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

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Bin “Ben” Wen, 46, and Peng “Jessica” Zhang, 45, both formerly of Horseheads, NY, who were convicted of conspiracy to commit wire fraud and conspiracy to defraud the United States respectively, were sentenced by U.S. District Judge Elizabeth A. Wolford. Wen was sentenced to serve 33 months in prison while Zhang was sentenced to five years of probation, to include six months of home detention. The defendants were also ordered to pay $5,500,000 in restitution.

Assistant U.S. Attorneys Tiffany H. Lee and Grace M. Carducci, who handled the case, stated that between June 2010, and December 2015, the defendants participated in a scheme to defraud departments and agencies of the United States of federal research funds that were awarded to companies controlled by the defendants. The government entities defrauded by the defendants included: the National Science Foundation (NSF); the United States Department of Energy (DOE); and the United States Department of Agriculture (USDA). 

In December, 2003, Zhang incorporated United Environment & Energy, L.L.C. (UEE) in Horseheads, NY. Meanwhile, Wen incorporated Advanced Technologies and Materials, L.L.C. (ATM), in December, 2007, also in Horseheads. UEE submitted approximately 13 applications to NSF totaling over $2,600,000, 10 applications to the DOE totaling more than $5,000,000 and four applications to the USDA totaling approximately $650,000. The defendant received, through their companies, approximately $8,400,000 in awards from the NSF, the DOE, and the USDA.
Wen and Zhang submitted false and fraudulent information in Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) applications by:

• fabricating letters of support and investment;
• providing false information in research grant proposals and reports regarding business entities, business employees, business/research facilities, matching funds and investments; and
• providing falsified reports and emails regarding how federal research funds were expended.

A substantial amount of the fraudulently obtained money went toward the personal use and benefit of the defendants.

“By diverting monies that were intended to promote innovation and technology in small businesses, the defendants, through their frauds, not only swindled taxpayers but stifled economic and scientific development,” stated U.S. Attorney Kennedy. “One of the core responsibilities of my Office is to ensure that those receiving federal funds are entitled to those funds and that such funds are spent in accordance with the purpose for which they were given. Where, as here, they are not, prosecution will follow.”

Allison Lerner, NSF’s Inspector General said, “It is imperative that federal award recipients be truthful in their grant submissions and that they use grant money appropriately. Through their repeated falsification of key personnel, investments, budget figures, and other information in proposals and reports, defendants fraudulently obtained millions of taxpayer dollars intended to advance new technologies. I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort to protect the integrity of the SBIR/STTR programs.”

“The SBIR Program is an essential Department of Energy program that supports scientific excellence and technological innovation,” stated Principal Deputy Inspector General April G. Stephenson. “We appreciate the efforts of our investigative partners and the U.S. Attorney’s Office in pursuing this matter. We will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”

IRS-Criminal Investigation NY Field Office Acting Special Agent-in-Charge Jonathan D. Larsen said, “Today’s sentencing emphasizes the fact that in addition to our tax mission, we are also an essential part of the larger law enforcement community.   The detailed analysis of the extremely complex flow of money in this case demonstrated how the defendants laundered the fraudulent grant proceeds they received and led to the seizure of over $6 million in assets that will be forfeited.”

“The sentencing in this investigation of fraudulent grant practices demonstrates that those who seek to do business with the Federal government will be held responsible for maintaining the highest level of integrity,” said Douglas Shoemaker, Regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General (DOT-OIG). “The Department has made accountability a top priority and working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts in preventing, detecting and prosecuting grant fraud.”

Today’s sentencings are the result of a joint investigation by Special Agents with the National Science Foundation, Office of Inspector General, under the direction of Inspector General Allison Lerner; the Department of Energy, Office of Inspector General, under the direction of Principal Deputy Inspector General April G. Stephenson; the Internal Revenue Service, Criminal Investigations, under the direction of Acting Special Agent-in-Charge Jonathan D. Larsen, New York Field Office; and the Department of Transportation, Office of Inspector General, under the direction of Special Agent-in-Charge Douglas Shoemaker.

# # # #

SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for the sexual exploitation of several children.

David Allen Giffen, 57, was sentenced by U.S. District Judge M. Douglas Harpool to 28 years in federal prison without parole. The court also sentenced Giffen to spend the rest of his life on supervised release following incarceration.

On July 18, 2018, Giffen pleaded guilty to one count of the sexual exploitation of a child and one count of receiving and distributing child pornography.

According to court documents, Giffen had placed cameras in his bathroom and secretly recorded images and videos of three children. Investigators found images of the victim children on a Micro SD card in Giffen’s cell phone. Investigators also seized a second cell phone from Giffen that contained multiple images of child pornography.

This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Joplin, Mo., Police Department and the FBI.

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

BOISE – Elena Lupuleasa, 34, of Nampa, Idaho, was sentenced today to 39 months in prison by Senior U.S. District Judge Edward J. Lodge, U.S. Attorney Bart M. Davis announced.  Judge Lodge also ordered Lupuleasa to pay restitution in an amount to be determined at a later date and imposed three years of supervised release following her release from prison.

On November 9, 2018, Lupuleasa pleaded guilty to bank fraud and aggravated identity theft.  According to court records, from April through November of 2016, Lupuleasa devised and executed a scheme to defraud banks using checks, driver’s licenses, and other personal information stolen from Boise and Nampa residents.  Lupuleasa then forged a stolen check of one victim and made it payable to another victim.  Lupuleasa would then impersonate the payee and cash the check at a local bank by presenting the payee’s stolen driver’s license or other form of identification.

The case was investigated by the Nampa Police Department, the Boise Police Department the Ada County Sheriff’s Office, United States Postal Inspection Service, and the Canyon County Prosecuting Attorney’s Office.

# # #

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the unsealing today of an Indictment charging four individuals, CHRISTOPHER HAMMATT, a/k/a “Craig Johnson,” SUSAN HAMMATT, JOSEPH HOATS, and EDWIN TANGLAO, with participation in multiple fraud schemes.  HOATS was arrested today in California and will be presented later this afternoon before U.S. Magistrate Judge Shashi H. Kewalramani.  The HAMMATTs are expected to surrender later today in Oregon and will be presented this afternoon in federal court there.  TANGLAO was already in custody on state charges in Texas.  The case is assigned to U.S. District Judge Paul G. Gardephe.    

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged in the Indictment, the defendants fraudulently enriched themselves at the expense of others, including small businesses in New York.  Equally disturbing is the Hammatts’ alleged use of the federal courts to perpetrate their fraud.  Now, as a consequence of their alleged conduct, the Hammatts will return to the Southern District of New York not as civil plaintiffs but as criminal defendants.” 

The Indictment unsealed today in Manhattan federal court alleges two fraud schemes.  As alleged in the Indictment[1]:

The first scheme arises from a civil lawsuit in the United States District Court for the Southern District of New York, in which CHRISTOPHER HAMMATT, a/k/a “Craig Johnson,” and SUSAN HAMMATT were plaintiffs.  The HAMMATTs’ lawsuit against a multinational car company based in Detroit, Michigan (“Car Company-1”), alleged that CHRISTOPHER HAMMATT, a lawyer by training, sustained “traumatic brain injury” when the airbags suddenly deployed in his vehicle, which was manufactured by Car Company-1.  While the HAMMATTs’ lawsuit was pending, the HAMMATTs created a fake $16.5 million settlement agreement, which included a forged signature of Car Company-1’s attorney, and used the fake settlement agreement to borrow approximately $75,000 from a litigation funding company. 

To carry out their fraud scheme, and to conceal their identities when communicating with victims, the HAMMATTs created the fake identity, “Craig Johnson,” who purported to be a “legal coordinator” who represented the HAMMATTs.  In that capacity, “Johnson” negotiated directly with legal funding companies to induce them to lend money to the HAMMATTs, using the fraudulent settlement agreement as collateral.  In one email, “Johnson” wrote to a legal funding company, “I know that they [the HAMMATTs] will be getting a large sum of money in about six months, but it is so sad to see this family suffer.  They are on food stamps and get donations from the Church for their kids clothing.” 

When the HAMMATTs’ fraud came to light, SUSAN HAMMATT submitted a declaration to the Court that contained numerous false statements regarding her and her husband’s involvement in the fraud.

The Indictment also alleges that each of the defendants participated in a scheme to defraud oil and gas trading companies.  Specifically, the defendants induced victims to transmit money to the defendants in exchange for large orders of oil and gas products that the defendants could not fulfill.  To conceal the nature of the fraud, the defendants created fake companies and fraudulent documents.  For example, the Indictment alleges that JOSEPH HOATS, an attorney, and SUSAN HAMMATT created the company “Shell Western Supply & Trading,” and used the Shell Oil Company logo without permission, as a means to trick victims.  The defendants succeeded in defrauding a New York-based victim of nearly $1.5 million as part of their oil and gas scheme. 

*                      *                      *

Charts containing the names, charges, and maximum penalties for the defendants are set forth below.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. 

Mr. Berman praised the outstanding investigative work of the Special Agents with the United States Attorney’s Office for the Southern District of New York. 

This case is being prosecuted by the Office’s General Crimes Unit.  Assistant U.S. Attorney Nicholas W. Chiuchiolo is in charge of the prosecution. 

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

BOSTON – A Woburn man was indicted today in federal court in Boston for being a felon in possession of a firearm.

Vasily Hardy, 28, was indicted on one count of being a felon in possession of a firearm and ammunition. On Jan. 18, 2019, Hardy was charged by criminal complaint and arrested.

According to charging documents, on Nov. 14, 2018, a police officer conducted a vehicle stop after observing the driver committing multiple traffic violations. After identifying the driver as Hardy, the officer was informed over the radio that there was an active warrant for Hardy’s arrest. Hardy was subsequently arrested and his vehicle was searched. During the search, the officer recovered a Sig Sauer, semi-automatic pistol loaded with an eight-round magazine of .45 caliber ammunition as well as a second eight-round magazine. During an interview with law enforcement, Hardy confirmed that the handgun belonged to him and that he did not have a license to carry a firearm in Massachusetts. Further investigation revealed that Hardy was prohibited from possessing firearms and ammunition due to previous convictions, including assault and battery in 2012 and  larceny from a person in 2013, which are each punishable by more than a year in jail.

The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Wellesley Police Department, Norfolk County District Attorney’s Office and the Hillsborough County Attorney’s Office in New Hampshire. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Criminal Division is prosecuting the case.

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

United States Attorney Erica H. MacDonald today announced the sentencing of PISANU SUKHTIPYAROGE, a/k/a “Pat,” 72, owner of the Royal Orchid Restaurant, to 42 months in prison for visa fraud and alien harboring. The sentence was handed down by U.S. District Judge Wilhelmina M. Wright in St. Paul, Minnesota.

“This defendant not only violated our immigration laws, he exploited a young, vulnerable victim for his own financial and sexual benefit,” said Assistant United States Attorney Laura M. Provinzino. “While nothing can make the victim truly whole, the prison sentence - which was above the guideline range for his crimes - and restitution ordered by the Court represent a just outcome. Our hope is that this brave, resilient victim can finally move forward.”

“This individual used his knowledge of our laws to fraudulently bring the victim to our country on smoke and mirror promises of the American Dream,” said Special Agent in Charge Tracy J. Cormier, of HSI St. Paul. “Instead he used the victim for sex and forced them to work at his business without pay. HSI is proud of the work accomplished in bringing Sukhtipyaroge to justice.”

According to the defendant’s guilty plea and documents filed in court, in July 2015, SUKHTIPYAROGE assisted in the procurement of an F-1 student visa for an individual identified as A.M., a citizen of the Dominican Republic whom the defendant met and befriended. At the time, SUKHTIPYAROGE was very familiar with the F-1 student visa process and knew that an F-1 student visa is a temporary, non-immigrant visa that does not permit employment in the United States. SUKHTIPYAROGE used false statements in preparing the visa application and instructed A.M. as to what he should and should not say during the visa interview.

According to the defendant’s guilty plea and documents filed in court, October 19, 2015, upon arrival in the United States, A.M. lived with the defendant and the defendant’s family in Maplewood and attended Edison High School until May 2016. At some point during this time, A.M. began living and working at the Royal Orchid Restaurant in Columbia Heights. At the restaurant, A.M. was subjected to poor living and working conditions. SUKHTIPYAROGE told A.M. he would be paid $500 per month in cash for his labor; however, A.M. did not receive the promised pay each month, as SUKHTIPYAROGE deducted the costs incurred in bringing A.M. to the United States in a debt bondage scheme. A.M. also worked at SUKHTIPYAROGE’S home in Maplewood without pay. SUKHTIPYAROGE admitted to engaging in a sexual relationship with A.M. shortly after he brought A.M. to the United States.

SUKHTIPYAROGE has also been charged in Anoka County with one felony count of third degree criminal sexual conduct and one felony count of labor trafficking.

This case was the result of an investigation conducted by Homeland Security Investigations, the Anoka County Sheriff’s Office, U.S. Department of State Diplomatic Security Service, and U.S. Department of Labor Wage and Hour Division.

The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.

Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino prosecuted the case.

Defendant Information:                                                                                                                     

PISANU SUKHTIPYAROGE, a/k/a “Pat,” 72

Maplewood, Minn.

Convicted:

• Visa fraud, 1 count
• Alien harboring, 1 count

Sentenced:

• 42 months in prison
• 3 years of supervised release
• Restitution ordered – amount to be determined at a later date

###

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

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

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr., together with Erie County District Attorney John J. Flynn, Central Police Services (CPS) Commissioner James Janciewicz, and Daniel Rinaldo, from the New York New Jersey High Intensity Drug Trafficking Area (HIDTA), announced today a first-of-its-kind initiative which is being implemented across Erie County to enhance law enforcement’s response to opioid overdoses. The initiative calls for state and local law enforcement officers who respond to an overdose in Erie County to input certain information into their on-board computers and to follow certain protocols for the processing of overdose scenes. 

“While we may not be able to prosecute our way out of this epidemic, that does not mean that prosecution has no role in our fight” stated U.S. Attorney Kennedy. “While prevention and treatment efforts are critical to success in driving down overdose death rates, prosecution also plays an important role. Treatment represents the appropriate way to deal with those addicted to these poisons.  Prosecution represents the appropriate way to deal with those drug dealers addicted to the profits generated by their spewing this poison into our community.”

The U.S. Attorney’s Office is partnering with the Erie County District Attorney’s Office, the New York-New Jersey High Intensity Drug Trafficking Areas (HIDTA), Central Police Services, and the Erie County Chiefs Association, to implement these new protocols help to ensure that those who are selling these potentially deadly opioids receive justice and those who are addicted receive treatment.

Under the initiative, when law enforcement officers arrive at what they believe to be an opioid overdose, certain information will be collected and imputed into a law enforcement database and standardized protocols regarding the processing of the overdose scene and the collection of evidence will be followed. In addition, the information will also be entered into ODMAP, a real time, national GPS mapping system which tracks overdoses, overdose deaths, and Narcan use nationwide.

U.S. Attorney Kennedy further stated, “By standardizing the way these overdose scenes are processed, we enhance our ability to prosecute those who peddle this poison.  At the same time, by simply tracking the location of non-fatal overdoses, we enhance the ability of treatment providers to reach those who are in the greatest need.  It is this simultaneous enhancement of both our law enforcement function—prosecuting drug dealers—and the treatment function—helping addicts—which constitutes a highly effective one, two punch in our effort to combat this deadly epidemic.”

“By establishing consistent protocols for all law enforcement, we will be able to preserve critical evidence in overdose death investigations in order to prosecute these opiate dealers,” said Erie County District Attorney John J. Flynn. “I want to thank U.S. Attorney Kennedy for bringing our partners in law enforcement together on this initiative. By streamlining our efforts, we will be better equipped to identify the drug dealers, and hopefully bring an end to this deadly epidemic.”

“This initiative represents the perfect partnership between law enforcement and public health,” stated Daniel Rinaldo, Drug Intelligence Officer with the New York-New Jersey High Intensity Drug Trafficking Areas (HIDTA). “Working together to implement these protocols, gather the evidence, and interview witnesses will enable us to prepare the strongest case possible for prosecution.”

To date, the U.S. Attorney’s Office has prosecuted 16 defendants for distributing heroin and/or fentanyl which caused the death of or seriously bodily injury to 23 victims. The Erie County District Attorney’s Office has also prosecuted one defendant for manslaughter in connection with an opioid related death.    

# # # #

BOSTON – A Springfield man pleaded guilty in federal court in Springfield yesterday in connection with various fraud schemes.

Talal H. Soffan, 46, pleaded guilty to making false statements to a federally insured financial institution, wire fraud, aggravated identity theft, conspiracy, and bank fraud. U.S. District Court Judge Mark G. Mastroianni scheduled Soffan’s sentencing for May 23, 2019. 

In 2014, Soffan was charged by indictment, and in 2018, he was charged by information with additional criminal counts.

In March 2007, Soffan applied for two bank loans totaling $45,000 for his company, All Waste Management LLP. In the process of securing the loans, Soffan concealed his and an associate’s prior felony convictions. After receiving the loans, Soffan then misspent the loan proceeds, defaulted on the loans, and exploited both accounts in connection with a series of credit card bust-out schemes. In those schemes, Soffan defrauded various banks and credit card companies through 27 different accounts obtained in his name, the name of his business, other businesses, and other individuals, resulting in an overall loss of approximately $528,624.

In addition, Soffan conspired with a local real estate broker to defraud various banks relating to foreclosed properties owned by the banks. Soffan sent the broker e-mails containing his company’s genuine bid and false bids from other companies to ensure that his company received contracts to perform repair and maintenance work on the foreclosed properties. In exchange for receiving approximately $75,186 in contracts for his company, Soffan allowed the broker to keep approximately five percent of his company’s invoiced amounts. 

The charges of making false statements to a federally insured financial institution and bank fraud each provide for a sentence of no greater than 30 years in prison, up to five years of supervised release, and a fine of $1 million. The wire fraud charges each provide for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of $250,000.  The conspiracy charge provides for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. The aggravated identity theft charges provide for a mandatory two year prison sentence consecutive to any other sentence imposed. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.   

United States Attorney Andrew E. Lelling; Robert Manchak, Acting Special Agent in Charge of the Federal Housing Finance Agency; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement. Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Lelling’s Springfield Branch Office are prosecuting the case. 

HOUSTON – A 50-year-old Honduran citizen has been charged in federal court for illegally re-entering the country after having been convicted and deported for multiple sex offenses in California, announced U.S. Attorney Ryan K. Patrick.

Marvin Mejia Ramos aka Ricardo Morales Rodriguez and Martin Jose Romes-Ramirez was charged with illegally re-entering the United States following an aggravated felony conviction and subsequent deportation. According to court records, in 2007, he was convicted in California for continuous sexual abuse and lewd act upon a child. He was sentenced to six years imprisonment for those offenses and was deported in 2013, according to the complaint.  

As such, he is not permitted to return to the United States.

However, on Jan. 30, 2019, authorities with the Precinct 4 Montgomery County Constables Office discovered him during a traffic stop in New Caney. He was subsequently charged with illegal re-entry after deportation.

At a hearing in federal court today, Assistant U.S. Attorney (AUSA) Adam Laurence Goldman argued Mejia Ramos is both a flight risk and danger to the community. U.S. Magistrate Judge Dena Hanovice Palermo then ordered Mejia Ramos into custody pending further criminal proceedings.

If convicted, Mejia Ramos faces up to 20 years in federal prison.   

Immigration and Customs Enforcement – Enforcement Removal Operations conducted the investigation. AUSA Goldman is prosecuting the case.

A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

BOSTON –  A physician at the now-defunct New England Pain Management Associates Inc. was sentenced today in federal court in Boston for conspiring to falsify patient medical records in order to obtain payments from Medicare and commercial insurers for medical services that were not performed.

Moustafa Moataz Ibrahim Aboshady, 36, of Lake Forest, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 75 monthsin prison, three years of supervised release and ordered to pay restitution in the amount of $1,852,459. In September 2018, a federal jury convicted Aboshady of one count of conspiracy to make false statements in connection with health care benefit programs and two counts of making false statements in connection with health care benefit programs. In March 2018, co-conspirator Dr. Moustafa Moataz Mashali was sentenced to eight years in prison after pleading guilty to 27 counts of health care fraud, one count of conspiracy to commit mail fraud and 16 counts of money laundering.

“Mr. Aboshady helped Dr. Mashali operate one of the most dangerous pain management practices in Massachusetts,” said United States Attorney Andrew E. Lelling. “Dr. Mashali routinely dispensed large quantities of powerful narcotics to addicted patients. Mr. Aboshady assisted Dr. Mashali’s illegal behavior by using his training as a doctor to fabricate patient records, with the goal of duping Medicare and other insurers into paying Dr. Mashali for his fraudulent conduct. Moreover, Aboshady later lied about Mashali’s medical practices to regulatory authorities.”

“Dr. Aboshady engaged in unlawful, unethical, and unprofessional conduct. He used the Medicare system as his own personal ATM, cheating taxpayers and private insurance companies out of thousands of dollars by billing them for medical services that were never performed. The FBI is committed to protecting government and private health care programs and stopping those who steal from them,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.

During the time of the conspiracy, Aboshady was a medical resident in Massachusetts and Rhode Island, employed at New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA. NEPA had locations in Massachusetts and Rhode Island, and was operated by Fathallah Mashali, a pain management physician.

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

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

Aboshady was also responsible, in conjunction with the office in Cairo, for fabricating urine drug test results with false test dates, so that the tests appeared to have been performed within days of specimen collection rather than weeks or months thereafter. This information was necessary to support urine drug test billing codes submitted to Medicare and insurance companies. In fact, NEPA tested patients’ urine weeks and sometimes three months after the specimens had been collected and stored unrefrigerated in large plastic bags and containers. In addition, in response to a subpoena from the State of Rhode Island concerning some of Mashali’s patients, Aboshady helped Mashali falsify patient medical records.

“Healthcare fraud is corrosive, wasting taxpayer dollars, driving up healthcare costs, and undermining the Medicare program,” said Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health & Human Services, Office of Inspector General. “Aboshady’s falsification and fabrication of medical records to further his healthcare fraud scheme comprised the integrity of our public healthcare system, and we will continue to aggressively investigate such reckless conduct.”

“I hope this sentence sends a message to other medical providers that medical billing fraud is not tolerated in Massachusetts and when caught, you will pay a price,” said Anthony M DiPaolo, Chief of Investigations of the Insurance Fraud Bureau. “This matter also illustrates the commitment of all agencies to combat medical billing fraud which affects all citizens. The Insurance Fraud Bureau of Massachusetts places a high priority on fighting this type of insurance fraud. The collaboration in this matter is unprecedented.”

U.S. Attorney Lelling; Boston FBI SAC Bonavolonta, HHS-OIG SAC Coyne, and Massachusetts IFB Chief of Investigations DiPaolo, made the announcement today. Assistance was also provided by the Internal Revenue Service’s Criminal Investigation in Boston. Assistant U.S. Attorneys Abraham R. George, Senior Litigation Counsel of Lelling’s Civil Division, and David G. Lazarus, Chief of Lelling’s Asset Recovery Unit, prosecuted the case.

TULSA, Okla. – A Tulsa man, John D. Petrig, 49, pleaded guilty yesterday to one count of tax evasion in U.S. District Court, announced U.S. Attorney Trent Shores of the Northern District of Oklahoma and Principal Deputy Assistant Attorney General Richard E. Zuckerman. 

Chief U.S. District Judge Gregory K. Frizzell accepted Petrig’s guilty plea Tuesday in federal court and released the defendant on bond pending sentencing on May 7, 2019. 

U.S. Attorney Trent Shores stated, “The federal income tax system is based upon the compliance of the tax paying citizens of this nation. When an individual, such as Mr. Petrig, decides to shirk his responsibility to pay what he owes, then other law abiding citizens end up shouldering the burden. Mr. Petrig’s criminal acts cost taxpayers not only the loss of the unpaid taxes, but also the additional expense for investigating and prosecuting his criminal behavior.”

“The Department of Justice prosecutes tax evaders to hold them accountable for their criminal conduct and to ensure that the tax system is fairly enforced throughout the nation,” stated Principal Deputy Assistant Attorney General Zuckerman.

According to court documents, from 2000 to 2012, Petrig worked for a company as an independent contractor installing ATM machines inside casinos. The company paid him commissions based on the number of transactions executed at the ATMs. In 2012, Petrig late-filed his 2005 tax return, reporting an income of $394,317; however, he did not pay the $110,372 in taxes that he owed. Instead, from January 2012 to December 2012, Petrig attempted to evade payment of the $110,372.  When the Internal Revenue Service (“IRS”) sent a levy to Petrig’s employer directing that Petrig’s commission payments be forwarded to the IRS to pay his tax debt, Petrig sought to thwart this levy by sending a letter to his employer instructing that his future commissions be paid to a fictitious corporation.

Petrig faces a maximum sentence of 5 years imprisonment, a fine of up to $250,000, or both, and up to three years supervised release.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Shores commended special agents of IRS-Criminal Investigation, who investigated the case, and U.S. Department of Justice Tax Division Assistant Chief / Special Assistant U.S. Attorney Andrew J. Kameros and Assistant U.S. Attorneys Victor A.S. Régal and Charles M. McLoughlin, who are prosecuting the case.

Jackson, Miss. – Savannah Galvan, 30, of Philadelphia, a member of the Mississippi Band of Choctaw Indians, entered a guilty plea today before U.S. District Judge Henry T. Wingate to embezzlement for her role in the unauthorized use of a tribal-issued fuel credit card to purchase fuel for her personal use, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.

The embezzlement took place at gas stations located in Mississippi, Alabama, and Louisiana, while Galvan was employed with the Mississippi Band of Choctaw Indians as Recreation Coordinator for the Crystal Ridge Facility Building.

Sentencing has been set for May 7, 2019 at 1:30 p.m. Galvan faces a possible statutory sentence of five years in prison and a fine of $250,000.

The case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It is being prosecuted by Special Assistant United States Attorney Kevin Payne.

GREAT FALLS – A Poplar man was sentenced today to six years and eight months in prison and to three years of supervised release after he admitted beating to death a man during a quarrel in July 2017, U.S. Attorney Kurt Alme said today.

Errol Wayne Longee, 35, pleaded guilty in November to voluntary manslaughter for the July 1, 2017 death of a man at a Poplar residence on the Fort Peck Indian Reservation.

U.S. District Judge Brian M. Morris presided. Judge Morris also ordered $2,816 restitution.

Prosecutors said Longee and the victim had been hanging out and drinking in the backyard of the residence when another individual arrived. That individual made accusations against the victim and starting punching the victim in the face. Longee then started assaulting the victim, kicking the victim in the face and stomping on his head. Longee left the scene and later told a relative that he thought he had killed the victim. When interviewed by law enforcement, Longee admitted to hitting and kicking the victim multiple times.

Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI and Ft. Peck Tribal Department of Law and Justice.

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United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury on 11 counts of Wire Fraud and Money Laundering.

Paul Erickson, age 56, was indicted on February 5, 2019.  He appeared before U.S. Magistrate Judge Mark A. Moreno on February 6, 2019, and pleaded not guilty to the Indictment.

The maximum penalty upon conviction is up to 20 years in federal prison for each count, and/or a $250,000 fine for wire fraud, and/or a $500,000 fine for money laundering, 3 years of supervised release, and up to $1,100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on or about 1996, through August of 2018, Erickson knowingly and unlawfully devised a scheme and artifice to defraud and to obtain money from many victims by means of false and fraudulent pretense, representations, and promises.  Erickson owned and operated Compass Care, Inc., Investing with Dignity, LLC, and an unnamed venture to develop land in the Bakken oil fields in North Dakota. Erickson made various false and fraudulent representations to individuals located in South Dakota and elsewhere, to induce those investors to give him money to invest in his businesses, which were part of a scheme to defraud them and personally enrich Erickson.

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

The investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation.  Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.   

Erickson was released on bond.  A trial date has not been set.

ALEXANDRIA, La.– United States Attorney David C. Joseph announced that the last defendant in a Winn Parish methamphetamine distribution ring was sentenced Monday.  United States District Judge Dee D. Drell sentenced Jeremy Laraun Mamon, also known as “Pop C” and “Rilo,” 36, of Winnfield, Louisiana, to 16 years in prison and five years of supervised release for conspiracy to distribute methamphetamine.  

Mamon was one of 11 defendants named as part of an indictment filed September 28, 2017.  According to the October 22, 2018 guilty plea of Jeremy Mamon, he and 10 co-defendants conspired to distribute methamphetamine in the Winn Parish area from October 2015 to September 2017.  

All 10 defendants have now been convicted and sentenced for their part in the conspiracy:

The FBI Safe Streets Task Force and the Louisiana State Police, Alexandria Field Office Narcotics, participated in the investigation.  Assistant U.S. Attorneys Earl M. Campbell and Jessica D. Cassidy prosecuted the case.

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SAN FRANCISCO – Steven Roberson was sentenced today to 60 months in prison for possessing heroin with intent to distribute the drug, announced United States Attorney David L. Anderson and Drug Enforcement Administration Special Agent in Charge Chris Nielsen.  On January 30, 2019, Roberson’s codefendant, Kelly Olson, was sentenced to 64 months in prison for her role in the scheme.  The sentences were handed down by the Honorable Maxine M. Chesney, U.S. District Judge.

Roberson, 32, of Petaluma, Calif., pleaded guilty to the charge on October 10, 2018.  Olson, 29, also of Petaluma, pleaded guilty about a week later, on October 18, 2018.  According to the plea agreements, in January of 2018, law enforcement officers observed Roberson conducting hand-to-hand drug transactions with drug customers in the parking lot of a Safeway store in Petaluma.  On February 19, 2018, Roberson and Olson drove together to Sacramento to obtain heroin from a supplier. While the two were driving back to Petaluma, law enforcement officers stopped and eventually searched the car where, in the trunk, officers found heroin, digital scales, and plastic baggies.  Both defendants admitted they knew there was heroin in the car and that they possessed it with intent to distribute it.  In sum, 156.8 grams of heroin was found in the car.

On May 15, 2018, a federal grand jury handed down a two-count indictment charging each defendant with one count of conspiracy to distribute and possess with intent to distribute heroin, in violation of 21 U.S.C. §§ 846, and 841, and one count of possession with intent to distribute heroin, in violation of 21 U.S.C. § 841.  The defendants each pleaded guilty to the possession with intent to distribute count and the conspiracy charges were dismissed.

In addition to the prison terms, Judge Chesney sentenced each defendant to serve a 5-year term of supervised release.  Defendants currently are in custody and are beginning to serve their prison terms immediately upon sentencing.

Assistant U.S. Attorney Ravi Narayan is prosecuting the case with the assistance of Kimberly Richardson.  The prosecution is the result of an investigation by the DEA, together with Petaluma Police Department
 

CHARLESTON, W.Va. – Robert Casdorph entered a guilty plea to the felony offense of Mail Fraud, announced United States Attorney Mike Stuart.  Casdorph, 58, of  Charleston, Kanawha County, West Virginia faces up to 20 years of incarceration when he is be sentenced on May 1, 2019.  He will also be required to pay restitution to the law firm where he was previously employed.  United States Attorney Mike Stuart praised the work of the United States Postal Inspection Service  and the Federal Bureau of Investigation. 

“It’s hard enough to run a business without employees stealing from you,” said United States Attorney Mike Stuart.  “My office is committed to protecting the business community from fraudsters like Casdorph.”

Casdorph previously worked at a Charleston, West Virginia law firm and land company as both a runner and a driver.  In 2011, he was internally promoted to receive accounts and help manage money.  Casdorph devised a scheme to defraud the law firm by including personal bills within the bills that the law firm was required to pay.   He would present a check for signature that included both the law firm/land company bill and his personal bills totaled together. These included power, water, cell phone, taxes and credit card bills.  Casdorph would then place the check in the mail.  This scheme went on for several years, lasting through 2016. Casdorph also used law firm monies to renovate his home.  Finally, Casdorph forged the name of a law firm member on three checks and gave it to a local builder to continue renovations on his home.  The total financial loss to the law firm was at least $54,402.  Casdorph is no longer employed by the law firm/land company.

Assistant United States Attorney Erik S. Goes handled the prosecution.  United States District Judge Joseph R. Goodwin presided over the hearing.

Follow us on Twitter: @SDWVNewsand @USAttyStuart 

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Abingdon, VIRGINIA – A medical doctor who previously practiced in Lebanon, Va. was sentenced today to serve 151 months in federal prison following convictions on federal drug and healthcare fraud charges. First Assistant United States Attorney Daniel P. Bubar and the Office of the Virginia Attorney General made the announcement.

Dr. Dwight L. Bailey, 66, was convicted of 61 federal charges following a two-week jury trial in August of 2018. Evidence presented at trial proved that Bailey, who operated Family Healthcare Associates of Southwest VA and Ridgewood Health Care Clinic, illegally prescribed drugs to his patients.

“Dr. Bailey’s scheme to illegally prescribe opioids and other narcotics violated his patients’ trust and preyed on their addiction for his own financial gain.” First Assistant Bubar said today. “His lengthy sentence should send a strong message that our office and our federal and state partners will work tirelessly to prosecute those in healthcare who perpetuate the opioid epidemic by illegally diverting medication to harm their patients and damage the community.”    

Additional evidence showed that Baily, and other providers in his office, continually wrote prescriptions for opiates, benzodiazepines, and sleeping pills to patients who were clearly misusing, abusing, and diverting those controlled substances.  Most of the patients at Bailey’s clinic were receiving an opiate and/or a benzodiazepine.  Bailey’s income from his clinic and work at local emergency room topped $750,000 in a single year. 

Bailey was convicted of one count of conspiracy to distribute schedule II controlled substances without a legitimate medical purpose, one count of conspiracy to distribute schedule III controlled substances without a legitimate medical purpose, one count of conspiracy to distribute schedule IV controlled substances without a legitimate medical purpose, 24 counts of distribution of schedule II controlled substances without a legitimate medical purpose, three count of distribution of schedule III controlled substances without a legitimate medical purpose, 32 counts of distribution of a schedule IV controlled substances without a legitimate medical purpose, and one count of maintaining a place for the purpose of distributing controlled substances.

The investigation of the case was conducted by the Virginia Medicaid Fraud Control Unit and the Virginia State Police.  The case was prosecuted by Special Assistant United States Attorneys/Virginia Attorneys General Janine Myatt and Nicole S. Terry and Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.

Four people were indicted in federal court for firearms crimes.

Indicted are: Jevonn Goolsby, 29, of Akron; Seirgio Kindell, 30, of Canton; Charles E. Goode Jr., 37, of Lakewood, and Dwayne J. Wilson, 34, of Euclid.

Goolsby is charged with being a felon in possession of ammunition. Goolsby possessed a Hi-Point C9 pistol and seven rounds of ammunition on August 3, 2018, despite previous convictions for aggravated robbery and robbery, according to the indictment.

Kindell is charged with being a felon in possession of a firearm and ammunition. Kindell possessed Walther .22-caliber pistol and ammunition on December 5, 2018, despite a previous conviction for felonious assault with a firearm specification, according to the indictment.

Goode is charged with being a felon in possession of a firearm and ammunition. Goode possessed Ruger 9 mm pistol and ammunition on December 2, 2018, despite a previous conviction for aggravated assault, attempted felonious assault and aggravated robbery with a firearms specification, according to the indictment.

Wilson is charged with being a felon in possession of a firearm and ammunition. Wilson possessed Smith & Wesson 9 mm pistol and ammunition on December 16, 2018, despite a previous conviction for domestic violence and burglary, according to the indictment

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation.  In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Akron Police Department (Goolsby). 

They are being prosecuted by Assistant U.S. Attorneys Damoun Delaviz, Aaron P. Howell and Kelly L. Galvin.

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

An Elyria man who stabbed a woman was indicted in federal court for carjacking.

Johnny G. Mack III, 39, was indicted on one count of carjacking after he used force to steal a 2016 Nissan Altima on December 12, 2018, according to the indictment.

Mack pulled a knife and threated to stab the driver of the Altima as he pushed her into her car. Mack stabbed the victim, causing small puncture wounds to her legs, stomach and hands, according to court documents.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations.  In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

This case is being investigated by the FBI and Elyria Police Department. It is being prosecuted by Assistant U.S. Attorney Scott Zarzycki.

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.