PITTSBURGH - A resident of Carnegie, Pennsylvania pleaded guilty in federal court to a charge of possession with the intent to distribute a kilogram or more of heroin, United States Attorney Scott W. Brady announced today.

William Thompson, 36, pleaded guilty to one count before Senior United States District Judge Joy Flowers Conti.

In connection with the guilty plea, the court was advised that on August 7, 2015, law enforcement attempted to stop Thompson, who was then operating a Porsche Cheyenne without a license. Thompson led the police on a high-speed chase on Route 28 during which speeds reached in excess of 100 miles per hour. Thompson eventually crashed and fled on foot, but law enforcement eventually captured him. A search of his vehicle revealed that Thompson was in possession of what later laboratory analysis determined was more than one kilogram of heroin.

Judge Conti scheduled sentencing for Nov. 5, 2019 at 3:30 p.m. The law provides for a maximum total sentence of life in prison, a fine of $10.00.000, or both, and a mandatory minimum of ten years of imprisonment. 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 Attorney Brendan T. Conway is prosecuting this case on behalf of the government.

The FBI Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Department, Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Thompson.

An owner of an engineering firm, Fazullah Khan, 58, of Troy, was convicted today by a jury on all four counts of bribery with which he was charged, United States Attorney Matthew Schneider announced. 

Schneider was joined in the announcement by Timothy R. Slater, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

The five day trial was conducted before United States District Judge Robert H. Cleland in Port Huron, Michigan.  The jury deliberated approximately an hour and a half before returning their guilty verdicts.

According to evidence presented at trial, in 2014, Khan bribed one public official of Washington Township with $10,000 in cash in return for a million dollar per year engineering contract, and another public official there with a secret financial interest in a property development deal worth hundreds of thousands of dollars for his assistance with the contract and efforts to get water and sewer lines to Khan’s property.  Unbeknownst to Khan, both township officials that he was trying to bribe were working with the FBI.

“Our office is continuing our battle against bribery and corruption every day, and the jury’s guilty verdict shows the people of Michigan won’t stand for this corruption, either,” United States Attorney Matthew Schneider stated.

This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan.  The investigation of this case was conducted by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorneys R. Michael Bullotta and Steven Cares.

The conviction of Khan brings to 22 the number of individuals convicted in this corruption investigation.

Each of the four bribery charges carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000 Khan is scheduled to be sentenced by Judge Cleland on November 28, 2019

John H. Durham, United States Attorney for the District of Connecticut, today announced that TYMON PETERSON, 29, of Stratford, was sentenced yesterday by U.S. District Judge Janet C. Hall in New Haven to two months of imprisonment, followed by three years of supervised release, for his role in an illegal firearm purchase at a Newington gun store.  Judge Hall also ordered Peterson to serve the first four months of his supervised release in home confinement, and to pay an $1,800 fine.

According to court documents and statements made in court, in August and September 2017, Jamal Weir and Tymon Peterson texted one another about purchasing firearms.  Peterson possessed a valid pistol permit and was able to purchase firearms legally, but Weir, as a convicted felon, is prohibited from possessing firearms.  On September 22, 2017, Weir and Peterson travelled together to Hoffman’s Gun Center in Newington.  At the store, Weir provided Peterson with cash to purchase at least one firearm on his behalf.  On that date, Peterson filled out an ATF Form 4473 in which he falsely represented that he was the actual purchaser of a SCCY Model CPX-2, 9mm semi-automatic pistol, and that he was not acquiring the firearm for another person.  Peterson gave the pistol to Weir after they exited the store.

Weir’s criminal history includes state convictions for illegal possession of a weapon in a motor vehicle, possession of narcotics with intent to sell, and carrying a pistol without a permit.

Peterson was arrested on a federal criminal complaint on January 1, 2018.  On December 14, 2018, he pleaded guilty to one count of making a false statement during the purchase of a firearm.

On December 6, 2018, Weir pleaded guilty to one count of possession of a firearm by a convicted felon.  On May 29, 2019, Judge Hall sentenced him to 21 months of imprisonment.

This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the Connecticut State Police, the Newington Police Department and Hoffman’s Gun Center.  The case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Margaret E. Maigret.

This prosecution 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 neighborhoods safer for everyone.

BOSTON - An Illinois man was indicted yesterday in federal court in Boston in connection with a bank robbery.

Eugene Davis, 54, of Chicago, Ill., was indicted on one count of bank robbery.

It is alleged that on June 3, 2019, Davis robbed a branch of the East Boston Savings Bank located in South Boston.

The charge provides for a sentence of no greater than 20 years in prison, up to five years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Chief William Gross made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.

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

Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that ROBERT ACOSTA and JOSE DIAZ were sentenced in Manhattan federal court today.  Both men were sentenced to life in prison for their roles in the December 22, 1997, murders for hire of Alex Ventura, 25, and Aneudis Almonte, 20, in the Bronx, New York.  The defendants were convicted following a three-week trial before U.S. District Judge P. Kevin Castel, who imposed today’s sentences.

U.S. Attorney Geoffrey S. Berman said:  “As the jury found, Acosta and Diaz committed two brutal murders in the Bronx more than 20 years ago.  As a result of the skill and determination of our law enforcement partners, the defendants will now spend the rest of their lives behind bars for their horrible crimes.”

According to the evidence presented during the trial:

In the 1990’s, ROBERT ACOSTA was the leader of a large-scale drug trafficking organization that distributed hundreds of kilograms of cocaine out of several buildings in northern Manhattan.  In the summer of 1997, the murder victims stole drug money from ACOSTA.  To retaliate, ACOSTA hired JOSE DIAZ to kill both men. 

On December 22, 1997, DIAZ and a co-conspirator (“CC-1”) lured the victims to an apartment building in the Bronx, ambushed them in a stairwell, and murdered them both.  CC-1 stabbed Almonte six times, including once in the chest.  DIAZ shot Ventura in the head from point-blank range.  In exchange for these murders, ACOSTA paid DIAZ approximately $12,000.

*                      *                      *

Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the New York Police Department, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Laurie A. Korenbaum, Michael K. Krouse, and Nicholas W. Chiuchiolo are in charge of the prosecution.

BOSTON – A Methuen man was arrested and charged in federal court in Boston for distributing fentanyl.

Alexsander Padro, 28, was charged with distributing more than 40 grams of fentanyl. Padro appeared in federal court in Boston yesterday and was detained pending a further hearing.

According to the charging documents, Padro sold more than 40 grams of fentanyl to a cooperating source at a restaurant in Methuen on July 10, 2019. It is also alleged that Padro sold more than 40 grams of fentanyl to an undercover officer in March 2019 and $1,000 worth of fentanyl to an undercover officer in April 2019.

Padro faces a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.

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

KANSAS CITY, Mo. – A Milan, Missouri, man was sentenced in federal court today for transporting a 12-year-old victim across state lines for criminal sexual activity.

Eh Tah Ger, 24, was sentenced by U.S. District Judge Brian C. Wimes to 14 years and two months in federal prison without parole.

On Jan. 23, 2019, Ger pleaded guilty to transporting a minor across state lines with the intent to engage in criminal sexual activity. Ger admitted that he picked up a 12-year-old girl in Omaha, Nebraska, on Jan. 7, 2018. Ger lived with the child victim in his vehicle and at a residence in Milan until Jan. 20, 2018, when he was arrested. During that time, Ger admitted, he engaged in sexual intercourse with the child victim multiple times.

According to court documents, the child victim’s parents in Omaha reported her missing on Jan. 9, 2018. The parents told police their daughter had left their home the previous morning and had not yet returned. The mother also said her daughter had gone missing twice over the last month, and in both instances had been found with Ger. Ten days later the child victim was recovered after law enforcement agencies in Nebraska and Missouri pinpointed her location at an address in Milan.

Ger told officers that the child victim had been his “girlfriend” for five or six months, but that age was not an issue in his country. (Ger is a refugee whose family fled from Myanmar when he was 11 years old and arrived in the United States in 2011. According to court documents, Myanmar appears to criminally penalize sexual intercourse with a female under 14 years of age.) Ger said he would not allow her to leave the residence without him, or talk to the other adult males there because it made him jealous. Ger would feed her, and she would not eat unless fed by him. Ger’s cell phone contained video recordings of sexual acts between them, which were filmed the day before his arrest.

This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI, the Missouri State Highway Patrol, the Sullivan County, Mo., Sheriff’s Department, and the Omaha, Neb., Police Department.

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

LITTLE ROCK – A Memphis area man has pleaded guilty to paying kickbacks to generate sales of high-dollar compounded prescription drugs. Bradley Fly, 34, of Germantown, Tennessee, pleaded guilty on Wednesday before Chief United States District Judge Brian S. Miller. Cody Hiland, United States Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, and C.J. Porter, Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) announced the guilty plea.

Fly, a veteran of the medical sales industry based in Memphis, promoted high-dollar compounded prescription drugs on behalf of Brad Duke, who previously pled guilty to conspiring to violate the Anti-Kickback Statute last fall. Fly earned 35% of what insurers paid as commission. When Fly learned that TRICARE, the military health insurer, would pay tens of thousands of dollars per month per patient for compounded drugs, Fly concentrated his efforts on generating prescriptions for those beneficiaries covered by TRICARE.

Fly used subordinates to find TRICARE beneficiaries to receive the drugs. Among his subordinates were Individual 1 and Individual 2, who were both already TRICARE beneficiaries, as were their spouses. In violation of the Anti-Kickback Statute, Fly paid both Individual 1 and Individual 2 in exchange for agreeing to receive prescription compounded drugs for themselves and their spouses. TRICARE paid upwards of $500,000 for these prescriptions, earning Fly over $185,000 in commission.

If you or someone you know was approached about getting compounded prescription drugs, please contact usaare.TRICAREtips@usdoj.gov.

Violating the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), is punishable by up to five years imprisonment, a fine of not more than $250,000, and up to three years of supervised release. This case was investigated by the FBI and HHS-OIG, and prosecuted by Assistant United States Attorneys Alexander D. Morgan and Patrick C. Harris.

# # #

This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
http://www.justice.gov/edar

Twitter:
@EDARNEWS

BISMARCK– United States Attorney Drew H. Wrigley announced that on July 11, 2019, Chief United States District Judge Daniel L. Hovland sentenced Lonnie Alonzo Howard, age 48, of Bismarck, North Dakota, on charges of Possession of Firearm and Ammunition by a convicted felon, and Escape.  Judge Hovland sentenced Howard to serve 17 1/2 years imprisonment, followed by three years of supervised release. On April 11, 2019, a federal jury found Howard guilty on both counts. 

The case arose from an investigation in Mandan, North Dakota, that led the police to execute a search warrant in 2015 at a residence in Bismarck, where Howard was staying.  In Howard’s bedroom, police found a 9mm handgun and loaded magazine in a toy basket. They also located two rounds of 9mm ammunition in a drawer in the bedroom, and 150 rounds of 9mm and 20-gauge ammunition in a backpack in the bedroom. 

While Howard was awaiting trial, he absconded from a halfway house placement.  He was a fugitive for approximately 11 months and on April 14, 2018, was stopped on I-94 near the Bismarck State Street exit.  Howard struggled with the officer and damaged a Good Samaritan’s vehicle as he fled the scene.  He escaped, but was apprehended in Bismarck 9 days later.  For that incident, Howard was convicted in Burleigh County District Court of reckless endangerment, simple assault on a peace officer, and false information to law enforcement.

“The 17 years this defendant will spend in federal prison creates one of our favorite statistics in law enforcement: the crimes that will not occur up ahead as a result of the defendant being removed from the streets.  Armed robbery, serious drug trafficking, unlawful possession of firearms by a felon, escape and resisting officers attempting to apprehend him, serious criminal history and conduct by Mr. Howard,” said United States Attorney Drew H. Wrigley.  “He earned his lengthy federal prison sentence, and the interests of public safety and justice have been upheld in this case.”

Judge Hovland designated Howard an Armed Career Criminal under Federal law, due to prior felony convictions for armed robbery in Wisconsin and two serious drug offenses in Burleigh County, North Dakota.          

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; North Dakota Parole and Probation; Mandan Police Department; Bismarck Police Department; Metro Area Narcotics Task Force; and Burleigh County Sheriff’s Department

This Case was prosecuted by Assistant U.S. Attorney’s David D. Hagler and Jonathan J. O’Konek

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KANSAS CITY, Mo. – A Killeen, Texas, woman who formerly operated a tax preparation service in Independence, Missouri, was sentenced in federal court today for her role in a conspiracy that prepared more than 1,000 false tax returns that resulted in nearly $700,000 in fraudulent refunds.

Monique Hernandez, 52, was sentenced by U.S. Chief District Judge Beth Phillips to four years and six months in federal prison without parole. The court also ordered Hernandez to pay $129,748 in restitution.

Hernandez owned a tax preparation service, Complete Tax Service located in Independence, from 2013 to 2016. Hernandez and her daughter, co-defendant Robyne Warburton, 33, of Los Angeles, California, operated the business. Hernandez continued to prepare tax returns for the business when she moved to Texas in 2015.

On Feb. 21, 2019, Hernandez and Warburton each pleaded guilty to participating in a conspiracy to aid and assist in the filing of false tax returns. A sentencing hearing for Warburton will be on Aug. 30, 2019.

Hernandez and Warburton combined to cause a financial loss to the government of $692,000, conservatively estimated, from the 1,014 false tax returns associated with Complete Tax Service. However, interviews with tax clients specific to Hernandez alone confirmed a $129,748 loss.

Hernandez and Warburton filed false claims for inflated or false deductions or employee business expenses for their clients (such as commuter mileage, personal vehicle expenses, meals eaten during work, and charitable deductions). Hernandez and Warburton also encouraged clients to claim false “gross receipts or sales” on “Profit or Loss from Business” forms, in order to maximize the earned income tax credit. They also encouraged clients to claim non-eligible children as dependents.

After an undercover IRS agent confirmed the fraudulent nature of the tax preparation business, federal agents executed a search warrant at the office of Complete Tax Service on April 7, 2014. After the IRS executed a search warrant at their business, Hernandez and Warburton kept committing tax crimes for almost two more years, until January 2016, when the IRS revoked their tax preparation number.

This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.

ALBUQUERQUE – Tavor Tom, 18, of Shiprock, N.M. appeared in federal court today on a criminal complaint charging him with murder in Indian Country. 

According to the criminal complaint, Tom allegedly committed this offense on July 1, 2019.  He went to the victim’s home and stabbed her repeatedly with a knife.   The victim died at the scene.  Tom stole the victim’s automobile and fled the residence.  Police later found him after he crashed the vehicle. 

The FBI arrested Tom on July 5, 2019.  He appeared in court today for a detention hearing where the judge ordered him to remain in custody pending trial.  He faces up to life in prison if convicted.  A criminal complaint is only an allegation.  A Defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI investigated this case with the Navajo Nation Criminal Investigation Section and the McKinley County Sheriff’s Office.  Assistant U.S. Attorney Joseph M. Spindle is prosecuting the case. 

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that former U.S. Congressman Chaka Fattah, Sr., 62, of Philadelphia, PA was resentenced to 10 years of incarceration by United States District Judge Harvey Bartle, III. 

After a month-long trial in 2016, a federal jury found defendant Fattah and various co-defendants guilty of racketeering conspiracy, wire fraud conspiracy, honest services wire fraud conspiracy, mail fraud conspiracy, and multiple counts of mail fraud, falsification of records, mortgage fraud, and false statements to a financial institution.  The criminal conduct of Fattah and his racketeering enterprise was organized around five corruption and fraud schemes:  a loan repayment scheme, a Blue Guardians scheme, a college tuition scheme, a mortgage fraud scheme, and a fake conference scheme.  For his role in these schemes, Fattah was sentenced after trial to 10 years of incarceration.

Both parties appealed.  With regard to Fattah’s appeal, the Court of Appeals remanded for a new trial as to certain bribery and money laundering counts, concluding that the jury had not been properly instructed regarding “official acts” in a bribery context.  (The government thereafter announced its intention not to retry those counts.)  With regard to the government’s cross-appeal, the Court of Appeals reinstated certain counts that had been dismissed by the District Court post-trial.   The case was then remanded for resentencing.  Today, for these additional counts, Fattah was again sentenced to 10 years of incarceration.

“Let today serve as a warning to all public officials who allow greed or a thirst for influence to overpower any desire to serve the community honestly,” said First Assistant U.S. Attorney Williams.  “If you are a corrupt official, we will investigate and convict you, and we will remain steadfast behind our prosecution until the last appeal is wrapped up and the final proceeding complete.  Today’s sentencing illustrates the strength of our original case and the need to put Chaka Fattah behind bars for a very long time.”

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the Department of Justice Office of Inspector General, the NASA Office of Inspector General, the Department of Education Office of Inspector General, the Department of Commerce Office of Inspector General, and is being prosecuted by Assistant United States Attorneys Eric L. Gibson and Paul L. Gray.  Jonathan Kravis, former Trial Attorney with the Criminal Division’s Public Integrity Section of the U.S. Department of Justice, also prosecuted this matter.

ALBUQUERQUE – Two men from McKinley County, N.M., have pleaded guilty in federal court in Albuquerque to a charge of kidnapping in Indian Country

            A grand jury returned an indictment against Preston John, 24, of Gallup, N.M., and Brandon Largo, 27, of Crownpoint, N.M, on February 13, 2019.  The indictment charged them with participating in a kidnapping on the Navajo Nation on September 3, 2018. 

            According to their plea agreements, these two defendants and a co-defendant, Adrianne Cellicion, were traveling as passengers in an automobile driven by the victim.  They ordered the victim to an area behind a building where Largo put a chain around the victim’s neck and choked the victim.  Cellicion taped the victim’s hands together.  They blindfolded the victim and restrained the victim’s hands and legs.  John held the victim’s neck and took the victim’s cell phone.  They also tied the victim to a tree with John’s belt before fleeing the scene.     

            John pleaded guilty on July 5, 2019, and Largo pleaded guilty on July 9, 2019.  They are both in custody and face up to life in prison.   A jury previously convicted Cellicion of kidnapping and carjacking on June 5, 2019.

            The Gallup, N.M., office of the FBI, the Gallup Police Department, and the Navajo Nation Department of Public Safety investigated this case.  Assistant U.S. Attorneys Michael D. Murphy and Frederick Mendenhall are prosecuting the case.

RICHMOND, Va. – A Richmond man was sentenced today to seven years in prison for his possession of a firearm as a convicted felon and while under a term of federal supervised release during a traffic stop in Henrico County. 

According to court documents, Jabali Dickerson, 27, was in a vehicle with two other people that was stopped by Henrico County police officers in December 2018. Upon speaking with the driver, the officer smelled marijuana emanating from the vehicle and noticed at the feet of Dickerson, in the back seat, a backpack. A search of the vehicle revealed a loaded Glock, model 30, .45 caliber, semi-automatic pistol, in the backpack and a check stub with Dickerson’s name. A search of Dickerson’s pants pocket revealed the check linked to the check stub found in the backpack. It was later confirmed that Dickerson was a convicted felon and on a term of federal supervised release at the time of his arrest.   

This case is part of Project Safe Neighborhoods (PSN), which 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.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Humberto I. Cardounel, Jr., Chief of Henrico County Police Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-43.

John H. Durham, United States Attorney for the District of Connecticut, announced that NIKKITA CHESNEY, 46, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to seven months of imprisonment, followed by three years of supervised release, for her role in a Medicaid fraud scheme.

According to court documents and statements made in court, in May 2012, Chesney was employed by a health care provider that provided substance abuse treatment, including a detoxification program located in Bridgeport, when she was approached by Toshirea Jackson.    Jackson and Juliet Jacob operated two businesses, Transitional Development And Training (TDAT) and It Takes A Promise (ITAP), both located at 360 Fairfield Avenue in Bridgeport, which provided social and psychotherapy services.  At Jackson’s suggestion, Chesney began to steal the personal identification information of Medicaid clients who were patients of her employer.  The personal identifying information included the patients’ Medicaid identification number, Social Security Numbers and dates of birth.  Chesney, Jackson and Jacob then used the stolen identity information to bill Medicaid for psychotherapy services purportedly provided by TDAT and ITAP, when the Medicaid clients had never received any such services from TDAT and ITAP.

Chesney has admitted that she stole the identity information of more than 150 Medicaid clients, and that she and her co-conspirators successfully billed Medicaid for approximately half of those clients.  Chesney further admitted that she and her co-conspirators also billed Medicaid for services to other clients that were never provided to those clients.

Judge Bolden ordered Chesney to pay restitution of $1,369,654.57.

On October 23, 2018, Chesney pleaded guilty to one count of health care fraud and one count of aggravated identity theft.

Chesney, who is released on a $25,000 bond, is required to report to prison on September 20, 2019.

Jackson and Jacob each pleaded guilty to one count of health care fraud for their roles in this scheme and a separate Medicaid fraud scheme.  On May 30, 2019, Jackson, who was an employee of the Connecticut Department of Mental Health and Addiction Services, was sentenced to 24 months of imprisonment and ordered to pay restitution of $2,496,618.  Jacob awaits sentencing.

Five other individuals have been charged and convicted of health care fraud offenses as a result of this and related investigations.

Chesney also has pending state charges stemming from a fraud scheme she engaged in while employed by a state contractor that provided services to individuals who were transitioning to the community following completion of substance abuse treatment.  In 2017, Chesney and others submitted fraudulent claims for childcare services to a state program.  Chesney’s role in the scheme involved 20 fraudulent claims that resulted in a loss of more than $35,000 to the state program.

This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.

This case has been investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Federal Bureau of Investigation, with assistance from the Connecticut Attorney General’s Office.  U.S. Attorney Durham thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.

The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group.  The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI.  The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.

           WASHINGTON – Artinis Winston, 43, of Northeast, D.C. pled guilty yesterday to 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).

           Winston pled guilty before the Honorable Amit P. Mehta in the U.S. District Court for the District of Columbia to one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin on July 11, 2019. Winston faces a mandatory minimum sentence of five years of incarceration and a maximum period of incarceration of forty years. Winston will also be placed on four years of supervised release after completing his sentence. As part of his guilty plea to engaging in the conspiracy, Winston accepted responsibility for trafficking 360 grams of heroin and 40 grams of buprenorphine (commonly referred to as suboxone). Winston’s conviction in the case represents his fourth felony conviction. Judge Mehta scheduled Winston’s sentencing for September 25, 2019.

           According to the Government’s evidence, 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.

           While multiple conspirators had been arrested in 2018, Winston was a fugitive for approximately nine months. Coconspirators Lonnell Tucker, 42, of Temple Hills, Md., 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.

           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.

           On June 13, 2019, Fields was sentenced to 16 years of incarceration to be followed by eight years of supervised release. On June 14, 2019, Tucker was sentenced to five years of incarceration to be followed by three 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. 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 plea, 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, the Maryland Office of the State Prosecutor, and the United States Marshal Service who assisted in trying to apprehend Winston. 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.

The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 11 was:

Adam Clark Young, 35, of Billings, on charges of prohibited person in possession of firearms and possession of a stolen firearm. If convicted of the most serious crime, Young faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Young was detained. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-58.

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

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ALBUQUERQUE – Sharon A. Moore, 64, and Susan K. Harris, 72, of Albuquerque, N.M. pleaded guilty in federal court this week to conspiracy and other financial crimes committed in connection with the operation of Ayudando Guardians, Inc., a non-profit corporation based in Albuquerque that previously provided guardianship, conservatorship, and financial management to hundreds of people with special needs. 

Both defendants pleaded guilty to charges previously filed against them in a superseding indictment returned on December 5, 2017.  Moore pleaded guilty on July 9 and Harris pleaded guilty on July 11.  In their plea agreements, Moore and Harris admitted to conspiracy, mail fraud, aggravated identity theft, money laundering, and conspiracy to commit money laundering.  According to their plea agreement, Moore acted as chief financial officer of Ayudando and Susan Harris acted as president.  They engaged in a pattern of sophisticated criminal conduct from November 2006 to July 2017.  This included unlawfully transferring money from client accounts to a comingled account without any client-based justification.  They wrote and endorsed numerous checks, often of more than $10,000, from these comingled accounts to themselves, family members, cash, and other parties where payment would benefit their families.  Moore also tried to conceal her criminal activity in reports to the Veterans Administration for fiduciary clients.  She falsified bank statements and annual reports to disguise the theft of money from client accounts. 

Moore and Harris are currently out of custody pending sentencing.  Each faces a mandatory term of two years imprisonment at sentencing.  Moore could be sentenced up to 20 years in prison under the terms of her plea agreement, while Harris’ plea agreement does not place an upper limit to the length of imprisonment possible at sentencing.  They have also agreed to forfeit assets and funds derived from their offenses and to pay restitution to the victims. 

The superseding indictment also charged Harris’s husband, William S. Harris, 58, and her son, Craig M. Young, 53.  William Harris pleaded guilty on June 25, 2019, to conspiracy to defraud the United States and commit money laundering.  Young is scheduled to go to trial September 23, 2019.  Charges in an indictment are merely allegations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The Albuquerque offices of the FBI and IRS Criminal Investigation conducted the investigation, which resulted in the charges in the indictment, and are leading the continuing investigation.  The Complex Assets Unit and the Albuquerque office of the USMS, the Criminal Investigations Division of the VA Office of Inspector General, and the Dallas Field Division of the SSA Office of Inspector General are assisting in the investigation.  Assistant U.S. Attorneys Jeremy Peña and Brandon L. Fyffe are prosecuting the case.

ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 11 1/2 years in prison for cocaine trafficking and firearms offenses.

“Lozada’s conduct proves the adage that where guns and drugs intersect, violence is the result,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to investigate and prosecute these cases to ensure criminals like Lozada are held accountable.”

According to court documents, Jorge Lozada, 23, is a known associate of the United Blood Nation/Imperial Gangsta Blood gang.  From early 2017 through September 2017, Lozada distributed marijuana and cocaine, often advertising the drugs he had for sale through social media. Lozada used and carried firearms in connection with his drug distribution business, again posting video and photos of himself and his associates carrying firearms to social media. Ultimately, Lozada was arrested in an apartment in Woodbridge in possession of cocaine, a scale, packaging material, cash, cell phones, a Glock 9mm pistol with an extended magazine, and ammunition.

“ATF’s primary mission is to protect America’s neighborhoods from violent crime,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “Consequently, when ATF identifies those gang members who perpetrate violence by trafficking drugs and carrying firearms, make no mistake, we will use all of our resources as demonstrated in this case to bring them to justice and get them off our streets.”

This case is part of Project Safe Neighborhoods (PSN), which 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.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Michael P. Ben’Ary prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-372.

DENVER – Dewayne Scott, age 21, of Colorado Springs, Colorado, pled guilty this week to pharmacy burglary before U.S. District Court Judge Raymond P. Moore, announced U.S. Attorney Jason Dunn and FBI Denver Special Agent in Charge Dean Phillips.  Scott appeared at the change of plea hearing on bond but was remanded at its conclusion.  He is scheduled to be sentenced by Judge Moore on September 26, 2019.

According to the stipulated facts contained in the plea agreement, on August 22, 2017, at approximately 3:08 a.m., Scott and four others burglarized The Medicine Shoppe Pharmacy on North Wahsatch Street in Colorado Springs.  In total, Scott and others stole:  540 Oxycontin pills, 2569 Hydrocodone pills, 69 Percocet pills, 120 Morphine Sulphate pills, 440 Tramadol pills, 618 Hydromorphone pills, 340 Adderal pills, 145 Oxycodone pills, 676 Oxymorphone pills and 1277 Dextroamphetamine pills.  The value of these stolen pills is approximately $18,029.  Scott and others also stole other types of medication.  In total the entire loss to the pharmacy was $27,298.

While conducting an investigation into the theft investigators found surveillance footage showing Scott leaving the pharmacy carrying a white trash can filled with pill bottles.  Scott then tripped over a parking lot divider while fleeing the pharmacy.  Scott picked up many of the pill bottles that fell on the ground and fled the scene. 

On October 18, 2017, law enforcement officers arrested Scott pursuant to a state arrest warrant for the commercial burglary of Two Men and a Truck, also in Colorado Springs, committed on October 9, 2017.  That same day the FBI interviewed Scott.  It was determined that Scott was partly responsible for The Medicine Shoppe Pharmacy burglary.  Agents further determined that Scott did not receive his expected cut from the sale of the stolen pills because he had spilled and lost some of the pills after tripping and falling while fleeing the scene.

Scott was first charged by Criminal Complaint on March 7, 2019.  He was indicted by a federal grand jury, formalizing the charges on March 19, 2019.  He pled guilty on July 10, 2019.

This case was investigated by the FBI with substantial assistance from the Colorado Springs Police Department.  The defendant is being prosecuted by Assistant U.S. Attorney Jason St. Julien.