PROVIDENCE, RI –A Providence man who admitted to possessing dozens of videos and images of child pornography was sentenced today to 30 months in federal prison, announced United States Attorney Aaron L. Weisman, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, and Rhode Island State Police Superintendent Colonel James M. Manni.

At the time of his guilty plea in December 2018, Samuel Mendez-Garcia, 43, admitted to belonging to an online social media group that viewed and exchanged child pornography. Mendez-Garcia also admitted to sharing child pornography via Facebook messenger.

According to information presented to the Court, in late March 2018, the National Center for Missing and Exploited Children received information from security personnel at Facebook that a user of their services, with an IP address in Rhode Island, uploaded child pornography. The information was forwarded to the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force who determined that the IP address and the Facebook account belonged to Mendez-Garcia.

On July 19, 2018, members of the ICAC task force executed a court-authorized search of Mendez-Garcia’s residence and seized a laptop computer and a cell phone owned by Mendez-Garcia. Simultaneously, law enforcement officers met with Mendez-Garcia at his place of employment and seized a cell phone that was in his possession. A forensic analysis of Mendez-Garcia’s cell phones by a member of the ICAC Task Force revealed dozens of videos and images of child pornography, including images involving prepubescent minors and sadistic/masochistic conduct.

Mendez-Garcia was arrested on August 1, 2018 and ordered detained in federal custody.

An immigration detainer has been lodged against Mendez-Garcia by U.S. Immigration and Customs Enforcement after it was determined that he entered the United States illegally. It was also determined that Mendez-Garcia was prevented from entering the United States in 2002 when he illegally attempted to cross the U.S. border from Mexico.

The case was prosecuted by Assistant U.S. Attorney John P. McAdams.

United States Attorney Aaron L. Weisman acknowledges and thanks the Newport Police Department, a member of the ICAC Task Force, for its assistance in the investigation of this matter.

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Gulfport, Miss. – Victor Coleman a/k/a "Stone," 33, of Laurel, was sentenced today by U.S. District Judge Sul Ozerden to 360 months in federal prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Homeland Security Investigations in New Orleans. Coleman was also ordered to pay a $10,000 fine.

On January 23, 2018, a cooperating source placed a recorded phone call to Coleman inquiring about the purchase of methamphetamine. During the phone call, Coleman stated that he was currently out of town but would have four ounces of methamphetamine delivered to the source. Coleman later told the source to meet Jack Hales at the fast food restaurant on Pass Road in Harrison County to get the drugs. He also provided the source with Hales’ phone number so they could have further conversations about the deal, if necessary. Later that day, agents arrested Hales while he was attempting to make the meth delivery on behalf of Coleman. In total, the source purchased approximately four pounds of methamphetamine from Coleman over the course of a few months.

Hales previously pled guilty to his role in the conspiracy. He was sentenced to 157 months in federal prison, followed by five years supervised release, and ordered to pay a $5,000 fine.

The case was investigated by Homeland Security Investigations in Gulfport, and it was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.

Gulfport, Miss – Consuelo Azeneth Garcia Lopez, 39, of Laredo, Texas, pled guilty today before U.S. District Judge Sul Ozerden to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and DEA Special Agent in Charge Brad L. Byerley.

On September 27, 2016, Garcia Lopez was traveling eastbound on Interstate 10 when she was pulled over for a traffic violation by a Gulfport police officer near mile marker 37. She informed the officer that she was tired, having driven all day, but could not give a location to which she was traveling. Instead, she said she would be told where to go when she arrived in Alabama. The officer learned that Garcia Lopez had several border crossings into and out of Mexico. He asked and obtained consent to search the vehicle and located almost 5 kilograms of pure methamphetamine hidden in the vehicle. Garcia Lopez was legally in the country but is not a U.S. citizen.

Garcia Lopez will be sentenced on July 30, 2019 by Judge Ozerden, and faces a maximum penalty of life in prison and a $10,000,000 fine.

The case was investigated by the Gulfport Police Department and the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Meynardie.

A man who illegally possessed a firearm was sentenced on April 29, 2019, to more than three years in federal prison.

Tondrell Darnez Gary, Jr., age 23, from Waterloo, Iowa, received the prison term after a November 5, 2018, guilty plea to being a drug user in possession of a firearm.

At the guilty plea, Gary admitted he possessed a Ruger 9mm handgun on June 11, 2018.  Gary admitted that when police attempted to stop a car he was traveling in, he tossed the gun out of the car window into a residential area.  Police eventually stopped the car and Gary admitted to being a regular marijuana user. 

Gary was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Gary was sentenced to 41 months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

This case was brought as part of Project Safe Neighborhoods (PSN).  PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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

The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.

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

The case file number is 18-CR-2047.

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A convicted felon who illegally possessed a firearm was sentenced on April 29, 2019, to more than five years in federal prison.

Dondre Minor, age 23, from Chicago, Illinois, received the prison term after a November 20, 2019 guilty plea to being a felon in possession of a firearm. 

Evidence during the case established that Minor illegally possessed an AR556 .223 caliber semi-automatic firearm on February 21, 2018.  Minor and two other individuals took various guns outside of Dubuque and fired multiple rounds from the guns while filming a video. Minor possessed the firearm after being convicted of criminal gang participation, a felony offense. 

Minor was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Minor was sentenced to 70 months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

This case was brought as part of Project Safe Neighborhoods (PSN).  PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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

The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Dubuque Police Department. 

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

The case file number is 18-CR-1042.

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An illegal alien was sentenced to 21 months’ in federal prison today.

Luis Alberto DeLoera Serna, age 40, received the prison term after a January 11, 2019, guilty plea to one count of possession of a firearm by a prohibited person.

Evidence produced by the United States at the change of plea and sentencing hearings revealed DeLoera Serna, was not only an alien illegally in the United States and drug user in possession of a firearm, but that he was also an armed drug dealer with a criminal history.   That history included traffic offenses, domestic violence, and seven illegal entries into the United States. 

DeLoera Serna was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand.  DeLoera Serna was sentenced to 21 months’ imprisonment.  He must also serve a two-year term of supervised release after the prison term.  There is no parole in the federal system.  DeLoera Serna is being held in the United States Marshal’s custody until he can be transported to a federal prison.

This case was brought as part of the Project Safe Neighborhoods (PSN).  PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violence crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violence offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild. 

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

The case file number is 18-CR-04091.

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NEW ORLEANS, LOUISIANA – DANA ALVAREZ, age 49, a resident of Holden, Louisiana, pled guilty Thursday, April 25, 2019 to conspiracy to defraud the United States with regard to tax returns announced U.S. Attorney Peter G. Strasser.

According to court documents, ALVAREZ worked for Crown Tax Service, LLC, located in Kenner, Louisiana. ALVAREZ and others conspired to defraud the United States by fraudulently minimizing tax liability and fraudulently inflating tax refunds claimed on the tax returns of Crown Tax Service’s clients, and for personal enrichment.

ALVAREZ faces 5 years of imprisonment as to Count 1, 3 years of supervised release and a possible $250,000 fine.   Sentencing will occur on July 25, 2019.

U.S. Attorney Strasser praised the work of the Internal Revenue Service, Criminal Investigations Division for its work in investigating this case.

The case is being prosecuted by Trial Attorney Lauren Castaldi, Department of Justice Tax Division, and Assistant U.S. Attorney G. Dall Kammer, Supervisor, General Crimes.

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BOSTON – A Springfield man was arrested today and charged in federal court with distributing cocaine.

Samuel Diaz, a/k/a “Sammy,” 36, was indicted on one count of distribution and possession with intent to distribute cocaine.

The indictment alleges that, on March 24, 2015, Diaz distributed and possessed with intent to distribute cocaine.

The charge of distributing and possessing with intent to distribute cocaine provides a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. 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 D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Lelling’s Springfield Branch Office is prosecuting the case.

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

BOSTON – Two men have been sentenced in federal court in Boston for their roles in a cocaine conspiracy operating in and around the Taunton and Worcester areas.

Angel Oyola, 36, of Caguas, Puerto Rico, was sentenced yesterday by U.S. Senior District Court Judge Douglas P. Woodlock to two years in prison and three years of supervised release. In January 2019, Oyola pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.

Luis Elias, 44, of Worcester, was sentenced today by Judge Woodlock to 78 months in prison and four years of supervised release. In January 2019, Elias pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine and one count of conspiracy to launder monetary instruments.

Oyola, Elias, and eight co-defendants, were charged in May 2018 for their roles in a large scale cocaine conspiracy operating in and around the Taunton and Worcester areas. The charges were a culmination of a nine-month investigation aimed at attacking the increased volume of cocaine flooding southern and central Massachusetts. The defendants allegedly controlled and managed a lucrative and sophisticated drug trafficking and distribution ring in the region. 

In November 2017, Oyola brokered and coordinated a transaction for nine kilograms of cocaine, which were shipped from Puerto Rico to Massachusetts.  Elias received multiple kilograms of cocaine when they were shipped from Puerto Rico to Worcester and also shipped and carried drug proceeds back down to Puerto Rico. In January 2018, Elias was stopped at the San Juan International Airport with $41,700 in U.S. currency in his luggage.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Bristol County District Attorney Thomas Quinn; and Fairhaven Police Chief Michael Myers made the announcement today. Assistant U.S. Attorney Lauren Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the cases.

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

The Justice Department announced today that US WorldMeds LLC (USWM) has agreed to pay $17.5 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by paying kickbacks to patients and physicians to improperly induce prescriptions of its drugs, Apokyn® and Myobloc®. USWM is a pharmaceutical manufacturer headquartered in Louisville, Kentucky.

“The Department of Justice is committed to ensuring that physicians’ and patients’ selection of medications is not influenced by improper financial considerations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The nation’s health care programs and taxpayers deserve health care companies that play by the rules, including the Anti-Kickback Statute.”

“Pharmaceutical companies and other healthcare providers that pay kickbacks to patients and physicians to improperly induce drug prescriptions drive up the costs of health care and divert critical resources from the Medicare program,” said U.S. Attorney John H. Durham for the District of Connecticut. “This case originated with the filing of whistleblower lawsuits currently pending in the District of Connecticut, and the whistleblowers will be handsomely rewarded for exposing this scheme. We encourage all individuals who are aware of fraud against the government to come forward. The Connecticut U.S. Attorney’s Office will continue to pursue companies and providers that defraud federal health care programs.”

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part D, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering, directly or indirectly, any remuneration — which includes paying patients’ copay obligations — to induce Medicare patients to purchase the company’s drugs.

USWM substantially increased the price of Apokyn in or around January 2012, a decision that resulted in a corresponding increase to Medicare patients’ copays — which for many patients exceeded $5,000 per year. The United States alleged that, from the time of the price increase through June 30, 2013, USWM illegally paid Medicare patients’ Apokyn copays through a third-party foundation. During the relevant time period, USWM allegedly knew it was the only donor to the foundation’s Parkinson’s Disease fund and that virtually all of the fund’s donations were spent on Medicare Apokyn patients. The United States alleged that these payments represented illegal inducements to patients in violation of the Anti-Kickback Statute and False Claims Act.

The United States also alleged that USWM paid kickbacks to two physicians to induce prescriptions of Apokyn and Myobloc. Specifically, the United States alleged USWM paid these physicians excessive speaking and consulting fees and provided impermissible entertainment, such as lavish meals, private plane rides, and all-expense paid trips with their spouses (including trips to the Kentucky Derby).

Contemporaneously with the False Claims Act settlement, USWM has entered into a “Corporate Integrity Agreement” with the Department of Health and Human Services, Office of Inspector General. The five-year CIA requires, among other things, that USWM implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs comply with the law. In addition, the CIA requires reviews by an independent review organization, compliance–related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.

“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the U.S. Department of Health and Human Services. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program. Simply put, OIG’s goal is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without the corrupt or profit-driven influence of drug manufacturers.”

“Ensuring the integrity of TRICARE, the U.S. Defense Department's health care program for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. “The settlement agreement announced today is the direct result of a joint investigative effort and is demonstrative of the DCIS' commitment to work with its law enforcement partners to investigate kickback schemes that divert funds from TRICARE and ensure that TRICARE patients properly receive the care and treatment that they deserve.”

The False Claims Act allegations resolved by the settlement were originally brought in lawsuits filed by whistleblowers under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $3,150,000.00 as their share of the recovery.

The investigation was conducted by the Civil Division of the Department of Justice; the U.S. Attorney’s Office for the District of Connecticut; the Department of Health and Human Services Office of Inspector General; the Food and Drug Administration, Office of Criminal Investigations; and Department of Defense Office of Inspector General, Defense Criminal Investigative Service.

The cases are captioned United States ex rel. Bennett v.US WorldMeds, LLC, The Assistance Fund, Inc. et al., No. 3:13-CV-363 (D. Conn.) and United States ex rel. Chinnapongse v.US WorldMeds, LLC, No. 3:16-cv-0080 (D. Conn.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.

KANSAS CITY, Mo. – A California man was sentenced in federal court today for his role in a scheme to steal tax refund checks from the mail and cash them at banks by using fake driver’s licenses.

Sharieff A. Sylvester, 27, of Moreno Valley, Calif., was sentenced by U.S. Chief District Judge Beth Phillips to three years in federal prison without parole. The court also ordered Sylvester to pay $20,416 in restitution.

On Jan. 4, 2019, Sylvester pleaded guilty to bank fraud and aggravated identity theft. In April of 2016, Sylvester and several others traveled through Colorado and Kansas into Missouri in a scheme to defraud Academy Bank using tax refund checks stolen from the mail and fake driver’s licenses. Using fraudulent identification documents, they presented the stolen checks in order to open bank accounts and withdraw funds at various branches of Academy Bank in Colorado, Kansas, and Missouri.

The conspiracy defrauded Academy Bank and the U.S. Treasury of a total of $447,517.

For example, on April 22, 2016, Sylvester used a counterfeit driver’s license to pass a stolen tax refund check at an Academy Bank branch in Parker, Colo. Sylvester presented the stolen check for $3,838 as a deposit into a newly created bank account. Sylvester then withdrew $3,808, leaving only $30 in the account.

Sylvester cashed six stolen tax refund checks in this manner, totaling $20,416. Each of these transactions was captured on bank security video, including a transaction at an Academy Bank in St. Joseph, Mo.

On April 24, 2016, police officers in Denver, Colo., recovered 19 counterfeit California driver’s licenses, including one bearing a photo of Sylvester and the name of the victim whose stolen check was passed two days earlier in Parker, from a room at the Renaissance Hotel.

Two co-defendants have pleaded guilty and await sentencing. Mistie Smith, 29, of Moreno Valley, Calif., pleaded guilty on Jan. 25, 2019, to conspiracy to commit bank fraud, bank fraud, and identity theft. Joseph R. Hooks, 26, of Bloomington, Calif., pleaded guilty on Jan. 25, 2019, to bank fraud and aggravated identity theft.

This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation, and the U.S. Treasury Inspector General for Tax Administration.

Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Richard Ronald Wells of Spokane, Washington pleaded guilty to multiple criminal charges in connection with his role in a conspiracy to defraud an insurance company by staging an automobile accident and to launder the criminally derived proceeds. Richard Ronald Wells pled guilty to six counts of mail fraud, one count of conspiracy to commit mail and wire fraud, one count of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Chief United States District Judge Thomas O. Rice accepted Wells’ nine guilty pleas and scheduled a sentencing hearing for July 30, 2019, at 10:00 a.m. in Spokane, Washington.

According to court documents and information disclosed during court proceedings, Wells admitted to conspiring with others to stage an October 2016 accident in Liberty Lake, Washington, involving Wells’ 2015 Ram 3500 truck, Christopher Joseph Frangella’s 2005 Ford F250 truck, and another individual’s 2005 Baja boat in order to defraud Safeco Insurance Company out of approximately $338,266. Wells and Frangella allowed the other individual to deliberately crash Wells’ Ram 3500 truck into Frangella’s truck while towing the other individual’s boat. False material representations were made to police, emergency and medical personnel, and Safeco Insurance Company about the manner in which the accident occurred and the cause, nature and extent of the injuries incurred. Wells and the others falsely claimed that they suffered injuries from the accident and communicated with Safeco about their fraudulent claims via interstate telephone calls, facsimile transmissions, and mailings. Wells received an approximate $59,557 split of the fraud proceeds in the form of a check from Safeco.

Eight other individuals have pleaded guilty to criminal charges for their role in the scheme to defraud insurance companies: Ryan Folks Park of Spokane, Washington, pleaded guilty to fourteen counts of mail fraud, one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit health care fraud, two counts of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Park admitted to directly participating in at least thirteen accidents staged by co-conspirators between 2013 and 2017 in Washington, Nevada, California, and Idaho. The fraudulent insurance proceeds generated by the thirteen staged accidents totaled approximately $2,836,852. He is scheduled to be sentenced on June 6, 2019.

Kimberly Rita Boito of Spokane, Washington, pleaded guilty to three counts of mail fraud, one count of wire fraud, one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit health care fraud, two counts of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Boito admitted to participating in at least four staged accidents generating approximately $1,238,964 in fraud proceeds. She is scheduled to be sentenced on June 13, 2019.

Christopher Joseph Frangella of Nine Mile Falls, Washington, pleaded guilty to five counts of mail fraud and one count of conspiracy to commit mail and wire fraud. Frangella admitted to participating in five staged accidents in Washington, Idaho and Nevada. The fraudulent proceeds generated from the five accidents totaled approximately $968,737. He is scheduled to be sentenced on June 6, 2019.

Bonnie Jean Bonney of Placerville, California, pleaded guilty to five counts of mail fraud, one count of wire fraud, and one count of conspiracy to commit mail and wire fraud. Bonney admitted to participating in at least four staged accidents in California and Nevada which generated approximately $1,183,872 in fraudulent proceeds. She is scheduled to be sentenced on May 8, 2019.

Brittany Jo Harris of Newport, Washington, pleaded guilty to two counts of mail fraud, one count of conspiracy to commit mail and wire fraud, and one count of conspiracy to commit health care fraud. Harris admitted to participating in at least two staged accidents in Idaho and California that generated approximately $448,707 in fraudulent insurance proceeds. She is scheduled to be sentenced on July 18, 2019.

Stephanie Stock of San Jose, California, pleaded guilty to one count of conspiracy to commit mail and wire fraud. She is scheduled to be sentenced on July 16, 2019.

Matthew David Carter of Las Vegas, Nevada pleaded guilty to four counts of mail fraud and one count of conspiracy to commit mail and wire fraud. Carter admitted to participating in two staged accidents in Las Vegas, Nevada, that generated approximately $566,512 in fraud proceeds. He is scheduled to be sentenced on July 10, 2019.

Jason Allan Westfall of Las Vegas, Nevada, pleaded guilty to two counts of mail fraud, and one count of conspiracy to commit mail and wire fraud. Westfall admitted to participating in one stated accident in Las Vegas, Nevada, that generated approximately $275,607 in fraud proceeds. He is scheduled to be sentenced on July 10, 2019.

The vehicles used in some of the staged automobile accidents included: a 2002 Jaguar Vanden Plus; a 2005 Jaguar; a 2001 Jaguar XK8; a 2004 Infiniti FX35; a 2004 Cadillac Escalade; a 2006 Land Rover; a 2004 Mercedes Benz ML350; a 2008 Cadillac CTS; a 2007 BMW X3; and a 2001 BMW 530I. A 1995 Chaparral was used in a staged boating accident.

Eleven other defendants have been named in an indictment and are awaiting trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This investigation was conducted by the Federal Bureau of Investigation, IRS Criminal Investigation, United States Marshals Service, United States Social Security Administration Office of the Inspector General, and United States Drug Enforcement Administration, with assistance from the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.

KANSAS CITY, Mo. – A Sedalia, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and prescription opioids.

Jackie R. Shelledy, 57, was sentenced by U.S. District Judge Roseann Ketchmark to 25 years in federal prison without parole. The court also sentenced Shelledy to 10 years of supervised release following incarceration.

Shelledy was convicted at trial on Nov. 2, 2018. According to court documents, Shelledy possessed or distributed at least 2.3 kilograms of methamphetamine as well as prescription opioids during the drug-trafficking conspiracy that lasted from Jan. 1, 2015, to Feb. 14, 2018. Shelledy purchased and redistributed methamphetamine in Kansas City, Sedalia, Springfield, Warsaw, and other locations.

Evidence introduced during the trial indicated that Shelledy, a member of the Galloping Goose Motorcycle Club, sold methamphetamine and prescription pills to co-defendant Teresa A. Wolfe, 53, of Sedalia. Wolfe then distributed the illegal drugs to other individuals. Shelledy also purchased methamphetamine and prescription pills from Wolfe.

An undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives made a series of undercover purchases of methamphetamine as well as some prescription pills from Wolfe.

A search warrant was executed at Shelledy’s residence on Feb. 13, 2018. Officers seized drug paraphernalia and a bottle of prescription pills in someone else’s name.

Wolfe and co-defendants Joseph E. Whitlow, 42, of Sedalia, and James “Manny” Smith, 56, of Clinton, Mo., have pleaded guilty to their roles in the drug-trafficking conspiracy and await sentencing. Wolfe also pleaded guilty to 14 additional counts related to distributing methamphetamine. Whitlow also pleaded guilty to being a felon in possession of a firearm. 

Smith testified at trial that he introduced Shelledy to his source of methamphetamine in exchange for a motorcycle. During this introduction, Shelledy received a pound (453.6 grams) of methamphetamine from Smith’s supplier. Other individuals, who were not charged in the same conspiracy, testified during the trial that they sold pound quantities of methamphetamine to Shelledy.

The court also found that Shelledy attempted to obstruct justice when he tried to persuade a fellow inmate to falsely testify during the trial that another witness had lied to the jury.

Co-defendant Randall L. Rozier, 57, of Sedalia, was sentenced to 27 months in federal prison without parole after pleading guilty to being an illegal drug user in possession of firearms. Rozier was in possession of seven handguns when he was stopped by a Sedalia police officer for a traffic violation.

This case is being prosecuted by Assistant U.S. Attorneys Patrick Edwards and Emily A. Morgan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sedalia, Mo., Police Department.

CLARKSBURG, WEST VIRGINIA – Desmon Johnson, of Parkville, Maryland, has admitted to a firearms charge, United States Attorney Bill Powell announced.

Johnson, age 35, pled guilty to one count of “Unlawful Possession of a Firearm.” Johnson, having previously been convicted of a felony, admitted to having five firearms in his possession in September 2016 in Preston County.

Johnson faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & violent Crimes Task Force, a HIDTA-funded initiative, investigated.

U.S. Magistrate Judge Michael John Aloi presided.

            WASHINGTON – Paul Bernard Jones, 59, of Washington, D.C., was sentenced today to 70 months’ imprisonment on a federal bank robbery charge for a hold-up last summer in downtown Washington, announced U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Jones pled guilty in the U.S. District Court for the District of Columbia on January 28, 2019. The plea, which the Court approved, called for an agreed-upon prison sentence of 70 to 87 months, to be followed by three years of supervised release. The Honorable Amy Berman Jackson sentenced Jones to 70 months’ incarceration, followed by three years of supervised release. As part of Jones’s sentence, he was ordered to forfeit $1,433 of U.S. Currency found on his person after the bank robbery, and pay back the bank $17 in restitution. Finally, Judge Berman Jackson ordered Jones to undergo anger management treatment, substance abuse treatment, and a variety of other conditions upon his release.

            According to plea documents, on June 11, 2018, at approximately 9:10 a.m., Jones entered a TD Bank branch in the 1700 block of Connecticut Avenue NW. He walked up to a teller, took a wadded-up piece of paper, and tossed it at her. He then stated “give me everything, give me hundreds, fifties, and twenties only and don’t push anything. I have something on me.” The wadded-up piece of paper also demanded money and contained a threat. The teller provided Jones with $1,450 in cash and he fled the bank.

            Within minutes, the Metropolitan Police Department and FBI responded to the bank. An MPD officer observed Jones at the intersection of 14th and R Streets NW, a few blocks from the bank. He tried to run, but was immediately apprehended. Law enforcement located $1,433 in cash in a search of the defendant. Jones has been in custody since his arrest.

            The prosecution grew out of the efforts of the FBI Bank Robbery Task Force.

            In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Catherine O’Neal and Legal Assistant Emma Atlas of the U.S. Attorney’s Office. Finally, they commended the work of Assistant U.S. Attorney Gregory Rosen of the Violent Crime and Narcotics Trafficking Section, who prosecuted the matter.

WHEELING, WEST VIRGINIA – Dr. George P. Naum, of Wheeling, West Virginia, was found guilty today of illegally distributing controlled substances, United States Attorney Bill Powell announced.

After a six-day trial, a jury found Naum, guilty of one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice,” and four counts of “Aiding and Abetting the Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” He was found not guilty of one count of “Aiding and Abetting the Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” Naum, age 60, conspired with others to illegally distribute controlled substances from a drug treatment center, Advance Healthcare, Inc., in Weirton, West Virginia from 2008 to 2016.

“Successful prosecutions like this one are complex, time consuming, and require great effort by talented prosecutors and law enforcement agents.  The vast majority of medical providers are honorable and law abiding professionals. However, our determination to bring drug dealing doctors and other medical providers who violate the criminal laws and simultaneously ignore their professional obligations to do no harm is unwavering,” said Powell. 

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

Assistant U.S. Attorneys Sarah E. Wagner and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, the Office of Inspector General at the U.S. Department of Health and Human Services, WV Offices of the Insurance Commissioner Fraud Division, WV Medicaid Fraud Control Unit, Office of Ohio Attorney General Health Care Fraud, Ohio Bureau of Workers’ Compensation, the Hancock-Brook-Weirton Drug Task Force, a HIDTA-funded initiative, the Greater Harrison County Drug Task Force, a HIDTA-funded initiative, West Virginia State Police, the Hancock County Sheriff’s Office, and the Weirton Police Department investigated. 
 
Senior U.S. District Judge Irene M. Keeley presided.

St. Louis, MO – Tina L. Obermeier, RPh, 59, of Webster Groves, MO, entered a guilty plea to one count of Obtaining Controlled Substance by Fraud or Forgery before Senior United States District Judge E. Richard Webber today.  Obermeier is scheduled to appear for sentencing on July 24, 2019.

According to court documents, Obermeier was employed as a pharmacist at SSM St. Clare Health Center in Fenton, Missouri, during the time of the offense from January 2017 to April 2018.  She would illegally obtain drugs such as hydrocodone, methadone, methylphenidate, and alprazolam from the pharmacy at St. Clare.  Obermeier took the drugs in different ways.  In some instances, she hid the drugs under her lab coat or other clothing instead of placing prescribed drugs in bins for delivery to patients.  On other occasions, she reprinted labels for previously filled prescriptions causing the prescriptions to be filled a second time.  Obermeier also printed labels and filled prescriptions for patients for whom there were no drugs prescribed.  Obermeier stole approximately 2,476 controlled substances from the Pyxis medical station in the St. Clare pharmacy.  Obermeier took the drugs for her own personal use. 

Obermeier faces a maximum penalty of four years and a fine of not more than $250,000.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by Drug Enforcement Administration.  Assistant U.S. Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.        

McALLEN, Texas ‐ The owner of a durable medical equipment (DME) company has been ordered to federal prison for defrauding Medicaid of more than $3 million, announced U.S. Attorney Ryan K. Patrick. Anna Ramirez-Ambriz, 57, of McAllen, pleaded guilty March 31, 2017.

Today, U.S. District Judge Randy Crane handed Ramirez-Ambriz a 78-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay more than $3 million in restitution to the Texas Medicaid Program.

Ramirez-Ambriz owned Compassionate Medical Supply located in Edinburg.  From 2007 through 2013, Ramirez-Ambriz billed Texas Medicaid for higher quantities and more costly incontinence supplies than were actually delivered to more than 100 Texas Medicaid recipients. Compassionate employees were instructed to provide recipients with fewer and less expensive incontinence supplies than Ramirez-Ambriz billed to Texas Medicaid. As part of her plea, Ramirez-Ambriz admitted she submitted false and fraudulent claims to Texas Medicaid. 

As a result of her scheme, Ramirz-Ambriz further admitted that Texas Medicaid suffered a loss of $3,143,149.41.

Ramirez-Ambriz was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

The Texas Attorney General’s Medicaid Fraud Control Unit, FBI and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the case.

CORPUS CHRISTI - A 65-year-old Corpus Christi sex offender has received a lengthy federal prison sentence following his conviction for distribution of child pornography, announced U.S. Attorney Ryan K. Patrick. Manuel Diaz pleaded guilty Jan. 31, 2019.

Today, U.S. District Judge Neva Gonzales Ramos sentenced Diaz to 180 months in federal prison. The sentence will be immediately followed by 1o years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Diaz will also be ordered to register as a sex offender.

Following the imposition of the lengthy term, the defense called it “essentially a death sentence.”

Diaz has been a sex offender since 1984, when he was convicted for sexually assaulting a child out of Harris County.

On July 3, 2017, several employees at a local drug store noticed Diaz as he scrolled through photos on a kiosk in the photo lab area - in plain view of employees and customers. People noticed what they believed to be images of child pornography among what they described as “a lot” which were stored on Diaz’ phone and hooked into the kiosk by a data cable. Employees contacted local law enforcement who placed Diaz under arrest. Diaz subsequently confessed to possessing the images.

In total, Diaz was in possession of more than 100 images of child pornography and 65 videos containing child pornography. A forensic evaluation of his phone led investigators to several messages on a popular social media app in which Diaz had sent the images to other users, including people Diaz believed were underage females. 

Diaz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Immigration and Customs Enforcement’s Homeland Security Investigations and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted the investigation.

Assistant U.S. Attorneys Brittany L. Jensen and Hugo R. Martinez prosecuted the case, which 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."

HOUSTON - The U.S. Attorney’s Office (USAO) for the Southern District of Texas and the Department of Justice’s (DOJ) Civil Rights Division hosted a roundtable today for community organizations to discuss the problem of sexual harassment in housing, announced U.S. Attorney Ryan K. Patrick.

The event included personnel from legal aid offices, fair housing organizations, shelters and transitional housing providers, who often work with vulnerable populations and are most likely to become victims of such harassment.

The DOJ, through USAOs and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination the law prohibits.

“Sexual harassment in housing - which typically involves a landlord extorting sexual favors from vulnerable tenants - is an egregious violation of the Fair Housing Act,” said Patrick. “My office is dedicated to uncovering such violations where they exist and using every available tool to stop this unlawful and despicable behavior.”

The roundtable is part of DOJ’s Sexual Harassment in Housing Initiative. It seeks to identify barriers to reporting sexual harassment in housing, increase awareness of enforcement efforts - both among survivors and those to whom they report - and collaborate with federal, state and local partners to increase reporting and help survivors quickly and easily connect with federal resources.

The USAO is working closely with the Civil Rights Division to ensure people are aware of options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Today’s roundtable was just such an example designed to increase awareness and build strong partnerships in the community and combat this problem together.

While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in housing which the Fair Housing Act prohibits. DOJ brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants and evicted tenants who resisted their sexual overtures.

Unfortunately, many instances of sexual harassment in housing continue to go unreported. The investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.

In October 2017, the Justice Department launched the initiative to combat sexual harassment in housing.  In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the launch of a national Public Service Announcement.

Since launching the initiative, the Justice Department has filed nine lawsuits alleging a pattern or practice of sexual harassment in housing.  The Justice Department has filed or settled 14 sexual harassment cases since January 2017, and has recovered over $2.2 million for victims of sexual harassment in housing.

DOJ encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling 844-380-6178 or emailing them.

Individuals who believe they may have been victims of discrimination may also file a complaint with the USAO or by email.