SCRANTON - The United States Attorney's Office for the Middle District of Pennsylvania announced today that Joy Dykes, age 36, of Edwardsville, Pennsylvania was charged on June 26, 2018, in a criminal information for her participation in a money laundering scheme.

According to United States Attorney David J. Freed, the criminal information alleges that between November 2011 and February 2016, Dykes’ was involved in an on-line scheme to defraud an unsuspecting victim of money by creating multiple identities, luring the victim into a romantic relationship, and then soliciting money from the victim via threats and coercion, including the creation of a fraudulent identity of an FBI agent.  The criminal information also alleges that Dykes unlawfully received approximately $124,000 from the victim of the fraud.

The case was investigated by the Internal Revenue Service, Criminal Investigation - Scranton.  Assistant United States Attorney Michelle Olshefski is prosecuting the case.

Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

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

The maximum penalty for the charge under the federal statutes is imprisonment for 20 years, 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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DUBLIN, GA: Federal indictments were unsealed today against 7 Dublin residents charged with federal firearms, drug distribution, and related offenses.  The charges are the result of joint federal, state, and local efforts to reduce violent crime and drug activities in the Dublin area. 

Increases in violence and drug activity in Dublin has become of serious concern to law enforcement and local residents alike.

To address the apparent increase in violent crime and drug activities, the Dublin Police Department (DPD) and the Federal Bureau of Investigation (FBI), began a joint investigation to identify and arrest the criminals operating in and around Dublin. Law enforcement used a number of investigative techniques to identify the targets, including undercover purchases of drugs and firearms and extensive surveillance. 

In early June 2018, the federal grand jury for the Southern District of Georgia indicted 7 defendants identified as a result of this investigation.  Those indictments initially were returned under seal. 

On June 27, 2018, local, state, and federal law enforcement officers executed arrests warrants.  Today, the indictments and federal warrants were unsealed, and all of the charged defendants made their initial appearance in federal court.

The federal charges and maximum penalties include:

• Felon in Possession of Firearm, 18 U.S.C. § 922(g)(1), which typically carries a maximum sentence of 10 years’ imprisonment.  However, if a defendant has three prior convictions for violent crimes or serious drug offenses, then the minimum sentence is 15 years’ imprisonment and the maximum sentence is life imprisonment.  

• Distribution of Controlled Substances, and Possession of Controlled Substances with Intent to Distribute, 21 U.S.C. § 841(a)(1), which typically carries a maximum sentence of 20 years’ imprisonment, but may carry increased minimum and maximum terms of imprisonment based on the quantity of controlled substances involved and the prior drug convictions of the defendant. 

• Carrying a Firearm During and in Relation To a Crime of Violence or Drug Trafficking Crime, 18 U.S.C. § 924(c), which carries a potential sentence of not less than 5 years’ imprisonment, and up to life imprisonment, consecutive to any other sentence imposed.

During the investigation, law enforcement investigators seized firearms and ammunition.  Some of the firearms seized during this investigation had previously been stolen. Additionally, investigators seized quantities of numerous controlled substances, including cocaine, crack cocaine, methamphetamine and marijuana. 

The Dublin residents charged with federal crimes include:

          Lamar Cook, age 34,

          Trevolis Coney, age 29,

          Shanetra Coney, age 26,

          Alexander Johnson, age 31,

          Aldrickus T. Cuyler, age 23,

          Michael D. Stephens, age 40,

          Octavia M. Stephens, age 42.

At least one of the defendants was in possession of gang related literature when arrested on the charges that are alleged in the pending federal indictment. 

United States Attorney Bobby L. Christine said, “In concert with the FBI, state and local law enforcement partners including the Dublin Police Department and District Attorney Craig Fraser of the Dublin Judicial Circuit, the United States Attorney’s Office for the Southern District of Georgia has today struck a blow at the heart of violent street level criminal activity on behalf of the law abiding citizens of the greater Dublin community. This will not be the last action taken on this front as we together make this district safer!” 

“We believe these arrests will have an immediate impact on the safety of the law abiding citizens of the Dublin community,” said J.C. Hacker, Acting Special Agent in Charge (A/SAC) of FBI Atlanta. “Let this also be a warning to anyone else who believes they are above the law that the FBI, U.S. Attorney’s Office and the Dublin Police Department will continue working together to bring violent offenders to justice, and hold them accountable to stiff federal laws.”

DPD Chief Tim Chatman, said, “This is only the beginning. We will continue to collaborate with the FBI and federal prosecutors to rid our streets of this kind of behavior, gangs, drugs, etc. We thank the FBI and federal prosecutors for assisting us in this matter. We owe it to our citizens to look for better ways to make our streets safer.”

United States Attorney Christine emphasized that an indictment or criminal complaint is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.

Attorney General Jeff Sessions previously announced a recommitment of the United States Department of Justice to Project Safe Neighborhoods (PSN), a program dedicated to bringing together federal, state, and local law enforcement to reduce violent crime and make neighborhoods safer for everyone.  The United States Attorney’s Office incorporated key components of the PSN strategy into the Dublin operation, including strong federal involvement, the cultivation of partnerships with local law enforcement and community stakeholders, targeted enforcement in those areas most affected by violent crime, and outreach efforts designed to prevent violent crime before it occurs.  

Today's indictments arose out of a joint investigation led by the FBI and the Dublin Police Department, with assistance from the Laurens County Sheriff's Office, the District Attorney's Office for the Dublin Judicial Circuit, and the Georgia Department of Corrections K-9 Unit.  Assistant United States Attorneys Patricia G. Rhodes, Henry W. Syms, and Tara M. Lyons are prosecuting these cases for the United States.

For any questions, please contact the U.S. Attorney’s Office at (912) 652-4422.

CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Gill Paul Beck, Sr., a longtime federal prosecutor with the U.S. Attorney’s Office for the Western District of North Carolina, was among the 23 North Carolina lawyers inducted into the North Carolina Lawyers Weekly Hall of Fame.  The ceremony for the Class of 2018 was held on June 26^th at the City Club in downtown Raleigh.  

Mr. Beck is an Assistant United States Attorney (AUSA) in Asheville, and currently serves as the Civil Chief of the Office’s Civil Division.  Prior to joining the Western District, Mr. Beck served as the Civil Chief for the U.S. Attorney’s Office in the Middle District of North Carolina. A 26-year federal prosecutor, Mr. Beck guides the handling of the Office’s civil caseload, including representing the United States and federal agencies in federal and state courts. AUSA Beck is a past recipient of the Attorney General’s Distinguished Service Award, the NC Lawyers Weekly Lawyer of the Year (2016), and the NC Bar Association’s Citizen-Lawyer Award. He was born and raised in Lenoir, North Carolina.

Mr. Beck served as the first Army Judge Advocate to command a two-star U.S. Army Reserve unit, and also commanded the Army Reserve Legal Command.  Over the course of his military career, Major General Beck has served the United States overseas, including in 2005 in Iraq, where he led a joint legal team prosecuting terrorists. During 2007, as an Associate Deputy General Counsel in the Office of General Counsel, Department of Defense, in the Pentagon, he provided legal advice on Iraq and Afghanistan issues in support of the surge in Iraq, and in 2008, he served as Executive Officer to the Army General Counsel, who was responsible for supervising Army attorneys throughout the world. From 2009-2011, he served as the Chief Judge (Individual Mobilization Augmentee) to the Army Court of Criminal Appeals. For his service, Major General Beck has been awarded the Bronze Star, the Legion of Merit, and numerous other awards.

Mr. Beck received his Bachelor’s Degree from Appalachian State University (Summa Cum Laude), his J.D. from Duke University School of Law (High Honors), and his Master’s Degree from the U.S. Army War College. 

Gulfport, Miss. – Kenneth Samuel Hernandez-Valdez a/k/a Kenneth Hernandez, 18, an illegal alien from Honduras, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 27 months in federal prison followed by two years of supervised release, for conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.

As a result of this felony conviction, Hernandez-Valdez will face Department of Homeland Security removal proceedings upon the completion of his prison sentence. Hernandez-Valdez pled guilty on April 3, 2018, to conspiracy to transport illegal aliens with the United States.

On January 30, 2018, two Hancock County Sheriff’s Deputies, working together but in separate patrol vehicles, conducted traffic stops of two Honda Pilot Sport Utility Vehicles (SUVs) that were traveling together. Hernandez-Valdez was the driver of one of the SUVs and Ever Anibal Silva-Escobar was the driver of the other SUV. The U.S. Border Patrol was contacted and arrived on the scene shortly thereafter.

Neither of the drivers had a valid driver’s license, and both were found to be in the United States illegally. Each vehicle contained eight passengers who also were found to be illegal aliens. The SUVs each contained a total of nine occupants even though each vehicle only had seat belts for eight occupants. All eighteen occupants of both vehicles were arrested and transported to the Border Patrol Station in Gulfport.

On April 12, 2018, Silva-Escobar pled guilty to conspiracy to transport illegal aliens within the United States. He is scheduled to be sentenced on July 17, 2018.

Four of the passengers in the SUVs have pled guilty to unlawful re-entry by an alien after deportation or removal: Pedro Lopez-Alvarez, a/k/a Pedro Alvarez-Baten, 21, an illegal alien from Guatemala; Silvano Doroteo Morales-Ventura, 23, an illegal alien from Mexico; Wilmer Antonio Rubi-Padilla, 25, an illegal alien from Honduras, and Yesica Paola Rojas-Baten, 19, an illegal alien from Guatemala.

Lopez-Alvarez, Morales-Ventura and Rubi-Padilla are scheduled to be sentenced on July 3, 2018, and Rojas-Baten is scheduled to be sentenced on August 2, 2018. Each of the four aliens who unlawfully returned after removal faces a maximum penalty of two years in prison and a $250,000 fine. All of the defendants will be subject to Department of Homeland Security removal proceedings upon the completion of their sentences.

The case was investigated by Homeland Security Investigations, the U.S. Border Patrol, and the Hancock County Sheriff’s Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.

WASHINGTON – Attorney General Jeff Sessions, Department of Health and Human Services (HHS) Secretary Alex M. Azar III and other law enforcement officials will hold a press conference THURSDAY, JUNE 28, 2018, at 10:30 a.m. EDT, to announce a nation-wide health care fraud and opioid enforcement action.  Attorney General Sessions and Secretary Azar will leave the press conference before conclusion. Questions may be answered by other law enforcement officials on stage following remarks. 
 
WHO:  Attorney General Jeff Sessions, Justice Department
Secretary Alex M. Azar, HHS
Deputy Director David L. Bowdich, FBI
Assistant Administrator John Martin, Drug Enforcement Administration
Inspector General Daniel R. Levinson, HHS
Acting Assistant Attorney General John P. Cronan,
Justice Department’s Criminal Division
Deputy Chief Eric Hylton, IRS-Criminal Investigation
Director Alec Alexander, Centers for Medicare and Medicaid Services Center for Program Integrity
Director Dermot F. O’Reilly, Defense Criminal Investigative Service
 
WHAT:          Announcement of significant law enforcement actions

WHEN:          THURSDAY, JUNE 28, 2018 10:30 a.m. EDT

WHERE:       Department of Justice
7th Floor Press Conference Room
950 Pennsylvania Avenue, NW
Washington, DC 20530       

                                                           
                        OPEN PRESS
LIVESTREAMED ON JUSTICE.GOV/LIVE-STREAM

NOTE: Please RSVP to press@usdoj.gov and Sarah Sutton at sarah.e.sutton@usdoj.gov.  All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials.  Media must enter the department at the visitor’s entrance on Constitution Avenue NW between 9th and 10th Streets. Media may begin arriving at 8:30 a.m. EDT and cameras must be pre-set by 9:15 a.m. EDT. Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007.

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DO NOT REPLY TO THIS MESSAGE.  IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.

David Marken Aikoriegie sentenced to 96 months for stealing firearms from area gun retailers

DES MOINES, Iowa – On June 27, 2018, David Marken Aikoriegie, age 23, of Des Moines, appeared before United States District Court Senior Judge Robert W. Pratt and was sentenced to 96 months in prison for three counts of stealing a firearm from a federal firearm licensee and unlawful sale of a stolen firearm, announced United States Attorney Marc Krickbaum. Aikoriegie was ordered to serve three years of supervised release to follow his prison term.

According to court documents, Aikoriegie admitted he stole three firearms from JLM Gun Shoppe in Urbandale on November 16, 2017; ten firearms from Rangemasters in Clive on December 2, 2017; and eleven firearms from Rangemasters on December 14, 2017. He also admitted to selling one of those stolen firearms to another person on December 16, 2017.

This investigation was conducted by the Clive Police Department; United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Des Moines Police Department; and Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as 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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

Larry Lazell Bolden admitted to distributing heroin involved in overdose deaths

DAVENPORT, IA – On Wednesday, June 27, 2018, Larry Lazell Bolden, age 50, of Davenport, appeared before United States Magistrate Judge Stephen B. Jackson, Jr. and pleaded guilty to Distribution of a Controlled Substance Resulting in Death announced United States Attorney Marc Krickbaum.

According to the plea agreement, Bolden admitted to distributing heroin to a confidential informant beginning in December 2016. Bolden also admitted to distributing heroin in January 2017 to an individual at a hotel in Davenport. That individual supplied the heroin to a friend, who died shortly after ingesting the substance. Lab results confirmed the substance contained fentanyl. Bolden admitted several days after the overdose death, he distributed heroin to an another individual at the same hotel. That person died shortly after ingesting the substance.

Sentencing is scheduled for October 23, 2018, at 10:00 a.m. before United States District Court Judge Stephanie M. Rose. Bolden faces a mandatory minimum term of imprisonment of twenty years, a maximum term of imprisonment of life, and a maximum fine of $2,000,000.

This matter was investigated by the Davenport, Rock Island, and Moline Police Departments. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

BOSTON – Two men were arrested today and charged in federal court in Boston in connection with illegally using the identity of another individual to apply for two business loans. 

Igor Mosieev, 59, of Newton, was indicted on two counts of bank fraud and one count of aggravated identity theft. Alexander Grinis, 47, of Jamaica Plain, was charged in the same indictment with one count of false statements on loan applications. Mosieev and Grinis were arrested this morning and will appear this afternoon in federal court in Boston.  

According to the indictment, Grinis was the manager of Eastern Bank in Auburndale. Among his responsibilities were assisting customers with opening and closing accounts and applying for loans and lines of credit. In approximately February 2015, Grinis assisted Mosieev in opening a checking and savings account at Eastern Bank with the license and Social Security card of another individual, without the knowledge or consent of that person. Later that year, Grinis assisted Mosieev in adding the individual to a business account in the name of TFC Enterprises, LLC. Thereafter, Moiseev forged the individual’s name on applications for two purported business loans. On each loan application, Grinis falsely certified that he had complied with all bank procedures and, as a result, the loans were approved. The proceeds of the two loans were subsequently distributed to the business checking account and Moiseev forged the individual’s name on checks and withdrew money from the account to pay for his own personal expenses. In addition, Moiseev, with Grinis’ assistance, caused proceeds from the business checking account to be wire transferred to Russia, Canada, and elsewhere overseas using the individual’s name. Both loans defaulted and were never paid back to Eastern Bank, resulting in a loss of over $90,000.

The charges of bank fraud and false statements provide for a sentence of no greater than 30 years in prison, five years of supervised release, and up to a $1 million fine. The aggravated identity theft charge provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, up to 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 other statutory factors.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today.  Assistant U.S. Attorney Laura J. Kaplan of Lelling’s Organized Crime and Gang Unit is prosecuting the case.

The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

An 11-count indictment was unsealed yesterday, charging five Tennessee health care executives with one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute and several substantive counts of violating the Anti-Kickback Statute, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.

Those charged are:

Brenda Montgomery, 70, of Camden, Tenn.;

Beau Jones, 50, of Loudon, Tenn.;

Sarah Dacus, 36; Greg Lawson, 42; and Josh Wiley, 35, all of Knoxville, Tenn.

The charges stem from a multi-level kickback scheme led and financed by Brenda Montgomery and the durable medical equipment (DME) company she owned and operated, CCC Medical, Inc. (CCC).   Jones, Lawson, Wiley, and Dacus were arrested yesterday as part of a national healthcare fraud takedown. Montgomery, who is currently facing other federal charges connected to a previous $4.6 million dollar Medicare kickback scheme, must appear in the Middle District of Tennessee to be arraigned on the new case.    

According to the indictment, Beau Jones, in his role as a sales representative for a large national DME manufacturer, recruited individuals in a position to make referrals of Medicare DME orders to CCC.  The indictment alleges that in exchange for the referrals, he received kickbacks in excess of $400,000. 

The indictment further alleges that Greg Lawson and Josh Wiley, sales representatives of the same company that employed Jones, were among the individuals recruited by Jones.  The indictment alleges that Lawson received over $250,000 in kickbacks and Wiley received over $93,000 in kickbacks for DME referrals and orders to CCC. 

According to other allegations in the indictment, Lawson recruited Sarah Dacus, a sales representative of a large international medical device manufacturer, and Dacus received kickbacks and bribes in excess of $52,000 for sending DME orders and referrals to CCC. 

Finally, the indictment alleges that, from in or around January 2012 until in or around December 2017, Montgomery paid Jones, Lawson, Wiley, Dacus and other co-conspirators over $1 million in illegal kickbacks; billed Medicare for over $2.5 million in tainted DME claims; and collected in excess of $1.2 million in reimbursement for those claims. 

The defendants face up to five years in federal prison on each charge as well as substantial monetary fines and penalties. 

This case was investigated by the U.S. Department of Health & Human Services - Office of Inspector General; the Defense Criminal Investigative Service; and the Tennessee Bureau of Investigation - Medicaid Fraud Control Unit.  Assistant United States Attorney Ryan R. Raybould of the Middle District of Tennessee and Trial Attorney Anthony Burba from the DOJ’s Fraud Section are prosecuting the case on behalf of the United States.    

An indictment is merely an accusation and is not evidence of guilt.  All defendants are presumed innocent unless and until proven guilty in a court of law. 

This enforcement action is part of a nationwide health care fraud initiative of the Department of Justice being announced today by Attorney General Jeff Sessions. 

A federal grand jury in Nashville, Tennessee, returned a 12-count indictment on June 13, 2018, charging five individuals with various offenses, including wire fraud and aggravated identity theft, relating to a conspiracy to fraudulently obtain and distribute oxycodone, in the middle Tennessee area, announced U.S. Attorney Don Cochran, for the Middle District of Tennessee.

The indictment charges the following individuals with conspiring to fraudulently use a DEA registration number issued to another person to obtain oxycodone between January 2017 and September 2017:

Simbarashe Kanjanda, aka Simba, 37, of Hermitage, Tennessee;

William Afari, 24, of Antioch, Tennessee;

Robert Pride, Jr., 31, of Nashville, Tennessee;

AbdulNasar Nour, 24, of Antioch, Tennessee; and

Kudakawashe Mandishona, aka Kuda, 23, of Antioch, Tennessee.

According to the indictment, the five individuals were part of a conspiracy to steal the DEA registration numbers of area physicians, as well as the personal identifying information of patients, from medical and dental clinics in the middle Tennessee area.  The indictment alleges the DEA registration numbers were then used to create fraudulent prescriptions for oxycodone in the names of patients whose identities had been stolen.  The fraudulent prescriptions were then presented to area pharmacies by co-conspirators, who obtained the oxycodone and then conspired to possess and distribute the oxycodone in middle Tennessee. 

The indictment also alleges that the defendants sent text messages to other co-conspirators to facilitate and request fraudulent prescriptions.

If convicted of the drug conspiracy, the defendants face a maximum sentence of 20 years in prison.  The defendants face up an additional mandatory consecutive sentence of at least 2 years in prison for the aggravated identity theft offenses.

This case was investigated by the Drug Enforcement Administration; the Tennessee Office of Inspector General; and the Smyrna Police Department. The case is being prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.

An indictment is merely an accusation and is not evidence of guilt.  All defendants are presumed innocent until proven guilty in a court of law.

This enforcement action is part of a nationwide health care fraud initiative of the Department of Justice being announced today by Attorney General Jeff Sessions. 

United States Attorney Ron Parsons announced that a Moorehead, Minnesota, man convicted of Criminal Contempt pled guilty and was sentenced on June 26, 2018, by U.S. Magistrate Judge William D. Gerdes.

Jack Moore, age 30, was sentenced to time served equal to 2 days in custody and a special assessment to the Federal Crime Victims Fund in the amount of $10.

Moore was indicted by a federal grand jury on January 17, 2018.  The conviction stemmed from an incident that occurred in December 2017, wherein Moore, who had been subpoenaed to testify as a witness in a federal criminal trial, failed to appear at the U.S. Courthouse in Aberdeen, South Dakota.

This case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorney Kirk Albertson prosecuted the case.

United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman convicted of Escape from Custody was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.

Aprielle Poitra, age 22, was sentenced on June 25, 2018, to 2 months in federal prison and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

The charge related to Poitra escaping from the custody of the Bureau of Prisons at the Community Education Centers, previously known as Community Alternatives of the Black Hills, where she was in custody on December 19, 2017.

This case was investigated by the U.S. Marshals Service.  Assistant U.S. Attorney Eric Kelderman prosecuted the case.

Poitra was immediately turned over to the custody of the U.S. Marshals Service.

ATLANTA - Arsalan Khalid Khan and Patrick Davis Gegenheimer have been sentenced to 10 years in federal prison for attempting to commit an armed carjacking in a busy Sam’s Club parking lot in Chamblee, Georgia.

“Khan and Gegenheimer showed no regard for life when they brazenly attempted to carjack an innocent shopper,” said U.S. Attorney Byung J. “BJay” Pak.  “These criminals will no longer threaten the safety of our citizens, but will now serve lengthy prison sentences that reflect the serious and violent nature of their crimes.”

“This case is the product of a concerted collaborative effort on the part of ATF, the U.S. Attorney’s Office and the Chamblee Police Department to identify, investigate, and prosecute the perpetrators of this violent crime.” said Special Agent in Charge Arthur Peralta. “Khan and Gegenheimer chose to commit this act and use a gun.  These sentences ensure that they will not have an opportunity to terrorize anyone for a long time.”

“We want to thank our partner law enforcement agencies for their efforts that resulted in the removal of two dangerous individuals from society,” said Chamblee Police Chief Donny Williams.  “The reckless disregard for the safety of innocent bystanders demonstrated the necessity of a severe penalty in this instance. I am proud of the quick response of our officers on the street. They didn’t give up searching for these dangerous individuals when it appeared they had gotten away, and that made the difference.”

According to U.S. Attorney Pak, the charges and other information presented in court: On September 1, 2017, Khan and Gegenheimer approached a shopper as he was loading goods into his minivan in the parking lot of a Sam’s Club in Chamblee, Georgia. Khan aimed a pistol at the shopper and demanded his car keys. After the shopper complied, Khan ordered the victim to get into the minivan. At that point, the shopper grabbed the pistol and wrestled it away from Khan. The pistol discharged during the struggle, injuring Khan’s hand. Khan and Gegenheimer then fled the parking lot, however, Chamblee police officers found and arrested the defendants a few minutes later.

Arsalan Khalid Khan, 27, of Cumming, Georgia, and Patrick Davis Gegenheimer, 24, of Atlanta, Georgia were each sentenced to 10 years in prison, to be followed by five years of supervised release by U.S. District Judge Timothy C. Batten, Sr. The defendants were convicted of these charges on March 19, 2018, after pleading guilty to aiding and abetting each other in using a firearm to commit a violent crime.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Chamblee Police Department.

Assistant U.S. Attorney William G. Traynor prosecuted the case.

This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.

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.

CVS Pharmacy, Inc. (“CVS”) has agreed to pay $1.5 million to resolve the United States’ investigation that certain of its pharmacy stores located in Nassau and Suffolk counties on Long Island violated the federal Controlled Substances Act (“CSA”) by failing to timely report the loss or theft of controlled substances, including hydrocodone, an opioid that is one of the most commonly diverted controlled substances.  The CSA requires pharmacies, such as CVS, to timely report the loss or theft of controlled substances so that DEA can promptly investigate.      

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, U.S. Drug Enforcement Administration, New York Division (DEA), announced the settlement. 

“The failure to promptly report the loss or theft of prescription drugs as required by law contributes to the opioid epidemic, which has caused devastating harm to individuals and our community,” stated United States Attorney Donoghue.  “The settlement with CVS demonstrates the resolve by this Office and the DEA to use all available tools to address this crisis at every level and reduce the availability of highly addictive, dangerous drugs.”

“This year, it is estimated that more than two million Americans will suffer from opioid addiction,” stated DEA Special Agent-in-Charge Hunt.  “Law enforcement, treatment professionals and educators are arming ourselves with strategies and actions to combat this growing crisis.  Through regulatory actions, DEA Diversion investigators and the EDNY identified that CVS violated the Controlled Substances Act.  This settlement is significant because it shows that big chain pharmacies, like CVS, are taking responsibility for violating federal law, which is a step in the right direction for curbing the opioid epidemic.”

CVS is a Rhode Island corporation with its corporate headquarters in Woonsocket, Rhode Island.  CVS, directly or through its retail pharmacy subsidiaries and affiliates, operates retail pharmacies in the State of New York that dispense prescription drugs, including controlled substances, to retail consumers. 

Opioid abuse has reached epidemic proportions throughout the United States.  According to the United States Department of Health & Human Services Centers for Disease Control and Prevention (“CDC”), on average 46 Americans died every day from an overdose involving prescription opioids in 2016.  In response to the overwhelming number of prescriptions, and the mounting number of overdoses and deaths, two months ago the CDC issued new guidelines recommending that doctors prescribe less addictive and less powerful pain relievers before prescribing highly addictive drugs, and that they prescribe limited amounts. 

This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative.  In January 2012, this Office and the DEA’s Long Island District Office Diversion Group D-11, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department and New York State Police, along with other key federal, state and local government partners, launched the Initiative to mount a comprehensive response to the increase in opioid abuse.  To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 22 health care professionals.  The Initiative also has resulted in civil enforcement actions against a hospital, a pharmacy and a pharmacy chain, the removal of prescription authority from numerous doctors and the expansion of information sharing among enforcement agencies to better target and pursue drug traffickers.

The United States’ case is being handled by Assistant United States Attorney Diane C. Leonardo of the Office’s Civil Division. 

Today, the Department of Justice also announced a national healthcare fraud takedown that resulted in charges against 601 individuals responsible for over $2 billion in fraud losses, which can be viewed at: https://www.justice.gov/opa/pr/national-health-care-fraud-takedown-results-charges-against-601-individuals-responsible-over.

            WASHINGTON – The former office manager of a trade association management company was sentenced today to 51 months in prison on a federal charge of wire fraud for embezzling more than $1.5 million from the firm, announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.

            Leunea D. Myers, 39, of Clinton, Md., pled guilty in March 2018 in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Christopher R. Cooper. Following her prison term, she will be placed on three years of supervised release. She also must pay $1,550,075 in restitution to her former employer and two of its clients, and the Court issued a forfeiture money judgment in the same amount.

            According to a statement of offense filed as part of the plea, Myers worked from February 2015 to November 2017 as the office manager and bookkeeper for a company identified in court documents as “Company A.” This company is a professional trade association management company in the District of Columbia that has been in business for more than 40 years. It has two primary clients. Myers’s responsibilities included tracking client billings and receipts, depositing money, and reconciling clients’ bank accounts, drafting checks, and preparing financial statements.

             From April 2015 through November 2017, Myers embezzled funds by making unauthorized charges on company credit cards and by writing fraudulent checks directly to herself or to pay third parties to pay bills that she owed.

            In announcing the sentence, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Special Assistant U.S. Attorney Rebecca Caruso and former Special Assistant U.S. Attorneys Sean Welsh and Parker Tobin, who assisted with forfeiture issues; Paralegal Specialist Brittany Phillips; former Paralegal Specialist Kate Abrey, and former Assistant U.S.  Attorney John P. Marston. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Derrick L. Williams, who handled the sentencing phase of the case.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JUDIE OLIVERA was sentenced today to a term of 40 years in prison for her role in the May 2012 home-invasion robbery of victim Miles Klein, which resulted in Klein’s death.  On June 26, 2018, GIBRON LOPEZ was sentenced to a term of 40 years in prison, which must run consecutively to a prior prison sentence of five years, for his role in the home-invasion robbery.  Both sentences were imposed by United States District Judge Katherine Polk Failla.  LOPEZ and OLIVERA were convicted of Hobbs Act robbery and Hobbs Act robbery conspiracy following a jury trial in October 2017 before Judge Failla.

U.S. Attorney Geoffrey S. Berman said:  “The defendants committed a violent home-invasion robbery, resulting in the brutal death of Miles Klein.  Having been convicted at trial, the defendants will now spend decades in prison for this horrific crime.  We thank our remarkable partners at the ATF and NYPD for their tireless efforts to bring these defendants to justice.”                       

According to the Indictment, other filings in Manhattan federal court, and the evidence admitted at trial: 

In May 2012, OLIVERA, who had a preexisting relationship with Klein, set up a home invasion robbery, which targeted Klein’s drugs and drug proceeds.  OLIVERA recruited LOPEZ and another man to commit the robbery.  On May 15, 2012, OLIVERA gained access to Klein’s apartment in the Bronx, and LOPEZ and the other man, armed with a wrench and a rubber mallet, respectively, followed her there.  LOPEZ and the other man struggled with Klein at the door, striking him in the head repeatedly with the wrench and the mallet, binding his eyes and mouth with duct tape, and gagging him.  During the assault, OLIVERA stole a safe containing cash, among other items, from Klein’s apartment.  LOPEZ and the other man then dragged Klein’s body to the bathroom, where they left him.   They discarded the murder weapons and their bloody clothes in a sewer, and later split the proceeds of the robbery.  Police responded to the scene on May 16, 2012, after receiving a 911 call from concerned family members.  Klein was ultimately pronounced dead as a result of the blunt force trauma to the head and obstruction of his airway.

*                *                *

In addition to prison terms, LOPEZ, 37, and OLIVERA, 40, both of the Bronx, New York, were each sentenced to three years of supervised release. 

Mr. Berman praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Strategic Pattern Armed Robbery Task Force, and the New York City Police Department. 

This case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Gina M. Castellano, Christopher J. DiMase, and Justina L. Geraci are in charge of the prosecution.

ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia, in partnership with the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA) Program, have released an opioid public service announcement to remind Georgians that the opioid epidemic demands the urgent attention of everyone in our community.   

“Fighting this epidemic remains our highest priority and we will continue to prosecute criminals who threaten our communities with these dangerous drugs,” said U.S. Attorney Byung J. “BJay” Pak.  “This public service announcement is a renewed call to remain vigilant in our efforts, as we continue to confront the challenges of this public health emergency.  We must continue to work together – parents, children, teachers, neighbors, stakeholders, businesses and community leaders – to fight this epidemic and save lives.

“Georgians unfortunately have gotten a dose of reality about the dangers of opioids,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA).  “In 2017, too many Georgians (nearly 1,050) died as a result of opioid overdoses. Atlanta-Carolinas HIDTA is committed to forming strategic partnerships with law enforcement and community partners in an effort to combat this crisis.”

The public service announcement highlights Joseph Abraham, an 18-year-old teenager from Gwinnett County, Georgia, who struggled with drug addiction from an early age.  Joe began using drugs in middle school. Throughout the years, his parents, David and Kathi Abraham, intervened by placing their son in drug treatment centers for his addiction.  On May 26, 2017, Joe lost his battle with drug addiction minutes after taking a fatal mixture of heroin and fentanyl.  Joe is not alone.  In 2017, an estimated 1,043 Georgians also lost their lives to opioid overdoses. 

“My son has a name and he is more than a statistic.  Joe made a mistake.  A fatal mistake.  One that could not be fixed.  Our lives are forever changed because of the opioid problem that is devastating so many families like ours,” said Kathi Abraham.  “Addiction does not discriminate.  The opioid crisis and the rise of heroin use is not purely for people living in the inner city.  Silence is not the solution.  We must increase awareness, decrease the stigma of addiction, and educate both our parents and our children. It’s up to us to act in order to save others.”

The public service announcement is currently being shown in 17 theaters within the Northern District of Georgia as a reminder of the reality of this epidemic.  To view the public service announcement, please visit our website at https://www.justice.gov/usao-ndga/video/dose-reality-georgia.  For additional information and resources, please visit www.doseofrealityga.org/get-support.   

This education campaign is part of Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), which is an initiative launched by the U.S. Attorney’s Office to partner with federal and local law enforcement to fight the devastating effects that illegally-prescribed painkillers, heroin, and synthetic opioids, such as fentanyl have on our neighborhoods. 

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.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that former Philadelphia Police Department Sergeant Brian Smith, 35, of Philadelphia, PA, was sentenced today to 15 months’ imprisonment, three years’ supervised release, a $10,000 fine, and a $200 special assessment. U.S. District Judge Gerald Pappert imposed the sentence. Smith previously pled guilty to two counts of soliciting a bribe.

According to court papers, Smith joined the Philadelphia Police Department (PPD) as an officer in June 2005, and was promoted to the rank of Sergeant in March 2016. Between December 2015 and November 2016, Smith solicited and accepted weekly bribe payments of $200 from a tow truck operator in exchange for lucrative accident location information.  Smith would obtain this confidential law enforcement information from his PPD mobile data terminal and immediately send it by text messages to the tow truck operator in exchange for the corrupt payments.  Smith also accepted monthly bribe payments of $800 per month from a second tow truck operator for such information.

Smith’s conduct unlawfully circumvented the PPD’s rotational towing policy.  In 2008, the PPD instituted the policy, which requires patrol officers to notify Police Radio of any accident that requires vehicle towing. Police Radio maintains an accurate list of towing companies for an equitable rotation and distribution of towing assignments and calls a tow truck operator directly off the list. The City of Philadelphia instituted this rotational program as a public safety and consumer protection measure to stop wreck-chasing and to prevent accident victims from being taken advantage of by price-gauging tow truck operators.  The program came in response to a series of highly publicized, violent encounters between tow truck operators who competed for the potentially lucrative work of towing cars damaged in accidents.

“Our efforts in this case illustrate that my Office is committed to stamping out corruption wherever it takes place,” said U.S. Attorney McSwain.  “As a Sergeant in the Philadelphia Police Department, Smith repeatedly abused his position of trust. Today’s sentence makes plain that public officials who subvert the rule of law like this to line their own pockets will pay the price—and the only currency we accept will be their freedom.”

"It's grimly ironic, and beyond disappointing, that Brian Smith chose to game a system instituted in the interests of public safety and fair play," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "What he saw as an easy way to pad his paycheck on the sly, federal law deems clear corruption. Public servants, particularly in law enforcement, must be held to the highest of ethical standards. Those falling short, like former Sergeant Smith, must be rooted out—and firmly held to account."

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, Internal Affairs Division, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.

PITTSBURGH, Pa. – A resident of North Versailles, Pennsylvania, has been sentenced in federal court to 13 months incarceration and three years supervised release on his conviction of conspiracy to possess and distribute oxycodone, an opiate, and violating federal firearms laws, United States Attorney Scott W. Brady announced today.

United States District Judge Mark R. Hornak imposed the sentence yesterday on John Zurick, 41, of 506 Porter Street.

According to information presented to the court, Zurick participated in a criminal network of drug dealers that obtained opiate pain killers and then illegally distributed them to users in the Pittsburgh area. Zurick helped transport Antoinette Adair, one of the key dealers in the criminal network, to buy and sell opiate pills. While transporting Adair, Zurick was armed with a firearm, in violation of federal law.

Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.

United States Attorney Brady commended the Federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of the Attorney General, the Pittsburgh Bureau of Police, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Zurick.

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted conspiring with his father to file false federal tax returns for shell companies, resulting in $191,953 in fraudulent refunds, U.S. Attorney Craig Carpenito announced.

Jason Crespo, 35, of Elmwood Park, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiring with Jose Crespo, his father, to defraud the IRS by filing false corporate tax returns and cashing the resulting fraudulent refund checks.

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

Between 2010 and 2012, Jason and Jose Crespo filed numerous false federal corporate tax returns – IRS Forms 1120 – for fake businesses, knowing that the businesses were not real and that the credits claimed on the tax returns were false. The Crespos took advantage of fuel excise tax credits offered under federal tax law. The federal government taxes gasoline, diesel fuel, and certain other types of fuel, but certain commercial uses of these fuels are nontaxable. Businesses that purchase fuel for a nontaxable use can claim a tax credit by filing a “Credit for Federal Tax Paid on Fuels” – IRS Form 4136.

In one instance Jason and Jose Crespo filed a federal corporate tax return for 2008 for Jason Cleaning Service Corp. that falsely claimed a fuel excise tax credit of $14,556 and a resulting refund of $10,592. In fact, Jason Cleaning Service Corporation was a shell company and the fuel excise tax credit and other tax return numbers were false. Jason Crespo received and cashed the $10,592 refund check at a check-cashing facility in Guttenberg, New Jersey. He cashed many other refund checks for similar false tax returns at this same facility.

Jose Crespo pleaded guilty on Sept. 11, 2017, before Judge Linares to engaging in the fuel excise tax credit scheme and another tax fraud scheme, both of which claimed fraudulent refunds from the IRS of approximately $1.5 million. Jose Crespo was sentenced on Dec. 20, 2017, to three years in prison.

Marilyn Crespo, Jose Crespo’s wife, pleaded guilty on March 1, 2018, before Judge Linares to engaging in the same fuel excise tax credit scheme and causing a loss to the IRS of $286,742. She was sentenced June 27, 2018, to one year and one day in prison.

The filing a false tax return count carries a maximum potential penalty of three years in prison, and a potential $250,000 fine, or twice the gross gain or loss from the offense. Jason Crespo’s sentencing is set for Oct. 4, 2018.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division in Newark.

Defense counsel: Rubin Sinins Esq., Springfield, New Jersey