HUNTINGTON, W.Va. – A Huntington man caught with heroin in April 2017 was sentenced today to 14 months, announced United States Attorney Mike Stuart. Aubrey Gardner, 25, previously pled guilty to possession with intent to distribute heroin.  The Huntington Police Department and the Huntington FBI Drug Task Force conducted the investigation. 

“So many poison peddlers,” said United States Attorney Mike Stuart.  “But our efforts are relentless to rid West Virginia communities of drug traffickers.”

On April 29, 2017, officers conducted a traffic stop on a vehicle in Huntington.  Upon searching Gardner, officers located approximately 25 grams of heroin. 

United States District Judge Robert C. Chambers imposed the sentence.  Assistant United States Attorney Stephanie S. Taylor handled the prosecution.

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WASHINGTON – Eight New Orleans, Louisiana-area defendants have pleaded guilty for their participation in a conspiracy to obtain oxycodone through fraud by using fictitious prescriptions.  Six of the eight defendants have also pleaded guilty for the roles in a scheme to possess with intent to distribute oxycodone on the black market. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Stephen G. Azzam of the U.S. Drug Enforcement Administration (DEA)’s New Orleans Field Division made the announcement. 

Jesse J. Wildenfels, 39, of Metairie, Louisiana, pleaded guilty today to a dual-object conspiracy to acquire and obtain possession of oxycodone by fraud and to possess oxycodone with the intent to distribute.  On Oct. 17, Luis R. Cabrera Jr., 38, of Norco, Louisiana; Vicki J. Skeldon, 44, of Metairie; Stephanie N. Free, 28, of Gretna, Louisiana; Jarrod A. Doubleday, 47, of Livingston, Louisiana; John A. Doubleday, 52, of Place, Louisiana; Whitney J. Swan III, 48, of Saint Rose, Louisiana; and Cynthia B. Foret, 41, also of Norco, pleaded guilty to their roles in violating the Controlled Substances Act.  Cabrera, Skeldon, Free, John Doubleday and Swan pleaded guilty to a dual-object conspiracy to acquire and obtain possession of oxycodone by fraud and to possess oxycodone with the intent to distribute.  Jarrod Doubleday and Foret pleaded guilty to conspiracy to obtain possession of oxycodone by fraud.  

“Driven by greed and addiction, these eight defendants manipulated a system established to assist patients with legitimate medical conditions,” said FBI Special Agent in Charge Rommal.  “Through their illicit gains, these defendants contributed to the daily oxycodone epidemic taking this nation by storm. By removing these defendants from our streets and communities, the FBI, in conjunction with our federal, state, and local law enforcement partners were able to take the drugs out of an addict’s hands and hopefully save a life or two.”

The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

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RICHMOND, Va. – A Richmond man pleaded guilty today to unauthorized access to a protected computer and aggravated identity theft.

According to court documents, Christopher Brannan, 31, a former teacher at Lee-Davis High School, intentionally accessed without authorization internet and email accounts, including Apple iCloud, Yahoo!, and Facebook accounts, and thereby obtained complete iCloud backups, photographs, and other private information belonging to more than 200 victims, including both celebrities and noncelebrities. He hacked email accounts by answering security questions that he could easily research by reviewing victims’ Facebook accounts. Brannan also gained access to victims’ accounts by using phishing email accounts to send fraudulent email addresses designed to look like legitimate security accounts from Apple, misrepresenting to the victims that the emails had come from Apple in order to obtain username and password information for the victims’ internet accounts. Because of the victims’ belief that the email had come from Apple, the victims would provide their usernames and passwords. Brannan would then use the fraudulently obtained usernames and passwords to access the victims’ email accounts, search the content of the victims’ email accounts, and obtain personal information, such as sensitive and private photographs and videos, including nude photographs. Brannan would use software such as Elcomsoft to download full iCloud accounts, which he then perused for personal information. Authorities identified Brannan as a suspect during a Los Angeles-based FBI investigation into hacked iCloud accounts commonly known as “Celebgate.”

Brannan pleaded guilty to unauthorized access to a protected computer and aggravated identity theft. He faces a mandatory minimum term of two years in prison for the aggravated identity theft charge, which shall run consecutively to any sentence imposed for the offense of unauthorized access to a protected computer. The total maximum possible penalty is seven years in prison. The parties have made a recommendation, which is not binding on the court, that Brannan be imprisoned for 34 months when he is sentenced on Jan. 25, 2019.  Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

This matter stems from an investigation conducted by the FBI in Los Angeles into the leaks of photographs of numerous female celebrities in September 2014. The U.S. Attorney’s Office for the Central District of California, which is leading the prosecution, filed charges against Brannan in April, and the parties later agreed to transfer the case to the Eastern District of Virginia for further prosecution.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea. Assistant U.S. Attorneys Brian R. Hood of the Eastern District of Virginia and Ryan White of the Central District of California are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-118.

ROCK ISLAND, Ill. – Sentencing is scheduled in February 2019 for Ronald T. Walker, 37, of Rock Island, Ill., who pleaded guilty on Oct. 19, 2018, to one count of robbery, in violation of the Hobbs Act, before U.S. District Judge Sara Darrow.  

As part of his plea, Walker admitted that on Dec. 18, 2017, he arranged for the purchase from a drug dealer of a small amount of marijuana. Instead of purchasing the drugs, however, Walker stabbed his would-be drug dealer and took the marijuana by force. Walker’s assault was so vicious that the point of his knife was embedded in his victim’s skull for several months. 

Robbery of drugs or drug proceeds, even illegal ones, constitutes a violation of the Hobbs Act, which criminalizes robberies affecting interstate commerce. Violators face up to 20 years in prison, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment. Additional, consecutive penalties are added if firearms are involved. 

Walker’s sentencing is currently set for Feb. 19, 2019, before Judge Darrow. Walker has remained in the custody of the U.S. Marshals Service since he was arrested and indicted on the federal charge in June 2018.

The charge is the result of an investigation by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Assistant U.S. Attorneys Donald B. Allegro and Kevin C. Knight are prosecuting the case.

Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Sitka man has been indicted on federal charges alleging he illegally constructed and possessed a pipe bomb. 

Zachary Loewen, 28, of Sitka, was named in the indictment charging him with possession of an unregistered destructive device, unlawfully making a destructive device, and for being a felon in possession of an explosive.  Loewen’s arraignment hearing has been scheduled for Oct. 25, 2018, at 11:30 a.m.

According to the federal indictment, on or about Oct. 4, 2018, Loewen knowingly possessed and made an explosive device, specifically a pipe bomb, not registered to him in the National Firearms Registration and Transfer Records.  The indictment further alleges that, on Oct. 14, 2018, Loewen knowingly received and possessed a combination of parts intended for the construction of pipe bombs.  

According to state court documents, after failed attempts at purchasing a firearm due to his prior felony convictions, Loewen began purchasing materials to construct a pipe bomb. On Oct. 4, 2018, near Herring Cove Road in Sitka, Loewen allegedly attempted to ignite the bomb with a candlewick fuse, but abandoned the explosive device after a failed ignition. 

Loewen has two prior felony convictions in the state of Washington and was therefore prohibited from possessing explosives.  If convicted, Loewen faces a maximum penalty of up to 10 years in prison on each count, as well as a fine of up to $250,000.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

The Sitka Police Department (SPD), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the indictment in this case.  This case is being prosecuted by Assistant U.S. Attorney Kimberly Sayers-Fay.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.  In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

SACRAMENTO, Calif. — Zendell Despenza, 34, was sentenced by U.S. District Judge Kimberly J. Mueller to 10 months in prison, followed by five years of supervised release, for failing to register as a sex offender, U.S. Attorney McGregor W. Scott announced.

According to court documents, in June 2014, Despenza moved from Nevada to Sacramento and knowingly failed to register as a sex offender as was required by the Sex Offender Registration and Notification Act (SORNA) based on his conviction for attempted sexual assault in the state of Nevada. Despenza lived and worked in the Eastern District of California for approximately two years, and on two separate occasions during that two-year period submitted a sex offender registration form in Nevada that falsely indicated he was unemployed and residing at addresses in Las Vegas.

This case was the product of an investigation by the U.S. Marshals Service and the Sacramento County Sheriff’s Sex Assault Felony Enforcement (SAFE) Team. The SAFE Team is a multi-agency task force operating in Northern California that monitors sex offenders and conducts investigations regarding sex offender registration violations. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.

FRESNO, Calif. — Chief U.S. District Judge Lawrence J. O’Neill sentenced Stefan Ramirez, 34, of Fresno, today to 12 years and seven months in prison for receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.

The prison sentence imposed will be followed by five years of supervised release, during which Ramirez will be required to register as a sex offender, and his access to minors, computers, and the internet will be restricted.

“Consumers and distributors of child pornography often try to rationalize their actions as passive behavior,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “It is most certainly not passive. Children are physically abused during the production of child pornography. Not only do consumers of child pornography seek gratification from vicariously participating in that abhorrent activity, but they also often make those images available to others through file sharing. The FBI and our partner agencies work to ensure consumers and distributors of child pornography understand their behavior is utterly contrary to the values of American society and will be met with rigorous investigation and lengthy prison sentences.”

According to a plea agreement and sentencing documents, Ramirez admitted that he used a file-sharing program to obtain and make available thousands of images of children being sexually abused. Some of the depictions were of infants and toddlers, and some included sadistic conduct and violence. Judge O’Neill  awarded restitution to seven victims whose images Ramirez obtained for damages that they established that Ramirez caused.

This case was the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.

BAKERSFIELD, Calif. — Noel Carter, 46, of Bakersfield, pleaded guilty today to conspiring with Bakersfield police officers Damacio Diaz and Patrick Mara to distribute methamphetamine and marijuana that Diaz and Mara seized in the course of their duties as police officers, U.S. Attorney McGregor W. Scott announced.

According to court documents, from April 2012 to August 2015, Carter conspired with Diaz and Mara, who deliberately failed to submit the seized drugs into the BPD evidence room and instead provided the stolen narcotics to Carter so that Carter could sell those narcotics for profit.

In May 2016, Diaz pleaded guilty to possessing with the intent to distribute methamphetamine, as well as receiving bribes and making a false income tax return. In June 2016, Mara pleaded guilty to conspiring to distribute, and to possess with the intent to distribute, methamphetamine. Both were removed from active duty with the Bakersfield Police Department and are currently serving federal prison sentences.

As part of the plea agreement, five counts of the indictment will be dismissed, but Carter will pay restitution to the victim of the embezzlement charged in those counts, Pacific Workplaces. According to the factual basis in the plea agreement, starting in September 2016 and up until his termination in September 2017, Carter was a contract manager for the Pacific Workplaces, a virtual office and short-term office rental business, and was responsible for the overall operation of the office. Carter admitted to embezzling money from the company and depositing the money into his personal account. During this one-year period, Carter fraudulently negotiated and embezzled the funds from at least 87 checks, totaling $70,251.

According to the plea agreement, Carter admitted that he failed to report the proceeds of his illegal activity from 2012 through 2017. He agrees that he will file amended returns for those years, correctly reporting $480,000 of previously unreported income.

This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation, and the Bakersfield Police Department. Assistant U.S. Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.

Carter is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 16, 2019. Carter faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Jarrod M. Langford, 27, of Orlando, Florida, was sentenced today by U.S. District Judge Dale A. Drozd to three years and six months in prison for conspiracy to commit credit card fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.

According to court documents, Langford, while serving with the United States Navy in Lemoore, California, conspired with others to fraudulently acquire and use credit card account numbers to purchase and resell over the internet voucher codes redeemable for consumer items such as wristwatches, jewelry, computer software applications, and electronic devices. Langford used various methods to fraudulently acquire other peoples’ credit card information, including purchasing the information on the internet.  In September 2012, Langford fraudulently possessed more than 2,500 records of credit card account numbers and the associated account holders’ personal identifying information, such as names, addresses, telephone numbers, and email addresses.

To hide his actual location and conceal his involvement in these fraudulent activities, Langford installed an application on his computers that established a virtual private network (VPN) that allowed him to conduct anonymous encrypted internet sessions and gave the appearance that he was located outside of California. In his plea agreement, Langford admitted to fraudulently purchasing approximately $340,000 of consumer products and unauthorized voucher codes redeemable for such items.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher D. Baker prosecuted the case.

ALBANY, NEW YORK – Harbin Omar Maldonado-Fuentes, age 47, and a citizen of Honduras, was sentenced today to time served (30 days in jail) for illegal re-entry into the United States.

The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).

Maldonado-Fuentes was arrested by Border Patrol in Arizona after he was caught entering the United States from Mexico without inspection on September 17, 2004.  Maldonado-Fuentes was removed from the United States to Honduras on October 20, 2004.  On September 22, 2018, he was arrested by an ICE Officer in Walton, Delaware County, New York.   A fingerprint check of Maldonado-Fuentes resulted in the discovery of the prior removal.  Maldonado-Fuentes admitted that he returned to the United States without permission following the 2004 removal. 

Following the sentencing, Maldonado-Fuentes was remanded to the custody of the Department of Homeland Security, for removal proceedings.  

This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

OKLAHOMA CITY – OLSEN ORTHOPEDICS, P.L.L.C., an Oklahoma City orthopedic company, has agreed to pay $455,000 to settle civil allegations that it submitted false claims to Medicare and TRICARE, announced Robert J. Troester of the U.S. Attorney’s Office.

The United States alleges that from December 1, 2011, through May 5, 2016, Olsen Orthopedics administered by injection Orthovisc and Euflexxa to Medicare and TRICARE beneficiaries.  Medicare and TRICARE will only reimburse health care providers for drugs and devices approved by the U.S. Food and Drug Administration.  According to the United States, Olsen Orthopedics’ claims to Medicare and TRICARE were false because the Orthovisc and Euflexxa it administered was purchased outside the United States and did not have FDA approval for use in the United States.

In order to resolve the allegations, Olsen Orthopedics agreed to pay $455,000.

In reaching this settlement, Olsen Orthopedics did not admit liability, and the government did not concede that its claims lack merit.  The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty of litigating the case.

This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations; the FBI; and the Defense Criminal Investigative Service.  It was prosecuted by Assistant United States Attorneys Ronald R. Gallegos and Scott Maule.

A Texas couple who had thousands of online sales of fentanyl and other drugs pleaded guilty to drug crimes.

Matthew and Holly Roberts pleaded guilty to conspiracy to distribute controlled substances and other crimes. They are scheduled to be sentenced on Feb. 7, 2019.

The Roberts are both 35 and from San Antonio. The Roberts’ created and operated several dark net marketplace accounts, including MH4LIFE, TRAPPEDINTIME, FASTFORWARD and MRHIGH4LIFE. They operated these accounts on dark net marketplace websites, including Dream Market, Silk Road, AlphaBay, Darknet Heroes League, Nucleus and several others.

MH4LIFE had the highest number of verified transactions worldwide of any fentanyl dealer on the dark net based upon a review of the Dream Market when the Roberts’ were arrested earlier this year, according to court documents.

They used these accounts between 2011 and May 12, 2018 to possess and distribute fentanyl, MethoxyAcetylFentanyl, other fentanyl analogues, heroin, cocaine, methamphetamine, MDMA, LSD, marijuana, Xanax, Oxycodone and other drugs.

The Roberts’ used private messaging, encryption software, Virtual Private Networks and proxies through the TOR network to provide security for the criminal organization. They used decoys, such as glow bracelets and other mundane items, to hide the fact they were mailing narcotics..

They also used cryptocurrency to launder their criminal proceeds. Customers used digital currency to purchase narcotics, which the defendants laundered and ultimately converted into official fiat currency and spent on person goods and services, according to court documents.

This case was prosecuted by Assistant U.S. Attorneys Matthew J. Cronin and Daniel J. Riedl following an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service, Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The charges are part of “Operation Darkness Falls,” a multiagency federal task force specializing in the investigation and prosecution of dark net criminals.

Roanoke, VIRGINIA – United States Attorney Thomas T. Cullen announced that the United States Attorney’s Office is proud to partner with local, state, and federal law enforcement agencies, the Roanoke Area Youth Substance Abuse Coalition (RAYSAC), the Drug Enforcement Administration, and the Western Virginia Water Authority to collect expired, unused, and unwanted prescription drugs for safe destruction on Saturday, October 27, 2018, from 10 a.m. to 2 p.m. at 13 area locations in the Roanoke Valley, and many more locations throughout the district.  The public is invited to bring unused, unwanted, and expired medications to this free and anonymous event that is part of the DEA’s nationwide prescription drug “Take-Back” program that seeks to prevent prescription pill abuse, theft, and environmental concerns.

“Properly disposing of unused and expired medications is an important part of making our communities safer,” United States Attorney Cullen stated today.  “This initiative provides an opportunity to clean out your medicine cabinet and prevent accidental ingestion by children in your homes.  It also helps reduce the risk of abuse and misuse of prescription drugs.  We can all be a part of combatting the opioid epidemic by keeping our own homes free from unwanted and expired medications.”

This is the Roanoke Valley’s 16th take-back event.  To date, over 307,000 pounds of prescription medications have been turned in across the Commonwealth, including over 30,000 pounds at the last event in April 2018, with the Roanoke-area collection sites being one of the largest collection locations in the state.   This Saturday there will be 13 collection locations in the valley:  the Department of Veterans Affairs hospital entrance at Building 143 in Salem, CVS Pharmacy parking lots at 9th Street SE and Towers Shopping Center, CVS Pharmacy at Target in Roanoke, Franklin County Sheriff’s Office Westlake Substation in Hardy, Kroger parking lots on Lake Drive Plaza in Vinton, Tanglewood Mall, Valley Gateway, and in Daleville, the Roanoke County Fire and Rescue Station #1 on Hershberger Road, the Super Shoes parking lot on West Main in Salem, Walgreens parking lot at the corner of Electric Road and Brambleton Avenue, and Virginia State Police Division VI Headquarters on Main Street in Salem. 

The public is encouraged to visit https://takebackday.dea.gov/ to find other collection sites sponsored by law enforcement throughout the region.  The site also includes a locator feature to find year-round disposal collection sites hosted at local law enforcement agencies. 

This initiative addresses vital public safety and public health issues.  Medications that languish in home cabinets are highly susceptible to diversion, misuse, and abuse.  Rates of prescription drug abuse in the U.S., in the valley, and throughout the district are increasing at alarming rates, as are the numbers of accidental poisonings and overdoses due to these drugs.  Studies show that 90% of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.  In fact, the majority of commonly-abused drugs by teenagers are prescription medications.

In addition, flushing medications down the drain can result in trace amounts of pharmaceuticals showing up in our nation’s waterways.  This initiative offers a safe and convenient disposal option for district residents.

This initiative is sponsored by RAYSAC, the Western Virginia Water Authority, Prevention Council of Roanoke County, Botetourt County Sheriff’s Office, Franklin County Sheriff’s Office, U.S. Department of Veteran’s Affairs Police, U.S. Drug Enforcement Administration, Roanoke County Police Department, Roanoke Police Department, Roanoke County Sheriff’s Office, Roanoke Valley Academy of Medicine, Salem Police Department, the U.S. Attorney’s Office for the Western District of Virginia, Vinton Police Department, Virginia State Police, Vinton Police Department, and the Virginia National Guard.

By working together to provide a free, secure place to dispose of unwanted medications, these partner agencies are helping prevent drug abuse, protecting our valley’s waterways, and making our communities safer. 

MUSKOGEE, OKLAHOMA – One year ago, the Department of Justice (“DOJ”) announced the revitalization and enhancement of Project Safe Neighborhoods, commonly referred to as “PSN.” PSN is a key component of DOJ’s violent crime reduction strategy which is a top priority of Attorney General Jeff Sessions. PSN emphasizes, among other things, the importance of collaboration between federal, state, local, and tribal law enforcement agencies to focus enforcement efforts on the most violent offenders. Today, the United States Attorney’s Office for the Eastern District of Oklahoma is reporting the results of its efforts to combat violent crime over the last year. 

The Eastern District has seen a substantial increase in violent defendants indicted since October 2017, with nearly a 90% increase when compared to the previous fiscal year. During the same period there has been an increase of over 100% in the number of defendants indicted for crimes related to drug trafficking. Forty-nine defendants were indicted for violent crimes and 51 for drug offenses. Nearly 75% of all cases indicted in federal court in the Eastern District in fiscal year 2018 were for violent crime or drug offenses. 

“The increase in defendants indicted is a direct reflection of the hard work by this office and law enforcement agencies – federal, state, local, and tribal – throughout the district. But it also shows the determination to utilize the prosecuting authority that offers the best alternative for a long-term solution to violent crime,” United States Attorney Brian Kuester said. “Frequently jurisdiction is appropriate in state or federal district court. Because of open communication and trusted relationships, we are all doing a better job of considering the option that best serves the needs of the community.”

Offenses included in the violent crime category are child exploitation, bank robbery, kidnapping, domestic violence, violent crime in Indian Country, and federal weapons offenses. The predominant drug offenses prosecuted in federal courts are distribution, possession with intent to distribute or trafficking and generally involve significant quantities of illegal narcotics. In the Eastern District of Oklahoma Methamphetamine continues to be the most commonly seized drug. Cocaine and Fentanyl seizures are rare but have occurred. 

“I consider our work against those in the drug trade as vital to making communities safer. People in the business of selling or transporting large quantities of illegal narcotics are in an inherently dangerous business which goes hand-in-hand with guns and violence. Efforts by law enforcement agencies to combat drug trafficking is an integral part of fulfilling their duty to public safety. Investigating and prosecuting drug dealers, dangerous felons that possess weapons, predators of children, and violent offenders who commit crimes in Indian Country has the positive result of reducing the number of violent people that are free to inflict their violence on the public,” said Kuester. 

The following are just a few of the cases prosecuted and defendants sentenced in the Federal District Court for the Eastern District of Oklahoma over the last twelve months:

•    Billy Hershell Smith II of Tahlequah was sentenced to 293 months’ imprisonment for Sexual Exploitation of Children
•    Michael Leon Johnson of Okmulgee was sentenced to 210 months’ imprisonment for Felon In Possession of Firearm & Ammunition. Johnson had three previous convictions for a violent felony, a serious drug offense, or both
•    Blake Alan Miller of Muskogee was sentenced to 180 months’ imprisonment for Possession with Intent to Distribute Methamphetamine
•    John Carl Berryhill of Okmulgee was sentenced to 168 months’ imprisonment for Possession of Certain Material Involving the Sexual Exploitation of Minors
•    James Paul Brown of Stilwell was sentenced to 188 months’ imprisonment for Possession with Intent to Distribute Methamphetamine and Felon In Possession of Firearm
•    Justimiano Perez Diaz of Stigler was sentenced to 120 months’ imprisonment for Enticement of a Minor Using the Internet
•    Jason Delaney Kiplinger of Oklahoma City was sentenced to 262 months’ imprisonment for Possession with Intent to Distribute Methamphetamine
•    Brian Thomas Green, Kalvin Kyle McCown, and Travis Lee Hill, all of the Longview, Texas, area, were sentenced to 25, 20, and 15 years’ imprisonment respectively for their roles in the kidnapping and killing of Kenneth Earl Ayres
•    Deana Marie Oakes of Panama, Oklahoma was sentenced to 168 months imprisonment for Possession with Intent to Distribute Methamphetamine
•    Michael Aaron Campbell of Muldrow was sentenced to 120 months’ imprisonment for Enticement of a Minor Using a Facility of Interstate Commerce

“These are not all PSN cases, but the interagency cooperation that is at the heart of the PSN Program has very clearly taken root in all areas of the work that we do, particularly in those cases involving violent offenders. PSN promotes the interagency cooperation that is a cornerstone of maximizing our impact on our public safety priority,” Kuester added.
 

Fort Myers, FL – United States Attorney Maria Chapa Lopez announces today that Eye Centers of Florida has agreed to pay the United States $525,000 to resolve allegations that it violated the False Claims Act by knowingly falsifying medical records in order to bill for cataract surgeries on patients that would not have otherwise qualified for the surgery. 

Founded in 1971, Eye Centers of Florida is an ophthalmology practice owned by David C. Brown, M.D. Eye Centers of Florida currently has 11 office locations throughout southwest Florida, with the main clinic located in Fort Myers. 

The term “visual acuity” refers to the sharpness or clarity of vision. An individual’s visual acuity is generally measured using vision-testing charts to determine the person’s ability to distinguish letters or other images of various sizes at a fixed distance. “Normal” vision is 20/20. Generally, Medicare will consider a cataract surgery medically necessary and reasonable if, among other things, a patient has a visual acuity worse than 20/40 with impairment of ability to carry out needed or desired activities. 

According to the settlement agreement it was the United States contention that, from January 1, 2012, through March 1, 2014, employees of Eye Centers of Florida knowingly falsified the medical records of certain Medicare Advantica patients that were referred to Dr. Brown for a cataract surgery evaluation in order to make it appear that the patients had a worse visual acuity score than they had actually received. The United States contended that as a result of these practices, Eye Centers of Florida was able to bill for cataract surgeries for patients that would not have otherwise qualified under Medicare guidelines.

“Altering records in order to justify billing for unnecessary invasive medical procedures is a violation of the trust we place in our health care providers and potentially places lives at risk,” said U.S. Attorney Chapa Lopez. “Our Civil Division works tirelessly in the pursuit of providers who fraudulently bill Medicare, or any other federal health care program, for services that are medically unnecessary.”

“Altering results of examination scores to conduct invasive ocular procedures, as alleged, threatens the health of those patients, the public’s faith in the medical profession, and the financial integrity of Medicare and Medicaid,” said Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General. “We will continue to safeguard these taxpayer-funded programs and the beneficiaries who rely on them.” 

The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by two former employees of Eye Centers of Florida, Patti Nilsson and Joann Smith. Nilsson and Smith sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. Nilsson and Smith will receive $115,500 of the proceeds from the settlement with Eye Centers of Florida.

This settlement resulted from an investigation coordinated by Assistant U.S. Attorneys Kyle S. Cohen and David Sullivan, with assistance from the U.S. Department of Health and Human Services Office of Inspector General and the FBI.

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

The case is captioned U.S. ex. rel. Nilsson and Smith v. Eye Centers of Florida,Docket Number 2:13-cv-842-FtM-38CM. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.

WASHINGTON – Philadelphia-based Vascular Access Centers L.P., along with its 23 subsidiary and related corporations (collectively “VAC”), has agreed to pay at least $3.825 million to resolve claims that it violated the False Claims Act by billing Medicare for non-reimbursable vascular access procedures performed on End Stage Renal Disease (ESRD) beneficiaries and engaging in an alleged kickback scheme related to referrals for such procedures, the Department of Justice announced today.

The settlement resolves allegations that VAC, which currently operates facilities in eight states, billed Medicare for vascular access surgical procedures performed on ESRD beneficiaries, including fistulagrams and percutaneous transluminal angioplasties, without all of the required medical documentation supporting the necessity of the procedures. The settlement also resolves allegations that VAC submitted false claims to Medicare for services that resulted from referrals that VAC had induced through improper remuneration to physician investors and medical directors, in violation of the Anti-Kickback Statute.  The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.

VAC has agreed to pay a minimum of $3.825 million in a series of fixed payments over five years, and could pay up to a maximum of $18,360,794, if certain contingencies are triggered. 

“Medicare patients with End Stage Renal Disease, like other beneficiaries, are entitled to receive care in accordance with their clinical needs and not based on the financial interests of healthcare providers,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division.  “Entities and individuals that attempt to profit through improper financial incentives and thereby bypass independent clinical decision-making will be held accountable.”

“Medicare fraud hurts not only patients and honest practitioners, but all taxpayers who pay hard-earned dollars into the nation’s public fisc,” said United States Attorney for the Eastern District of Louisiana Peter G. Strasser.  “The favorable resolution of this False Claims Act matter illustrates our firm commitment to use all available remedies, both civil and criminal, to attack healthcare fraud at its source.”

VAC has also entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG), requiring the company to engage in significant compliance efforts over the next five years, including a focus on VAC’s arrangements with physicians and other health care providers for compliance with the Anti-Kickback Statute.

“Our Corporate Integrity Agreement provides future protection for patients and federal health care programs through controls and monitoring designed to ensure that VAC only provides medically necessary services to patients,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services.  “Our CIA will also help try to ensure that doctors who are referring patients for medical procedures are doing so based on the best interest of the patient, and not based on financial considerations.”

The settlement resolves allegations originally brought in two lawsuits filed by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  The whistleblowers will collectively receive at least $612,000 as their share of the settlement.  

The United States’ investigation in one case was handled by the U.S. Attorney’s Office for the Southern District of New York, and in the second case was a coordinated effort by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Louisiana. The Department of Health and Human Services Office of Inspector General assisted in both investigations.

The cases are captioned United States ex rel. Levine v. Vascular Access Centers, L.P., et al., Case No. 12-civ-5103 (S.D.N.Y.), and United States ex rel. Boogaerts, et al. v. Vascular Access Centers, L.P., et al., Case No. 2:17-cv-02786-EEF-KWR (E.D. La.).

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Ocala, Florida – United States Attorney Maria Chapa Lopez announces that Willie Iva Jennings (35, Reddick) today pleaded guilty to possessing a firearm as a convicted felon. Jennings faces a minimum mandatory penalty of 15 years, and up to life, in federal prison. A sentencing date has not yet been set.

According to the plea agreement, on July 15, 2018, law enforcement officers discovered Jennings behind the wheel of a recently stolen vehicle. Investigators had been led to the location using the car’s global positioning system. Jennings, the sole occupant of the car, did not have a valid Florida driver license.

While taking Jennings into custody, investigators found a loaded semi-automatic firearm in his pocket. Jennings, a convicted felon who is prohibited from possessing firearms under federal law, admitted that the firearm belonged to him. In addition, Jennings’s criminal history, including at least three felony convictions for the sale of cocaine and a separate felony conviction for resisting an officer with violence, qualifies him for enhanced sentencing as an Armed Career Criminal.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ocala Police Department, and the Marion County Sheriff’s Office.  It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Three men, all from Waterloo, Iowa, were sentenced in federal court in Cedar Rapids on October 16, 2018, because they trafficked cocaine and crack cocaine. 

 John Dwayne Phillips, age 50, was sentenced to 72 months of imprisonment and supervised release of six years.  The sentence came after he pled guilty to conspiracy to distribute cocaine and crack cocaine, distribution of cocaine, and possession with intent to distribute cocaine.  Phillips had previously been convicted of delivery of a controlled substance and possession of marijuana, third offense, in state court. 

Darius Fontaine Shears, age 31, was sentenced to 180 months of imprisonment and supervised release of eight years based upon his guilty pleas to conspiracy to distribute cocaine and cocaine base and possessing a firearm in furtherance of a drug crime.  Shears had previously been convicted of possession of cocaine with intent deliver in state court.  

Alexander Martin, age 51, was sentenced to 132 months of imprisonment and supervised release of ten years.  Martin pled guilty to conspiracy to distribute crack cocaine.  Martin had previously been convicted of possession of crack cocaine with the intent to deliver and possession of cocaine with the intent to deliver in state court. 

Phillips, Shears, and Martin were indicted along with co-defendants Alston Campbell, Sr., Alston Campbell, Jr., William Campbell, and Willie Carter.  These four men were convicted at trials held earlier this year.  All four will be sentenced at a later date.

The evidence at the trials for the co-defendants showed that the seven men were working together with others to sell cocaine and crack cocaine in the Waterloo area.  Evidence at the trials included wiretaps done by both the DEA and FBI that showed the group had pounds of cocaine being brought to Iowa from out of state.  The group then redistributed it as powder and crack cocaine in Waterloo. 

The case is being prosecuted by Assistant United States Attorneys Emily K. Nydle and Rich Murphy and was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol. 

Phillips, Shears, and Martin are being held in the United States Marshal’s custody until they can be transported to a federal prison.  All three were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. 

There is no parole in the federal system.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 17-cr-2045.

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A Waterloo man who possessed a gun after two previous felony convictions and ran from the police during a traffic stop was sentenced October 16, 2018, to more than two years in federal prison.

Denzale Ratliff, age 24, from Waterloo, Iowa, received the prison term after a June 25, 2018 guilty plea to possession of a firearm by a felon.

Ratliff was in possession of a gun while traveling in a car in Waterloo.  Waterloo police officers stopped the car.  Ratliff got out and ran from officers into a nearby residential area.  Ratliff dropped the gun in the backyard of one of the houses.  Officers recovered the gun and caught Ratliff.  Ratliff had two prior felony convictions for burglary in state court.

Ratliff was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Ratliff was sentenced to 28 months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.  In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

Ratliff is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Federal Bureau of Investigation, and the Waterloo Police Department. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-cr-02017.

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WASHINGTON:  United States Attorney Halsey B. Frank joined the Department of Justice (DOJ) and the Department of the Interior (DOI) in announcing a dramatic expansion of the federal government’s key program that provides tribes with access to national crime information databases, DOJ’s Tribal Access Program for National Crime Information (TAP). The expansion includes the Penobscot Nation.

“I am pleased that the Penobscot Nation will have access to the FBI’s national crime databases through TAP,” said U.S. Attorney Frank.  “The ability to access and exchange crime information is extremely valuable.  It will enable tribal government to better investigate criminal activity, police their community, and keep their community safe.”

“Access to TAP-FULL, will equip the Penobscot Nation Law Enforcement Program with the means to effectively collaborate with all local and state law enforcement agencies, by informing them of persons that are needing protection orders served upon them, getting an accurate account to other agencies of the persons that have been arrested for criminal offenses with the tribe’s jurisdiction and that are out on bail with restrictions and those persons adjudicated and have certain probation conditions they have to abide by,” said Department of Public Safety Chief Robert Bryant.  “TAP will also allow us to better protect victims of domestic violence by having orders of abuse or harassment entered into National Crime Information Center (NCIC) in a timely manner. The result is a safer community.”

By the end of 2019, DOJ will expand the number of TAP participating tribes by more than 50 percent—from 47 tribes to 72.  DOI will fund the instillation of TAP Kiosks at three locations where the BIA-Office of Indian Services (BIA-OIS) deliver direct service social services by the end of 2019 and DOI aims to expand TAP access at all 28 BIA-Office of Justice Services (BIA-OJS) operated law enforcement agencies and detention service centers.  These BIA locations will provide some degree of access to TAP for services delivered to more than 50 tribal communities that currently do not have any direct access. 

“Access to information is vital to effective law enforcement,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma and the Chairman of the Attorney General’s Native American Issues Subcommittee (NAIS).  “TAP will enhance and improve the ability of tribal law enforcement officers to serve their communities. The Native American Issues Subcommittee is proud to support the continued expansion of this tool throughout Indian Country.”

The NAIS is comprised of U.S. Attorneys with Indian Country in their federal districts. They advise the Attorney General regarding the development and implementation of policies pertaining to justice in Indian Country. The NAIS identified “increased law enforcement resources” as one of four priority areas to improve justice services in Indian Country. Support for and increased dissemination of the TAP was unanimously supported by the U.S. Attorneys at a recent NAIS meeting in Indian Country in Tulsa, Oklahoma.

TAP, offered in two versions, TAP-FULL and TAP-LIGHT, allows tribes to more effectively serve and protect their communities by fostering the exchange of critical data through several national databases through the FBI’s Criminal Justice Information Systems network, including the NCIC, Next Generation Identification, National Data Exchange, National Instant Criminal Background Check System, Law Enforcement Enterprise Portal as well as other national systems such as the International Justice and Public Safety Network.   TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act; have orders of protection enforced nationwide; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.

TAP-FULL consists of a kiosk workstation that provide access to national systems and is capable of processing finger and palm prints, as well as taking mugshots and submitting records to national databases. TAP-LIGHT is software for criminal agencies that include police departments, prosecutors, criminal courts, jails, and probation departments. Both versions provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purpose.  TAP is currently available to 47 tribes nationwide with over 220 tribal criminal justice and civil agencies participating.

For more information on TAP, including a list and map of present TAP-FULL and TAP-LIGHT tribes, visit www.justice.gov/tribal/tribal-access-program-tap

For more information about the DOJ’s work on tribal justice and public safety issues, visit:  www.justice.gov/tribal.