Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JANELL THOMPSON, the former vice-president, chief financial officer, and co-owner of a consumer products wholesaler based in California, pled guilty today before U.S. District Judge Naomi Reice Buchwald to using her business to distribute massive wholesale quantities of smokeable synthetic cannabinoids throughout the U.S. and to laundering the proceeds of that scheme.

U.S. Attorney Geoffrey S. Berman said:  “Janell Thompson’s position as a company CFO and vice president masked her true identity:  a drug trafficker and money launderer.  Through her wholesale company, Thompson distributed massive quantities of illegal and potentially dangerous synthetic cannabinoids throughout the U.S.  Thompson now faces 40 years in prison for her crimes.”

According to the allegations in the Superseding Information, other documents filed in the case, and statements made in court:

From February 2014 until February 2019, THOMPSON was the vice-president, chief financial officer, and co-owner of JK Wholesale LLC, a consumer products retailer based in Carlsbad, California.  During that time period, THOMPSON used JK Wholesale LLC and its affiliated corporate entities to operate a scheme to distribute large quantities of smokeable synthetic cannabinoids (“SSC”), containing controlled substances and controlled substance analogues, throughout the U.S.  SSC, colloquially referred to as “K2” or “Spice,” can be addictive, but are often marketed as safe, legal alternatives to marijuana.  In fact, SSC are not safe and may affect the brain much more powerfully than marijuana; their actual effects can be unpredictable and, in some cases, more dangerous or even life-threatening.

Some of the SSC distributed by THOMPSON’s scheme were branded with colorful graphics and distinctive names, including “Yolo.”  The branded SSC sometimes were misleadingly marketed as “herbal incense.”  Other of the SSC were distributed in bulk quantities. 

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THOMPSON, 42, of Carlsbad, California, pled guilty to one count of conspiracy to distribute a controlled substance and a controlled substance analogue and one count of conspiracy to commit money laundering.  Each count carries a maximum sentence of 20 years in prison. 

THOMPSON is scheduled to be sentenced by Judge Buchwald on January 27, 2019.

In addition to THOMPSON, four other defendants have been charged in this case:

On January 31, 2019, Jonathan Riendeau, 39, of Port Saint Lucie, Florida, pled guilty pursuant to a cooperation agreement with the Government before Judge Buchwald to six counts: three counts of conspiracy to unlawfully distribute controlled substances and controlled substance analogues; two counts of unlawful importation of controlled substances and controlled substance analogues; and one count of unlawfully distributing a controlled substance.  Each count carries a maximum sentence of 20 years in prison.  Riendeau’s sentencing has not yet been scheduled.

On April 23, 2019, Jade Plante, 40, of Port Saint Lucie, Florida, pled guilty before Judge Buchwald to one count of conspiracy to distribute and possess with intent to distribute a controlled substance analogues.  On August 7, 2019, Plante was sentenced by Judge Buchwald to eight months in prison and two years of supervised release, and ordered to forfeit $100,000.

On February 7, 2019, Daniel Borer, 42, of Adams, Massachusetts, and Josephine McLaughlin, 65, of Stoneham, Massachusetts, were charged in a Superseding Indictment with three counts of conspiring to unlawfully import and distribute controlled substances and controlled substance analogues.  Each count carries a maximum sentence of 20 years in prison.  Trial has not yet been scheduled for Borer and McLaughlin. 

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the outstanding investigative work of the New York City Police Department, the United States Postal Inspection Service, and Homeland Security Investigations.  He also thanked the Drug Enforcement Administration, the Naval Criminal Investigative Service, and the United States Attorney’s Office for the Eastern District of North Carolina for their assistance.  The long-term investigation of this case was partially funded by the New York/New Jersey High Intensity Drug Trafficking Area, a federal grant program that invests in law enforcement partnerships to build safe and healthy communities.

The prosecution is being handled by the Office’s Narcotics Unit.  Assistant United States Attorneys Daniel G. Nessim and Robert B. Sobelman are in charge of the prosecution. 

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

          LOS ANGELES– A former elementary school teacher pleaded guilty today to federal criminal charges for sexually exploiting his 15-year-old former student by producing pornographic images of her.

          Sean David Sigler, 55, of Burbank, pleaded guilty to two felony counts of production of child pornography. Sigler, whom a federal grand jury indicted in May 2018, previously taught fifth-grade students at Bret Harte Elementary School in Burbank and at Gardner Street Elementary School in Hollywood.

          According to a criminal complaint filed in this case, Sigler became involved in the victim’s personal life after the child left Sigler’s classroom. He then used his position as former teacher, mentor, and father figure to gain the trust of the victim and her parent. Sigler then exploited that trust to gain sexual access to the minor victim. Over the course of 15 months, Sigler regularly transported the victim to his home, where he gave her alcohol and pills and then photographed and filmed his sexual activity with her. Sigler began having sex with the minor victim when she was just 15 years old.

          Sigler admitted in his plea agreement that he created multiple sexually explicit videos of the victim, and that he also took sexually explicit photographs of her, beginning when she was 15 years old. Some of child pornography Sigler created included images and videos involving sadomasochistic conduct. Sigler also created child pornography by modifying a pornographic image of the minor victim’s body and digitally superimposing the face of a different underage former student. Sigler’s digital devices contained numerous images and videos of his sexual acts with the victim, as well as more than 5,000 images of child pornography depicting unknown pre-pubescent minors, according to court documents.

          As part of his plea agreement, Sigler agreed to forfeit $271,506 in cash seized by the government, which constitutes the proceeds from the sale of the home where Sigler produced child pornography.

          United States District Judge John A. Kronstadt has scheduled a December 5 sentencing hearing, at which time Sigler will face a statutory maximum sentence of 60 years in federal prison. Each count of production of child pornography also carries a mandatory minimum sentence of 15 years in federal prison.

          This matter was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Burbank Police Department.

          The case is being prosecuted by Assistant United States Attorneys Damaris Diaz of the Violent and Organized Crime Section and Devon Myers of the Cyber and Intellectual Property Crimes Section.

          This case is part of Project Safe Childhood, which is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched by the Justice Department in 2006 and led by the U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.

In a civil settlement agreement with the U.S. Government, an orthopedic surgeon has agreed to pay $471,221.46 to resolve allegations that he knowingly accepted illegal kickback payments in exchange for prescribing pain creams compounded and produced by OK Compounding, LLC, announced U.S. Attorney Trent Shores.

The government alleged that Dr. James L. Womack, 42, a physician in Clinton, Missouri, accepted the kickback payments from June 1, 2013 through June 9, 2015. Womack wrote prescriptions for expensive compounded pain creams that were marketed in bulk, and in so doing, facilitated the sale and distribution of pain creams by OK Compounding. As compensation for his services, OK Compounding paid Womack what was characterized by the parties as medical director fees based upon an hourly rate. However, the prearranged payments that Womack received from OK Compounding were, in actuality, “kickbacks” and in violation of the False Claims Act, 31 U.S.C. §3729 et seq.

“Federal laws help ensure that medical professionals are not improperly influenced by pharmaceutical companies when developing patient plans of treatment. When, in return for illegal kickbacks, doctors write expensive prescriptions to a preselected pharmacy, they have replaced patient-centered care with personal greed,” said U.S. Attorney Trent Shores. “My office will use both civil and criminal measures to ensure that pharmacies, marketers, and prescribers are not enriching themselves at the expense of patients’ health and well-being. Federal investigators and Assistant U.S. Attorney Kristin Harrington were integral in recovering more than $471,000 in this latest settlement.”

Prohibitions against kickbacks are crucial to ensure that financial motives do not undermine the integrity of the medical judgment of physicians and other health care providers.  The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud.

Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800 HHS TIPS (800-447-8477). In the Northern District of Oklahoma, individuals can also contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the Affirmative Civil Enforcement (ACE) Unit. The ACE Unit is responsible for filing civil lawsuits on behalf of the United States, to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws.

This matter is being handled by Assistant U.S. Attorney Kristin Harrington with the ACE unit and is the product of the collaborative investigative efforts of the Defense Criminal Investigative Service, Department of Labor–Office of Inspector General (OIG), IRS–Criminal Investigation, U.S. Postal Service–OIG, FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

SACRAMENTO, Calif. — A federal grand jury returned a 14-count indictment today against Jason Raysean Broadbent, 32, of Sacramento, charging him with assaulting federal officers with a deadly weapon and various firearms and drug trafficking offenses, U.S. Attorney McGregor W. Scott announced.

According to the indictment, on November 19, 2015, Broadbent assaulted Bureau of Alcohol, Tobacco, Firearms, and Explosives agents by firing and brandishing a Glock semi‑automatic pistol while they were performing their official duties in Sacramento County. Broadbent, a convicted felon, allegedly possessed multiple firearms, including two machineguns and a pipe bomb. The indictment further alleges that Broadbent possessed methamphetamine for distribution within 1,000 feet of a private secondary school and on a premises where children were present or resided.

This case is the product of an investigation by ATF, the Sacramento Police Department, the Sacramento County District Attorney’s Office, the Woodland Police Department, the Yolo County Narcotic Enforcement Team, and the Yolo County District Attorney’s Office. Assistant U.S. Attorneys David W. Spencer and Justin L. Lee are prosecuting the case.

If convicted, Broadbent faces a maximum statutory penalty of life in prison and a $20 million fine. Broadbent also faces a mandatory minimum of 10 years in prison on some of the drug trafficking charges. He faces separate mandatory minimum sentences of five to 30 years in prison, consecutive to any other prison term imposed, for possessing firearms in furtherance of drug trafficking crimes. He also faces a mandatory consecutive sentence of 10 years in prison for discharging a firearm during and in relation to a crime of violence and a mandatory consecutive sentence of seven years in prison for brandishing a firearm during and in relation to a crime of violence. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Neighborhoods (PSN), 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.

PITTSBURGH - A resident of the North Side of Pittsburgh, PA, has been sentenced in federal court to three years and ten months (46 months) in prison on conviction of possession with intent to distribute heroin and crack cocaine as well as maintaining a drug involved premises, United States Attorney Scott W. Brady announced today.

Senior United States District Judge Donetta W. Ambrose imposed the sentence on Kawama Hightower, 41.

According to the information presented to the court, on September 11, 2018, FBI investigators conducted a traffic stop of Hightower while he was leaving his residence. During the traffic stop, they recovered crack cocaine and nearly $4,000 in cash from Hightower and his vehicle. Later on that day, investigators executed a search warrant at Hightower’s residence and recovered additional quantities of crack cocaine, nearly 100 bricks of heroin, two loaded firearms, additional ammunition, digital scales, and drug packaging materials.

Prior to imposing the sentence, Judge Ambrose stated that Hightower’s sentence was intended to hold him accountable for his crimes, reflect the seriousness of his crimes, and protect the public.

Assistant United States Attorney Mark V. Gurzo are prosecuted this case on behalf of the government.

The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation of Hightower. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, McKees Rocks Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.

Portland, Maine:  United States Attorney Halsey B. Frank announced that Gary Boshoff, 52, formerly of Topsham, Maine, pleaded guilty today in U.S. District Court to possessing child pornography.

According to court records, in August 2016, agents investigating the sharing of child pornography over the internet downloaded files depicting minors engaged in sexually explicit conduct from a computer using an Internet Protocol address assigned to Boshoff’s residence in Topsham. A search warrant was obtained for the residence, and agents executed the warrant in October 2016. Boshoff admitted to agents that he had used the internet to search for and download child pornography images. A review of a laptop seized under the warrant revealed images depicting minors engaged in sexually explicit conduct.

Boshoff faces up to 10 years in prison and a $250,000 fine. He also faces a term of supervised release following his release from prison of no less than five years and up to life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit, the Naval Criminal Investigative Service and the Topsham Police Department. The 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. Project Safe Childhood marshals federal, state and local resources to better 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.

Memphis, TN – Tanner Penwell, 22, pleaded guilty to using unlawful force on an inmate while Penwell was serving as a correctional officer with the Tennessee Department of Corrections.

"This type of behavior and violation of an inmate’s civil rights will not be tolerated," said Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division. "The Department of Justice will continue to seek out justice on behalf of those who have had their civil rights violated."

"Correctional officers must abide by and adhere to the same laws they take an oath to uphold and enforce. Instead of serving and protecting the public, this officer used physical force to violate the civil rights of an individual and will now be held accountable, vividly illustrating that no one is above the law," said U.S. Attorney D. Michael Dunavant.

"The FBI will vigorously investigate and bring to justice any law enforcement officer who crosses the line and engages in activity that violates the civil rights of those whose safety they are charged with," said Bryan McCloskey, Acting Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "This plea should be a reminder that wearing a badge does not make one above the law."

With his guilty plea, Penwell admitted that, on February 1, 2019, he and several other correctional officers entered the cell of R.T., an inmate in the mental health unit at the Northwest County Correctional Complex in Tiptonville, Tennessee. Penwell and the other officers entered the cell because R.T. was a suicide risk. Inmate R.T. was already bleeding when the officers entered his cell, and R.T. flung blood toward the correctional officers.

Once inside, a correctional officer looked in the direction of the surveillance camera in the cell and said, "violate the camera." Another correctional officer then covered the camera with his hand.

The correctional officer who asked for the camera to be violated then repeatedly punched R.T. Penwell estimated that this officer hit R.T. more than 20 times. When the officer stopped hitting R.T., he looked back at Penwell and said, "get him." Penwell stepped up and punched R.T. multiple times in the head. After Penwell stopped punching R.T., a third correctional officer punched R.T.

Throughout the time he was being punched by the correctional officers, inmate R.T. sat on the bench in the cell and only used his arms to cover his face in an apparent attempt to protect his face from the correctional officers’ punches. At no point did R.T. attempt to fight back. Penwell knew that punching R.T. was unlawful, but he did not step in to stop it. A supervisor and several correctional officers were in a position to watch as the three correctional officers punched inmate R.T., but none of them attempted to stop the officers from hitting R.T. After R.T. was punched by the officers, Penwell observed that R.T. was bleeding much more than when they had first entered the cell.

Once outside of the cell, Penwell spoke with several correctional officers and a supervisor. The supervisor said he needed to see if the camera inside the cell was working. The supervisor and the first correctional officer who punched R.T. decided that all of the officers would falsely claim that R.T. injured himself while he was on suicide watch in the mental health unit.

The next morning, the first correctional officer who punched R.T. told Penwell that instead of falsely claiming that R.T. injured himself, as the supervisor had proposed the day before, they should both falsely blame the third correctional officer who punched R.T. for all of R.T.’s injuries. Over the next few days, the first officer who punched R.T. repeatedly told Penwell to stick to this new cover story.

With today’s guilty plea, Penwell admitted that he violated 18 U.S.C. § 242 when he repeatedly punched and injured inmate R.T. without legal justification. The maximum penalty for this civil rights offense is 10 years imprisonment.

In a related case, former Correctional Officer Nathaniel Griffin entered a guilty plea in federal court on August 15, 2019. Sentencing is scheduled for November 27, 2019, before U.S. District Court Judge J. Daniel Breen.

This case was investigated by the Memphis Division of the FBI with the support of the Tennessee Department of Corrections, and is being prosecuted by Trial Attorney Rebekah J. Bailey of the Justice Department’s Civil Rights Division and Assistant United States Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.

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WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Mark Consiglio, 49, of Elsmere, Delaware was sentenced today in federal court in Delaware for his role in detonating a pipe bomb at a home in Elsmere, Delaware. 

According to court documents and statements made in open court, Consiglio detonated a pipe bomb at his estranged wife’s residence in the early morning hours of March 12, 2018 before fleeing the scene.  The pipe bomb was thrown at the living room window and bounced back after damaging the window. The pipe bomb then exploded in the front yard of the residence.  Two occupants were home at the time of the pipe bomb explosion, one of whom was in the living room.  Shrapnel from the explosion was found inside the living room. 

After conducting a search warrant at Consiglio’s house, four more pipe bombs were recovered as well as a .38 caliber revolver; materials used to make a pipe bomb, including PVC, fuse wire, ball bearings, and gunpowder; a World War II-era flare launcher that had been modified to accept 9mm ammunition; and a book titled “CIA improvised sabotage devices” that was dog-eared to the page on “incendiary devices.”  At the time he set off the pipe bomb, Consiglio was already facing state charges for threatening to kill his wife.  The government’s court filings noted that Consiglio had a history of violence and threats of violence both toward his estranged wife and other members of the community. 

In sentencing Consiglio to 105 months of prison, Judge Andrews noted Consiglio’s history of violence and stated, “During his entire adult life Defendant has threatened and assaulted others.” The statutory maximum sentence for the offense was 10 years of imprisonment.    

U.S. Attorney Weiss commented, “The defendant’s brazen and violent act was intended to harm and terrorize.  Only sheer luck prevented anyone from being injured or killed. We will continue to prosecute violent criminals to the fullest extent of the law in an effort to make our streets and communities safer.  We are thankful to our federal and state partners for their hard work in investigating this case.”

“Elsmere residents deserve to live in safe neighborhoods, and we are committed to identifying, investigating, and incarcerating anyone who threatens the safety of these communities,” said ATF Special Agent in Charge Rob Cekada. “We are proud to see that the thorough work done by our Special Agents and local and state investigative partners has resulted in bringing this violent offender to justice.”

This case was investigated by the ATF Wilmington Field Office in coordination with the Office of the State Fire Marshal and the Elsmere Police Department.  The U.S. Attorney’s Office also thanks the New Castle County Police Department for its assistance.  The case was prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim.

PITTSBURGH, PA - A resident of Butler County, Pennsylvania, pleaded guilty in federal court to Social Security fraud, United States Attorney Scott W. Brady announced today.

Pattie Lou Smith, 56, of Connoquenessing, pleaded guilty to one count before Chief United States District Judge Mark R. Hornak.

In connection with the guilty plea, the court was advised that when applying for and receiving Supplemental Security Income ("SSI") benefits, Smith falsely reported that her husband was not part of her household, and, as a result, during the period December 30, 2013 through February 28, 2017, received $61,331.50 in SSI benefits to which she was not entitled.

Judge Hornak scheduled sentencing for January 9, 2020. The law provides for a total sentence of 5 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. Smith remains on bond pending sentencing.

Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.

The Social Security Administration – Office of Inspector General conducted the investigation that led to the prosecution of Smith.

CHICAGO — The executive director of a suburban autism center has been indicted on federal fraud charges for allegedly billing a private insurer for nonexistent therapeutic services.

LATRICE HARRELL operated The Champion Center for Autism Inc., in Oak Forest.  From November 2015 to May 2018, Harrell submitted fraudulent claims to a private insurer for therapeutic services that were not rendered, according to an indictment returned in U.S. District Court in Chicago.  The claims represented that patients had received treatment by the center’s occupational therapist or behavioral analyst, when, in fact, Harrell knew that no such services were provided, the indictment states.  Harrell used the names and information of the therapist and analyst without their knowledge to create the fictitious claim forms, the charges allege.  As a result of the scheme, Harrell fraudulently obtained at least $1.6 million from Blue Cross Blue Shield of Illinois, the indictment states.

The indictment was returned Aug. 29, 2019.  It charges Harrell, 46, of Olympia Fields, with seven counts of health care fraud, two counts of making false statements in a health care matter, and two counts of aggravated identity theft.

Harrell pleaded not guilty today at her arraignment before U.S. District Judge Virginia M. Kendall.  A status hearing was scheduled for Nov. 18, 2019.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI.  The government is represented by Assistant U.S. Attorney Eric Pruitt.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

Each count of health care fraud is punishable by up to ten years in prison, while each false statement count carries a maximum sentence of five years.  Aggravated identity theft carries a mandatory prison sentence of two years, which must be served consecutively to the sentence for the underlying offense.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

TYLER, Texas – A 59-year-old Longview, Texas, man has been sentenced to federal prison for criminal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno.

                Timmy Lynn Vaughn pleaded guilty on May 2, 2019, to making false statements to a bank and was sentenced to 12 months and one day in federal prison today by U.S. District Judge Jeremy D. Kernodle.  Vaughn was also ordered to pay restitution in the amount of $145,100.

According to information presented in court, in March of 2016, Vaughn applied for a personal loan at a bank located in the Eastern District of Texas using the name of another individual.  The promissory note and documents submitted to the bank in connection with the application contained forged signatures of the borrower.  As a result, the loan was approved and the proceeds remitted by a cashier’s check payable to one of Vaughn’s businesses.  The cashier’s check was deposited the same day into an account controlled by Vaughn. 

                This case was investigated by the Federal Bureau of Investigation’s Tyler Resident Agency and prosecuted by Assistant U.S. Attorney Frank Coan. 

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Memphis, TN – Cartrail Jacobs, 26, has been sentenced to 300 months in federal prison for carjacking and brandishing a firearm in relation to a crime of violence. U.S. Attorney D. Michael Dunavant announced sentence today.

According to information presented in court, in the early morning hours of December 22, 2017, officers responded to a carjacking of a 2015 Black Ford Mustang at 974 N. Parkway. A Memphis woman was driving her Mustang on North Parkway when Jacobs, who was driving a previously carjacked Ford Taurus, intentionally rear-ended her Mustang. When the driver of the Mustang got out to inspect the damage from the wreck, Jacobs approached with a gun and demanded the vehicle. Jacobs drove away in the Mustang and one of the two other occupants of the Taurus drove it away. The victim immediately called police.

Memphis Police Officers responded and observed both the Black Ford Mustang and the Ford Taurus traveling together near the location of the carjacking. When police attempted to pull the vehicles over, a chase ensued involving both the Mustang, the Taurus and multiple Memphis law enforcement units. Jacobs ultimately crashed the Ford Mustang into a wall, ending the pursuit. While taking him into custody, officers discovered a loaded Ruger 9mm pistol in the Ford Mustang. Jacobs admitted to owning the weapon and possessing it during the carjacking. Because of his prior criminal record, Jacobs was sentenced as a career offender.

On September 5, 2019, U.S. District Court Judge Mark S. Norris sentenced Jacobs to 300 months in federal prison followed by 3 years supervised release.

U.S. Attorney D. Michael Dunavant said, "Under our Carjacking Initiative, the U.S. Attorney’s Office is continuing to coordinate with our federal and local law enforcement partners to prioritize and target carjacking cases for aggressive federal prosecution. This 25-year sentence demonstrates our resolve to incapacitate the most violent offenders, uphold the rule of law, deter criminal conduct with a strong message of significant consequences, and make us all safer."

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Memphis Police Department.

Assistant U.S. Attorney P. Neal Oldham prosecuted this case on behalf of the government.

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ALBUQUERQUE – A grand jury in Albuquerque, N.M. has returned an indictment charging Victor Kearney, 55, of Zephyr Cove, Nev., and Robert Fiser, 58, of Albuquerque with preparing and filing false tax returns to conceal millions of dollars in income Kearney received as a beneficiary of two testamentary trusts.

            The grand jury returned the indictment on August 27, 2019.  It charges Kearney and Fiser with participating in a conspiracy to defraud the United States, from October 20, 2009, to November 4, 2016, by impairing the ability of the Internal Revenue Service (“IRS”) to assess and collect revenue in the form of income taxes.   The indictment further charges Kearney with willfully making and subscribing a false personal income tax return on September 6, 2013, in which Kearney allegedly substantially underreported his income for 2011.  The indictment further charges Fiser with allegedly aiding and assisting Kearney in the preparation of Kearney’s false return on September 4, 2013.

            According to the indictment, Kearney allegedly received annual income as a beneficiary of Mary Pat Abruzzo-Kearney Trust B and C.  Kearney hired Fiser, a licensed attorney in New Mexico, to prepare his tax returns.  Both Kearney and Fiser knew Kearney received annual income from the Abruzzo-Kearney trusts, but they did not report that income to the IRS.  Kearney and Fiser allegedly concealed their tax evasion by signing false returns and making false statements under oath at depositions in civil lawsuits.         

            Fiser appeared for arraignment in federal court earlier today.  He is out of custody pending trial.  Kearney is scheduled for arraignment on September 12, 2019.   Kearney and Fiser each face a sentence of up to 5 years in prison if convicted of the conspiracy offense.  Kearney faces up to 3 years in prison for making and subscribing a false return.  Fiser also faces 3 years in prison for aiding and assisting in the preparation of the false return.  Indictments are only accusations.  The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

            Special agents with IRS Criminal Investigation investigated this case.   Assistant U.S. Attorneys Kimberly Brawley and Sean Sullivan are prosecuting the case.

SAN FRANCISCO – Federal complaints have been filed against 30 defendants charged in a patients-for-cash kickback scheme, announced United States Attorney David L. Anderson,  Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG), Steven J. Ryan.  

The complaints, unsealed this morning, describe a wide-ranging patients-for-kickback scheme.  At the center of the scheme are Amity Home Health Care, the largest home health care provider in the San Francisco Bay Area, and Advent Care, Inc., a provider of hospice care.  According to the complaints, all the defendants participated in the scheme whereby Amity, under the leadership of Chief Executive Officer Ridhima “Amanda” Singh, paid kickbacks to marketers, doctors, and other medical professionals in exchange for the certification or referral of patients for home health or hospice services.  Also charged are 28 people including doctors, nurses, marketers, a social worker, and additional employees of Amity. According to the complaints, every single defendant charged was recorded by law enforcement officers either offering or accepting, or approving illegal payments for patient referrals. 

Title 42, United States Code, Section 1320a-7b, makes it a crime for any person to knowingly solicit, offer, or pay a kickback, bribe, or rebate for furnishing services under a Federal health care program.  Because many of the patients were insured by Medicare, a taxpayer-funded insurance plan, the referral of patients through the kickback scheme violated the statute.

“The complaints allege a scheme for doctors, nurses, and other medical care professionals to trade patients for cash,” said U.S. Attorney Anderson.  “This is the largest cash-for-patients scheme ever charged criminally in the Northern District of California.”

“The transition to a home health agency should be based on medical and personal needs – not cash payments or thinly disguised referral bribes as alleged in these cases,” said Special Agent in Charge Ryan.  “We will continue working with law enforcement partners to guard these vital government health programs as patients and taxpayers deserve better.”

The criminal complaints describe how Amity and some of its employees bribed individuals associated with hospitals, skilled nursing facilities, and doctors’ offices to induce those individuals to send patients to Amity and Advent.  Amity and the other defendants often disguised the kickbacks as payroll, phony medical directorships, and, at other times, as “entertainment,” reimbursements,” “gifts”, or “donations.”  Further, several of the defendants are doctors and other health care professionals who allegedly received bribes in exchange for making referrals to Amity and Advent and other home health agencies so that the companies could provide and bill for services.  In the case of Amity, Singh and her employees allegedly compensated these professionals in cash for each patient referral and for making introductions to physicians, case managers, or other health care professionals who could refer patients.

In addition, some of the defendants are described as “marketers.” Marketers received from Amity and others cash and gifts, such as tickets to Warriors games, in exchange for patient referrals.  Marketers had clients that consisted of case managers at hospitals, social workers at skilled nursing facilities, doctors, and office staff at doctors’ offices.  Singh allegedly instructed marketers to take clients out to elaborate meals, sporting events, and purchase gifts for individuals willing to provide Amity with patients, mainly Medicare patients.  When patient referrals were slow, Singh allegedly directed the marketer to incentivize clients with gifts in an effort to induce them to refer more patients to Amity.

In sum, the following individuals and companies have been changed in the scheme:

Each defendant is charged with illegally influencing patient referrals for federally funded health care through payments, in violation of 42 U.S.C. § 1320a-7b(b)(2)(A).  In addition, Singh is charged with lying to investigators, in violation of 18 U.S.C. § 1001, and tampering with witnesses in violation of 18 U.S.C. § 1512(b)(3).

The complaints merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, the defendants face a maximum sentence of 10 years in prison and a maximum $500,000 fine.  The corporations are subject to a $1,000,000 for each violation.  In addition, Singh faces a maximum statutory penalty of 5 years and a $250,000 fine for the § 1001 charge and a maximum statutory penalty of 20 years and a $250,000 fine for the § 1512 charge.  In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate.  However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s new Corporate Fraud Strike Force and is the result of an investigation by the FBI and HHS-OIG.

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that Chief United States District Judge Shelly D. Dick sentenced Gaylen T. Hall, a 41-year-old resident of Prairieville, Louisiana, to 72 months in federal prison following his conviction for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.  The Court further sentenced Hall to 3 years of supervised release following his term of imprisonment, and ordered that the firearm possessed by Hall be forfeited.

According to the factual basis submitted during Hall’s guilty plea, on January 30, 2019, a Livingston Parish Sheriff’s Office Deputy initiated a traffic stop on a Chevrolet Tahoe near the intersection of Juban Road and Interstate 12.  After a brief stop, the Tahoe drove off before the Deputy could contact the occupants.  During the pursuit, Hall, the front seat passenger, threw methamphetamine, a Sig Sauer firearm, and various other items out of the front passenger-side window of the Tahoe.  Hall had instructed the driver to drive off after the initial stop.

The Tahoe eventually stopped along the side of Interstate 12.  After detaining the driver and Hall, deputies approached an open door of the Tahoe and observed what appeared to be methamphetamine littered throughout the interior compartment.  During the subsequent search, deputies recovered digital scales, several clear plastic sandwich bags, a box containing 84 rounds of .45 caliber ammunition, plastic straws, $100 in cash, a quantity of methamphetamine, and a damaged Samsung smartphone on the front passenger seat.

Meanwhile, other responding deputies canvassed the side of the road along the pursuit route.  These deputies recovered plastic sandwich bags containing a quantity of methamphetamine, the Sig Sauer firearm with one live round of Remington .45 caliber ammunition in the chamber, and other items.  In total, deputies recovered 30.17 grams of methamphetamine.

U.S. Attorney Fremin stated, “Our office continues to work hard to keep firearms and illegal drugs out of the hands of drug dealers.  Working with our law enforcement partners, we will utilize our resources to keep our communities safe.  I want to thank our prosecutors, and our federal, state, and local partners for their efforts.”

“This individual disregarded both the law and the safety of others,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn.  “It is imperative that armed drug dealers are taken out of the community they victimize and before a tragedy can occur.”

“I am proud of my deputies for working hard to help maintain the safety of Livingston Parish.  I would hope that this sends a clear message to criminals who choose this lifestyle.  We will not tolerate this type of activity.  As always, I appreciate the cooperation between law enforcement agencies & the working relationship we have with the US Attorney,” said Livingston Parish Sheriff Jason Ard.

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Livingston Parish Sheriff’s Office, with substantial assistance from the Louisiana State Police Crime Laboratory.  The case was prosecuted by Assistant United States Attorneys Chris Dippel and Alan Stevens, who also serve as Deputy Criminal Chiefs. 

SENTENCING - Samuel Colin

On August 26, Samuel Colin, 25, was sentenced to 78 months in the United States Bureau of Prisons for conspiring to possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine.  Court records reveal that from October 18, 2016, to September 6, 2017, he conspired with others to distribute methamphetamine. The case is part of an Organized Crime Drug Task Force (OCDETF) Investigation and was investigated by the Federal Bureau of Investigation, the Criminal Investigations Division of the Internal Revenue Service, and the Dallas Police Department. The case was prosecuted by Assistant United States Attorney George Leal.

SENTENCING - Jose Guadalupe Silva

On August 23, Jose Guadalupe Silva, 31, was sentenced to 17 years and 6 months in federal custody after pleading guilty to conspiracy to possess with intent to distribute 500 grams or more of cocaine. Silva admitted to working with others to distribute cocaine. The court authorized wiretapping and found that Silva and his co-conspirators used coded language to discuss the sale and dispersion of cocaine. The case was investigated by Drug Enforcement Agency and prosecuted by AUSA George Leal.

GUILTY PLEA - Ronnie Rusk

On August 23, Ronnie Rusk, 44, pled guilty to using a communication facility to facilitate a drug felony. Rusk admitted to using a cell phone to discuss the distribution of a half-kilogram of cocaine. He coordinated with his co-defendant and a Drug Enforcement Agency cooperating defendant to deliver the cocaine to the cooperating defendant. Rusk faces a maximum sentence of up to four years. This case was investigated by the Drug Enforcement Agency and prosecuted by AUSA Suzanna Etessam.

GUILTY PLEA - Keon Dwayne Thompson

On August 27, Keon Dewayne Thompson, 35, pled guilty to felon in possession of a firearm and conspiracy to commit kidnapping. Thompson and his co-conspirators traveled to Bonham, Texas to kidnap the victim. Thompson threatened the victim at gunpoint for force compliance with his demands to withdraw funds from the victim’s bank account. Thompson faces a maximum possible sentence of 15 years in federal custody. The case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Dallas Police Department and is prosecuted by AUSA PJ Meitl.

GUILTY PLEA - James Earl Cude

On August 27, James Earl Cude, 54, pled guilty to receipt of child pornography. Cude received the pornography via his cell phone through the Kik application. He faces a maximum sentence of 20 years in federal prison. This case was investigated by Homeland Security and is prosecuted by AUSA Camille Sparks.

INDICTMENT – Jose Alanis

On August 28, Jose Alanis, 34, was charged with production of child pornography and possession of prepubescent child pornography. Alanis allegedly used his cell phone and laptop to document and view minors engaged in sexually explicit acts. This case was investigated by ­­­­the Dallas Police Department and Homeland Security Investigations and is prosecuted by AUSA Camille Sparks. If convicted, Alanis faces up to 80 years in federal custody.

SENTENCING - Donnie Arlondo Ferrell

On September 4, Donnie Arlondo Ferrell, 26, was sentenced to 30 years in federal custody for murder and using a firearm during a crime of violence. Ferrell murdered of a postal worker during a road rage incident where he fired at the USPS vehicle. When law enforcement attempted to arrest Ferrell, he refused to exit his residence and surrender for several hours. The case was investigated by the Federal Bureau of Investigations, the US Marshall’s Service, Dallas Police Department, and the Dallas County Sheriff’s Department. AUSA P.J. Meitl prosecuted the case. To learn more about the case, click here.

GUILTY PLEA – Rafael Rubi

On September 3, Rafael Rubi, 24, pled guilty to possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon. Federal agents were able to link shell casings from four separate drive-by shootings to Rubi’s firearms that were found in his home and car, along with heroin, methamphetamine, and cocaine. The case was investigated by Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Dallas Police Department. AUSA Rebekah Rickets and AUSA Gary Tromblay prosecuted this case. To learn more about the case, click here.

PITTSBURGH - A resident of the North Side of Pittsburgh, PA, has been sentenced in federal court to three years and ten months (46 months) in prison on conviction of possession with intent to distribute heroin and crack cocaine as well as maintaining a drug involved premises, United States Attorney Scott W. Brady announced today.

Senior United States District Judge Donetta W. Ambrose imposed the sentence on Kawama Hightower, 41.

According to the information presented to the court, on September 11, 2018, FBI investigators conducted a traffic stop of Hightower while he was leaving his residence. During the traffic stop, they recovered crack cocaine and nearly $4,000 in cash from Hightower and his vehicle. Later on that day, investigators executed a search warrant at Hightower’s residence and recovered additional quantities of crack cocaine, nearly 100 bricks of heroin, two loaded firearms, additional ammunition, digital scales, and drug packaging materials.

Prior to imposing the sentence, Judge Ambrose stated that Hightower’s sentence was intended to hold him accountable for his crimes, reflect the seriousness of his crimes, and protect the public.

Assistant United States Attorney Mark V. Gurzo are prosecuted this case on behalf of the government.

The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation of Hightower. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, McKees Rocks Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.

Portland, Maine:  United States Attorney Halsey B. Frank announced that Gary Boshoff, 52, formerly of Topsham, Maine, pleaded guilty today in U.S. District Court to possessing child pornography.

According to court records, in August 2016, agents investigating the sharing of child pornography over the internet downloaded files depicting minors engaged in sexually explicit conduct from a computer using an Internet Protocol address assigned to Boshoff’s residence in Topsham. A search warrant was obtained for the residence, and agents executed the warrant in October 2016. Boshoff admitted to agents that he had used the internet to search for and download child pornography images. A review of a laptop seized under the warrant revealed images depicting minors engaged in sexually explicit conduct.

Boshoff faces up to 10 years in prison and a $250,000 fine. He also faces a term of supervised release following his release from prison of no less than five years and up to life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit, the Naval Criminal Investigative Service and the Topsham Police Department. The 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. Project Safe Childhood marshals federal, state and local resources to better 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.

Memphis, TN – Tanner Penwell, 22, pleaded guilty to using unlawful force on an inmate while Penwell was serving as a correctional officer with the Tennessee Department of Corrections.

"This type of behavior and violation of an inmate’s civil rights will not be tolerated," said Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division. "The Department of Justice will continue to seek out justice on behalf of those who have had their civil rights violated."

"Correctional officers must abide by and adhere to the same laws they take an oath to uphold and enforce. Instead of serving and protecting the public, this officer used physical force to violate the civil rights of an individual and will now be held accountable, vividly illustrating that no one is above the law," said U.S. Attorney D. Michael Dunavant.

"The FBI will vigorously investigate and bring to justice any law enforcement officer who crosses the line and engages in activity that violates the civil rights of those whose safety they are charged with," said Bryan McCloskey, Acting Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "This plea should be a reminder that wearing a badge does not make one above the law."

With his guilty plea, Penwell admitted that, on February 1, 2019, he and several other correctional officers entered the cell of R.T., an inmate in the mental health unit at the Northwest County Correctional Complex in Tiptonville, Tennessee. Penwell and the other officers entered the cell because R.T. was a suicide risk. Inmate R.T. was already bleeding when the officers entered his cell, and R.T. flung blood toward the correctional officers.

Once inside, a correctional officer looked in the direction of the surveillance camera in the cell and said, "violate the camera." Another correctional officer then covered the camera with his hand.

The correctional officer who asked for the camera to be violated then repeatedly punched R.T. Penwell estimated that this officer hit R.T. more than 20 times. When the officer stopped hitting R.T., he looked back at Penwell and said, "get him." Penwell stepped up and punched R.T. multiple times in the head. After Penwell stopped punching R.T., a third correctional officer punched R.T.

Throughout the time he was being punched by the correctional officers, inmate R.T. sat on the bench in the cell and only used his arms to cover his face in an apparent attempt to protect his face from the correctional officers’ punches. At no point did R.T. attempt to fight back. Penwell knew that punching R.T. was unlawful, but he did not step in to stop it. A supervisor and several correctional officers were in a position to watch as the three correctional officers punched inmate R.T., but none of them attempted to stop the officers from hitting R.T. After R.T. was punched by the officers, Penwell observed that R.T. was bleeding much more than when they had first entered the cell.

Once outside of the cell, Penwell spoke with several correctional officers and a supervisor. The supervisor said he needed to see if the camera inside the cell was working. The supervisor and the first correctional officer who punched R.T. decided that all of the officers would falsely claim that R.T. injured himself while he was on suicide watch in the mental health unit.

The next morning, the first correctional officer who punched R.T. told Penwell that instead of falsely claiming that R.T. injured himself, as the supervisor had proposed the day before, they should both falsely blame the third correctional officer who punched R.T. for all of R.T.’s injuries. Over the next few days, the first officer who punched R.T. repeatedly told Penwell to stick to this new cover story.

With today’s guilty plea, Penwell admitted that he violated 18 U.S.C. § 242 when he repeatedly punched and injured inmate R.T. without legal justification. The maximum penalty for this civil rights offense is 10 years imprisonment.

In a related case, former Correctional Officer Nathaniel Griffin entered a guilty plea in federal court on August 15, 2019. Sentencing is scheduled for November 27, 2019, before U.S. District Court Judge J. Daniel Breen.

This case was investigated by the Memphis Division of the FBI with the support of the Tennessee Department of Corrections, and is being prosecuted by Trial Attorney Rebekah J. Bailey of the Justice Department’s Civil Rights Division and Assistant United States Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.

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WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Mark Consiglio, 49, of Elsmere, Delaware was sentenced today in federal court in Delaware for his role in detonating a pipe bomb at a home in Elsmere, Delaware. 

According to court documents and statements made in open court, Consiglio detonated a pipe bomb at his estranged wife’s residence in the early morning hours of March 12, 2018 before fleeing the scene.  The pipe bomb was thrown at the living room window and bounced back after damaging the window. The pipe bomb then exploded in the front yard of the residence.  Two occupants were home at the time of the pipe bomb explosion, one of whom was in the living room.  Shrapnel from the explosion was found inside the living room. 

After conducting a search warrant at Consiglio’s house, four more pipe bombs were recovered as well as a .38 caliber revolver; materials used to make a pipe bomb, including PVC, fuse wire, ball bearings, and gunpowder; a World War II-era flare launcher that had been modified to accept 9mm ammunition; and a book titled “CIA improvised sabotage devices” that was dog-eared to the page on “incendiary devices.”  At the time he set off the pipe bomb, Consiglio was already facing state charges for threatening to kill his wife.  The government’s court filings noted that Consiglio had a history of violence and threats of violence both toward his estranged wife and other members of the community. 

In sentencing Consiglio to 105 months of prison, Judge Andrews noted Consiglio’s history of violence and stated, “During his entire adult life Defendant has threatened and assaulted others.” The statutory maximum sentence for the offense was 10 years of imprisonment.    

U.S. Attorney Weiss commented, “The defendant’s brazen and violent act was intended to harm and terrorize.  Only sheer luck prevented anyone from being injured or killed. We will continue to prosecute violent criminals to the fullest extent of the law in an effort to make our streets and communities safer.  We are thankful to our federal and state partners for their hard work in investigating this case.”

“Elsmere residents deserve to live in safe neighborhoods, and we are committed to identifying, investigating, and incarcerating anyone who threatens the safety of these communities,” said ATF Special Agent in Charge Rob Cekada. “We are proud to see that the thorough work done by our Special Agents and local and state investigative partners has resulted in bringing this violent offender to justice.”

This case was investigated by the ATF Wilmington Field Office in coordination with the Office of the State Fire Marshal and the Elsmere Police Department.  The U.S. Attorney’s Office also thanks the New Castle County Police Department for its assistance.  The case was prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim.