Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that two men have been sentenced in Juneau for attempting to transport cocaine and marijuana from California to Alaska for distribution.

Jorge Lopez-Villareal, 29, a citizen of Mexico residing in Juneau, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to serve three years in prison, followed by four years of supervised release.  His co-conspirator, Carlos Zavala-Flores, 39, of Juneau, was previously sentenced in June 2018 to serve three years in prison, followed by five years of supervised release.  Both have pleaded guilty to drug conspiracy charges.

According to court documents, on April 19, 2017, Zavala-Flores and Lopez-Villareal flew together from Juneau to Los Angeles.  On April 26, 2017, the two were traveling up the I-5 in a vehicle, which contained quantities of cocaine and marijuana intended for distribution in Alaska.  Later that day, Oregon State Police conducted a traffic stop on the vehicle after observing the vehicle crossing over the centerline several times.  At the traffic stop, the Trooper noticed a strong odor of fabric softener and marijuana emanating from the vehicle.  When Zavala-Flores was questioned, the Trooper learned that both Zavala-Flores and Lopez-Villareal intended on driving the vehicle up the I-5 to Seattle so they could ship the vehicle to Juneau.  Upon arriving in Seattle, the two were planning to split the cost to barge the vehicle to Juneau, and both later intended to fly up to Juneau from Washington via a commercial airline. 

A subsequent search of the vehicle revealed approximately 6.8 pounds of cocaine and 22 pounds of marijuana intended for distribution in Juneau.  A search of Lopez-Villareal revealed he was carrying $6,750 in U.S. currency.     

Homeland Security Investigations (HSI) and Oregon State Police (OSP) conducted the investigation leading to the successful prosecution of this case.  This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.

Baltimore, Maryland – Antoine Jamel Henderson age 35, of Hagerstown, Maryland, pleaded guilty today to conspiracy to distribute 40 or more grams of fentanyl—as little as 2 milligrams of fentanyl can be a lethal dose.  In his plea agreement, Henderson admitted that he and others distributed at least 280 grams of fentanyl in the area of Washington County, Maryland—enough fentanyl to kill most of the residents of Washington County.  As part of his plea, Henderson admitted that the drug trafficking organization that he supervised sold fentanyl that resulted in both fatal and non-fatal overdoses, including the fatal overdoses of two Pennsylvania men.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; the Washington County Narcotics Task Force, led by Washington County Sheriff Douglas Mullendore; and Washington County State’s Attorney Charles P. Strong, Jr.

U.S. Attorney Robert K. Hur stated, “Working together with our local, state, and federal partners, we will reduce the number of opioid overdose deaths in Maryland.  We’re particularly targeting those who sell fentanyl, the drug that is killing the most of our citizens.  Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution.”

According to his plea agreement, from at least 2017 through January 2018, Henderson conspired with others to distribute at least 280 grams of fentanyl in the area of Washington County, Maryland.  Henderson knew that the fentanyl that was distributed during the conspiracy resulted in both fatal and non-fatal overdoses, including the fatal overdoses of Marc Brumbaugh, age 27, and Nathan Bolden, age 31, both from Waynesboro, Pennsylvania. 

Between August and September 2017, investigators conducted at least six controlled purchases of either fentanyl or crack cocaine from Henderson or his co-defendant.  According to the plea agreement, the controlled purchases were supposed to be heroin, but lab results showed that the substances provided by Henderson and his co-defendant were in fact fentanyl, not heroin. 

On January 17, 2018, search warrants were executed at two locations and three vehicles involved in the Henderson Drug Trafficking Organization (DTO).  At Henderson’s stash house, located on Atlantic Drive in Hagerstown, agents recovered 80.22 grams of fentanyl.  The fentanyl was located in the bottom compartment of a Coca-Cola vending machine in the garage.  The agents also recovered 9 mm ammunition, a drug press, digital scales, drug packaging equipment, plastic bags containing fentanyl residue, cellular phones, and other drug paraphernalia.

At Henderson’s primary residence, located on Lantern Lane in Hagerstown, the agents recovered additional cellular phones, a currency counter, jewelry, and a garage opener that opened the garage at the stash house.  Search warrants were obtained for the 28 cellular phones that were recovered from the houses and cars, as well as for the DVD from the surveillance system located at the stash house.  Also on Henderson’s iPhone, agents found iPhone “notes” tracking law enforcement surveillance.

Henderson and the government have agreed that if the Court accepts the plea agreement, Henderson will be sentenced to between 10 and 15 years in prison.  U.S. District Judge Richard D. Bennett has scheduled sentencing for January 10, 2019, at 3:00 p.m.

United States Attorney Robert K. Hur commended the DEA; the Washington County Narcotics Task Force, led by Washington County Sheriff Douglas Mullendore; and Washington County State’s Attorney Charles P. Strong, Jr. for their work in the investigation.  U.S Attorney Hur thanked Franklin County (PA) District Attorney Matt Fogal, the Waynesboro (PA) Police Department, the Franklin County Drug Task Force, the Franklin County Coroner’s Office, the Washington County Special Response Team, and the Maryland Natural Resources Police for their assistance in the investigation and prosecution.  Mr. Hur thanked Assistant U.S. Attorneys Joan C. Mathias and Michael C. Hanlon, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

BOSTON – Three Massachusetts men were charged today in federal court in Boston in connection with a 10-year mortgage fraud scheme involving at least two dozen fraudulent loan transactions and $4.3 million in losses to lenders.

George Kritopoulos, 46, of Salem, a real estate developer, was arrested today and charged with one count of conspiracy, two counts of wire fraud, six counts of bank fraud, one count of aiding the preparation of a false income tax return, and one count of obstruction of justice. Joseph Bates III, 38, of Lynnfield, was charged with one count of conspiracy, three counts of wire fraud, and two counts of bank fraud. David Plunkett, 52, of Lynn, was also charged with one count of bank fraud and one count of aiding in the preparation of a false tax return.      

According to the charging documents, from 2006 through 2015, Kritopoulos, Bates, and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. The co-conspirators recruited other borrowers to purchase the individual condominium units, which were also financed by mortgage loans obtained by fraud.

The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets, and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies used to advance the fraudulent scheme. The employment information included false representations about the income that the borrowers received from the entities, when, in fact, the borrowers received little or no income from them.  Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when the borrowers, in fact, did not intend to do so. Plunkett assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications. 

Because the borrowers did not have the financial ability to repay the loans, in many instances, they defaulted on their loan payments, resulting in foreclosures and losses to the financial institutions of more than $4.3 million.

In addition, Kritopoulos sought to obstruct the federal criminal investigation into the mortgage fraud scheme by encouraging others to make false statements and provide false documents. Kritopoulos also made false statements to federal investigators. 

The charges of bank fraud and wire fraud each provide for sentences of no greater than 30 years in prison and five years of supervised release. The charge of obstruction of justice provides for a sentence of no greater than 20 years in prison and five years of supervised release. The charge of conspiracy provides for a sentence of no greater than five years in prison and three years of supervised release. The charge of aiding the preparation of false tax returns provides for a sentence of no greater than three years in prison and one year of supervised release. Each charge also carries a fine of $250,000, or twice the gross gain or loss, whichever is greater. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today.  Assistant U.S. Attorneys Mark J. Balthazard and Sara Miron Bloom of Lelling’s Economic Crimes Unit are prosecuting the case.

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

          LOS ANGELES– A Downey man who operates second-hand clothing stores across the Los Angeles area pleaded guilty today to failing to report $3.7 million in corporate income to the Internal Revenue Service.

          Jose Martin Andrade Flores, 53, the owner and operator of American Superior Used Clothing, Inc., pleaded guilty this afternoon to subscribing to a false corporate tax return for the 2013 tax year.

          According to a plea agreement filed in this case, American Superior was in the business of recycling used clothing, which it then resold at retail stores located on Melrose Boulevard and in Hollywood, Echo Park and Pasadena. The company also engaged in bulk wholesale transactions with buyers worldwide, as well as selling merchandise at Rose Bowl swap meets and sidewalk locations in East Los Angeles.

          From 2012 through 2016, Flores concealed from his corporate tax preparer cash sales and deposits into foreign bank accounts that were made on behalf of American Superior. As a result, Flores admitted in court, the tax returns he filed for American Superior for those five years failed to report a total of $3,766,473 in income to the IRS.

          At today’s hearing, Flores specifically pleaded guilty to subscribing to a false corporation income tax return (Form 1120) that he filed for American Superior for 2013.  In that year, American Superior had income of approximately $3,440,769, but Flores instead reported only $2,505,183, omitting income of $935,586.

          Flores pleaded guilty before United States District Judge Christina A. Snyder, who scheduled a sentencing hearing for December 3. As a result of today’s guilty plea, Flores faces a statutory maximum sentence of three years in federal prison.

          As part of this case, Flores agreed to pay all back taxes, interest and penalties associated with his willful failure to accurately report American Superior’s income. Flores has paid the IRS $1,189,331, which includes $439,632 in penalties.

          This case was investigated by IRS Criminal Investigation.

          This matter is being prosecuted by Assistant United States Attorney Ranee Katzenstein, Chief of the Major Frauds Section.

The charges against Lites resulted from an investigation conducted by the Dane County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Madison, Cross Plains and Baraboo Police Departments.  The prosecution of the case has been handled by Assistant U.S. Attorney Robert A. Anderson. 

NEW ORLEANS– U.S. Attorney Peter Strasser held his investiture today at the Hale Boggs Federal Court Building in front of his former colleagues, members of the judiciary and a host of well-wishers.  United States District Judge Lance Africk presided over the Oath of Office ceremony.  On June 20, 2018, Mr. Strasser was nominated by President Trump and was confirmed by the Senate on August 28, 2018 and was sworn in by United States District Chief Judge Nannette Jolivette Brown on September 10, 2018.

Over the course of his career, he has been a partner at Chaffe McCall, LLP; an Assistant U.S. Attorney; a diplomat; a Navy officer; and a Tulane adjunct professor. In recognition of his career and community accomplishments, Mr. Strasser was selected as a New Orleans CityBusiness Leadership in Law Honoree.

As an Assistant U.S. Attorney for Louisiana’s Eastern District, he was the head of the organized crime and economic crime sections. Among his trial accomplishments were the convictions of former Louisiana Governor Edwin Edwards and associates on racketeering charges. As a Special Assistant U.S. Attorney in the District of Puerto Rico, Mr. Strasser prosecuted at bench trials and argued on appeal the convictions of the Navy-Vieques protestors. As a result of his dedicated and superior efforts in law enforcement, he received the U.S. Attorney General’s John Marshall Award and the Metropolitan Crime Commission’s Excellence in Law Enforcement Award.

Serving overseas for 12 years as a DOJ OPDAT Resident Advisor at Embassies in Eastern Europe, Asia, and Africa, Mr. Strasser designed and implemented rule of law programs to assist host countries improve prosecutorial capacity to combat high-priority criminal activity, help strengthen independent judiciaries, and develop new criminal procedure codes. He served as an OSCE Parliamentary Election Monitor over the elections that led to the 2003 Rose Revolution in the Republic of Georgia. He later served as an OECD Anti-Corruption Monitor for Georgia. In the book “The Contractor: How I Landed in a Pakistani Prison and Ignited a Diplomatic Crisis,” Mr. Strasser was featured for his integral role in the release of a former Special Forces soldier who had been charged with double homicide for shooting two apparent robbers on the streets of Lahore. For his exemplary activities in Georgia and Pakistan, he twice received the DOJ Special Achievement Award.

U.S. Attorney Strasser is a retired Navy Reserve Captain, JAGC, having served world-wide and as a military judge. For his exemplary service, he was awarded the Legion of Merit Medal. Mr. Strasser received his B.A., with distinction, from the University of Virginia and his J.D. from Washington and Lee Law School. Fluent in German, he also attended the University of Vienna (Austria).

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced the unsealing of an indictment charging a Janesville man with being a felon in possession of ammunition.  Royal Powell, 35, was charged in an indictment returned by a grand jury on September 12, 2018. 

The indictment alleges that Powell possessed ammunition on August 17, 2018.

Powell was arrested and made his initial appearance in U.S. District Court in Madison yesterday.  He was ordered held in federal custody.  His trial has been scheduled for February 25, 2018, before U.S. District Judge William Conley.

If convicted, Powell faces a maximum penalty of 10 years in federal prison.   The charge against him is the result of an investigation by the Janesville Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution of this case is being handled by Assistant U.S. Attorney Julie Pfluger.

This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime.  The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms. 

You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jose Alvarez, 26, of Buffalo, NY, pleaded guilty before U.S. District Court Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and to distribute, butyryl fentanyl.  The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.

Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that on July 27, 2017, Drug Enforcement Administration and Homeland Security Investigations Special Agents executed a search warrant on Alvarez’s vehicle. During the search, agents recovered 20 bags of butyryl fentanyl, a Schedule I controlled substance. The investigation determined that the defendant, along with his co-defendants, were staying at a hotel and casino located in Salamanca. Subsequently, a search warrant was executed in their hotel room, where agents recovered another 196 bags of butyryl fentanyl. Alvarez also admitted selling butyryl fentanyl on three prior occasions in Salamanca in May and July of 2017.

The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the NYS State Police Bureau of Criminal Investigation, under the direction of Major Edward Kennedy; and the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb.

Sentencing is scheduled before Judge Vilardo for January 31, 2019, at 10:30 a.m.

# # # # 

BOSTON – A physician and former employee of New England Pain Management Associates, Inc. was convicted today by a federal jury of conspiring to falsify patient medical records between May 2012 and May 2013 in an effort to obtain payments from Medicare and commercial insurers for medical services that were not performed.  

Moustafa Moataz Aboshady, 36, of Lake Forest, Calif., was convicted on one count of conspiracy to make false statements in connection with health care benefit programs and two counts of making false statements in connection with health care benefit programs.

During the time of the conspiracy, Aboshady was a medical resident in Massachusetts and Rhode Island, employed at New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA. NEPA had locations in Massachusetts and Rhode Island, and was operated by Fathallah Mashali, a pain management physician. Mashali pleaded guilty to 27 counts of health care fraud, one count of conspiracy to commit mail fraud, and 16 counts of money laundering and was sentenced in March 2018 to eight years in prison and three years of supervised release.

Aboshady was part of a conspiracy involving Mashali, other members of NEPA, and members of a satellite office in Cairo, Egypt, whose purpose was to falsify medical records and urine drug test results to support claims for payment to Medicare and insurers for services that Mashali did not render.

Part of the conspiracy involved falsification of patient encounter notes. Such false information included, but was not limited to, detailed descriptions of extensive physical examinations and treatment plans, and durations of face-to-face interactions with patients exceeding 20 to 40 minutes per appointment, to create the appearance of lengthy and involved patient encounters, when in fact these services did not take place. Aboshady instructed the Cairo office to create false electronic signatures on the encounter notes and how to make the timestamps for those signatures look realistic. 

Aboshady was also responsible, in conjunction with the office in Cairo, for the fabrication of urine drug test results with false test dates, so that the tests appeared to have been performed within days of specimen collection rather than weeks or months thereafter. This information was necessary to support urine drug test billing codes submitted to Medicare and insurance companies.  In fact, NEPA tested patients’ urine weeks and sometimes three months after the specimens had been collected and stored unrefrigerated in large plastic bags and containers. 

The charges provide for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 and restitution. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Abraham R. George, Senior Litigation Counsel of Lelling’s Civil Division, and David G. Lazarus, Chief of Lelling’s Asset Forfeiture Unit, prosecuted the case.

SACRAMENTO, Calif. — Michael Paul Grisham Smith, 44, of Grass Valley, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to five years in prison for unlawful manufacturing and dealing in firearms, U.S. Attorney McGregor W. Scott announced.

According to court documents, Smith contacted a firearms vendor on the dark web seeking to sell AR-15-style “ghost” guns. Firearms without serial numbers are sometimes referred to as ghost guns. The firearms vendor was in fact an undercover agent. Between December 1, 2017, and February 15, 2018, Smith manufactured and sold eight AR‑15‑style firearms without serial numbers to the undercover agent in exchange for payment in bitcoin.

This case was the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorneys Quinn Hochhalter and Justin Lee are prosecuting the case.

SACRAMENTO, Calif. — Feliciano Ochoa Reyes, 34, of Mexico and Modesto, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 17 and a half years in prison for conspiring to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, Reyes supplied methamphetamine to various distributors in the Sacramento and Modesto areas between 2014 and 2015. Reyes was arrested on March 29, 2015, after law enforcement officers watched one of his employees receive a delivery of 15 kilograms of methamphetamine at a Modesto stash house. The methamphetamine delivery was worth approximately $50,000. When agents searched the property, they found a laboratory for converting liquid methamphetamine to crystal methamphetamine and more than $23,000 in cash. On December 3, 2014, officers pulled over the car of a Reyes customer who had just received four kilograms of methamphetamine from Reyes.

This case was the product of an investigation by the Drug Enforcement Administration, the Central Valley High Intensity Drug Trafficking Area, and the California Multi-Jurisdictional Methamphetamine Enforcement Team. Assistant U.S. Attorney Amanda Beck prosecuted the case.

Co-defendants Jose Acosta and Jorge Rios have each been sentenced to 87 months in prison. Co-defendant Jose Luis Aguilar was sentenced to 48 months in prison. Co-defendant Luis Garcia Barreto was sentenced to 47 months in prison. Co-defendant Diego Velasquez was sentenced to 30 months in prison. Juan Antonio Mendoza Meraz was sentenced in a related case to 56 months in prison. Charges are pending against the final co-defendant, Jose Vasquez. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Larry Allen Todt, 66, formerly of Malibu, was sentenced to over seven years in prison and ordered to pay over $3,000,000 in restitution for his role in a fraudulent mortgage elimination scheme, U.S. Attorney McGregor W. Scott announced.

On December 6, 2017, Todt was convicted following trial on one count of conspiracy and one count of bank fraud.

According to court documents, between April 22, 2010, and November 18, 2011, Todt was a member of a conspiracy that ran a mortgage elimination program purporting to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.

As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity, Pillow Foundation. The conspirators indicated to the homeowners that these entities would offer protection against the banks.

Todt ran a branch of the mortgage elimination program, recruiting homeowners into the scheme, marshalling the necessary recorded documents, and guiding the sale of the homes. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Todt would have a sham deed of trust created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.

The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.

With title appearing to be clear, the conspirators caused the sale of the home with the proceeds split between the co-conspirators and the homeowners.

In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes, but were unable to sell these before the scheme unraveled.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Todd A. Pickles are prosecuting the case.

One co-defendant, George B. Larson, formerly of San Rafael, was convicted at trial along with Todt and sentenced to 121 months in prison. One other co-defendant, Michael Romano, of Benicia, was sentenced to 37 months in prison following his guilty plea. Remus A. Kirkpatrick, formerly of Oceanside, and Laura Pezzi, of Roseville have previously pleaded guilty. Tisha Trites and Todd Smith, both of San Diego, pleaded guilty in related cases. All are awaiting sentencing.

Co-defendants John Michael DiChiara, of Penn Valley, and James Castle, of Santa Rosa, are awaiting trial. The charges against DiChiara and Castle are only allegations; both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

Bangor, Maine:  United States Attorney Halsey B. Frank announced Benigno Godinez-Cortez, 45, of Ahuacuotzingo, Guerrero, Mexico was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to time servied (70 days) in prison for unlawfully re-entering the United States.  He pled guilty on August 14.

According to court records, on July 10, the defendant entered the United States illegally from Canada by crossing a railroad trestle near Calais.  U.S. Border Patrol agents located the defendant shortly after he entered.  He is a citizen of Mexico who had been deported after his arrest in 1994 on immigration charges and did not have immigration documents allowing him to enter.

The investigation was conducted by the U.S. Border Patrol and U.S. Customs and Border Protection.

ELKINS, WEST VIRGINIA –Ashley N. Rohrbaugh, of Purgitsville, West Virginia, has admitted to a heroin distribution charge, United States Attorney Bill Powell announced.

Rohrbaugh, age 31, pled guilty to one count of “Conspiracy to Distribute Heroin.” Rohrbaugh admitted to conspiring with another to distribute heroin in Hardy County from January to April 2017. 

Rohrbaugh faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Hardy County Sheriff’s Office investigated.

U.S. Magistrate Michael John Aloi presided.

ELKINS, WEST VIRGINIA – Ian Michael Toothman, of Morgantown, West Virginia, has admitted to a child pornography charge, United States Attorney Bill Powell announced.

Toothman, age 29, pled guilty to one count of “Aiding and Abetting Production of Child Pornography.” Toothman admitted to producing child pornography in December 2017 in Monongalia County.

Toothman faces up to 30 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The West Virginia State Police investigated.

U.S. Magistrate Judge Michael John Aloi presided.

Aleah Mohammed, the owner of four pharmacies in Queens, New York, will be arraigned today in federal court in Brooklyn on an indictment charging her with submitting millions of dollars in claims as part of a scheme to defraud Medicare and Medicaid.  The proceeding will take place before United States Magistrate Judge Steven L. Tiscione at 11:00 a.m.

Richard P. Donoghue, United States Attorney for the Eastern District of New York; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; William F. Sweeney, Jr., Assistant Director-in-Charge,  Federal Bureau of Investigation, New York Field Office (FBI); and Scott J. Lampert, Special Agent-in-Charge, the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, New York Region (HHS-OIG), announced the indictment.

“As alleged in the indictment, Mohammed used her pharmacies to steal from publicly funded health care programs and fund her lavish lifestyle,” stated United States Attorney Donoghue.  “This Office and our law enforcement partners are committed to holding accountable fraudsters who seek to enrich themselves at the expense of vital taxpayer-funded programs upon which so many Americans rely.”

“According to the allegations in the indictment announced today, Aleah Mohammed defrauded the taxpayer-funded Medicare and Medicaid programs by submitting millions of dollars of phony reimbursement claims, and then used the stolen money to purchase luxury items such as cars and jewelry,” stated Assistant Attorney General Benczkowski.  “This case is another example of the outstanding work of the Department’s Medicare Fraud Strike Forces, which are focused on safeguarding federally funded health care programs and vigorously prosecuting those who seek to defraud them.”

“These investigations matter because the subjects are stealing money each and every one of us pays in taxes to fund these programs,” stated FBI Assistant Director-in-Charge Sweeney.  “What adds insult to injury, defrauding the government and stealing money is rarely about anything more than spending money on frivolous things like pricy jewelry and fast cars.  Our ultimate goal is to stop these fraudsters from wasting the millions they steal so it can go to the patients and taxpayers who depend on it.”

“Ms. Mohammed’s alleged fraud scheme was motivated by nothing more than personal greed,” stated HHS-OIG Special Agent-in-Charge Lampert.  “This indictment should serve as a warning to any health care provider daring to use Medicare and Medicaid as a vehicle to steal money. We will continue to work with our law enforcement partners to aggressively pursue those who seek to undermine taxpayer-funded health care programs intended for our most vulnerable Americans.”

As alleged in the indictment, Aleah Mohammed, also known as “Aleah Haniff,” was the owner and operator of Superdrugs Inc., Superdrugs I Inc., Superdrugs II Inc. and S&A Superdrugs II Inc.  Beginning in approximately May 2015 and continuing through June 2018, Mohammed executed a scheme in which she and others submitted fraudulent claims to Medicare Part D plans and Medicaid for reimbursement for prescription drugs that were not dispensed, prescribed as claimed or medically necessary.  The fraudulent claims included claims for prescription drugs for the treatment of the human immunodeficiency virus (HIV).  Through this scheme, Mohammed’s pharmacies received approximately $7.9 million in reimbursements from Medicare and Medicaid.  The indictment further alleges that Mohammed used the proceeds of the scheme to purchase, among other things, luxury items including a Porsche and jewelry.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If convicted of health care fraud, Mohammed faces a maximum sentence of 10 years’ imprisonment.

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section.  Trial Attorney Andrew Estes of the Fraud Section is in charge of the prosecution.

The Defendant:

ALEAH MOHAMMED (also known as “Aleah Haniff”)
Age:  33
Residence: Queens, New York

E.D.N.Y. Docket No. 18-CR-509 (ENV)

PITTSBURGH – United States Attorney Scott W. Brady announced today that three Western Pennsylvania counties will receive new federal funding to combat drug trafficking and reduce the supply of illegal drugs. The counties of Allegheny, Beaver and Washington have been officially designated as a High Intensity Drug Trafficking Area (HIDTA) by the White House’s Office of National Drug Control Policy, meaning Western Pennsylvania will now receive more resources to coordinate federal, state and local governments to fight drug trafficking and abuse.

"We are pleased to receive this surge in funding from the White House. The HIDTA designation for Western Pennsylvania is long overdue," stated U.S. Attorney Brady. "We are at a critical point in the opioid crisis and the President has made clear that failure is not an option. The HIDTA program will expand our law enforcement efforts by providing critical funding to local, state and federal agencies. Through a centralized command structure, we will be able to share information and intelligence so those individuals who are polluting our communities with drugs will be held accountable. The HIDTA designation will also permit broader and more effective training initiatives and provide the opportunity to turn the corner in this devastating drug crisis."

Until today, Western Pennsylvania was the only metropolitan area in the country that had no designated HIDTA areas. The U.S. Attorney’s Office, in partnership with FBI, DEA and other law enforcement agencies, worked closely with the District Attorneys’ Offices for Allegheny, Beaver and Washington Counties to petition the White House for designation. All three petitions for designation detailed the region’s record levels of fatal overdoses, primarily due to widespread distribution of fentanyl and its analogues. Each petition also noted the need to enhance each County’s ability to stop illegal drugs from entering the communities through the federal highways, including I-376, I-76 (The Pennsylvania Turnpike), I-79, I-70, and PA Route 51, as well as by mass transit, including buses from Chicago, Detroit, Philadelphia and Newark.

U.S. Attorney Brady thanked Pennsylvania’s United States Senators, Senator Pat Toomey and Senator Robert Casey, the members of Western Pennsylvania Congressional delegation, Governor Tom Wolf, District Attorney Gene Vittone, District Attorney David Lozier and District Attorney Stephen Zappala, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania State Police, the US Postal Inspection Service, and the Department of Homeland Security, as well as state and local law enforcement who supported and worked in concert to receive this designation.

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nagy Mohamed Abdelhamed, age 68, of York, Pennsylvania, was indicted on September 19, 2018, by a federal grand jury on one count of health care fraud and six counts of false statements in health care matters.  The indictment was unsealed following Abdelhamed’s arrest.

According to the United States Attorney David J. Freed, the indictment alleges that on August 13, 2014, Abdelhamed applied for Medicaid and SNAP (formerly known as Food Stamp) benefits with the York County Assistance Office in August of 2014, even though he owned a four- bedroom residence in York, a gas station in York, a 2008 Mercedes Benz E350 automobile, received $1,124 a month in Social Security disability benefits, and held approximately $58,500 in eight different bank accounts.

The Indictment further alleges that on August 22, 2014, Abdelhamed sold his gas station for $172,883 and deposited $87,016 of the sales proceeds into a bank account.  Abdelhamed did not notify the York County Assistance Office of the sale or his receipt of the sales proceeds. According to the Indictment Abdelhamed continued to receive Medicaid and SNAP benefits into 2018 and as a result, fraudulently obtained approximately $29,337 in benefits, including approximately $20,338 in Medicaid benefits.

The case was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and the U.S. Health and Human Services Office of Inspector General. Assistant U. S. Attorney Kim Douglas Daniel is prosecuting the case.

Indictments and 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.

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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United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child, Sexual Abuse, and Abusive Sexual Contact with a Child.

Elliot Brave, a/k/a Elliot Ladeaux, age 38, was indicted on September 11, 2018.  He appeared before U.S. Magistrate Judge Mark A. Moreno on September 18, 2018, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund for each count.  Restitution may also be ordered.

The Indictment alleges that between December 1, 2017, and January 14, 2018, Brave knowingly engaged in, and attempted to engage in, sexual acts with a minor male and multiple minor females.

The charges are merely accusations and Brave is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Kirk Albertson is prosecuting the case.   

Brave was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on September 17, 2018, by U.S. District Judge Roberto A. Lange.

Carlos Eddie Charging Elk, age 26, was sentenced to 16 months in federal prison, followed by 3 years of supervised release, forfeiture of the firearm, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

Charging Elk was indicted by a federal grand jury on February 14, 2018.  He pled guilty on June 27, 2018.

The conviction stemmed from an incident that occurred on December 19, 2017, when the Rosebud Sioux Tribe Law Enforcement Services responded to a report of an individual in Mission, acting erratically and holding a firearm.  Charging Elk had previously been convicted of a crime punishable by imprisonment for a term exceeding one year, making it illegal for him to possess firearms.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   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.

This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Kirk Albertson prosecuted the case.

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