe weather and flooding. The announcement is followed by today’s visit from Vice President Pence, who will view damage affecting Oklahoma residents. I am grateful for the Administration’s concern and swift action taken to address recovery efforts that many Oklahomans face in the coming months,” said U.S. Attorney Trent Shores. “Oklahomans are known for persevering through adversity and uniting to help one another in the aftermath of natural disasters. That being said, I also want to caution the public about unscrupulous individuals and organizations who would use these tragic events to take advantage of those impacted. Be wary of potential price gouging, individuals posing as contractors and repairmen, and potential fraudulent online donation sites that seek to steal your money, account numbers, and personal identifying information. If you are victimized by a scam or encounter suspicious activity, I strongly encourage you to report the suspicious criminal behavior to law enforcement as well as authorities at the Justice Department’s National Center for Disaster Fraud at 1-866-720-5721. Through the NCDF, and in conjunction with our law enforcement partners, we are working to keep Oklahomans from becoming victims of these schemes.”

Potential examples of illegal activity include:  Impersonation of federal law enforcement officials; Identity theft; fraudulent submission of claims to insurance companies and the federal government; fraudulent activity related to solicitations for donations and charitable giving; fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts; price gouging; contractor Fraud; debris removal fraud; theft, looting, and other violent crime.

In 2005, the Department of Justice along with various law enforcement and regulatory agencies partnered to form the National Center for Disaster Fraud (NCDF). The agency was formed to further the detection, prevention, investigation and prosecution of disaster fraud. Federal prosecutors charged more than 1,300 disaster fraud cases relating to Hurricane Katrina alone, and since 2005, the NCDF has received over 95,000 disaster fraud complaints. Learn more about NCDF and available resources here.

You may also find resources at the following websites: https://www.fema.gov/disaster-fraud and http://www.oag.ok.gov/consumer-protection

A South Carolina doctor has agreed to pay the government $92,506.30 for allegedly accepting illegal kickback payments from OK Compounding, L.L.C., announced U.S. Attorney Trent Shores.

The U.S. Attorney’s Office entered into a settlement agreement with Jerry Back, 62, a medical doctor, in an effort to recoup the costs to the U.S. government resulting from the illegal kickbacks.

This is the eighth kickback settlement since January in the Northern District of Oklahoma. The civil settlements arose from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding.

“It is no secret that my office remains focused on protecting the integrity of our federal health care system by holding accountable unscrupulous doctors who have allegedly cheated insurance programs,” said U.S. Attorney Shores. “We will use all tools at our disposal, including civil and criminal remedies, to halt illegal and corrupt practices by medical professionals.”

"This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense health care program known as TRICARE," said DCIS Special Agent in Charge Michael C. Mentavlos. "DCIS will aggressively investigate those health care providers that attempt to defraud the DoD, in order to preserve American taxpayer dollars intended to care for our warfighters, their family members, and our military retirees."

Beginning in 2013, Dr. Back prescribed these pain creams for his patients, facilitating the sale and distribution of the creams.  As compensation for his services, OK Compounding paid Dr. Back what was characterized by the parties as “medical director fees” based upon an hourly rate.  However, the payments Dr. Back received from the company were, in actuality, “kickbacks.”  Because Dr. Back’s patients were insured with TRICARE, a Department of Defense federal health care program for veterans, the kickbacks were in violation of the False Claims Act.  It is illegal to pay or receive “kickbacks” in conjunction with federal health care insurance.  

Prohibitions against kickbacks are crucial to insure that financial motives do not undermine the medical judgment of physicians and other health care providers.  The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.

The settlement resolves allegations that Dr. Back had an illegal financial relationship with OK Compounding, concerning pain creams from February through May of 2013.

Affirmative Civil Enforcement (ACE) refers to filing civil lawsuits on behalf of the United States.  The purpose of these civil actions is to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws.

To report fraud and abuse against the Federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the ACE Unit.

Information for fraud against TRICARE can be reported at https://health.mil/Military-Health-Topics/Access-Cost-Quality-and-Safety/Quality-And-Safety-of-Healthcare/Program-Integrity/Fraud-and-Abuse-Report-Submission-Form.

This matter was handled by Assistant U.S. Attorney Marianne Hardcastle, and is the product of a collaborative investigation by the Defense Criminal Investigative Service, Department of Labor – Office of Inspector General (OIG), IRS – Criminal Investigation Division, U.S. Postal Service – OIG, FBI, Department of Veterans Affairs - OIG and the Department of Health and Human Services - OIG.

The claims resolved by the settlement are allegations only; there has been no determination of liability.  

U.S. Attorney Trent Shores announced that a 62-year-old man who kidnapped and used a handgun to threaten a woman was sentenced Tuesday in U.S. District Court. At the time of the crime, the man was subject to a domestic abuse restraining order and gained access to the Broken Arrow woman’s home by cutting a hole through an exterior wall.

On July 25, 2018, a jury found Randy Alan Hamett, of Choctaw, guilty of Kidnapping, Possessing and Receiving Stolen Firearm and Ammunition, and Possession of Firearms and Ammunition While Subject to a Domestic Violence Protective Order.

Today, U.S. District Judge Claire V. Eagan ordered Hamett to 240 months in prison for kidnapping and 120 months in prison for the two firearms charges. The sentences will run concurrently. Hamett will also be required to serve five years of supervised release following completion of his prison term.

“When arrested, Hamett had in his pocket a murder preparation list that included the words: taser, rope, zip ties, machete, and shovel. If not for the quick thinking of the female victim, this would have been a homicide case. Her courageous actions enabled law enforcement to rescue her and arrest Hamett. Unfortunately, Hamett had already threatened, kidnapped, zip tied, tased, and sexually assaulted the female victim,” said US Attorney Shores. “The advisory sentencing guideline range called for a sentence of life imprisonment and federal prosecutors advocated for a sentence of life imprisonment. That was the right thing to do given Hamett’s egregious acts and lack of remorse, and we would recommend life again.”

Previously, a jury determined that, in April 2017, Hamett cut a hole in an outside wall of the victim’s house to avoid detection by the alarm system. When the victim arrived home from work, Hamett tased her and pointed a revolver at her. After zip-tying her wrists and duct taping her ankles, Hamett threatened to kill himself, the victim, and anyone who tried to help her. Hamett forced the victim into a car, stole from her a pistol she had purchased after obtaining a protective order against him, then kidnapped her. Hamett also sexually assaulted her.

Convinced that Hamett was going to kill her, the victim made every effort to prolong the trip and endear herself to Hamett. As part of her attempt to accomplish that, the victim convinced Hamett they should get back together and remarry in Arkansas, where they were originally married.  Hamett eventually allowed the victim to text her parents and her boyfriend so they would not become suspicious concerning her whereabouts. Based on the nature of the text, the victim’s parents became worried that she was in danger and contacted the Broken Arrow Police Department. Through a concerted investigation by the Broken Arrow and Siloam Springs Police Departments, officers were able to locate Hamett and the victim at a hotel in Siloam Springs, Arkansas, where they determined Hamett was holding the victim against her will and arrested Hamett for violation of a protective order.  Hamett was in possession of a firearm and ammunition, along with Taser cartridges, at the time of his arrest.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Broken Arrow Police Department, the Siloam Springs Police Department, and the Rogers State University Police conducted the investigation. Assistant U.S. Attorneys Jeffrey A. Gallant and Ryan M. Roberts prosecuted the case.

Twenty-nine members and coconspirators of a drug trafficking organization with ties to Mexico’s New Generation Cartel have been indicted for their alleged roles in a continuing criminal enterprise, conspiring to possess and distribute heroin, money laundering and other related charges.

The charges were announced Tuesday at a press conference in Tulsa by U.S. Attorney Trent Shores for the Northern District of Oklahoma; Resident Agent in Charge David King of the Drug Enforcement Administration’s Tulsa Office; Resident Agent in Charge Robert Melton of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ Tulsa Office; Senior Deputy Oklahoma Attorney General Joy Thorpe; and Deputy Chief Dennis Larsen of the Tulsa Police Department.

“Operation Smack Dragon targeted a transnational heroin distribution organization based out of Mexico and operating in Tulsa. With this Indictment, we hope to disrupt and dismantle this organization’s operations in Tulsa and elsewhere,” said U.S. Attorney Shores. “The 29 defendants charged today are only a start to our multi-state and multi-agency takedown. The investigation continues thanks to the tireless and dedicated efforts of the men and women of law enforcement.”

The indictment alleges that the Giovanni Drug Trafficking Organization began a heroin distribution network run out of Mexico, with operations led from Tulsa, as early as November 2017. The alleged organization imported, processed, and distributed approximately two kilograms of heroin per week throughout the Northern District of Oklahoma and elsewhere, using multiple levels of distribution to get the drug into the hands of users. The United States Attorney’s Office notes that an indictment is merely an accusation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. This criminal indictment was returned by a federal grand jury on May 9, 2019, and was unsealed on May 14.

According to the Indictment, the alleged transnational criminal organization’s hierarchy had clearly defined roles, as leaders from Mexico supplied heroin to the Tulsa “cell heads.” These “cell heads” were originally from Mexico but lived in Tulsa. Stille Giovanni Gutierrez Vivanco, allegedly directed, from Mexico, the overall drug trafficking operations in Tulsa by delegating responsibilities for the import and distribution of the heroin and for the movement of the proceeds from heroin sales. According to the Indictment, the criminal organization smuggled heroin into the United States and transported the drug to storage locations in Tulsa where they prepared it for distribution throughout the United States. After preparing the heroin, the coconspirators would repackage it for distribution to mid-level distributers, who would then redistribute it to street-level dealers until it eventually found its way into the hands of customers.

The indictment alleges that a select group of redistributors were the only group that would contact the “cell heads” in Tulsa directly. The “cell heads” in Tulsa included a person responsible for driving drugs up from Mexico, a person responsible for distributing drugs to the top level of distributors, and a person in charge of getting the organization’s money funneled back to Mexico. The conspirators allegedly laundered the proceeds from heroin sales using money remitter businesses in Tulsa. As part of the money laundering operations, the defendants utilized nominee names to transmit funds through wire transfers from Oklahoma and elsewhere to Mexico.  A “nominee name” is used to hide the true recipient of the money.

According to the Indictment, Stille Giovanni Guiterrez Vivanco, 34, is alleged to have led this international drug trafficking organization. “Cell heads” included Jose Garcia, 36, of Tulsa, and Edson Garcia-Velasquez, 25, of Tulsa. Norman Fabian Huerta Avalos, 36, served in various capacities, including coordinating assignments for other organization members and serving as dispatch.

The Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations led the investigation in partnership with the U.S. Department of Treasury, Internal Revenue Service- Criminal Investigation; the Oklahoma State Attorney General’s Office; and Tulsa Police Department. Assistant U.S. Attorney Joel-lyn McCormick is prosecuting this case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.

U.S. Attorney Trent Shores recognizes the service, courage and sacrifice made by federal, state, local, and tribal law enforcement officers on the occasion of National Police Week, which is being observed Sunday, May 12 to Saturday, May 18, 2019.

As part of the observance, U.S. Attorney Shores is honored to speak at the Law Enforcement Memorial Service, scheduled for May 14, at 11 am, in Chandler Park. The Fraternal Order of Police Lodge 188 and Tulsa County Sheriff’s Office host the annual event to honor and remember the legacy of fallen officers.

In October 1962, Congress enacted a joint resolution, which the President signed, declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice. 

“During Police Week, our nation celebrates the contributions of police officers from around the country. We recognize their sacrifice, loyalty, and commitment to fighting for that which is right. Police officers are the peacekeepers and protectors of our community,” said U.S. Attorney Shores. “Police officers, investigators, detectives, and agents put on their uniform and go out to face danger without question or expectation of thanks. For that and for all they do, law enforcement have my sincerest thanks and appreciation.”

According to statistics reported to the FBI, 106 law enforcement officers were killed in line-of-duty incidents in 2018. In Oklahoma, former Comanche County Drug Task Force investigator Timothy Dale Cole died as a result of gunshot wounds sustained in 2007 when assisting the Oklahoma Bureau of Narcotics serve a warrant in Lawton. His resulting spinal cord injury rendered him paraplegic, and he passed away due to complications on Aug. 4, 2018. Timothy Cole is survived by his wife, three children, and eight grandchildren.

Comprehensive data tables about these incidents and brief narratives describing the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2018 https://ucr.fbi.gov/leoka/2018/ released this week by the FBI.

The names of all 106 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 31st   Annual Candlelight Vigil on the evening of May 13, 2019. No tickets are required and everyone is welcome. For additional information, please call 202-737-3400.

The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2019.

For more information about other National Police Week events, please visit www.policeweek.org.

A Tulsa man was sentenced to federal prison Thursday as the result of a bank fraud scheme that cost his former employer, Firstar Bank of Tulsa, nearly $700,000.

Chief United States District Judge John E. Dowdell sentenced Blake Brian Ferguson, 37, of Broken Arrow, to 31 months in prison on three counts of bank fraud and one count of engaging in an unlawful monetary transaction to be followed by five years of supervised release on the bank fraud charges and three years of supervised release on the monetary transaction charge. All sentences run concurrently. The court further ordered Ferguson to pay $144,160 in restitution to the bank and individual victims affected by the fraudulent scheme.

“The integrity of the banking system is essential to the economic well-being of our community,” said U.S. Attorney Shores. “In this instance, a senior bank officer betrayed the trust and confidence placed in him by the bank, his staff, and customers. Mr. Ferguson’s sentence sends a signal to the marketplace that fraud will not be tolerated inside our financial institutions.” 

In imposing sentence, the Court noted that Ferguson had manipulated customer lines of credit in order to obtain funds in the amount of $697,060 to support his gambling habit. At his plea hearing in 2017, Ferguson had admitted that, as an officer at the bank, he increased customer lines of credit to take funds from the loans for his own benefit, mostly to pay gambling debts. The bank was unaware of the fraudulent purpose underlying the loan transactions. Ferguson’s scheme lasted from January 2013 to September 2015.

Ferguson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prison facility in June 2019. 

The FBI, Internal Revenue Service-Criminal Investigation, and the Federal Deposit Insurance Corporation /Office of Inspector General, investigated the case.  Assistant U.S. Attorney Kevin C. Leitch prosecuted the case. 

TULSA, Okla. – United States Attorney Trent Shores announced today the results of the May 2019 Federal Grand Jury.

The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

Brandon Michael Browning. Felon in Possession of a Firearm and Ammunition; Possession of Methamphetamine With Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Browning, 35, of Claremore, is charged with being a felon in possession of a Rohm .22 caliber revolver and associated ammunition. He is further charged with possessing methamphetamine with intent to distribute and with possessing a firearm in furtherance of a drug trafficking crime. The Claremore Police Department, Rogers County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration are the investigative agencies.

Isidro Campos, Jose Antonio Ramirez-Lopez, Emilio Torres. Drug Conspiracy; Interstate Travel in Aid of Racketeering. Campos, 26, of Bell Gardens, California; Ramirez-Lopez, 22, of Phoenix, Arizona; and Torres, 30, of Huntington Park, California are charged with conspiring to distribute 500 grams of methamphetamine. Campos and Torres are further charged with traveling across state lines, from California to Oklahoma, to promote, manage, establish and carry on their alleged methamphetamine conspiracy. The Oklahoma Highway Patrol and Drug Enforcement Administration are the investigative agencies.

Sebastian Cobelo. Possession of Methamphetamine With Intent to Distribute (2 Counts); Possession of a Firearm in Furtherance of a Drug Trafficking Crime (2 Counts).  Cobelo, 43, of Broken Arrow, is charged with possessing with intent to distribute 500 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine. He is further charged with possessing a firearm in furtherance of a drug trafficking crime. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Robert Sean Thomas Davis. Attempted Coercion and Enticement of a Minor. Thomas, 26, of Owasso, is charged with using a cell phone and social media apps to knowingly attempt to entice a minor to meet and engage in sexual activity. The FBI and Tulsa Police Department are the investigative agencies.

Harold Dewey Delonia, III, Whitney Nichole Parker. Felon in Possession of Firearm; Felon in Possession of Firearm and Ammunition (2 Counts); Transfer of Firearm to Prohibited Person. Delonia, 24, of Okmulgee, is charged with being a felon in possession of a Taurus 9 mm Luger pistol, a Glock .40 S&W caliber pistol, a Ruger 9mm Luger pistol and associated ammunition. Parker, 28, of Tulsa, is charged with transfer of a firearm to a prohibited person. On Nov. 10, 2018, Parker allegedly transferred the Taurus 9 mm Luger pistol to Delonia knowing he was a felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.

Raytjuan Laquai Edwards. Felon in Possession of Firearm and Ammunition; Possession of a Firearm and Ammunition While Subject to a Domestic Violence Protective Order; Obstruction of Justice by Tampering with A Witness. Edwards, 39, of Tulsa, is charged with being a felon in possession of a Forjas Taurus .357 Magnum and various ammunition. Edwards was previously convicted five times on gun and drug distribution charges. Edwards is further charged with possessing a firearm while subject to a domestic violence protective order. A protective order was issued on Nov. 5, 2018, restraining Edwards from harassing, stalking and threatening an intimate partner and the partner’s child or from engaging in any conduct that would place the two in reasonable fear of bodily injury. Finally, Edwards is charged with obstructing justice by tampering with a witness. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Kevin Ryan Evraets. Sale of a Firearm to a Prohibited Person; Dealing Firearms Without a License. Evraets, 33, of Broken Arrow, is charged with knowingly selling a Ruger .40 caliber pistol to an individual who was a convicted felon. He is further charged with dealing firearms without a license from July to December 2018 in the Northern District of Oklahoma. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Raymond Mark Hamilton. Felon in Possession of a Firearm. Hamilton, 62, of Tulsa, is charged with being a felon in possessing a Smith and Wesson semi-automatic pistol and associated ammunition. Hamilton has 10 previous felony convictions. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Braden Kial Johnson. Bank Fraud. Johnson, 23, of Bixby, is charged with executing a scheme to fraudulently obtain money from RCB Bank from Dec. 7, 2018 to Feb. 9, 2019. Johnson was a treasurer for a Claremore youth sports association where he allegedly drafted unauthorized checks from the association’s bank account, making the checks payable to himself then forging the signature of the former treasurer. He would then cash the checks. As part of the scheme, Johnson allegedly forged approximately 18 checks and fraudulently obtained at least $22,368.50. The Claremore Police Department and FBI are the investigative agencies.

Nabrai Lyntrel Lyons. Drug Conspiracy; Attempted Possession of Fentanyl with Intent to Distribute; Possession of Fentanyl with Intent to Distribute; Importation of a Controlled Substance - Fentanyl; Possession of Firearm in Furtherance of Drug Trafficking Crimes; Smuggling Goods into the United States. Lyons, 24, of Tulsa, is charged with conspiring with others to distribute and to possess with intent to distribute fentanyl; knowingly attempting to possess with intent to distribute fentanyl; knowingly possessing with intent to distribute fentanyl; importing a controlled substance into the United States not pursuant to Attorney General regulations; and receiving merchandise she knew to have been smuggled into the United States.  Finally, Lyons is charged with possessing a Taurus 9 mm caliber pistol in furtherance of drug trafficking crimes. The Oklahoma Bureau of Narcotics, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Tulsa County Sheriff’s Office are the investigative agencies.

Timothy Dwayne Parker. Attempted Coercion and Enticement of a Minor. Parker, 53, of Sapulpa, is charged with using his cell phone to knowingly attempt to entice a minor to engage in sexual activity. The Sapulpa and Bristow Police Departments are the investigative agencies.

Kevin Glenn Petty. Theft of Government Property; Aggravated identity Theft. Petty, 54, of Sand Springs was charged with theft of government property and fraudulently using another individual’s identity in pursuit of his crime. Petty allegedly filed fraudulent 2016 income tax returns under the name of taxpayer Woodson J. Nightwalker. The $3,800 tax refund amount was deposited into a Green Dot card account, which funded a Green Dot pre-paid debit account. Petty allegedly filed five additional fraudulent returns, which were intercepted by the IRS. The six false returns filed by Petty sought a total of $12, 303 in fraudulent refunds. The case was investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspector.

James Thomas Saunders, Jr. Possession of Methamphetamine with Intent to Distribute; Possession of Firearms in Furtherance of a Drug Traffkicking Crime; Felon in Possession of Firearms and Ammunition. Saunders, 29, of Tulsa, is charged with possessing with intent to distribute methamphetamine, with possessing firearms to further his methamphetamine distribution, and being a felon in possession of a Lorcin 9 mm, 9x19mm caliber semi-automatic pistol, a Mossberg 12 gauge shotgun and various ammunition. Saunders had eight previous felony convictions. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Canado Lopez Smith. Felon in Possession of Firearm and Ammunition, Possession of Marijuana with Intent to Distribute, Possession of a Firearm in Furtherance of a Drug Trafficking Crime.  Smith, 46, of Tulsa, is charged with being a felon in possession of a Phoenix Arms .22 long rifle caliber semi-automatic pistol and associated ammunition. He is further charged with possession with intent to distribute marijuana and possession of a firearm to further his drug trafficking crime. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Lance Thomas Weaver. Possession of Methamphetamine with Intent to Distribute. Weaver, 46, of Pryor, is charged with possessing with intent to distribute 50 grams or more of methamphetamine. The Delaware County Sheriff’s Office is the investigative agency.

 

 

United States Attorney Trent Shores announced today that Assistant U.S. Attorney Ryan Roberts was awarded the Outstanding Safety and Security Award for his dedication to prosecuting violent crime in Oklahoma.

The award was part of the Public Service Recognition Awards for 2019, hosted by the Oklahoma Federal Executive Board. Roberts was one of six final nominees for the award from across the State of Oklahoma.

“Assistant U.S. Attorney Ryan Roberts is a talented and dedicated federal prosecutor,' said U.S. Attorney Shores. "He approaches his job as a public servant with great humility and selflessness. This recognition was well-deserved and hard-earned. The U.S. Attorney’s Office is lucky to have him on our team.”

In 2018, Roberts charged 77 federal criminal defendants with crimes involving guns and violence. His tenacity and leadership in the courtroom led to 39 guilty pleas and multiple convictions during two contested jury trials in 2018. The remainder of defendants have pleaded guilty in 2019 or their cases are continuing in federal court. 

“This award reflects the commitment of an entire team of professionals,” said Assistant U.S. Attorney Ryan Roberts. “I was honored today to represent the hard work from police officers, agents, and the staff here at the U.S. Attorney’s Office. It is truly a team effort that led to these convictions.”

Roberts’ numerous prosecutions directly contributed the Justice Department’s violent crime reduction initiative, Project Safe Neighborhoods, which was reinvigorated in October 2017. The initiative focuses on reducing gun crime and prosecuting violent offenders, often with multiple felony convictions. To support the initiative, the United States Attorney’s Office for the Northern District of Oklahoma increased its prosecutions by more than 200 per cent, when compared to 2017, and focused on strengthening partnerships with local, state, tribal and federal law enforcement partners. This corresponded with a drop in murder and other violent crime in Tulsa. Violent crime in east Tulsa decreased significantly. Aggravated assaults decreased by 25 per cent, robberies by 12 per cent, and rapes by 30 per cent. Moreover, Tulsa’s violent crime statistics in 2018 reflected four-year lows throughout Tulsa in homicides, aggravated assaults, robberies, commercial and residential burglaries, and larcenies.

Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools.  The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.

United States Attorney Trent Shores today announced the apprehension of a fugitive on the FBI’s Wanted List who was charged in a 2014 federal indictment for alleged drug and gang conspiracy.

The Tulsa Police Department’s Special Investigations Division arrested Rodney Roy Parker, 47, on Monday in Tulsa. Parker was a fugitive for nearly five years.

Law enforcement originally issued an arrest warrant for Parker on Aug. 13, 2014. He was wanted on federal charges related to the FBI and Tulsa Police Department’s drug investigations titled “Operation Battlefield” and “Battlefield Aftermath”. The resulting indictment alleged that the Hoover Crips distributed $10 million worth of cocaine from Mexican cartels, murdered at least one witness, and had a vast network of co-conspirators.

“Justice never sleeps. Neither does the Tulsa Police Department nor the FBI. Rodney Parker learned that firsthand. You can try to run, but we will find you,” said U.S. Attorney Shores. “The tenacity of Detective Jesse McNeal, the Tulsa Police Department’s Special Investigation Division, and the FBI’s Tulsa Resident Office are to be commended. Thanks to their diligence, Parker will now answer for his alleged crimes in a court of law.”

“We could not be more proud of Detective McNeal,” said Tulsa Police Chief Chuck Jordan. “We are glad that this final arrest will bring Battlefield to its conclusion.  We appreciate the collaboration with our federal partners that resulted in over 50 arrests in this significant drug case.”

Acting Special Agent in Charge, Melissa Godbold, FBI Oklahoma City Division stated, "The arrest of Rodney Parker is a testament to our law enforcement partnerships and the countless hours dedicated to bringing Mr. Parker to justice. The FBI is extremely proud to be a part of the investigative work that resulted in removing another dangerous criminal from the streets of Tulsa."  

Parker is charged in the indictment with conspiracy to possess with intent to distribute, distribution and to manufacture 280 grams of “crack” cocaine, intent to distribute 5 kilograms or more of cocaine, and intent to distribute 100 kilograms or more of marijuana. Parker is also charged with multiple counts of using a communication facility in the commission of a drug trafficking felony.

Parker is currently in the custody of the U.S. Marshals Service. He faces a potential maximum sentence of life imprisonment. He is scheduled to be arraigned in federal court Tuesday at 2 pm.

“Operation Battlefield” and “Battlefield Aftermath” were large-scale law enforcement operations that started in 2011 targeting “crack” cocaine distribution locations in Tulsa. The FBI, Tulsa Police Department, Broken Arrow Police Department, Drug Enforcement Administration, and Bureau of Alcohol Tobacco, Firearms and Explosives conducted the investigations, which spanned four states and culminated in 2014 with 51 individuals indicted for drug conspiracy. Assistant U.S. Attorney Robert T. Raley is prosecuting the case.

A man who was shot by store employees while robbing a Tulsa liquor store was sentenced Friday to 22 years in federal prison, announced U.S. Attorney Trent Shores.

U.S. District Judge Gregory K. Frizzell further sentenced Tyrone Lee, 37, of Tulsa, to 5 years supervised release following his term of imprisonment.

 “Violent criminals like Tyrone Lee are a threat to the lives of every Oklahoman. This robbery could have ended in tragedy, but it ended with justice,” said U.S. Attorney Shores. “We are pleased the court handed down a sentence of 22 years in federal prison. Chalk this up as another success story for Project Safe Neighborhoods, as another ‘Alpha criminal’ was removed from our Tulsa streets.”

In January, Lee pleaded guilty to the Feb. 22, 2018, robbery of Forest Acres Liquor. During the robbery, Lee threatened the store employees with a loaded sawed off shotgun. The two employees shot and injured Lee while the robbery was in progress, but he managed to escape. Tulsa police officers arrested Lee after he was admitted to a hospital for his injuries. Lee pleaded guilty to all four counts of the Indictment, which included the use and discharge of a firearm during and in relation to a crime of violence, possession of an unregistered firearm and felon in possession of a firearm. 

Lee will remain in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.

This case is the result of a joint investigation by the Tulsa Police Department, FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Dennis Fries prosecuted the case.

Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools.  The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.

A 71-year-old Tulsa man was sentenced today in U.S. District Court for convincing an adolescent to send him sexually explicit pictures using a cell phone, announced U.S. Attorney Trent Shores.

U.S. District Judge Claire V. Eagan sentenced James Wesley Barnes to 15 years in prison for possession of child pornography. Following completion of his prison term, Barnes will serve seven years on supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children.

“James Barnes’ perverse and deviant crimes are deserving of every day of his 15-year prison sentence. The physical, mental and emotional harm inflicted on this young victim may have lifetime repercussions,” said U.S. Attorney Shores. “It is inspiring to see that, in the face of fear and uncertainty, this child victim spoke out about the abuses perpetrated against her. Because of one child’s courage and resiliency, this vile predator is going to federal prison for a long time.”

At his plea hearing on Jan. 30, 2019, Barnes admitted that from March to June 2018, he possessed sexually explicit pictures of an eleven-year-old girl that she sent at his request.  According to court documents, Barnes was previously convicted in Tulsa County District Court for second-degree rape of a minor under 16 years of age.

Barnes remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prison’s facility.

The Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Shannon Cozzoni prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The man who shot and wounded Tulsa Police Sgt. Mike Parsons during a traffic stop in July has been ordered to federal prison today, announced U.S. Attorney Trent Shores.

U.S. District Judge Claire V. Eagan sentenced Chatman to 40 years in prison for his crimes.

In January, a jury found John Terry Chatman, Jr., 35, guilty of three federal counts for his actions at a local Quik Trip on July 3, 2018. The counts included being a felon in possession of a firearm and ammunition, obstruction of justice by attempting to kill a witness, and carrying, using and discharging a firearm during and in relation to a crime of violence.

“If you shoot a police officer, then you will go to prison for a long time. Plain and simple. John Chatman learned that lesson today,” said U.S. Attorney Shores. “In addition to the officers, Chatman also endangered the lives of innocent civilians when he pulled the trigger of his gun in the middle of a busy QuikTrip parking lot on the day before Independence Day. This prosecution should serve as a deterrent to anyone who would think about shooting at a police officer. They put their lives on the line every day to protect ours. I’m thankful for the brave men and women of the Tulsa Police Department.”

On July 3, Tulsa police officers discovered Chatman driving a mini-van with a license plate that was registered to a different vehicle. Officers explained the traffic violation and asked for identification. Chatman repeatedly refused to identify himself and questioned the officers’ jurisdiction. Chatman escalated the situation by refusing to exit the vehicle and demanding to speak to a supervisor.

Police body cameras show officers directing Chatman to exit the vehicle and repeatedly explaining the traffic and obstruction violations to him. Eventually, Tulsa Police Sergeant Mike Parsons arrived on scene and explained to Chatman that he was obstructing an investigation.

The video further showed that Sgt. Parsons again ordered the man to leave the vehicle, explaining to Chatman he would use PepperBalls to make him exit the vehicle. As the sergeant deployed his PepperBall gun into the vehicle, Chatman shot him with a handgun from within the mini-van, striking Sgt. Parsons. An officer returned fire, and Chatman was eventually arrested. The prosecution showed that the sergeant’s injuries could have been far more severe, potentially shattering his femur or hitting an artery, if a challenge coin in his pocket had not deflected the bullet.

A .32 caliber revolver was recovered from the scene with four spent cartridge casings in the firearm, and two live rounds. As a felon, Chatman was not allowed to possess firearms under federal law.

Chatman remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department investigated the case. U.S. Attorney Trent Shores and Assistant U.S. Attorneys Allen Litchfield and Mark Morgan prosecuted the case.

A 33-year-old Mexican national, unlawfully in the United States, has been sentenced to prison for making  false statements to a federal agency and for using a false social security number, announced U.S. Attorney Trent Shores

Today, U.S. District Court Judge Gregory K. Frizzell sentenced Juan Manuel Mata-Cruz, of Tulsa, to 5 months in federal prison to be followed by 1 year supervised release. After his release from prison, he will face deportation proceedings.

“Illegal aliens attempting to illegally access our critical infrastructure with fake green cards is disconcerting. Cases like this have my full attention. This defendant put at risk the safety and security of passengers, airport employees and aircrews,” said U.S. Attorney Trent Shores. “The defendant’s attempt to obtain an Airport Security Badge using a counterfeited green card and Social Security Card was quickly uncovered. Credit goes to the men and women of the the Department of Homeland Security’s Homeland Security Investigations, Federal Air Marshals Service, the Social Security Administration/Office of Inspector General, and the Tulsa Airport Security Office. They should be commended for upholding federal security laws and procedures which ensure the safety of those traveling and working in U.S. airports. This was quality work by dedicated civil servants.”

On November 9, 2018, Mata-Cruz knowingly made false statements on Tulsa International Airport (“TIA”) paperwork when applying for a security identification badge that would have allowed him unrestricted access to the TIA aircraft operating area. Mata-Cruz was required to obtain the badge as part of his recently obtained position as a restaurant worker at the airport. On the TIA badge application, Mata-Cruz claimed to be a U.S. citizen and used a fraudulent social security number.  Individuals who apply to work in U.S. airports are required to fill out federal background check paperwork that asks specific questions about legal status and previous convictions.  Convicted felons and illegal aliens are among those prohibited from working in an airport.

Mata-Cruz has been in custody since his November 9, 2018 arrest and will remain in custody of the U.S. Marshal pending transfer to a U.S. Bureau of Prisons facility.

This case resulted from a joint investigation performed by Department of Homeland Security’s Homeland Security Investigations (HSI), Federal Air Marshal Service, (“FAMS”), the Social Security Administration/Office of Inspector General (SSA-OIG) and the Tulsa Airport Security Office. Assistant United States Attorney Charles M. McLoughlin prosecuted the case.

United States Attorney Trent Shores announced the arrests of a Mayes County man and woman who were wanted in connection to a methamphetamine drug conspiracy. The two were taken into custody during a joint law enforcement operation early this morning at their residence in Chouteau.

Arrest warrants had been issued for Gary Scott Moreland, 54, and Rebecca Jane Nichols, 40, both of Chouteau, after a grand jury indicted the two for drug conspiracy this month.

Also named in the indictment were Wesley Joseph Griffin, 39, of Pryor, and Aaron John Culkins, 42, of Tulsa. The indictment alleged that the co-conspirators possessed with intent to distribute 500 grams or more of methamphetamine in the Northern District of Oklahoma from August 2017 to April 2019.

“Our partnerships extend to all areas of northeastern Oklahoma. I’m proud to work with Mayes County officials to bust this alleged methamphetamine distribution operation,” said U.S. Attorney Shores. “Methamphetamine overdoses are one of the leading causes of drug-related deaths in Oklahoma. And so drug dealers better believe that we are looking to dismantle their operations and hold them accountable.”

The Drug Enforcement Administration, Tulsa Police Department, Oklahoma Highway Patrol, Mayes County Sheriff’s Office and Pryor Police Department conducted the investigation and arrests. The Broken Arrow Police Department, Oklahoma Bureau of Narcotics, Tulsa County Sheriff’s Office and Oklahoma National Guard Counter Drug Task Force also assisted in the investigation. Assistant U.S. Attorney Christopher J. Nassar is prosecuting the case.

An Indictment is a formal statement of charges or alleged violations of law. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

U.S. Attorney Trent Shores encourages the public to take part in the DEA’s 17th  semi-annual National Prescription Drug Take Back Day, April 27, 10 a.m. to 2 p.m., at 14 collection sites throughout the Northern District of Oklahoma. The event is an effort to rid homes of unused and expired opioids and other medicines, where they are vulnerable to misuse, theft or abuse by family members and friends.

“Prescription drug abuse can devastate families and communities. The fact of the matter is that unsecured and unused medications pose a danger. Research shows that addiction often begins with easily accessible medications,” said U.S. Attorney Shores. “I encourage Oklahomans to safely dispose of their unused medications at a DEA Take Back location on April 27.”

“Twice a year, the DEA invites you to dispose of unwanted and unused prescription drugs at locations across the United States,” said Clyde E. Shelley, Jr., Special Agent in Charge of the Drug Enforcement Administration Dallas Division.  “Please join us in our continued mission to diffuse the curiosity of drugs. It’s the right choice to make and will give people peace of mind that these prescription drugs are destroyed in an environmentally safe manner.”

In October 2018, Oklahomans living in the 11 counties comprising the Northern District of Oklahoma (Tulsa, Pawnee, Osage, Creek, Washington, Nowata, Rogers, Craig, Mayes, Ottawa, and Delaware Counties) turned over 864.492 pounds of expired, unused, and unwanted prescription drugs. Throughout the United States, 457 tons (900,000 pounds) of prescription drugs were turned in at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners.

Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)

Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.

Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.

Collection sites in the Northern District of Oklahoma are:

- Miami Police Department: 129 5th Ave Northwest, Miami

- Miami Nation Tribal Police: 3410 P Street Northwest, Miami

- Robert Whitebird Cultural Center: 905 Whitebird St., Quapaw

- Walmart: 4901 S. Main S. Mill, Pryor

- Walmart: 1002 W. Taft Ave., Sapulpa

- Newson6: 303 N. Boston Ave., Tulsa

- Crime Stoppers Office: 4107 S. Yale, Tulsa

- Patrick Henry Elementary: 3820 E 41st St., Tulsa

-The Met Recycling Center: 3495 S. Sheridan, Tulsa

- Reasors: 7114 S. Sheridan Rd., Tulsa

- Walgreens: 1150 Garnett Rd., Tulsa

- Walgreens: 2323 W. Edison St., Tulsa

- Eastern Shawnee Police Department: 10250 S. 695 R., Wyandotte

- Bear Skin Health Center: 14 S. Main, Wyandotte

For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.

A Tulsa man has been sentenced today in U.S. District Court for dealing methamphetamine, brandishing a loaded gun at investigators and counterfeiting money, announced U.S. Attorney Trent Shores.

U.S. District Judge Gregory K. Frizzell sentenced Shaun Cruz Conine, 46, to 30 years in federal prison for his crimes. Conine previously pleaded guilty on Jan. 17, 2019, admitting to possessing with intent to distribute more than 50 grams of methamphetamine and other controlled substances, brandishing a firearm at officers and counterfeiting U.S. currency with intent to pass it off as genuine.

“Since taking the oath as United States Attorney, ensuring public safety has been my most urgent and paramount priority. I want for every citizen in northern Oklahoma to have a safe neighborhood with safe streets. The centerpiece of our enforcement efforts is Project Safe Neighborhoods, an initiative that promotes partnerships,” said U.S. Attorney Shores. “Conine, a drug dealing and gun wielding Alpha criminal, is experiencing firsthand the results of our PSN partnerships. Federal and tribal law enforcement agencies worked seamlessly, side-by-side to investigate and arrest Conine. This was truly a team effort between investigators and my federal prosecutors. Conine’s 30-year sentence in federal prison is not only appropriate, it is just. Tulsans are safer with Shaun Conine behind bars.”

Conine was arrested on September 19, 2018, after he ran a stop sign and fled from Muscogee (Creek) Nation Lighthorse officers who were attempting to question him in reference to a death that occurred at the River Spirit Casino. During the investigation, Conine was identified as last being seen with the individual and is known to have supplied her with drugs.

As Conine fled, he brandished a loaded revolver at the pursuing investigators. He eventually crashed and rolled his vehicle. Inside the vehicle, investigators discovered multiple drugs including methamphetamine, fentanyl and pills; syringes; digital weight scales; glass pipes; and multiple firearms including a shotgun, two rifles and a revolver. Investigators also found credit cards, passports, social security cards and Oklahoma identification cards bearing different names as well as counterfeit currency and multiple electronic devices that were used for counterfeiting.

Conine remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.

The Muscogee (Creek) Nation Lighthorse Tribal Police Department, Secret Service, FBI and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney and Tribal Liaison Shannon Cozzoni and Assistant U.S. Attorney Scott Proctor prosecuted the case.

After 17 years on the run, a former Tulsa resident was sentenced to federal prison for violating the terms of his supervised release stemming from a 1999 bank fraud conviction, announced U.S. Attorney Trent Shores.

Senior U.S. District Judge Terence Kern sentenced Steven John McGuire, 54, of Henderson, Nevada, to six months imprisonment in the U.S. Bureau of Prisons followed by 18 months supervised release with the condition that he serve six months in home detention with electronic monitoring.

On Oct. 27, 1999, McGuire was sentenced for the crime of bank fraud. The defendant, who at the time did not have a previous criminal record, was sentenced to six months of home detention with electronic monitoring to be followed by three years of supervised release. He was also ordered to pay restitution to the bank in the amount of $19,747.79.  In 2002, authorities discovered that he violated the terms of his supervised release by committing bank fraud again. McGuire fled Oklahoma knowing that he would face a potential prison sentence. United States Probation Officers found McGuire’s residence abandoned, his leased vehicle returned to the dealership, and his telephone accounts disconnected. From July 2002 until his arrest in February 2019, McGuire remained a fugitive.

“Steven McGuire is a con artist. He has not changed. He has a lengthy history of avoiding responsibility as evidenced by his continued fraudulent financial activity after his initial conviction, living as a fugitive under an assumed identity, and most recently, fleeing and violently resisting police officers who were about to discover there was a warrant for his arrest,” said U.S. Attorney Trent Shores. “Justice may have been delayed for 17 years, but today justice has been served.”

During his time as a fugitive, McGuire lived under an assumed identity near Henderson, Nevada. After a routine stop for a traffic violation in February 2019, the Henderson Police Department eventually learned of the warrant for McGuire’s arrest. When McGuire provided identification to the officer during the stop, the officer discovered the identification was false. McGuire then ran from the officer, and after a lengthy foot pursuit and violent struggle, McGuire was taken into custody. The officer later found other fraudulent identification in the car. It wasn’t until McGuire was fingerprinted that his true identity became known.

In 1998, McGuire’s initial crime consisted of depositing a $25,000 temporary check into his business bank account drawn on a different bank account in McKinney, Texas, that in reality only had a balance of $100. On May 14, 1998, the victim bank credited McGuire’s account with the $25,000. This inflated the balance in that account, allowing McGuire to withdraw cash and write checks totaling $22,747.79 prior to the return of the unfunded check. This illegal practice is also known as check kiting. Later on May 28, 1998, McGuire received a legitimate check from a customer for approximately $34,000. Instead of depositing those funds into his account at the victim bank to cover his inflated balance there, McGuire opened yet another bank account at a third bank, and purchased a $33,000 Certificate of Deposit, also known as a CD, to secure a $35,000 line there. He was sentenced on Oct. 27, 1999 for the crime.

On Dec. 16, 1999, the conditions of McGuire’s supervised release were modified to reflect improper conduct on his part. McGuire’s business partner discovered that McGuire had used the working capital that he had supplied to McGuire to pay restitution for his crime instead of paying the expenses of the business. This left the business with a $9,000 debt. The business partner withdrew from the partnership. McGuire then began soliciting investors in violation of the Special Financial Conditions of his Supervised Release.

In 2002, a Petition to Revoke Supervised Release was filed alleging McGuire had committed the same type of bank fraud that had resulted in his conviction in 1999. McGuire had deposited a fraudulent check in his business account at Tulsa Case Federal Employees Credit Union, thereby inflating the balance. McGuire then used funds from the inflated balance to get the bank to issue two unfunded cashier’s checks in the amount of $6,000 and $9,893 so he could pay suppliers to his business.

McGuire remains in the custody of the U.S. Marshals pending transfer to a U.S. Bureau of Prisons facility.

The U.S. Marshal Service of the Northern District of Oklahoma and the District of Nevada, U.S. Probation Office and the Henderson Nevada Police Department conducted the investigation, and Assistant U.S. Attorney Charles McLoughlin prosecuted the case.

A California man pleaded guilty Friday in U.S. District Court to interstate travel in aid of a racketeering enterprise for his role in transporting marijuana for Tong Moua Vang, announced U.S. Attorney Trent Shores.

At his hearing, David Mason Leslie, Jr., 54, of Cucamonga, California, admitted that in July 2018, he aided in the transport of marijuana for Tong Vang, of Tulsa. Leslie stated that he rented a car and trailer to transport marijuana from California to Tulsa for distribution to areas outside of Oklahoma. Leslie was arrested near Omaha, Nebraska, July 30, 2018, after law enforcement discovered 200 pounds of marijuana in the trailer.

“Crime doesn’t pay. Leslie made a costly decision simply for what he thought was easy money. He got caught up in the wrong game and now may pay the price by being sentenced to federal prison for taking part in this marijuana operation,” said U.S. Attorney Shores.

The transport of the drug was part of a marijuana distribution operation led by Kong Meng Vang, who pleaded guilty in August 2018 to drug conspiracy, money laundering and possession with intent to distribute 100 kilograms or more of marijuana. Tong Vang was later named to the drug conspiracy in a superseding indictment. Tong Vang purchased marijuana in California then recruited and paid others to transport it outside of state. Leslie originally hauled cars for Kong Meng Vang, and was later recruited by Tong Vang to transport the marijuana.

U.S. District Chief Judge John E. Dowdell accepted his plea and set sentencing for July 11, 2019.  Leslie remains in custody while awaiting sentencing. At that time, he faces a potential maximum sentence of five years imprisonment and a $250,000 fine.

The Drug Enforcement Administration and IRS-Criminal Investigation are the investigative agencies. Assistant U.S. Attorney’s Joseph F. Wilson and Richard M. Cella are prosecuting the case

As the filing deadline for income taxes quickly approaches, United States Attorney Trent Shores announced that charges have been filed against four individuals for tax crimes.

“Tax Day is nearly upon us and millions of honest Americans will meet their tax obligations as required. However, there are those who will seek to cheat the system, and they must be held accountable. Those who file false returns, embezzle payroll taxes, commit identity theft to receive fraudulent refunds or fail to file tax returns at all can expect to be investigated and prosecuted."

During this tax season, the following individuals have been charged with fraudulent tax practices:

On April 3, 2019, Earenest J. Grayson Jr., 45, of Tulsa, Oklahoma, was indicted for 10 counts of failing to account for or pay over to the Internal Revenue Service (IRS) payroll taxes withheld from wages paid to employees of his business, Zealcon Corporation (Zealcon), during the years 2014, 2015, and 2016. Grayson was also indicted for three counts of failing to file corporate income tax returns for Zealcon for the years 2013, 2014 and 2015, and failing to file his own personal income tax returns for the years 2013, 2014 and 2015. The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division is prosecuting the case, in coordination with Assistant United States Attorneys Charles M. McLoughlin and Victor A.S. Régal,

On April 4, 2019, Gina Lisa Preble, 59, of Bartlesville, was charged by Criminal Information with bank fraud and subscribing to a false tax return. Preble was employed as a clerk at TransWood Carriers Incorporated from 2011 until her termination in 2017. In an effort to disguise her intent to steal funds, Preble allegedly created fraudulent “draft checks” which she mixed in with legitimate business expense “draft checks” and provided to a supervisor for signature. Preble deposited draft checks totaling $394,058.20 into her personal checking account, and used the funds for her own personal gain. Additionally in 2016, Preble signed and submitted a false tax return, omitting the stolen funds as income. The case was investigated by special agents of IRS-Criminal Investigation and the FBI. Assistant U.S. Attorneys Charles M. McLoughlin and Catherine J. Depew are prosecuting the case.

On April 5, 2019, Kevin Glenn Petty, 54, of Sand Springs was charged by Criminal Complaint with Theft of Government Property.  Petty allegedly filed fraudulent 2016 income tax returns under the name of taxpayer Woodson J. Nightwalker. The $3,800 tax refund amount was deposited into a Green Dot card account, which funded a Green Dot pre-paid debit account. Petty filed five additional fraudulent returns, which were intercepted by the IRS. The six false returns filed by Petty sought a total of $12, 303 in fraudulent refunds. The case was investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspector. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case.

On April 10, 2019, Jennifer Leann McCormick 44, of Nowata, was charged by Misdemeanor Criminal Information with failure to file a tax return for 2013. The case was investigated by special agents of IRS-Criminal Investigation. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case.

A Criminal Information or Criminal Complaint is a set of allegations that, if a case were to proceed to trial, the government would need to prove beyond a reasonable doubt. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt. Defendants are presumed innocent until proven guilty in a court of law.

TULSA, Okla. – United States Attorney Trent Shores announced that five “lie and try” defendants have pleaded guilty to violations of federal firearms laws that stemmed from “lie and try” charges filed in February. The charges were announced by U.S. Attorney Shores and law enforcement officials from the Bureau of Alcohol Tobacco Firearms and Explosives, U.S. Marshals Service, Tulsa Police Department, Tulsa County Sheriff’s Office and Delaware County Sheriff’s Office during a February press conference.

“All too often, illegally purchased guns are then used to commit violent crimes. From domestic violence to mass shootings, time and again we see that criminals committing these heinous acts should never have had a gun in the first place because they are a “prohibited person” under federal law. Our “lie-and-try” prosecutions seek to stop the firearms from ever making it into the hands of those prohibited persons,” said U.S. Attorney Shores. “The ATF has been and continues to be a great partner to hold accountable those who lie on federal forms and try to purchase a gun. The ATF’s efforts to stop “lie and try” purchases in Tulsa will help prevent violent gun crimes in our community. Every gun related crime or tragedy prevented through “lie and try” prosecutions is a victory for all of us.”

“Prior to stepping foot in a gun store, potential purchasers with eligibility concerns have access to a variety of information, reference materials and Q&A at www.atf.gov or by contacting their local ATF Office,” stated Dallas Division ATF Special Agent in Charge Jeffrey C. Boshek II. “The ATF Form 4473 questions are designed to identify prohibited persons and prevent the illegal transfer and possession of firearms. “Lie-And-Try”, or lying on the form about facts relevant to the transfer of a firearm is a felony, period.” 

The following defendants were charged with making false statements in connection the attempted acquisition of a firearm and other firearm offenses: Glenville L. Albright, 50, of Pawhuska; Anthony Dale Brannon, 59, of Grove; Rufus Hicks, Jr., 39, of Tulsa, Christopher Manzanares, 28, of Broken Arrow; and Bradley Wikel, 31, of Jay. 

Four of the men lied on the ATF Form 4473, answering no, when asked if they were convicted felons. The fifth man, Manzanares, lied when answering that he was not subject to a restraining order. 

As a result of the ATF investigation, the men pleaded guilty to making false statements in connection with the attempted acquisition of a firearm or to other related federal firearms violations, including felon in possession of a firearm and possession of a firearm and ammunition while subject to a domestic violence restraining order.

The ATF Form 4473, specifically questions potential purchasers about their criminal history, for example, if they’ve been convicted of a felony, domestic abuse, and/or illegal drug use. The maximum penalty for making a false statement during the purchase of a firearm is 10 years in prison.

Additionally, Federal Firearms Licensees (FFLs), who sell or transfer a firearm to a prohibited person, allow a straw purchaser to buy a gun for someone else, or fail to keep proper records of who they sell firearms to, also face criminal prosecution.

All men have pleaded guilty this month to the following firearms violations:

• Albright: Felon in Possession of a Firearm
• Brannon: Felon in Possession of a Firearm
• Hicks: False Statement in Connection With the Attempted Acquisition of a Firearm
• Wikel: False Statement in Connection With the Attempted Acquisition of a Firearm
• Manzanares: Possession of a Firearm and Ammunition While Subject to a Domestic Violence Restraining Order

The ATF and the Broken Arrow Police Department are the investigative agencies. Assistant U.S. Attorneys Richard M. Cella, Eric O. Johnston, and Christopher J. Nassar and Victor A.S. Régal prosecuted the cases.

TULSA, Okla. – A man, who allegedly made threats via Facebook Messenger to “shoot and kill a bunch of people downtown…” made his initial appearance in U.S. District Court today, announced U.S. Attorney Trent Shores. The threats were made by Hill and investigated by law enforcement in August 2018.

In March 2019, a federal grand jury indicted Jared Lorenzo Hill, 35, of Tulsa, for Interstate Communication of a Threat. The indictment was unsealed today.

“Using social media to threaten a mass shooting is not exercising free speech, it’s committing a federal crime. I am thankful that citizens who saw the defendant’s alleged threats immediately brought them to the attention of law enforcement authorities who acted swiftly and decisively,” said U.S. Attorney Shores. “I encourage all citizens to take seriously and report threats of violence, including those posted on social media. If you see something, say something. You might very well be saving lives.”

If convicted, Hill faces a maximum penalty of five years in prison and a $250,000 fine.

The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.

The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

An orthopedic surgeon, who formerly practiced in Claremore, was sentenced today in U.S. District Court for leading multiple conspiracies to write fraudulent opioid prescriptions from October 2015 to October 2017, announced U.S. Attorney Trent Shores.   

U.S. District Judge John E. Dowdell sentenced Dr. Jeremy David Thomas, 43, of Owasso, to five months imprisonment followed by eight months of home confinement for his role in five separate pill sharing conspiracy cases. Thomas was also ordered to pay a $5,000 fine and to three years supervised release.

“Dr. Thomas was a drug dealer like any other whose business it was to peddle opioids and addiction in our community. But unlike a typical drug dealer, he also performed surgeries on patients. Moreover, he was under the influence during those surgeries,” said U.S. Attorney Shores. “Opioid addiction destroys lives. Not only of the addict, but of those around them. This case showcases the destructive power of opioids.”

“Dr. Thomas’ patients trusted and relied on him for their medical needs” said Drug Enforcement Administration (DEA) Dallas Division Special Agent in Charge Clyde E. Shelley, Jr.  “However, Dr. Thomas used his patients for his own opioid use and put patients’ lives in danger.  We will continue to combat the opioid crisis to cease this kind of practice.”

Thomas’ pleaded guilty Nov. 26, 2018, to writing fraudulent prescriptions for the opioid hydrocodone to multiple co-conspirators who were his patients. His accomplices then filled the prescriptions at area pharmacies and delivered some or all of the hydrocodone tablets to Thomas. As a result of their illegal pill sharing activity, Thomas and his co-conspirators diverted more than 13,740 doses of the drug during a two year period, mainly for the physician’s illegal personal use.

Rogers County District Attorney Matt Ballard, whose investigators were crucial to the case said, “This is an excellent example of the type of cooperative effort needed to battle this deadly epidemic.  This case shows the dangers of opioid abuse and addiction which cut through all socioeconomic statuses and have a negative domino effect in our communities.”

US Attorney Shores also noted the collaborative law enforcement effort involved with this case, “This case was successfully prosecuted thanks to a collaborative effort with Rogers County District Attorney Matt Ballard and his team. The investigators from the Rogers County District Attorney’s Office along with the Drug Enforcement Administration and Oklahoma Bureau of Narcotics and Dangerous Drugs are all to be commended for their work in bringing Dr. Thomas to Justice.”

Also implicated in the drug conspiracies were Jeffrey Lee Koger, 48, of Claremore; Joseph Marcus Jones, 36, of Claremore; Toni Dawn Martin, 49, of Owasso; Shawn Del Martin, 50, of Owasso; and Chad Lee Choat, 46, of Claremore.

Opioid addiction has plagued families and taken lives. Painkillers are involved in more than 80% of the prescription drug-related overdose deaths in Oklahoma, and hundreds of Oklahomans die each year due to these overdoses. Due to staggering cost of addiction and this month’s DEA National Prescription Drug Take Back Day, April 27, U.S. Attorney Shores has created a Public Service Announcement reminding families to protect their loved ones by safely disposing of prescription drugs and to seek help if you or a loved one is struggling with addiction. You can find the Public Service Announcement here.

The Rogers County District Attorney’s Office, the Drug Enforcement Administration, and the Oklahoma Bureau of Narcotics and Dangerous Drugs conducted the investigation. Assistant U.S. Attorney Joel-lyn McCormick prosecuted the case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.

This investigation and resulting conviction are part of the Department of Justice and Department of Health and Human Services’ 2018 National Healthcare Fraud and Opioid Takedown initiative, the largest ever healthcare fraud enforcement action. The U.S. Attorney’s Office will continue to prosecute medical professionals who break the law and contribute to opioid addiction.

To find help and resources to fight opioid addiction, visit the following site: https://findtreatment.samhsa.gov

 

TULSA, Okla. – Two more Tulsa doctors have entered into settlement agreements with the U.S. Attorney’s Office for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores.

Lam Nguyen, 47, a licensed doctor of osteopathic medicine, agreed to pay the government $124,139.98 for allegedly accepting illegal kickback payments from OK Compounding. In a separate settlement, Hugo Salguero, 44, a licensed medical doctor specializing in pain medicine, agreed to pay the government $228,301.76 for allegedly accepting illegal kickback payments from OK Compounding.

These civil settlements resulted from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding in return for payments.

“Medical professionals in northern Oklahoma should know by now that my office is focused on stopping the exploitation of federal health care programs,” said U.S. Attorney Trent Shores. “We will hold accountable corrupt physicians and recoup the monies they stole from critical programs intended to support the elderly and those who have served our nation.”

"These settlements highlight the Defense Criminal Investigative Service (DCIS) and its law enforcement partners' commitment to aggressively investigate health care providers who defraud the Department of Defense (DoD) health care program known as TRICARE, to preserve American taxpayer dollars intended to care for our warfighters, their family members and military retirees," said DCIS Special Agent in Charge Michael C. Mentavlos.

Beginning in 2013, Dr. Nguyen and Dr. Salguero prescribed pain creams for their patients, facilitating the sale and distribution of the creams. As compensation for their services, OK Compounding paid the doctors based upon an hourly rate. However, the payments the two physicians received from the company were, in actuality, kickbacks.  Because some of the patients were insured by Medicare, Tricare, and the Veterans Health Administration, the kickbacks were in violation of the False Claims Act. 

It is illegal to pay or receive kickbacks in conjunction with federal health care insurance. Prohibitions against kickbacks are crucial to insure that financial motives do not undermine the medical judgment of physicians and other health care providers.  The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.

These settlements resolve allegations that Dr. Nguyen and Dr. Salguero had illegal financial relationships with OK Compounding concerning pain creams in 2013. 

Since January 2019, seven medical professionals have settled for allegedly receiving kickback payments from the company.

To report fraud and abuse against the Federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the Affirmative Civil Enforcement (ACE) Unit.  The ACE Unit is responsible for filing civil lawsuits on behalf of the United States, to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws.

Information regarding health care fraud to Medicare can also be reported to the Department of Health and Human Services, Office of Inspector General, at https://oig.hhs.gov/fraud/reportfraud/index.asp.  Information for fraud against Tricare can be reported at https://health.mil/Military-Health-Topics/Access-Cost-Quality-and-Safety/Quality-And-Safety-of-Healthcare/Program-Integrity/Fraud-and-Abuse-Report-Submission-Form.

These matters were handled by Assistant U.S. Attorney Marianne Hardcastle, and are the product of a collaborative investigation by the Defense Criminal Investigative Service; Department of Labor–Office of Inspector General (OIG); IRS–Criminal Investigation; U.S. Postal Service–OIG; FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG. 

The claims resolved by the settlements are allegations only; there has been no determination of liability.  

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TULSA, Okla. – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office for the Northern District of Oklahoma and the Office of the Tulsa County District Attorney are hosting “A Community Day of Hope”, April 13, from 9 a.m. to 1 p.m. This free community event will be held at OSU Tulsa- 700 Greenwood Avenue, Tulsa, Oklahoma.

“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."

“The ‘Community Day of Hope’ is an opportunity to educate our community about crime victim resources. I have always found this event to be inspiring, as crime victims come forward to tell their stories of strength and resiliency. Their courage to publicly share their stories empowers others to come forward,” said U.S. Attorney Shores. “Victims and their families cannot go through these life changing tragedies alone. I am committed to ensuring victims are given a voice in the courtroom and have access to the resources they need to obtain help and healing.”

Speakers at this year’s event in the Northern District of Oklahoma are U.S. Attorney Trent Shores, Oklahoma Attorney General Mike Hunter, Tulsa County District Attorney Steve Kunzweiler, Tulsa County Sheriff Vic Regalado and Tulsa Police Chief Chuck Jordan. The event will held in conjunction with the Tulsa Health Departments’ one mile ENDUI Walk in remembrance of loved ones lost to DUI-related crashes, which starts at 10 a.m. The Oklahoma Blood Institute will also have a mobile unit available on site to collect blood donations which will be used to help fellow Oklahomans.

Community members attending the event will also hear from crime victims and their families; Melissa Blanton, Chief, Victim Services Unit, Oklahoma Attorney General’s Office; One Fire Cherokee Nation Victim Services Director Nikki Baker-Limor; and Muscogee (Creek) Nation Family Violence Prevention Program Director Shawn Partridge.

Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.

The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.

The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.

The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.

The Office of Justice Programs provides innovative leadership to federal, state, local and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Victim Witness Program at (918) 382-2700.

 

The owner of a computer software development company, who failed to pay over payroll taxes withheld from his employees’ wages and failed to file individual and corporate income tax returns, was indicted by a grand jury in Tulsa, Oklahoma, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Trent Shores. An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.

“Earenest Grayson is an alleged dishonest employer who cheated both his employees and the United States government. As tax day approaches, I hope his story will dissuade other business owners from trying to cheat the system. Millions of honest small businesses pay their fair share of taxes to finance government operations. Unfortunately, Mr. Grayson’s choice not to do so has subjected him to criminal prosecution,” stated U.S. Attorney Shores.

Earenest J. Grayson Jr., of Tulsa, Oklahoma, was indicted for 10 counts of failing to account for or pay over to the Internal Revenue Service (IRS) payroll taxes withheld from wages paid to employees of his business, Zealcon Corporation (Zealcon), during the years 2014, 2015, and 2016. Grayson was also indicted for three counts of failing to file corporate income tax returns for Zealcon for the years 2013, 2014 and 2015, and failing to file his own income tax returns for the years 2013, 2014 and 2015. 

According to the allegations in the indictment, as Zealcon’s owner, Grayson was responsible for reporting and paying over payroll taxes withheld from the wages paid to his employees. The indictment alleges that Grayson knew of this obligation and intentionally failed to account for or pay over to the IRS more than $300,000 in taxes that had been withheld from employee wages from January 2014 through June 2016. The indictment further charges that for the years 2013-2015, Grayson did not file corporate income tax returns on behalf of Zealcon or individual income tax returns for himself, despite being legally required to do so.

If convicted, Grayson faces a maximum sentence of five years in prison for each count of failure to account for and pay over payroll taxes and one year in prison for each count of failure to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.

The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division is prosecuting the case, in coordination with Assistant United States Attorneys Charles M. McLoughlin and Victor A.S. Régal,

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

The owner of a computer software development company, who failed to pay over payroll taxes withheld from his employees’ wages and failed to file individual and corporate income tax returns, was indicted by a grand jury in Tulsa, Oklahoma, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores. 

Earenest J. Grayson Jr., of Tulsa, Oklahoma, was indicted for 10 counts of failing to account for or pay over to the Internal Revenue Service (IRS) payroll taxes withheld from wages paid to employees of his business, Zealcon Corporation (Zealcon), during the years 2014, 2015, and 2016. Grayson was also indicted for three counts of failing to file corporate income tax returns for Zealcon for the years 2013, 2014 and 2015, and failing to file his own income tax returns for the years 2013, 2014 and 2015.  

According to the allegations in the indictment, as Zealcon’s owner, Grayson was responsible for reporting and paying over payroll taxes withheld from the wages paid to his employees. The indictment alleges that Grayson knew of this obligation and intentionally failed to account for or pay over to the IRS more than $300,000 in taxes that had been withheld from employee wages from January 2014 through June 2016. The indictment further charges that for the years 2013-2015, Grayson did not file corporate income tax returns on behalf of Zealcon or individual income tax returns for himself, despite being legally required to do so.

If convicted, Grayson faces a maximum sentence of five years in prison for each count of failure to account for and pay over payroll taxes and one year in prison for each count of failure to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.

The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division is prosecuting the case.

An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

A former Mayes County Sheriff’s Office lieutenant pleaded guilty today to stealing methamphetamine that had officially been seized as evidence during multiple investigations, announced U.S. Attorney Trent Shores.

Brett Alan Mull, 48, of Pryor, was convicted of tampering with or destruction of evidence and acquiring controlled, dangerous substances by misrepresentation, fraud, forgery or deception. U.S. District Chief Judge Gregory K. Frizzell accepted the plea. During his hearing, Mull admitted to removing evidence envelopes containing methamphetamine before it was booked into the property room during his time as supervisor of the narcotics unit. In the plea agreement, he further admitted to stealing the drug to support his methamphetamine addiction. 

“Law enforcement officers should inspire trust and confidence in the communities they serve and protect,” said U.S. Attorney Shores. “Former Mayes County Deputy Brett Mull violated that trust when he abused his position to obtain and use methamphetamine that had been collected as evidence during drug investigations. Now he will face the consequences of his choices.”

Mull was originally charged in a Criminal Complaint filed in U.S. District Court on Oct. 11, 2018. According to the complaint, investigators discovered Oklahoma State Bureau of Investigation evidence submittal envelopes during a search of his residence, on July 3, 2018.  The envelopes appeared to have previously contained methamphetamine seized during Mayes County law enforcement operations. The complaint alleges that Mull admitted to officers that he had removed the evidence from the Criminal Investigations Unit, which he supervised, for his own personal use.

Mull remains on release pending his sentencing, scheduled for July 3, 2019.

The FBI conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts prosecuted the case

United States Attorney Trent Shores announced today the results of the April 2019 Federal Grand Jury.

The following individuals have been charged with violations of United States law in an indictment returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

Josue Abraham Alvarez-Marroquin. Reentry of Removed Alien. Alvarez-Marroquin, 30, of Tulsa, is charged with having returned to the United States unlawfully after being deported on Nov. 12, 2013, near Dallas, Texas. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) is the investigative agency.

Earenest Grayson, Jr. Failure to Account for and Pay Over Payroll Taxes; Failure to File Corporate Income Tax Returns; Failure to File Individual Income Tax Returns. Grayson, Jr., 45, of Tulsa, is charged with 10 counts of failing to account for or pay over to the Internal Revenue Service (IRS) payroll taxes withheld from wages paid to employees of his business, Zealcon Corporation (Zealcon), during the years 2014, 2015, and 2016. He allegedly failed to pay more than $300,000 in payroll taxes. Grayson was also indicted for three counts of failing to file corporate income tax returns for Zealcon for the years 2013, 2014 and 2015, and failing to file his own income tax returns for the years 2013, 2014 and 2015. The U.S. Department of Treasury, Internal Revenue Service/Criminal Investigation is the investigative agency.

Gabriel Wenseslado Guerra-Gaytan. Reentry of Removed Alien. Guerra-Gaytan, 27, of Tulsa, is charged with having returned to the United States unlawfully after being deported on Aug. 15, 2016, at or near Laredo, Texas. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) is the investigative agency.

Jose Eduardo Gutierrez-Sanchez. Reentry of Removed Alien. Gutierrez-Sanchez, 27, of Tulsa, is charged with having returned to the United States unlawfully after being deported on Aug. 9, 2012, at or near Brownsville, Texas. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) is the investigative agency.

John Michael McIntosh. Obstruct, Delay and Affect Commerce by Robbery; Carry, Use and Brandish a Firearm During and in Relation to a Crime of Violence. McIntosh, 21, of Tulsa, is charged with both obstructing, delaying and affecting commerce by robbery and carrying, using and brandishing a firearm during a crime of violence. The charges are related to five separate robberies of Sand Springs and Tulsa businesses in February 2019. McIntosh is alleged to have robbed a Kentucky Fried Chicken and a QuickTrip located in Sand Springs, as well as a QuickTrip, Waters Liquor Store and Liquor Mart located in Tulsa. The FBI and Sand Springs and Tulsa Police Departments are the investigative agencies.

Gilberto Melendez-Rodriguez. Reentry of Removed Alien. Melendez-Rodriguez, 41, of Tulsa, is charged with having returned to the United States unlawfully after being deported on March 28, 2011, at or near Laredo, Texas. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) is the investigative agency.

Julian Trujillo Morales and Victor Ybarra Robles, Jr. Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Possession of Cocaine. Morales, 29, and Robles, 53, both of Dallas, Texas, are charged with conspiring to distribute and to possessing with intent to distribute 500 grams or more of a substance containing a detectable amount of methamphetamine and with possessing with intent to distribute 500 grams or more of methamphetamine. Robles is further charged with knowingly and intentionally possessing cocaine. The charges resulted from a traffic stop in Pryor. The Pryor Police Department and Drug Enforcement Administration are the investigative agencies.

Jesus Parra-Lopez.  Reentry of Removed Alien. Parra-Lopez, 41, is charged with having returned to the United States unlawfully after being deported on July, 19 2016, at Del Rio, Texas. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) is the investigative agency.

Eric Eugene Royer. Felon in Possession of Firearm. Royer, 43, of Seligman, Missouri, is charged with being a felon in possession of a Smith & Wesson, .38 special caliber revolver and five rounds of associated ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Nowata County Sheriff’s Office and Nowata Police Department are the investigative agencies.

Feliciano Villarruel-Cabre. Reentry of Removed Alien; Aggravated Identity Theft; Failure to Register as a Sex Offender.  Villarruel-Cabre, 44, of Tulsa, is charged with having returned to the United States unlawfully after being deported on Sept. 11, 2007, at Hidalgo, Texas. He is also charged with aggravated identity theft. Villarruell-Cabre knowingly possessed, without lawful authority, the identification of another person. Finally, he is charged with failure to register as a sex offender. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI); Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO), and the U.S. Marshals Service are the investigative agencies.

A Killeen, Texas, private track coach and retired U.S. Army sergeant first class pleaded guilty Tuesday to transporting a minor with intent to engage in criminal sexual activity during a college visit in June 2017, announced U.S. Attorney Trent Shores.

In his plea agreement, Kerry Sloan, 56, of Harker Heights, Texas, admitted that when he drove the victim from Killeen to Tulsa for meetings with college coaches, he intended to engage in sexual activity with the victim without her consent at a Tulsa hotel. He also admitted that he ultimately did sexually assault the victim. After a 911 call was made on the return trip, the vehicle the two were traveling in was stopped by Pittsburg County Sheriff’s deputies, who were able to rescue the victim. During the ensuing investigation, victims dating back to 1990 came forward to report similar incidents involving Sloan.

“Kerry Sloan was a wolf in sheep’s clothing. He portrayed himself to parents and children as a trustworthy and caring mentor when in reality he was a danger to young girls,” said U.S. Attorney Shores. “During the course of this prosecution, even more victims than we were originally aware of came forward, claiming to have been groomed and assaulted by Mr. Sloan. His days of preying on unsuspecting families and their daughters are over. Federal prison is his next stop.”

U.S. District Judge Claire V. Eagan accepted the plea and scheduled Sloan’s sentencing for June 26, 2019. At that time, he faces a possible minimum penalty of 10 years in prison and a maximum penalty of life in prison; he further faces a maximum fine of $250,000. Sloan was permitted to remain on bond pending the sentencing hearing. While on bond, he will be heavily monitored by the U.S. Probation Office.

The Pittsburg County Sheriff’s Office, Killeen and Tulsa Police Departments and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. U.S. Attorney Christopher J. Nassar prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

A Tulsa man has been convicted of obstructing commerce by robbery; carrying, using and brandishing a firearm during a crime of violence; and Hobbs Act conspiracy, announced U.S. Attorney Trent Shores. Following the two day trial, the jury deliberated nearly three hours before convicting Melvin Louis Bailey, 26, of the crimes.

“A jury found Melvin Louis Bailey guilty late Tuesday on seven counts pertaining to the armed robberies of a Tulsa Walgreens. He robbed the same store four times at gun point, repeatedly instilling fear in store employees and endangering their lives,” said U.S. Attorney Shores. “I appreciate the jury’s service this week. Bailey is off the streets and can no longer wreak havoc in our community.”

The jury held Bailey accountable for four separate armed robberies of the Walgreens from April 2015 to January 2018.  During the robberies, Bailey brandished a shotgun or hand gun to intimidate employees. In January 2018, he also conspired with a juvenile to rob the Walgreens. As part of the conspiracy, Bailey provided a mask and firearm to the juvenile, and the two discussed strategy to commit the crime. Afterward, he and his co-conspirator met at Bailey’s apartment and divided the stolen money.

U.S. District Chief Judge Gregory K. Frizzell presided over the trial. After the conviction, he remanded Bailey into the custody of the U.S. Marshals Service pending his sentencing hearing, set for July 2, 2019.  At that time, Bailey faces a possible maximum sentence of life in prison.

The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Dennis Fries and Ryan Roberts prosecuted the case. 

U.S. Attorney Trent Shores announced today that due to recent amendments made to the City of Pryor Creek’s zoning code, the Justice Department will close its investigation into whether the city violated the Religious Land Use and Institutionalized Person’s Act of 2000 (RLUIPA) when it rejected Cornerstone Truth of God’s efforts to obtain a special use permit to operate a church there. RLUIPA is a civil rights law that protects against religious discrimination. 

The Pryor Creek City Council published the ordinance on March 25. The Justice Department will officially close the investigation in 30 days, when the zoning ordinance takes effect.

“Religious institutions of all faiths should be free from discriminatory zoning actions and ordinances that restrict their ability to expand or establish places of worship. I will work to ensure that is the case in northeastern Oklahoma,” said U.S. Attorney Shores. “In this instance, I appreciate Pryor Creek’s cooperation and willingness to find workable solutions that ensured the protection of the religious rights of the Cornerstone Truth of God Church. When city leaders were made aware that they had violated RLUIPA, they accommodated the church and examined what changes needed to be made to their zoning laws.”

In July 2017, the U.S. Attorney’s Office for the Northern District of Oklahoma, in partnership with the Department of Justice, opened an investigation into Pryor Creek’s zoning laws and whether the city discriminated against the Cornerstone Truth of God Church’s efforts to obtain a special use permit. The investigation centered on how zoning laws treated religious areas of assembly differently compared to secular areas of assembly. Religious groups in America have the constitutional right to use land for religious exercise, free from discriminatory restrictions, and to be treated on equal terms with secular groups.

Shortly after the investigation was opened, the City granted a special use permit to the church.  The City also began revising its zoning code so that it treated secular and religious areas of assembly the same.  On March 19, the City Council approved revisions to its zoning code, which put secular and religious areas of assembly on equal footing.

RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations.  Last year, the Justice Department announced its Place to Worship Initiative, which focusses on RLUIPA’s provisions that protect the rights of religious institutions to worship on their land.  More information is available at www.justice.gov/crt/placetoworship.

Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office for the Northern District of Oklahoma at (918) 382-2700 and ask for Civil Division Assistant U.S. Attorney Marianne Hardcastle.  You can also contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or on the complaint portal on the Place to Worship Initiative website. 

President Donald J. Trump today appointed Trent Shores, United States Attorney for the Northern District of Oklahoma, as a co-chair of a Presidential Task Force formed to address the institutional and systemic breakdown that failed to prevent a predatory pediatrician from sexually assaulting Native American children for years while employed by the Indian Health Service. U.S. Attorney Shores will partner with Joseph Grogan, Assistant to the President for Domestic Policy, to lead the Task Force.

The President announced the formation of a Presidential Task Force on Protecting Native American children in the Indian Health Service System today to examine any systemic problems that may have failed to prevent this doctor’s actions and led to any failures of the Indian Health Service to protect Native American Children.  The Task Force will develop recommended policies, protocols, and best practices to protect Native American children and prevent such abuse from ever happening again.

“I appreciate the confidence placed in me by President Trump to help lead this Task Force. We have the opportunity to do good work for a righteous cause. Protecting Native American children who enter the Indian Health Service system is a common sense mission. It’s also one which this Task Force will approach with a great sense of purpose and urgency. I’m thankful for President Trump’s focus on this issue and commitment to finding solutions to prevent these atrocities from happening again. This is about doing the right thing.”

Cherokee Nation Principal Chief Bill John Baker voiced his support for the appointment, “Trent Shores, the United States Attorney for the Northern District of Oklahoma, has a history of working to protect Indian children in Oklahoma and I have confidence in his ability to make safety recommendations as part of this new designated task force.”

Chickasaw Nation Governor Bill Anoatubby stated, “It is heartbreaking and unconscionable that an IHS pediatrician was allowed to prey upon Indian children. We commend and support the Administration and the Department of Justice for initiating this important review of IHS practices so that all proper measures are taken to ensure the protection and safety of all children.”

The Task Force will be comprised of subject-matter experts from several United States Government agencies, and co-chaired by Assistant to the President for Domestic Policy Joseph Grogan and U.S. Attorney Shores, a citizen of the Choctaw Nation.  In addition to U.S. Attorney Shores, the Task Force will include two other Oklahomans, Shannon Bears Cozzoni and Bo Leach. Ms. Cozzoni is an Assistant United States Attorney and Tribal Liaison in the Northern District of Oklahoma where she regularly works with tribes to address justice-related issues. Ms. Cozzoni previously served as the First Assistant Attorney General at the Muscogee (Creek) Nation and brings a wealth of experience to the Task Force. Bo Leach is the Assistant Special Agent in Charge of the Oklahoma City Division of the Bureau of Indian Affairs Office of Justice Services. ASAC Leach is a skilled criminal investigator with vast experience in law enforcement Indian Country, including investigating child sexual abuse. He is also a member of the Choctaw Nation.

The Task Force will draw on the expertise of other Federal employees and resources and seek perspective and input from tribal leaders and Native American voices. However, the work of the Task Force will not interfere with: (1) the criminal investigation of one particular pediatrician; (2) a review underway at the Department of Health and Human Services (HHS), including a review by the Department’s Inspector General, which HHS Secretary Azar ordered earlier this year; or (3) a review conducted by an outside, independent contractor retained by the Indian health system.

Members of the Presidential Task Force on Protecting Native American Children in the Indian Health Service System:

Joseph Grogan, Assistant to the President for Domestic Policy, Co-Chair

United States Attorney Trent Shores, Co-Chair

Bo Leach, Assistant Special Agent in Charge, Bureau of Indian Affairs, Office of Justice Services

Stephanie Knapp, MSW, LCSW, Child/Adolescent Forensic Interviewer, Federal Bureau of Investigation’s Office for Victims Assistance, Child Victim Services Unit

Shannon Bears Cozzoni, Tribal Liaison and Assistant United States Attorney, United States Attorney’s Office for the Northern District of Oklahoma

Caitlin A. Hall, MD, FAAP, Clinical Director/Pediatrician, Dzilth-na-o-dith-hle Health Center, Indian Health Service

Farnoosh Faezi-Marian, Program Examiner, Office of Management and Budget

TULSA, Okla. – U.S. Attorney Trent Shores and The Office of Justice Programs’ Office for Victims of Crimes announced this week that two northeastern Oklahoma tribes were awarded more than $1.28 million to support crime victims.

The two tribes in the Northern District of Oklahoma that received funding are the Eastern Shawnee Tribe of Oklahoma and Wyandotte Nation.

The Eastern Shawnee Tribe of Oklahoma received $704, 949 to hire a crime victim advocate and to develop a cultural outreach program for those affected by violence. The funding will also help improve transportation for crime victims and provide emergency shelter services and counseling services. 

The Wyandotte Nation of Oklahoma was awarded $579,596 to expand services to victims of domestic violence, elder abuse, sexual assault, dating violence and human trafficking by hiring a victim advocate. The award will also fund transportation to reach survivors in remote areas and provide legal and mental health services to those impacted by crime.

Nationwide, the Office for Victims of Crime (OVC) awarded more than $5.7 million to support crime victims in Native American communities in seven states: Alaska, California, Colorado, Minnesota, Oklahoma, Washington and Wisconsin. The group of 10 awards is the second in a series of grants being made by OVC to American Indian and Alaska Native communities. OVC has now awarded more than $9 million of up to $100 million to support tribal victim service programs.

The awards—17 in total so far—will fund critical crime victim services, such as counseling, transitional housing, emergency services and transportation. The grants are supported by the Crime Victims Fund, a repository of federal criminal fines, fees and special assessments. The fund includes zero tax dollars.

 “American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”

“From domestic violence to sexual assaults, the sad fact is that Native Americans are overrepresented as victims of violent crime, particularly women and children. The Justice Department is committed to changing this alarming statistic. We must give voice to victims of violent crime in Indian Country, especially those who are murdered or missing,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma and Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues. “The more than $5.7 million in grant funding reflects the Justice Department’s strong commitment to partnering with Native American communities to identify key services needed to support victims of violent crime. In my district, the Eastern Shawnee Tribe of Oklahoma and Wyandotte Nation have been selected to receive more than $1.28 million in grants. It is important to facilitate the creation of victim advocate positions in tribal communities. Victim advocates are key to providing resources and support to victims who have suffered unspeakable crimes.”

According to the Bureau of Justice Statistics, American Indians and Alaska Natives experience violent crime at rates far greater than the general population.       

The following eight tribes also received grant awards this week. Nearly 170 tribes are eligible to receive this funding this spring to help their communities support crime victims over the next three years:

•  The Chickasaw Nation (Oklahoma) was awarded $628,737 to improve victim services by hiring additional staff and enhancing training, while also providing much-needed transportation for crime victims.     

•  Red Cliff Band of Lake Superior Chippewa (Wisconsin) received $671,543 to enhance current victim services by providing transitional housing, transportation and security to victims, particularly those affected by the drug epidemic. The funds will also enable the tribe to hire victim advocacy staff for child abuse victims and expand office space to house Indian Child Welfare staff plus a victim interview room.

•  The Leech Lake Band of Ojibwe (Minnesota) was awarded $719,962 to hire victim services staff who specialize in serving children, youth and families affected by crime. The funding will also provide transportation and emergency services for crime victims, and expand community outreach and awareness.

•  Nenana Native Association (Alaska) received $251,912 to increase the capacity of its existing victim services program by hiring a victim services coordinator and to improve training for the staff. Funds will also support travel for victims to access necessary services locally and in Fairbanks.

•  The Kalispel Indian Community of the Kalispel Reservation (Washington) was awarded $679,259 to expand the tribe’s victim assistance program to serve human trafficking victims, and develop a strategic plan to improve services to victims. The funding will also support the hiring of a victim advocate, as well as travel and training costs for staff.

•  Skokomish Indian Tribe (Washington) was awarded $446,234 to expand its elder abuse program by hiring a victim advocate to focus on adult protective services. The funds will also support staff training, provide essential transportation and help purchase project-related supplies.

•  Southern Indian Health Council, Inc. (California) was awarded $720,000 to improve services for child abuse victims by providing intervention, support and education. The funding will enable the tribe to hire a social worker and other staff, improve transportation for victims and cover the costs of training and program supplies.

•  Southern Ute Indian Tribe (Colorado) received $391,425 to enhance staff training and improve forensic interviews with child abuse victims, while also offering trauma-informed clinical therapeutic services for crime victims. In addition, the funding will provide essential supplies and new equipment for forensic medical services.

“American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”                    

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov

Two more doctors in northeastern Oklahoma have entered into settlement agreements with the U.S. Attorney’s Office for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores. These civil settlements resulted from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding in return for payments.

“These greedy medical professionals are a major disappointment. Patients expect doctors to uphold strict ethical standards and place patient care above their own financial motives,” said U.S. Attorney Shores. “My office will use every tool at our disposal to remind corrupt physicians that the health of their patients is not for sale and that government health care programs are not free to plunder.”

In one recent settlement, Dr. Mary Johnson, 44, a podiatrist practicing in Claremore, agreed to pay the government more than $76,000 for allegedly accepting illegal kickback payments from OK Compounding in 2013.

In a separate settlement, Dr. Jeff Halsell, 50, a doctor of osteopathic medicine practicing in Tulsa, agreed to pay the government more than $52,000 for allegedly accepting illegal kickback payments from the pharmacy from January to July of 2013.

The settlement agreements resolve allegations that Johnson and Halsell had illegal financial relationships with OK Compounding, concerning pain creams.

Compounding prescriptions is a practice in which a pharmacist or physician combines, mixes or alters ingredients of a drug or multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration (FDA) approved drugs are unsuitable for the patient. They are also more expensive and reimbursed at a far higher rate by federal and private insurance companies.

Compounded drugs are not to be mixed or marketed in bulk. OK Compounding provided physicians with pre-printed prescription pads that listed compounding formula choices. Participating physicians would allegedly check a box with their preferred selection and then fax it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.

Johnson and Halsell, prescribed these pain creams for their patients, and in so doing, facilitated the sale and distribution of pain creams by OK Compounding.  As compensation for their services, the pharmacy paid Johnson and Halsell what was characterized by the parties as medical director fees based upon an hourly rate.  However, the payments the doctors received from OK Compounding were, in actuality, “kickbacks” and in violation of the False Claims Act, 31 U.S.C. §3729 et seq, due to the fact that some patients were insured by the Medicare and TRICARE federal health care programs. 

Medicare is a federal government health insurance generally reserved for people who qualify due to age or disability.  TRICARE is the health care program of the United States Department of Defense Military Health System for military service members and retirees.  It is illegal to pay or receive “kickbacks” in conjunction with federal healthcare insurance.

Prohibitions against kickbacks are crucial to ensure that financial motives do not undermine the integrity of the medical judgment of physicians and other health care providers.  The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs against health care providers.

This matter was handled by Assistant U.S. Attorney Marianne Hardcastle with the Affirmative Civil Enforcement unit and is the product of the collaborative investigative efforts of the Defense Criminal Investigative Service, Department of Labor–Office of Inspector General (OIG), IRS–Criminal Investigation, U.S. Postal Service–OIG, FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG. 

The claims resolved by the settlement are allegations only; there has been no determination of liability.