BOSTON – A former Army Reservist was sentenced today in federal court in Worcester for stealing six machine guns and 10 handguns from a U.S. Army Reserve facility, escaping from federal prison, and attempting to rob two banks. 

James W. Morales, 37, of Cambridge, was sentenced by U.S. District Court Judge Timothy S. Hillman to 138 months in prison and three years of supervised release. In November 2017, Morales pleaded guilty to one count of being a felon in possession of a firearm; one count of possession of a machine gun; one count of possession of stolen firearms; one count of theft of government property; one count of conspiracy to possess, store, conceal, and sell stolen weapons; one count of escape; and two counts of attempted bank robbery.

On Nov. 14, 2015, Morales broke into a weapons vault at the Lincoln Stoddard United States Army Reserve Center in Worcester and stole six M-4 Carbines and 10 M-11 handguns. Morales was familiar with the layout of the facility, having been stationed there prior to his discharge from the Army Reserve. 

Morales gained access to the weapons by breaking a kitchen window located near the room that contained the vault, climbing to the top of the vault, and cutting a hole through its ceiling. The sharp edges of the ceiling caused Morales to cut himself, leaving behind DNA, which was matched to Morales three days after the robbery.

Upon identifying Morales through the DNA database, law enforcement learned that Morales was on bail for child rape charges pending in Middlesex Superior Court. One of the conditions of his release required him to wear an electronic monitoring bracelet, which he wore during the robbery. In addition, surveillance video depicting a dark colored BMW X1 parked at a building adjacent to the U.S. Army facility was recovered. In the video, a man can be seen going to and from the car with duffle bags. Soon after Morales was identified, law enforcement learned that Morales was renting a BMW X1 at the time of the robbery.

After the robbery, Morales rented another vehicle, and GPS data from the vehicle showed that Morales had travelled to New York City, where he was located and arrested on Nov. 18, 2015, in Long Island. Inside his vehicle, four M-4 Carbines and two M-11 handguns were recovered with serial numbers matching those stolen from the Armory. 

In a statement admitting his role in the robbery of the Army Reserve facility, Morales explained that he sold five of the handguns to two individuals in Dorchester with the help of Tyrone James and Ashley Bigsbee, who facilitated the transaction. Morales claimed to have given James and Bigsbee several hundred dollars, one of the M-4 Carbines and one of the M-11 handguns as payment for assisting with the sales. In April 2017, James was sentenced to 57 months in prison. In March 2017, Bisgbee was sentenced to 21 months in prison.

Following his arrest, Morales was detained at the Donald W. Wyatt Detention Facility in Central Falls, R.I. On Dec. 31, 2016, Morales escaped from the prison by climbing a basketball hoop, jumping onto a roof, and going through a barbed wire fence.

On Jan. 5, 2017, Morales was captured on surveillance video entering a branch of Bank of America in Cambridge and attempting to rob the bank by passing the teller a note that read, “I WANT ALL OF THE LARGE DENOMINATIONS W/BAND’S FROM THE 2ND (BOTTOM) TILL NOW BE CALM – BE COOL – NO DYE PACKS.” The teller was able to flee to the back of the bank behind a locked door, and Morales exited the bank without any money.  

Later that same day, Morales, again captured on surveillance video, entered a branch of Citizen’s Bank in Somerville and attempted to rob the bank by passing the teller a note that read, “I WANT THE MONEY IN THE TILL NOW!! 100’s 50’s 20’s  Be Calm, Be Cool, be Quick.” The teller stated, “I can’t,” and Morales wished the teller a nice day and exited the bank. 

After a foot pursuit in Somerville, Morales was apprehended by law enforcement; he admitted to attempting to rob both banks.

United States Attorney Andrew E. Lelling; United States Attorney Stephen G. Dambruch for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; United States Marshal John Gibbons for the District of Massachusetts; United States Marshal Jaime A. Hainsworth for the District of Rhode Island; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Cambridge Police Commissioner Branville G. Bard; and Somerville Police Chief David Fallon made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Criminal Division prosecuted the case.

OAKLAND –  A federal grand jury returned a superseding indictment against defendant Terrence Patrick Goggin with four counts of wire fraud and nine counts of money-laundering, announced United States Attorney Alex G. Tse, Internal Revenue Service Special Agent in Charge Tara Sullivan, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.  

Goggin, 76, is a former California State Assemblyman and current California-licensed attorney.  According to the superseding indictment unsealed today, Goggin also was the CEO of Metropolitan Coffee & Concessions (MC2) and perpetrated an investment fraud scheme through the company.  MC2 owned and operated four Peet’s Coffee & Tea retail centers in Bay Area Rapid Transit (BART) stations and held permits to expand their business to other stations.  In 2013, Goggin solicited and obtained money from private equity investors to fund the build-out of two additional retail centers at the Civic Center and Balboa Park BART stations.  The indictment alleges that after receiving investor funds, Goggin diverted the money to non-approved business projects in New York City, including a now-closed restaurant called “Preserve 24.”  Goggin also used his authority as CEO to direct MC2 employees to transfer the investor money inappropriately.  Further, Goggin used investor funds to support his personal spending and transferred thousands of dollars to a girlfriend in Thailand.

Goggin made his initial appearance in federal court in Oakland on November 26, 2018.   Goggin is presently out of custody.  A bail hearing and appointment of counsel will occur at 9:30 a.m. on December 5, 2018, before the Honorable Kandis Westmore, U.S. Magistrate Judge.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, Goggin faces a maximum sentence of 20 years imprisonment, and a fine of $250,000 or twice the gross gain or loss, plus restitution for each violation of 18 U.S.C. § 1343 (wire fraud) and a maximum sentence of 10 years imprisonment, and fine of $250,000 or twice the value of the criminal property involved in the transactions for each violation of 18 U.S.C. § 1957 (money laundering).  However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.  

Assistant U.S. Attorney Katie Burroughs Medearis is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez.  The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service–Criminal Investigation.
 

OKLAHOMA CITY – SAMUEL OKERE, 61, of Oklahoma City, has been sentenced to a year in prison for Medicaid fraud, announced Robert J. Troester of the United States Attorney’s Office and Mike Hunter, Oklahoma Attorney General.

Okere was a licensed professional counselor and owner of New Life Counseling Services.  On November 15, 2017, a federal grand jury charged him with 224 counts of defrauding the Oklahoma Health Care Authority through false claims for behavioral health counseling.  In particular, the indictment alleged that Okere billed for counseling sessions for multiple individuals, primarily children, at times when he could not have been counseling them.  For example, some of the times and dates billed were when clients were at school.  Others were when Okere was engaged in activities inconsistent with counseling, such as speaking on the phone with representatives of the Oklahoma Health Care Authority.

Okere pleaded guilty to health care fraud on April 3, 2018.

Today U.S. District Judge Stephen P. Friot sentenced Okere to a year and a day in federal prison, to be followed by three years of supervised release.  Pursuant to his plea agreement, he has paid $141,545.16 in restitution to Medicaid.  A portion of the restitution will go to SoonerCare and a portion to the Centers for Medicare and Medicaid Services.  Judge Friot also ordered Okere to pay a fine of $10,000.

This case was the result of an investigation by the Oklahoma Attorney General’s Medicaid Fraud Control Unit.  Assistant U.S. Attorney Amanda Maxfield Green and Assistant Oklahoma Attorney General Lory Dewey, who is also a Special Assistant U.S. Attorney, are prosecuting the case.  Reference is made to court filings for further information.

          CONCORD – David Alexander Arias, 31, a Lawrence, Massachusetts resident, was sentenced to 41 months in prison for conspiracy to distribute fentanyl, announced United States Attorney Scott W. Murray.

             According to court documents and statements made in court, the defendant participated with three co-defendants in a conspiracy to distribute fentanyl into New Hampshire. On several occasions, the defendant and a co-defendant traveled into Nashua and Salem, New Hampshire to meet a New Hampshire distributor to provide that individual with fentanyl to redistribute in and around the Manchester, New Hampshire area.  The conspiracy involved in excess of 1.2 kilograms of fentanyl.

            Co-defendants Migdalia Cintron, Alvaro Garcia and Ramon Paniagua Perez have pleaded guilty and are awaiting sentencing.  Arias previously pled guilty on August 15, 2018.

            “Fentanyl trafficking makes a lethal substance immediately available for purchase in this state” said U.S. Attorney Murray. “Overall, the results have been catastrophic for drug users and their families. In order to curtail trafficking, we are working closely with our law enforcement partners to identify and prosecute the drug dealers who do business here.”              

            “DEA is committed to investigating Drug Trafficking Organizations and individuals like Mr. Arias who are responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle.  “Let this sentence be a warning to those traffickers who are coming from out of state to distribute this poison in order to profit and destroy people’s lives.  DEA’s top priority is combatting the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes deadly drugs.”

          This matter was investigated by the Drug Enforcement Administration.   The case is being prosecuted by Assistant U.S. Attorney Seth Aframe.

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MARTINSBURG, WEST VIRGINIA – William Loren Hoffman, of Falling Waters, West Virginia, appeared today in federal court after being indicted by a federal grand jury sitting in Martinsburg on November 21, 2018 for firearms sales violations, United States Attorney Bill Powell announced.

Hoffman, age 52, is charged with one count of “Sale to a Prohibited Person” and one count of “Making a False Entry in records by Federal Firearms Dealer.” Hoffman is accused of knowingly selling a .45 ACP caliber Hi-Point rifle to a convicted felon and knowingly failing to make an appropriate entry of the sale in his records. The crimes allegedly took place in October 2018 in Berkeley County.

Hoffman faces up to 10 years incarceration and a fine of up to $250,000 for the sale count and faces up to one year incarceration and a fine of up to $100,000 for the entry count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

This case 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. The Attorney General’s Office 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, the Attorney General 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.

Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. 

U.S. Magistrate Judge Robert W. Trumble presided.

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

CLARKSBURG, WEST VIRGINIA – Robert Lee Starkey, Jr., of Clarksburg, West Virginia, was sentenced today to 15 months incarceration for a firearms charge, United States Attorney Bill Powell announced.

Starkey, age 24, pled guilty to one count of “Unlawful Possession of a Firearm” in July 2018.  Starkey, having been previously convicted of a felony, admitted to having a .22-caliber revolver in March 2018 in Harrison County.

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. The Attorney General’s Office 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, the Attorney General’s Office 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.

Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia Probation Office investigated.

Senior U.S. District Judge Irene M. Keeley presided.
 

WHEELING, WEST VIRGINIA – Todd Jones, of New Martinsville, West Virginia, was sentenced today to eight months incarceration for his involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.

Jones, age 55, pled guilty to “Aiding and Abetting the Distribution of Methamphetamine” in August 2018. Jones admitted to selling methamphetamine in March 2017 in Wetzel County.

Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case. 

The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

Senior U.S. District Judge Frederick P. Stamp, Jr. presided.

The press conference will be held at 10:30 a.m. at the South Carolina Department of Corrections, located at 4460 Broad River Road, Columbia, SC 29210

Columbia, South Carolina --- United States Attorney Sherri Lydon announced that a press conference will be held on Wednesday, November 28, 2018, at 10:30 a.m. at the Department of Corrections, located at 4460 Broad River Road, Columbia, SC 29210.

Represented at the press conference will be members of the Naval Criminal Investigative Services (NCIS), U.S. Army Criminal Investigations Command (CID), Air Force Office of Special Investigations (AFOSI), Department of Defense Criminal Investigative Services (DCIS), Internal Revenue Service – Criminal Investigations (IRS-CI), United States Marshals Service (USMS), the South Carolina Department of Corrections (SCDC), the South Carolina Law Enforcement Division (SLED), and the U.S. Attorney’s Office.

 NOTE:  Press inquiries regarding logistics should be directed to Lance Crick, 864-282-2105.  All media must present a government-issued photo ID (such as a driver’s license).  Members of the media wishing to attend should gather at the media staging area at 10:00 a.m., 30 minutes in advance. Media Staging Area: South Carolina Department of Corrections Recruitment and Employment Services Center parking lot located at 4444 Broad River Road, Columbia, SC.

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            WASHINGTON - The United States has filed a complaint to forfeit $3,167,783 associated with a cooperating Singapore-based company (“Cooperating Company”); Apex Choice Ltd. (“Apex Choice”), a Chinese-based wax company; and Yuanye Wood Ltd. (“Yuanye Wood”), a Chinese-based wood company, announced U.S. Attorney for the District of Columbia Jessie K. Liu and Michael DeLeon, Special Agent in Charge of the FBI Phoenix Field Office. 

            The complaint alleges that these three companies laundered United States dollars on behalf of sanctioned North Korean banks.  According to the complaint, the North Korean banks used these laundered funds as part of a scheme to procure goods for the North Korean regime, as well as to illegally access the U.S. financial market. 

            The three companies allegedly were part of a scheme to launder payments to subsequently sanctioned entities, to include: Velmur Management Pte. Ltd. (“Velmur”), which the U.S. Treasury Department sanctioned for procuring Russian petroleum products for North Korea; Dandong Zhicheng Metallic Material Co. (“Dandong Zhicheng”), which the Treasury Department sanctioned for purchasing coal from North Korea, and then in turn laundering the proceeds of those sales to purchase items for North Korea, including nuclear and missile components; and Wee Tiong (S) Pte. Ltd. (“Wee Tiong”), which the Treasury Department sanctioned for laundering money through the U.S. financial system on behalf of North Korea.

            The complaint also seeks a civil monetary penalty against Apex Choice and Yuanye Wood for prior sanctions and money laundering violations related to this scheme.

            “This complaint alleges that parties in China and Singapore are part of a global money laundering network that coordinates with front companies to move North Korean money through the United States and violate the sanctions imposed by our government on North Korea,” said U.S. Attorney Jessie K. Liu. “This case demonstrates that we will seek significant remedies to address companies that violate U.S. national security, regardless of where they are doing business.”

            “The FBI has found numerous foreign companies participating in North Korea’s scheme to launder money,” said FBI Special Agent in Charge Michael DeLeon.  “As North Korea continues to find creative ways to circumvent international sanctions, we hope this investigation will compel foreign companies to do their due diligence when it comes to conducting business transactions and/or making third party payments using U.S. dollars. The FBI will continue to dedicate substantial resources to these types of investigations in order to stop illicit transactions. Companies engaging in deceptive banking practices may face criminal or civil action, and could be forced to forfeit funds.”

            The complaint was filed on Nov. 26, 2018, in the U.S. District Court for the District of Columbia. According to the complaint, designated North Korean banks use companies, including the “Cooperating Company,” Apex Choice, and Yuanye Wood, to make U.S. dollar payments to North Korean front companies, which are managed by sanctioned North Korean banks. 

            The United Nations Panel of Experts described in 2017 how North Korean banks have been able to evade sanctions and continue to access the international banking system. Specifically, despite strengthened financial sanctions, North Korean networks are adapting by using greater ingenuity in accessing formal banking channels. This includes maintaining correspondent bank accounts and representative offices abroad that are staffed by foreign nationals making use of front companies. These broad interwoven networks allow North Korean banks to conduct illicit procurement and banking activity.

            The complaint alleges activity by the three companies that tracks this paradigm. The first company which is the subject of the complaint, the one identified as “Cooperating Company,” has agreed to the forfeiture of its funds.  As part of its agreement to cooperate with the government, this company acknowledged that it was directed by an unauthorized Chinese money remitter to send payments to North Korean companies, when this company was seeking discounted rates for exchanging currency.  Apex Choice, a wax company, is accused of paying numerous North Korean front companies with no relation to the wax industry.  In a submission to the government, Apex Choice claimed that the known North Korean financial facilitators were wax companies in China.  Chilbo, a North Korean wood exporting company based out of Equatorial Guinea, allegedly sold wood produced by North Koreans in forced labor camps to Yuanye Wood.  According to the complaint, Yuanye Wood paid known North Korean financial facilitators for these services.

            The claims made in the complaint are only allegations and do not constitute a determination of liability.

            The FBI’s Phoenix Field Office is investigating the case. Assistant U.S Attorneys Arvind K. Lal, Zia M. Faruqui, and Brian P. Hudak are litigating the case, with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick and former Paralegal Specialist Toni Anne Donato, and Assistant U.S Attorney Ari Redbord.

     PHOENIX – Last week, Timothy Jason Wells, 31, of Kingman, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 37 months’ imprisonment, to be followed by three years of supervised release.  Wells had previously pleaded guilty to one count of felon in possession of a firearm.

      From June through December 2016, Wells posted photographs of himself with a firearm on Facebook and wrote posts about possessing and shooting firearms. Agents executed a search warrant at Wells’ home on July 18, 2017, and found a loaded firearm in his bedroom, twenty additional firearms inside a gun safe, and approximately 22,000 rounds of ammunition and high-capacity magazines in the garage. Wells had a previous felony conviction for unlawful sexual intercourse with a minor.

      The investigation in this case was conducted by the Federal Bureau of Investigation.  The prosecution was handled by Lisa E. Jennis, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:          CR 17-01114-PHX-DLR  

RELEASE NUMBER:    2018-158_Wells

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

PHOENIX – Last week, Timothy Jason Wells, 31, of Kingman, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 37 months’ imprisonment, to be followed by three years of supervised release.  Wells had previously pleaded guilty to one count of felon in possession of a firearm.

From June through December 2016, Wells posted photographs of himself with a firearm on Facebook and wrote posts about possessing and shooting firearms. Agents executed a search warrant at Wells’ home on July 18, 2017, and found a loaded firearm in his bedroom, twenty additional firearms inside a gun safe, and approximately 22,000 rounds of ammunition and high-capacity magazines in the garage. Wells had a previous felony conviction for unlawful sexual intercourse with a minor.

The investigation in this case was conducted by the Federal Bureau of Investigation.  The prosecution was handled by Lisa E. Jennis, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR 17-01114-PHX-DLR  

RELEASE NUMBER:    2018-158_Wells

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

           CONCORD- Blake Ruggiero, 44, of Salem, New Hampshire, pleaded guilty in federal court to tax fraud, United States Attorney Scott W. Murray announced today.

           According to court documents and statements made in court, since 1994, the defendant has owned and operated Romano’s Pizza in Salem, New Hampshire. The defendant paid a substantial portion of wages to Romano’s employees in cash and failed to declare these wages to the Internal Revenue Service in order to reduce his tax liability.  The defendant kept multiple sets of books that were seized as part of a search warrant.  These documents showed the amounts that the defendant paid in cash but did not report.   As a result of the defendant’s conduct, between 2011 and 2016, the defendant failed to pay to the IRS $621,614.88 of employment-related taxes.     

           Ruggiero is scheduled to be sentenced on March 4, 2019.

          "All citizens have an obligation to comply with the federal tax laws,” said U.S. Attorney Murray.  “When business owners fraudulently avoid their tax obligations, they violate federal law and face potential federal prosecution.” 

          "Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS," said Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation’s Boston Field Office.  "The failure to pay over withholding taxes is a serious offense.  Employment tax fraud can also impact employees, who may see future Social Security and Medicare benefits reduced or eliminated due to their employers’ criminal conduct."

          This matter was investigated by the Internal Revenue Service Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Seth Aframe.           

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A U.S. Postal employee assigned to deliver mail in Willowick and Eastlake was sentenced to six months in prison for stealing gift cards.

Sonte E. Gibbons, 25, of Cleveland, previously pleaded guilty to theft of mail by a postal employee.

Gibbons was assigned to the Willowick Post Office beginning in September 2016, where he delivered mail in Eastlake and Willowick.

On April 13, 2017, Gibbons had a letter he was supposed to deliver to a location on East 331 Street that contained a $10 Wal-Mart gift card. Gibbons redeemed the gift card three days later while wearing his postal uniform, according to court documents.

Gibbons was arrested after the U.S. Postal Service’s Office of Inspector General received complaints about mail on Gibbons’ route had not been delivered. Agents prepared 10 first-class mail pieces that contained a greeting card and a gift card or cash. Agents mailed the letters. Seven of the 10 were not delivered, according to court documents.

“As the holidays approach, this case is a good reminder that people should be cautious about sending cash or gift cards in the mail,” U.S. Attorney Justin Herdman said. “The vast majority of postal employees are dedicated workers, but this case reminds us that there are always Grinches among us.”

U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office said: “Postal employees are paid to deliver the mail, not steal it. This prison sentence should send a message to all postal employees and the public that special agents with the U.S. Postal Service Office of Inspector General aggressively investigate all allegations of employee mail theft, and will hold those who choose to steal accountable. Gibbons decided to forfeit his pay, benefits, retirement, and freedom for what amounted to a few dollars. To report postal employee misconduct, contact USPS OIG special agents at www.uspsoig.gov or 888-USPS-OIG.”

This case was prosecuted by Assistant U.S. Attorney Elliot Morrison following an investigation by the U.S. Postal Service’s Office of Inspector General.

Bangor, Maine:  United States Attorney Halsey B. Frank announced that Floyd Chase, 48, of Brewer, Maine, pled guilty in U.S. District Court to conspiracy to make false statements to a federal firearms licensee. 

According to court records, in February 2018, the Brewer Police Department seized a .380 caliber handgun while executing a narcotics trafficking search warrant in Brewer.  A trace of the firearm revealed that it had been purchased about ten days earlier at an area firearms dealer. Further investigation revealed that the defendant, and others came up with a plan for one of them to falsely claim that she was buying the gun for herself, when in fact, the actual buyer was another individual. The defendant accompanied the two others to the firearms dealer and then directed the woman to purchase the firearm.

The defendant faces up to five years in prison, a $250,000 fine, and up to three years of supervised release.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brewer Police Department, with assistance provided by the Penobscot County Sheriff’s Office.

PITTSBURGH, Pa. – Ten residents of Western Pennsylvania, a resident of Georgia, and a resident of South Carolina were charged by a federal grand jury in a 22-count indictment related to a years-long conspiracy to defraud the Pennsylvania Medicaid program, United States Attorney Scott W. Brady announced today.

Arlinda Moriarty, Daynelle Dickens, Julie Wilson, Tamika Adams, Tony Brown, Terry Adams, Terra Dean, Tionne Street, Keith Scoggins and Larita Walls, all residing in and around Pittsburgh, Pennsylvania, along with Larita Walls, a resident of South Carolina, and Luis Columbie-Abrew, a resident of Georgia, are charged with one count each of conspiracy to commit health care fraud and health care fraud. Moriarty, Dickens, Wilson and Tamika Adams are also charged with one count of concealing material facts in relation to a health care matter. In addition, Moriarty, Tamika Adams and Columbie-Abrew each are charged with multiple counts of aggravated identity theft.

According to the Indictment, between January 2011 and April 2017, home health care companies owned and operated by the conspirators received more than $87,000,000 in Medicaid payments. During that time, all 12 of the defendants, along with other individuals, participated in a wide-ranging criminal conspiracy to defraud the Pennsylvania Medicaid program which resulted in the payment of millions of dollars in illegal Medicaid payments. The Indictment sets forth dozens of fraudulent acts by the defendants, including making false claims for services that were never provided, creating fake employees, improperly using consumers’ personal identifying information, and falsifying documentation during state audits of the companies. In some instances, the Indictment alleges that the defendants were actually working at other jobs or living out of the area. In other instances, Medicaid claims were submitted for services for consumers who were actually hospitalized, incarcerated, or deceased.

"Home health care programs are critical to the ability of patients with serious physical limitations, especially the elderly, to receive the care they need while remaining independent. Those who provide home health care are expected to deliver services honestly," said U.S. Attorney Brady. "When criminals cheat and steal from these programs, they not only steal from the taxpayers, but they steal from the most vulnerable members of our community."

"Health care fraud diverts taxpayer dollars and lines the pockets of dishonest health care providers," said FBI Special Agent in Charge Robert Jones. "The FBI will continue to aggressively investigate these cases and work with our state and federal partners to ensure those who commit Medicaid fraud are prosecuted."

"Ensuring the safety of Medicaid beneficiaries is of the upmost importance," said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services in Philadelphia. "We will continue to work with the U.S. Attorney’s Office and all our fellow law enforcement partners, to aggressively investigate allegations of fraud, waste, and abuse in HHS programs."

"Criminals who commit Medicaid fraud are stealing tax dollars that cannot be put to use caring for vulnerable Pennsylvanians who need assistance," said Pennsylvania Attorney General Josh Shapiro. "That’s why my Medicaid Fraud Control section worked closely with U.S. Attorney Brady and other federal law enforcement partners on this investigation. We’ll investigate and prosecute health care fraud wherever we find it."

Tommy Coke, Postal Inspector in Charge of the Pittsburgh Division stated, "This investigation was an excellent example of partnership among the law enforcement agencies, working together to bring down a health care fraud conspiracy. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved, which resulted in bringing the individuals in this scheme to justice."

"This indictment is the byproduct of a joint investigative effort and is the first step toward holding these individuals accountable for their actions", said Guy Ficco, Special Agent in Charge of IRS-Criminal Investigation. "The Agents of IRS-CI will continue working with our fellow law enforcement partners on these types of investigations by using our financial expertise to trace the flow of money."

In addition to the 12 defendants charged in the Indictment, four other defendants—Travis Moriarty, Tiffhany Covington, Brenda Lowry and Autumn Brown—have been charged in separate criminal Informations for their involvement in the conspiracy to commit health care fraud.

The conspiracy and health care fraud charges each carry a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. The concealment of material facts in relation to a health care matter charge carries a maximum total sense of not more than five years in prison, a fine of $250,000, or both. The aggravated identity theft charges carry a mandatory sentence of two years in prison to run consecutively with any sentence imposed on any other charge and a fine of no more than $250,000. 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 defendants.

An indictment is an accusation. The defendants are presumed innocent unless and until proven guilty.

Assistant United States Attorneys Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.

            WASHINGTON – Ridge Jackson, 24, of Washington, D.C., was sentenced today to a nine-year prison term for a pair of armed robberies he committed within a 24-hour period last spring in Southeast Washington, U.S. Attorney Jessie K. Liu announced.

            Jackson pled guilty in July 2018, in the Superior Court of the District of Columbia, to two counts of robbery and two counts of attempted possession of a prohibited weapon. He was sentenced by the Honorable Robert A. Salerno. Following his prison term, Jackson will be placed on five years of supervised release.

            According to the government’s evidence, the first armed robbery took place on April 27, 2018, at approximately 10:30 p.m. The victim reported that he had met a woman on a dating app and that she told him to meet her in a building in the 2600 block of Wade Road SE. Once he got there, he called the woman, who said she would be arriving shortly. Instead, Jackson and another individual came into the hallway. Jackson, who was armed, told the man to empty his pockets. He took the victim’s cellphone, a laptop bag containing a machete-style knife, and jacket.

            The second armed robbery occurred on April 28, 2018, at approximately 4:30 p.m. This time, another victim reported that he met a woman on a dating app and that she had invited him to meet her in a building in the 2600 block of Wade Road SE. Once again, Jackson entered the building, this time with two other individuals. Jackson approached the victim with a machete-style knife before robbing him of his iPhone, wallet, cash, and headphones.

            Jackson was arrested on May 5, 2018, following an investigation by the Metropolitan Police Department (MPD). He has been in custody ever since. At the time of the robberies, he was on supervised release for a 2016 conviction of attempted assault with a dangerous weapon.

            In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Vivien Cockburn, who investigated and prosecuted the matter.

SOUTH BEND – Shane Inghels, 36 years old, of Mishawaka, IN, was sentenced by U.S. District Court Judge Robert L. Miller, Jr., after pleading guilty to possessing methamphetamine with the intent to distribute and being a felon in possession of a firearm, announced U.S. Attorney Kirsch. 

Inghels was sentenced to a total of 235 months imprisonment and 4 years of supervised release when released from prison. 

U.S. Attorney Kirsch said, “A violent offender was put in prison for his crimes.  Today’s sentence should serve as a warning to others that disregard for the rule of law will result in serious consequences.  My office and our law enforcement partners will continue to focus our efforts on career criminals, like Mr. Inghels.”

According to documents in the case, Inghels had outstanding warrants for failure to appear when he traveled from Mishawaka to Michigan City to sell methamphetamine. After meeting with individuals in Michigan City, he drove away from the area with a passenger in his car who was eight and a half months pregnant. Police officers began following his vehicle, at which point he sped away and fled from police down a highway while driving at speeds in excess of 130 miles per hour. Inghels drove into oncoming traffic and through stop lights while the passenger in his car begged him to stop. After driving more than ten miles, Inghels lost control of the car and crashed into a ditch. He got out of the car and ran away, leaving his pregnant passenger behind. Inghels only stopped when police officers deployed a K-9 to assist them in taking him into custody. Inghels had over $2,500.00 on him when officers caught him. Officers found Inghels’s safe in the trunk of the car, which was filled with over 65 grams of methamphetamine and two firearms.  Inghels has several felony convictions, which not only qualifies him as a felon in possession of a firearm but also as an armed career criminal.  Since age 18, Inghels’ crime actions have included breaking into a home to steal firearms; beating a person in a parking lot until the victim suffered a concussion and a broken nose; manufacturing methamphetamine; breaking into a garage to steal items to sell; beating a person while in jail; and committing offenses while on probation.     

This case was investigated by the ATF and the LaPorte County Drug Task Force with the assistance of the Lake County High Intensity Drug Trafficking Area, Indiana State Police, Michigan City Police Department, New Carlisle Police Department, and St. Joseph County Police Department. This case was prosecuted by Assistant United States Attorney Molly E. Donnelly.

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TRENTON, N.J. – A Middlesex County, New Jersey, man who worked as an emergency medical technician and volunteer firefighter was sentenced today to 135 months in prison for enticing a child to produce sexually explicit images, U.S. Attorney Craig Carpenito announced.

Zachary Motta, 24, of Iselin, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of online enticement of a minor to engage in criminal sexual activity. Judge Wolfson imposed the sentence today in Trenton federal court.

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

Beginning in October 2016, Motta communicated with a boy who told Motta he was 12 years old. Motta used a computer and internet connection to ask the victim to send a picture of himself nude, which he did.

In addition to the prison term, Judge Wolfson sentenced Motta to five years of supervised release and ordered him to pay a $5,000 Justice for Victims of Trafficking Act assessment.

U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Newark Special Agent in Charge Gregory W. Ehrie, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Michael Policastro Esq., Milltown, New Jersey

WASHINGTON – A Baton Rouge, Louisiana-based physician’s assistant pleaded guilty today for his role in a scheme to unlawfully distribute thousands of oxycodone pills.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge Stephen G. Azzam of the U.S. Drug Enforcement Administration (DEA)’s New Orleans Field Division, 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 Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement. 

Christopher William Armstrong, 44, of Prairieville, Louisiana, was charged in a June indictment with conspiracy to distribute oxycodone, a Schedule II controlled substance.  Armstrong pleaded guilty before U.S. District Judge John W. deGravelles of the Middle District of Louisiana, who accepted his plea today. 

“Christopher Armstrong abused his position as a licensed physician’s assistant to create fraudulent prescriptions for over 40,000 medically unnecessary oxycodone pills,” said Assistant Attorney General Benczkowski.  “The Department of Justice will continue to combat the opioid crisis by holding to account corrupt medical professionals who distribute illegal prescription opioids for profit.”

 “This conviction is a signal to medical professionals not to abuse your position and put our community at risk,” said U.S. Attorney Fremin.  “We will not tolerate unscrupulous health care workers increasing the supply of unauthorized prescription drugs on our streets.  I want to thank our prosecutors, the Department of Justice’s Medicare Fraud Strike Force, DEA, HHS-OIG, and FBI for their important work on this case.”

According to admissions made as part of his plea agreement, Armstrong was a licensed physician’s assistant employed by Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge, from approximately August 2004 through January 2014.  Armstrong admitted that he logged into the clinic’s computer system and, without authorization, created fraudulent prescriptions for controlled substances such as oxycodone.  He then printed the fraudulent prescriptions and either forged the signatures of the clinic’s physicians on the prescriptions or caused those physicians to unknowingly sign the prescriptions.  Armstrong further admitted that he distributed the fraudulent prescriptions to co-conspirators, who he instructed to fill the prescriptions at pharmacies and return the controlled substances to him in return for cash payments.  Armstrong admitted that in an effort to conceal the scheme, he deleted records of the fraudulent prescriptions from the clinic’s computer system.  As part of his plea, Armstrong admitted that from approximately May 2009 through March 2014, he fraudulently generated prescriptions for at least 40,470 oxycodone pills. 

DEA, HHS-OIG, and FBI investigated the case.  The investigation was further developed by the East Baton Rouge District Attorney’s Office.  Trial Attorneys Katherine Payerle and Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Demetrius D. Sumner of the Middle District of Louisiana are prosecuting the case.   

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

BATON ROUGE - U.S. Attorney Brandon J. Fremin announced today that GERSON GARCIA-VILLANEUVA, age 19, of Honduras, pled guilty for his role in transporting illegal aliens. 

On August 21, 2018, U.S. Border Patrol Agents conducted a traffic stop in Baton Rouge, Louisiana, of a van driven by GARCIA-VILLANEUVA.  GARCIA-VILLANEUVA admitted that he, as is a citizen of Honduras, was knowingly present in the United States illegally.  He further explained that he was paid to transport eight illegal aliens from various Latin American countries from Houston, Texas to New Orleans, Louisiana.

U.S. Attorney Brandon J. Fremin stated, ““The enforcement of our border and immigration laws is a top priority for our office. This plea is yet another step in the fight against illegal immigration and those who enable it. I want to thank our prosecutors and the United States Border Patrol for their efforts in this important matter.”

“This case highlights  the superlative work done by Border Patrol Agents, Homeland Security Investigations, and the US Attorney’s Office as we work together to enhance border security in the Gulf Coast Region by disrupting and destroying smuggling operations which cause irreparable harm to our nation, ” stated Chief Patrol Agent Gregory K. Bovino, New Orleans Border Patrol Sector.

This matter is being investigated by the U.S. Immigration and Customs Enforcement, and is being prosecuted by Assistant United States Attorney Fred Menner.

KANSAS CITY, Mo. – A Honduran man who was arrested in Kansas City, Mo., for drunk driving was sentenced in federal court today for illegally reentering the United States after having been deported eight times.

Jose Salazar-Aguilar, 34, was sentenced by U.S. Chief District Judge Greg Kays to five years and eight months in federal prison without parole.

Kansas City, Mo., police officers arrested Salazar-Aguilar on Feb. 19, 2017, for driving under the influence of alcohol, resisting arrest, no insurance, and failure to carry a  license. While incarcerated, record checks revealed that Salazar-Aguilar had been removed from the United States on numerous occasions. He was released on bond but apprehended by federal agents during a traffic stop on Feb. 27, 2017.

On May 2, 2018, Salazar-Aguilar pleaded guilty to unlawfully reentering the United States after removal for an aggravated felony.

This is Salazar-Aguilar’s second conviction for this offense. He was convicted of the same crime in federal court in Arizona on Feb. 22, 2012, and sentenced to 27 months. According to court documents, Salazar-Aguilar has been removed from the United States eight times, seven times after being convicted of the aggravated felony of delivery of heroin. Salazar-Aguilar was last removed from the United States on Aug. 8, 2013.

Additionally, according to court documents, Salazar-Aguilar’s history also includes assaultive behavior that endangers the public, such as his 2010 arrest for beating up his common-law wife. 

Salazar-Aguilar has previously asserted his membership with the Norteno street gang, according to court documents, and has admitted to being a “drug mule.” Salazar-Aguilar also has prior felony convictions for delivery of a controlled substance (heroin) in Oregon, possession of a controlled substance in Colorado, and forgery in Arizona. Additionally, there are active warrants for his arrest from Salt Lake City, Utah, for distribution of a controlled substance; Phoenix, Ariz., for no valid license and traffic offenses; and Kansas City, Mo., for driving under the influence, resisting arrest, no insurance, and failure to carry a license.

This case was prosecuted by Special Assistant U.S. Attorney Kimberlee L. Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO).