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Featured News

This is $1.4 billion worth of cocaine seized from the drug cartels looks like

by Shore News Network August 6, 2021
By Shore News Network

MIAMI — Coast Guard Cutter James’ crew offloaded approximately 59,700 pounds of cocaine and 1,430 pounds of marijuana worth more than $1.4 billion, Thursday, at Port Everglades, which is the largest offload in Coast Guard history.

The Coast Guard’s strong international relationships, with key partners like Canada and the Netherlands, along with our specialized capabilities and unmatched authorities, allow for a unity of effort to disrupt transnational crime organizations, which threaten America and our partner nations.

This is $1.4 billion worth of cocaine seized from the drug cartels looks like

“Today’s offload is a result of our combined efforts of our inter-agency partners and a dedicated international coalition,” said Vice Adm. Steven Poulin, Commander Atlantic Area. “The Canadian government and Canadian Defence Forces brings an incredible capability in defeating transnational organized crime, and I’m grateful to HMCS Shawinigan to showcase Canada’s commitment. Together we will disrupt, defeat and degrade transnational organized crime. We will strengthen our efforts and continue to build collaboration and capability.”

“Canada and America are committed to expanding cooperation on defending North America against illicit trafficking and transnational crime and working together within our alliances,” said Maj. Gen. Paul Ormsby, Canadian Defence Attache. “We know that no nation can do it alone, and we know that we are stronger together. The kind of cooperation that we see on the pier today is one of the thousands of impressive examples of cooperation every day.”

This is $1.4 billion worth of cocaine seized from the drug cartels looks like

The drugs were interdicted in international waters of the Eastern Pacific Ocean off the coasts of Mexico, Central and South America, and the Caribbean Sea including contraband seized and recovered during 27 interdictions of suspected drug smuggling vessels by 10 American, Dutch and Canadian ships:

  • Coast Guard Cutter James
  • Coast Guard Cutter Mohawk
  • Coast Guard Cutter Dauntless
  • Coast Guard Cutter Thetis
  • Coast Guard Cutter Confidence 
  • USS Wichita
  • USS Sioux City
  • USS Billings
  • HNLMS Holland
  • HMCS Shawinigan

Numerous U.S. agencies from the Departments of Defense, Justice and Homeland Security cooperated in the effort to combat transnational organized crime. The Coast Guard, Navy, Customs and Border Protection, FBI, Drug Enforcement Administration, and Immigration and Customs Enforcement, along with allied and international partner agencies, play a role in counter-drug operations. The fight against drug cartels in the Eastern Pacific Ocean requires unity of effort in all phases from detection, monitoring and interdictions, to criminal prosecutions by U.S. Attorneys in districts across the nation.

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During at-sea interdictions, a suspect vessel is initially detected and monitored by allied, military or law enforcement personnel coordinated by Joint Interagency Task Force-South based in Key West, Florida. The law enforcement phase of counter-smuggling operations in the Eastern Pacific is conducted under the authority of the Coast Guard 11th District, headquartered in Alameda, California. The interdictions, including the actual boardings, are led and conducted by members of the U.S. Coast Guard.

The fight against drug cartels in the Eastern Pacific Ocean and the Caribbean Sea requires unity of effort in all phases from detection, monitoring and interdictions, to criminal prosecutions by international partners and U.S. Attorneys’ Offices in districts across the nation. The law enforcement phase of counter-smuggling operations in the Eastern Pacific Ocean is conducted under the authority of the Coast Guard 11th District, headquartered in Alameda, California, and the law enforcement phase of operations in the Caribbean is conducted under the authority of the Coast Guard 7th District, headquartered in Miami. The interdictions, including the actual boardings, are led and conducted by members of the U.S. Coast Guard. 

The cutter James is a 418-foot national security cutter home ported in Charleston, South Carolina. The cutter Mohawk is a 270-foot medium endurance cutter home ported in Key West, Florida. The cutter Dauntless is a 210-foot medium endurance cutter homeported in Pensacola, Florida. The cutter Thetis is a 270-foot medium endurance cutter homeported in Key West, Florida. The cutter Confidence is a 210-foot medium endurance cutter homeported in Port Canaveral, Florida. The USS Wichita is a 378-foot freedom-class littoral combat ship homeported in Naval Station Mayport, Florida. The USS Sioux City is a 378-foot Freedom-class littoral combat ship homeported in Naval Station Mayport, Florida. The USS Billings is a 378-foot Freedom-class littoral combat ship homeported in Naval Station Mayport, Florida. The Royal Netherlands Navy HNLMS Holland is a 356-foot Holland-class offshore patrol vessel homeported in Den Helder, Netherlands. The HMCS Shawinigan is a 181-foot Kingston-class coastal defence vessel homeported in Halifax, Canada. 

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Department of Justice Press Releases

Multiple defendants federally indicted for illegal firearms possession

by Press Release August 6, 2021
By Press Release

SAVANNAH, GA:  Three men face felony firearms charges in separate indictments by a U.S. District Court grand jury in the Southern District of Georgia, while nine others have admitted to gun charges. 

The cases are being investigated in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

“These prosecutions continue to send a strong message,” said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. “With our law enforcement partners, we are working to make our communities safer by removing guns from the hands of those who illegally possess them.” 

In the past three years, nearly 700 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction on a previous felony. That charge carries a statutory penalty upon conviction of up to 10 years in prison, and there is no parole in the federal system.

Defendants named in federal indictments from the August 2021 term of the U.S. District Court grand jury include:

Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.

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Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession, including:

These cases also are being investigated under the Prosecutor to Prosecutor Program (P3), in which federal and state prosecutors collaborate to determine the most appropriate venue for adjudication of alleged crimes.

Agencies investigating these cases include the ATF; the Savannah Police Department; the Richmond County Sheriff’s Office; the Columbia County Sheriff’s Office; the Port Wentworth Police Department; and the Garden City Police Department.

The cases are being prosecuted for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys, including Henry W. Syms Jr., Steven S. Lee, Joshua S. Bearden, Joseph McCool, Marcela C. Mateo, and Noah J. Abrams, and Special Assistant U.S. Attorney Darron J. Hubbard.

Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense. 

For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.

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Department of Justice Press Releases

Five Alleged Members of Altadena- and Duarte-Based Street Gangs Face Federal Firearms Charges Related to Shootout in Ontario

by Press Release August 6, 2021
By Press Release

          LOS ANGELES – Five alleged members of street gangs based in Altadena and Duarte have been arrested on federal charges of being felons in possession of firearms or ammunition during a shootout in Ontario that investigators say was part of an ongoing dispute with a rival gang, the Justice Department announced today.

          According to the affidavit in support of the criminal complaint, all five defendants used firearms during the February 17 incident, which occurred during a funeral party for a suspected member of the Altadena Bloc Crips (ABC). Investigators with the Ontario Police Department believe the shooting was the result of an attack by the Pasadena Denver Lane Bloods (PDL), which has been in a long-running gang war with ABC and its allies in the Duarte-based Duroc Crips, the affidavit states.

          Surveillance video from the house where the shooting took place “showed that once the PDL members fired the initial shots, at least five subjects from the ABC funeral party ran from the home’s backyard into the front yard and began firing recklessly toward the unidentified PDL members,” according to the affidavit by an ATF special agent, which notes that bullets struck several homes and vehicles in the neighborhood.

          The defendants charged in the criminal complaint, all suspected members of the ABC or Duroc Crips gangs, are:

          During court appearances on the day of their arrests, Lyndolph was ordered held without bond, Taylor was ordered jailed pending a detention hearing scheduled for August 10, and both Roach and Nunley were released on bond. Arraignments for the defendants in this case are scheduled for later this month.

          A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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          The charge of felon in possession of a firearm or ammunition carries a statutory maximum sentence of 10 years in federal prison.

          This case is the product of a joint investigation between ATF and the Ontario Police Department. The United States Marshals Service provided substantial assistance.

          The investigation used intelligence developed by the Los Angeles Crime Gun Intelligence Center and the National Integrated Ballistics Information Network (NIBIN). NIBIN is the only national network that allows the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.

          NIBIN, which is used to link incidents by determining when there is a common firearm, produced multiple intelligence leads during this investigation. The affidavit states that NIBIN linked multiple shooting incidents between October 2020 and the February shoutout, including homicides in Ontario and San Bernardino. As of now, all the incidents are the subjects of open and active investigations, according to the affidavit.

          Assistant United States Attorneys John A. Balla and Peter H. Dahlquist of the Riverside Branch Office are prosecuting this case.

          The ongoing federal investigation is part of the Firearms Trafficking Strike Force launched last month by the Department of Justice.

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Department of Justice Press Releases

Federal Judge Sentences Former Waxhaw, N.C. Resident To 33 Months For Orchestrating An $845,000 Investment Scheme

by Press Release August 6, 2021
By Press Release

CHARLOTTE, N.C. – Kamlesh Gopal Pardasani, 50, formerly of Waxhaw, N.C., was sentenced today to 33 months in prison for orchestrating an $845,000 investment scheme, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad also ordered Pardasani to serve three years of supervised release and to pay $880,000 in restitution.  

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins Acting U.S. Attorney Stetzer in making today’s announcement.

According to filed court documents and today’s court proceedings, from August 2016 to June 2017, Pardasani executed a scheme to defraud at least seven victims of at least $845,000, by inducing the victims to invest in his company, FreightGuru.com LLC (FreightGuru). Court documents show that Pardasani induced his victims to invest their money by falsely representing that he would use the investors’ money to fund a specific shipment of goods, and that, once the shipment cleared, the victims’ return rate on their initial investment would be between 15% and 20%. Pardasani further lied to victims by falsely assuring them that their funds were secure and safe, when in fact he used the victims’ money to fund his lifestyle, pay off personal creditors, and to engage in high-risk securities trading in his personal trading account. After failing to invest the victims’ funds as promised, Pardasani continued to make additional false and fraudulent representations to lull victims and provided excuses for failing to return the victims’ money. 

Pardasani was arrested in January 2020, at the Philadelphia International Airport upon entering the United States from India. In July 2020, Pardasani pleaded guilty to wire fraud.

The FBI’s Charlotte Field Office led the investigation. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case.

The U.S. Attorney’s Office for the Western District of North Carolina is committed to combating neglect, abuse, and financial exploitation of seniors. 

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Department of Justice Press Releases

Shepherd man charged in COVID-19 relief fraud scheme

by Press Release August 6, 2021
By Press Release

BILLINGS – A Shepherd man who owns a restaurant was arraigned today on charges in connection with a scheme to defraud the Small Business Administration (SBA) of approximately $75,000 in a COVID-19 relief loan and to use those funds for personal benefit, including buying classic cars, Acting U.S. Attorney Leif M. Johnson said.

Michael Eugene Bolte, 70, of Shepherd, owner of the Feedlot Steakhouse, pleaded not guilty to an indictment charging him with wire fraud and with engaging in transactions in property derived from specified unlawful activity. If convicted of the most serious crime, Bolte faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.

U.S. Magistrate Judge Timothy J. Cavan presided. Bolte was released pending further proceedings.

The indictment said that in response to the COVID-19 pandemic, the SBA began the Economic Injury Disaster Loan (EIDL) program to provide economic relief to small businesses and nonprofit organizations that experienced a temporary loss of revenue. Loan proceeds were to be used solely as “working capital” for business operating expenses.

The indictment alleged that from April 1, 2020 to about March 4, 2021, Bolte devised a scheme to defraud the SBA by falsely certifying that loan proceeds were to be used as working capital for the business when in fact approximately $75,000 of loan proceeds were used for his own benefit. The indictment includes a criminal forfeiture in which if convicted, Bolte would forfeit to the United States any real and personal property derived from the offense. Property to be forfeited includes four classic cars — a 1916 Studebaker, a 1929 Franklin, a 1939 Ford Deluxe and a 1941 Ford Super Deluxe.

Assistant U.S. Attorney Michael A. Kakuk is prosecuting the case, which was investigated by IRS Criminal Investigation, with assistance from the SBA Office of Inspector General and the U.S. Attorney’s Office.

An indictment is merely an accusation and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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.

PACER case reference. 21-46.

The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

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Department of Justice Press Releases

Fox Chapel Cardiologist Sentenced to 78 Months in Prison for Health Care Fraud Scheme Involving More Than $13 Million of Insurance Billings

by Press Release August 6, 2021
By Press Release

PITTSBURGH – A resident of Fox Chapel, Pennsylvania, was sentenced in federal court following his conviction at trial on two counts of health care fraud, Acting United States Attorney Stephen R. Kaufman announced today.

United States District Judge David S. Cercone sentenced Samirkumar J. Shah, 58, to 78 months of imprisonment followed by three years of supervised release.

“Dr. Shah risked the health of his patients so he could make millions of dollars through unnecessary procedures, and lied and fabricated records for years to perpetuate his fraud scheme,” said Acting U.S. Attorney Kaufman. “This prosecution demonstrates our commitment to protect the healthcare system from fraud and sends a clear message of deterrence to others who might consider similar criminal behavior.”

“Today’s sentence holds Mr. Shah accountable for his appalling actions,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Mr. Shah used his position as a doctor to illegally profit from a healthcare program paid for by taxpayers. Fraud of this magnitude will not be tolerated. The FBI, along with our partners, are committed to making sure the integrity of our health care benefit programs remains intact and will always work diligently to investigate and hold accountable those who think they can steal from the system.”

“Rather than upholding the oath he swore and providing care for patients who trusted him, this defendant misled patients and drained critical Medicaid funds from families who needed it,” said Attorney General Josh Shapiro. “We will not let anyone put their patients’ lives at risk for a profit.”

Shah was convicted on June 14, 2019, following an eight-day jury trial in Pittsburgh. The evidence introduced at trial established that between 2008 and 2013, Shah, a practicing cardiologist, submitted fraudulent claims to private insurance plans—Highmark Blue Cross Blue Shield (Highmark), UPMC Health Plan (UPMC)—as well as government insurance programs—Medicare and Medicaid (through Gateway Health Plan)—for an outpatient treatment known as external counterpulsation, or ECP. ECP involves the use of a specialized bed equipped with pressure cuffs, which exert pressure to patients’ lower extremities as a means to increase blood flow to the heart. The evidence at trial further demonstrated that insurers only reimbursed for ECP treatments of patients who suffered from disabling angina—or significant chest pain caused by decreased blood flow to the heart—and only when a physician supervised the treatment.

In total, Shah purchased 25 beds and offered ECP to patients at more than 18 locations in Western Pennsylvania, Ohio, New York, and Florida. The evidence also showed that, in order to acquire new patients, Shah advertised ECP as “the Fountain of Youth,” claimed that it made patients “younger and smarter,” and offered the treatment for a range of ailments other than disabling angina, including obesity, migraines, high blood pressure, low blood pressure, diabetes, and erectile dysfunction. After signing up new patients, including many patients who never experienced chest pain, Shah instructed his employees to indicate that every patient had disabling angina on billing sheets that were used to support false insurance claims. In certain instances, Shah never met patients for whom he billed for ECP treatments.

The evidence also showed that patients were required to undergo certain diagnostic ultrasounds as a precautionary measure prior to starting ECP—in part to rule out blood clots that could cause a stroke or heart attack during the treatment. Nevertheless, witness testimony established that Shah did not review any of the ultrasound imagery before approving new patients to begin ECP, placing his patients at risk of serious injury or even death.

Likewise, contrary to health insurance requirements, ECP treatments routinely occurred while neither Shah nor any other medical doctor was present at his various locations. On one such occasion, a patient experienced an adverse event during his ECP treatment and had to be transported via ambulance to the hospital.

In addition to billing for ECP treatments that were not medically necessary and were not provided under direct physician supervision, Shah also double-billed insurers by using a so-called “bundled” ECP code, which accounted for and included payment for various incidental procedures, and then separately submitting claims for the same included procedures. The evidence at trial further established that during reviews initiated by various insurers, Shah routinely submitted fabricated patient files and made false statements concerning his practice, his patient population, his record keeping, and his compliance with applicable coverage guidelines.

During the period of Shah’s scheme, the evidence showed that he submitted ECP-related claims for Medicare Part B, UPMC, Highmark, and Gateway beneficiaries, totaling more than $13 million and that he received reimbursement payments in excess of $3.5 million.

As part of his sentence, Shah must pay restitution totaling over $1.2 million to the victim insurers, as well as a $500,000 forfeiture money judgment.

Shah failed to appear for his original sentencing date on July 14, 2021, and he has been custody since the following day after Judge Cercone issued a warrant for his arrest.

Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt prosecuted this case on behalf of the government.

The Federal Bureau of Investigation and Pennsylvania Office of Attorney General, Medicaid Fraud Control Unit, conducted the investigation that led to the conviction of Shah.


 

 

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Department of Justice Press Releases

Rhode Island Man Sentenced To 18 Months Of Imprisonment For Automobile Warranty Fraud Scheme

by Press Release August 6, 2021
By Press Release

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason Pannone, age 40, of North Providence, Rhode Island was sentenced to 18 months’ imprisonment and two years of supervised release by United States District Court Judge Malachy E. Mannion for conspiring to commit wire and mail fraud, and for aggravated identity theft offenses.

According to Acting United States Attorney Bruce D. Brandler, Pannone was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile detailing shop, Platinum Auto Services, and through Ultra Auto Services, where he was employed.  The invoices were sent to and paid by an automobile warranty company in Wilkes-Barre, Pennsylvania.  Pannone pleaded guilty on March 23, 2021, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company.  Judge Mannion ordered Pannone to pay restitution of $128,667.16 to the victim of his crime.

Three of Pannone’s coconspirators were convicted in this investigation:

The case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorneys Phillip J. Caraballo and Jeffrey St John prosecuted the case.

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Department of Justice Press Releases

Four Defendants Charged With Federal Drug or Firearm Violations in Probe Centered on North Suburbs of Chicago

by Press Release August 6, 2021
By Press Release

CHICAGO — A joint federal and local criminal investigation in the far north suburbs of Chicago has resulted in federal drug or firearm charges against four individuals.

The alleged drug trafficking and illegal firearm possession occurred last winter in Waukegan and Beach Park, according to indictments unsealed this week in U.S. District Court in Chicago.  According to the charges, ROBERT SPURLOCK, 36, of Beach Park, distributed cocaine and illegally possessed a loaded handgun with an obliterated serial number; KURT NASH, JR., 34, of Milwaukee, Wisc., distributed cocaine on two occasions; RAFAEL ALVAREZ-MURILLO, 27, of Waukegan, distributed methamphetamine and illegally possessed a handgun; and JASON NAJERA-PRADO, 31, of Waukegan, illegally possessed two handguns.  Spurlock, Alvarez-Murillo, and Najera-Prado were previously convicted of felonies and were not lawfully allowed to possess firearms.

Spurlock, Nash, and Najera-Prado pleaded not guilty during arraignments Wednesday in federal court in Chicago.  Arraignment for Alvarez-Murillo will be scheduled at a later date.  Six other individuals were charged in state court as part of this investigation.

The federal indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and John Idleburg, Lake County Sheriff.  Assistant U.S. Attorneys Shawn McCarthy and Alejandro Ortega represent the government in the federal cases. 

This investigation is part of 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 that leverages the strengths of federal, state, and local law enforcement agencies.

The public is reminded that indictments contain only charges and are not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

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Department of Justice Press Releases

Corrupt Puerto Rico Police Officer Pleads Guilty To Murder And Racketeering

by Press Release August 6, 2021
By Press Release

Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that WILLIAM VAZQUEZ-BAEZ, a former member of the Puerto Rico Police Department (“PRPD”), pled guilty today in Manhattan federal court in connection with his years of corrupt assistance to a criminal enterprise known as La Organización de Narcotraficantes Unidos (“La ONU”), including his participation in the May 9, 2007, murder of Anthony Castro-Carrillo in Carolina, Puerto Rico.  U.S. District Judge Jesse M. Furman accepted the defendant’s guilty plea.

U.S. Attorney Audrey Strauss said: “William Vazquez-Baez perverted his official position for personal gain, and in so doing brought deadly violence into the homes of the very people he was sworn to protect.  Today’s plea represents a milestone in holding Vazquez-Baez responsible for the cold-blooded, murderous violence he wrought.”

According to the allegations in the Information and other filings and statements made in court:

From approximately 1994 until his arrest in connection with this case in May 2017, VAZQUEZ-BAEZ was an active police officer with the PRPD.  From in or about 2004 until in or about 2016, members of La ONU shipped thousands of kilograms of cocaine from Puerto Rico to New York, including cocaine that was then distributed out of a Bronx daycare center, and protected their territory and trade through numerous acts of violence.  Members of La ONU paid VAZQUEZ-BAEZ a salary to corruptly use his position as a police officer to further the interests of La ONU.  For example, VAZQUEZ-BAEZ provided narcotics and intelligence, including information obtained from the police narcotics unit.  Members of La ONU would also contact VAZQUEZ-BAEZ, among others, when transporting large quantities of cocaine within the San Juan, Puerto Rico, area to ensure the shipment avoided areas of police activity.  VAZQUEZ-BAEZ also distributed payments to other corrupt police officers who assisted La ONU.

VAZQUEZ-BAEZ also assisted La ONU in acts of violence:

In or about 2006 or 2007, VAZQUEZ-BAEZ alerted La ONU members that Freddy Mendez-Rivera, a local resident, had complained to police about drug dealing occurring in his neighborhood, which led to members of La ONU kidnapping and then killing Mendez-Rivera.  Around the same time, VAZQUEZ-BAEZ alerted a senior member of La ONU that the kidnapping was being reported over the police radio.  VAZQUEZ-BAEZ advised that, because the fact that Mendez-Rivera had spoken with the police was known throughout the Carolina Narcotics division, it was important that the body never be discovered.  When later updated about what had happened, VAZQUEZ-BAEZ laughed and remarked, in substance, that Mendez-Rivera would not be giving the police information any further.

On or about May 9, 2007, members of La ONU hired VAZQUEZ-BAEZ to participate in the murder of Anthony Castro-Carrillo in Carolina, Puerto Rico, in exchange for a cash bonus.  VAZQUEZ-BAEZ and members of La ONU stormed Castro-Carrillo’s residence while dressed as police officers and shot and killed him.

In or about 2007, VAZQUEZ-BAEZ delivered a confidential informant, who was in VAZQUEZ-BAEZ’s custody, to members of La ONU, who pretended to be other police officers. Those members of La ONU then shot and killed the informant.           

*                *                *

VAZQUEZ-BAEZ, 52, pled guilty to one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d), which carries a maximum penalty of 20 years in prison, and one count of conspiracy to commit murder for hire, in violation of 18 U.S.C. § 1958, which carries a maximum penalty of 10 years in prison.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

VAZQUEZ-BAEZ is scheduled to be sentenced before Judge Furman on December 2, 2021, at 3:00 p.m.

Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New York City Police Department.  Ms. Strauss also thanked the United States Attorney’s Office in the District of Puerto Rico and the Puerto Rico Police Department for their support in this ongoing investigation. 

The prosecution is being handled by the Office’s Violent and Organized Crime Unit.   Assistant U.S. Attorneys Lara Pomerantz, Justin Rodriguez, and Andrew Thomas are in charge of the prosecution.

This Office was one of the districts affected by the SolarWinds intrusion.

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Department of Justice Press Releases

Lycoming County Man Charged With Filing False Tax Returns

by Press Release August 6, 2021
By Press Release

WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 3, 2021, Joseph Rinker, age 51, of Jersey Shore, Pennsylvania, was charged by criminal information with one-count of filing false tax returns.

According to Acting United States Attorney Bruce D. Brandler, the information alleges that Rinker, a co-owner of Harvest Moon restaurant, convenience store, and gas station in Williamsport, Pennsylvania. failed to report income in years 2014 through 2017 after embezzling over $300,000 in funds from the Harvest Moon. The total estimated tax loss is $64,250. 

The case was investigated by the Internal Revenue Service’s Criminal Investigations Division.  Assistant U.S. Attorney Alisan V. Martin is prosecuting the case.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law for the offense charged is three years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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Department of Justice Press Releases

Former Tangipahoa Parish Sheriff’s Office Employee Sentenced for Role in Bribery Scheme

by Press Release August 6, 2021
By Press Release

EVANS pleaded guilty in March 2021.  According to court records, at the time of the offense, EVANS was employed by the Tangipahoa Parish Sheriff’s Office as a Criminal Records Division Supervisor.  From January 2016 through January 2017, EVANS, along with a co-defendant, Shawanda Dove, used cell phones to carry out a bribery scheme, in violation of 18 U.S.C. §§ 1952(a)(3) and 2.  EVANS solicited and accepted bribe money from Dove in exchange for fraudulent bonds used for the release of incarcerated persons.

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Department of Justice Press Releases

Two Arkansas Men Plead Guilty to Damaging Historic Mines in Buffalo National River

by Press Release August 6, 2021
By Press Release

FORT SMITH, Ark.—Two men pleaded guilty last week to felony violations of the Archaeological Resources Protection Act, in connection with their illegal excavations of archaeological sites in the Historic Rush Mining District of Buffalo National River, and the sale of stolen geological and mineral specimens at a store in Alpena. U.S. District Judge P.K. Holmes III presided over the July 27 change-of-plea hearings, in which Nathan Bradford LeMay, 35, of Hot Springs Village, and Justin Charles Baird, 32, of Hot Springs, each pleaded guilty to the first count of the three-count indictment in which both were named.

According to court documents, on multiple occasions in 2015 and 2016, LeMay and Baird traveled to the Historic Rush Mining District, in Marion County, Arkansas, to dig for mineral and geological specimens to sell at LeMay’s business, Alpena Crystals. The pair’s plans went awry on Feb. 14, 2016, when a U.S. Park Ranger observed them camped in Buffalo National River, which is a United States National Park.

Noticing evidence of their excavations, the Ranger obtained consent to search their campsite and vehicles, recovering digging tools and containers of geological specimens. Two days later, officers were sent to several mines in the area to assess whether or not they had been entered. The Monte Cristo Mine, a gated, locked and controlled mine along Clabber Creek, was observed to have been broken into. Trash, water bottles and other items were located both just inside and outside this mine. On the Rush Creek side of the same mountain, drag marks in high grass, from the Morning Star/Ben Carney Mine, down to Rush Creek and the parking lot, indicated large heavy objects had been dragged down the mountain to the parking area.

A subsequent investigation by the National Park Service, assisted by local law enforcement and the Carroll County Prosecuting Attorney’s Office, established the full extent of the pair’s illegal excavations. LeMay and Baird had excavated and damaged 22 areas within those mines, removing mineral and geological materials, and damaging the historic sites—which add to the knowledge of the mining community in the Ozarks as the industry transitioned from crude mining techniques to modern methods.  Dr. Caven Clark, an archaeologist with the National Park Service, now retired, conducted a resource damage assessment, determining that the cost of restoration and repair to the site was approximately $22,241.

Both men were indicted by a federal grand jury in March 2020. In addition to violation of the Archaeological Resources Protection Act, which prohibits excavating, damaging, altering and defacing archaeological sites and resources, both men were also charged with theft of U.S. property and damage to government property. On February 10, 2021, LeMay was arrested at his residence, in Hot Springs Village, and was later released on a cash bond pending trial. Baird self-surrendered to authorities and was arraigned on April 16, 2021. Before they announced their intentions to plead guilty, the case had been scheduled to be tried beginning on July 26.

As a result of their guilty pleas both LeMay and Baird face up to two years in prison and fines of up to $250,000. Additionally, both men have agreed to pay $22,241 in restitution as a shared obligation. The court will determine their sentences at a later date, after reviewing pre-sentence investigation reports prepared by the U.S. Probation Office, and considering the U.S. Sentencing Guidelines and other statutory factors.

Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

The case was investigated by special agents of National Park Service, Investigative Services Branch, and U.S. Park Rangers at Buffalo National River, with the assistance of the Boone County, Ark. Sheriff’s Office, Eureka Springs Police Department, and the Carroll County Prosecuting Attorney’s Office.

Assistant U.S. Attorney Steven Mohlhenrich prosecuted the case for the United States.

The Historic Rush Mining District

Located within the Buffalo National River is a designated historical district known as the Historic Rush Mining District, a 1316-acre former zinc mining district located on the lower Buffalo River and two of its tributaries, Rush Creek and Clabber Creek. It is a remnant industrial landscape with the remains of both open-pit and underground zinc mines, processing facilities, and worker housing. Waste rock piles form a dominant feature of the landscape. Within this district, are dozens of historic and archaeological sites and mines, including the Monte Cristo, Ben Carney, and Morning Star mines. The Rush Historic District buildings and structures, through isolation, have retained their historic design features and use and convey the sense of a turn-of-the century mining operation and Ozarks community. The ruins and archaeological sites fill in the community layout and add to the knowledge of historic mining techniques and mining community construction; they retain and contribute to the feeling of the widespread activity of this once bustling Ozarks mining community. The Rush Historic District portrays the story of the zinc mining industry in the Ozarks as the industry moved from crude mining techniques to modern methods.

The Archaeological Resources Protection Act

The National Park Service wishes to remind the public that all public lands are protected by federal law and regulation. In 1979, the Congress found that archaeological resources on public and Indian lands are an irreplaceable part of the Nation’s heritage. The Archaeological Resources Protection Act of 1979 makes it a violation of federal law to excavate, remove, damage, or otherwise alter or deface any archaeological resource located on public (federal) or Indian (Native American) lands, or attempt to do so. If convicted of a felony, penalties include up to two years imprisonment and a fine of up to $250,000. Subsequent violations are punishable by up to five years imprisonment.

 

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Department of Justice Press Releases

Boone County Man Sentenced to Five Years in Prison for Distributing Heroin and Fentanyl

by Press Release August 6, 2021
By Press Release

CHARLESTON, W.Va. – A Boone County man was sentenced today to 60 months in federal prison for distributing opioids. The five-year sentence was a significant upward departure from the U.S. Sentencing Guideline Range. 

According to court documents and statements made in court, John Massey II, 40, of Seth, sold heroin to a confidential informant in Boone County in January and October 2018. On October 19, 2018, Massey possessed a mixture of heroin and fentanyl at his Seth residence, which Massey admitted he intended to distribute.

At sentencing, the United States sought an upward variance from the Court based largely on Massey’s role in perpetuating the opioid crisis as a dealer, his persistent drug dealing activity while out on bond and his relevant conduct wherein he distributed a particularly potent batch of fentanyl to buyers on December 23, 2017, that resulted in multiple drug overdoses in Boone County, one of which resulted in an overdose death. After hearing the testimony of several witnesses and receiving evidence, including testimony from the Chief Medical Examiner for the State of West Virginia and a paramedic, the Court determined that a “substantial upward variance” from Massey’s original sentencing range of six to twelve months addressed the serious nature of the offense and relevant conduct.

Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the U.S. 119 Drug and Violent Crimes Task Force.

Senior United States District Judge John T. Copenhaver Jr. imposed the sentence.  Assistant United States Attorneys Kristin F. Scott and John File 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. 2:18-cr-00268.

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Department of Justice Press Releases

Eleven Methamphetamine Traffickers Are Sentenced To Prison

by Press Release August 6, 2021
By Press Release

 CHARLOTTE, N.C. – Eleven members of a methamphetamine trafficking ring have been ordered to serve prison sentences ranging from 36 months to 210 months for federal drug conspiracy charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.

According to filed court documents and court proceedings, from 2018 to April 2019, the co-defendants were involved in a drug conspiracy that trafficked and distributed methamphetamine in Catawba, Lincoln, Caldwell, and Alexander Counties and elsewhere in Western North Carolina. Over the course of the multi-agency investigation, law enforcement seized at least 23 firearms, and more than $250,000 in drug proceeds.

The 11 defendants, each of whom previously pleaded guilty conspiracy to distribute and to possess with intent to distribute methamphetamine, were sentenced by U.S. District Judge Kenneth D. Bell on Wednesday, August 4, and Thursday, August 5, 2021, as follows: 

Three other members of the conspiracy have pleaded guilty for their participation in the drug conspiracy. James Kristoffer Cantley, Jonathan Corey Daniel, and Michael James Notheisen, have pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine. Cantley and Notheisen have also each pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime. A sentencing date for Cantley, Daniel and Notheisen has not been set.

In making today’s announcement Acting U.S. Attorney Stetzer thanked the following agencies for their investigative efforts: the DEA in Charlotte, Asheville, and Atlanta; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; the Catawba County Sheriff’s Office; the Newton Police Department; the Conover Police Department; the Maiden Police Department; the Hickory Police Department; the Longview Police Department; the Caldwell County Sheriff’s Office; the Granite Falls Police Department; the Lincoln County Sheriff’s Office; the Cleveland County Sheriff’s Office; the Huntersville Police Department; the Cornelius Police Department; the Mint Hill Police Department; the Pineville Police Department; the Charlotte Mecklenburg Police Department; the Monroe Police Department; the Taylorsville Police Department; the Gaston County Police Department; the Georgia Highway Patrol; the Franklin County Sheriff’s Office in Georgia; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Clayton County Sheriff’s Office in Georgia; and the Commerce Police Department in Georgia.

Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.                                                      

 

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Department of Justice Press Releases

Justice Department Reaches Agreement with the State of New Jersey under the National Voter Registration Act

by Press Release August 6, 2021
By Press Release

The Justice Department announced today that it has entered into a proposed consent decree to settle a voting rights lawsuit with the State of New Jersey and state officials.

The Justice Department’s lawsuit, brought under Section 7 of the National Voter Registration Act (NVRA), challenges the failure of disability transportation programs in the State of New Jersey — including NJ Transit Access Link and county-based Community Transportation programs — to provide voter registration opportunities to their customers. 

The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The department’s complaint alleges that the State of New Jersey failed to designate offices in the State that provide paratransit and other state-funded disability transportation services as voter registration agencies. Under the NVRA, these offices must distribute a voter registration application to each person who applies for their services, and along with each recertification, renewal or change of address form relating to such services, unless the person involved declines in writing to register to vote. They must also assist applicants in completing voter registration applications, and they must accept completed voter registration applications for transmittal to appropriate state election officials. However, NJ Transit Access Link and Community Transportation programs have not been providing the voter registration opportunities guaranteed by the NVRA. 

“Part of our ongoing effort to ensure access to the ballot includes ensuring that social service and disability agencies are providing registration opportunities as required under federal law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The National Voter Registration Act is a vital tool to ensure that citizens with disabilities have convenient and accessible opportunities to register to vote. It is critical that all citizens have unfettered access to voter registration opportunities. I am pleased that the State of New Jersey has worked with the Department of Justice to help ensure that citizens with disabilities will have broad access to the voter registration opportunities that federal law guarantees.”

“The right to vote is a constitutional principle that forms a cornerstone of our democracy,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “The National Voter Registration Act enhances citizens’ access to that democratic process by increasing voter registration opportunities. We appreciate that the State of New Jersey has worked with us to ensure that all New Jersey residents, including those with disabilities, enjoy convenient opportunities to register to vote.”

The department gave notice to the State of New Jersey of its intent to bring suit under the National Voter Registration Act on March 11, 2021, and the parties worked collaboratively to achieve this agreement.  Under the parties’ consent decree — and subject to approval by the federal district court in New Jersey — New Jersey will designate NJ Transit Access Link and Community Transportation as voter registration agencies. New Jersey will also conduct robust implementation and oversight efforts and will afford supplemental voter registration opportunities to existing Access Link clients. 

More information about the National Voter Registration Act and other federal voting rights laws is available on the Department of Justice website at https:www.justice.gov/crt/voting-section. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. 

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Department of Justice Press Releases

Ascension Michigan to Pay $2.8 Million to Resolve False Claims Act Allegations

by Press Release August 6, 2021
By Press Release

WASHINGTON – Ascension Michigan and related hospitals, Providence Park Hospital, St. John Hospital and Medical Center, St. John Macomb Oakland Hospital and Ascension Crittenton Hospital (collectively, Ascension Michigan), all located in Michigan, have agreed to pay $2.8 million to resolve claims that they violated the False Claims Act by submitting or causing the submission of false claims for payment to federal health care programs related to alleged medically unnecessary procedures performed by a gynecologic oncologist (the “Doctor”).


“When hospitals receive payment from federal health care programs for medically unnecessary surgical procedures, they cannot simply retain those payments; they have an obligation to return them,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will continue to ensure that taxpayer funds are used appropriately for the important programs that they support.”


The settlement announced today resolves allegations that, from Feb. 1, 2011, through June 30, 2017, Ascension Michigan knowingly submitted false claims for payment to federal health care programs and improperly retained payment for professional and facility fees related to medically unnecessary radical hysterectomies that the Doctor performed, chemotherapy services that the Doctor administered or ordered that were not medically necessary, and evaluation and management services by the Doctor that were not performed or not rendered as represented. The government alleged that Ascension Michigan had concerns about the quality of care provided by the Doctor due to patient complaints and his suspected higher than average rates of pulmonary embolisms and surgical infections. The government further alleged that, as a result of these concerns, Ascension Michigan engaged a third-party doctor to conduct a peer review of a sample of the Doctor’s patients, which found that, for the majority of the radical hysterectomies and chemotherapy performed by the Doctor, a less aggressive surgery or medical intervention would have been the standard of care.


“Health care providers cannot avoid their obligation to repay government funds owed to federal health care programs,” said Acting U.S. Attorney Saima Mohsin for the Eastern District of Michigan. “We will vigorously pursue those who knowingly fail to repay monies they have received based on services which were not medically necessary or not rendered as billed.”


On June 28, 2018, Ascension Michigan made a submission under the Provider Self-Disclosure Protocol of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) related to professional and facility fees it billed to federal health care programs for services provided by the Doctor. Though Ascension Michigan initially improperly retained the monies that it collected related to its billings, Ascension Michigan cooperated in the government’s investigation and took active steps to address concerns related to the Doctor by: (i) engaging a third-party doctor


to conduct the peer review; (ii) placing the Doctor on a performance improvement plan; (iii) ending its contractual relationship with the Doctor; and (iv) submitting the self-disclosure.


“Our agency will continue to hold accountable medical providers who perform medically unnecessary procedures and then inappropriately bill federal health care programs,” said Special Agent in Charge Lamont Pugh III of HHS-OIG. “Working with our law enforcement partners, we will continue to investigate such misconduct to protect beneficiaries and the taxpayer-funded health care programs serving those beneficiaries.”


The civil settlement includes the resolution of claims brought by Pamela Satchwell, Dawn Kasdorf and Bethany Silva-Gomez under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Satchwell v. Ascension Health, No. 17-CV-12315 (E.D. Mich.). Relators will receive a combined payment in the amount $532,000.


The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG and the U.S. Defense Health Agency, Office of Program Integrity.


The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).


The matter was investigated by Trial Attorney Denise Barnes of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Carolyn Bell-Harbin of the U.S. Attorney’s Office for the Eastern District of Michigan.

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Department of Justice Press ReleasesNew Jersey News

Sussex County Man Admits Unlawfully Possessing Weapons, Marijuana

by Press Release August 6, 2021
By Press Release

NEWARK, N.J. – A Sussex county man appeared in court today on charges that he possessed an arsenal of weapons, ammunition, and marijuana, Acting U.S. Attorney Rachael A. Honig announced.

Joseph Rubino, 59, of Lafayette Township, New Jersey, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of possession of marijuana with intent to distribute and one count of possession of firearms and ammunition by a convicted felon.

According to documents filed in this case and statements made in court:

On July 24, 2019, following a motor vehicle accident, officers with the New Jersey State Police observed numerous weapons and ammunition inside Rubino’s crashed vehicle. After executing court-authorized search warrants on Rubino’s vehicle and residence, law enforcement recovered an arsenal of weapons and ammunition from Rubino’s car and house, including:

 

In addition to the firearms and ammunition, law enforcement recovered approximately 2.5 kilograms of marijuana from Rubino’s house.

The count of possession of marijuana with the intent to distribute carries a maximum potential penalty of five years in prison and fine of up to $250,000, or twice the gross profits or other proceeds to the defendant, whichever is greatest. The count of possession of firearms and ammunition by a convicted felon is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross profit or pecuniary loss, whichever is greatest. Sentencing is scheduled for Dec. 14, 2021.

Acting U.S. Attorney Honig credited the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, with the investigation leading to today’s guilty plea. She also thanked the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, and the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch for their assistance.

The government is represented by Assistant U.S. Attorney Naazneen Khan of the Organized Crime and Gangs Unit in Newark.

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Department of Justice Press Releases

Maryland Woman Sentenced to 30 Months in Prison for Embezzling Money from Law Firm

by Press Release August 6, 2021
By Press Release

            WASHINGTON – Katherine Emma Ross, 30, of Millersville, Md., formerly of Washington, D.C., was sentenced today to 30 months in prison for embezzling hundreds of thousands of dollars from a D.C. law firm.

            The sentencing was announced by Acting U.S. Attorney Channing D. Phillips, Matthew R. Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).

            Ross was employed by the law firm as an hourly employee in a non-lawyer capacity. Without permission of the firm or its owner, she wrote checks to herself in amounts that she was not owed, forged signatures on those checks, and cashed the checks at bank branches in the District of Columbia, Virginia, and Maryland. From as early as August 2016 and continuing through the summer of 2020, she carried out a scheme in which she stole at least $320,000 from the firm and its owner.

            Ross pled guilty in April 2021 to one count of bank fraud in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Reggie B. Walton. Following her prison term, Ross will be placed on five years of supervised release. The judge also ordered Ross to pay $320,000 in restitution and forfeiture.

            In announcing the sentencing, Acting U.S. Attorney Phillips, Special Agent in Charge Stohler, and Chief Contee commended the work of those who investigated the case from the Secret Service’s Washington Field Office and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Michon Tart, Forensic Accountant Bryan Snitselaar, and Assistant U.S. Attorney Kondi Kleinman, who prosecuted the matter.

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Department of Justice Press Releases

Jessup Correctional Institution Inmate Sentenced to More Than Five Years in Federal Prison for Racketeering Conspiracy Within Maximum Security Prison

by Press Release August 6, 2021
By Press Release

Baltimore, Maryland – U.S. District Judge Theodore D. Chuang sentenced Darnell Smith, a/k/a “Hook”, age 41, of Baltimore, Maryland to five years and three months in federal prison, to be served consecutive to Smith’s current state sentence, followed by three years of supervised release, for a racketeering conspiracy at the Jessup Correctional Institution (JCI).  The conspiracy included former correctional officers, inmates, and outside “facilitators” who paid bribes to correctional officers to smuggle contraband, including narcotics, alcohol, tobacco, and cell phones into the prison. 

The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.

According to his plea agreement, between 2017 and the time of his arrest in 2020, Smith was an inmate at the Jessup Correctional Institution (JCI), a maximum-security prison located near Jessup, Maryland. While imprisoned at JCI, Smith agreed with others to participate in the conduct of JCI’s affairs through a pattern of racketeering activity.  The racketeering acts at the center of this conspiracy were the distribution of controlled substances, bribery, and money laundering. 

Specifically, while an inmate at JCI, Smith conspired with JCI Correctional Officer (CO) Chanel Pierce, outside facilitator Chaz Chriscore, the mother of his children (co-defendant Satya Hall) and others to smuggle controlled substances and other contraband items into JCI. Smith also distributed the controlled substances to other inmates. As part of the endeavor, Smith engaged in a romantic relationship with CO Pierce and bribed her to collect, package, and smuggle contraband into JCI. CO Pierce, Chriscoe, and Hall were all charged alongside Smith in this 15-defendant indictment. 

As stated in his plea agreement, Smith possessed a contraband cell phone, which enabled him to communicate with CO Pierce, Hall, and Chriscoe to further the smuggling operation.  Smith used the contraband phone to discuss the types and quantities of controlled substances that were to be smuggled into JCI, facilitate the distribution of drugs within JCI, and coordinate bribe payments that were being made to CO Pierce. Smith also used the cell phone to carry out his romantic relationship with CO Pierce. 

On the morning of May 25, 2019, Chriscoe met CO Pierce at her home and provided her with several balloons filled with controlled substances to smuggle into JCI.  CO Pierce then went to work and was stopped by law enforcement as she entered the facility and searched.  Law enforcement recovered from CO Pierce’s person multiple packages containing contraband, including a balloon filled with Suboxone.  A subsequent search of CO Pierce’s home revealed several more balloons filled with contraband that she intended for Smith and others to smuggle into JCI.

A total of nine defendants, including Smith, Chriscoe, former CO Pierce, and Hall, have pleaded guilty to their roles in the racketeering conspiracy.  Six defendants are still facing charges.  Former CO Chanel Pierce, age 28, of Pikesville, Maryland, pleaded guilty to the racketeering conspiracy and is awaiting sentencing.  Co-defendant inmates Page Boyd, age 37, and Marshall Hill, a/k/a “Boosie,” age 29, pleaded guilty to their roles in the racketeering conspiracy and were each sentenced to four years in federal prison.  Co-defendant facilitators Sataya Hall, age 38, of Baltimore, and Trinesse Butts, age 37, of Parkville, Maryland also pleaded guilty to the racketeering conspiracy and were sentenced to six months in federal prison and a year and a day in federal prison, respectively. 

At sentencing, Judge Chuang ordered that Smith’s federal sentence be served consecutive to Smith’s state sentence, of which several years remain. 

This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Acting United States Attorney Jonathan F. Lenzner expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the JCI investigation and have been full partners in this investigation.  Mr. Lenzner also commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation.  Mr. Lenzner thanked Assistant U.S. Attorneys Lauren E. Perry and Christopher M. Rigali, who prosecuted this case.

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Department of Justice Press Releases

Postal Worker Pleads Guilty to Mail Theft

by Press Release August 6, 2021
By Press Release

BOSTON – A former U.S. Postal Service mail carrier pleaded guilty today in federal court in Boston to stealing mail containing gift cards.

Brian Thibodeau, 48, pleaded guilty to one count of theft of mail by an employee of the U.S. Postal Service. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 13, 2021. Thibodeau was indicted on Feb. 10, 2021.

Beginning in 2001, Thibodeau worked as a letter carrier in the Saugus Post Office. In 2020, Thibodeau stole customers’ gift cards sent in the mail and spent them for his personal use. Thibodeau admitted to stealing approximately $2,000 worth of gift cards from postal customers on his route. 

The charging statute provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater; and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Joshua McCallister, Acting Inspector in Charge of the United States Postal Service Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.

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Department of Justice Press Releases

Laconia Man Pleads Guilty to Conspiracy to Tamper with a Witness

by Press Release August 6, 2021
By Press Release

            CONCORD – James Flanders, 42, of Laconia, pleaded guilty on Tuesday in federal court to conspiracy to tamper with a witness, Acting United States Attorney John J. Farley announced today.

             According to court documents and statements made in court, between July 29 and August 9, 2019, an acquaintance (JL) of Flanders who was incarcerated on drug and firearm charges, contacted Flanders to assist him in persuading a witness in his matter to lie to law enforcement about the possession of a firearm that he was charged with possessing at the time of his arrest.  On September 23, 2019, Flanders texted the witness expressing frustration at the witness’ lack of communication.  Flanders threatened “I’m gonna start showing up on your doorstep” and that “our friend doesn’t have all the time in the world until court, he needs his defense in order now.”

            Flanders is scheduled to be sentenced on November 22, 2021.  

            “Protecting the integrity of the judicial process is vital for the operation of our legal system,” said Acting U.S. Attorney Farley.  “Those who seek to tamper with witnesses or obstruct justice will be held responsible for their criminal conduct.”

            This matter was investigated by the Drug Enforcement Administration with assistance from the Laconia Police Department and the Belknap County Sheriff’s Drug Task Force.  The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.

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Department of Justice Press Releases

Parkersburg Man With Multiple Felony Convictions Sentenced to Nine Years in Prison for Possession of Firearms

by Press Release August 6, 2021
By Press Release

CHARLESTON, W.Va. – A Parkersburg man with three previous felony convictions was sentenced to 108 months in federal prison today for being a felon in possession of firearms.

According to the plea agreement and statements made in court, Casey Douglas Saunders, 30, possessed three semi-automatic pistols and one semi-automatic rifle at his residence on Camden Avenue in Parkersburg on May 14, 2020.  The firearms were located by law enforcement officers who entered the residence to arrest Saunders on an outstanding warrant for violating his parole.  Saunders had absconded from parole that he was serving for previous felony convictions in Wood County Circuit Court for burglary, delivery of a controlled substance and escape.  Saunders’ escape conviction resulted from him stealing and then fleeing in a police officer’s vehicle when the officer attempted to arrest him on an outstanding warrant. Saunders is prohibited from possessing firearms due to his previous convictions.

Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Parkersburg Violent Crimes and Narcotics Task Force, the United States Marshals Service (USMS), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Parkersburg Police Department.

United States District Judge Irene C. Berger imposed the sentence.  Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.

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-00014.

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Department of Justice Press Releases

Gas Station Manager Arrested and Charged with Billing Fraudulent Fuel Charges on Amtrak Vehicles

by Press Release August 6, 2021
By Press Release

NEWARK, N.J. – A New Jersey gas station manager was charged today in connection with entering fraudulent charges on fuel credit cards assigned to at least four Amtrak vehicles, Acting U.S. Attorney Rachael A. Honig announced.

Umer Hassan Mir, 39, of South Amboy, is charged by complaint with knowingly and intentionally stealing and converting to his own use approximately $9,600 in money of a department or agency of the United States. He is also charged with making false statements to federal law enforcement. Mir appeared by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was released on $20,000.   

According to the complaint:

From July 29, 2019, through Aug. 3, 2021, while working as a manager and attendant at a Delta gas station, in Metuchen, New Jersey, Mir caused numerous fraudulent fuel charges to be entered on fuel credit cards leased by the General Services Administration (GSA) and assigned to Amtrak vehicles. Amtrak employees using GSA vehicles are instructed to purchase regular unleaded fuel and provide accurate odometer readings when they are fueling their assigned vehicles with their fuel credit cards. The fraud was initially discovered when a GSA loss prevention technician discovered dozens of fuel credit card charges that exceeded the associated Amtrak vehicle’s fuel tank capacity, along with premium fuel transactions, and non-sequential odometer entries. Additional fuel credit cards assigned to Amtrak vehicles were discovered to have been compromised by fraudulent fuel charges at the Delta gas station.

The fraudulent charges were entered at the Delta gas station by Mir, who would manually enter information regarding fuel credit cards collected during legitimate fuel transactions electronically into the point-of-sale terminal. Immediately following certain false fuel transactions, Mir withdrew cash in the amount of the fraudulent transaction from the gas station’s cash register.

Mir made false statements to law enforcement when questioned about his presence at the gas station during one of the recent fraudulent transactions.

The theft charge carries a maximum potential penalty of 10 years in prison while the false statement charge carries a maximum potential penalty of five years. Each charge carries a maximum $250,000 fine.

Acting U.S. Attorney Honig credited special agents of the Amtrak, Office of Inspector General, Eastern Region, under the direction of Special Agent in Charge Michael J. Waters; the General Services Administration, Office of Inspector General, Northeast Field Investigations Division, under the direction of Special Agent in Charge Joseph Dattoria; and inspectors with the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Rodney M. Hopkins, with the investigation leading to the charges. She also thanked the Metuchen Police Department, under the direction of Chief of Police David Irizarry, for its assistance.

The government is represented by Senior Trial Counsel Leslie Faye Schwartz, of the U.S. Attorneys’ Special Prosecutions Division and Assistant U.S. Attorney Cari Fais, Chief of the Opioid Abuse Prevention and Enforcement Unit.

The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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Department of Justice Press Releases

Billings man admits cocaine trafficking, promoting prostitution crimes

by Press Release August 6, 2021
By Press Release

BILLINGS – A Billings man accused of trafficking cocaine and promoting prostitution in the community by setting up a commercial sex date for an individual admitted charges today, Acting U.S. Attorney Leif M. Johnson said.

Anthony Marcos Chadwell, 27, pleaded guilty to a superseding information charging him with conspiracy to possess with intent to distribute cocaine and with use of a facility in interstate commerce in aid of racketeering. Chadwell faces a maximum 20 years in prison, a $1 million fine and three years of supervised release.

U.S. District Judge Susan P. Watters presided. Judge Watters set sentencing for Dec. 16. Chadwell was detained.

The government alleged in court documents that in 2019, Chadwell became involved in a cocaine trafficking conspiracy and distributed cocaine in Billings and elsewhere. In early 2019, Chadwell was introduced to an individual, identified as Jane Doe 11. At some point Doe 11 began engaging in commercial sex with Chadwell’s assistance. Chadwell used his cellular phone to set up a commercial sex date for Doe 11 at a Billings motel in which Doe 11 engaged in a sex act in exchange for money.

Assistant U.S. Attorneys Zeno B. Baucus and Bryan T. Dake are prosecuting the case, which was investigated by the FBI.

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Department of Justice Press Releases

Tennessee Department of Human Services Agrees to Pay $6,854,416 to Resolve False Claims Act Liability in Connection With Snap Quality Control

by Press Release August 6, 2021
By Press Release

The Tennessee Department of Human Services (TDHS) has agreed to pay the United States $6,854,416 to resolve allegations that it violated the False Claims Act in its administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today. Until 2008, SNAP was known as the Food Stamp Program.

“The money allocated by Congress for the SNAP program funds critical USDA’s efforts to help families in need,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to protect public funds to ensure that they are used for their intended purposes.”

It is disheartening that Tennessee’s Department of Human Services, and so many other states’ agencies entrusted with feeding and caring for vulnerable and needy residents, would manipulate SNAP quality control data for their financial benefit,” said Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington. “I am encouraged that Tennessee has acknowledged and corrected its conduct, cooperated with this investigation, and resolved its liability. I want to especially commend the outstanding work by the USDA’s Office of Inspector General’s special agents and auditors that enabled the United States to recover over $67 million in wrongfully obtained funds. This nationwide investigation and series of settlements demonstrate our office’s commitment to working with our law enforcement partners to ensure that that those who abuse SNAP and other critical government programs will be held fully accountable.”

Under SNAP, USDA provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.

Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. The USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.

The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. It also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.

The settlement resolves allegations that beginning in late 2012, TDHS contracted with a consultant known as Julie Osnes Consulting, LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by TDHS, injected bias into TDHS’s quality control process and resulted in TDHS submitting false quality control data and information to USDA, for which it received performance bonuses for fiscal years 2013 and 2014 to which it was not entitled.

This is the ninth settlement in this matter, and the eighth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Texas, Virginia, Wisconsin, Mississippi, Louisiana, Alaska, and Florida, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered more than $67 million in connection with this investigation.

“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this long-term, multi-state investigation,” said Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the government’s commitment to work across agency lines to protect the integrity of SNAP.”

The settlement was the result of a joint nationwide investigation conducted by the USDA OIG, the U.S. Attorney’s Office for the Eastern District of Washington, and the Department of Justice’s Civil Division, Commercial Litigation Branch, with the assistance of USDA-OIG-Audit based on the results of their nationwide audit of SNAP QC processes. The United States was represented by Assistant U.S. Attorneys Dan Fruchter and Tyler Tornabene of the Eastern District of Washington and by Don Williamson, Senior Trial Counsel of the Fraud Section of the Department of Justice, Civil Division, Commercial Litigation Branch.

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

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Tennessee Department of Human Services Agrees to Pay $6,854,416 to Resolve False Claims Act Liability in Connection With Snap Quality Control​ IC Operational Plan

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