PHILADELPHIA, PA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced that the United States has filed a civil lawsuit against G & A Somerton Pharmacy LLC (“Somerton”), its owner Polina Khodak, and its pharmacist-in-charge, Inessa Lerner, alleging that they violated the False Claims Act when they knowingly billed Medicare for over $1 million worth of prescription drugs that were never actually dispensed to beneficiaries, during the period January 1, 2009 through December 31, 2015.  These medications included but were not limited to Lidoderm, Advair Diskus, Omeprazole, Solaraze, Nexium, Donepezil, Novolog, Meclizine, Lidocaine, and Januvia. 

The United States has also entered into a Stipulated Order and Consent Judgment with Somerton, Khodak, and Lerner, subject to the Court’s approval, which would resolve the matter without litigation.  If approved by the Court, the Judgment will require the defendants to pay nearly $1.3 million.  Significantly, it will also require Somerton and Khodak to agree to a 10-year healthcare exclusion, which will prohibit them from receiving payments from any federally funded health care insurer such as Medicare.  And it will require Lerner to enter into an integrity agreement, requiring her to undertake substantial compliance obligations. 

“Pharmacy fraud remains a priority for our Office,” said First Assistant U.S. Attorney Jennifer Arbittier Williams.  “Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse. Our Office will continue to scrutinize and pursue such conduct.” 

“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General.  “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayers’ dollars are only spent on bona fide medical claims.”

This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General.  For the U.S. Attorney’s Office, Assistant U.S. Attorney Deborah W. Frey, Civil Chief Gregory B. David, Auditor George Niedzwicki, and paralegal Patricia Bontempo, Certified Fraud Examiner, handled the matter.   

The complaint contains allegations only; there has been no determination of liability

NEWS RELEASE SUMMARY– September 23, 2019

SAN DIEGO – Martin Gomez of California was sentenced in federal court today to 240 months in prison for leading a conspiracy to smuggle methamphetamine, heroin, marijuana, and cell phones through a Corrections Officer into a state prison.

Gomez had previously pleaded guilty to Conspiracy to Distribute Methamphetamine pursuant to a plea agreement, after being indicted with 10 other co-conspirators.

One co-defendant, Juan Gutierrez, charged in the conspiracy remains awaiting trial, which is scheduled for January 21, 2020.  The trial was continued from May 2019 after Gutierrez struck his own attorney in open court during a status hearing just prior to his trial.

From his cell in a California state prison in Los Angeles, Gomez organized and directed a group of at least 11 other participants to smuggle contraband into a different state prison, Richard J. Donovan (“RJD”), in San Diego.  Gomez arranged for individuals outside of prison to deliver the drugs and cell phones to a Corrections Officer, Anibal Navarro.  He then instructed Navarro to collect the contraband and money, and deliver the contraband to certain inmates inside the prison.  Gomez directed those inmates to retrieve the contraband and deliver it to other inmates within RJD.

Gomez approached Navarro while an inmate at RJD, offering him an avenue to make extra money Gomez knew Navarro needed.  Navarro was paid between $1,000 and $2,000 each time he smuggled the contraband into the prison.  Even after Gomez was transferred out of RJD to another prison, Gomez led the conspiracy for over two years.  Over 500 grams of methamphetamine, heroin, cell phones, and other contraband were smuggled into RJD at Gomez’s direction while he was incarcerated elsewhere.

Gomez was able to continue coordinating and supervising the operation by conducting conference calls with Sylvia Gonzales, Gomez’s associate outside the prison, Navarro, and others.  During these calls, the conspirators arranged for narcotics, cellular telephones and cash to be delivered to Navarro at various locations in Southern California.

In addition to Gonzales, the smuggling operation was also aided by others outside the prison, including Everaldo Santana, Norma Alvarado-Medina and Vanessa Jackson.  These individuals provided Navarro with the narcotics and cellular telephones to smuggle into the prison.

After the contraband was smuggled into the prison, RJD inmates Agustin Aceves, Juan Gutierrez, John Price, Jeremy Gaither and Hugo Alvarado received and distributed the narcotics and cellular telephones to other inmates.  The phones were used to coordinate criminal activity both inside and outside the facility.

“This defendant personally profited from a corrupt drug smuggling scheme that significantly interfered with the rehabilitation of his fellow inmates,” said U.S. Attorney Robert S. Brewer, Jr.  “He also created a dangerous prison environment by providing cell phones, which can result in drug trafficking, fraud, and even violence.  This sentence signals that justice does not stop at the prison gate; those who engage in prison corruption will face significant consequences.”

With the exception of Gutierrez, Gomez’s codefendants have all pleaded guilty.  They have been sentenced as follows.

Sylvia Gonzales was convicted of Conspiracy to Commit Honest Services Wire fraud, and sentenced to five years’ probation.

Everaldo Santana was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to time-served, with three years’ supervised release.

Agustin Aceves was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 151 months incarceration, to run 50% concurrent and 50% consecutive to his state case, followed by five years’ supervised release.

Norma Alvarado-Medina was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 41 months, with three years’ supervised release to follow.

John Price was convicted of Conspiracy to Distribute Methamphetamine and Heroin, and was sentenced to 51 months incarceration, to run 50% concurrent and 50% consecutive with his state case, followed by four years’ supervised release.

Vanessa Jackson was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 30 months, to be followed by four years of supervised release.

Hugo Alvarado was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to 18 months to run concurrent with his state sentence, with three years of supervised release to follow.

Edgar Arreguin was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to time served with three years’ supervised release.

The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).

DEFENDANTS                                                     Case No. 17cr0446-AJB                                                  

MARTIN GOMEZ                                         Age 58            Lancaster Prison

SYLVIA GONZALES                                     Age 59            Sylmar, California

EVERALDO SANTANA                                Age 27            Los Angeles, California

AGUSTIN ACEVES                                      Age 45            Lancaster Prison

NORMA ALVARADO-MEDINA                    Age 36            Al Monte, California

JUAN GUTIERREZ                                      Age 44            Vacaville, California

JOHN PRICE                                              Age 23            Salinas Valley Prison

VANESSA JACKSON                                   Age 42            Pasadena, California

JEREMY GAITHER                                      Age 35            Valley State Prison

HUGO ALVARADO                                     Age 27            High Desert Prison

EDGAR ARREGUIN                                     Age 44            Lemon Grove, California

DEFENDANTS                                                     Case No. 16cr1664-AJB                                                  

ANIBAL NAVARRO                                    Age 40             Chula Vista, California

SUMMARY OF CHARGES

Conspiracy to Distribute Illegal Narcotics – Title 21, U.S.C., Sections 841(a) and 846

10-year mandatory minimum

Maximum penalty: Life in prison and $20,000,000 fine

AGENCY

Federal Bureau of Investigation – San Diego Field Office

California Department of Corrections and Rehabilitation’s Office of Internal Affairs

California Department of Corrections and Rehabilitation’s Investigative Service Unit

United States Postal Service – Inspector Service

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

LONDON, Ky.- A Flat Lick, Kentucky man, Jerry “Rabbit” Cox, 70, admitted to drug trafficking in federal court on Monday.

Cox pled guilty to distributing a quantity of pills containing oxycodone and hydrocodone, before U.S. Magistrate Judge Hanly A. Ingram. Cox admitted to selling oxycodone 30 mg pills to an informant on April 17, 2018, from his residence in Knox County, and hydrocodone pills from his business in Knox County on April 26, 2018.                       

Cox was indicted in June 2019.

Robert M. Duncan Jr., U.S. Attorney for the Eastern District of Kentucky, Daniel Dodds, acting Special Agent in Charge, DEA Louisville Field Division, and Commissioner Richard W. Sanders, Kentucky State Police, jointly announced the guilty plea.

The investigation was conducted by the Drug Enforcement Administration and the Kentucky State Police. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jason D. Parman. 

A sentencing date has not yet been set. He faces up to 20 years in prison and a maximum fine of $1 million. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

— END —

ALBANY, NEW YORK – Luis Curet, age 34, of Ellenville, New York, pled guilty today to his involvement in a drug trafficking organization that operated in Ulster County. 

The announcement was made by United States Attorney Grant C. Jaquith; Angel M. Melendez, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); Ulster County District Attorney Holley Carnright; New York State Police Superintendent Keith M. Corlett; and Village of Ellenville Police Chief Philip Mattracion.

Curet admitted that between November and December 2018, he operated a stash house, and assisted in the distribution of crack cocaine and heroin laced with fentanyl to street dealers on behalf of the organization. 

Curet faces at least 5 years and up to 40 years in prison, a term of supervised release of at least 4 years and up to life, and a maximum fine of $5 million.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors

The following defendants have also pled guilty in connection with the conspiracy, and face the following penalties:

The following defendants still face charges in this case, and face the following penalties:

Naveo is also charged with unlawful possession of a Mossberg shotgun as a previously convicted felon.

The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.

This case is being investigated by HSI, the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County, and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

ALBANY, NEW YORK – Jay Scott Cloutier, age 56, of Lyman, Maine, was charged today with attempting to entice and coerce a minor into committing criminal sex acts and traveling in interstate commerce for the purpose of meeting a minor for sex.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

According to a criminal complaint, Cloutier used a social networking and online dating application, text messages and phone calls to attempt to entice and coerce an individual whom he believed to be a 14- or 15-year-old boy to engage in various sexual acts with him, and he traveled from Maine to Colonie, New York, with the motivating purpose of engaging in such sexual acts with the boy.  The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

Cloutier appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, and was detained pending further proceedings.

If convicted, Cloutier faces a mandatory minimum of 10 years and up to life in prison on the enticement charge and up to 30 years in prison on the traveler charge, a fine of up to $250,000, per charge, and a term of post-imprisonment supervised release of at least 5 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced Raul Burden, a 27-year-old resident of Baton Rouge, Louisiana, to 60 months in federal prison following his conviction of possessing a firearm by a convicted felon.  The Court further sentenced Burden to 3 years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.

According to admissions made as part of his guilty plea, on December 24, 2018, EMS dispatchers received three 911 calls reporting shots being fired outside of an apartment complex located on Manson Drive in Baton Rouge.  East Baton Rouge Parish Sheriff’s deputies responded to the scene.  Upon arrival, deputies identified Burden from the emergency calls and ordered him to remove his hands from his pockets and place them on his head.  Burden did not comply.  When deputies again ordered Burden to remove his hands, he threw the firearm away from himself.  The firearm, a Charter Arms “Off Duty” .38 special caliber revolver, was recovered at the scene. 

Prior to possessing the firearm, Burden was convicted of intimidating, impeding, or injuring witnesses in May 2009, in East Baton Rouge Parish and attempted introduction of contraband at a municipal or parish prison or jail in October 2015, in Ouachita Parish.

U.S. Attorney Fremin stated, “This office remains committed to upholding the rule of law by investigating and prosecuting convicted felons, such as this defendant, who illegally possess firearms.  I want to commend the East Baton Rouge Sheriff’s Officers whose rapid response to an unsafe situation resulted in a dangerous criminal being disarmed.  I also want to thank my prosecutor, as well as the ATF, and the East Baton Rouge Sheriff’s office for their work in this case. Notably, I would like to recognize the members of the community who had the courage to dial 911 and report the incident which allowed first responders to quickly respond and make a lawful arrest.”

“This individual disregarded both the law and the safety of others,” stated ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn.  “The sentence imposed today sends a strong message to criminals that they will be held accountable for their actions.”

“The East Baton Rouge Sheriff’s Office is committed to working with all of our local, state and federal counterparts to get dangerous criminals with weapons off the streets of our community,” Sheriff Sid Gautreaux said. “We are grateful for the U.S. Attorney’s Office’s commitment to prosecute these cases on the federal level to ensure the continued safety of our community.”

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, with assistance from the East Baton Rouge Parish Sheriff’s Office.  The case is being prosecuted by Assistant United States Attorney Kristen Craig.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ANDREI TYURIN, a/k/a “Andrei Tiurin,” pled guilty in Manhattan federal court to computer intrusion, wire fraud, bank fraud, and illegal online gambling offenses in connection with his involvement in a massive computer hacking campaign targeting U.S. financial institutions, brokerage firms, financial news publishers, and other American companies.  These hacks included one of the largest thefts of customer data from a U.S. financial institution in history.  TYURIN is charged with committing these crimes with Gery Shalon, a/k/a “Garri Shalelashvili,” a/k/a “Gabriel,” a/k/a “Gabi,” a/k/a “Phillipe Mousset,” a/k/a “Christopher Engeham”; Joshua Samuel Aaron, a/k/a “Mike Shields”; and Ziv Orenstein, a/k/a “Aviv Stein,” a/k/a “John Avery,” in furtherance of securities market manipulation, illegal online gambling, and payment processing fraud schemes perpetrated by Shalon, Aaron, Orenstein, and their co-conspirators.  TYURIN pled guilty before U.S. District Judge Laura Taylor Swain. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Andrei Tyurin’s extensive hacking campaign targeted major financial institutions, brokerage firms, news agencies, and other companies.  Ultimately, he gathered the customer data of more than 80 million victims, one of the largest thefts of U.S. customer data from a single financial institution in history.  With today’s plea, Tyurin’s global reign of computer intrusion is over and he faces significant time in a U.S. prison for his crimes.”

According to the allegations contained in the Indictments to which TYURIN pled guilty, other filings in this case, and statements made during court proceedings, including TYURIN’s guilty plea hearing:

From approximately 2012 to mid-2015, TYURIN engaged in an extensive computer hacking campaign targeting financial institutions, brokerage firms, and financial news publishers in the U.S., including the theft of personal information of over 100 million customers of the victim companies.  TYURIN’s hack of one financial institution headquartered in Manhattan resulted in the theft of personal information of over 80 million customers, making it one of the largest theft of customer data from a U.S. financial institution in history.  TYURIN engaged in these crimes at the direction of Shalon and in furtherance of other criminal schemes overseen and operated by Shalon and his co-conspirators, including securities fraud schemes in the United States.  For example, in an effort to artificially inflate the price of certain stocks publicly traded in the U.S., Shalon and his co-conspirators marketed the stocks in a deceptive and misleading manner to customers of the victim companies whose contact information TYURIN stole in the intrusions.

In addition to the U.S. financial sector hacks, TYURIN also conducted cyberattacks against numerous U.S. and foreign companies in furtherance of various criminal enterprises operated by Shalon and his co-conspirators, including unlawful internet gambling businesses and international payment processors.  Nearly all of these illegal businesses, like the securities market manipulation schemes, exploited the fruits of TYURIN’s computer hacking campaigns.  Through these various criminal schemes, TYURIN, Shalon, and their co-conspirators obtained hundreds of millions of dollars in illicit proceeds.

*                *                *

TYURIN, 35, of Moscow, Russia, pled guilty to one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to violate the Unlawful Internet Gambling Enforcement Act, which carries a maximum sentence of five years in prison; and one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison.  In addition, TYURIN pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 30 years in prison; and one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years prison, which was transferred from the Northern District of Georgia for purposes of his plea. 

TYURIN is scheduled to be sentenced by Judge Swain on February 13, 2020.

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

Mr. Berman praised the investigative work of the FBI and the U.S. Secret Service, and expressed his sincere gratitude to the Chief Prosecutor’s Office of Georgia and the Ministry of Justice of Georgia for their support and assistance with the extradition proceedings.  He also thanked the Securities and Exchange Commission, Homeland Security Investigations, the Financial Industry Regulatory Authority, the Office of International Affairs of the U.S. Department of Justice for its assistance with the extradition, and the Financial Services Information Sharing and Analysis Center, which significantly aided the investigation by facilitating information-sharing among the victim institutions.

The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Eun Young Choi, Noah Solowiejczyk, and Sarah Lai are in charge of the prosecution.

ALBANY, NEW YORK – Luis Curet, age 34, of Ellenville, New York, pled guilty today to his involvement in a drug trafficking organization that operated in Ulster County. 

The announcement was made by United States Attorney Grant C. Jaquith; Angel M. Melendez, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); Ulster County District Attorney Holley Carnright; New York State Police Superintendent Keith M. Corlett; and Village of Ellenville Police Chief Philip Mattracion.

Curet admitted that between November and December 2018, he operated a stash house, and assisted in the distribution of crack cocaine and heroin laced with fentanyl to street dealers on behalf of the organization. 

Curet faces at least 5 years and up to 40 years in prison, a term of supervised release of at least 4 years and up to life, and a maximum fine of $5 million.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors

The following defendants have also pled guilty in connection with the conspiracy, and face the following penalties:

The following defendants still face charges in this case, and face the following penalties:

Naveo is also charged with unlawful possession of a Mossberg shotgun as a previously convicted felon.

The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.

This case is being investigated by HSI, the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County, and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

ALBANY, NEW YORK – Jay Scott Cloutier, age 56, of Lyman, Maine, was charged today with attempting to entice and coerce a minor into committing criminal sex acts and traveling in interstate commerce for the purpose of meeting a minor for sex.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

According to a criminal complaint, Cloutier used a social networking and online dating application, text messages and phone calls to attempt to entice and coerce an individual whom he believed to be a 14- or 15-year-old boy to engage in various sexual acts with him, and he traveled from Maine to Colonie, New York, with the motivating purpose of engaging in such sexual acts with the boy.  The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

Cloutier appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, and was detained pending further proceedings.

If convicted, Cloutier faces a mandatory minimum of 10 years and up to life in prison on the enticement charge and up to 30 years in prison on the traveler charge, a fine of up to $250,000, per charge, and a term of post-imprisonment supervised release of at least 5 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

         GRAND RAPIDS, MICHIGAN - Richardo Leodoro Urbina, 58, of Muskegon, Michigan was sentenced to serve 480 months in the Federal Bureau of Prisons for sex trafficking three minors; attempting to sex traffic three more minors; conspiring to sex traffic minors; sex trafficking an adult by force, fraud, or coercion; distributing cocaine and cocaine base; and conspiring to distribute cocaine and cocaine base. U.S. District Judge Janet T. Neff also imposed a lifetime period of supervised release and $40,000 in fines.

          In sentencing Urbina, Judge Neff stated that it is "difficult to find offenses more serious than these" and that this case "is among the most serious the Court has ever seen." Judge Neff also noted the "depravity of the methods Urbina used to recruit young girls and control them to make money for himself."

          On May 14, 2019, Urbina was found guilty after a six-day jury trial. Over the course of trial, the jury heard from 10 girls about Urbina’s sexual exploitation of them while they were minors. The jury learned that in May of 2015, Urbina—then 54—recruited and pimped high-school aged girls. He located his victims by befriending high schoolers, who identified the most vulnerable girls they knew. Urbina targeted runaways who needed money and a place to stay. He gave them alcohol and cocaine to make it more likely they would agree to "dance" or give "massages" to men Urbina arranged for them to meet. The girls only learned the men expected them to have sex after they were alone with the johns. Urbina kept half the money the johns paid.

          The jury also heard from one woman who Urbina sex trafficked after learning she needed a place to stay. He originally offered to help her by letting her live with him. The first night she stayed with Urbina, he forced her to have sex with a john for money. She lived with Urbina for about six months. He kept all of the money johns paid her and gave her narcotics instead. When she tried to leave, Urbina said she owed him $1,000 and had to pay it in order to be released. She had no money to pay and eventually escaped with the help of a john.

          Urbina has an extensive criminal history, including three felony assault convictions, three larceny convictions, two felony drug convictions, a witness intimidation conviction, and a perjury conviction.

          In announcing the sentence, U.S. Attorney Birge stated, "Urbina targeted the most vulnerable victims he could find—girls, many one-third his age, who thought they had nowhere else to turn. The 40-year sentence he received today should serve as a warning to others looking to engage in sex trafficking of minors in West Michigan."

          "The perpetrator in this case used physical violence, fear, and coercion to further the sexual exploitation of his victims," stated Steven M. D’Antuono, Special Agent in Charge of the FBI Detroit Field Office. "Our investigation in this case through the West Michigan Based Child Exploitation and Human Trafficking Task Force, in conjunction with our local and state partners demonstrates that combating sex trafficking and violence in our communities is of the highest priority for the FBI."

          The West Michigan Based Child Exploitation Task Force (WEBCHEX) investigated Urbina. The investigation included members of the FBI, Michigan State Police, Kent County Sheriff’s Office, and Ottawa County Sheriff’s Office. The case was tried by Assistant U.S. Attorneys Alexis M. Sanford and Davin M. Reust.

          This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.

END

Bangor, Maine:  United States Attorney Halsey B. Frank announced that Donald Morang, a/k/a “DW,” 39, formerly of Augusta, Maine, was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr., to two years in prison and three years of supervised release for conspiracy to distribute heroin; cocaine base, commonly known as “crack;” and fentanyl.   Morang pled guilty on October 17, 2018.

According to court records, between June 2015 and March 2017, Morang conspired with others to acquire heroin and crack in Rochester, New York and to distribute it in Central Maine. The defendant assisted the head of the conspiracy, Darrell Newton, and other dealers Newton sent from Rochester to distribute the drugs in Central Maine. He facilitated drug deals, introduced Rochester conspirators to area distributors, and assisted other conspirators in finding residences from which to sell drugs. He also dropped off drugs and picked up proceeds from residences in Central Maine. 

The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department. This case was prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.

PITTSBURGH, PA - A resident of Monongahela, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.

Eric Allard, age 48, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.

In connection with the guilty plea, the court was advised that, on November 27, 2017, Allard possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.

Judge Ambrose scheduled sentencing for March 17, 2020 at 10 a.m. The law provides for a maximum sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.

Homeland Security Investigations, with the assistance of the Monongahela Police Department, conducted the investigation that led to the prosecution of Allard.

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

PITTSBURGH - A resident of Portersville, PA, pleaded guilty in federal court to a charges of conspiracy to distribute cocaine, crack cocaine, and heroin, United States Attorney Scott W. Brady announced today.

Raymond Chrzanowski, age 51, pleaded guilty to three counts before Senior United States District Judge Arthur J. Schwab.

In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Raymond Chrzanowski and his co-conspirators cooked powder cocaine into crack cocaine and conspired to distribute quantities of crack cocaine and heroin.

Judge Schwab scheduled sentencing for February 27, 2020 at 9:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.

Pending sentencing, the court continued the defendant’s bond.

Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi are prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Raymond Chrzanowski.

The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

Orlando, Florida – United States Attorney Maria Chapa Lopez announces that brothers Salvatore Esposito (47, Orlando) and Joseph Esposito (43, Orlando) have agreed to plead guilty to an Information charging them with conspiracy to commit wire fraud and mail fraud. Each faces a maximum penalty of 20 years in federal prison. Their initial appearances and change of plea hearings have been scheduled for October 2, 2019.

According to court documents, the Espositos operated U.S. Coin Bullion, a local Orlando company formed in 2012. From 2014 to July 2019, the Espositos engaged in a conspiracy to defraud U.S. Coin Bullion’s customers. Instead of using the customers’ funds to purchase precious metals as had been promised, the Espositos caused U.S. Coin Bullion to use customer funds to pay other customers, to pay commissions and other business expenses, and to purchase silver for the company itself. 

U.S. Coin Bullion used its customers’ funds to purchase silver on “margin,” or “leverage,” by which it acquired an interest in the silver by paying only a portion of its full price. The company took out loans to purchase the silver on margin and then used more customer funds to pay the interest associated with those loans, as well as storage fees for the silver. And, because it was buying on margin, U.S. Coin Bullion was subject to “margin calls”; if the market price for silver declined, the company might immediately have to deposit more (customer) funds into its accounts to maintain its interest in the silver.

U.S. Coin Bullion never told its customers that their funds were being used in this way. By at least 2016, it was regularly using its customers’ funds to buy millions of dollars worth of silver. When the price for silver fell from more than $35 an ounce (in 2012) to less than $15 an ounce during the conspiracy, the company experienced massive losses and had to spend customer funds due to margin calls.

To cover up U.S. Coin Bullion’s losses, the Espositos provided customers with false account statements making it appear that the company had purchased the silver for the customers (not itself) and that their accounts maintained value despite any drop in the market price of silver. Ultimately, U.S. Coin Bullion’s margin purchases resulted in a loss of nearly all the market value of the silver that its customers believed they had purchased and held.

An information is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

To date, the United States Secret Service has identified more than 120 victims who have been defrauded as a result of this conspiracy, with total losses of over $7.9 million. A dedicated email address (USCB-Victims@usss.dhs.gov) has been established for victims to provide victim impact statements and any other information related to their losses.  

This case was investigated by the U.S. Secret Service, with assistance from the Florida Attorney General's Office of Citizen Services – Consumer Assistance Program which has provided invaluable assistance with the victims. This case is being prosecuted by Assistant United States Attorney Roger B. Handberg.

PROVIDENCE – Family Dollar Stores of Rhode Island, LLC has agreed to a Settlement Agreement with the United States, under which it is required to undertake steps to review, identify, and address accessibility issues inside and outside of all 29 stores located in Rhode Island to bring them into compliance with the American with Disabilities Act (ADA), announced United States Attorney Aaron L. Weisman.

The company will also pay a civil penalty to the United States.

This agreement follows an investigation by the United States Attorney’s Office under Title III of the ADA, which prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation. Although it is a private entity, Family Dollar Stores are places of “public accommodation” within the meaning of Title III of the ADA.

The United States’ investigation determined that Family Dollar stores in Rhode Island were not being maintained to ensure sufficient access for persons with disabilities, including access to accessible parking spaces, front entrances, and store aisles. The investigation was prompted by complaints to the United States Attorney’s office by persons with disabilities who use mobility aids, such as wheelchairs and walkers.

According to the Settlement Agreement, Family Dollar Stores of Rhode Island, which cooperated fully with the investigation, has agreed to ensure that its employees will not place merchandise, shopping carts, boxes, and/or any other items in areas of its facilities, including both inside and outside of its stores, where such placement reduces or eliminates accessibility; will hire or designate an employee to serve as an ADA Coordinator with sufficient training and authority to undertake meaningful efforts to ensure that all Family Dollar Stores are in compliance with the Agreement; and within 60 days all regional, district and store managers and employees will undergo complete training regarding Title III of the ADA.

Additionally, Family Dollar Stores of Rhode Island has agreed to pay the United States government a civil penalty of $7,500 and to remedy all violations within six months.

This matter was litigated by Assistant U.S. Attorney Amy R. Romero.

The U.S. Attorney’s Office for the District of Rhode Island is committed to investigating alleged violations of the Americans with Disabilities Act.  Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, visit the web site of the United States Attorney’s Office for the District of Rhode Island at www.justice.gov/usao-ri/civil-rights-enforcement, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TTY).  Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm..

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TOPEKA, KAN. B A soldier stationed at Fort Riley was charged in federal court here today with sending over social media instructions for making bombs, U.S. Attorney Stephen McAllister said.

Jarrett William Smith, 24, Fort Riley, Kan., was charged with one count of distributing information related to explosives and weapons of mass destruction.

Smith, a private first class infantry soldier, joined the Army June 12, 2017, and was transferred to Fort Riley, Kan., on July 8, 2019. According to an FBI investigator’s affidavit, Smith said on Facebook he was interested in traveling to the Ukraine to fight with a paramilitary group called the Azov Batallion.

During a Facebook chat, Smith offered to teach other Facebook users to make cell phone explosive devices “in the style of the Afghans.” On Aug. 19, 2019, Smith told an undercover investigator he was looking for “radicals” like himself. Smith talked about killing members of Antifa and destroying nearby cell towers or a local news station. On Aug. 21, Smith told an undercover investigator about how to make a vehicle bomb. When the investigator commented that most of the components were household items, Smith said: “Making AK47s out of expensive parts is cool, but imagine if you will if you were going to WalMart instead of a gun store to buy weapons.”

Smith also described in detail to the undercover investigator how to build a bomb that could be triggered by calling a cell phone.

“Be very careful with the fully armed device,” Smith warned the investigator.

If convicted, Smith could face up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting. 

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

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NEWPORT NEWS, Va. – A federal jury convicted a Newport News man late yesterday on charges of Hobbs Act robbery and possession of a firearm in furtherance of a crime of violence.

According to court records and evidence presented at trial, Antoine Dion Harris, aka “Fattwan,” 31, robbed a Hampton ABC Liquor Store in February 2019. Harris walked into the store, picked up a bottle of Hennessey liquor from the shelf, and before the victim could ring up the purchase, Harris pulled out a black handgun, pointed it at the victim and told her that she had 30 seconds to give him all of her money before he began counting down. The victim complied with Harris’s demands and Harris ultimately got away with $88 and the bottle of Hennessey.

Harris faces a mandatory minimum of seven years and a maximum of life in prison when sentenced on Jan. 14, 2020. 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, Terry L. Sult, Chief of Hampton Police Division, and Steve R. Drew, Chief of Newport News Police, made the announcement after Senior U.S. District Judge Rebecca Beach Smith accepted the verdict. Special Assistant U.S. Attorney Kristen S. Taylor and Assistant U.S. Attorney Peter G. Osyf 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. 4:19-cr-65.

United States Attorney Erica H. MacDonald announced a federal criminal complaint against RAY GHANSHAM PERSAUD, 20, for calling in bomb threats to the University of St. Thomas in St. Paul, Minnesota.^[1] PERSAUD was arrested this morning and will make his initial appearance today at 2:00 pm before Magistrate Judge David T. Schultz in U.S. District Court in Minneapolis, Minnesota.

According to the allegations in the criminal complaint and law enforcement affidavit, on April 17, 2019, PERSAUD called the University of St. Thomas in St. Paul, Minnesota and said there was a bomb on campus, specifically mentioning McNeely Hall. PERSAUD called the University of St. Thomas three times that morning making bomb threats. As a result, the University evacuated and closed its entire St. Paul campus, including a child care center located in one of the buildings. The FBI determined that the calls came from a Voice Over Internet Protocol, or “VOIP,” telephone number serviced by TextMe, an app that allows users to have multiple telephone numbers. On August 20, 2019, PERSAUD again called the University of St. Thomas via TextMe and said there was a bomb in the John Roach Center, a classroom building on the St. Paul campus, which was subsequently evacuated and closed for the day. On September 7, 2019, PERSAUD called the University of St. Thomas again, through a different VOIP app, and stated that there were bombs in the O’Shaughnessy Science Center, the John Roach Center, the Anderson Student Center, and the Facilities Design Center. All four buildings were subsequently evacuated. Investigators were able to trace the origin of the September 7, 2019, calls to PERSAUD’s home address in Blaine, Minnesota.

This case is the result of an investigation conducted by the FBI and the Saint Paul Police Department.

This case is being prosecuted by Assistant U.S. Attorney John Docherty.

Defendant Information:

RAY GHANSHAM PERSAUD, 20

Blaine, Minn.

Charges:

• Using an instrumentality of interstate commerce to make a threat to kill, injure, or intimidate any individual, and to damage or destroy any building, by means of fire and explosive, 1 count 

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

Abingdon, VIRGINIA – Two members of a drug distribution organization that trafficked methamphetamine, heroin, oxycodone, cocaine, and other drugs from Georgia into Southwest Virginia were recently found guilty following a five-day jury trial in federal court on drug conspiracy charges, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.

Roy Lee Dykes, 51, of Watkinsville, Ga., formerly of Big Stone Gap, Va., was convicted of one count of conspiracy to possess with the intent to distribute and distributing 50 grams or more of methamphetamine, in addition to cocaine, heroin, alprazolam, and oxycodone.  Dykes was also convicted of 17 counts of distributing and possessing with intent to distribute controlled substances on a number of specific dates.  At sentencing, Dykes faces a mandatory minimum sentence of imprisonment of 10 years and a maximum statutory penalty of up to life in prison and/or a fine of up to $10 million.

Leila Varetta “Rita” Hector-Dykes, 57, of Watkinsville, Ga., was also convicted of one count of conspiracy to possess with the intent to distribute and distributing 50 grams or more of methamphetamine, in addition to cocaine, heroin, alprazolam, and oxycodone.  Hector-Dykes was also convicted of one count of distributing and possessing with intent to distribute controlled substances.  At sentencing, Hector-Dykes faces a mandatory minimum sentence of imprisonment of 10 years and a maximum statutory penalty of up to life in prison and/or a fine of up to $10 million.

“Methamphetamine trafficking is currently the greatest threat to public safety in far Southwest Virginia,” U.S. Attorney Cullen stated today.  “We will continue to collaborate with our federal, state, and local partners to identify individuals responsible for distributing large quantities of this deadly substance and put them in federal prison.”  

“This organization trafficked large amounts of crystal ice into Southwest Virginia.  We appreciate the partnership with the U.S. Attorney’s Office and federal, state, and local law enforcement to crack down on those who transport dangerous drugs into the Commonwealth for distribution,” Virginia Attorney General Herring said today.  “Reducing the availability of crystal methamphetamine and other drugs in Southwest Virginia is a high priority for my office.  We appreciate the hard work and dedication of our law enforcement partners and will continue to aggressively prosecute those who endanger the lives of our citizens.” 

In all, 11 individuals were charged as part of this drug trafficking conspiracy.  All 11 defendants have now been convicted.  Dykes and Hector-Dykes are scheduled for sentencing on December 19, 2019.      

According to evidence presented at trial, these defendants conspired to traffic a variety of controlled substances, including methamphetamine, heroin, cocaine, morphine, oxycodone, and alprazolam, from sources in Watkinsville, Georgia, into Southwest Virginia for redistribution.  The organization operated primarily in Lee and Wise counties from November 2016 through March 1, 2018.  Arrests on March 1, 2018, resulted in the seizure of approximately 11 ounces of crystal ice methamphetamine, in addition to heroin, cocaine, morphine, and oxycodone, with an estimated street value of $28,000.  Currency totaling approximately $14,000 was also seized from the defendants on that day. 

The investigation stemmed from another drug trafficking conspiracy arising out of Lee County, Virginia, involving seven defendants, all of whom have been convicted and sentenced.  Another four defendants, including Dykes and Hector-Dykes’ sources of supply, were also identified and prosecuted during the course of these investigations.  In total, these investigations have led to the successful prosecution of 22 defendants and removed a conservative estimate of 3.5 pounds of crystal ice methamphetamine from the supply chain in Southwest Virginia. 

The investigation of this case was conducted by the Southwest Virginia Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Numerous agencies assisted with search warrant executions and arrests on March 1, 2018, to include the Drug Enforcement Administration, Big Stone Gap Police Department, Lee, Wise, and Scott County Sheriff’s Departments, City of Norton Police Department, and the U.S. Marshals.  Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Kari Munro prosecuted this case at trial for the United States. 

LAS VEGAS, Nev.– A Las Vegas businessman who pleaded guilty to committing a $28 million tax fraud conspiracy was sentenced today to three years in federal prison, announced United States Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.

Ramon Desage, 69, was charged by a second superseding indictment on February 11, 2014. On August 31, 2018, Desage pleaded guilty to one count of conspiracy to defraud the United States as charged in the second superseding indictment.

Today, in addition to the prison term, United States District Judge Jennifer A. Dorsey ordered Desage to pay $28,221,767 in restitution to the IRS and sentenced him to three years of supervised release upon his release from prison.

Desage admitted as part of his plea that, from about January 1, 2006, through about October 20, 2010, he conspired with his bookkeeper, co-defendant Gary Parkinson, and tax preparer, co-defendant Peter Akaragian, to cause fraudulent federal income tax returns to be filed for himself and his entities for tax years 2006, 2007, 2008, and 2009. According to court documents, Desage omitted tens of millions of dollars in income from his returns and created false business deductions to further avoid paying his income taxes. The false deductions that Desage and his co-conspirators claimed in the returns reclassified personal expenses as business expenses. Thus, they claimed fraudulent deductions for luxury car purchases, houses, jewelry, repayment of millions in gambling debts, private plane air travel, home improvements, and lavish gifts for Desage’s girlfriends and acquaintances. Desage’s outstanding tax due was approximately $28.2 million for tax years 2006 through 2009.

Akaragian pleaded guilty and was sentenced in October 2018, and Parkinson is scheduled to begin a jury trial in January 2020.  The charges against Parkinson merely are allegations and he is presumed innocent unless and until proven guilty.

The case was investigated by IRS-Criminal Investigation. Assistant United States Attorney Patrick Burns prosecuted the case.