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30 June 2022
Apple’s Former Director of Corporate Law Admits Insider TradingRead the Press Release
NEWARK, N.J. – The former corporate secretary and director of corporate law at Apple today admitted engaging in an insider trading scheme that spanned five years, Attorney for the United States Vikas Khanna announced.
Gene Levoff, 48, of San Carlos, California, pleaded guilty by videoconference before U.S. District Judge William J. Martini to six counts of an indictment charging him with securities fraud. Levoff was initially charged by complaint in February 2019.
“Gene Levoff betrayed the trust of one of the world’s largest tech companies for his own financial gain,” Attorney for the United States Khanna said. “Despite being responsible for enforcing Apple’s own ban on insider trading, Levoff used his position of trust to commit insider trading in order to line his own pockets. This Office will continue to prioritize securities fraud prosecutions.”
“This defendant exploited his position within a company strictly for financial gain that he would not have otherwise realized,” Terence Reilly, FBI Acting Special Agent in Charge in Newark, said. “That’s called ‘gaming the system.’ Insider trading is not just illegal, it is a threat to the viability of our markets. The average American, whose retirement savings is invested in these companies, has every right to expect that rules are being followed, the game is being played fairly, and their nest egg is safe from profiteers who willingly sidestep the rules to improve their own financial future at the expense of others. The FBI is here to make sure the playing field is level.”
According to documents filed in this case and statements made in court:
From February 2011 to April 2016, Levoff – the top corporate attorney at Apple who also served as the company’s assistant secretary and corporate secretary – misappropriated material, nonpublic information about Apple’s financial results and then executed trades involving the company’s stock. This scheme to defraud Apple and its shareholders allowed Levoff to realize profits of approximately $227,000 on certain trades and to avoid losses of approximately $377,000 on others.
Specifically, Levoff was co-chairman of Apple’s Disclosure Committee, which reviewed and discussed the company’s draft quarterly and yearly earnings materials and periodic U.S. Securities and Exchange Commission (SEC) filings before they were publicly disclosed. Levoff mined these materials for inside information about Apple to guide his decisions to buy and sell Apple stock ahead of its earnings announcements. When Apple posted strong revenue and net profit for a given financial quarter, he purchased large quantities of stock, which he later sold for a profit once the market reacted to the news. When there were lower-than-anticipated revenue and net profit, Levoff sold large quantities of Apple stock, avoiding significant losses.
Levoff was subject to Apple’s regular quarterly “blackout periods,” which prohibited individuals who had access to material nonpublic information from engaging in trades until a certain period after the company disclosed its financial results to the public. Levoff ignored this restriction, as well as the company’s broader Insider Trading Policy – which he was responsible for enforcing – and instead repeatedly executed trades based on material, nonpublic information without Apple’s knowledge or authorization. On several occasions, Levoff executed trades within a blackout period after notifying other individuals subject to the restriction that they were prohibited from buying or selling Apple stock until the blackout period terminated.
The securities fraud counts each carry a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Nov. 10, 2022.
The SEC previously filed a civil complaint against Levoff based on the same conduct.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Reilly, with the investigation leading to today’s guilty plea. He also thanked the SEC, for the assistance provided by its Enforcement Division, and Apple, which cooperated with law enforcement over the course of the investigation.
The government is represented by Daniel V. Shapiro, Deputy Chief of the Criminal Division.
Anchorage Man Sentenced to 10 Years for Trafficking MethRead the Press Release
ANCHORAGE – An Anchorage man was sentenced in federal court to a mandatory 10 years in prison by U.S. Chief District Judge Sharon L. Gleason for distributing methamphetamine in the Anchorage area.
According to court documents and evidence presented at trial, Ruffy Alvarez, 39, trafficked large amounts of methamphetamine and cocaine from California into Alaska during 2016. He supplied these narcotics by the kilo to buyers throughout the Anchorage area. In November 2016, the FBI conducted an undercover operation resulting in the purchase of more than 135 grams of pure methamphetamine from Alvarez. An Alaska jury convicted Alvarez of the methamphetamine distribution following a three-day trial in June 2021.
Alvarez was previously convicted in 2001 by a federal jury for his role trafficking kilos of cocaine from California into Alaska.
“Illegal drugs such as methamphetamine are an ongoing threat to communities throughout Alaska. We will continue to press forward with our efforts to dismantle and eradicate both the supply and distribution of all illegal drugs across our state,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “This sentence sends a clear message that we will prosecute and hold accountable those who are harming our communities.”
“Mr. Alvarez trafficked significant amounts of dangerous narcotics from California to Anchorage for distribution, posing a danger to Alaskans,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “Through our robust law enforcement partnerships in Alaska, the FBI remains committed to disrupting the flow of deadly drugs into our communities, and to hold drug traffickers accountable.”
The FBI, Drug Enforcement Administration (DEA), Anchorage Police Department and Alaska State Troopers investigated this case as part of the FBI’s Safe Streets Task Force.
Assistant U.S. Attorney George Tran and Emily Allen prosecuted the case.
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Albuquerque man pleads guilty in armed robberies of letter carriersRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Cisco Casaus-Alires pleaded guilty on June 29 to robbery of mail, money and other property of the United States and brandishing a firearm during and in furtherance of a crime of violence. Casaus-Alires, 21, of Albuquerque, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on Nov. 7, 2020, Casaus-Alires robbed a United States Postal Service (USPS) letter carrier at gunpoint in southeast Albuquerque, demanding the letter carrier’s cell phone, USPS keys and mail. On Dec. 26, 2020, in southwest Albuquerque, Casaus-Alires robbed another letter carrier at gunpoint. Casaus-Alires demanded the letter carrier’s wallet, phone and USPS keys, and then demanded that the letter carrier load parcels into Casaus-Alires’ vehicle.
On Dec. 28, 2020, in south Albuquerque, Casaus-Alires robbed a third letter carrier at gunpoint, demanding the letter carrier’s wallet, phone and USPS keys. As Casaus-Alires took mail and parcels from the USPS vehicle, he asked the letter carrier where “the good stuff” is delivered, then fled the area.
By the terms of the plea agreement, Casaus-Alires faces 16 to 20 years in prison.
The United States Postal Inspection Service investigated this case with assistance from the United States Marshals Service. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
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Airplane passenger removed from cross-country flight diverted to Billings admits interfering with flight crewRead the Press Release
BILLINGS — A Washington airline passenger today admitted allegations that he interfered with a flight crew by jumping on a beverage cart and pushing a flight attendant into a seat, screaming and trying to take off his clothes on a flight that was diverted to Billings for his removal, U.S. Attorney Jesse Laslovich said.
Adam Alexander Williams, 33, of Auburn, Washington, pleaded guilty to an indictment charging him with interference with flight members and attendants. William faces a maximum of 20 years in prison, a $25,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Dana L. Christensen. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Williams was released pending further proceedings.
The government alleged in court documents that on Jan. 9, Williams boarded an American Airlines flight departing Seattle, Washington, for a flight to Charlotte, North Carolina. Once in the air, Williams’ behavior turned erratic and escalated. Williams yelled out to no one in particular, “Where is Jamie Sanders?” At one point, Williams jumped over passengers in his row and on to a beverage cart that was in service. As he came off of the cart, he almost landed on a flight attendant and pushed her into a seat, knocking drinks and cups to the ground. He then began to run down the aisle of the aircraft. Williams’ behavior startled the flight attendant, who later appeared distressed and traumatized.
Another flight attendant was able to calm Williams down and escort him to his seat. About 10 minutes later, Williams began to act up again and screamed an obscenity. Flight attendants placed several Marines, who happened to be on the flight, in seats around Williams. Then, after roughly another 10 minutes, Williams stood up and began screaming while taking off his clothes. At that point, to ensure the safety of passengers, the aircraft’s captain turned the plane around and landed in Billings so that Williams could be removed.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case, which was investigated by the FBI and Billings Airport Police.
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Accounts Payable Clerk Sentenced for FraudRead the Press Release
PROVIDENCE – An accounts payable clerk who misappropriated more than $300,000 belonging to a Providence small business for his own personal use was sentenced on Wednesday to eighteen months of incarceration, announced United States Attorney Zachary A. Cunha.
Grant Devillez, 38, of Dayville, Conn., pleaded guilty in January to each of the ten counts of wire fraud with which he had previously been charged by federal indictment. No plea agreement was filed in this matter.
At the time of his guilty plea, Mr. Devillez admitted that, from at least February 2016 through July 2018, he engaged in a scheme to defraud Décor Craft, Inc., of nearly $303,000, by transferring funds from the business’ bank account to his own personal bank accounts; to creditors for personal bills; and to the bank account of another individual.
Mr. Devillez also admitted that when given access to the business’ bank account to make authorized payments to vendors, he often made partial payments or no payments at all, instead transferring the funds for his own use. To cover his criminal conduct, he altered company records to reflect that full payment had been made to the vendors.
U.S. District Court Judge William E. Smith sentenced Devillez to eighteen months of incarceration to be followed by three years of federal supervised release – the first six months to be served in a half-way house; and to pay restitution totaling $302,995.
The case was prosecuted by Assistant United States Attorney Denise M. Barton.
The matter was investigated by the FBI.
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11 in Northeast Ohio Charged with Bank Fraud and Stealing from U.S. MailRead the Press Release
11 individuals in the Northeast Ohio area were charged today in a five-count indictment for participating in a conspiracy that stole mail from the United States Postal Service (USPS), obtained checks within that stolen mail, and altered, forged and duplicated those checks for financial gain.
Named in the indictment are Elijah S. Payne, 21, of Streetsboro; William D. Saunders, 21, of Cleveland Heights; Cameron J. Proctor, 20, of Willowick; Tavion L. Bolden, 22, of Cleveland; Rashawn J. Creer, 22, of Cleveland Heights; Maurice A. Mowler, 22, of Kent; Latrent M. Redrick, 25, of Cleveland, Janiya M. N. Smith, 22, of Richmond Heights; Lady M. Walker, 28, of Cleveland; Antoine R. Whitsett, 22, of Euclid and Tyrone Williams, 21, of Euclid.
Defendants Williams, Creer, Whitsett, Proctor, Mowler and Saunders were arrested by law enforcement authorities today and Defendant Bolden was previously arrested. Arrest warrants have been issued for the remaining defendants.
The defendants are each charged with one count of conspiracy to commit bank fraud. Defendant Payne is charged with additional counts of bank fraud and possession of stolen mail. Defendant Proctor is also charged with an additional count of theft of mail by a postal employee.
According to the indictment, the defendants are accused of participating in a conspiracy that stole checks from the U.S. mail and fraudulently altered and duplicated those checks to then be deposited with various banks. In order to execute their scheme, members of the conspiracy are accused of unlawfully accessing U.S. mail collection boxes using stolen or otherwise unlawfully obtained collection box keys, sometimes directly from postal employees.
In one instance, it is alleged that Defendant Proctor, a postal employee at the time, stole mail in his custody and sold it, along with mail collection box keys, to other members of the conspiracy.
After obtaining and altering checks from the stolen mail, it is alleged that the conspirators used Instagram to recruit other co-conspirators to use their bank accounts to cash the stolen, altered and forged checks.
As a result of the scheme, the defendants caused an approximate loss of over $1.5 million.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the United States Postal Inspection Service (USPIS) with assistance from the Cleveland Police Department, Rocky River Police Department, Middleburg Heights Police Department, Seven Hills Police Department and the United States Postal Service Office of the Inspector General (USPIS OIG). This case is being prosecuted by Assistant U.S. Attorney Jason W. White.
10 Boston Gang Members and Associates Convicted of Racketeering, Drug and Firearm OffensesRead the Press Release
BOSTON – Ten members and associates of NOB, a Boston-based street gang, have pleaded guilty over the last several weeks in federal court to various crimes, including racketeering (RICO) conspiracy, drug trafficking and illegal firearms charges. The final two defendants pleaded guilty last week. U.S. District Court Judge Leo T. Sorokin scheduled sentencings for various dates in September and November 2022.
The 10 defendants were indicted in June 2020 as part of a federal sweep targeting numerous NOB street gang members and associates. According to court records, NOB – an abbreviation for the Norton/Olney/Barry streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. While the gang is based in the Boston, its criminal activity has spanned across other communities, including Randolph, New Bedford, Stoughton, Brockton, East Bridgewater, Taunton and Cape Cod, as well as Rhode Island, Maine and Connecticut.
NOB members and associates use violence against rival gangs and witnesses to maintain and enhance their status and overall reputation, as well as to protect the gang’s power, reputation and territory. Members and associates assist each other with obtaining firearms and maintaining drug trafficking connections. NOB members and associates use various means to identify themselves as such, including gang-related hand signs, clothing and tattoos. Additionally, they create and publish gang-related videos used to promote NOB and further its activities.
Over the past several years, NOB members and associates committed multiple acts of violence, many of which targeted rival gang members, and engaged in drug trafficking activity involving fentanyl (in powdered form and counterfeit oxycodone pills), cocaine, cocaine base (crack cocaine), marijuana and various types of prescription pills, including opioids, throughout Massachusetts. In addition, NOB members and associates illegally possessed firearms and ammunition, several of which were seized during the investigation.
In addition to multiple historical firearm and drug recoveries by local law enforcement partners pursuant to search warrants executed during the course of this investigation, law enforcement seized numerous contraband items including 11 firearms, over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills), a commercial pill press, over 15 pounds of marijuana and approximately $36,000 in cash.
The charge of RICO conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute and to possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of $1 million. The charge of being a felon in possession of a firearm and/or ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
First Assistant United States Attorney Joshua S. Levy; Boston Police Acting Commissioner Gregory P. Long; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Joseph C. Cordeiro; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit are prosecuting the case.
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APPENDIX
- Michael Brandao, a/k/a “G Fredo,” and “Frizzblock Fredo,” 21, pleaded guilty to RICO conspiracy and conspiracy to distribute and to possess with intent to distribute controlled substances.
- Kelvin Barros, a/k/a “Kal” or “7981 Kal,” 26, pleaded guilty to RICO conspiracy; conspiracy to distribute and to possess with intent to distribute controlled substances; and possession with intent to distribute cocaine.
- Ricky Pina, a/k/a “Blake,” 25, pleaded guilty to RICO conspiracy.
- David Rodriguez, a/k/a “D,” 36, pleaded guilty to RICO conspiracy.
- Wilson Goncalves-Mendes, a/k/a “Dub,” 26, pleaded guilty to RICO conspiracy and possession with intent to distribute fentanyl.
- Joshua Teixeira, a/k/a “Trouble,” 27, pleaded guilty to RICO conspiracy and conspiracy to distribute and to possess with intent to distribute controlled substances.
- Joseph Gomes, a/k/a “Joey” or “J-Money,” 26, pleaded guilty to RICO conspiracy and felon in possession of a firearm and ammunition.
- Samael Mathieu, a/k/a “Hamma” or “Hamma Thang,” 25, pleaded guilty to RICO conspiracy and conspiracy to distribute and to possess with intent to distribute controlled substances.
- Darius Bass, a/k/a “Tre” or “Trigga Tre,” 28, pleaded guilty to RICO conspiracy.
- Damian Cortez, 33, pleaded guilty to conspiracy to distribute and to possess with intent to distribute controlled substances and possession with intent to distribute fentanyl.
29 June 2022
Warwick Man Convicted on Firearm ChargeRead the Press Release
PROVIDENCE – A Warwick man previously convicted and sentenced to federal prison for bank robbery admitted to a federal judge on Wednesday that he illegally possessed a firearm; that gun was discharged by a juvenile in the man’s home, resulting in a self-inflicted gunshot wound, announced United States Attorney Zachary A. Cunha.
Branden Eddie Smith, 37, pleaded guilty to possession of a firearm by a prohibited person.
According to information presented to the court, on March 21, 2022, Warwick police and emergency services were called to a Warwick residence several hours after a juvenile discharged a firearm, causing a self-inflicted wound to his knee. The juvenile ultimately told police that, earlier in the evening, he was handling what he believed to be an unloaded firearm; the gun was in fact loaded, however, and when the juvenile pulled the trigger, the firearm discharged sending a bullet through his knee.
Warwick police executed a court-authorized search of the residence and located the firearm, a Glock 42 semi-automatic pistol, as well as eight rounds of .380 caliber ammunition. The gun and ammunition were found inside a safe in the defendant’s bedroom.
Smith is scheduled to be sentenced on September 29, 2022. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, Smith was previously convicted of bank robbery in U.S. District Court in the District of Nevada in 2017 and sentenced to fifty-six months in prison to be followed by three years of federal supervised release.
The case is being prosecuted by Assistant U.S. Attorney Christine D. Lowell.
The matter was investigated by the Warwick Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
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WVU students focus on dangers of FentanylRead the Press Release
MORGANTOWN, WEST VIRGINIA – A group of West Virginia University students has created a plan to educate their peers about fentanyl and protect them from the dangers of the deadly synthetic drug.
Today in Morgantown, a team of undergraduates led by WVU junior Azeem Khan announced the creation of the Mountaineer Fentanyl Education Task Force. The group includes 10 students who have been meeting since March and consulting with experts in drug prevention, psychiatry, communications, and criminal justice. The students have created a comprehensive strategy that will be implemented in August when the fall semester begins.
“This task force is about students at WVU saying we want to do our part to help. We are ready to step up and help educate our classmates about the dangers of fentanyl in the hopes of saving lives. This is too important for us to sit on the sidelines,” said Khan, a political science major from Charleston and member of the WVU Student Government Association.
“These young leaders have seen the harm caused by fentanyl and they’ve decided to do something about it,” said United States Attorney William Ihlenfeld. “They are bright, they are passionate, and they care deeply about their classmates.”
The mission of the Task Force is to educate all students on the threat posed by fentanyl, connect them with available resources, and deliver strategic messaging to prevent usage of the drug. The focus is on fentanyl because the drug has caused a sharp increase in overdose deaths among adolescents in West Virginia and across the country. The latest tactic being used by drug traffickers is to sell counterfeit pills that appear to be Adderall or Xanax but that actually contain fentanyl.
The Mountaineer Fentanyl Education Task Force is supported by the United States Department of Justice, the Washington-Baltimore High Intensity Drug Trafficking Area initiative, and Game Changer.
“I applaud the efforts of these students for taking such an active role in the important areas of prevention education coupled with the deadly dangers of fentanyl,” says Joe Boczek, Executive Director of GameChanger. “As a West Virginian, I couldn’t be prouder.”
You can follow the Task Force on Facebook, Twitter, and Instagram at @WVFentanylEdu.
United States Attorneys’ Joint Statement Regarding United States Supreme Court Decision in Oklahoma v. Castro-HuertaRead the Press Release
This morning the United States Supreme Court issued its decision in Oklahoma v. Castro-Huerta. This decision holds that the State of Oklahoma has concurrent jurisdiction with the federal government to prosecute non-Indians who commit crimes against Indian victims within Indian Country.
“Today’s decision does not diminish the United States’ trust responsibility to our tribal partners,” said United States Attorneys Christopher J. Wilson, Clinton J. Johnson, and Robert J. Troester. “The United States Attorney’s Offices in the Eastern, Northern, and Western Districts of Oklahoma will continue to enforce federal law in Indian Country. We will also continue to coordinate and cooperate with our state, local, and tribal law enforcement partners as well as state and tribal prosecutors to promote public safety and provide justice to all Oklahomans in Indian Country.”
United States Attorneys’ Joint Statement Regarding United States Supreme Court Decision in Oklahoma v. Castro-HuertaRead the Press Release
This morning, the United States Supreme Court issued its decision in Oklahoma v. Castro-Huerta. This decision holds that the State of Oklahoma has concurrent jurisdiction with the federal government to prosecute non-Indians who commit crimes against Indian victims within Indian Country.
"Today’s decision does not diminish the United States’ trust responsibility to our tribal partners," said United States Attorneys Christopher J. Wilson, Clinton J. Johnson, and Robert J. Troester. "The United States Attorney’s Offices in the Eastern, Northern, and Western Districts of Oklahoma will continue to enforce federal law in Indian Country. We will also continue to coordinate and cooperate with our state, local, and tribal law enforcement partners as well as state and tribal prosecutors to promote public safety and provide justice to all Oklahomans in Indian Country."
United States Attorneys’ Joint Statement Regarding United States Supreme Court Decision in Oklahoma V. Castro-HuertaRead the Press Release
This morning the United States Supreme Court issued its decision in Oklahoma v. Castro-Huerta. This decision holds that the State of Oklahoma has concurrent jurisdiction with the federal government to prosecute non-Indians who commit crimes against Indian victims within Indian Country.
“Today’s decision does not diminish the United States’ trust responsibility to our tribal partners,” said United States Attorneys Christopher J. Wilson, Clinton J. Johnson, and Robert J. Troester. “The United States Attorney’s Offices in the Eastern, Northern, and Western Districts of Oklahoma will continue to enforce federal law in Indian Country. We will also continue to coordinate and cooperate with our state, local, and tribal law enforcement partners as well as state and tribal prosecutors to promote public safety and provide justice to all Oklahomans in Indian Country.”
United States Attorney Bob Murray Announces RetirementRead the Press Release
United States Attorney Bob Murray announced his retirement after 27 years of service with the Department of Justice. He was appointed by Attorney General Merrick B. Garland on November 28, 2021, and by Chief District Judge Scott W. Skavdahl on March 28, 2022. Pursuant to the Federal Vacancies Reform Act, he became Acting United States Attorney in February 2021. Before he was named Acting United States Attorney, he was the First Assistant United States Attorney and previously served as Chief of the Criminal Division. He has been an Assistant United States Attorney since July 1995.
Prior to joining the United States Attorney’s Office, he served as an attorney for the Eastern Shoshone Tribe – of which he is an enrolled member – and as a litigation associate with the law firm of Holland and Hart in its Denver and Cheyenne offices. He earned his law degree from the University of Denver Sturm College of Law in 1990 and his undergraduate degree from the University of Wyoming in 1986.
Murray said, “It has been an absolute honor to serve the people of this great nation. For nearly 30 years, I had the privilege of serving alongside of incredibly dedicated law enforcement agents and officers from state, local, tribal, and federal law enforcement agencies who work every day to keep our communities safe. And, of course, I have always admired the professionalism, talent, and dedication to public service of the attorneys and support staff at the United States Attorney’s Office.”
On July 1, 2022, First Assistant United States Attorney Nicholas Vassallo will become the Acting United States Attorney for the District of Wyoming under the Vacancies Reform Act. As Acting United States Attorney, Mr. Vassallo will be the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States within the District of Wyoming. His term will last until January 27, 2023. If President Biden has not appointed a United States Attorney to the District of Wyoming by that time, the Chief District Judge will appoint a successor to serve until Wyoming gets a Presidential appointee. Mr. Vassallo has also been with the District of Wyoming for 27 years, first serving as an Assistant United States Attorney then as Chief of the Civil Division.
Mr. Vassallo said, “Bob has been an incredible asset not only to this office, but to the Department of Justice and the many communities we serve in Wyoming. Bob is an outstanding attorney who would have enjoyed great success in any endeavor he pursued, but he chose to devote his professional life to public service seeking justice and protecting the rights of the United States and its citizens. Bob’s absence will surely be felt, and I wish him all the best in retirement.”
U.S. Attorney Dena J. King Urges Consumers to Beware of Common Summer ScamsRead the Press Release
CHARLOTTE, N.C. – With summer upon us, U.S. Attorney Dena J. King urges consumers to be mindful of vacation, employment, and other summertime schemes, and take measures to avoid falling victims to common summer scams.
“Summer is the time of the year that many of us vacation, travel, and spend time with family and friends. But it’s also a popular time for scammers to maximize their profits by preying on consumers trying to save money on a good summer deal. Stay vigilant and beware of summer scams. Think before you buy and don’t let a scammer turn your summer into a nightmare,” said U.S. Attorney King.
The most common scams to look out for during the summer include:
Free or Discounted Vacation Packages – Whether it’s an email congratulating you for winning a free trip that requires you “only” to pay for fees and taxes, or a link to a website offering limited-time travel discounts, these types of summer scams are prominent. Common vacation scams include discounted deals on cruises, all-inclusive resorts, and flights, hotels and car rentals to popular destinations. Don’t be fooled by vacation scams and avoid the urge to take advantage of these too-good-to-be-true offers. Instead, book your travel through reputable, well-known travel engines or travel agencies. If you receive a special travel offer through email, do not make reservations using the provided link, even if it appears to be from a well-known travel booking website. Instead, go directly to the booking engine’s web page to locate the deal and make travel arrangements.
Low-Priced Vacation Rentals – Similar to bogus vacation packages, beware of scammers posting fake short-term rental properties available for a bargain price at popular vacation spots. Sometimes the advertised properties do not exist. Other times, scammers use photos of actual rental properties to create fraudulent listings. Be extra careful before booking a short-term rental property online especially one advertised at a discounted price. To avoid falling victim to this type of scam, either contact a local real estate company that specializes in vacation rentals or search the desired property on multiple short-term rental websites prior to booking to ensure the listing is not a scam. Also, ask the renter for additional photos, and reserve the property using a payment option that makes it easier to recoup a fraudulent charge.
Discounted Excursions or Entertainment Events – Be vigilant against scams that tout limited time offers on vacation excursions or cheap tickets to entertainment events, such as concerts. When booking an excursion, research the company offering the deal. Look for customer reviews that date a few months or years back to ensure this is a well-established business and check with the Better Business Bureau for any complaints on file. In addition, call the company directly before making an online credit card purchase. When buying tickets to events, it’s best to use reputable ticket sellers to ensure the tickets you are purchasing are legitimate.
Free Wi-Fi – During the summer, many people are on the go. With more and more businesses, restaurants, and venues offering free wi-fi access, it is easy to become a victim of wi-fi fraud. With this type of scam, fraudsters use what appears to be legitimate “free” wi-fi to dupe users into connecting to networks that can steal their information. Free wi-fi networks are generally unsecured. To the extent possible, avoid using them altogether, but definitely avoid using them to transmit sensitive information or conduct financial transactions.
Online summer Jobs – Online summer jobs offer an opportunity for extra income. If you are applying for a summer job online, take extra precautions with furnishing personally identifying information (PII) such as a Social Security number, date of birth, home address, etc. Be extra cautious with online employers who require applicants to send their PII for the purpose of conducting a background check before being offered the job. Instead, research the company and call the company directly to ensure it is a legitimate business in need of summer help.
The Moving Scam – Lots of people take advantage of the summer months to move. Unfortunately, scammers also are looking to exploit consumers in need of moving services. Moving schemes offering discounted deals can end up being very costly. When moving, take the time to research moving companies and ask for referrals. Be mindful of moving companies that offer low prices, have recent or no online reviews, or ask for advance payment to “lock in” the discounted rate. Check with the local Better Business Bureau to make sure you are dealing with a reputable moving company.
The tips below can help keep you safe from fraud this summer:
- Avoid paying with wire transfers, cash, gift cards, or sending money to individuals with whom you have only communicated online.
- Avoid “free” deals that require you to pay a fee. If a deal is truly free, you should never have to pay for any portion of it.
- Do not give out your credit card, bank account or other personal information.
- Before going on vacation, whether stateside or overseas, contact your banking institution and credit companies so they can alert you of unusual spending patterns or high dollar credit card charges.
- After your vacation, check your credit card or banking statements for extra or fraudulent charges.
To report fraud, file an online complaint with the Federal Trade Commission.
U.S. Attorney Breon Peace's Remarks on R. Kelly SentencingRead the Press Release
"Moments ago, R. Kelly was sentenced to 30 years in prison. This is a momentous outcome for all victims of R. Kelly, and especially for the survivors who so bravely testified about the horrific and sadistic abuse they endured. R. Kelly is a predator and as a result of our prosecution, he will serve a significant jail sentence for his crimes.
With the aid of his fame, money, and most importantly his inner circle, R. Kelly preyed upon children and young women for his own sexual gratification, for decades. He used coercive control – exemplified by a pattern of isolation, rules, dependence, threats, intimidation tactics, physical abuse, and, at least once, the presence of a firearm – to force victims, including minors, to engage in sexual activity with him and others and to become unwilling participants in the pornographic films he wrote, produced, and directed.
He continued committing his crimes for almost 30 years and avoided punishment. Until today.
Today, the sentence shows the witnesses reclaimed control over their lives, and over their future. These are the voices of mostly young black women and children that were heard and believed and for whom justice was achieved. This is a victory for them, for justice, and for future survivors of sexual assault. Victims of sexual violence must be heard, perpetrators must be held accountable and our women and children must be protected.
I hope this sentencing serves as its own testimony that it does not matter how powerful, rich or famous your abuser may be, or how small they make you feel – justice only hears the truth.
This case would not be possible without outstanding work dedication and skill of the prosecution team Assistant United States Attorneys Elizabeth Geddes, Nadia Shihata, and Maria Cruz Melendez, senior investigator Keith Kolovich, and former paralegal specialists Kyra Wenthen and Alyssa Fagel. Their dedication to the truth was truly extraordinary. I want to commend and thank the special agents who handled this case, Ryan Chabot, and Sylvette Reynoso of the Department of Homeland Security, Homeland Security Investigations under the supervision of supervisory special agents Elvin Hernandez and Patrick Gill, for their outstanding work on the case. Along with detectives from the New York City Police Department, they painstakingly went through records, documents, and interviews to collect and verify the facts that became the foundation of our strong case. And finally, an extraordinary thank you to the brave survivors, those who came forward, and all who endured. It is thanks to you that we are able to deliver justice today."
U.S. Attorney Announces $7.85 Million Settlement with Citadel Skilled Nursing Facility in Bronx for Fraudulently Switching Residents’ Healthcare Coverage to Boost Medicare PaymentsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent-in-Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), announced today that the United States has filed and settled a civil healthcare fraud lawsuit against TCPRNC, LLC d/b/a PLAZA REHAB AND NURSING CENTER (“PLAZA REHAB CENTER”) and CITADEL CONSULTING GROUP LLC d/b/a CITADEL CARE CENTERS LLC (“CITADEL”). The lawsuit alleges that PLAZA REHAB CENTER, acting at the direction of CITADEL, fraudulently switched the type of Medicare coverage in which elderly residents were enrolled in order to maximize the Medicare payments that PLAZA REHAB CENTER would receive. As alleged in the Government’s complaint, the residents and their families often did not request, consent to, or know about the change to their healthcare coverage, which had the potential to impact their out-of-pocket payments, the scope of the services and care covered, and their drug coverage plan.
U.S. Attorney Damian Williams said: “Skilled nursing facility residents have the right to choose their own healthcare insurance coverage. Plaza Rehab Center frequently changed the insurance of its residents without their consent or knowledge, and without explaining how the change could impact their out-of-pocket costs and the scope of their healthcare coverage. When facilities unlawfully take advantage of elderly residents in order to maximize their revenue from federal healthcare programs, this Office will hold them accountable.”
HHS-OIG Special Agent-in-Charge Scott J. Lampert said: “HHS-OIG is committed to safeguarding Medicare and its beneficiaries from fraud. Those who exploit federal health care programs for financial gain and violate the trust of beneficiaries must be held accountable for their actions.”
Under the settlement, which was approved on June 27, 2022, by U.S. District Judge George B. Daniels, PLAZA REHAB CENTER and CITADEL agreed to pay a total of $7.85 million and made extensive factual admissions regarding their conduct. Specifically, PLAZA REHAB CENTER and CITADEL admitted that their staff often did not obtain the consent of the resident or their authorized representatives prior to disenrolling the resident from their Medicare Advantage Plan. In addition, as part of the settlement, CITADEL agreed to take steps to ensure that all skilled nursing facilities that are Citadel Care Centers comply with applicable guidance on Medicare health plan disenrollments and enrollments. PLAZA REHAB CENTER and CITADEL also entered into a Corporate Integrity Agreement with HHS-OIG, which requires that they maintain a compliance program designed to foster adherence to federal health care program requirements and thereby protect the programs.
Medicare beneficiaries may enroll in the original parts of Medicare, known as Original Medicare, or in Medicare Advantage Plans, which are administered by private companies that contract with the government. Original Medicare and Medicare Advantage Plans differ in how healthcare providers, including skilled nursing facilities, seek and receive reimbursement. Under Original Medicare, the Centers for Medicare & Medicaid Services (“CMS”) directly reimburses providers, like skilled nursing facilities, on a fee-for-service basis. In contrast, when furnishing medical services to a Medicare beneficiary enrolled in a Medicare Advantage Plan, the provider submits claims to the Medicare Advantage Organization (“MAO”) that operates the Medicare Advantage Plan, which in turn pays the provider an agreed-upon amount. CMS pays MAOs a fixed, capitated amount each month for providing coverage for Medicare beneficiaries enrolled in the Medicare Advantage Plan. CMS advises individuals to consider various factors in deciding between a Medicare Advantage Plan and Original Medicare, such as differences in out-of-pocket costs and doctor choice.
As alleged in the Complaint filed in Manhattan federal court:
It is well known within the skilled nursing facility industry that it is typically more profitable to admit residents who are enrolled in Original Medicare than residents enrolled in Medicare Advantage Plans. From September 2016 to February 2019, CITADEL exerted pressure on PLAZA REHAB CENTER staff to increase the number of residents enrolled in Original Medicare in order to increase Medicare reimbursements. PLAZA REHAB CENTER staff disenrolled many residents from their self-selected Medicare Advantage Plans and enrolled them in Original Medicare without obtaining the consent of the residents or their authorized representatives.
PLAZA REHAB CENTER staff were supposed to ensure that residents (or their authorized representatives) signed “disenrollment forms” prior to effectuating any disenrollment of the resident from their Medicare Advantage Plan. However, in many instances, PLAZA REHAB CENTER staff disenrolled residents from their Medicare Advantage Plan and enrolled them in Original Medicare without obtaining a signed disenrollment form reflecting the resident’s consent. Indeed, PLAZA REHAB CENTER employees effectuated numerous disenrollments without ever speaking to the resident or their authorized representative or explaining the consequences of switching to Original Medicare. In addition, in other instances, PLAZA REHAB CENTER staff discussed a disenrollment with the resident and purportedly obtained the resident’s consent, but the resident did not have the capacity to provide consent because of their health condition.
In the settlement agreement, PLAZA REHAB CENTER and CITADEL admit, acknowledge, and accept responsibility for the following conduct:
- PLAZA REHAB CENTER staff, at the direction and under pressure from a CITADEL manager responsible for the new admission practices, changed PLAZA REHAB CENTER residents’ insurance from Medicare Advantage Plans to Original Medicare after such residents’ admission to PLAZA REHAB CENTER. Among other things, CITADEL set a monthly disenrollment quota for PLAZA REHAB CENTER and identified potential candidates for disenrollment. PLAZA REHAB CENTER earned greater revenues for residents if such residents were enrolled in Original Medicare, as compared to Medicare Advantage Plans.
- PLAZA REHAB CENTER staff often did not obtain the consent of the resident or their authorized legal representatives prior to disenrolling the resident from their Medicare Advantage Plan and enrolling them in Original Medicare.
- In approximately 19 instances, PLAZA REHAB CENTER staff purportedly obtained the residents’ consent before disenrolling them from their Medicare Advantage Plan, but, according to these residents’ mental status assessments, they did not have the capacity to provide consent because of their health condition. PLAZA REHAB CENTER regularly failed to consider the results of these mental health assessments and did not evaluate the capacity of residents to consent to the insurance change.
- PLAZA REHAB CENTER staff effectuated these changes in a resident’s coverage by logging on to the Medicare.gov website using the resident’s personal information. PLAZA REHAB CENTER staff would use this website to disenroll the resident from their self-selected Medicare prescription drug plan, which resulted in the resident automatically being disenrolled from their self-selected Medicare Advantage Plan and being enrolled into Original Medicare. In some instances, when completing the information online to effectuate the disenrollment, PLAZA REHAB CENTER staff misrepresented that they were either: (i) the person listed on the enrollment form; (ii) a person helping the person listed on the enrollment form in completing the form; or (iii) a person authorized to act on behalf of the individual on the enrollment form under the laws of the State where the individual resided.
- PLAZA REHAB CENTER and CITADEL often did not offer Plaza Rehab Center residents assistance in re-enrolling them in a Medicare Advantage Plan upon discharge from the Plaza Rehab Center facility.
- As a result of the conduct described above, the Government made payments under Original Medicare to PLAZA REHAB CENTER for residents who were improperly enrolled in Original Medicare without their consent. PLAZA REHAB CENTER was not entitled to these payments.
* * *
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.
Mr. Williams thanked HHS-OIG for its investigative efforts and assistance with the case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorney Charles S. Jacob is in charge of the case.
Two Members of Baltimore “Triple C” Gang Plead Guilty to a Racketeering Conspiracy, Including Murders and Attempted MurdersRead the Press Release
Baltimore, Maryland – Rashaud Nesmith, a/k/a Shaud, age 21, and Michael Chester, a/k/a Mikkie, age 23, both of Baltimore, have pleaded guilty to their participation in a racketeering conspiracy, including attempted murder and murder, respectively, related to their participation in the violent street gang known as Cruddy Conniving Crutballs or Triple C, that operated throughout Baltimore City. Chester entered his guilty plea today and Nesmith entered his plea yesterday.
Rashaud Nesmith also pleaded guilty to a second racketeering conspiracy charge in connection with his participation in a group that conspired to commit multiple armed carjackings and robberies throughout Baltimore City.
The guilty pleas were announced United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Commissioner Michael Harrison of the Baltimore Police Department.
According to Nesmith’s plea agreement, Nesmith admitted that in connection with the carjacking and robbery conspiracy, Nesmith participated in a carjacking and two armed robberies and an attempted armed robbery, during two victims were shot and killed and one was shot and seriously injured. Specifically, a carjacking on April 19, 2019, in which a firearm was brandished; the July 23, 2019 robbery of Devon Chavis during which at least one member of the conspiracy discharged a firearm, striking and killing Chavis; the August 1, 2019 attempted robbery of Kendrick Sharpe, during which at least one member of the conspiracy fired a gun, striking and killing Sharpe; and the August 8, 2019 robbery of a victim, during which at least one member of the conspiracy fired a gun, striking and severely injuring the victim. In addition, Nesmith knew that his co-conspirators would commit other acts that he did not participate in, including a carjacking on June 12, 2019 where an individual was shot and killed, and five additional carjackings committed from June 12, 2019 through July 29, 2019.
According to Nesmith’s and Chester’s plea agreements, Triple C members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings, in order to promote the reputation of Triple C and to command respect from the neighborhood. Other spin-offs of the gang are “SCL” and recently, “TRD.”
As detailed in the plea agreements, the gang benefitted financially from, and affected interstate commerce by, selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies. Triple C members also robbed dice games for cash and occasionally carjacked vehicles. Members divided the proceeds of the robberies and murders among members who participated, and often contacted each other to commit a robbery if that member needed money.
Also, according to the plea agreements, Triple C members routinely used social media to identify and locate victims and to communicate with each other and share information concerning possible retaliation for violent crimes committed by gang members. Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence. They limited conversations about criminal plans to members of Triple C and critiqued each other after committing crimes regarding ways to improve their actions.
Chester admitted that he participated in five murders during which at least one member of the conspiracy discharged a firearm, including the murder of Devonte Monroe on August 19, 2017, the murder of Carols Jones on August 28, 2017, the murder of Diamante Howard on April 21, 2018, the murder of Darius Mason on July 29, 2018, and the murder of Corey Moseley on December 31, 2018. In addition, Chester participated in an attempted murder on April 4, 2018 and on May 1, 2018 was found with the firearm which is a ballistics match to that attempted murder. Nesmith admitted that as part of his activities with Triple C, he participated in four attempted murders, including an attempted murder of an individual on February 24, 2019; the attempted murder of Bel Air Road rivals on March 2, 2019; and the attempted murder of two individuals on July 4, 2019. Chester and Nesmith acknowledged that as part of their activities with Triple C, they agreed to distribute controlled substances, including crack cocaine and that it was reasonably foreseeable to them that members of the conspiracy would commit additional murders, attempted murders, carjackings, and robberies.
Chester, Nesmith and the government have agreed that, if the Court accepts their pleas, Chester will be sentenced to 20 years in federal prison and Nesmith will be sentenced to 40 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for Chester of October 7, 2022, at 10 a.m. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for Nesmith on October 28, 2022, at 12 p.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in these investigations and thanked the FBI and the Office of the Baltimore City State’s Attorney for their assistance in the investigations and prosecution. Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane, who is prosecuting these cases.
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Twelve Alleged Members of Methamphetamine and Cocaine Trafficking Ring ArrestedRead the Press Release
EVANSVILLE – A federal grand jury returned an indictment charging twelve individuals with conspiracies to distribute methamphetamine and cocaine. Three of the defendants are also charged with illegally possessing firearms as convicted felons. The indictment was unsealed today following their arrests and initial appearances.
As alleged in court documents, John Byers, of Bowling Green, Kentucky, was the leader of a drug trafficking organization based out of Evansville that distributed large quantities of methamphetamine and cocaine around southern Indiana. Byers supplied codefendant Stacey Cabell, of Evansville, and others with methamphetamine. Byers also coordinated with others, including Lance Foster, of Plano, Texas, and Octavia Finott, of Evansville to ship multiple pound quantities of methamphetamine into the Evansville area. Byers further supplied Robert Brown, Jr., of Evansville, and others with cocaine.
The indictment alleges that multiple members of this drug trafficking ring were already convicted felons who illegally possessed firearms.
To date in this investigation, authorities have seized approximately 35 pounds of methamphetamine, approximately 45 grams of cocaine, and 4 firearms.
The following individuals are in custody or have been ordered to appear in federal court:
Defendant
Charge(s)
John Byers, 48, of Bowling Green, Kentucky
Conspiracy to distribute methamphetamine and cocaine
Lance Foster, 42, of Plano, Texas
Conspiracy to distribute methamphetamine
Octavia Finott, 38, of Evansville
Conspiracy to distribute methamphetamine
Stacey Cabell, 49, of Evansville
Conspiracy to distribute methamphetamine and cocaine
Taran Johnson, 24, of Evansville
Conspiracy to distribute methamphetamine
William Bacon, 56, of Evansville
Conspiracy to distribute methamphetamine; felon in possession of a firearm
Thomas Vest, 27, of Evansville
Conspiracy to distribute methamphetamine; felon in possession of a firearm
James Musgrave, 39, of Evansville
Conspiracy to distribute methamphetamine
Robert Brown, Jr., 51, of Evansville
Conspiracy to distribute cocaine
*Tony Johnson, 31, of Evansville
Conspiracy to distribute cocaine; felon in possession of a firearm
Tyron Northington, 33, of Evansville
Conspiracy to distribute cocaine
Antwan Hendry, 48, of Evansville
Conspiracy to distribute cocaine
The defendants face the following possible penalties, if convicted:
Charge
Penalties
Conspiracy to distribute methamphetamine
10 years to life in prison
Conspiracy to distribute cocaine
5 to 40 years in prison
Felon in possession of a firearm
Up to 10 years in prison
Actual sentences are determined by a federal district court judge and are typically less than the maximum penalties.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office made the announcement.
This case was the result of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Postal Inspection Service, the Evansville-Vanderburgh County Drug Task Force, the Evansville Police Department, the Vanderburgh County Sheriff’s Office, the Indiana State Police, and the Bowling Green Kentucky Police Department. The Vanderburgh County Prosecutor’s Office provided invaluable assistance.
U.S. Attorney Myers thanked Assistant United States Attorney Kristian Mukoski, who is prosecuting this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Troy Resident Pleads Guilty to Role in Nationwide “Felony Lane Gang” ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Terrell McDonald, age 32, of Troy, New York, pled guilty today to conspiracy to commit bank fraud and aggravated identity theft, announced United States Attorney Carla B. Freedman; Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Putnam County Sheriff Kevin J. McConville.
In pleading guilty, McDonald, whose aliases include “Ruger” and “Moon,” admitted that he was involved in a fraud scheme known as “Felony Lane Gang” between 2018 and September 2020. McDonald and his co-conspirators traveled across the country breaking into cars, often targeting those parked by women at locations such as health and fitness centers, daycares, outdoor recreational parks, and dog parks. After committing these “smash-and-grab” vehicle thefts, McDonald and other members of the conspiracy used stolen debit cards, credit cards, checkbooks, and photo identifications to commit bank fraud by recruiting women who impersonated the smash-and-grab victims in drive-through bank lanes to withdraw money and cash checks. The recruited check cashers were almost always suffering from an addiction to controlled substances and were provided payment at least partially in narcotics. McDonald admitted that the loss amount from the conspiracy attributable to him is between $95,000 and $150,000.
The charges to which McDonald pled guilty carry a minimum sentence of 2 years in prison and a maximum sentence of 30 years, a fine of up to $1 million, and a supervised release term of up to 5 years. McDonald will be sentenced on October 27, 2022, by Senior United States District Judge Norman A. Mordue. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
McDonald was one of nine men charged in a 13-count indictment for their roles in the scheme. Keyshawn Arnold, age 25, of Schenectady, New York, and Tyrone Parker, age 40, of Fort Lauderdale, Florida, previously pled guilty for their roles in the indictment. The remaining co-defendants are:
- TYRONE PARKER, JR. a/k/a “Ty,” a/k/a “Cheese,” a/k/a “Little Thigh,” age 22, of Fort Lauderdale, Florida;
- JOSHUA MALLORY, a/k/a “P,” a/k/a “Pudge,” age 37, of Fort Lauderdale;
- RANDALL TAYLOR, a/k/a “Gucci,” a/k/a “Guwop,” age 35, of Fort Lauderdale;
- CEDRIC LYNCH, a/k/a “City,” a/k/a “C,” age 37, of Orlando, Florida;
- ROBERT NATSON, a/k/a “Big Rob,” age 36, of Fort Lauderdale; and
- GARY GRIER, a/k/a “G,” age 36, of Fort Lauderdale.
Each of these defendants is charged with conspiracy to commit bank fraud and aggravated identity theft. The charges in the indictment are merely accusations, and the defendants whose cases remain pending are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI Westchester Resident Agency of the New York Field Office and the Putnam County Sheriff’s Department, with assistance from the FBI Field Offices in Albany, Miami, and Salt Lake City, and Resident Agencies in Savannah, Georgia, and Portland, Maine, and from the U.S. Attorney’s Office for the District of Maine, the Saratoga County District Attorney’s Office, and the Ulster County District Attorney’s Office. Additional assistance was provided by numerous law enforcement agencies, including, within New York, the New York State Police; Columbia County Sheriff's Office; Genesee County Sheriff’s Office; Monroe County Sheriff’s Office; Saratoga County Sheriff’s Office; Warren County Sheriff’s Office; and the police departments of the Town of Bethlehem; Glens Falls; Gloversville; Greenburgh; Greece; and Watervliet; and elsewhere, Connecticut State Police; Florida Department of Law Enforcement; Georgia State Patrol; Illinois State Police; Massachusetts State Police; Broward County, FL Sheriff’s Office; Northern York County, PA Regional Police; Southern Chester County, PA Regional Police; Utah County, UT Sheriff's Office; and the police departments of Auburn, MA; Bath, ME; Biddeford, ME; Bozeman, MT; Brunswick, ME; Caernarvon Township, PA; Chester Township, PA; Cinnaminson, NJ; Darien, CT; East Norriton Township, PA; Easthampton, MA; Greenwich, CT; Lower Moreland Township, PA; Manheim Township, PA; Portland, ME; Portsmouth, NH; Saco, ME; Salisbury, MA; Sanford, ME; Scarborough, ME; Somersworth, NH; South Portland, ME; St. George, UT; Syracuse, UT; Tinicum, PA; Towamencin, PA; Tewksbury, MA; Wakefield, MA; Yarmouth, ME; and York, ME.
The case is being prosecuted by Assistant United States Attorneys Matthew J. McCrobie and Michael F. Perry.
Three More Defendants Sentenced for Their Roles in Wide-Ranging Medicaid Fraud ConspiracyRead the Press Release
PITTSBURGH, Pa. – Two residents of Pittsburgh and a resident of Georgia were sentenced in federal court for conspiracy to defraud the Pennsylvania Medicaid program and related offenses, United States Attorney Cindy K. Chung announced today.
During sentencing hearings on June 28 and June 29, 2022, United States District Judge Cathy Bissoon sentenced Tiffhany Covington, 45, of Pittsburgh, to fifteen months’ imprisonment; Luis Columbie-Abrew, 36, of East Point, Georgia, to three years’ probation, including twelve months of home confinement; and Julie Wilson, 51, of Pittsburgh, to three years’ probation, including six months of home confinement. Covington, Columbie-Abrew, and Wilson were also ordered to pay restitution to the Pennsylvania Medicaid program totaling $245,376.26, $164,799.48, and $2,083.36, respectively. All three defendants previously pleaded guilty to conspiracy to commit health care fraud. Columbie-Abrew and Wilson also pleaded guilty to health care fraud, with Columbie-Abrew pleading guilty to an additional charge of aggravated identity theft.
During their plea hearings, each defendant admitted that they were employees of one or more of four related entities operating in the home health care industry—Moriarty Consultants, Inc. (MCI), Activity Daily Living Services, Inc. (ADL), Coordination Care, Inc. (CCI), and Everyday People Staffing, Inc. (EPS). MCI, ADL, and CCI were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients (“consumers”), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. Between 2011 and 2017, the defendants admitted that they participated in a wide-ranging conspiracy to defraud the Pennsylvania Medicaid program for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims or for which there was insufficient or fabricated documentation to support the claims. The Court was further advised that the defendants conspired with, among others, Arlinda Moriarty, the owner of MCI, ADL, and EPS; Daynelle Dickens, the owner of CCI and Arlinda Moriarty’s sister; various office workers at the companies, including Tamika Adams, Tony Brown, Terra Dean, Larita Walls, Keith Scoggins, and Tia Collins; and caregivers (“attendants”) at MCI, including Tionne Street and Autumn Brown. To date, each of these co-conspirators have also pleaded guilty for their roles in the conspiracy.
As part of the conspiracy, the defendants each admitted that co-conspirators fabricated timesheets to reflect the provision of in-home PAS care they provided to consumers but that, in fact, never occurred. In addition, certain co-conspirators, including Covington and Columbie-Abrew, stopped using their own names as the attendant on timesheets and instead used the names of “ghost” attendants, some of whom permitted their names to be used in exchange for a kickback of resulting fraudulent salary payments. The defendants also admitted that certain co-conspirators submitted false timesheets for PAS care they never provided during times when they were actually working at other jobs or living out of the area. In some cases, as the defendants acknowledged, Medicaid claims were submitted for PAS care that purportedly occurred while consumers were hospitalized, incarcerated, or deceased, and in other instances, co-conspirators paid kickbacks to consumers in exchange for the consumers’ agreement to participate in the submission of fraudulent timesheets in support of Medicaid claims. Indeed, Columbie-Abrew specifically admitted causing the submission of hundreds of thousands of dollars of Medicaid claims for purported care of consumers who lived in the Pittsburgh area, despite the fact that he—as the purported attendant—lived several states away in Georgia.
The defendants also admitted that Arlinda Moriarty directed co-conspirators, including Covington, to bill the maximum allowable PAS and service coordination hours for consumers to maximize profits and to ensure that the state did not require MCI, ADL, and CCI to forfeit underutilized consumer hours. To that end, Wilson acknowledged that, at Moriarty’s behest, she collected information about consumers who had “unused” PAS care hours—that is, hours of authorized PAS care that had not been performed and, as a result, had not been billed to Pennsylvania Medicaid. In response, Wilson would provide lists of such consumers and their “unused” hours to Moriarty and Dickens. Moriarty, in turn, would direct Wilson to submit false claims, in bulk, for some or all of the “unused” hours—without the relevant consumers’ knowledge or consent. Wilson further admitted that she would then send Moriarty a list of the “unused” hours Wilson had billed and that required the creation of back-dated timesheets to document the purported care. Rampant document fabrication also occurred during the course of state audits of the Moriarty-related entities.
Assistant United States Attorney Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of
Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.Three Florida Pharmacies Agree to Pay $830,707 to Resolve Allegations They Fraudulently Billed Federal Health Care ProgramsRead the Press Release
Miami, Florida – Habana Hospital Pharmacy, Inc., Longevity Drugs, LLC, and Forest Hill Pharmacy, LLC, all Florida-based pharmacies, have agreed to pay $830,707.19 to resolve allegations they fraudulently used collaborative pharmacy practice agreements to bill federal health care programs for unlawfully prescribed medications.
The United States previously alleged that five Florida-based pharmacies, including Habana Hospital Pharmacy, Inc., Longevity Drugs, LLC, Forest Hills Pharmacy, LLC, APB&J Holdings Corporation, and Tropic Pharmacy Holdings, Inc., violated the False Claims Act through the fraudulent use of collaborative pharmacy practice agreements. Representatives of the five pharmacies signed the settlement agreement.
A collaborative pharmacy practice agreement is a written agreement between a physician and pharmacist that allows the pharmacist to provide specific patient care services for chronic health conditions to the physician’s patients. Services provided by the pharmacist are outlined in the written agreement and must be in accordance with Florida law.
The United States previously alleged that the settling pharmacies used unlawful collaborative practice agreements to delegate prescribing authority from physicians to pharmacists, resulting in unlawful prescriptions, and used the same collaborative practice agreements to write and fill prescriptions without any physician involvement. It was alleged that the fraudulent scheme resulted in the submission of false claims to federal health care programs, including Medicare and Medicaid.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Omar Pérez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the settlement.
The settlement resolved allegations in a lawsuit filed by Beatriz Morales in federal court in Miami, Florida. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act allows the government to intervene and take over the action, as it did in this case. The whistleblower share to be awarded in connection with the settlement is $166,141.44.
HHS-OIG investigated the matter. Assistant United States Attorney Matthew J. Feeley handled the litigation.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 17-cv-80871.
A copy of the settlement agreement is available
here .###
St. Petersburg Man Sentenced to More Than 5 Years in Prison for His Involvement in Drug Trafficking OrganizationRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber today sentenced Shyron Deonta Givens, a/k/a “Ron,” (45, St. Petersburg) to 5 years and 10 months in federal prison for conspiring to distribute cocaine. Givens had pleaded guilty on April 16, 2021.
According to court documents, Givens was one of eleven defendants charged with federal drug trafficking offenses. According to the indictment, from around August 2018, and continuing through November 26, 2019, Givens and others conspired to distribute heroin, fentanyl, and cocaine. As part of this conspiracy, Givens facilitated cocaine deals between the co-defendants. In total, Givens was responsible for several drug transactions that involved more than 5 kilograms of cocaine.
Each of the eleven individuals charged in this case has pleaded guilty and been sentenced, as reflected in the chart below:
Defendant (age, residence)
Sentence Imposed
Ahmad Rashad Weston, a/k/a “Blood,” (45, St. Petersburg)
17 years, 6 months
Charleston Shellie Long, a/k/a “Shellie,” (41, St. Petersburg)
7 years, 6 months
Shyron Deonta Givens, a/k/a “Ron,” (45, St. Petersburg)
5 years, 10 months
Charlie James McDuffy, Jr. (34, Clearwater)
10 years
Teddy Terrell Strachan (40, Pembroke Pines)
6 years, 6 months
Ceveghnta Billvon Guyden, a/k/a “Chop,” (44, St. Petersburg)
17 years, 6 months
Quincy Alfonzo Turner, a/k/a “Chico,” (44, St. Petersburg)
10 years
Justice Deshonna McLaurin, a/k/a “Jussy,” (27, St. Petersburg)
5 years
Willie Carl McLaurin, a/k/a “Baldy,” (55, St. Petersburg)
Time Served
Ja’Vonta Willie McLaurin, a/k/a “Tay Tay,” (28, St. Petersburg)
5 years
Willie Carl McLaurin, Jr. (33, St. Petersburg)
5 years
This case was investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this OCDETF operation include the Drug Enforcement Administration, the St. Petersburg Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
St. Louis man sentenced on aggravated ID theft, other chargesRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Wednesday sentenced a St. Louis man who used stolen identities to perpetrate a series of crimes, including hiding evidence for a jail inmate, to three years and eight months in prison.
Bryson Whiteside, 24, was also ordered to pay restitution of $8,735.
Whiteside pleaded guilty March 23 to use of a counterfeit access device, aggravated identity theft, two counts of possession of counterfeit securities and possession of a stolen vehicle.
Whiteside admitted that in early 2021, he used someone else’s name and birthdate, as well as a counterfeit ID, to communicate with Samuel Stoddard, who was at that time a pretrial detainee at the Jennings jail. Stoddard asked Whiteside to remove evidence of criminal activity from a storage facility, and Whiteside then used a second person’s identity to recover the items. After Stoddard was released from jail, he violated a judge’s order by leaving Missouri. Whiteside met with Stoddard in Kentucky, and Stoddard gave Whiteside a stolen car, a counterfeit temporary Illinois license bearing Whiteside’s picture and a counterfeit Illinois motor vehicle registration card in Whiteside’s name.
On May 4, 2021, investigators found Whiteside in a St. Charles motel with scanners, laptop computers, stolen financial records and personal identifying information that Whiteside intended to use to produce and use counterfeit checks and fraudulently obtain credit cards.
Whiteside’s co-defendant, Ashley Kelley, 30, of St. Ann, was sentenced last month to three years and one month in prison.
Stoddard is scheduled to be sentenced in September after admitting a series of crimes involving the use of stolen or fraudulent identities.
The case was investigated by the U.S. Postal Inspection Service, the U.S. Secret Service and the Missouri Department of Revenue. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Springfield Man Sentenced to 18 Years for Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Springfield man has been sentenced in federal court for leading a conspiracy to distribute methamphetamine in the Springfield area, including an undercover drug transaction that occurred in a home with two young children.
Devin J.H. Wrinkle, 32, was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, June 28, to 18 years and four months in federal prison without parole.
On Jan. 27, 2022, Wrinkle pleaded guilty to participating in a conspiracy to distribute methamphetamine in Greene County, Mo., from Dec. 27, 2019, to Aug. 19, 2020. He also pleaded guilty to distributing methamphetamine on a premises where a minor resided.
During the course of the drug-trafficking conspiracy, officers seized more than 425 grams of methamphetamine from Wrinkle and co-defendant Ashley N. Cooney, 39, of Springfield. In addition to the methamphetamine that was seized, an undercover law enforcement officer saw Wrinkle in possession of at least two pounds of methamphetamine.
Two confidential informants contacted law enforcement in January 2020 regarding Wrinkle being a pound-level distributor of methamphetamine in the Springfield area. An undercover law enforcement officer purchased methamphetamine from Wrinkle on two occasions. Wrinkle was in possession of a firearm during one of those undercover transactions, and again when he fled from the police on a motorcycle.
The second undercover drug transaction occurred at the John B. Hughes Apartments, inside another person’s apartment where two children, ages five and seven, resided. Wrinkle was in possession of at least two pounds of methamphetamine on that occasion.
On March 4, 2020, law enforcement officers executed a search warrant at Cooney’s residence. Officers found a Starbucks cup with approximately 34.2 grams of methamphetamine, a purse that contained a small baggie with approximately 1.1 grams of methamphetamine, another small baggie that contained approximately 1.1 grams of methamphetamine, three water bongs with methamphetamine residue inside a desk drawer, and drug paraphernalia in an upstairs office. Inside the toilet bowl of the upstairs bedroom, officers found two plastic bags that contained a total of approximately 329 grams of methamphetamine.
Later that month, according to court documents, Wrinkle fled from police on a motorcycle in possession of a firearm, ammunition, methamphetamine, and marijuana. He wrecked the motorcycle and took off running, at which point he tossed the firearm on the ground.
Cooney pleaded guilty and was sentenced on March 17, 2022, to three years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Missouri State Highway Patrol, the Drug Enforcement Administration, the Springfield, Mo., Police Department, and the Greene County, Mo., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
South Florida Health Care Clinic Owners, Employees Sentenced for Roles in Multiple Fraud SchemesRead the Press Release
Miami, Florida – A federal district judge in Miami sentenced the last of five defendants for his role in a health care fraud scheme operated out of a physical therapy clinic in Doral.
According to court records, the defendants recruited and paid off beneficiaries of Blue Cross Blue Shield (BCBS) health insurance plans, then billed BCBS for services the clinic either never provided or which were not medically necessary. The two clinic owners also used the business, Polyclinic Healthcare Corp., to fraudulently obtain COVID-19 relief funds.
The five defendants were sentenced as follows:
- Carlos Rafael Saez Dorta, age 42, (clinic owner) was sentenced to 135 months in prison following a jury trial, three years’ supervised release, and ordered to pay $4,434,069 in restitution;
- Veronica Ramos Hernandez, age 35, (clinic owner) was sentenced to 135 months in prison following a jury trial, three years’ supervised release, and ordered to pay $4,434,069 in restitution;
- Michael Burrowes, age 43, (patient recruiter) was sentenced to 46 months in prison following a guilty plea, three years’ supervised release, and ordered to pay $73,116.61 in restitution;
- Dianelis Garcia Alvarez, age 41, (office manager) was sentenced to 35 months in prison following a guilty plea, three years’ supervised release, and ordered to pay $357,256 in restitution; and
- Deandre Mitchell Gabriel, age 33, (patient recruiter) was sentenced to 24 months in prison following a guilty plea, three years’ supervised release, and ordered to pay $30,810 in restitution;
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
According to evidence introduced in court, the billing fraud conspiracy resulted in more than $8 million in false claims being submitted to BCBS. Most of the claims were for unneeded or never-provided physical therapy treatments, such as electrical stimulation, ultrasound therapy, and therapeutic exercise, as well as for durable medical equipment.
Additionally, the evidence showed that in 2021 the clinic owners (Saez and Ramos) applied for a $607,585 Paycheck Protection Program (PPP) loan as well as a $500,000 Economic Injury Disaster Loan (EIDL) from the U.S. Small Business Administration (SBA). As a result, Saez and Ramos received over $1 million through these COVID-19 relief programs, stealing money that was meant for legitimate small businesses suffering from the devastating effects of the COVID-19 pandemic.
FBI Miami investigated the case. Assistant U.S. Attorneys Shannon Shaw and Stephanie Hauser for the Southern District of Florida prosecuted the case. Assistant U.S. Attorney Annika Miranda handled asset forfeiture.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to millions of Americans who suffered financially from the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the PPP. The CARES Act also authorized and provided funding to the SBA to provide EIDLs to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20324.
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Sober Home Owner Sentenced to 30 Months in Prison for $4.5 Million Kickback SchemeRead the Press Release
A Florida woman was sentenced today to 30 months in prison for a scheme to solicit and receive illegal kickbacks and bribes in exchange for referring residents of her sober home to a substance abuse treatment center, which billed insurance companies $4.5 million for medically unnecessary drug testing and purported substance abuse treatment provided to those residents.
According to court documents, Marthe Hippolyte, 59, of Wellington, owned Turning Point Sober Home Inc. and a related marketing company, through which she operated several sober living residences in Florida to house individuals in a drug- and alcohol-free environment while they received treatment at substance abuse treatment centers. Hippolyte accepted approximately $254,000 in kickbacks and bribes, often disguised as management fees, from Kenneth Chatman, the operator of Reflections Treatment Center (RTC), a treatment center that purported to operate as a licensed substance abuse treatment center. In exchange for the kickbacks and bribes, Hippolyte helped bring in patients from outside Florida who could be referred to RTC and required residents of Turning Point’s sober homes to travel to RTC several times per week to attend purported substance abuse treatment sessions and submit to urine drug testing. For the residents referred to RTC by Hippolyte, Chatman and others billed private insurers $4.5 million for substance abuse and bodily fluid testing that was medically unnecessary, not reimbursable, and not provided as represented.
Hippolyte pleaded guilty on Jan. 25, to one count of conspiracy to violate the Travel Act. Chatman pleaded guilty in 2017 to conspiracy to commit health care fraud, money laundering, and conspiracy to commit sex trafficking, and was sentenced to 330 months imprisonment.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
This case was investigated by the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI; IRS-Criminal Investigation; Palm Beach County State Attorney’s Office, Florida Department of Financial Services, Division of Investigative & Forensic Services; Amtrak Office of Inspector General; and Department of Labor-Employee Benefits Security Administration.
Trial Attorney Gary A. Winters of the Fraud Section’s National Rapid Response Strike Force is prosecuting the case.
Six-time convict and multi-gang member heads to prison againRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Victoria man has been ordered to federal prison following his conviction of possession with intent to distribute meth, announced U.S. Attorney Jennifer B. Lowery.
Michael Salazar pleaded guilty April 7.
Today, U.S. District Judge Drew B. Tipton ordered Salazar to serve 95 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard additional evidence of telephonic conversations during which Salazar discussed illicit drug sales and purchases. While in custody, Salazar also provided an individual with his Facebook login information and instructed her to “deactivate it” and “erase everything.”
Salazar was also identified as a member of the Tango Valluco, Tango Blast and Tango Houston gangs. In addition, the court learned of Salazar’s extensive criminal history that includes six prior drug convictions. Salazar committed the instant offense while serving a sentence for unlawful delivery of controlled substance.
On July 22, 2021, law enforcement was conducting surveillance on a female individual who had an outstanding warrant. However, the operation eventually led to Salazar who was driving East on Port Lavaca Highway with the woman in the passenger seat. Authorities attempted to conduct a traffic stop, but he did not initially comply. He eventually did as instructed.
At that time, authorities conducted a search of the vehicle and discovered a digital scale with meth residue in the center console. They also discovered a bag with crystal-like substance on the passenger side near the front right tire.
While stopped, Salazar told the female to take a bag he had removed from his pockets and run. She did but dropped the bag on the ground. At that time, Salazar yelled several times at the female to “take the charge.”
Laboratory analysis later confirmed the substance in the bag was in fact 22.65 grams of meth at 100% purity.
Salazar has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney J. Parker Gochenour prosecuted the case.
Sioux Falls Man Sentenced for Child PornographyRead the Press Release
United States Attorney Alison Ramsdell announced that a Sioux Falls, South Dakota, man convicted of Possession of Child Pornography was sentenced on June 27, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Shilo Ziegler, age 39, was sentenced to five years in federal prison, followed by five years of supervised release, and ordered to pay $3,000 in restitution and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ziegler was indicted by a federal grand jury on September 9, 2020. He pled guilty on March 28, 2022.
The conviction stemmed from an incident that occurred sometime prior to December 13, 2015, in Lower Brule, South Dakota. Ziegler set up a video tablet in a room he knew a minor victim was about to enter and change in after she exited the shower. A video was later recovered on the same tablet which showed the nude minor.
This case was investigated by the Bureau of Indian Affairs – Office of Justice Services, and the FBI. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Ziegler was immediately turned over to the custody of the U.S. Marshals Service.
Sioux City Man Pleads Guilty to Meth ConspiracyRead the Press Release
Jesse Chavez, 43, from Sioux City, Iowa, pled guilty June 28, 2022, in federal court in Sioux City, to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. In 2015, Chavez was convicted of possession with intent to deliver a controlled substance in Iowa District Court.
At the plea hearing, Chavez admitted that between September 2021 and December 2021, he was involved in a conspiracy that distributed over a pound of meth in the Sioux City area. On December 14, 2021, Sioux City Police officers observed suspicious conduct by Chavez in the Walgreens parking lot and inside the store. Officers confronted Chavez, obtained consent to search his vehicle, and seized three ounces of methamphetamine. Chavez would obtain multiple ounce quantities of methamphetamine from his sources of supply and then sell lesser quantities of the methamphetamine to others.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Chavez remains in custody of the United States Marshal pending sentencing. On Count 1, Chavez faces a mandatory minimum sentence of 15 years’ imprisonment and on Count 2, he faces a mandatory minimum sentence of 10 years’ imprisonment. Chavez faces a possible maximum sentence of life imprisonment, a $28,000,000 fine, and at least ten years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4009.
Follow us on Twitter @USAO_NDIA.
Schenectady Felon Pleads Guilty to Illegally Possessing Loaded PistolRead the Press Release
ALBANY, NEW YORK – Leonard Samuels, age 39, of Schenectady, New York, pled guilty today to illegally possessing a firearm as a convicted felon.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his plea, Samuels admitted to possessing a loaded semi-automatic pistol, which FBI agents and Schenectady Police Department officers recovered in his apartment during a search warrant executed on April 8, 2021. Samuels also agreed to forfeit a loaded “ghost gun” pistol that was recovered from the apartment, as well as a quantity of ammunition for both pistols. A prior felony conviction for criminal possession of a firearm prevented Samuels from legally possessing a firearm in New York.
Samuels faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on October 28, 2022, by United States District Judge Mae A. D’Agostino.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI and the Schenectady Police Department. This case is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Sandy Springs man sentenced for Tricare and Medicare fraud schemeRead the Press Release
ATLANTA - Brett Sabado has been sentenced for his role in a scheme to defraud Tricare and Medicare by submitting fraudulent claims for compound medications and durable medical equipment (DME). Sabado also agreed to pay $950,000 as part of an “ability to pay” civil settlement in order to resolve violations of the False Claims Act for causing false claims for DME to be submitted to the Medicare Program. This resolution is the result of a global investigation involving the criminal and civil divisions of the Northern District of Georgia and the Southern District of California.
“Instead of putting patient care first, the defendants decided their best interests were more important,” said U.S. Attorney Ryan K. Buchanan. “Healthcare providers and pharmacies who use their positions of trust to game the system, specifically designed to maximize their profits, put their patients at risk and divert scarce government resources.”
“Through federal healthcare programs like Medicare and TRICARE, the United States provides essential medical care for the elderly and disabled, and to service members and their families,” said U.S. Attorney Randy Grossman of the Southern District of California. “It is crucial that the American people know that taxpayer funds are being used for these important purposes and not diverted through the schemes of fraudsters. I am proud of the coordination and cooperation among districts and agencies reflected in this outcome,” he added, commending the work of the attorneys and agents in the SDCA and NDGA U.S. Attorneys’ Offices, and at DCIS, FBI, and HHS-OIG, in employing the range of criminal and civil remedies to reach this resolution.”
“This sentence will hold Sabado accountable for the damage he caused to Medicare and every taxpayer in this country,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Government subsidized programs like Medicare help protect the healthcare needs of deserving Americans and the FBI is determined to work with our partners to prevent people from illegally profiting off of them.”
“HHS-OIG is committed to protecting beneficiaries of federal health care programs from fraud and safeguarding valuable taxpayer dollars,” said Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to investigate and hold accountable any providers who egregiously take advantage of their patients for illegitimate financial gain.”
“Compounding pharmacy fraud bilked the Defense Health Agency of over a billion dollars and exploited not only the military, but all citizens,” said DoD Inspector General's Defense Criminal Investigative Service (DCIS) Southeast Field Office Special Agent in Charge Cynthia A. Bruce. “I thank the U.S. Attorney's Office and our investigative team for their tireless effort to untangle this web of crime, trace the assets, and hold these individuals accountable.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Sabado and his co-conspirators received illegal kickbacks for Tricare referrals and prescriptions of compound medication formulations including pain creams, scar creams, and multi-vitamins that they specifically devised to maximize profits.
Sabado operated NHS, a pharmaceutical company that caused compounding pharmacies to submit false claims for these prescriptions to Tricare. The compounding pharmacies paid NHS a portion of the Tricare reimbursement, and NHS paid a portion of its proceeds to healthcare marketing companies that pushed providers into prescribing these unnecessary compound medications.
Sabado further executed the scheme by creating an online portal database used by NHS to facilitate the referral of prescriptions through NHS to the compounding pharmacies. Sabado and others at NHS used claims data to track the referrals made to compounding pharmacies and to invoice those pharmacies for the illegal kickbacks owed to NHS for the referrals. Sabado ultimately caused a loss of $4.5 million to Tricare.
Sabado also conspired with the owners of DME supply companies to submit false and fraudulent claims for medically unnecessary DME such as arm, leg, back, wrist, and neck braces to Medicare. Specifically, Sabado warehoused, packaged, and shipped thousands of fraudulent DME orders to Medicare beneficiaries. Sabado knew that the DME orders were supported by sham prescriptions written by telemedicine physicians who, in many instances, never spoke with or examined the Medicare beneficiaries for whom the physicians ordered DME. Nonetheless, Sabado continued to package and ship DME that Medicare beneficiaries neither requested nor needed.
For his part in this scheme, Sabado received between $5 and $15 for each medically unnecessary brace he shipped. Sabado also received a percentage of all Medicare reimbursement for the braces. Sabado ultimately caused a loss of almost $70 million to Medicare.
Sabado further engaged in similar conduct involving the submission of false and fraudulent claims to Tricare, the New Jersey State Health Benefits Program, and private health care benefits programs for expensive and medically unnecessary compounded medication in other states.
Brett Sabado, 34, of Sandy Springs, Georgia, was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to five years in prison to be followed by three years of supervised release.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services - Office of Inspector General, the Federal Bureau of Investigation, and the Defense Criminal Investigative Service.
The civil resolution was reached by Assistant U.S. Attorney Mellori Lumpkin-Dawson. The criminal case was prosecuted by Assistant U.S. Attorneys Angela Adams and Bernita Malloy in the Northern District of Georgia. A related case in the Southern District of California, United States v. Charles Ronald Green and Melinda Elizabeth Green, Case No. 3:20-cr-01566-DMS, SDCA (San Diego)), was prosecuted by Assistant U.S. Attorneys Valerie Chu and Kevin Larsen.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
St. Thomas Man Charged with Illegally Possessing an Ar-15 FirearmRead the Press Release
ST. THOMAS – U.S. Attorney Delia L. Smith announced today that Desi Henry, Jr., 29, of St. Thomas, was detained by U.S. Magistrate Ruth Miller following his arrest on June 28, 2022, on felon in possession of a firearm charges.
According to court documents, Henry is currently on home confinement for a criminal matter pending trial in the Virgin Islands Superior Court. On May 16, 2022, Superior Court Marshals conducted a routine inspection of Henry’s home during which they discovered a lower receiver of an AR-15 firearm, a high-capacity drum magazine and two optical rifle sights in Henry’s bedroom. Henry is legally prohibited from possessing a firearm based on his 2015 firearm conviction on possession of a firearm with an obliterated serial number. Henry told Superior Court Marshals that an unknown female brought the firearm to him because he is known to "be good with his hands." If convicted, Henry faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the Federal Bureau of Investigations and is being prosecuted by Assistant United States Attorney Kyle Payne. United States Attorney Delia L Smith reminds the public that a criminal complaint is merely an allegation, and that all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Russian Elites, Proxies, and Oligarchs Task Force Joint StatementRead the Press Release
The Russian Elites, Proxies, and Oligarchs (REPO) Task Force has leveraged extensive multilateral coordination to block or freeze more than $30 billion worth of sanctioned Russians’ assets, freeze or seize sanctioned persons’ high-value goods, and heavily restrict sanctioned Russians’ access to the international financial system. REPO members have achieved these successes through close and extensive national and international coordination and collaboration.
In the 100 days since the Finance, Justice, Home Affairs, and Trade Ministers and European Commissioners committed to prioritizing resources and working together to isolate sanctioned Russians from the international financial system, REPO members have:
- Blocked or frozen more than $30 billion worth of sanctioned Russians’ assets in financial accounts and economic resources.
- Immobilized about $300 billion worth of Russian Central Bank assets.
- Seized, frozen, or detained yachts and other vessels owned, held, or controlled by sanctioned Russians, including the Amadea, the Tango, the Amore Vero, the Rahil, and the Phi.
- Seized or frozen luxury real estate owned, held, or controlled by sanctioned Russians.
- Restricted Russia’s access to the global financial system, making it more difficult for Russia to procure technology necessary to sustain its unjust war in Ukraine.
Where appropriate and possible, REPO members are undertaking efforts to update or expand and implement their respective legal frameworks that enable the freezing, seizure, forfeiture and/or disposal of assets, for example within criminal law. These efforts better position members to achieve REPO’s objectives.
REPO is working collaboratively with the private sector to promote effective sanctions implementation. Financial institutions and other entities required to comply with both sanctions and anti-money laundering/countering the financing of terrorism regulations have helped to identify and immobilize assets subject to sanctions and worked to prevent Russia from evading sanctions. Where available, REPO members have relied on the use of registries, such as bank account and beneficial ownership registries. In addition, REPO members deeply appreciate the cooperation that countries outside the REPO Task Force have provided.
REPO’s work is not yet complete. In the coming months, REPO members will continue to track Russian sanctioned assets and prevent sanctioned Russians from undermining the measures that REPO members have jointly imposed. Together, we will ensure that our sanctions continue to impose costs on Russia for its unprovoked and continuing aggression in Ukraine and to prevent funds and economic resources from being provided to or for the benefit of designated persons. As we undertake this work, we are seeking to maximize the impact of sanctions on designated persons and entities while guarding against spillover that affects global commodities markets and food supplies, which Russia has disrupted by choosing and continuing to wage war.
As we undertake REPO’s work, we underscore our shared commitment to our determined and coordinated sanctions response to Russia's war of aggression and to carry on with our efforts in ever closer cooperation, including with the European Commission’s Freeze and Seize Task Force. We continue to increase Russia’s cost of its war. We remain committed to fully implementing and enforcing our economic and financial sanctions and remain vigilant against sanctions evasion and circumvention.
Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 27, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Francis Kills In Sight, age 28, was sentenced to 26 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kills In Sight was indicted by a federal grand jury on February 8, 2022. He pled guilty on March 28, 2022.
Kills In Sight was convicted of Sexual Contact in November 2014. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. Between December 22, 2021, and January 4, 2022, Kills In Sight failed to properly register as a sex offender and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Kills In Sight was immediately turned over to the custody of the U.S. Marshals Service.
Rhode Island Man Sentenced in Insider Trading SchemeRead the Press Release
BOSTON – A Rhode Island man was sentenced today in federal court in Boston for trading on inside information about a Massachusetts company’s planned acquisition of a California semiconductor company.
John Younis, 59, of Bristol, R.I., was sentenced by U.S. Senior District Court Judge Rya W. Zobel to one month of home detention and two years of probation. The government recommended a sentence of six months in prison and six months of home detention. On March 23, 2022, Younis pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud.
In January 2022, Younis was charged with co-defendants David Forte and Gregory Manning.
According to the charging documents, Younis was a close friend of co-conspirator David Forte, whose relative was a senior executive at Analog Devices, Inc. (ADI), a Norwood-based semiconductor company. Beginning in or around June 2016, Forte allegedly obtained material non-public information from his relative about ADI’s planned acquisition of Linear Technology Corp. (Linear), a semiconductor company based in Milpitas, Calif. Forte allegedly passed the information to Younis, who purchased over 1,100 shares of Linear stock and call options (bets that the price of a stock will increase prior to the expiration of the option) in the week leading up to the public announcement of the acquisition on July 26, 2016. Younis also tipped a business associate who allegedly purchased 1,000 Linear shares. After the deal was announced, Younis and his associate sold their Linear securities at a profit. In total, Younis profited nearly $52,000 from the scheme.
Forte and Manning have pleaded not guilty and are awaiting trial.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. The Securities & Exchange Commission provided valuable assistance. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia man admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Anthony Peterson, of Philadelphia, Pennsylvania, has admitted to his role in a multi-state organized drug trafficking enterprise dubbed the “19th Street Enterprise,” United States Attorney William Ihlenfeld announced.
Peterson also known as “Ant Man,” 36, pleaded guilty today to one count of “RICO Conspiracy.” Peterson admitted to working with others as a member of the “19th Street Enterprise,” a criminal organization that engaged in acts of violence, robbery, money laundering, mail and wire fraud, providing and selling false identification documents, and drug trafficking. The enterprise operated in West Virginia, Pennsylvania, Maryland, Delaware, and Puerto Rico.
Peterson faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Philadelphia Man Sentenced to Seven Years for over 30 Counts of Narcotics Offenses Connected to PA-NJ Prescription Forgery RingRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Marques Russell, 37, of Philadelphia, PA, was sentenced to seven years in prison, three years of supervised release, and was ordered to pay a $3,100 special assessment and forfeiture of $129,600 by United States District Judge C. Darnell Jones, II, for his role in an inter-state prescription forgery ring.
In October 2021, the defendant pleaded guilty to 31 counts of possession with intent to distribute oxycodone. The charges stem from Russell’s participation in a forged prescription ring, in which he and others presented fake prescriptions, forging doctors’ signatures, to pharmacies in order to obtain large amounts of oxycodone for illegal resale. The defendant admitted to presenting such prescriptions on 31 occasions to pharmacies in Drexel Hill and Kennett Square, PA. Over a roughly two-year period from about February 2017 through May 2019, Russell obtained 4,320 oxycodone tablets totaling 129,600 milligrams. The defendant was charged by Indictment in 2019, along with eleven others who presented forged prescriptions, and one complicit pharmacist in New Jersey.
“Pharmacies and pharmacists have a responsibility to serve as gatekeepers of a closed system of prescription drug distribution. This defendant and his co-conspirators took advantage of that system to flood the streets of our region with dangerous opioid drugs, no doubt exacerbating the epidemic,” said U.S. Attorney Romero. “Our Office will continue to investigate and prosecute healthcare fraud crimes like this in an effort to deter such conduct and keep our communities safe.”
The case was investigated by the U.S. Drug Enforcement Administration and the Easttown Township Police Department, and is being prosecuted by Assistant United States Attorney David E. Troyer.
Parkersburg Man Sentenced to 10 Years in Prison for Role in Drug ConspiracyRead the Press Release
CHARLESTON, W.Va. – John Michael Wells, II, 33, of Parkersburg, was sentenced today to 10 years in prison, to be followed by five years of supervised release, for conspiring to distribute methamphetamine and marijuana.
According to court documents and statements made in court, Wells was responsible for approximately 20 pounds of methamphetamine being shipped from California to Parkersburg and distributed in the Parkersburg area. Wells admitted to paying and arranging for methamphetamine and marijuana to be shipped through the mail from California in October and November 2021. The methamphetamine and marijuana were subsequently distributed for sale by other individuals, who provided Wells with the cash proceeds. Wells used this cash to order more methamphetamine and marijuana from his suppliers.
United States Attorney Will Thompson made the announcement and commended the excellent investigative work of the Federal Bureau of Investigation (FBI), the Parkersburg Police Department, the Vienna Police Department, the Wood County Sheriff’s Office, and the Parkersburg Violent Crimes and Narcotics Task Force.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-266.
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Palmyra Man Sentenced to 12+ Years for Accessing Child Sexual Abuse MaterialsRead the Press Release
BANGOR, Maine: A Palmyra man was sentenced in federal court today for one count of access with intent to view child pornography, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Jason Colcord, 44, to 145 months in prison and five years of supervised release. He was also ordered to pay $8,000 in restitution. Colcord pleaded guilty on November 19, 2021.
According to court records, between December 2019 and February 2020, Colcord knowingly accessed with intent to view a phone that contained images of child pornography. Many of the images involved prepubescent minors who had not attained the age of 12. He downloaded multiple images using an online peer-to-peer file sharing network and viewed the images on his phone.
To report an incident involving the possession, distribution, receipt or production of child pornography: "Child pornography" captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization each time the images are viewed. File a report with the National Center for Missing & Exploited Children at www.cybertipline.com or 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action. If you have an emergency that requires an immediate law enforcement response, call 911 or contact your local police or sheriff’s department.
Project Safe Childhood: 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 U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Owner of Technology Companies Arrested for Alleged $45 Million Investment Fraud Scheme Involving over 10,000 VictimsRead the Press Release
A Nevada man was arrested today in Los Angeles for an alleged investment fraud scheme that defrauded more than 10,000 victims of over $45 million. A federal grand jury in the District of Nebraska previously returned an indictment on June 14 charging the man, which was unsealed today in Omaha.
According to the indictment, Neil Chandran, 50, of Las Vegas, owned a group of technology companies that he used in a scheme to defraud investors by falsely promising extremely high returns on the premise that one or more of his companies, operated under the banner of “ViRSE,” was about to be acquired by a consortium of wealthy buyers. Chandran’s companies — which included Free Vi Lab, Studio Vi Inc., ViDelivery Inc., ViMarket Inc., and Skalex USA Inc., among others — developed virtual-world technologies, including their own cryptocurrency, for use in the companies’ own metaverse. The indictment alleges that Chandran caused other individuals to make various materially false and misleading representations to investors, including that (a) investors in Chandran’s companies would soon receive extremely high returns when one or more of those companies was purchased by a group of wealthy buyers, (b) investor funds would be used for normal expenses to keep the companies operating until they were purchased, and (c) prominent business figures, including two billionaires, were involved in the purchase. In fact, according to the indictment, there was no such buyer group that was about to purchase the companies for the claimed returns; a substantial portion of the funds were misappropriated for other business ventures and the personal benefit of Chandran and others, including the purchase of luxury cars and real estate; and there were no prominent billionaires involved in purchasing Chandran’s companies.
Chandran is charged with three counts of wire fraud and two counts of engaging in monetary transactions in criminally derived property. If convicted, Chandran faces up to 20 years in prison for each of the wire fraud counts and up to 10 years in prison for each count of engaging in unlawful monetary transactions. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The indictment also alleges that 100 different assets — bank accounts, real estate, and luxury vehicles, including 39 Tesla vehicles — are subject to forfeiture as proceeds of the fraud. U.S. Marshals and the FBI are seizing most of the assets pending resolution of the criminal case.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge Steven D’Antuono of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office is investigating the case. Significant assistance was also provided by the FBI’s Las Vegas, Los Angeles, Miami, and Omaha field offices.
Assistant Chief William E. Johnston and Trial Attorney Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case. Senior Policy Advisor Darrin McCullough and Trial Attorney Sarah Roessler of the Criminal Division’s Money Laundering and Asset Recovery Section are handling forfeiture. The U.S. Attorney’s Offices for the Districts of Nebraska, Nevada, and the Central District of California provided valuable assistance.
All investor victims of this fraud are encouraged to visit the webpage https://www.justice.gov/criminal-vns/united-states-v-chandran to identify themselves as potential victims and obtain more information on their rights as victims, including the opportunity to submit a victim impact statement.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ohio Man Sentenced to Prison for Threatening Reproductive Health Services Facility and an Individual PatientRead the Press Release
An Ohio man was sentenced in federal court today to one year and one day in prison and three years of supervised release for interstate threats; and concurrently to 10 months in prison and one year of supervised release for Freedom of Access to Clinic Entrances (FACE) Act charges, for threatening to bring a bomb to a local reproductive health services facility.
Carlos Manuel Rodriguez Brime, 26, of Columbus, also threatened to kill a patient whom he believed was seeking reproductive health services, specifically an abortion, at the clinic.
On April 11, 2021, Brime made two separate telephone calls to the local reproductive health care clinic. In the first, he made a death threat relating to the prospective patient and in the second, he made a bomb threat directly to the clinic, telling the clinic staff “my organization will be bringing a bomb to your facility. I suggest you close your doors.”
Specifically, Brime admitted to violating the FACE Act – which makes it a federal crime to threaten the use of force to intimidate anyone receiving or providing reproductive health services – and to transmitting a threat in interstate commerce.
“Reproductive health providers and people seeking access to these services must be able to do so free from violence and threats of violence,” said Assistant Attorney General Kristen Clarke. “This sentencing should send a strong message that the Justice Department will continue to aggressively enforce the FACE Act and hold those accountable who violate the law. We stand ready to ensure that health care providers and people seeking reproductive health services are safe, secure and free from violence and threats of violence.”
“Threatening the life of anyone who seeks any type of health service is a heinous act that should not be tolerated,” said U.S. Attorney Kenneth L. Parker. “People must handle their disagreements to positions that are contrary to theirs in a more civil way than using the threat of force or any kind of intimidation.”
Brime was indicted by a grand jury and arrested in September 2021. He pleaded guilty in February 2022.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Kenneth L. Parker for the Southern District of Ohio; Special Agent in Charge J. William Rivers of the FBI Cincinnati Field Office; and Columbus Police Chief Elaine Bryant announced the sentence imposed today by U.S. District Judge Edmund A. Sargus Jr. Assistant U.S. Attorneys Emily Czerniejewski and S. Courter Shimeall and Civil Rights Division Trial Attorney Sanjay Patel are representing the United States in this case.
If you or someone you know has experienced or witnessed a civil rights violation, please report this matter to the FBI at https://www.fbi.gov/investigate/civil-rights.
New York Man Admits Scheme to Deposit over $550,000 in Altered Checks Stolen from MailRead the Press Release
NEWARK, N.J.– A New York man today admitted his role in a scheme to alter and deposit hundreds of checks stolen from mailboxes across New Jersey, U.S. Attorney Philip R. Sellinger announced.
Nigel Lynch, 21, of Yonkers, New York, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of bank fraud conspiracy and one count of conspiracy to receive and possess stolen mail.
According to documents filed in the case and statements made in court:
From February to November 2020, Lynch and two conspirators stole over 290 checks from New Jersey mailboxes in Morris, Essex, Somerset, and Passaic counties. They then altered the stolen checks and deposited them into bank accounts controlled by Lynch and his conspirators. After the stolen checks were deposited, Lynch and his conspirators withdrew cash from the accounts totaling over $550,000.
The bank fraud charge conspiracy charge carries a maximum penalty of 30 years in prison and a $1 million fine; and the conspiracy to receive and possess stole mail carries a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 8, 2022.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
New York Doctor Admits Health Care Fraud Targeting Amtrak, Drug Distribution, and Unlawful Possession of FirearmRead the Press Release
NEWARK, N.J. – A New York doctor today admitted participating in a health care fraud scheme to defraud Amtrak, distribution of a controlled substance in furtherance of that scheme, and the unlawful possession of a firearm, U.S. Attorney Philip R. Sellinger announced.
Michael DeNicola, 59, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with conspiracy to commit health care fraud, distribution of a controlled substance, and unlawful possession of a firearm.
According to documents filed in this case and statements made in court:
From 2019 to August 2021, DeNicola and his conspirators agreed to engage in a scheme to bill the Amtrak health care plan for fraudulent claims for services that either were never provided or were medically unnecessary. They would recruit Amtrak employees to participate in the scheme by paying them to allow the conspirators to use their patient and insurance information to submit false and fraudulent claims. DeNicola and his conspirators submitted false and fraudulent claims that caused Amtrak losses of more than $1.6 million.
DeNicola also provided oxycodone prescriptions to an individual in return for the individual’s agreement to allow his patient and insurance information to be used for the submission of fraudulent insurance claims. DeNicola provided oxycodone prescription to others at the direction of this individual and did so outside of the usual course of professional treatment and without legitimate medical purpose. From April 2017 through February 2018, DeNicola issued 64 oxycodone prescriptions in this manner.
DeNicola also unlawfully possessed a firearm on Sept. 1, 2019, after previously having been convicted in a court of a crime punishable by a term of imprisonment exceeding one year.
The conspiracy to commit health care fraud and unlawful possession of a firearm charges each carry a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The distribution of a controlled substance charge carries a maximum potential penalty of 20 years in prison and a $1million fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Nov. 22, 2022.
U.S. Attorney Sellinger credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York; special agents of the FBI, under the direction of Assistant Director in Charge Michael J. Driscoll in New York; the U.S. Food and Drug Administration Office of Criminal Investigations, under the direction of Acting Special Agent in Charge Bradley Greenberg; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division; and the Amtrak Police Department, under the direction of Chief of Police Samuel Dotson, with the investigation, leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Katherine Romano of the Health Care Fraud Unit in Newark and Daniel V. Shapiro, Deputy Chief of the Criminal Division.
New Orleans Man Pleads Guilty to Conspiracy to Possess a Firearm and Misprision of FelonyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that WARREN PICARD, age 26, of New Orleans, pled guilty to conspiracy to possess a firearm by a felon and misprision of felony.
Specifically, on June 29, 2022, PICARD pled guilty to one count of conspiracy to possess a firearm by a felon, in violation of 18 U.S.C. § 371, and one count of misprision of felony, in violation of 18 U.S.C. 4.
According to the court documents, PICARD and others conspired to possess a Glock Model 19, nine-millimeter caliber pistol on or about July 21, 2020.
For conspiracy to possess a firearm by a felon, PICARD faces a maximum sentence of 5 years imprisonment, a fine of up to $250,000, up to 3 years of supervised release, and a $100 mandatory special assessment fee. For misprision of a felony, PICARD faces a maximum sentence of 3 years imprisonment, a fine of up to $250,000, up to 1 year of supervised release, and a $100 mandatory special assessment fee.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and re-entry programs for lasting reductions in crime.
United States Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Moriarty man found guilty in fraud schemeRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that a federal jury returned a guilty verdict on Milton Boutte, 77, of Moriarty, New Mexico, on June 27. The jury convicted Boutte of conspiracy to defraud the United States and conspiracy to commit wire fraud. Boutte will remain on conditions of release pending sentencing, which has not been scheduled.
Boutte and three other men were charged by indictment with exploiting the now defunct Big Crow Program Office at Kirtland Air Force Base to perpetuate a scheme to defraud the United States. Boutte, along with George Lowe, 60, of Fort Washington, Maryland, Jose Diaz, 63, of El Paso, Texas, and Arturo Vargas, 59, also of El Paso, conspired to submit fraudulent invoices to federal agencies. Beginning in 2004, Boutte, who was then the Director of the Big Crow Program Office, and Lowe, a lobbyist, schemed with Diaz and Vargas, owners of minority-owned small businesses that had sole-source contracts with the Big Crow Program Office, to pay lobbyists, consultants and contractors with funds fraudulently obtained from the United States. The conspirators disguised the nature of the claims for lobbying services provided by Lowe as well as other unauthorized subcontracts and expenditures. The Big Crow Program Office was not authorized to lobby or to expend appropriated funds for lobbying activities under the contracts.
On April 4, 2018, Diaz pleaded guilty to one count of conspiracy to defraud the United States and two counts of fraud against the United States. In his plea agreement, Diaz admitted that over the course of the conspiracy Miratek and Vartek received approximately $8.4 million from the government, of which Boutte required those small businesses to pay nearly $4.1 million to lobbyists, consultants and contractors that Boutte had retained. Of that sum, Miratek and Vartek diverted more than $900,000 to Lowe, and another government contractor paid Lowe an additional $300,000. Diaz faces up to ten years in prison for each count.
On Sept. 12, 2018, Vargas pleaded guilty to conspiracy to defraud the United States and faces up to 21 months in prison. On March 5, 2020, Lowe pleaded guilty to conspiracy to defraud the United States and faces up to 10 years in prison.
Boutte faces up to 10 years in prison for conspiracy to defraud the United States and up to 20 years in prison for conspiracy to commit wire fraud.
All four men are awaiting sentencing.
The case was investigated by the Major Procurement Fraud Unit of the U.S. Army Criminal Investigations Command, Defense Criminal Investigations Services, Defense Contract Audit Agency – Investigative Support, U.S. Small Business Administration Office – Office of Inspector General, and General Services Administration – Office of Inspector General. Assistant U.S. Attorneys Timothy S. Vasquez and Jeremy Peña are prosecuting the case.
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Mission Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 27, 2022, by U.S. District Judge Karen E. Schreier.
Jeffery Leo Larvie, age 39, was sentenced to five months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Larvie was indicted by a federal grand jury on February 1, 2022. He pled guilty on April 4, 2022.
The conviction stems from Larvie failing to register as a sex offender as required by federal law between September 22, 2021, and February 1, 2022. Larvie had previously been convicted of a sex offense in federal court which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Larvie was immediately turned over to the custody of the U.S. Marshals Service.
Minneapolis Man Charged for Violent Carjacking Outside a Northeast Minneapolis RestaurantRead the Press Release
MINNEAPOLIS – A Minneapolis man has been charged in a federal criminal complaint for the armed carjacking of a woman outside her place of work in northeast Minneapolis, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 9, 2022, Shamir Nathann Black, 18, approached a woman outside of her place of work and demanded her car keys. Black proceeded to push the victim to the ground and hit her on the head with a firearm. A bystander attempted to assist the victim but was also assaulted by Black. Black pointed his firearm at the bystander and pulled the trigger, but the gun did not discharge a bullet. Black and an accomplice got into the victim’s vehicle, but surrounding witnesses pulled Black from the driver’s seat and put him on the ground. Black and his accomplice fled the scene on foot.
After arriving at the scene, officers with the Minneapolis Police Department located a Shadow Systems 9mm semiautomatic pistol wrapped in a gray sweatshirt. The firearm had been reported stolen in Prior Lake in April 2022. Investigators reviewed a social media video that showed Black waving around a handgun that matched the firearm recovered at the crime scene. Further investigation revealed that a Volkswagen Jetta had been taken in a Prior Lake home burglary on the same night the firearm was stolen. Law enforcement later recovered the stolen Jetta from Black’s Minneapolis residence. On June 24, 2022, Black was taken into custody.
Black is charged with one count of carjacking. He made his initial appearance yesterday in U.S. District Court before Magistrate Judge Becky R. Thorson and was ordered temporarily detained pending a formal detention hearing on June 30, 2022.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, and the Hennepin County Sheriff’s Office.
Assistant U.S. Attorney Lauren Roso is prosecuting the case.
A complaint is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Miami Man Pleads Guilty to Multiple Drug and Firearms ViolationsRead the Press Release
A man who was arrested three times since 2019 for methamphetamine and firearms violations pleaded guilty Monday in federal court, announced U.S. Attorney Clint Johnson.
Richard Alan Stewart, 50, of Miami, pleaded guilty to three counts of Felon in Possession of Firearms and Ammunition; three counts of Possession of Methamphetamine with Intent to Distribute; Carrying a Firearm During and in Relation to a Drug Trafficking Crime; Carrying, Using, and Brandishing a Firearm During and in Relation to a Drug Trafficking Crime; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Stewart, a convicted felon, brandished or possessed firearms on at least three different occasions along with methamphetamine that he intended to sell.
On Nov. 13, 2019, an Oklahoma Highway Patrol trooper stopped Stewart for a traffic violation. The trooper conducted a search of the car which revealed zip-lock bags of methamphetamine and pills along with a Spike’s Tactical multi-caliber semi-automatic rifle, which is an AR 15. Later, a search was conducted at Stewart’s home where law enforcement discovered 92 grams of methamphetamine.
On March 18, 2021, task force officers conducted a search of Stewart’s residence based on a tip that Stewart continued to traffic large quantities of methamphetamine. When officers confronted Stewart in the home, he drew a stolen Smith & Wesson .380 caliber pistol and pointed it at them. Officers forcibly removed the gun from Stewart’s hand and arrested him. During the search, officers found the following items:
-one black bag containing a large amount of methamphetamine, a loaded Smith
& Wesson .45 caliber revolver, digital scales, and a baggie with yellow pills;
-one black bag with bundles of U.S. Currency totaling $39,350;
-one Heritage .22 caliber revolver
-two additional bags of methamphetamine
-glass pipes
-additional U.S. currency
In total, officers located 1.4 kilograms of methamphetamine.
Finally, on May 17, 2021, Grove City Police officer pulled Stewart over for a traffic violation and conducted a search of the vehicle, which revealed 670 grams of methamphetamine, a glass pipe, a Ruger EC9s 9mm caliber pistol, and seven rounds of ammunition.
In total, law enforcement recovered five illegally-obtained firearms, ammunition, more than 2 kilograms of methamphetamine, and more than $40,000 from the investigation.
Stewart did not cooperate with law enforcement during the investigations. Stewart faces a 17-year sentence for the possession and brandishing of firearms charges and an additional 10 year sentence for distribution of controlled substances. Once sentenced, Stewart will serve a minimum of 27 years in federal prison.
This case was prosecuted as part of Operation Pullin Chains, an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The Bureau of Indian Affairs, Drug Enforcement Administration, Oklahoma Highway Patrol, 13th District Drug and Violent Crimes Task Force, and Grove City Police Department conducted the investigation. Assistant U.S. Attorney Kyle M. McWaters is prosecuting the case.
Mexican National Sentenced to 10 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Juan Zamora Torres, 61, of Mexico, on Tuesday to 10 years in prison for his role in a conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from approximately July 29, 2019, to June 2, 2021, Torres conspired to distribute methamphetamine, including distributing over 4 pounds of methamphetamine on or about July 29, 2019. Additionally, from April 2019 to July 2019, Torres distributed over 8 pounds of methamphetamine and over a pound of heroin to a confidential source. On March 29, 2022, Torres pleaded guilty to the charges.
This case was the product of an investigation by the Federal Bureau of Investigation and the Drug Enforcement Administration. Assistant U.S. Attorneys Aaron D. Pennekamp and Angela L. Scott prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Mexican National & Tax Fraud Fugitive Arrested After Six YearsRead the Press Release
NASHVILLE – A Oaxaca, Mexico, man was arrested this morning, after being sought for the past six years, following his indictment in a conspiracy to file fraudulent federal income tax returns, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Claudio Juarez, 40, was arrested at his residence in Bowling Green, Kentucky, this morning and transported to the Middle District of Tennessee. He will appear before a U.S. Magistrate Judge later this afternoon.
Juarez and others were charged in 2016 with conspiracy to file false claims against the United States, wire fraud, and theft of more than $1,000 of public money.
The investigation began in April 2015, when 10 federal search warrants were executed at various residences and tax return preparation businesses throughout middle Tennessee, including Soto Services with locations in Madison, Hermitage, Springfield, and Gallatin; and S Income Tax Services in Nashville. As a result of this investigation, agents subsequently determined that part of the tax fraud scheme dated back to 2011 and 46 persons were ultimately charged and convicted of federal offenses.
During the investigation, more than $1 million in cash was seized, as well as several late model, luxury automobiles and 11 Nashville-area properties. Many of the individuals charged, including Juarez, were in the United States illegally.
Juarez’s role in the scheme was crucial to its success as he cashed fraudulent checks and dealt in fake documents such as W-2’s and other fraudulent identification documents. In 2016, when agents attempted to arrest Juarez and others, he evaded arrest, and efforts to locate him in the interim were fruitless until earlier this month, when agents learned that Juarez had filed at least two suspected fraudulent tax returns with the IRS. Further investigation led the agents to a Bowling Green tax preparer and then to Juarez.
If convicted, Juarez faces up to 5 years in prison and a $250,000 fine.
This case was investigated by the Internal Revenue Service-Criminal Investigation and Homeland Security Investigations, with arrest assistance by the Bowling Green Police Department. Assistant U.S. Attorney Tom Jaworski is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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