COLUMBUS, Ohio – A federal grand jury has charged a Central Ohio doctor with charges related to a health care fraud scheme that included marketing prescription creams in Sav-a-Lot and low-income neighborhoods and persistently mailing those creams to Medicaid customers, as well as prescribing and distributing Suboxone without medical necessity.

Bernard Oppong, 60, of Blacklick, Ohio was charged in a seven-count indictment on October 30 and appeared in federal court today at 9am before U.S. District Judge Algenon L. Marbley.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Steven W. Schierholt, Executive Director, State of Ohio Board of Pharmacy announced the charges.

According to the indictment, from January 2013 until April 2017, Oppong conspired to commit health care fraud.

Oppong was employed as a doctor at Health and Wellness Medical Center located on Perimeter Drive in Dublin. The center is affiliated with Health and Wellness Pharmacy on Blazer Parkway in Dublin. Co-defendants also previously operated a pharmacy location within Sav-a-Lot on Mock Road in Columbus.

Specifically, it is alleged Oppong and others sought to enrich themselves by billing for compound creams that were not provided or were not medically necessary, billing for counseling services that were not provided, billing for individual counseling sessions that actually occurred in a group setting and billing for counseling services performed by an unqualified individual when there was no proper supervising physician.

Compound Creams

As part of the conspiracy, it is alleged Oppong and others prescribed and Medicaid was billed for compound creams to treat pain, scarring and acne. Health and Wellness Pharmacy billed Medicaid $3 million for the creams, and Oppong was the ordering provider for more than half a million dollars of the claims.

For example, between January 2014 and April 2015, Health and Wellness Pharmacy submitted 1,436 claims for one compound cream, known as VersabaseA. The pharmacy with the second-highest amount of claims for that cream in that time period only submitted 202 claims.

During the first quarter of 2015, Health and Wellness would sometimes bill for less than 10 prescriptions per day, and on other days it would bill for as many as 477 prescriptions. It also billed for filling prescriptions on Saturdays and Sundays when the pharmacy was not open.

It was further part of the alleged conspiracy that co-conspirators billed for the creams with no medical necessity, as patients never requested the creams, were never actually prescribed them and had never met with Oppong.

The pharmacy allegedly marketed the compound creams at Clinic 5 (a Suboxone clinic), Sav-a-Lot and through a mobile van unit.

It is alleged patients with CareSource were targeted and told they were receiving free samples of pain cream. Then they began to receive more cream in the mail without requesting more. These were also billed to CareSource. 

Customers at Sav-a-Lot and in low-income neighborhoods were asked to fill out a survey asking about any conditions that they suffered from. Then, they would allegedly receive the compound creams in the mail every month, even when customers directed the co-conspirators to stop sending them. Many of these customers never met with a doctor, nor did they know Oppong, the prescribing physician.

Suboxone

Oppong was registered through the DEA to prescribe the drug addiction treatment Suboxone to up to 275 patients at any one given time.

Health and Wellness Medical Center allegedly submitted fraudulent claims to Medicaid for psychotherapy services that were never rendered to patients.

Specifically, patients indicated they would sit in a room with a timer. When the timer went off, they were allowed to leave and receive their Suboxone prescription, which was written by Oppong and co-conspirators. No counseling services were provided during this time. Some patients reported coloring in coloring books during the time they were in the room.

Oppong allegedly pre-signed prescriptions for Suboxone and left them at the medical center for anyone to distribute. Prescriptions were issued to patients who had repeatedly failed urine tests.

It was part of the conspiracy, according to the indictment, that the medical center treated patients paying with cash differently than those with insurance. The patients paying with cash only had appointments every two weeks or once a month, and paid $300. Insured patients had appointments three times a week. Cash-paying patients were only required to attend 15 to 30 minutes of counseling, while insured patients were required to stay for one hour.

Oppong and co-conspirators averaged more than 150 patients per day.

Oppong is charged with one count of conspiracy to commit health care fraud and one count of executing a health care fraud scheme (each punishable by up to 10 years in prison), as well as four counts of making false health care statements (five years per count) and one count of conspiracy to distribute a controlled substance (15 years).

Darrell L. Bryant, 43, and Gifty Kusi, 34, both of Hilliard, were charged July 2017 in a related indictment and are scheduled for trial on December 3. Bryant and Kusi owned and operated both Health and Wellness Pharmacy and Health and Wellness Medical Center. They are each charged with one count of attempt and conspiracy to commit health care fraud and four counts of health care fraud.

A final defendant Jornel Rivera, 54, of Dublin, pleaded guilty in May 2018 to making false statements related to health care matters. Rivera served as the Medical Director of Health and Wellness Medical Center. His sentencing hearing has not yet been scheduled.

“Just as we aggressively investigate and prosecute those perpetuating the opioid epidemic through prescription pain-killing opioids, we must identify and hold accountable those who are fraudulently prescribing addiction-treatment opioids,” U.S. Attorney Glassman said. “If we hope to extricate ourselves from this epidemic, we must also put an end to the abuse of Suboxone.”

“Oppong is accused of prescribing treatments that weren’t medically necessary, that weren’t actually provided, or that were for people he never met,” said Ohio Attorney General Mike DeWine. “Drug treatment should be effective and honest, but in this case, our investigation found that it wasn’t.”

U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Office’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy, HHS-OIG, FBI and DEA, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are prosecuting the case.

This case is being prosecuted as part of the Department of Justice’s Opioid Fraud and Abuse Detection Unit. Assistant United States Attorney Flaherty represents the unit in the Southern District of Ohio, which is one of 12 Districts to receive funding for such a prosecutor.

An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

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PITTSBURGH, PA - A Johnstown, Pa. pharmacist has been indicted by a federal grand jury in Pittsburgh on charges of dispensing and distributing controlled substances and conspiring to distribute and dispense controlled substances, United States Attorney Scott W. Brady announced today.

The 109-count indictment, returned on Oct. 30, named Joseph M. Martella, 53, of Johnstown, Pa.

According to the indictment presented to the court, Martella owned and operated Martella’s Pharmacy located on Franklin Street in Johnstown. The indictment alleges that Martella, a pharmacist, conspired with Dr. Peter James Ridella, who previously pleaded guilty, and with an individual known as "J.R.", to create and submit unlawful prescriptions for oxycodone; oxycodone and acetaminophen, also known as Percocet; oxymorphone, also known as Opana; morphine sulfate, also known as MS Contin and hydrocodone and acetaminophen, also known as Vicodin, and then unlawfully dispensed those controlled substances to other persons.

The law provides for a maximum per count sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.

The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

BOSTON – Additional charges were filed on Tuesday, Oct. 30, 2018, against a Chinese national in connection with violating export laws by conspiring with, among others, employees of an entity affiliated with the People’s Liberation Army (PLA) in China to illegally export U.S. origin goods to China.

Shuren Qin, a Chinese national residing in Wellesley, was charged in a superseding indictment yesterday with conspiracy to defraud the United States, smuggling, money laundering and making false statements to government officials. These charges are in addition to previous charges filed, including conspiracy to commit export violations, visa fraud, and conspiracy to defraud the United States. Qin was released on conditions pending trial.

According to court documents, Qin was born in the People’s Republic of China and became a lawful permanent resident of the United States in 2014. Qin operates several companies in China, including a company called LinkOcean Technologies, which imports goods and technology with underwater and marine applications to China from the United States, Canada and Europe. The indictment alleges that Qin communicated with and received taskings from entities affiliated with the PLA, including Northwestern Polytechnical University (NWPU), a Chinese military research institute, to obtain items used for anti-submarine warfare. In 2001, the Department of Commerce designated NWPU on its Entity List because of the national security risks NWPU poses to the United States. As described in the indictment, NWPU has worked closely with the PLA on the advancement of its military capabilities.  

Between approximately July 2015 and December 2016, it is alleged that Qin exported at least 60 hydrophones (devices used to detect and monitor sound underwater) from the United States to NWPU without obtaining the required export licenses from the Department of Commerce.  Qin and his company, LinkOcean, did so by concealing from the U.S. manufacturer of the hydrophones that NWPU was the true end-user and by causing false end-user information to be filed with the U.S. Government. In addition, on four separate occasions in connection with the export of hydrophones to NWPU, Qin allegedly engaged in money laundering by transferring or causing the transfer of more than $100,000 from Chinese bank accounts to bank accounts located in the United States with the intent to promote and facilitate his unlawful export scheme.

In 2014, it is alleged that Qin engaged in visa fraud in connection with his application to become a lawful permanent U.S. resident by falsely certifying that he was not seeking to “engage in export control violations or other unlawful activity” when, in fact, he engaged in numerous violations of U.S. export laws between 2012 and 2018 both in China and in the United States. Qin has also been charged with making false statements to government agents on two occasions regarding LinkOcean’s customers and its export activities. Specifically, the indictment alleges that during an interview with Customs and Boarder Protection (CBP) Officers in November 2017, Qin stated that he only exported instruments that attach to a buoy. However, Qin allegedly exported remotely-operated side scan sonar systems, unmanned underwater vehicles, unmanned surface vehicles, robotic boats, and hydrophones. The items that Qin failed to disclose to, and concealed from, CBP during this interview have military applications, and several of these items were delivered to military end-users in China. For instance, Qin exported a U.S.-manufactured remotely-operated side scan sonar system to a PLA Troop in November 2015. Qin also lied to investigators during an interview on or about June 21, 2018, when he stated that he did not have any customers on the Department of Commerce’s Entity List. In fact, the indictment alleges that Qin and LinkOcean had at least two such customers.

The charge of conspiring to violate U.S. export laws provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. The charge of visa fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiring to defraud the United States provides for a sentence of no greater than five years in prison, three years of supervised release, and a $250,000 fine. The charge of making false statements provides for a sentence of no greater five years in prison, three years of supervised release, and a $250,000 fine.  The charge or money laundering provides for a sentence of no greater than 20 years in prison, five years of supervised release, and a $500,000 fine. The charge of smuggling provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a $250,000 fine.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew Lelling; Peter C. Fitzhugh, Special Agent in Charge of the Homeland Security Investigation, Boston Field Office; Leigh Alistair-Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; William Higgins, Acting Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Leo Lamont, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office made the announcement today. Assistant U.S. Attorney B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, and Assistant U.S. Attorney Jason Casey, also of National Security Unit, are prosecuting the case.

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

CHICAGO — The U.S. Attorney’s Office will monitor the federal, state and local elections in Chicago and surrounding suburbs on Nov. 6, 2018, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, announced today.

As part of the monitoring effort, the office will operate a telephone hotline for citizens to report complaints related to the voting process.  Assistant U.S. Attorneys and other office personnel will monitor the hotline and respond to complaints, as needed.

The hotline number, staffed on Election Day only, is (312) 469-6157.

“A crucial part of our democracy is the integrity of our electoral system,” said U.S. Attorney Lausch.  “A citizen who is entitled to vote should not be hindered or prevented from doing so, and we stand ready to ensure the sanctity of the process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations wherever they occur.   The Department’s longstanding Election Day Program seeks to ensure public confidence in the voting process.

Federal voting-rights laws protect the rights of voters to mark their own ballot or be assisted by a person of their choice.  Actions designed to interrupt or intimidate voters at polling places may constitute a violation.  Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  Violations carry penalties ranging from one to ten years in prison, and fines of up to $250,000.

For information as to the location and hours of polling sites, Illinois residents are advised to contact the Illinois State Board of Elections by logging on to www.elections.il.gov or by calling (312) 814-6440.

Federal District Court Judge Nancy D. Freudenthal sentenced PASTOR JESUS LOPEZ-MARIANO, 30, of Guanajuato, Mexico on November 1, 2018 for illegal re-entry of a previously deported alien into the United States. Lopez-Mariano was arrested in Cheyenne, Wyoming. He received six months of imprisonment, subject to deportation upon completion of his sentence, and ordered to pay a $100.00 special assessment. The Department of Homeland Security Investigation investigated this case.

Federal District Court Judge Alan B. Johnson sentenced RIGOBERTO DE JESUS LOBO-AVALOS, 48, of El Salvador on October 29, 2018 for illegal re-entry of a previously deported alien into the United States. Lobo-Avalos was arrested in Natrona County, Wyoming. He received twelve months and one day of imprisonment, is subject to deportation upon completion of his sentence, and ordered to pay a $100.00 special assessment. The Department of Homeland Security Investigation investigated this case.

Chief Federal District Court Judge Scott W. Skavdahl sentenced RICARDO ST. VIL (a/k/a Rikado St. Vil, a/k/a Calico Riko), 30, of Opa-Locka, Florida on October 31, 2018 for access device fraud conspiracy. St. Vil was arrested in Miami, Florida. He received thirty-seven months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $222,756.10. The Wyoming Division of Criminal Investigation and the U.S. Secret Service investigated this case.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge for the New York Office of Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), announced today a settlement of a civil fraud lawsuit against DR. KENNETH S. FELDER (“FELDER”) and METROPOLITAN RETINA ASSOCIATES, INC. (“METROPOLITAN RETINA”).  The settlement resolves claims under the False Claims Act alleging that FELDER and METROPOLITAN RETINA billed Medicare and Medicaid for (1) substandard fluorescein angiography tests that were of such poor quality that they lacked all diagnostic value and were effectively worthless; and (2) ophthalmic ultrasounds that were either not performed or lacked any supporting documentation.  Under the terms of the settlement approved by U.S. District Judge Alison J. Nathan, FELDER and METROPOLITAN RETINA admitted and accepted responsibility for their conduct and agreed to pay $2,064,559 to the United States.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Dr. Kenneth Felder and Metropolitan Retina defrauded taxpayers when they billed Medicare and Medicaid for diagnostic tests that were shoddy, undocumented, and sometimes not performed at all.  This settlement sends a strong message that such conduct will not be tolerated.”

HHS-OIG Special Agent in Charge Scott J. Lampert said:  “The irresponsible behavior by Metropolitan Retina Associates and Dr. Kenneth Felder compromised the integrity of the Medicare and Medicaid programs, and wasted millions of taxpayer dollars.  HHS-OIG will continue to ensure that providers who do business with federally funded health care programs do so in an honest fashion.”

METROPOLITAN RETINA is an ophthalmology practice that is wholly owned by FELDER, with offices in Brooklyn and Manhattan.  As part of the settlement, FELDER and METROPOLITAN RETINA admit, acknowledge, and accept responsibility for the following conduct: 

• FELDER and METROPOLITAN RETINA frequently submitted claims to Medicare and Medicaid for fluorescein angiograms that lacked any diagnostic or medical value because the images were distorted and/or were taken from angles that made it impossible to evaluate the patients’ conditions. 
• Medicare or Medicaid would not have paid for these procedures had they known that the fluorescein angiograms lacked any diagnostic or medical value. 
• FELDER and METROPOLITAN RETINA frequently submitted claims to Medicare and Medicaid for ultrasounds of the eye that either were not performed or were not supported by any medical record documentation. 
• Medicare and Medicaid would not have paid for these ultrasounds had they known that the ultrasounds either were not performed or were not supported by documentation in the medical records.
• As a result of billing for the medical procedures described above, FELDER and METROPOLITAN RETINA received substantial reimbursement from Medicare and Medicaid to which they were not entitled.

*                *                *

Mr. Berman thanked the Office of the Inspector General for HHS for its assistance. 

The case is being handled by the Office’s Civil Division.  Assistant U.S. Attorneys Brandon Cowart and Jacob M. Bergman are in charge of the case.

CINCINNATI – Eugene Mongar, 34, pleaded guilty in U.S. District Court to participating in a narcotics conspiracy in the Middletown Jail.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the plea entered into yesterday afternoon before U.S. District Judge Michael R. Barrett.

According to court documents, Mongar was a trustee inmate at the Middletown Jail in December 2017 when co-defendant Louis Cox III, 27, of Middletown, was arrested and booked for drug trafficking.

Cox is alleged to have smuggled fentanyl into the facility on December 1, 2017. Officers were dispatched to the jail on December 2, 2017 for several reported overdoses.

One of those inmates who had overdosed told officers Mongar had approached him with fentanyl in exchange for $20 worth of commissary.

Mongar admitted to distributing the fentanyl. Mongar himself overdosed three times within a two-day period from using the same fentanyl he was distributing.

Mongar and Cox were indicted by a federal grand jury in May 2018, at which time they were both transferred to federal custody.

Mongar pleaded guilty to one count of conspiring to distribute narcotics, a crime punishable by up to 20 years in prison.

Cox has also been charged with participating in a narcotics conspiracy, as well as distributing a controlled substance.

U.S. Attorney Glassman commended the investigation of this case by the DEA, the Middletown Police Department and Assistant United States Attorneys Ashley N. Brucato and Timothy D. Oakley, who are representing the United States in this case.

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BIRMINGHAM– A federal grand jury on Monday indicted a woman, who is a former resident of Alabama, with attempting to provide material support and resources to al Qaeda, a designated foreign terrorist organization, and aiding and abetting others, in violation of Title 18, United States Code, Sections 2339B and 2, announced Assistant Attorney General John Demers of the National Security Division, United States Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.

According to court filings, Alaa Mohd Abusaad instructed an FBI undercover employee (UCE) about how to send money to the mujahedeen—fighters engaged in jihad.  Abusaad told the UCE that money “is always needed.  You can’t have a war without weapons.  You can’t prepare a soldier without equipment.”  Abusaad also advised the UCE on how to send money without getting caught, such as by using fake names and addresses.  Subsequently, Abusaad introduced the UCE to a financial facilitator who could route the UCE’s money to “brothers that work with aq (al Qaeda).”

“Federal agents and prosecutors are working tirelessly and using every available lawful tool to disrupt the evil schemes of those who would support foreign terrorist organizations to do harm to our troops, our allies, or our homeland”, Town said.  “The FBI did an excellent job investigating this matter, effectively engaging with other districts, and worked tirelessly to investigate this terrorist behavior.  I would like to extend my personal gratitude to our local FBI field office, FBI-Cleveland, FBI’s Counterterrorism Division, Northern District of Ohio U.S. Attorney Justin Herdman, and the entirety of the Department of Justice’s National Security Division for their diligent and enormous efforts in developing this case.  Our collective vigilance as law enforcement and in our community must resolve to continue to say something if you see something.”

The maximum penalty is 20 years in prison, up to a life term of supervised release and a $250,000 fine. 

FBI, including FBI offices in Birmingham and in Cleveland and Toledo, Ohio, investigated the case, which the Assistant United States Attorneys Henry Cornelius and Manu Balachandran, and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section are prosecuting.

An indictment contains only charges.  A defendant is presumed innocent unless and until proven guilty.

The complaint was announced in a press release on October 23, 2018.

CHICAGO — Four Chicago-area health care professionals and a personal trainer have been indicted on federal fraud charges for allegedly scheming to pocket $6.5 million from private health and auto insurers for physical therapy, chiropractic and other services that were never rendered.

INESSA KATSNELSON, also known as “Inessa Blinov,” “Inessa Danuchevsky” and “Inna,” a personal trainer and singer who worked out of a gym in Northbrook, and MAYA YAKUBOVICH, a medical claims biller in Arlington Heights, recruited friends and family to permit their insurance companies to be falsely billed for nonexistent health care services purportedly rendered by suburban clinics operated by co-schemers, according to the 22-count indictment.  In exchange, the friends and family had their insurance deductibles exhausted at no out-of-pocket expense to them, and many received free gym training sessions and massages, the indictment states. 

From 2006 until last month, Katsnelson, 50, of Glenview, Yakubovich, 52, of Arlington Heights, and the other defendants – physical therapy center operator YAROSLAVA BOYKO, also known as “Yana Boyko,” 76, of Morton Grove, medical claims biller TETYANA VORONKINA, also known as “Tanya Voronkina,” 54, of Mundelein, and massage therapist VIKTOR DANCHUK, 57, of Roselle – and their co-schemers fraudulently obtained a total of at least $6.5 million from at least nine insurance companies, the indictment states.

The indictment was returned Tuesday in U.S. District Court in Chicago, charging the five defendants with health care fraud.  Katsnelson is also individually charged in the indictment with aggravated identity theft for allegedly using the identifying information of a physician to create certain fraudulent claims.  Arraignment for all five defendants is set for Nov. 8, 2018, at 9:30 a.m., before U.S. District Judge Sharon Johnson Coleman.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The government is represented by Assistant U.S. Attorneys Heather K. McShain and Matthew L. Kutcher.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

Aggravated identity theft is punishable by a mandatory sentence of two years in prison.  Health care fraud is punishable by up to ten years.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory United States Sentencing Guidelines.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that REBECCA BAYUO, a Bronx tax preparer, was convicted in Manhattan federal court yesterday of preparing false tax returns on behalf of her clients, filing false tax returns in the names of victims whose identities she had previously stolen, and filing false tax returns on her own behalf.  BAYUO was convicted after a two-and-half week jury trial before U.S. District Judge John G. Koeltl.

U.S. Attorney Geoffrey S. Berman stated:  “Rebecca Bayuo now stands convicted of multiple counts of tax fraud after she abused her position of trust as a tax preparer by systematically violating the nation’s income tax laws.  By repeatedly filing fraudulent tax returns for her clients, including using stolen identities to increase tax refunds, Bayuo stole tens of thousands of dollars directly from the U.S. Treasury.  For these egregious crimes, Bayuo now faces significant time in federal prison.”

According to the allegations contained in the Complaint, Indictment, and the evidence presented at trial:

BAYUO owned and operated Breakthrough Insurance Brokerage, a tax preparation business, located in the Bronx, New York.  From 2010 through 2014, BAYUO used stolen identifying information of victims to file fraudulent federal income tax returns, which generated tax refunds to which BAYUO was not entitled.  Specifically, BAYUO repeatedly used stolen identities of dozens of victims, including 11 New York residents who testified at trial, to file false tax returns and unlawfully collect tax refunds from the Internal Revenue Service (“IRS”) in their names for herself.  As a result of BAYUO’s criminal conduct, many of the victims were unable to file tax returns as required by law, and were deprived of tax refunds to which they were entitled.

In addition, from 2011 through 2012, BAYUO prepared and submitted to the IRS fraudulent tax returns for her clients that resulted in increased tax refunds, to which her clients were not entitled.  Among other things, BAYUO charged her clients an additional fee in exchange for providing them with the stolen identities of children as false “dependents” to claim on their tax returns.  BAYUO recycled the same stolen identities as false “dependents” for numerous tax returns, over at least a four-year time period.   

Finally, from 2014 to 2015, BAYUO filed false personal income tax returns in her own name, and included in those filings personal identifying information belonging to other individuals that she had stolen.  Specifically, on her own tax returns, BAYUO included false “dependents,” whose identities she had stolen, in order to obtain a larger tax refund to which she was not entitled.  Three of the victims of this scheme testified at trial.

*                *                *

BAYUO, 48, of the Bronx, New York, was convicted of 12 counts of aiding and assisting the preparation of false tax returns, each of which carries a maximum sentence of three years in prison; one count of theft of government funds, which carries a maximum sentence of 10 years in prison; one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison; and two counts of subscribing to false tax returns, each of which carries a maximum sentence of three years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

BAYUO is scheduled to be sentenced on April 12, 2019, at 10:00 a.m.

Mr. Berman praised the outstanding investigative work of the IRS.  The prosecution of this case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Mollie Bracewell, Cecilia Vogel, and Sarah E. Paul are in charge of the prosecution.

Jackson, TN – Stephen Williams, 30, has been sentenced to 360 months imprisonment on federal charges of conspiracy to distribute 50 grams or more of actual methamphetamine and being a felon in possession of firearms. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.

This is the latest sentencing in a case involving multiple defendants including Williams, Bernard Cooper, Courtney Cooper, Robert Newsome, Brandon Weddle, Morgan Bond, and Ronricus Chapman on charges of conspiracy to distribute methamphetamine.

According to information presented in court, on December 20, 2015 officers stopped Williams in a silver Chevrolet Impala. Williams stepped out of the vehicle for questioning and officers found a firearm inside. Williams attempted to flee back to his car and punched an officer in the face during a physical altercation. Williams re-entered the vehicle to flee and dragged an officer 25 yards before crashing into a ditch.

Williams tried to flee on foot after crashing. Officers pursued him for 50 yards before apprehending him. The officers continued the search of the car and found a Glock .40-caliber pistol loaded with 15 rounds of ammunition and a 12-gauge shotgun with a modified stock and barrel loaded with 24 rounds of ammunition. When transporting Williams to the Criminal Justice Complex for processing, he again assaulted an officer and threatened to kill him and his family upon release from jail.

U.S. Attorney D. Michael Dunavant said, "Methamphetamine continues to destroy individuals, families, and communities in West Tennessee. This defendant’s lawlessness includes distribution of meth, possession of firearms, and violent encounters with law enforcement. This is exactly the type of armed and violent drug trafficker that deserves a 30-year sentence, and we are happy to hold him accountable. Williams has sowed addiction and violence into the Jackson community, and now he will reap the consequence of a long prison sentence."

During his guilty plea, Williams was held accountable for at least 1.5 kilograms but less than 4.5 kilograms of actual methamphetamine.

On October 30, 2018, U.S. District Court Senior Judge Thomas Anderson sentenced Williams to 360 months in federal prison followed by 5 years supervised release.

This case was investigated by the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Madison County Sheriff’s Department.

Assistant U.S. Attorney Jerry Kitchen prosecuted this case on the government’s behalf.

PITTSBURGH - A resident of Rochester, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.

The one-count indictment, returned on October 30, named Elijah Winchester, 21, as the sole defendant.

According to the indictment, on or about May 21, 2018, Winchester possessed videos depicting a minor engaged in sexually explicit conduct.

The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.

The Western Pennsylvania Violent Crimes Against Children Task Force, the Beaver Police Department and the Beaver County District Attorney’s Office conducted the investigation leading to the Indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal firearms laws, United States Attorney Scott W. Brady announced today.

The one-count indictment, returned on Nov. 1, named Dontez Peoples, age 27, formerly of Duquesne, Pa.

According to the indictment, on or about May 2, 2018, Peoples possessed a loaded 9mm caliber Glock pistol and ammunition. It is unlawful for Peoples, who has previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to possess a firearm or ammunition.

The law provides for a maximum total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.

Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Munhall Police Department, and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case. 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 an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney Scott W. Brady announced today.

The one-count indictment, returned on Oct. 31, named Barry Daniels, 29, as the sole defendant.

According to the indictment, on or about September 12, 2018, Richards robbed the PNC Bank at 4917 Homeville Road, West Mifflin, PA 15122.

The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, the West Mifflin Police Department, and the Turtle Creek Police Department conducted the investigation leading to the Indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Earlier today, in federal court in Brooklyn, Su Ming Ling, a resident of Queens, New York, was sentenced by United States District Judge Carol Bagley Amon to 30 months’ imprisonment and ordered to pay $12,905.67 in restitution for one count of fraudulent importation and transportation of goods and one count of conspiracy to traffic in counterfeit goods.  The charges arose out of Ling’s participation in a scheme to import more than 200 shipping containers of counterfeit brand-name apparel from the People’s Republic of China.  In aggregate, the counterfeit apparel imported by the defendant and his co-conspirators between May 2013 and January 2017, if sold in the United States as genuine, would have retailed for an estimated $297 million.  Ling pleaded guilty to the charge on January 5, 2018.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian Michael, Special-Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Newark Division, and Troy Miller, Director, U.S. Customs and Border Protection (CBP), New York Field Office, announced the sentence.

“With today’s sentence, Ling has been held responsible for illegally importing millions of dollars’ worth of knockoff goods that displace consumer demand for companies’ genuine products,” stated United States Attorney Donoghue.  “This Office is committed to prosecuting counterfeit traffickers like the defendant whose criminal conduct causes harm to the American economy.” 

“Homeland Security Investigations (HSI) is committed to ensuring the integrity of the legitimate trade, travel and financial systems of the United States,” stated HSI Special Agent-in-Charge Michael. “This defendant smuggled massive amounts of counterfeit goods into the country, harming legitimate businesses and shortchanging consumers who thought they were getting authentic products.  HSI aggressively targets transnational criminal organizations that profit from smuggling counterfeit merchandise, seizing their illicit goods and arresting those responsible.”

“These seizures by U.S. Customs and Border Protection provided the critical link to an ongoing investigation that resulted in the takedown of an elaborate criminal enterprise,” stated CBP Director Miller.  “It is through our interagency partnerships, and collaborative approaches like the one leading to today’s sentence, that law enforcement successfully combats modern criminal organizations.”

The 211 shipping containers Ling smuggled into the United States included counterfeit goods, such as Nike shoes, UGG boots and NFL jerseys.  As part of the scheme, Ling used aliases to register and create numerous Internet domain names and email addresses that resembled the Internet domain names of real U.S. businesses.  Ling also hired CBP-licensed customs brokers to file customs entry forms on behalf of the businesses whose identities he had stolen and provided those customs brokers with falsified shipping documents.  The counterfeit goods were distributed to locations in Brooklyn, Queens and New Jersey, among other areas.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Ian C. Richardson and Alexander Mindlin are in charge of the prosecution.

The Defendant:

SU MING LING
Age:  50
Middle Village, New York

E.D.N.Y. Docket No. 17-CR-541

FRESNO, Calif. — After a three–day trial, a federal jury found Rolando Felix-Carrazco, 45, of Tulare County, guilty of one count of being a Deported Alien Found in the United States, United States Attorney McGregor W. Scott announced.

According to evidence presented at trial, Felix-Carrazco was born in Mexico and entered the United States illegally. He was removed in February 2015 and again in July 2015. Felix-Carrazco returned to the United States without permission to reenter and was encountered by Tulare County Sheriff’s deputies in March 2018. 

This case was the product of an investigation by Homeland Security Investigations. Assistant United States Attorneys Laura D. Withers and Kathleen A. Servatius are prosecuting the case.

Felix-Carrazco is scheduled to be sentenced by U.S. District Judge Drozd on February 4, 2019. Felix-Carrazco faces a maximum statutory penalty of 20 years in prison and a $250,000 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.

Memphis, TN – Melvin Bullock, 31, of Knoxville, Tennessee, has been sentenced to 10 years imprisonment for conspiracy to distribute 20 kilograms of cocaine and distribution of 20 kilograms of cocaine. U.S. Attorney D. Michael Dunavant announced the sentence today.

According to information presented in court, on September 25, 2017, Melvin Bullock was stopped for a traffic violation on I-40 by an agent with the West Tennessee Drug Task Force. During that stop, the agent became suspicious of Bullock after he gave several false answers to questions and presented a fake driver’s license. The agent utilized his canine, who alerted to the presence of narcotics in the back seat of Bullock’s vehicle. Upon further search, 20 individually wrapped bundles of cocaine were found. The total weight of the cocaine was over 20 kilograms, about 50 pounds. The investigation revealed that the drugs came from over the border in Mexico to Houston, where the defendant retrieved them to transport them through Memphis en route to East Tennessee.

On October 31, 2018, U.S. District Court Judge Sheryl H. Lipman sentenced Bullock to 120 months in federal prison.

U.S. Attorney D. Michael Dunavant said, "Interstate 40 is a major drug trafficking corridor into and through West Tennessee. Disrupting drug trafficking organizations and interdicting the flow of poisonous drugs into our communities is a top priority of the U.S. Attorney’s Office, and we work with our federal, state, and local law enforcement partners to remain vigilant in the fight against foreign and domestic drug suppliers. Drug trafficking is not a victimless crime, and this significant federal sentence sends a message that such criminal activity will not be tolerated."

This case was investigated by the West Tennessee Drug Task Force, an extension of the Shelby County District Attorney General’s Office and the Drug Enforcement Administration (DEA).

Special Assistant U.S. Attorney Joseph Griffith prosecuted this case on behalf of the government.

BIRMINGHAM – Today a Madison, Alabama woman pled guilty in federal court to making a false statement, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.

XI QING YUN a/k/a Carolyn Xi, 52, entered her plea before U.S. District Judge Abdul K. Kallon.  Xi was employed by the Army’s Aviation and Missile Research Development and Engineering Center at Redstone Arsenal, when she failed to disclose foreign contacts on a questionnaire for a national security position.  She is scheduled for sentencing before Judge Kallon on February 21, 2019 in Huntsville. 

“It is critical that people with a security clearance, or people applying for a security clearance, are upfront and honest regarding questions about foreign contacts and their background,” Town said.  “A failure to be honest compromises the integrity of checks put in place to protect our national security.” 

“Ms. Xi’s lack of candor not only called into question her reliability, trustworthiness, and ability to protect sensitive information, it also resulted in her prosecution,” Sharp said.  Let this be a lesson to those seeking a position of trust with the United States—show you can be trusted by being truthful in your responses for a security clearance.”

The maximum penalty for making a false statement is 5 years in prison and a $250,000 fine.

FBI and Army Counterintelligence investigated the case, which Assistant U.S. Attorney Davis Barlow and Trial Attorney Scott Claffee, National Security Division are prosecuting. 

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PHILADELPHIA – United States Attorney William M. McSwain announced that Hamed Ettu, 44, of Richmond, TX was charged today by information with conspiracy to commit securities fraud.

According to the information, Damilare Sonoiki, charged elsewhere, then a junior analyst at a global investment bank in New York, provided material non-public information to Ettu. Sonoiki obtained this information in violation of his duty of confidentiality that he owed to the investment bank.

Relying on the material non-public information he received from Sonoiki, Ettu purchased call options in the target companies, Compuware and Move, between July and September, 2014.  When the proposed merger was announced in each case, the value of Ettu’s options increased significantly.  During the period of the conspiracy, Ettu made a profit of more than $93,000. 

convicted, the defendant faces a maximum possible sentence of five years’ imprisonment,a three year period of supervised release, $250,000 fine, and a $100 special assessment. Forfeiture of all proceeds from the offense also may be ordered. 

The case was investigated by Federal Bureau of Investigation and the Securities and Exchange Commission, and is being prosecuted by Assistant United States Attorney David J. Ignall.

 An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.