United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.

Jonathan Anthony Jones, a/k/a D.J. Jones, age 29, was indicted on January 22, 2019.  He appeared before U.S. Magistrate Judge Mark A. Moreno on January 31, 2019, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on November 16, 2018, Jones did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved the use of a dangerous weapon.

The charge is merely an accusation and Jones is presumed innocent until and unless proven guilty. 

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

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

United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman convicted of Simple Assault of a Minor was sentenced on January 31, 2019, by U.S. Magistrate Judge Mark A. Moreno.

Tara Red Kettle, a/k/a Tera Red Kettle, age 20, was sentenced to 9 months and 18 days in federal prison, followed by 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.

Red Kettle was indicted by a federal grand jury on June 12, 2018.  She pled guilty on January 31, 2019.

The conviction stemmed from an incident that occurred on April 6, 2018, wherein Red Kettle threw her infant child on a bed in frustration, causing the child’s head to strike a wall.

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

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

United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Felony Child Abuse and Neglect was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.

Joseph Briseno, age 41, was sentenced on January 28, 2019, to 60 months in federal prison, followed by 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.

Briseno was indicted for the charge by a federal grand jury on August 22, 2017.  The conviction stems from Briseno inappropriately touching his stepdaughter between 2013 and 2016.

This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation.  Assistant U.S. Attorney Megan Poppen prosecuted the case.

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

OAKLAND – Ray Lee Howard was sentenced today to 92 months in prison for being a felon in possession of a firearm and ammunition, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Haywood S. Gilliam, Jr., U.S. District Judge, handed down the sentence.

Howard, 47, previously of Oakland, pleaded guilty to the charge on October 23, 2018.  According to his plea agreement, Howard admitted that on July 20, 2018, he brought a loaded semi-automatic assault rifle into the residence of a woman with whom, pursuant to a protective order, he was prohibited from having contact.  Howard also was not permitted to possess firearms and ammunition because he previously had been convicted of felonies.  The assault rifle included a magazine loaded with nine rounds of .223 caliber bullets.  Howard acknowledged that he concealed the rifle and magazine in a black fabric guitar case that he brought into the woman’s home.  

On August 23, 2018, a federal grand jury indicted Howard charging him with one count of being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1).  Howard pleaded guilty to the charge.  

Judge Gilliam also sentenced the defendant to a three-year period of supervised release to follow the prison term.  The defendant currently is in custody and will begin serving the sentence immediately.

Assistant U.S. Attorney Thomas Green is prosecuting the case with the assistance of Noble Hughes and Elyza Delgado.  The prosecution is the result of an investigation by the FBI.
 

PORTLAND, Ore.—Larry Lewis Hudson, 46, of Sandy, Oregon, was sentenced today to 220 months in federal prison for the attempted enticement of children online and possession and distribution of child pornography. Upon completion of his prison sentence, Hudson will be on supervised release for 20 years, during which he will be subject to stringent conditions of supervision, including a requirements that he participate in and complete sex offender treatment, and that he register as a sex offender.

“This defendant has now been convicted twice for exploiting and abusing children,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “His first prison sentence was not enough to deter him from victimizing more children. This 18-year sentence will do just that—protect our most vulnerable community members from a known predator.”

According to court documents, Hudson’s crimes were identified by independent law enforcement investigations conducted by agencies in four different states.

The earliest began in July 2015, when a father in Louisiana reported that a person using the name “Brian Johnson” had exchanged sexually explicit messages with and received at least one explicit photo from his 13-year-old daughter using the Kik Messenger mobile application. Later, in January 2016, a mother in Illinois called police after learning that her developmentally disabled 16-year-old daughter had sent explicit images of herself to “Brian Johnson” using Kik. In March 2016, a detective in Arizona who was posing online as a 15-year-old girl was contacted by “Brian Johnson” who claimed to be a 22-year-old living in Sandy. A few days after that exchange, “Brian Johnson” contacted an investigator in Texas posing online as a 14-year-old girl from Georgia. Hudson was later identified as the person calling himself Brian Johnson.

During online exchanges with the two detectives, Hudson repeatedly engaged in sexually explicit conversations, sent them child pornography and asked them if they would engage in the depicted sex acts with him. He asked them for explicit images of themselves, told the detective in Arizona that he planned to move there and asked if she would get together with him to have sex.

On March 29, 2017, FBI agents executed a federal search warrant at Hudson’s residence in Sandy. They seized a number of electronic devices including two cell phones. A forensic examination of the phones revealed 49 explicit images depicting children engaged in sexual acts with adults, including many of the images Hudson sent to the detectives. Hudson later admitted to using the “Brian Johnson” alias and sending sexually-explicit materials to minors.

Hudson pleaded guilty to one count each of attempted online enticement of a minor, distribution of child pornography and possession of child pornography on July 17, 2018.

In December 2000, Hudson was convicted in Clackamas County Circuit Court of unlawful sexual penetration with a foreign object and first degree sexual abuse after repeatedly molesting a girl under 12 over a seven month period. Hudson was sentenced to and served three years in prison. His prison sentence was followed by a 10-year term of post-prison supervision during which he repeatedly violated his supervision conditions.

The FBI investigated this case. It was prosecuted by Assistant United States Attorney Gary Y. Sussman, Project Safe Childhood Coordinator for the District of Oregon.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

The FBI’s Child Exploitation Task Force (CETF) conducts sexual exploitation investigations – many of them undercover – in coordination with other federal, state, and local law enforcement agencies. The Portland FBI’s CETF consists of agents and task force officers from the Beaverton Police Department, Portland Police Bureau, Tigard Police Department, Hillsboro Police Department, and the Clackamas County Sheriff’s Office. The FBI’s CETF is committed to locating and arresting those who prey on children as well as recovering underage victims of sex trafficking and child exploitation.

Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.

          SANTA ANA, California– A San Bernardino County man who participated in a series of armed robberies attributed to the “White Glove Bandits” – because the thieves wore white, latex gloves in some of the robberies – was sentenced today to nearly 17 years in federal prison.

          Sheyenne Lee Parsons, 38, of Yucaipa, was sentenced to 201 months in prison by United States District James V. Selna. In addition to the prison term, Judge Selna ordered Parsons to serve four years of supervised release and pay $34,656 in restitution to the victimized banks and stores.

          Parsons pleaded guilty in August to two counts of armed bank robbery and one count of using a firearm in relation to a crime of violence. But in a plea agreement, Parsons admitted to participating in three armed bank robberies and three retail store robberies – two of which were armed.

          During one of the armed robberies, a father and his 7-year-old son walked into a Toys “R” Us in Redlands while Parsons and his cohorts were robbing the store. Store employees had difficulty opening the register during the robbery, so the robbers took the entire register with them.

          Parsons and his co-conspirators committed the robberies between April 14, 2015, and July 21, 2015. The spree started with a failed attempt to rob a bank on April 13, 2015. In addition to the Toys “R” Us robbery, Parsons was involved in robberies of a Community Valley Bank branch in Palm Desert, a Boot Barn in Upland, a David’s Bridal in Ontario, a Wells Fargo branch in Irvine, and a Chase Bank branch in Banning. During the take-over robbery of the Wells Fargo branch on June 11, 2015, Parsons collected more than $20,000 from victim-tellers, while another robber pointed a gun at bank employees and demanded money.

          “These robberies – particularly the armed robberies – terrified the employees and any customers present at the time,” prosecutors wrote in a sentencing memo filed with the court.

          In 2016, Parsons was convicted in Los Angeles Superior Court of robbing a U.S. Bank branch in Culver City on April 30, 2015. Parsons is currently serving a five-year state court sentence for robbing the bank by using a demand note and wearing white gloves. The federal prison sentence imposed today will run concurrent with the portion of the state prison sentence Parsons has yet to serve.

          Two other men were charged with being part of the White Glove Bandits robbery spree. The cases against them are pending.

          The case against Parsons is the result of an investigation by the Federal Bureau of Investigation. During this investigation, the FBI received substantial assistance from the Redlands Police Department, the Riverside County Sheriff’s Department, the Riverside Police Department, the Los Angeles County Sheriff’s Department, the Ontario Police Department, the Culver City Police Department, the Banning Police Department, the San Bernardino Sheriff's Department, the Irvine Police Department, and the Orange County Sheriff’s Department. 

          The case was prosecuted by Assistant United States Attorney Vibhav Mittal of the Santa Ana Branch Office.

          LOS ANGELES– An East West Bank branch manager who conspired to launder over $25,000 in cash by converting the currency into cashier’s checks was sentenced today to 24 months in federal prison.

          Vivian Tat, 54, of Hacienda Heights, who is a vice president at East West Bank currently on administrative leave, was sentenced by United States District Judge Otis D. Wright II. In addition to the prison sentence, Judge Wright ordered Tat to pay a $2,000 fine.

          Tat and a co-defendant were found guilty by a federal jury in September of conspiring to commit money laundering. Tat was also convicted of two counts of causing a false statement in a bank record.

          The co-defendant – Ruimin Zhao, 48, of Temple City, is scheduled to be sentenced by Judge Wright next Monday.

          Today’s sentencing was a result of a scheme in which Tat, Zhao and Zhao’s husband – Raymond Tan, 62, of Temple City – laundered cash through East West Bank’s San Gabriel branch. According to court documents and the evidence presented at trial, Tat, Zhao and Tan led an informant into the bank’s conference room, where the informant provided $25,500 in cash that was then laundered into three “clean” cashier’s checks issued through the account of a bank client. The informant was wearing a secret recording device and throughout the transaction, the conspirators made statements demonstrating that they knew money laundering was illegal. To cover their tracks, Tat facilitated false entries to be made in East West Bank’s records, which made it appear that this transaction was legitimate.

          Prosecutors argued in court papers that Tat was responsible for providing the location of the closed-door transaction, the account holder, the checks used to facilitate the money laundering and the unwitting tellers who issued the cashier’s checks.

          Tat “also provided the knowledge necessary to ensure that this transaction would occur undetected by regulators or law enforcement,” prosecutors wrote in a sentencing memorandum that noted Tat trained other East West Bank employees on the Bank Secrecy Act and anti-money laundering rules.

          Tan previously pleaded guilty to money laundering conspiracy and money laundering in this case and in two other cases. He is scheduled to be sentenced by Judge Wright on March 18.

          This case is the result of Operation “Phantom Bank,” which resulted in six indictments that charge a total of 25 defendants. Nine of the defendants have been convicted, and 16 defendants are pending trial.

          This case is the result of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).

          The case against Tat was prosecuted by Assistant United States Attorneys Kim Meyer and Joseph D. Axelrad of the Violent and Organized Crime Section.

SAN JOSE – Kenneth Tam pleaded guilty today to money laundering and witness tampering in connection with a scheme to sell stolen computer parts announced United States Attorney David L. Anderson and Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Kareem Carter.  The plea was accepted by the Honorable Edward J. Davila, U.S. District Judge.

According to the plea agreement, Tam, 59, formerly of San Jose, admitted that from January 2006 through July 2010, he was an employee of a San Francisco Bay Area manufacturer of computer parts.  During that period, and until at least the end of 2010, Tam knowingly obtained stolen merchandise from his employer and sold it to his co-conspirator, Cuong Cao Dang.  Dang owned a company whose business was overwhelmingly that of buying and selling merchandise stolen from Tam’s employer.  Tam admitted that in most instances, he would take cash from Dang as payment for delivery of stolen computer parts.  Tam further admitted that he would deposit the proceeds from the stolen equipment into accounts owned by a foreign national who had given Tam power-of-attorney over the accounts.

Tam’s plea agreement describes various aspects of the money-laundering scheme.  For example, on February 3, 2010, Dang provided Tam with a check for $500,000 made out to the foreign national whose name Tam was using as the nominal owner of the accounts.  The check was provided to Tam for payment of previously provided stolen parts, as well as in pre-payment for additional stolen parts that Tam planned to provide.  Nevertheless, Tam instructed Dang to write “loan” on the memo line of the check; this was an effort to disguise the true purpose of the payment.  Then, after Tam learned there was an investigation into Dang’s company, Tam gave Dang a backdated check for $500,000 to make it appear as though a loan was made and re-paid.   

Tam also admitted various aspects of his scheme to tamper with witnesses.  For example, Tam told Dang that he would lie to his employer and to any investigators about his knowledge and involvement with Dang and Dang’s company.  Tam also contacted the foreign national who owned the accounts in which Tam deposited the funds from the stolen equipment; Tam provided the foreign national with a false cover story to use if she was contacted by law enforcement agents investigating the accounts.  

On October 26, 2017, a federal grand jury handed down a superseding indictment charging Tam with two counts of witness tampering, in violation of 18 U.S.C. § 1512(b)(1), as well as one count each of conspiracy to commit mail fraud, in violation of 18 U.S.C. 1349; money laundering, in violation of 18 U.S.C. § 1956; structuring financial transactions, in violation of 31 U.S.C. § 5324(a)(1) and (a)(3); making a false statement to government agents, in violation of 18 U.S.C. § 1001; and contempt, in violation of 18 U.S.C.§  401(3).  Tam pleaded guilty to one count of money laundering and one count of witness tampering.  The remaining counts will be dismissed at sentencing if Tam complies with the terms of the plea agreement.  

Judge Davila scheduled Tam’s sentencing for May 6, 2019.  Tam faces a maximum sentence of 20 years of imprisonment, and a fine of $500,000 for the money laundering count and a maximum sentence of up to $250,000 for the witness tampering count.  However, the court will consider the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553, prior to imposing a sentence.

On December 11, 2015, Dang pleaded guilty for his role in the scheme and on October 31, 2017, Judge Davila sentenced Dang to 90 months in prison to be followed by three years of supervised release.              

Assistant United States Attorneys Amie Rooney and Robert Leach are prosecuting the case with the assistance of Lakisha Holliman and Elise Etter.  The prosecution is the result of an investigation by the IRS-CI and the Santa Clara REACT Task Force.   
 

SAN FRANCISCO - A federal grand jury indicted Ahmad Wagaafe Hared and Matthew Gene Ditman with conspiracy to commit computer fraud and abuse, conspiracy to commit access device fraud, extortion, and aggravated identity theft, announced United States Attorney David L. Anderson and Federal Bureau of Investigation, Special Agent in Charge John Bennett. 

According to the indictment unsealed today, Hared, 21, of Tucson, Ariz., and Ditman, 23, of Las Vegas, Nev., engaged in a scheme to obtain by fraud and extortion cryptocurrencies and other money and property owned and controlled by executives of cryptocurrency-related companies and cryptocurrency investors.  The indictment alleges Hared, Ditman, and their co-conspirators used fraud, deception, and social engineering techniques to induce representatives of cellphone service providers to provide information about the SIM cards of the conspirators’ victims.  A SIM card—short for Subscriber Identity Module or Subscriber Identification Module—is a technology used to identify and authenticate subscribers on mobile phone devices.  The conspirators allegedly convinced the representatives of cellphone service providers to transfer or port cellphone numbers from SIM cards in the devices possessed by victims to SIM cards in devices possessed by the conspirators, a practice known as SIM swapping.  The indictment further alleges that after Hared, Ditman, and others gained control of victims’ cellphone numbers, they used additional deceptive techniques to gain access to email, electronic storage, and other accounts of victims and ultimately to cryptocurrency accounts of victims.  Hared, Ditman, and their co-conspirators also extorted victims of the SIM swapping scheme.

Hared was arrested in Tucson and made his initial appearance in the District of Arizona on January 31, 2019.  He was released on a $100,000 bond.  His next scheduled appearance is at 9:30 a.m. on February 13, 2019, before the Honorable Laurel Beeler, U.S. Magistrate Court Judge.   

Ditman was arrested in Las Vegas and made his initial appearance in the District of Nevada on January 31, 2019.  He was released on bond.  His next scheduled appearance is at 9:30 a.m. on February 6, 2019, before Judge Beeler.

The indictment charges the defendants with the following crimes and, if found guilty, they are subject to the following maximum statutory penalties:

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  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 Robert S. Leach is prosecuting the case with the assistance of Mimi Lam and Rebecca Shelton.  The prosecution is the result of an investigation by the FBI. 

SAN FRANCISCO - A federal grand jury indicted George David and Linda Nguyen with conspiracy to commit mail fraud and substantive mail fraud, announced United States Attorney David L. Anderson and Federal Bureau of Investigation, Special Agent in Charge John Bennett. 

According to the indictment filed January 29, 2019, and unsealed today, David, 78, a San Francisco physician, and Nguyen, 66, of Union City, engaged in a scheme to defraud California’s State Disability Insurance (SDI) program.  The SDI program is designed to provide partial wage replacement benefits to eligible California workers who are unable to work due to a non-work-related illness, injury, or pregnancy.  To receive SDI benefits, a claimant must file a claim for benefits supported by a Physician/Practitioner Certification attesting to the claimant’s disability.  According to the indictment, David provided fraudulent Physician/Practitioner Certifications to support fraudulent SDI applications for non-disabled claimants.  In addition, the indictment alleges that Nguyen facilitated the fraud by assisting non-disabled persons with the execution and submission of fraudulent documents.  The indictment further alleges that Nguyen charged the non-disabled persons for processing their fraudulent applications.  In sum, the defendants each were charged with one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349, and one count of substantive mail fraud, in violation of 18 U.S.C. § 1341.

The defendants were arrested this morning and made their initial appearances before U.S. Magistrate Judge Donna M. Ryu.  Both defendants were released on bond.  Magistrate Judge Ryu scheduled David’s and Nguyen’s next appearances for February 8 and February 15, 2019, respectively, for arraignment and identification of counsel.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  If found guilty, the defendants face a maximum statutory sentence of 20 years in prison for each count in the indictment.  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.  

Special Assistant U.S. Attorney Christopher Vieira is prosecuting the case with the assistance of Kimberly Richardson.  The prosecution is the result of an investigation by the FBI and Social Security Administration Office of the Inspector General. 
 

Roanoke, VIRGINIA – United States Attorney Thomas T. Cullen joins the Virginia State Police and law enforcement throughout the Commonwealth in mourning the loss of Virginia State Police Trooper Lucas B. Dowell, a Chilhowie, Virginia native who died in the line of duty Monday, February 4, 2019.

“As this terrible incident illustrates, police officers risk their lives every time they put on a uniform,” U.S. Attorney Cullen stated today.  “Trooper Dowell’s bravery and sacrifice are a sobering reminder of those dangers.  The federal law-enforcement community in Western Virginia mourns the loss of this courageous young man and will honor his legacy.”

Trooper Dowell was a member of the Virginia State Police Tactical Team that was assisting the Piedmont Regional Drug Task Force with executing a search warrant at a residence in Cumberland County, Virginia just north of the town of Farmville. According to the Virginia State Police, the tactical team had made entry into the residence shortly before 10 p.m. when an adult male inside the residence began shooting at them, hitting Trooper Dowell.

Trooper Dowell was transported to Southside Community Hospital in Farmville where he later died from his injuries. Trooper Dowell becomes the Virginia State Police’s 66^th line of duty death. Trooper Dowell graduated from the Virginia State Police’s 122^nd Basic Session in November 2014. Since graduation, he has been assigned to the Virginia State Police Appomattox Division. Trooper Dowell is survived by his parents and a sister.

This week, the U.S. Attorneys have sent letters to over 180 physicians, physician assistants, and nurse practitioners advising that a review of their prescribing practices showed that they were prescribing opioids at relatively high levels compared to other prescribers. The letters warn that these prescribing practices may be contributing to the flow of prescription opioids into illegal markets and fueling dangerous addictions. Although the letters acknowledge that the prescriptions may be medically appropriate, the letters remind the practitioners that prescribing opioids without a legitimate medical purpose could subject them to enforcement action, including criminal prosecution. The names of the practitioners will not be released. 

The harm caused by opioid over-prescribing and abuse is staggering. Drug overdoses are the leading cause of death for persons under 50 in the United States. In 2014, an average of 78 people died each day of a drug overdose. By 2017, that figure had risen to 114 deaths per day, and to more than 130 deaths per day in 2018. Nearly 70% of the more than 70,200 drug overdose deaths in 2017 involved an opioid. In Wisconsin alone, 916 people died of opioid overdoses in 2017. Opioid-related deaths now exceed automobile deaths in the state. 

Of current heroin users, the majority began their descent into addiction by abusing prescription opioids. Whether an opioid addict begins by receiving a prescription from a physician, by sharing pills with a friend, or by exploring the family medicine cabinet, opioid abusers eventually turn to the street drug market. In Wisconsin, opioids prevalent in street drug markets include Oxycodone and Hydrocodone diverted from clinics and pharmacies through fraudulent, reckless, and negligent over-prescribing. Addicts looking to buy prescription opioids from street drug markets increasingly receive counterfeit pills laced with fentanyl and other deadly synthetic opioids—a recent phenomenon that has fueled dramatic increases in overdose deaths.

The notification letters urge the practitioners to take stock of their prescribing practices and to acquaint themselves with enclosed guidelines for safe and legal opioid prescribing issued by the Centers for Disease Control and Wisconsin Medical Examining Board. The letters also remind practitioners that Wisconsin law requires them to use the Wisconsin Prescription Drug Monitoring Program to assess a patient’s prescription history before prescribing narcotic drugs. 

Additional information may be found here:

• CDC Guideline for Prescribing Opioids for Chronic Pain: https://www.cdc.gov/drugoverdose/prescribing/guideline.html

• Wisconsin Medical Examining Board Opioid Prescribing Guideline: https://www.cdc.gov/drugoverdose/prescribing/guideline.html

“We know that for many, addiction began with opioids prescribed by a medical professional,” said U.S. Attorney Krueger. “By sending these letters, we are asking medical professionals to join the fight against addiction and ensure they prescribe no more opioids than are necessary.”

“Opioid addiction has touched the lives of far too many families in our state,” said U.S. Attorney Blader. “Medical professionals play a pivotal role in stemming the flow of legal opioids into unlawful channels. Today, we are asking the medical community to help prevent addictions before they start.”

The notification letters were sent as part of a broader effort by state and federal law enforcement agencies to address the opioid epidemic. Efforts to combat opioid abuse are yielding results. Nationally, according to the U.S. Drug Enforcement Administration (“DEA”)’s National Prescription Audit, opioid prescriptions were down nearly 12% for the first eight months of 2018 from the same period a year earlier. In Wisconsin, the federal and state partners participating in this notification effort include the DEA, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, the U.S. Department of Defense, and the Wisconsin Department of Justice. 

# # # # #

For Additional Information Contact:

United States Attorney for the Eastern District of Wisconsin Matthew D. Krueger

Public Information Officer Kenneth B. Gales – (414) 297-1700

United States Attorney for the Western District of Wisconsin Scott C. Blader

Public Information Officer Myra Longfield – (608) 250-5461

Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that on January 4, 2019, Lee Hueckstaedt, (age 32) of Rhinelander was sentenced in federal court to 72 months in prison for conspiring to distribute oxycodone and using a firearm in furtherance of that conspiracy.  Hueckstaedt had previously pleaded guilty to both of those charges. 

The investigation revealed that from 2015 through 2016, Hueckstaedt traveled from Rhinelander to Milwaukee to pick up approximately 2,900 oxycodone 30 mg pills that had been prescribed by medical professionals earlier in the chain of supply.  Hueckstaedt then distributed those pills in northern Wisconsin.  Hueckstaedt asked his oxycodone customers to refer to him as “Mr. White” or “Ghost.”  The evidence also showed that Hueckstaedt actively recruited oxycodone customers. 

While sentencing Hueckstaedt, United States District Court Judge Pamela Pepper emphasized that the offense was very serious because of the many problems, such as overdose deaths and addiction, that opioids cause in Wisconsin communities.  In a related case, seven other defendants have pleaded guilty to offenses regarding prescription opioids that were obtained in the Milwaukee area and distributed in northern Wisconsin.  See United States v. Orvin Kay, Case No. 17-CR-16.

“Whether swallowed as a pill or injected through a needle, opioids are highly addictive,” said U.S. Attorney Krueger.  “This lengthy sentence reflects that trafficking in prescription opioids is just as serious as other drug trafficking.  This case also reflects extraordinary partnership by all levels of law enforcement—federal, state, and local—to combat the opioid epidemic.”   

The following agencies participated in the investigation: the Oneida County Sheriff’s Office; the Vilas County Sheriff’s Office; the Wisconsin Department of Justice—Division of Criminal Investigation; the Drug Enforcement Administration – Milwaukee (Tactical Diversion Squad); the Minocqua Police Department and the Rhinelander Police Department; and the Northcentral Drug Enforcement Group (“NORDEG”).  The case was prosecuted by Assistant United States Attorney Zachary J. Corey. 

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For Additional Information Contact:

Public Information Officer Kenneth B. Gales 414-297-1700

A St. Lucie County resident was sentenced in federal court, on January 28, 2019, for falsely claiming to be a veteran of the U.S. Armed Forces, in order to apply for employment and obtain free medical services.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, David Spilker, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (VAOIG CID), Southeast Field Office, and John A. Bolduc, Chief, Port St. Lucie Police Department, made the announcement.

On November 9, 2018, Edward Louis Liroff, 47, of St. Lucie County, pled guilty to theft of government property and making false claims of military accomplishments (Case No. 18-14049-CR). U.S. District Judge Robin L. Rosenberg sentenced Liroff to four years’ probation and ordered him to pay over $4,000 in restitution.

According to the court record, including an agreed upon factual proffer, in March of 2018, Liroff submitted two job applications with the city of Port St. Lucie, claiming to be a decorated military combat veteran, in order to obtain veteran’s preference in hiring.  As proof of his veteran’s status, Liroff presented a fraudulent and forged DD Form 214 “Certificate of Release and Discharge From Active Duty,” which is the document the U.S. Department of Defense issues upon a military service member's retirement, separation, or discharge from active duty in the U.S. Armed Forces.  Liroff supplemented his application with a resume, claiming to be a highly decorated retired U.S. Army Ranger, Combat Medic and Recruiter, holding a top-secret security clearance.

In addition, in January of 2013, Liroff used the same fraudulent DD Form 214 and claimed, to the U.S. Department of Veteran Affairs, that he was awarded numerous Army medals, including two Purple Hearts, the Silver Star, the Bronze Star, Legion of Merit, and an Air Medal for Valor.  As a result of his false representation of being a Purple Heart recipient, Liroff received free health care benefits from the VA, in excess of $4,000, including prescriptions, outpatient and inpatient services. A Purple Heart recipient receives medical treatment priority, and is never responsible for a copay for medical treatment. 

In truth and fact, Liroff never served in the U.S. military.

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the VAOIG-CID and the Port St. Lucie Police Department in this matter. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, and Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today that their offices, in coordination with federal and state law enforcement agencies, have sent notification letters to numerous medical professionals around Wisconsin cautioning them about their opioid prescribing practices. These letters are part of a broader federal and state effort to reduce the number of people becoming addicted to opioids.

This week, the U.S. Attorneys have sent letters to over 180 physicians, physician assistants, and nurse practitioners advising that a review of their prescribing practices showed that they were prescribing opioids at relatively high levels compared to other prescribers. The letters warn that these prescribing practices may be contributing to the flow of prescription opioids into illegal markets and fueling dangerous addictions. Although the letters acknowledge that the prescriptions may be medically appropriate, the letters remind the practitioners that prescribing opioids without a legitimate medical purpose could subject them to enforcement action, including criminal prosecution. The names of the practitioners will not be released. 

The harm caused by opioid over-prescribing and abuse is staggering. Drug overdoses are the leading cause of death for persons under 50 in the United States. In 2014, an average of 78 people died each day of a drug overdose. By 2017, that figure had risen to 114 deaths per day, and to more than 130 deaths per day in 2018. Nearly 70% of the more than 70,200 drug overdose deaths in 2017 involved an opioid. In Wisconsin alone, 916 people died of opioid overdoses in 2017. Opioid-related deaths now exceed automobile deaths in the state. 

Of current heroin users, the majority began their descent into addiction by abusing prescription opioids. Whether an opioid addict begins by receiving a prescription from a physician, by sharing pills with a friend, or by exploring the family medicine cabinet, opioid abusers eventually turn to the street drug market. In Wisconsin, opioids prevalent in street drug markets include Oxycodone and Hydrocodone diverted from clinics and pharmacies through fraudulent, reckless, and negligent over-prescribing. Addicts looking to buy prescription opioids from street drug markets increasingly receive counterfeit pills laced with fentanyl and other deadly synthetic opioids—a recent phenomenon that has fueled dramatic increases in overdose deaths.

The notification letters urge the practitioners to take stock of their prescribing practices and to acquaint themselves with enclosed guidelines for safe and legal opioid prescribing issued by the Centers for Disease Control and Wisconsin Medical Examining Board. The letters also remind practitioners that Wisconsin law requires them to use the Wisconsin Prescription Drug Monitoring Program to assess a patient’s prescription history before prescribing narcotic drugs. 

Additional information may be found here:

• CDC Guideline for Prescribing Opioids for Chronic Pain:  https://www.cdc.gov/drugoverdose/prescribing/guideline.html
• Wisconsin Medical Examining Board Opioid Prescribing Guideline: https://dsps.wi.gov/Documents/BoardCouncils/MED/20180321MEBGuidelinesv8. pdf

“We know that for many, addiction began with opioids prescribed by a medical professional,” said U.S. Attorney Krueger. “By sending these letters, we are asking medical professionals to join the fight against addiction and ensure they prescribe no more opioids than are necessary.”

“Opioid addiction has touched the lives of far too many families in our state,” said U.S. Attorney Blader. “Medical professionals play a pivotal role in stemming the flow of legal opioids into unlawful channels. Today, we are asking the medical community to help prevent addictions before they start.”

The notification letters were sent as part of a broader effort by state and federal law enforcement agencies to address the opioid epidemic. Efforts to combat opioid abuse are yielding results. Nationally, according to the U.S. Drug Enforcement Administration (“DEA”)’s National Prescription Audit, opioid prescriptions were down nearly 12% for the first eight months of 2018 from the same period a year earlier. In Wisconsin, the federal and state partners participating in this notification effort include the DEA, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, the U.S. Department of Defense, and the Wisconsin Department of Justice. 

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Arthur Taylor, age 36, of Tobyhanna, Pennsylvania, pleaded guilty on February 1, 2019, before U.S. District Court Judge Malachy E. Mannion to participating in a drug trafficking conspiracy. 

According to United States Attorney David J. Freed, Taylor participated in a drug trafficking conspiracy that was responsible for distributing more than 100 grams of heroin (equivalent to more than 4,000 retail bags), marijuana, crack cocaine, percocet, and molly in the Poconos and in the state of Maine beginning in 2010 and for several years thereafter.

Taylor admitted to being a member of the Black P-Stones, a street gang whose male members were “beaten-in” to the gang and whose female members were” sexed-in” to the gang. Taylor and other P-Stones obtained heroin and other drugs from suppliers in New York and distributed them to others in Monroe County and in Maine. The P-Stones used females to transport the drugs to Maine. 

Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing for Taylor will be scheduled at a later date.

Taylor was indicted by a federal grand jury in January 2018, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, local and state police in Maine, the Monroe County District Attorney’s Office, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

This case was also 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.       

The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. The offense also carries a mandatory minimum sentence of 10 years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 8, 2019, United States District Court Judge Robert D. Mariani sentenced Luis Santos, age 51, of New York, to 60 months’ imprisonment and a three-year term of supervised release, for conspiring to possess with the intent to distribute cocaine.

According to United States Attorney David J. Freed, Santos, his co-defendant, Rafael Lora, and other individuals conspired to import nearly a kilogram of cocaine from the Dominican Republic to Hazleton, Pennsylvania.  After being charged and released on pretrial supervision, Santos was arrested attempting to enter Canada bearing false identification documents.  He was charged and convicted in the Northern District of New York for that offense.

Santos was a citizen of the Dominican Republic and obtained permanent residency in the United States.  However, as a result of this conviction, he is subject to potential deportation.

This case was also 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.

The investigation was conducted by Homeland Security Investigations, the U.S. Postal Inspectors, Customs and Border Patrol, and other state and local law enforcement agencies.  Assistant United States Attorney Phillip J. Caraballo prosecuted the case.

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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Wilson, age 25, of Hanover Township, Luzerne County, Pennsylvania, pleaded guilty on January 30, 2019, to distributing heroin and unlawfully possessing firearms in furtherance of drug trafficking before U.S. District Court Judge Malachy E. Mannion.

According to United States Attorney David J. Freed, Wilson admitted to distributing heroin in Luzerne County for a five-to-six month time period in 2017, and to accepting firearms as payment for heroin and exchanging firearms with a heroin supplier between December 2016 and September 2017.

Judge Mannion ordered a presentence report to be completed. Sentencing in the case will be scheduled at a later date.

The charges stemmed from an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Kingston Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the 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.

This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine for using or possessing a firearm in connection with a drug trafficking offense. There is also a mandatory minimum sentence of five years’ imprisonment for the firearms offense. Wilson faces up to 20 years in prison for the drug offense. Under federal law, the sentence imposed for the firearms offense must run consecutive to any other sentence. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that William Terron, age 35, of Reading, Francheska Quinones, age 26, of Reading, Amanda Boyle, age 36, of Sweet Valley, Rudolph Ford, age 30, of Olyphant, and Adam Holcomb, age 35, of Shickshinny, Pennsylvania were indicted on December 11, 2018, by a federal grand jury for conspiring to distribute methamphetamine, heroin and cocaine in Northeastern Pennsylvania. The indictment was unsealed following the arrests of the defendants.

According to United States Attorney David J. Freed, the indictment alleges that defendants conspired to distribute more than 500 grams of methamphetamine, more than 100 grams of heroin, and more than 500 grams of cocaine in Schuylkill, Luzerne and Lackawanna Counties between January 2017 and the present.  One gram of heroin is the equivalent of approximately 4,000 individual doses of heroin.

The matter was investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Pennsylvania State Police, the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania Office of Attorney General. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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

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

The maximum penalty for the charge under federal law is up to life in prison, a term of supervised release following imprisonment, and a $10,000,000 fine.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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