HONOLULU – Federal charges against 15 defendants and the seizure of thousands of dollar’s worth of property and funds were announced today by U.S Attorney for the District of Hawaii Kenji M. Price.

The fifteen individuals charged include:

Zongqi Ding (33), Tommy Can Wei Lee (50), Zhong Chen (38), Endrews Setefano (31), Paolo Ioane (30), and Matthew Samuela (31) who were charged with conducting, financing, managing, supervising, directing, or owning a gambling business operated out of a single-family residence from October 2018 to August 2019 at 94-103 Pupupuhi Street in Waipahu.

Jason Ishizuka (38), Aiyan Zhang (33), Seng Long Lio (30), Shi Min Huang (33), Alex Hui Zhang (29), and Freddy Siatunuu (31) who were charged with conducting, financing, managing, supervising, directing, or owning a gambling business operated out of a single-family residence from October 2018 to August 2019 at 1577 Hoolehua Street in Pearl City. In addition, Siatunuu has been charged with robbery for the July 22, 2019 robbing of a patron at gunpoint at the illegal gambling business located at 1577 Hoolehua Street after the patron won an estimated $4,000 playing an electronic video gambling machine.

Kenneth Puahi (47) who was charged with arson of a building used in interstate commerce. According to the indictment, during 2018, Puahi leased a space in a commercial warehouse located at 94-170 Leoole Street in Waipahu. The warehouse owners were notified that the leased space was suspected of being used for unlawful gambling and took steps to evict Puahi. On, April 14, 2019, Puahi maliciously damaged and attempted to damage the warehouse by setting it on fire.

Pauulu Lavatai (21) who was charged with robbery and using a firearm to commit a crime of violence. According to the criminal complaint, on February 3, 2019, Lavatai and an unidentified male entered an illegal game room located on Liliha Street. The two pistol whipped the security officer, took money from a female cashier and fled the scene.

Ifo Nimoai, Jr. (35) who was charged with possession of controlled substances with intent to distribute, possession of firearm in furtherance of drug tracking crime, and felon in possession of a firearm and ammunition. According to the criminal complaint, on November 29, 2018, Nimoai possessed with the intent to distribute methamphetamine, cocaine, and marijuana. Additionally, Nimoai knowingly possessed a .45 caliber pistol and ammunition and did so after having been previously convicted of a felony.

The aforementioned charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

These cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Department of Homeland Security (Homeland Security Investigations), Hawaii High Intensity Drug Trafficking Area program (HIDTA), U.S. Marshals Service Hawaii Fugitive Task Force, and the Honolulu Police Department. Assistant U.S. Attorneys Micah Smith, Rachel Moriyama, Sara Ayabe, Jeremy Butler, Mohammed Khatib, and Sydney Spector are handling the cases.

HONOLULU – Aaron A. Hood, 42, of Honolulu, Hawaii pleaded guilty today in federal court to one count of possession of child pornography. This guilty plea occurred on the second day of Hood’s jury trial involving a separate charge of production of child pornography. Under the terms of the plea agreement, the parties agreed to a recommended sentence of 10 years of imprisonment and a 25-year term of supervised release. Sentencing is scheduled for January 30, 2020 before U.S. District Judge Leslie E. Kobayashi.

According to U.S Attorney Kenji M. Price, the government alleged during trial that Hood met the 14-year-old minor female victim on January 23, 2016, outside the store where he worked in Waikiki. The minor had run away from home. Over a four-day period, Hood provided the minor with cocaine, marijuana, and alcohol, and had her stay in an apartment that he had access to, which was located behind the store where he worked. During that time, Hood engaged in sexual activity with the minor and took photos and videos of her engaged in sexually explicit conduct.

This case was investigated by the Department of Homeland Security (Homeland Security Investigations), the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Honolulu Police Department. It was prosecuted by Assistant U.S. Attorneys Margaret Nammar and Rebecca Perlmutter.

Notably, this is the second child pornography trial handled by the U.S. Attorney’s Office District of Hawaii within the past month. On August 27, 2019, a federal jury in Honolulu, Hawaii found defendant Grant Manaku, 34, of Kauai, Hawaii guilty of one count of possession of child pornography, announced U.S. Attorney Price.

LOUISVILLE, Ky. – A Louisville, Kentucky, man has pleaded guilty to the federal crime of being a felon in possession of a firearm, announced United States Attorney Russell Coleman.  

Elijah Eubanks, age 21, was charged by a Louisville federal Grand Jury on July 24, 2018, in a single count Indictment of being a felon in possession of a Ruger .357 caliber revolver.  Eubanks pleaded guilty to the Indictment yesterday in U.S. District Court.

The federal charge stemmed from a shooting involving a Louisville Metropolitan Police Officer on March 31, 2018.  Eubanks fired at an officer who attempted to question him while he was in a vehicle with another person.  Jefferson County Commonwealth Attorney Tom Wine’s Office previously convicted Eubanks of attempted murder for this incident. 

At the time of the March 31^st shooting, Eubanks had previously pleaded guilty to one count of Wanton Endangerment I, and one count of Criminal Mischief I, in Jefferson Circuit Court on November 2016, as part of a pre-trial diversion agreement.  He was prohibited from possessing a firearm because of his guilty plea.

“Shoot a peace officer, shoot at a peace officer, and the United States Attorney’s Office will seek to send you to federal prison for as long as the law allows,” said U.S. Attorney Russell Coleman. 

Eubanks is scheduled for sentencing on November 1, 2019, at 10 a.m., before United States District Court Judge David J. Hale.

The maximum sentence for unlawfully possessing a firearm is no more than ten years in federal prison, a $250,000 fine, and three years of supervised release. There is no parole in the federal system.

The case is being prosecuted by Assistant United States Attorney Amanda Gregory and it was investigated by the Louisville Metro Police Department (LMPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

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London, KY- Shiloh Adams, 34, of Jeremiah, Ky., and Mitchell Adams, 35, of Whitesburg, Ky., were sentenced Tuesday, to 150 months in prison and 94 months in prison respectively, by United States District Judge Claria Horn Boom, for drug trafficking and possession of a firearm in furtherance of drug trafficking.

According to their plea agreements, in November 2018, the Adams’ traveled from Letcher County, Ky., to Louisville, Ky., to purchase methamphetamine for purposes of distribution in the Eastern District of Kentucky. Law enforcement stopped the Adams’ vehicle on the return trip to Letcher County.  During a search of the vehicle, officers found over 50 grams of methamphetamine a .540 caliber pistol, and $10,249 in cash.

Shiloh Adams pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking. Mitchell Adams pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine.

Under federal law, the Defendants must serve 85 percent of their prison sentence. Shiloh Adams and Mitchell Adams will be under the supervision of the U.S. Probation Office for six years and five years respectively.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Tommy Estevan, Acting Special Agent in Charge, ATF, Louisville Field Division, jointly announced the sentence.

 The investigation was conducted by the Louisville Police Department and the ATF’s Ashland Office. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna Reed.  

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RICHMOND, Va. – A federal grand jury returned an indictment yesterday charging a Richmond man with the armed robbery of Call Federal Credit Union in Midlothian.

According to the indictment, Okello Chatrie, 24, entered the Call Federal Credit Union in Midlothian, in May, demanding money at gunpoint. Chatrie robbed the Credit Union of nearly $200,000. 

Chatrie is charged with forced accompaniment and brandishing a firearm during the armed robbery. If convicted, he faces a mandatory minimum of 10 years in prison for the forced accompaniment and a mandatory minimum of seven years in prison for brandishing a firearm during the robbery. The maximum penalty is life imprisonment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

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 David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement. Assistant U.S. Attorneys Kenneth Simon and Peter S. Duffey are prosecuting 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-130.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Maurice L. Ross, age 35, of Harrisburg, Pennsylvania, was sentenced on September 17, 2019, to 924 months’ imprisonment followed by five years on supervised release, by United States District Court Judge Yvette Kane for unlawful possession of a firearm as a convicted felon and three armed robberies. 

Judge Kane also ordered Ross to pay restitution in the amount of $2,147 to Brookwood Mart and the convenience store clerk victims.

According to United States Attorney David J. Freed, Ross was convicted on November 6, 2018 after a two-day jury trial, of three counts of a felon in possession of a firearm (a Charter Arms .38 caliber revolver), three counts of interference with commerce by threats or violence, and three counts of carrying and brandishing a firearm in furtherance of a crime of violence.

Ross robbed the Brookwood Mart, located in Harrisburg, by gunpoint on three separate occasions on December 8, 17, and 22, 2016. Each time, he stole hundreds of dollars of cash from the store registers.  Two of the three times, he also stole dozens of instant lottery tickets. The robberies occurred several months after Ross was released from federal prison after serving five years for possession with intent to distribute cocaine base and possessing a firearm in furtherance of drug trafficking.

There was surveillance footage from the robberies, but Ross was heavily hooded and masked, so identification was a significant issue, but Ross cashed some of the stolen lottery tickets the morning after one of the robberies at another convenience store, before the tickets could even be reported stolen.  The PA Lottery provided the location, date and time of the cashings, and Harrisburg detectives were able to review in-store surveillance videos at the store where the tickets were cashed.  That surveillance footage revealed a license plate that led detectives to Ross’ residence where a search warrant was executed.  Detectives found the very distinctive gun Ross used in all three robberies, a shirt tied like a mask, a pair of black boots, a black knit hat and a flat-brimmed hat seen in surveillance footage. 

The case was investigated by the Harrisburg Police Department.  Assistant United States Attorneys James T. Clancy and Carl Marchioli prosecuted the case.

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

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John H. Durham, United States Attorney for the District of Connecticut, announced that MELISSA MEOLE, 34, of North Branford, was arrested today on a federal criminal complaint charging her with multiple embezzlement, fraud and identity theft offenses.

MEOLE appeared this afternoon before U.S. Magistrate Judge Robert M. Spector in New Haven and was released on a $200,000 bond.

As alleged in the criminal complaint, Meole was employed by Bridgeport Health Care Center Inc. (“BHCC-INC”), a corporation that operates a nursing and rehabilitation facility in Bridgeport known as Bridgeport Health Care Center (“BHCC”).  Prior to November 2018, BHCC-INC also operated a second nursing and rehabilitation facility in Bridgeport known as Bridgeport Manor.  Meole worked in BHCC-INC’s business office and was responsible for processing payroll and for handling the finances of the Bridgeport Manor resident trust account.  Between approximately January and October 2018, Meole embezzled approximately $150,000 from the BHCC and Bridgeport Manor resident trust accounts.

In addition, the complaint alleges that Meole stole more than $29,000 from BHCC-INC in the form of payroll checks, which she deposited into her personal bank account.

It is further alleged that, after Meole’s employment with BHCC-INC was terminated in October 2018, Meole defrauded another employer of more than $9,000, and she defrauded multiple banks in an identity theft and check kiting scheme.

The complaint charges Meole with theft or embezzlement in connection with health care, which carries a maximum term of imprisonment of 10 years; health care fraud, which carries a maximum term of imprisonment of 10 years; wire fraud, which carries a maximum term of imprisonment of 20 years; bank fraud, which carries a maximum term of imprisonment of 30 years; and aggravated identity theft, which carries a mandatory two-year term of imprisonment.

U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the U.S. Department of Labor – Office of Inspector General, U.S. Department of Labor – Employee Benefits Security Administration, Boston Regional Office, Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Neeraj N. Patel.

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Fausto Hernandez, age 41, of Tobyhanna, Pennsylvania, was indicted on September 17, 2019, by a federal grand jury for cocaine trafficking.

According to United States Attorney David J. Freed, the indictment charges Hernandez with four counts of distribution of cocaine, and one count of possession with intent to distribute cocaine between June 11 and August 6, 2019, in Monroe County. 

This matter was investigated by the Drug Enforcement Agency (DEA) and the Pocono Mountain Regional Police Department.  Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.

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

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum sentence under federal law is up to twenty in prison, a term of supervised release following imprisonment, and a fine.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs.  For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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BOSTON – A Tewksbury woman was charged today in federal court in Boston with diverting morphine while employed as a nurse in the hospice unit at the Veterans Affairs (VA) Medical Center campus in Bedford.

Kathleen Noftle, 55, was arrested this morning and charged by criminal complaint with one count of obtaining a controlled substance by misrepresentation, fraud, deception, and subterfuge, and one count of tampering with a consumer product. Noftle will make an initial appearance in federal court in Boston at 12:00 p.m. today. 

According to charging documents, on Jan. 13, 14, and 15, 2017, Noftle used her position as a nurse to obtain doses of morphine that were meant to be given to the veterans under her care in the hospice unit. Noftle admitted to federal agents that she mixed water from a sink with a portion of the liquid morphine doses, and then administered the diluted medication to patients orally. Noftle then allegedly ingested a diluted amount of the remaining drug. The investigation revealed that, due to diluted morphine administered by Noftle, one veteran experienced increased difficulty breathing (dyspnea) and increased suffering in his final days. The investigation also found that before working at the VA Medical Center in Bedford, Noftle had resigned from her position as a nurse at a different hospital following her failure to follow appropriate procedures when wasting narcotics on 60 occasions.  

The charge of obtaining a controlled substance by misrepresentation, fraud, deception, and subterfuge, provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of tampering with a consumer product provides for a sentence of no greater than four years in prison, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling and Sean Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney William B. Brady of Lelling’s Health Care Fraud Unit is prosecuting the case.

RICHMOND, Va. – A federal grand jury returned an indictment today charging a Richmond man with possession of a firearm by a convicted felon.

According to the indictment, in May 2017, Travis Aaron Ball aka “Wiz,” 30, possessed a .25 caliber firearm after previously being convicted of a crime punishable by imprisonment for a term exceeding one year. 

Ball is charged with possession of a firearm by a convicted felon. If convicted, he faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

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, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement. Assistant U.S. Attorneys Erik S. Siebert and Stephen E. Anthony are prosecuting 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-128.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

Jacksonville, Florida – Maria Chapa Lopez announces that, on September 17, 2019, a three-judge panel of the United States Court of Appeals for the Eleventh Circuit affirmed the 120-year federal-prison sentence of Kyle Adam Kirby (39, Live Oak), who was convicted of producing, attempting to produce, possessing, and accessing images and videos depicting the sexual abuse of minors. Kirby was arrested on October 28, 2015, at the Live Oak Police Department (LOPD) and has remained in custody since that date. A federal jury found him guilty on December 7, 2017.

According to testimony and evidence at trial, on October 22, 2015, FBI agents and other law enforcement officers executed a search warrant at Kirby’s residence as a result of an online child exploitation investigation. At that time, Kirby was a sergeant with the Live Oak Police Department. That same morning, the LOPD chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of this computer revealed that it contained images depicting young children engaged in sexually explicit conduct. Kirby had used the patrol car’s computer to search for, download, access, and possess child pornography from as early as December 24, 2014.

A later search of an LOPD desktop computer used by Kirby revealed images depicting nude and partially undressed children in at least three different bathrooms. The evidence at trial revealed that Kirby had used one or more concealed cameras to surreptitiously film the unsuspecting minors. He had then transferred these images to the LOPD desktop computer and later had unsuccessfully attempted to delete them. Agents were able to locate folders on the computer named for several of Kirby’s victims.   

In March 2018, United States District Judge Timothy J. Corrigan sentenced Kirby to serve 120 years in federal prison for these crimes. Kirby appealed his sentence to the United States Court of Appeals for the Eleventh Circuit, but that court affirmed, holding that the district court had not erred in calculating Kirby’s United States Sentence Guidelines advisory sentence of life imprisonment, which the court said, means a sentence that is “indefinite in duration.” The court said that Kirby’s 120-year sentence was “the closest available sentence to indefinite incarceration,” and concluded that, “when the Sentencing Guidelines recommend life imprisonment, they mean life imprisonment.”

The Court of Appeals also held that Kirby’s sentence was not unreasonably long, noting that, before imposing the longest sentence that it could, the District Court had “thoroughly discussed Kirby’s particularly heinous conduct and direct participation in the creation of child pornography, his breach of public trust as a police officer, and his total failure to take responsibility for his actions.”

This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement, with the full cooperation of the Live Oak Police Department. Assistant United States Attorney D. Rodney Brown prosecuted the case in the District Court, and Linda Julin McNamara, Sara Sweeney, and Michelle Thresher Taylor represented the United States on appeal.

It is another case 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.justice.gov/psc.   

NORFOLK, Va. – A Virginia Beach man was sentenced today to six years in prison for exploiting an elderly man’s diminished mental capacity to defraud him of nearly $157,000.

According to court documents, John Michael Gatchell, 55, facilitated a marriage between the elderly man and a woman with whom Gatchell had a long-term relationship in order to gain access to the elderly man’s money and property. Gatchell induced the elderly man to make a down payment on a Jaguar that Gatchell and a family member drove for about 10 months before it was repossessed by the lender when the loan went into default.

Gatchell also induced the elderly man to obtain two mortgage loans and then diverted most of the proceeds to the benefit of himself and others. He subsequently induced the elderly man to sell the property that secured the loans and again diverted most of the proceeds to himself and others. Gatchell used these monies that he fraudulently diverted to himself to purchase concert series tickets, pay delinquent bills, and make a security deposit for a house he leased, among other things.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Alan M. Salsbury 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. 2:19-cr-49.

DAYTON – Gabriel Newman, 36, of Dayton was sentenced in U.S. District Court to 84 months in prison for possessing an AR-15 assault-style rifle at a home where he was dealing illegal drugs.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Dayton Police Chief Richard Biehl announced the sentence handed down by U.S. District Judge Walter H. Rice.

Newman was also ordered to forfeit a handgun, ammunition and a high-capacity magazine for the AR-15 found during the search.

According to court documents, Newman was on federal supervised release in early 2018 for a prior federal conviction of drug trafficking when agents found the firearm as well as illegal drugs hidden inside a Christmas tree at a residence in east Dayton.

Agents arrested Newman and he pleaded guilty in February to one count of possessing a firearm as a convicted felon, and to violating his supervised release following his 2015 conviction for drug trafficking.

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

U.S. Attorney Glassman commended the cooperative investigation by the ATF and Dayton Police Department, as well as Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case. 

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A Holmes County company that advertised it manufactured tinctures, salves and herbal formulas was fined more than $165,000 for refusing to allow FDA investigators to inspect its facilities.

Precision Herbs LLC was ordered to pay a fine of $166,965 –- which represented the profits of their business after they refused FDA Inspection. Original Design Wellness was fined $2,000. Company officials Sharon Overman and Eric Pierce were both sentenced to six months of probation and ordered to pay a $2,000 fine.

All parties previously pleaded guilty to one count of refusal of inspection and one count of introduction of adulterated drugs and devices.

According to the criminal information filed in U.S. District Court:

Precision Herbs advertised it manufactured “alcohol-based tinctures, salves and vegetable-based encapsulations of unique herbal formulas” that “address(ed) individual wellness needs and improved daily living.”

Original Design Wellness Center was associated with Precision Herbs and distributed Precision Herbs’ products. Overman, 75, and Pierce, 50, owned both companies.

The FDA obtained a warrant on January 15, 2016 to inspect Precision Herbs’ facilities in Killbuck and Millersburg, Ohio. Original Design Wellness Center was operated out of the Millersburg facility.

FDA investigators, accompanied by U.S. Marshals, attempted to conduct an inspection of both locations on January 21, 2016. Overman and Pierce refused the inspection of the Millersburg facility. Pierce initially allowed the inspection of the Killbuck facility until a third party arrived and disrupted it. Pierce allowed the disruption and the inspection was terminated.

The companies, Overman and Pierce continued to sell products that were manufactured from a location that refused to permit inspection by the FDA. This took place between January 21, 2016 and May 24, 2017.

“Today’s announcement demonstrates that those who purposely subvert the regulatory functions of the FDA by obstructing inspections will be held accountable for their actions,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office. “We value the efforts of the Department of Justice for vigorously pursuing the prosecution of this matter.”

This case was investigated by the FDA and prosecuted by Assistant U.S. Attorney Alejandro Abreu.

HOUSTON - The Justice Department has announced a coordinated health care fraud enforcement operation across the state of Texas involving charges against a total of 58 individuals, several of which are charged in Houston. They were allegedly involved in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in loss and 6.2 million pills. Of those charged, 16 were doctors or medical professionals, while 20 were charged for their role in diverting opioids.   

The Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners led the enforcement actions. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, FBI, Department of Health and Human Services – Office of Inspector General (HHS-OIG) and Drug Enforcement Administration. In addition, the operation includes the participation of the Veterans Affairs – OIG and the Department of Labor (DOL), various other federal law enforcement agencies and Texas State Medicaid Fraud Control Units. 

The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), DOL - Office of Worker’s Compensation Programs and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals allegedly involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. 

According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.

Today’s arrests come three weeks after the Department announced that the Health Care Fraud Unit’s Houston Strike Force coordinated the filing of charges against dozens in a trafficking network responsible for diverting over 23 million oxycodone, hydrocodone and carisoprodol pills. 

“Sadly, opioid proliferation is nothing new to Americans,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “What is new, is the reinforced fight being taken to dirty doctors and shady pharmacists. Texas may have four U.S. Attorneys, but we are focused on one health care mission: shutting down pills mills and rooting out corruption in health care. From Lufkin to Laredo and Dallas to Del Rio, one of us will shut these operations down.”

“Today’s charges highlight the amazing work being done by the Department’s Medicare Fraud Strike Force and our partners in Texas,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “As we continue to dedicate resources to battle healthcare and opioid fraud schemes in Texas and elsewhere, we are shining an inescapable light on dirty doctors, clinic owners, pharmacists and others who may have long believed they could perpetrate their frauds behind closed doors.”

“These arrests across multiple investigations and jurisdictions is further proof that successful teamwork exemplifies Texas law enforcement,” said DEA Houston Special Agent in Charge Will R. Glaspy. “Today’s operation affirms both our commitment to targeting those individuals who illegally divert opioids in our communities, and our collective will to bring those individuals to justice.”

“Health care fraud undermines our country by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of HHS-OIG. “Today’s takedown shows that we are fighting hard to protect Medicare and Medicaid and the patients served by those programs. Working closely with our law enforcement partners, our agents are determined to ensure fraudsters pay for their crimes.”

“Today’s announcement demonstrates the close collaboration between the FBI and its law enforcement partners in North Texas,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office. “The enormous economic damage caused by those who defraud crucial public health programs, as well as the ever-increasing loss of life caused by illicit and illegitimate pill schemes cannot be overstated. The public can rest assured the FBI will continue to make these investigations a top priority moving forward.”

Among those charged in the Southern District of Texas are:

Diana Hernandez, Kathy Hernandez, Hieu Troung R.P.H., Clint Randall, Prince White, Charles Walton and Cedric Milbrurn were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through S&S Pharmacy of Houston.

Franklin Nwabugwu R.P.H. was charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose through Golden Pharmacy of Houston.

Steven Inbody M.D. and Hoai-Huong Truong were charged for their alleged participation in a scheme to unlawfully distribute and dispense controlled substance without a legitimate medical purpose. 

Ashley McCain, John Sims, Gregory Comer, Kesia Banks and Jacqueline Hill were charged for their alleged participation in a scheme to unlawfully distribute and dispense a controlled substance without a legitimate medical purpose through Continuous Medical Care and Rehabilitation. 

Trial Attorneys Devon Helfmeyer and Catherine Wagner and Assistant Deputy Chief Aleza Remi, all of the Fraud Section, are prosecuting the respective cases.

Several others were also charged in the Northern District of Texas (NDTX), Eastern District of Texas (EDTX) and Eastern District of Texas (EDTX). 

“Healthcare should revolve around patients’ well-being – not providers’ personal interests,” said NDTX U.S. Attorney Erin Nealy Cox.  “When medical professionals line their own pockets by submitting false insurance claims or prescribing unnecessary medications, equipment or treatments, it not only drains taxpayer coffers – but it makes healthcare more expensive for everyone else. We cannot allow the healthcare industry to become bloated by fraud.”

“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said EDTXU.S. Attorney Joseph D. Brown of the “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”

“I am proud to fight healthcare fraud in Texas alongside Ryan Patrick, Erin Nealy Cox and Joe Brown,” said WDTX U.S. Attorney John Bash. “These crimes drive up the cost of health insurance, waste tax revenue and threaten the well-being of Texans.”

The Fraud Section leads the MFSF, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. MFSF maintains 15 strike forces operating in 24 districts. Since its inception in March 2007, MFSF has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

The Justice Department announced today a coordinated health care fraud enforcement operation across the state of Texas, involving charges against a total of 58 individuals across all four federal districts in Texas for their alleged involvement in Medicare fraud schemes and networks of “pill mill” clinics resulting in $66 million in loss and 6.2 million pills.  Of those charged, 16 were doctors or medical professionals, and 20 were charged for their role in diverting opioids.   

Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners.  The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, Health and Human Services-Office of Inspector General (HHS-OIG) and the Drug Enforcement Administration (DEA).  In addition, the operation includes the participation of the Veterans Affairs-OIG and the Department of Labor, various other federal law enforcement agencies and Texas State Medicaid Fraud Control Units.  

The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), Department of Labor-Office of Worker’s Compensation Programs, and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries.  The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals allegedly involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. 

Today’s arrests come three weeks after the Department announced that the Health Care Fraud Unit’s Houston Strike Force coordinated the filing of charges against dozens in a trafficking network responsible for diverting over 23 million oxycodone, hydrocodone and carisoprodol pills. 

“Today’s charges highlight the amazing work being done by the Department’s Medicare Fraud Strike Force and our partners in Texas,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “As we continue to dedicate resources to battle healthcare and opioid fraud schemes in Texas and elsewhere, we are shining an inescapable light on dirty doctors, clinic owners, pharmacists, and others who may have long believed they could perpetrate their frauds behind closed doors.” 

“Healthcare should revolve around patients’ well-being – not providers’ personal interests,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas.  “When medical professionals line their own pockets by submitting false insurance claims or prescribing unnecessary medications, equipment, or treatments, it not only drains taxpayer coffers – but it makes healthcare more expensive for everyone else.  We cannot allow the healthcare industry to become bloated by fraud.”

“Sadly, opioid proliferation is nothing new to Americans,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “What is new, is the reinforced fight being taken to dirty doctors and shady pharmacists. Texas may have four U.S. Attorneys, but we are focused on one health care mission: shutting down pills mills and rooting out corruption in health care. From Lufkin to Laredo and Dallas to Del Rio, one of us will shut these operations down.”

“Every dollar stolen from Medicare through fraud comes out of the pocket of taxpayers,” said U.S. Attorney Joseph D. Brown of the Eastern District of Texas.   “These are real costs that help drive up the cost of medical services for everyone. It is important that there be real consequences for those who cheat the system.”

“I am proud to fight healthcare fraud in Texas alongside Ryan Patrick, Erin Nealy Cox, and Joe Brown,” said U.S. Attorney John Bash of the Western District of Texas.  “These crimes drive up the cost of health insurance, waste tax revenue and threaten the well-being of Texans.”

“These arrests across multiple investigations and jurisdictions is further proof that successful teamwork exemplifies Texas law enforcement,” said DEA Houston Special Agent in Charge Will R. Glaspy.  “Today’s operation affirms both our commitment to targeting those individuals who illegally divert opioids in our communities, and our collective will to bring those individuals to justice.”

“Health care fraud undermines our country by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said HHS - OIG Special Agent in Charge C.J. Porter.  “Today’s takedown shows that we are fighting hard to protect Medicare and Medicaid and the patients served by those programs.  Working closely with our law enforcement partners, our agents are determined to ensure fraudsters pay for their crimes.”

“Today’s announcement demonstrates the close collaboration between the FBI and its law enforcement partners in North Texas,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office.  “The enormous economic damage caused by those who defraud crucial public health programs, as well as the ever-increasing loss of life caused by illicit and illegitimate pill schemes cannot be overstated.  The public can rest assured the FBI will continue to make these investigations a top priority moving forward.”

Among those charged in the Northern District of Texas are the following:

• Michael Charles Braddick, Kyle Martin Hermesch, and Bioflex Medical were charged for their alleged participation in a scheme to defraud the Department of Labor- Office of Worker’s Compensation Programs.  Bioflex Medical is located in Dallas, Texas.  The case is being prosecuted by Special Assistant U.S. Attorney Jennifer Bray.
• Nehaj Rizvi was charged for his alleged participation in a scheme to defraud Medicare through Life Spring Housecall Physicians, Inc., a company located in Dallas, Texas.  The case is being prosecuted by Assistant U.S. Attorney Douglas Brasher.
• Dr. Brian Carpenter and Jerry Hawrylak were charged for their alleged participation in a scheme to defraud TRICARE through a compounding pharmacy located in Fort Worth, Texas.  The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
• Leah Hagen and Michael Hagen were charged for their alleged participation in conspiracies to pay and receive kickbacks and launder money through Metro DME Supply and Ortho Pain Solutions, both durable medical equipment companies in Arlington, Texas.  The case is being prosecuted by Trial Attorney Brynn Schiess.
• Nilesh Patel, Dr. Craig Henry, and Bruce Henry were charged for their alleged participation in a scheme to defraud TRICARE through marketing company RxConsultants and a compounding pharmacy located in Fort Worth, Texas.  The case is being prosecuted by Trial Attorney Carlos Lopez of the Fraud Section.
• Bruce Stroud and Bobbi Stroud were charged for their alleged participation in a scheme to defraud Medicare through New Horizons Durable Medical Equipment, Striffin Medical Supply, and 4B Ortho Supply, all durable medical equipment companies located in the Dallas/Fort Worth area of Texas. The case is being prosecuted by Trial Attorney Carlos Lopez.
• Jamshid Noryian, Dehshid Nourian, Christopher Rydberg, Leyla Nourian, Ashraf Mofid, Dr. Leslie Benson, Dr. Michael Taba, and Ali Khavarmanesh were charged for their alleged participation in a scheme to defraud the Department of Labor- Office of Worker’s Compensation and Blue Cross Blue Shield and conspiracies to launder money and evade the payment of taxes through Ability Pharmacy, Industrial & Family Pharmacy, and Park Row Pharmacy, all located in the Dallas/Fort Worth area of Texas.  The case is being prosecuted by Assistant Chief Adrienne Frazior of the Fraud Section.

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

The Fraud Section leads the MFSF, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  MFSF maintains 15 strike forces operating in 24 districts.  Since its inception in March 2007, MFSF has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

CORPUS CHRISTI, Texas – A 28-year-old Hidalgo drug smuggler has been ordered to federal prison following his conviction of possession with the intent to distribute nearly two kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick. Josue Rivera pleaded guilty May 30, 2019.

Today, U.S. Senior District Judge Nelva Gonzales Ramos ordered Rivera to serve 60 months in prison to be immediately followed by four years of supervised release.

On Feb. 18, 2019, Rivera drove his vehicle into the primary inspection area of the Border Patrol (BP) checkpoint in Falfurrias. Immediately thereafter, a service K-9 alerted to the vehicle by pulling hard towards its direction.

Upon questioning, Rivera claimed to be on his way to work in the oil field. However, authorities noticed he actually did not have any work equipment with him.

They searched the vehicle and discovered 1.95 kilograms of cocaine wrapped in two bundles hidden inside the door of the vehicle. They immediately arrested him.  

The estimated street value of the drugs was $179,200.

Rivera has been on bond and was ordered to surrender himself  to the U.S. Marshal Service on a date to be determined in the near future  for transfer to a U.S. Bureau of Prisons facility.

The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney Joel Dunn is prosecuting the case.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that John Karl Smith, 26, of Philadelphia, Pennsylvania was sentenced to 84 months’ incarceration and three years’ supervised release by United States District Judge Paul S. Diamond for the robbery of multiple businesses in Philadelphia during the summer of 2018.

This Hobbs Act robbery case charged the defendant with entering commercial businesses in North and Northeast Philadelphia during July and August of 2018. He entered each business, approached the clerk, produced a knife, and demanded money. The defendant robbed six businesses during his crime spree – including a corner store, multiple cell phone stores, and a pizza restaurant – and he pled guilty to six counts of Hobbs Act robbery in May 2019.

“The complete disregard that Smith demonstrated for the safety and well-being of others is appalling,” said First Assistant U.S. Attorney Williams. “The employees of these stores were simply doing their jobs, when Smith terrorized them just to make a few bucks. The streets are safer now that the defendant will be spending the next few years behind bars.”

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

The case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.

BIRMINGHAM – A delegation of law enforcement members from the State of Alabama, recently returned from a covert trip to Mexico and to the State of Sinaloa, home of the Sinaloa Cartel, announced U.S. Attorney Jay E. Town and DEA Assistant Special Agent in Charge Clay Morris.

“The efforts and actions of this Alabama delegation underscores the commitment and lengths to which law enforcement in the state will go to ensure the safety of its citizens and fully understand the breadth and sophistication of the enemy we face,” Town said.  “That enemy is not just the cartels. It is not just the dealers.  That enemy is also addiction and abuse.  The entire delegation owes its thanks to the DEA for making arduous coordination look effortless.”

“It is the hope and prayer of this delegation of law enforcement executives that the citizens of Alabama understand that we are steadfast in our combined efforts to keep our communities safe,” Morris said.  “Collectively, we will not tolerate the destruction drug trafficking brings to our great state. We witnessed firsthand the lengths Mexican drug cartels will go to fuel the disease of addiction.  We are resolved to do everything in our power to stem the flow drugs into Alabama.”

On September 11, 2019, a delegation of twelve federal, state and local law enforcement officials traveled to Mexico to see, hear and smell the sophistication of the illegal narcotics trade there.  The delegation was briefed in Mexico City at the highest levels.  The delegation was in country for less than 72 hours, traveled nearly 5500 total miles and was constantly under the heavily armed protection of United States and Mexican law enforcement.  The crime intelligence accumulated by the delegation was immeasurable, only countered by the amount of narcotics activity with but one primary destination…the United States. 

The overall message was clear, narcotics trafficking and production in Mexico is dominating the drug trade in the United States.  Heroin, methamphetamine, fentanyl, and even cocaine egressing from Columbia, are all being trafficked into the United States by the drug trade in Mexico.  The precursor chemicals are being sourced primarily from China, but chemists working for the cartels are unfortunately making strides sourcing the precursor materials inside of Mexico.  The profit margins for fentanyl and methamphetamine are driving the drug trade by the cartels. 

The members of the delegation were:

Jay Town – U.S. Attorney, Alabama Northern District

Louis Franklin - U.S. Attorney, Alabama Middle District                               

Richard Moore - U.S. Attorney, Alabama Southern District

Clay Morris – Assistant Special Agent in Charge, Birmingham, New Orleans Division

Sean Stephen – Group Supervisor, Birmingham, New Orleans Division

Steven Marshall, Alabama Attorney General

John Harold Taylor – Alabama Law Enforcement Secretary

Kevin Turner - Sheriff, Madison County, Alabama

Barry Matson – Executive Director, Alabama District Attorney’s Association

Nicholas Derzis – Chief of Police, Hoover Police Department

Robert Broussard – District Attorney, Madison County, Alabama

Bryan Taylor – General Counsel, Governor of Alabama

            Below is the link to the video shown at the press conference today.

law_enforcement.mp4

Download law_enforcement.mp4

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced charges against ROMANA LEYVA and ARIFUL HAQUE for participating in a conspiracy that for several years exploited elderly victims by remotely accessing their computers and convincing victims to pay for computer support services they did not need, and which were never actually provided.  In total, the conspiracy generated more than $10 million in proceeds from at least approximately 7,500 victims.  LEYVA was arrested today in Las Vegas, Nevada, and will be presented, in the District of Nevada, before Magistrate Judge Cam Ferenbach.  HAQUE was arrested this morning in Bellerose, New York, and will be presented today before Magistrate Judge Ona T. Wang in the Southern District of New York.  The case has been assigned to U.S. District Judge Paul A. Crotty.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, these defendants participated in a sophisticated fraud scheme that preyed on the elderly.  The conspirators allegedly caused pop-up windows to appear on victims’ computers – pop-up windows that claimed, falsely, that a virus had infected the victim’s computer.  Through this and other misrepresentations, this fraud scheme deceived thousands of victims, including some of society’s most vulnerable members, into paying a total of more than $10 million.”

HSI Special Agent in Charge Peter C. Fitzhugh said:  “In a fraud scheme that targeted thousands of elderly victims who were swindled out of millions, the conspirators allegedly posed as tech support to fix computers supposedly infected by malware.  It is our duty as citizens to protect our growing elderly population and it is our duty as law enforcement to investigate and arrest those, like Leyva and Haque, who seek to make a profit through fraud and deception.”

According to the Indictment unsealed in Manhattan federal court:[1]

From March 2015 through December 2018, LEYVA and HAQUE were members of a criminal fraud ring (the “Fraud Ring”) based in the United States and India that committed a technical support fraud scheme targeting elderly victims located across the United States and Canada, including in the Southern District of New York.  The Fraud Ring’s primary objective was to trick victims into believing that their computers were infected with malware, in order to deceive them into paying hundreds or thousands of dollars for phony computer repair services.  Over the course of the conspiracy, the Fraud Ring generated more than $10 million in proceeds from at least 7,500 victims.

The scheme generally worked as follows.  First, the Fraud Ring caused pop-up windows to appear on victims’ computers.  The pop-up windows claimed, falsely, that a virus had infected the victim’s computer.  The pop-up window directed the victim to call a particular telephone number to obtain technical support.  In at least some instances, the pop-up window threatened victims that, if they restarted or shut down their computer, it could “cause serious damage to the system,” including “complete data loss.”  In an attempt to give the false appearance of legitimacy, in some instances the pop-up window included, without authorization, the corporate logo of a well-known, legitimate technology company.  In fact, no virus had infected victims’ computers, and the technical support phone numbers were not associated with the legitimate technology company.  Rather, these representations were false and were designed to trick victims into paying the Fraud Ring to “fix” a problem that did not exist.  In exchange for victims’ payment of several hundred or thousand dollars (depending on the precise “service” victims purchased), the purported technician remotely accessed the victim’s computer and ran an anti-virus tool, which is free and available on the Internet.  The Fraud Ring also re-victimized various victims again.

LEYVA’s roles in the scheme included (1) creating several fraudulent corporate entities that were used to receive fraud proceeds from victims, (2) recruiting others (including through misrepresentations) to register fraudulent corporate entities that became part of and facilitated the activities of the Fraud Ring, and (3) assisting others in setting up fraudulent corporate entities and bank accounts, including coaching them to make misrepresentations to bank employees where necessary.  HAQUE registered a fraudulent corporate entity that was used to receive fraud proceeds from victims on behalf of the Fraud Ring.  HAQUE also provided guidance to a co-conspirator who registered a different fraudulent corporate entity that was part of the Fraud Ring, and deposited fraud proceeds into accounts associated with that entity.

*                *                *

LEYVA, 35, of Las Vegas, Nevada, and HAQUE, 33, of Bellerose, New York, are each charged with one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison.  The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Berman praised HSI’s El Dorado Task Force, Cyber Intrusion/Cyber Fraud Group for its outstanding work on the investigation and the NYPD for their assistance on this case.  He added that the investigation is continuing. 

This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorney Michael D. Neff is in charge of the prosecution.

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