Over the past two weeks, five defendants have pleaded guilty or have been sentenced in the Northern District of Oklahoma for sex crimes involving minors, announced U.S. Attorney Trent Shores. The prosecutions are part of the Department of Justice’s Project Safe Childhood initiative and come on the heels of Operation Broken Heart, a two-month, nationwide operation that netted almost 1,700 suspected online child sex offenders and identified 308 offenders who either produced child pornography or committed child sexual abuse.

The Project Safe Childhood initiative marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and identifies and rescues victims.

“Our Project Safe Childhood initiative is crucial to ferreting out criminal deviants who try to sexually exploit minors. We conduct local undercover sting operations as well as use cyber-based investigative techniques to identify these child predators,” said U.S. Attorney Shores. “As a prosecutor, I sought justice for victims of child sexual abuse, human trafficking, and child pornography. I know just how important these cases are, which is why we continue to prioritize them. We must get child predators off our streets and behind bars. I’m thankful for the aggressive prosecution of these cases by Assistant U.S. Attorneys Chris Nassar and Shannon Cozzoni. Moreover, our partnerships with local, state, and federal investigators are crucial to protecting children in northern Oklahoma. There is no more righteous cause than protecting children.”

Levi William Welker, 29, of Tulsa, was sentenced to 17 years in federal prison followed by seven years on supervised release for distribution of child pornography, enticing a minor, and tampering with a witness and evidence. In February 2016, Welker shared child pornography using a bit torrent file sharing network. Investigators initially discovered 68 images on a torrent file which was traced to Welker’s IP address. During a search, investigators located more than 7,000 image and video files of child pornography. Welker also admitted that he later used multiple social media apps and communications devices to manipulate and lure two minor children to engage in sexual activity with him. He pretended to be 16 years old and provided the victims with cell phones in order to secretly communicate. When one of the children’s parents became suspicious, they reported Welker to the Tulsa Police Department. After the investigation commenced, police discovered that Welker messaged one of the victim’s social media accounts, asking her to lie to police and destroy evidence. He also destroyed other digital evidence in an effort to thwart the investigation. The Court remanded Welker into the custody of the U.S. Marshals Service pending transfer to a U.S. Bureau of Prisons facility. The FBI and Tulsa Police Department investigated these crimes.

Kenny Wayne Brown, 52, of Gainesville, Texas, was sentenced to 10 years in federal prison followed by 10 years on supervised release for attempted coercion and enticement of a minor. From Sept. 6 to Sept. 28, 2018, Brown unknowingly initiated contact with an Internet Crimes Against Children task force officer from the Bristow Police Department who was posing as a minor female. Using social media, he engaged the “girl” in explicit sexual conversation and sent pornographic images of himself to the “girl.” He eventually arranged to travel from Texas to Bristow, Oklahoma, in order to engage in sexual activity. During the arrest at the arranged location, Brown attempted to flee from officers nearly striking them with his vehicle until he was eventually stopped and arrested. Investigators discovered that Brown was also charged with online solicitation in May 2018 in Texas. The Bristow Police Department conducted the investigation.

Jeffrey Scott Cooper, 46, of Broken Arrow, was sentenced to 87 months in federal prison followed by five years on supervised release for attempted receipt of child pornography. From Dec. 18 to Dec. 20, 2018, Cooper unknowingly made contact with an officer from the Tulsa Police Department’s Cyber Crimes Task Force posing as a minor female. Using a social media app, Cooper started the conversation with what he believed to be a minor female. He then engaged the “girl” in explicit sexual conversation, eventually arranging to meet in order to engage in sexual activity. On Dec. 20, 2018, investigators arrested Cooper after he arrived in his company car at the arranged meeting location. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.

Sean Clarke McCain, 32, of Tulsa, was sentenced to 87 months in federal prison followed by five years on supervised release for attempted receipt of child pornography. From Dec.18 to Dec. 20, 2018, McCain unknowingly made contact with an officer from Tulsa Police Department’s Cyber Crimes Task Force posing as a minor female using an online messaging app and attempted to receive photographs of the “minor” engaged in sexually explicit conduct. He then engaged the “girl” in explicit sexual conversation, eventually arranging to meet in order to engage in sexual activity. McCain was later arrested at the arranged meeting location. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.

Robert Shawn Thomas Davis, 26, of Owasso, pleaded guilty on June 11, to attempted coercion and enticement of a minor. On March 25, 2019, Davis unknowingly initiated contact with an FBI Task Force Officer who was posing as a minor female. Davis engaged the “minor” in sexually explicit conversation, asking to meet her and to bring other children along to engage in sexual activity. He eventually arranged to meet the “minor.”  At his plea hearing, Davis admitted that from March 25 to April 4, 2019, he used a social media app on his phone to attempt to persuade, induce and coerce and entice a what he believed was a 13-year-old girl to engage in sexual activity with him. The Court set sentencing for Sept. 24, 2019. Davis faces a minimum sentence of 10 years in prison The Tulsa Police Department and FBI conducted the investigation.

Following their federal prison sentences, all convicted sex offenders are required to comply with requirements designed to restrict their access to children and to register as sex offenders.

Assistant U.S. Attorney Christopher J. Nassar prosecuted these crimes.

          A 36-year-old Arlington, Washington, man was sentenced today in U.S. District Court in Tacoma to three years in prison and 15 years of supervised release for sexual abuse of a minor and possession of child pornography, announced U.S. Attorney Brian T. Moran.  JAMES C. OVERTON pleaded guilty in January 2019, admitting he used internet messaging applications to have sexual communications with young girls.  OVERTON met one 13-year-old girl online and, during the years that followed, convinced her to exchange sexually explicit photos.  When she was 15, he took her to Olympic National Park for sexual conduct.  At the sentencing hearing U.S. District Judge Ronald B. Leighton said OVERTON engaged in “a pattern of exploitation… this is a serious offense that affects real people.”

            According to records filed in the case, OVERTON communicated using the internet with a number of young teens and preteens, attempting to have sexualized conversations with them.  Over a period of time, he groomed the 13-year-old for sex and took advantage of her precarious emotional and psychological condition.  In November 2016, OVERTON picked up the then-15-year-old from a location near her home and took her into Olympic National Park where he had her engage in sexual conduct.  The teen’s family ultimately reported the conduct to law enforcement.  When investigators got a court-authorized search warrant for OVERTON’s home and digital devices, they also recovered evidence of more than 100 images of child pornography.  OVERTON had attempted to delete the images, but evidence remained on his devices.

            OVERTON admitted he had communicated online with a number of young teens between the ages of 12 and 15 in addition to the victim of the sexual assault.  Many of those conversations were sexual and involved his trying to obtain sexually explicit videos and images.  OVERTON will be required to register as a sex offender.

            The case was investigated by the National Park Service and Homeland Security Investigations.

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

            The case is being prosecuted by Assistant United States Attorney Matthew Hampton. 

A Cleveland man with a history of violent crimes was sentenced to more than three years in prison for having a firearm.

Miquel D. Jones, 49, was sentenced to 42 months in prison. He previously pleaded guilty to being a felon in possession of firearms.

“This defendant has no right to firearms because his history of violent crime, including convictions for domestic violence and robbery,” U.S. Attorney Justin Herdman said. “Domestic violence offenders pose an outsized threat to Ohio’s families, communities and law enforcement officers.”

“ATF’s mission is reducing violent gun crime in our country,” said Jonathan T. McPherson, Special Agent in Charge of ATF’s Columbus Field Division.  “We are committed to working with our federal, state, and local partners to follow the gun and remove the most violent criminals from our streets.”

Law enforcement officials searched Jones’ residence on Poe Avenue on May 23, 2018, in relation to a missing minor. A search of the residence revealed a Ruger 9 mm handgun, a Maverick 12-gauge shotgun and 16 rounds of 9 mm ammunition, according to court documents.

Jones has previous convictions for robbery, domestic violence, burglary and other crimes, which make it illegal for him to possess firearms or ammunition, according to court documents.

This case was prosecuted by Assistant U.S. Attorneys Brian S. Deckert and Robert J. Patton following an investigation by the ATF, Homeland Security Investigations, Cuyahoga County Regional Human Trafficking Task Force and Cleveland Division of Police.

Earlier today, at the federal courthouse in Brooklyn, John Servider was sentenced by United States District Judge Eric N. Vitaliano to 18 months’ imprisonment and fined $1,000 for obstructing a grand jury investigation in the Eastern District of New York.  Specifically, Servider conspired to alter, and did alter, records responsive to a grand jury subpoena by removing the name of his client, Vincent Vertuccio.  From 1988 until his conviction at trial in May 2018, Servider had been licensed by the State of New York to practice law. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI),  Michael C. Mikulka, Special Agent-in-Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL OIG), and Michael Nestor, Inspector General, Port Authority of New York and New Jersey, Office of Inspector General (PA-OIG), announced the sentence.

“With today’s sentence, Servider pays the price for violating the law and his oath as an attorney by impeding a federal grand jury investigation of his client,” stated United States Attorney Donoghue.  “Crimes like those committed by the defendant undermine the integrity of our criminal justice system.  Attorneys who commit such crimes are on notice that this Office will prosecute them to the fullest extent of the law.”

“It’s unconscionable that a licensed attorney would corruptly assist a client with evidence tampering in order to evade income taxes,” stated IRS-CI Special Agent-in-Charge Larsen.  “When IRS special agents begin their career, they take an oath to uphold the constitution, a similar oath Mr. Servider swore to when he became a practicing attorney.”

“John Servider violated the law and his oath as an officer of the court when he obstructed a grand jury investigation by deliberately providing the grand jury with false documents,” said DOL OIG Special Agent-in-Charge Mikulka.  “Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to hold those who obstruct criminal investigations accountable for their actions.”

“Servider’s conduct was egregious on many ethical and legal levels.  His criminal conduct in altering documents to a federal grand jury subpoena was an effort to obstruct the Government’s investigation, and was also an effort to mislead the federal Grand Jury,” stated PA-OIG Inspector General Nestor.  “These actions are particularly serious given that Servider had been an attorney.  The PA-OIG thanks its law enforcement partners for the cooperative effort exhibited throughout this investigation and prosecution.”

In March 2013, Servider learned that federal law enforcement agencies were investigating Vertuccio for receiving unreported income – including Rolex watches and other expensive jewelry – from Crimson Corporation, a construction company that he controlled as a silent partner.  After a grand jury subpoena was served on a jewelry store, Servider and Vertuccio agreed to alter the store’s receipts and invoices by removing any mention of Vertuccio.  As part of the scheme, Servider also instructed Crimson Corporation principals to destroy other evidence relevant to the grand jury investigation. 

Vertuccio pleaded guilty in April 2017 to filing a false tax return and conspiracy to obstruct justice.  He was sentenced to 24 months’ imprisonment in October 2018.

The government’s case is being handled by the Office’s Organized Crime & Gangs Section.  Assistant United States Attorneys Tanya Hajjar and Jonathan P. Lax are in charge of the prosecution.

The Defendant:

JOHN SERVIDER
Age: 56
Patterson, New York

E.D.N.Y. Docket No. 15-CR-174 (ENV)

Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Dwayne Dollison Jr., 36, and Kenneth Martin Douglas, 34, both of Anchorage, were found guilty yesterday after a 7-day federal jury trial.  The jury found Dollison and Douglas guilty of drug trafficking conspiracy, possession of controlled substances with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and for being felons in possession of a firearm. 

According to evidence presented at trial, the charges all revolve around a conspiracy that ended on Sept. 16, 2017, when Alaska State Troopers stopped both Dollison and Douglas in their vehicle, an SUV, as they approached the Fairbanks area.  Another vehicle, a red sedan with whom they were caravanning, stopped as well.  The occupants of the red sedan explained that they knew Dollison and Douglas, and they provided a rental receipt for the red sedan bearing Douglas’s name.  Both Douglas and Dollison, however, initially denied any connection with the red sedan.

A search of the red sedan later uncovered distribution amounts of methamphetamine, cocaine, and heroin in the vehicle’s trunk.  Some of the controlled substances were in socks in a red duffel bag that contained a firearm and clothing belonging to Dollison.  Baggies of controlled substances were also found loose in the trunk next to a green duffel bag, which contained a firearm and clothing belonging to Douglas.

Both Dollison and Douglas have prior federal felony convictions and were therefore prohibited from possessing firearms.

As a result of their convictions, Dollison and Douglas face a maximum penalty of up to life in federal prison.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.

The Alaska State Troopers (AST), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), the Drug Enforcement Administration (DEA), and the Alaska Department of Public Safety Scientific Crime Detection Laboratory conducted the investigation leading to the successful prosecution of this case.  This case is being prosecuted by Assistant U.S. Attorneys Kimberly Sayers-Fay and Allison O’Leary.

Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Fairbanks man has been sentenced to federal prison for possessing a handgun with a homemade suppressor, after being convicted of a crime of domestic violence.   

Kyle Steven Moody, 33 of Fairbanks, was sentenced today by Sr. District Judge Ralph R. Beistline, to serve 37 months in federal prison, followed by 3 years of supervised release.  In March 2019, Moody pleaded guilty to being a prohibited person in possession of a firearm. 

According to court documents, on Dec. 15, 2017, Moody was convicted in the State of Alaska of a misdemeanor crime of domestic violence, for violently assaulting his girlfriend, K.H.  On Dec. 6, 2018, the Alaska State Troopers received a report that Moody had again assaulted K.H. so badly that her eyes were swollen shut.  At that time, Moody was in violation of his conditions of release, where the court had ordered that he have no contact with K.H., who also had a restraining order against Moody.

Troopers identified Moody near his residence in a car with K.H., and he was arrested.  Troopers then observed a .22 caliber Ruger Mark IV handgun with a suppressor attached to the barrel under the passenger seat where Moody had been sitting.  Moody admitted the firearm belonged to him and that he purchased a kit to make the suppressor.

Moody has a history of domestic violence charges in the State of Alaska involving the same victim, and as someone previously convicted of a misdemeanor crime of domestic violence, Moody was prohibited from possessing a firearm.  

At Moody’s sentencing hearing, Judge Beistline noted that Moody’s relationship with K.H. was “very deadly” and that “people in a domestic relationship should be protecting each other, not abusing each other.”  He also noted that Moody showed “no respect whatsoever for the law” when he repeatedly violated court orders not to contact K.H.  As a condition of his sentence and supervised release, Judge Beistline ordered Moody to undergo batterer intervention training and prohibited him from contacting K.H. 

The Alaska State Troopers (AST) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case.  This case was prosecuted by Assistant U.S. Attorney Ryan D. Tansey. 

Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Quavis Jamar Rudisell, age 30, of Lancaster, was sentenced to a total of 41 months imprisonment today in federal court after earlier pleading to being a felon in possession of a firearm and ammunition.

Evidence presented in court established that on the early morning hours of September 6, 2018, deputies with the Lancaster County Sheriff’s Department responded to a residence on Providence Road after receiving a 911 call in regard to a theft of money. The residence advised that Rudisell had been a guest in the home, stolen approximately $1,300, and fled on a silver moped. Officers with the Lancaster Police Department located Rudisell on the moped and attempted to conduct a traffic stop. Rudisell jumped off the moped and fled into nearby woods where he was later captured. Officers located the stolen money on Rudisell, along with a magazine loaded with rounds of 9mm ammunition. Rudisell admitted to throwing the firearm down. Officers did a search of the area and recovered a 9mm handgun with a large capacity magazine loaded with 19 rounds of ammunition.

Rudisell is prohibited under federal law from possessing firearms and ammunition based upon a prior state conviction for breach of trust with fraudulent intent more than $2,000 but less than $10,000 (2016) and a prior federal conviction for conspiracy to possess with intent to distribute 5 kilograms or more of cocaine and 50 grams or more of crack cocaine (2011). Rudisell had been released from federal prison and was on federal supervised release at the time of the instant offense.

Senior United States District Judge Joseph F. Anderson, Jr. sentenced Rudisell to a total of 41 months imprisonment. That sentence was comprised of 37 months imprisonment on the felon in possession of a firearm and ammunition charge and a consecutive 4 months imprisonment for violating the earlier term of federal supervised release. Following the term of imprisonment, Rudisell will be on supervision for 3 years.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Lancaster County Sheriff’s Office, and the Lancaster Police Department. This case was prosecuted as part of the joint federal, state, and local initiative, Project Safe Neighborhoods, which aggressively prosecutes firearm cases. 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 United States Attorney Stacey D. Haynes of the Columbia office handled the case.

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COLUMBIA, SOUTH CAROLINA– The Justice Department today announced that it supported a World Elder Abuse Awareness Day event inLyman, South Carolina on June 13, 2019.  Assistant U.S. Attorneys David Stephens and Rob Sneed gave a presentation to seniors from the upstate using “Fraud Bingo” as a platform to provide tips on avoiding scams.

The June 13, 2019, “Lifting Up Voices” was hosted by the Appalachian Council of Governments (AGOG) and South Carolina Department on Aging (SCDOA). The Appalachian Council of Governments serves as the Area Agency on Aging (AAA) for the six-county South Carolina upstate region (Anderson, Cherokee, Greenville, Oconee, Pickens and Spartanburg counties).  The AAA provides information and assistance to older adults, persons with disabilities and caregivers. It also operates the Regional Long Term Care Ombudsman Program, the Regional Family Caregivers Program, the I-CARE program, and Appalachian Assisted Rides program. The SCDOA works with a network of regional and local organizations to develop and manage services that help seniors remain independent in their homes and in their communities.

The event was a local effort to raise awareness about elder abuse and neglect in South Carolina communities.  Several vendors, local businesses, and organizations contributed to the highly successful event, which included approximately 200 senior citizens.  In addition to the ACOG speakers, a member of the City of Spartanburg Police Department presented on “Elder Abuse Recognition and Safety,” which included discussion on personal safety, trust, and situational awareness to avoid victimization.

AUSAs Stephens and Sneed delivered practical tips for seniors to take to prevent getting financially exploited and scammed.  They operated a bingo-type game to teach seniors how to recognize and deal with scams. The game is played just like regular Bingo but with an added twist. Each time the Bingo game caller announces the square, participants read aloud the accompanying message found on their bingo card if they have a match. Each square has a message about fraud, ID theft, and scams. When there is a winner the shouts of “Fraud Bingo” ring out.

“The United States Attorney’s Office and Department of Justice (DOJ) are committed to combatting elder abuse, neglect, financial fraud, and scams that target our nation’s seniors,” said United States Attorney Sherri Lydon.   She added that elder fraud schemes take a variety of forms that range from small-scale identity thefts involving impersonation of a senior to mass mailing fraud schemes that steal from thousands of elderly annually.  “Our mission is to combat elder abuse and financial exploitation, encourage reporting abuse, and educate the public to make America safer for all,” added Lydon.

Find out more about the U.S. Attorney’s Office Elder Fraud program at https://www.justice.gov/usao-sc/elder-justice-initiative, or the Department of Justice’s Elder Justice Initiative at https://www.justice.gov/elderjustice.

Appalachian Council of Governments

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NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that KEVIN CRAWFORD (“CRAWFORD”), age 34, of New Orleans, pled guilty yesterday to being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). 

The Court set sentencing in this matter for August 21, 2019.  CRAWFORD faces a maximum term of imprisonment of ten (10) years, a maximum $250,000 fine, three (3) years supervised release following any term of imprisonment, and a $100 special assessment fee.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, 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.

U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the New Orleans Police Department on investigating this matter.  Assistant United States Attorney Duane A. Evans is prosecuting the case. 

Federal District Court Judge Nancy D. Freudenthal sentenced JOSE DIAZ-CASTANEDA, 45, of Mexico on June 4, 2019 for illegal re-entry of a previously deported alien into the United States.  Diaz-Castaneda was arrested in Casper, Wyoming.  He received time served and ordered to pay a $100.00 special assessment, and is subject to deportation.  Diaz-Castaneda previously was deported in 2011. The US Immigration and Customs Enforcement investigated this case.

Federal District Court Judge Alan B. Johnson sentenced HILDA GARCIA-RAMOS, 31, of Mexico on June 4, 2019 for illegal re-entry of a previously deported alien into the United States.  Garcia-Ramos was arrested in Casper, Wyoming.  She received time served and was ordered to pay a $100.00 special assessment, and is subject to deportation.  Garcia-Ramos previously was deported in 2010.  The US Immigration and Customs Enforcement investigated this case.

Federal District Court Judge Alan B. Johnson sentenced SAMMUEL DWAYNE COE, 32, of Casper, Wyoming on June 5, 2019 for transportation of child pornography.  Coe was arrested in Cheyenne, Wyoming.  He received seventy-five months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment.  The US Homeland Security Investigations investigated this case.

Federal District Court Judge Alan B. Johnson sentenced KODY NATHANIEL HESS, 30, of Evansville, Wyoming on June 10, 2019 for carrying a firearm during and in relation to a drug trafficking crime and possession with intent to distribute methamphetamine.  He was arrested in Casper, Wyoming.  Hess received a total of one hundred eighty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $200.00 special assessment.  The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.

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

Chief Federal District Court Judge Scott W. Skavdahl sentenced CHRISTOPHER LEE HARDY, 38, of Casper, Wyoming on June 13, 2019 for two counts of transportation of child pornography.  Hardy was arrested in Casper, Wyoming.  He received ninety months of imprisonment, to be followed by one hundred twenty months of supervised release, and ordered to pay a $200.00 fine and restitution in the amount of $5000.00.  The US Department of Homeland Security Investigations investigated this case.

United States Attorney Erica H. MacDonald today announced the sentencing of PAUL R. HANSMEIER, 37, to 168 months in prison for orchestrating a multi-million dollar fraud scheme to obtain payments from extortion victims to settle sham copyright infringement lawsuits by lying to state and federal courts throughout the country. HANSMEIER, who pleaded guilty on August 17, 2018, was sentenced today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota. HANSMEIER’S co-defendant JOHN L. STEELE also pleaded guilty to his role in the scheme. STEELE is scheduled to be sentenced on July 9, 2019.

United States Attorney Erica MacDonald said, “Paul Hansmeier abandoned his sworn oath to uphold the law and chose instead to use coercion and lies to exploit victims and deceive judges. The sentence he received today is a just consequence for his actions.”

“Today's sentence for Paul Hansmeier is the just result for an attorney who abused his license to practice law and disgraced himself and the bar in so many ways,” said Jill Sanborn, Special Agent in Charge of the FBI's Minneapolis Division. “Hansmeier’s role in this salacious fraud scheme exploited victims by misusing his position of trust as an officer of the court. The FBI is grateful for the victims who came forward in this case because their information was critical to our work.”

“Today justice has been served with the fourteen-year sentencing of Mr. Hansmeier,” stated Tara Sullivan, IRS Criminal Investigation Special Agent in Charge of the Chicago Field Office. “Mr. Hansmeier greatly misused his position as an attorney by preying upon unsuspecting individuals for nothing but pure power and greed. IRS Criminal Investigation is proud to have worked alongside with the U.S. Attorney’s Office and the FBI to dismantle this money laundering enterprise created by Hansmeier and his partner.”

According to his guilty plea and documents filed in court, between 2011 and 2014, HANSMEIER and STEELE, both practicing lawyers, executed a scheme to obtain millions of dollars by threatening copyright lawsuits against individuals who allegedly downloaded pornographic movies from file-sharing websites. HANSMEIER admitted in court during his plea that he and STEELE created a series of sham entities, which he and STEELE surreptitiously controlled, to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies. The defendants then filed bogus copyright infringement lawsuits that concealed both their role in distributing the movies, and their personal stake in the outcome of the litigation. After filing the lawsuits, HANSMEIER and STEELE gained authority from the courts to subpoena internet service providers (“ISPs”) for identification information of the subscriber who controlled the IP address used to download the movie. With that information, the defendants used extortionate tactics such as letters and phone calls to threaten victims with enormous financial penalties and public embarrassment unless they agreed to pay a $3,000 settlement fee.

According to the Indictment, the plea agreement, and other court documents, in November 2011, in order to distance themselves from the specious lawsuits and any potential fallout, HANSMEIER and STEELE created and used Prenda Law, among other law firms, to pursue their fraudulent lawsuits. HANSMEIER acknowledged at his plea hearing that he and STEELE exerted de facto control over Prenda Law throughout the scheme, but recruited a now-deceased Illinois attorney to pretend to own and control the law firm.

In October 2012, the defendants changed their tactics and began filing lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. To facilitate their phony “hacking” lawsuits, HANSMEIER and STEELE recruited individuals who had been caught downloading pornography from a file-sharing website, to act as ruse “defendants.” These ruse defendants agreed to be sued and permit HANSMEIER and STEELE to conduct early discovery against their supposed “co-conspirators” in exchange for HANSMEIER and STEELE waiving their settlement fees. During his plea hearing, HANSMEIER admitted that the allegations of “hacking” in these complaints were made up.

In total, HANSMEIER and STEELE obtained approximately $3 million from the fraudulent copyright lawsuits.

This case is the result of an investigation conducted by the FBI and the Criminal Investigation Division of the IRS.

Assistant U.S. Attorneys Benjamin F. Langner and David J. MacLaughlin of the District of Minnesota, and Senior Trial Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section, prosecuted the case.

Defendant Information:

PAUL R. HANSMEIER, 37

Woodbury, Minn.

Convicted:

• Conspiracy to commit mail fraud and wire fraud, 1 count
• Conspiracy to commit money laundering, 1 count

Sentenced:

• 168 months in prison
• Two years of supervised release
• Restitution in the amount of $1,541,527.37

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

Earlier today, a federal jury in Brooklyn returned a guilty verdict against Shakeem Boykins charging him with being a felon in possession of a firearm and ammunition.  The verdict followed a five-day trial before United States District Judge Edward R. Korman.  When sentenced, Boykins faces up to 10 years’ imprisonment. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.

 “The danger posed by a felon possessing a firearm was brought into sharp focus in this case, where the defendant shot a woman simply for being in a certain part of the Pink Houses against his wishes,” stated United States Attorney Donoghue.  This Office and its law enforcement partners will do everything in our collective power to stop gun violence, including prosecuting those who illegally possess guns to the fullest extent of the law.”  Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation (FBI), New York Field Office, Safe Streets Task Force, which is comprised of FBI special agents and New York City Police Department (NYPD) detectives.

The evidence at trial established that on the afternoon of October 5, 2017, outside the Louis H. Pink Houses on Linden Boulevard in East New York, Boykins approached a woman with whom he and his friends had been in a dispute, and told her to leave the area.  When she refused, Boykins rode away on a bicycle and returned with a handgun.  Boykins then shot the woman twice at close range, striking her in the left leg.  A .40 caliber cartridge casing was recovered at the scene.  Subsequently, the NYPD recovered from his associates the .40 Glock semiautomatic handgun that Boykins had used in the shooting. 

As presented at trial, Boykins was convicted in 2013 of a felony offense in Queens County Supreme Court.  In addition, he was convicted in federal court in 2015 of being a member of a heroin and crack cocaine drug-trafficking conspiracy based in the Pink Houses.

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

 The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys James P. McDonald and Margaret E. Gandy are in charge of the prosecution.

The Defendant:

SHAKEEM BOYKINS
Age:  24
Brooklyn, New York

E.D.N.Y. Docket No. 18-CR-338 (ERK)

The United States Attorney’s Office in Sioux City will hold a press conference Monday, June 17, 2019, at 3:30 p.m. where Branch Chief Timothy Duax and other members of law enforcement will discuss recent efforts to confront gun crimes and violence in Northwest Iowa, including the recent charging of 26 defendants for federal gun-related crimes. The press conference will be held at the United States Attorney’s Office located at 600 Fourth St. Suite 670, Sioux City, IA.

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BOSTON – A Florida man pleaded guilty today in federal court in Boston in connection with the fraudulent abuse of the U.S. Postal Service’s (USPS) Informed Delivery electronic notification system. 

Peter Belony, 34, of Margate, Fla., pleaded guilty to one count of conspiracy to commit wire fraud. U.S. District Court Judge Douglas Woodlock scheduled sentencing for Sept. 19, 2019. Belony and his co-conspirators, Fred Alcius, Lucson Appolon, and Kevens Louis were charged on April 9, 2019. Co-conspirators Appolon and Louis were arrested on April 16, 2019; Belony was arrested on April 26, 2019; and Alcius remains a fugitive.   

Informed Delivery is a free electronic notification service provided by the USPS that gives residential and P.O. Box customers the ability to digitally preview their incoming mail and manage their packages.

According to the indictment, the defendants accessed victims’ personal identifying information, including names, Social Security numbers, dates of birth, and addresses on the “dark web” and then used the information to open credit cards in the victims’ names. The defendants then subscribed to Informed Delivery using the victims’ personal identifying information and a fraudulent email address created to track the delivery of credit cards to the victims’ residential mailboxes. The defendants subsequently intercepted the credit cards at the victims’ mailboxes before the victims could receive them and used those credit cards at ATMs and to purchase gift cards and other items for resale at Apple and Walmart, among other retail establishments. The defendants traveled to states across the East Coast in furtherance of the fraud, including New Hampshire, Maine, and Massachusetts.

The charge of conspiracy to commit wire fraud carries a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $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 Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Valuable assistance was provided by the Federal Bureau of Investigation, Boston Field Office; Homeland Security Investigations in Boston; the Concord, Fort Lauderdale (Fla.), Harvard, Kittery (Maine), Norfolk, Plantation (Fla.), Sherborn, and Weston Police Departments. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrime Unit is prosecuting the case.

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

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

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Rico Freeman, 35, of Niagara Falls, NY, who was convicted of conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine, was sentenced to serve 15 years in prison and 10 years of supervised release by U.S. District Judge Lawrence J. Vilardo.

Assistant U.S. Attorneys Meghan A. Tokash and Joseph M. Tripi, who handled the case, stated that between May 2016 and June 2017, the defendant conspired with others to operate a high-traffic and extremely profitable cocaine and crack cocaine distribution network in Western New York.

Freeman obtained quantities of cocaine and crack cocaine from a local source of supply during the course of this conspiracy. The defendant would then sell the cocaine and crack cocaine directly to customers, or have other co-defendants conduct sales on his behalf.

On May 24, 2017, federal agents executed a search warrant on Freeman's apartment on Main Street in Niagara Falls and seized drug scales and packaging. Residue collected from the scales tested positive for cocaine.

The defendant was arrested along with co-defendants Ramone Westbrook, Corey Bradberry, and Darius Dix, aka Darius Jenkins, who were all previously convicted.

The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray DOnovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett, New York Field Office; the Niagara County Drug Task Force and Sheriff’s Department, under the direction of Sheriff James Voutour; the Lockport Police Department, under the direction of Chief Stephen Preisch; the Niagara Falls Police Department, under the direction of Bryan DalPorto; and the Niagara County District Attorney’s Office, under the direction of Caroline A. Wojtaszek.

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Earlier today, in federal court in Brooklyn, Mohamed Rafik Naji was sentenced to 20 years’ imprisonment by United States District Judge Frederic Block for attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization.  Naji pleaded guilty to the charge in February 2018.  

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.

“With today’s sentence, Naji has been held accountable for trying to enter a foreign war zone and join ISIS’ murderous cause,” stated United States Attorney Donoghue.  “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force will take every step necessary to incapacitate terrorists like Naji and protect the American people.  I commend the Task Force for its outstanding work in this case.”

“Time and again, the United States has brought to justice those who have traveled from here to try and fight for ISIS,” said Assistant Attorney General Demers.  “This is just what Naji did.  Today’s sentence holds him accountable for his crime and I want to thank the agents, analysts, and prosecutors who are responsible for this result.”

 “Extremists like Mr. Naji believe murdering innocent people advances their political agendas,” said FBI Assistant Director-in-Charge Sweeney.  “In the end, Mr. Naji, like many others before him, find the only thing their actions lead to is a different vantage point from which to watch the world pass by – through the steel bars of a federal prison.  Mr. Naji will remember today as sentencing day, nothing more.  Working day in and day out with our partners on the FBI Joint Terrorism Task Force, safeguards have been put in place to secure Times Square and other popular attractions so any would be terrorist will find it extremely difficult to carry out their plans.  Our unified goal is to remain proactive and prevent acts before they occur, and once again I would like to thank all of those who ensure our safety.”

“This case is a reminder that New York City remains the top target for terrorism in the U.S.,” said NYPD Commissioner O’Neill.  “The NYPD and its partners in law enforcement will never relent in the fight against terror. I want to thank the dedicated members of the JTTF who worked on this investigation to keep our City safe and the prosecutors from the Eastern District of New York.”

By late 2014, Naji had become a committed supporter of ISIS as he repeatedly promoted its mission and distributed the terrorist group’s propaganda with violent themes and messages on social media.  In March 2015, Naji traveled from New York City to Yemen in an effort to join ISIS.  Naji also used social media to advise another person he could travel to join ISIS, but unbeknownst to Naji, that individual was a confidential source of information for the government (the “CS”).  In an online conversation with the CS, Naji proclaimed his allegiance to ISIS, stating, “I belong to Islamic state only.” 

Following his return to the United States in September 2015, Naji continued to express support for ISIS and violent jihad.  In July 2016, following an ISIS-inspired terrorist truck attack in Nice, France that killed scores of civilians, Naji told the CS how easy it would be to carry out a similar attack in Times Square: “[ISIS] want an operation in Times Square” and “[an ISIS] reconnaissance group . . . put up scenes of Times Square.”  Naji added: “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them . . . Times Square day.” 

Naji has been incarcerated since his arrest in Brooklyn in November 2016.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Ian C. Richardson is in charge of the prosecution, with assistance from Trial Attorney Jacqueline L. Barkett of the National Security Division’s Counterterrorism Section.

The Defendant:

MOHAMED RAFIK NAJI
Age: 40
Brooklyn, New York

E.D.N.Y. Docket No.  16-CR-653 (FB)

WASHINGTON – The Department of Justice announced today that the United States has filed a complaint in intervention against Smart Pharmacy Inc., and SP2 LLC, two compounding pharmacies located in Jacksonville, Florida. The complaint alleges that the pharmacies improperly included the drug aripiprazole, an atypical antipsychotic drug, in compounded pain creams in order to boost the pharmacies’ reimbursement for the prescriptions and that the pharmacies routinely waived patient copayment obligations. The government has also brought claims against Gregory Balotin, a co-owner of the pharmacies, for his involvement in the alleged schemes. 

Aripiprazole, which is sold under the brand names Abilify, Abilify Maintena, and Aristada, is approved by the U.S. Food and Drug Administration to treat a number of psychological conditions such as schizophrenia, Tourette’s disorder, irritability associated with autistic disorder, and manic and mixed episodes associated with Bipolar I. The complaint alleges that the defendants crushed pills of aripiprazole and included them in compounded creams used topically for pain treatment while knowing that there was not an adequate clinical basis for adding aripiprazole to the compound. The complaint alleges that, by including the drug in the pain creams, the defendants substantially increased their reimbursement for prescriptions for the creams from Medicare Part D and TRICARE, the federal health care program for active duty military personnel, retirees, and their families.

The government’s complaint also alleges that the defendants improperly waived patient copayments. While copayments may be waived in certain unique circumstances, such as on the basis of financial hardship of the patient, the defendants are alleged to have routinely waived patient copayments without regard for whether a waiver was warranted.

“The Department of Justice will hold accountable health care providers that manipulate the system to improperly enrich themselves at the taxpayers’ expense,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Dispensing drugs for unproven uses and improperly waiving patient copayments erodes public trust in the health care system and increases the costs borne by federal health care programs.”

“This complaint addresses alarming misconduct by some of the largest compounding pharmacies in our district,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “We intend to hold providers accountable under the False Claims Act when they put their own economic interests ahead of the medical needs of federal health program beneficiaries.”

“Fraud in government health programs may result in harm to vulnerable populations and needless taxpayer expense,” said Shimon R. Richmond, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “All available resources will be used to aggressively investigate these allegations.”

“I applaud the Department of Justice for its continued efforts to hold compounding pharmacies accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency will continue working closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”

“It is of utmost importance to protect the integrity of DoD programs by rooting out fraud, waste, and abuse that diverts and wastes precious American taxpayer dollars intended for our Warfighters, and their families. Allegations of providers unjustly enriching themselves will be met with a coordinated effort amongst all affected agencies to hold those accountable,” said the Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, Southeast Field Office.

The lawsuits, United States ex rel. Sanchez v. Smart Pharmacy, Inc., et al., No. 14-cv-1453 (M.D. Fla.), and United States ex rel. Kohli v. Smart Pharmacy, Inc., et al., No. 16-cv-387 (M.D. Fla.), were originally filed in the U.S. District Court for the Middle District of Florida by Amy Sanchez and Ashok Kohli, two former employees of Smart Pharmacy. The lawsuits were filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and to receive a share of any recovery. The Act permits the United States to intervene in such lawsuits, as the United States has done in these cases. 

This matter is being handled by the Civil Division’s Commercial Litigation Branch and Assistant United States Attorney Collette Cunningham for the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the Defense Criminal Investigative Service, the Department of Health and Human Services Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, the Department of Labor Office of Inspector General, and the Office of Personnel Management Office of Inspector General.  

The claims asserted against the defendants are allegations only; there has been no determination of liability. 

BOSTON – A former New Jersey securities broker pleaded guilty in federal court in Newark, N.J. today to charges of defrauding his clients by engaging in a multi-year “cherry-picking” scheme.

Michael Bressman, 61, of Montville, N.J., formerly of FCG Advisors and FCG Wealth Management in Chatham, N.J., pleaded guilty to securities fraud and investment advisor fraud. U.S. District Judge Esther Salas of the District of New Jersey scheduled sentencing for November 2019.  On Sept. 11, 2018, Bressman was charged by indictment in the District of Massachusetts, and the case was transferred to the District of New Jersey on Nov. 8, 2018.

Bressman misused his access to an omnibus or “allocation” account to obtain at least $700,000 in illicit trading profits over a six-year period ending in February 2018. Bressman used the allocation account to place trades and cherry-picked profitable trades, which he then transferred to his own account and the account of family members, while placing unprofitable trades in other customers’ accounts. 

The charge of securities fraud provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $5 million. The charge of investment advisor fraud provides for a sentence of no greater than five years in prison, two years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.  Pursuant to the plea agreement, the government recommended a sentenced of 24 to 40 months in prison. 

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The SEC’s Market Abuse Unit in New York provided assistance with the investigation. Assistant U.S. Attorney Eric Rosen of Lelling’s Securities and Financial Fraud Unit and Assistant U.S. Attorney Courtney Howard of the District of New Jersey are prosecuting the case. 

PITTSBURGH – After deliberating for two hours, a federal jury found Samirkumar J. Shah guilty of two counts of health care fraud, United States Attorney Scott W. Brady announced today.

Shah, 56, of Fox Chapel, Pa., was tried before United States District Judge David S. Cercone in Pittsburgh, Pennsylvania.

U.S. Attorney Brady stated, "Health care fraud threatens the safety and integrity of our entire health care system. Doctors and medical professionals like Dr. Shah who issue false diagnoses, order unnecessary testing and fraudulently bill Medicare and Medicaid in effect steal from the most vulnerable in our community. Today’s jury verdict sends a clear message to those who would do the same: if you commit health care fraud, you will be prosecuted to the fullest extent of the law."

"Health care fraud is a serious problem that impacts every American," said FBI Pittsburgh Special Agent in Charge Robert Jones. "It takes critical resources from our health care system and increases health care costs for everyone. Dr. Shah's disregard for safe patient care goes against the medical ethics he was to uphold. The FBI, with its law enforcement partners, will continue to allocate a significant amount of expert resources to investigate these crimes and hold those defrauding the system accountable."

The evidence introduced during the eight-day trial established that between 2008 and 2013, Shah, a practicing cardiologist, submitted fraudulent claims to private insurance companies—Highmark Blue Cross Blue Shield (Highmark), UPMC Health Plan (UPMC), and Gateway Health Plan (Gateway)—as well as government insurance programs—Medicare and Medicaid—for an outpatient treatment known as External Counter Pulsation, or ECP. ECP involves the use of a specialized bed equipped with pressure cuffs, which exert pressure upon patients’ lower extremities as a means to increase blood flow to the heart. The evidence at trial further demonstrated that insurers only reimbursed for ECP treatments of patients who suffered from disabling angina—or chest pain caused by decreased blood flow to the heart—and only when a physician supervised the treatment.

In total, Shah purchased 25 beds and offered ECP to patients at more than 18 locations in Western Pennsylvania, Ohio, New York, and Florida. The evidence also showed that, in order to acquire new patients, Shah advertised ECP as "the Fountain of Youth," claimed that it made patients "younger and smarter," and offered the treatment for a range of ailments other than disabling angina, including obesity, migraines, high blood pressure, low blood pressure, diabetes, and erectile dysfunction. After signing up new patients, including many patients who never experienced chest pain, Shah instructed his employees to indicate that every patient had disabling angina on billing sheets that were used to support false insurance claims. In certain instances, Shah never met patients for whom he billed for ECP treatments.

The evidence also showed that patients were required to undergo certain diagnostic ultrasounds as a precautionary measure prior to starting ECP—in part to rule out blood clots that could cause a stroke or heart attack during the treatment. Nevertheless, witness testimony established that Shah did not review any of the ultrasound imagery before approving new patients to begin ECP.

Likewise, contrary to health insurance requirements, ECP treatments routinely occurred while neither Shah nor any other medical doctor was present at his various locations. On one such occasion, a patient experienced an adverse event during his ECP treatment and had to be transported via ambulance to the hospital.

In addition to billing for ECP treatments that were not medically necessary and were not provided under direct physician supervision, Shah also double-billed insurers by using a so-called "bundled" ECP code, which accounted for and included payment for various incidental procedures, and then separately submitted claims for the same included procedures. The evidence at trial further established that during reviews initiated by various insurers, Shah routinely submitted fabricated patient files and made false statements concerning his practice, his patient population, his record keeping, and his compliance with applicable coverage guidelines.

During the period of Shah’s scheme, the evidence showed that he submitted ECP-related claims for Medicare, Medicaid, UPMC, Highmark, and Gateway beneficiaries, totaling more than $13 million and that he received reimbursement payments in excess of $3.5 million.

Judge Cercone set sentencing for November 6, 2019, at 11 a.m. The law provides for a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt prosecuted this case on behalf of the government, with the assistance of Assistant United States Attorney Philip O’Connor.

The Federal Bureau of Investigation and Pennsylvania Office of Attorney General, Medicaid Fraud Control Unit, conducted the investigation that led to the conviction of Shah.

           WASHINGTON – Lonnell Tucker, 42, of Temple Hills, Md., was sentenced today to five years in prison stemming from his role in a large-scale narcotics conspiracy, announced U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

           Tucker, Anthony Fields, 45, of Washington, D.C., and Abdul Samuels, 45, of Washington, D.C., were found guilty on March 21, 2019, following a trial in the U.S. District Court for the District of Columbia before the Honorable Amit P. Mehta. Tucker was convicted of conspiracy to distribute and possess with intent to distribute heroin from on or about June 1, 2017 through February 1, 2018. Judge Mehta sentenced Tucker to a prison term of five years. Following his prison term, Tucker will be placed on 36 months of supervised release.

           In June 2017, ATF began investigating the trafficking of narcotics from the Next Level Cuts barbershop located in the 2400 block of MLK, Jr., Avenue, SE and adjoining property above. Law enforcement discovered a coordinated drug trafficking operation that was centered at the barbershop and extended into Maryland through surveillance, controlled purchases from inside and outside the barbershop, residential search warrants, cellphone searches, arrests, jailhouse calls, pleas, and cooperating witnesses. The investigation established that drug traffickers used the barbershop and adjoining property as a stash location.

           The investigation led to a series of arrests beginning in February 2018. These arrests led to the recovery of three firearms from the barbershop, one firearm in a residence, the seizure of more than $7,000 in cash, and without packaging, the seizure of more than 300 grams of PCP, more than 150 grams of heroin, more than 100 grams of fentanyl, boxes of suboxone strips, and more than 100 grams of a cutting agents.

           During the trial, officers and agents of the Prince George’s County Police Department, Metropolitan Washington Airports Authority, and the Maryland Office of the State Prosecutor, testified regarding separate arrests of coconspirators during the course of ATF’s investigation, which resulted in the seizure of narcotics, drug paraphernalia, and U.S. currency.

           Tucker was previously prosecuted in the D.C. Superior Court and convicted of drug trafficking felony offenses on three separate occasions. In 2010, he was convicted of two counts of distributing PCP. In 1999 and 2000, he was convicted of possessing crack cocaine with an intent to distribute.

           On June 13, 2019, Fields was sentenced to 16 years of incarceration to be followed by eight years of supervised release. Samuels has not yet been sentenced for his role in the drug trafficking conspiracy. Three other defendants – Darryl Smith, 41, of Washington, D.C., James Venable, 47, of Fort Washington, Md., and Lacy Hamilton, 42, of Suitland, Md. – pled guilty earlier to federal charges. Another defendant remains at large as a fugitive. Smith managed the barbershop and was sentenced to 80 months in prison relating to his possession of narcotics in the barbershop on February 1, 2018, and for his possession of packaged fentanyl and a loaded firearm following an arrest by MPD in December 2017 outside of the barbershop. Venable, another conspirator, was sentenced to a 37-month prison term following his possession of narcotics and a firearm in both Washington, D.C. during a December 2017 arrest by MPD and at his residence in Maryland on February 1, 2018. Venable also acknowledged selling narcotics to an ATF confidential informant in July 2017. Hamilton was sentenced to a 15-month prison term for selling narcotics outside the barbershop and in Maryland as part of the charged narcotics conspiracy.

           In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Benedict, and Chief Newsham commended the assistance provided by officers and agents of the Prince George’s County Police Department, Metropolitan Washington Airports Authority, and the Maryland Office of the State Prosecutor. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Christopher Macchiaroli and Gregory Rosen of the Violent Crime and Narcotics Trafficking Section, and Paralegal Specialist Candace Battle.