ATLANTA - Former Gwinnett County Sheriff’s Deputy Antione Riggins, who was also a federal task-force member, has been arraigned on federal charges that he used his former position to steal cocaine and methamphetamine before the drugs could be secured in evidence, and made a series of false statements to cover up his drug theft.

“Riggins’ alleged theft of previously seized drugs is shocking,” said U.S. Attorney Byung J. “BJay” Pak.  “He also allegedly fabricated documents and made false statements to prevent the arrest and prosecution of the drug trafficking suspects from whom the drugs were seized, in an apparent effort to cover his tracks.  Riggins’s alleged actions betray the community he was sworn to protect.” 

“The allegations in this indictment are particularly disturbing because they are against a law enforcement officer,” said Special Agent in Charge Chris Hacker of the FBI Atlanta field office. “The alleged actions of this individual undermine and insult the integrity of every law enforcement officer who takes an oath to serve and protect the people in their communities.”

“As a Task Force Officer, Riggins engaged in conduct that betrayed the oath he took to faithfully serve the people of Gwinnett County.  His behavior should not take away from the outstanding work done each day by the vast majority of law enforcement professionals around the country.”  DHS OIG’s Acting Special Agent in Charge Ronnie Tippett.

“This former officer violated his oath of office and the public’s trust. Corruption within the law enforcement ranks will not be tolerated. The GBI is committed to working with local and federal partners to investigate these types of crimes to ensure the public trust of officers is upheld,” said Vic Reynolds, Director, Georgia Bureau of Investigation.

According to U.S. Attorney Pak, the charges, and other information presented in court: In 2017 and 2018, Riggins was a federally-deputized task force officer with Homeland Security Investigations (HSI), while also employed as a deputy sheriff with the Gwinnett County Sheriff's Office (GCSO).  Riggins’s duties during this time included investigating drug trafficking cases with HSI agents and other law enforcement officers.  Riggins was also responsible for assisting Gwinnett County authorities to prosecute local drug cases investigated by HSI.  In this role, Riggins was entrusted with transporting seized drugs from HSI crime scenes to the Gwinnett County evidence vault, and obtaining arrest warrants for drug traffickers.   

On February 23, 2017, an HSI investigation resulted in the seizure of three kilograms of cocaine following a high-speed car chase and crash on I-285.  HSI identified the suspected owner of the cocaine, even though he fled from the crash and was not apprehended.  HSI agents tasked Riggins with transporting the cocaine to the Gwinnett County evidence vault.  The next day, Riggins allegedly checked only one kilogram of cocaine into evidence, not three, and he failed to secure a warrant for the arrest of the cocaine trafficker. 

On July 14, 2017, an HSI investigation resulted in the seizure of approximately six kilograms of methamphetamine from an Atlanta hotel room.  An HSI agent again tasked Riggins with transporting the methamphetamine to the Gwinnett County evidence vault; however, none of the methamphetamine was subsequently checked into evidence. 

Riggins also allegedly made false documents and statements in relation to the cocaine theft, for the purpose of covering up his theft of those drugs.  In particular, the indictment alleged that Riggins created and submitted a falsified evidence form to the GCSO, Riggins presented a false court order to the Magistrate Court of Gwinnett County, and made two false statements to HSI agents, all to prevent prosecutors from discovering the missing drugs.

Riggins’s role at HSI ended in early 2018, and his employment with the GCSO ended after these alleged actions came to the attention of law enforcement.

Antione Riggins, 40, of Loganville, Georgia, was arraigned before U.S. Magistrate Judge Catherine M. Salinas.  The defendant was indicted by a federal grand jury in the Northern District of Georgia on September 24, 2019, on charges of possession with intent to distribute controlled substances, unlawfully removing property to prevent government seizure, and making false statements and documents.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

The Federal Bureau of Investigation, Department of Homeland Security - Office of the Inspector General, the Georgia Bureau of Investigation, and the Gwinnett County District Attorney’s Office are investigating this case.

Assistant United States Attorney Trevor C. Wilmot is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

STATESBORO, GA:  A third guilty plea filed in U.S. District Court this week wraps up an investigation of child pornographers.

Charles Garner Jr., 40, of Brooklet, Ga., pled guilty in U.S. District Court to one count of Production of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Previously, Richard Hunt Moore Jr., 48, of Hephzibah, Ga., and Carl Scott Ruger, 40, of Guyton, Ga., each pled guilty to one count of Production of Child Pornography.

The charge carries a minimum sentence of 15 years in federal prison and up to 30 years, along with substantial fines, restitution and asset forfeiture. After completion of their federal sentences, each will serve a period of supervised release. There is no parole in the federal system.

A fourth target in the investigation committed suicide in Illinois before questioning.

According to court documents and testimony, the investigation began when Moore was found with a minor at a motel in Augusta. After questioning Moore, Columbia County Sheriff’s Office investigators and the FBI found child pornography on electronic devices in Moore’s possession.

Garner, Ruger and the fourth target were identified during the subsequent investigation that determined the men had been involved in the exploitation of a juvenile for the production of child pornography.  

“The crimes these men committed are gut-wrenching and disgusting,” said U.S. Attorney Christine. “Our prosecutors and law enforcement partners won’t rest while a single one of these pedophile predators walks the streets. No matter what dark shadows they hide in, we will find them and drag their perverted crimes into the light.” 

“The production of child pornography is an assault against the most vulnerable members of our society,” said Special Agent in Charge Chris Hacker of the FBI Atlanta field office. “The FBI is committed to protecting our children and working with our law enforcement partners to identify and apprehend predators who carry out these atrocious crimes.”  

The cases were investigated by Homeland Security Investigations and the FBI, along with the Columbia County Sheriff’s Office and the Effingham County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys Tara Lyons and Marcela C. Mateo.

          CONCORD – Thomas Whitney, 39, of Barrington, New Hampshire, pleaded guilty in federal court to production of child pornography, United States Attorney Scott W. Murray announced today.  

          According to court documents and statements made in court, between a date unknown and September 19, 2018, Whitney produced visual depictions of a minor engaging in sexually explicit conduct using a cellular telephone.   

         Whitney is scheduled to be sentenced on January 13, 2020.

          “Protection of children is a high priority for the U.S. Attorney’s Office,” said U.S. Attorney Scott Murray.  “We will continue to work closely with the FBI and all of our law enforcement partners to safeguard young people.” 

          “Mr. Whitney is finally accepting responsibility for his heinous actions—coercing a five-year-old child into sexually explicit conduct,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI will continue to do everything in its power to stop children from being exploited and bring to justice those responsible for terrorizing them.” 

          This matter was investigated by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.           

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KANSAS CITY, Mo. – An Independence, Missouri, man pleaded guilty in federal court today to illegally selling firearms without a license, some of which have been seized during arrests at several crime scenes.

Frank E. Hedden, 25, waived his right to a grand jury and pleaded guilty before U.S. District Judge Roseann Ketchmark to engaging in the business of dealing firearms without a license.

By pleading guilty today, Hedden admitted that he sold 21 firearms to an undercover special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives for a total of $11,155 between Feb. 26 and July 16, 2019.

On May 7, 2019, investigators served Hedden with a warning notice. Investigators explained to Hedden that several firearms he purchased from licensed firearms dealers had been recovered in crimes within a relatively short amount of time after Hedden purchased them. This indicated Hedden could be re-selling them, thereby dealing in firearms without a license. Investigators further explained to Hedden that he could be prosecuted if he was buying firearms with the intent to resell them. Hedden signed an acknowledgement receipt for the Warning Notice of Unlicensed Firearms Dealing in Violation of Federal Law.

A few days later, however, Hedden met again with the undercover agent and illegally sold the agent two pistols for $1,200. During that meeting, which was recorded, Hedden told the undercover agent about the warning notice. “I don’t know if it’s anything, you know, of your or somebody else,” he said, “they said I had several firearms show up in crime scenes lately.” Hedden then added, “I knew this would happen eventually.”

The undercover agent told Hedden the firearms he purchased were going to Mexico and asked Hedden if he could obtain more AK-47 type pistols, to which Hedden responded “Yeah. So, I’ll have to figure out something … I’m going to try to figure something out cause like I said, I like doing the business, it’s nice to come into a little extra money.”

Hedden subsequently sold three more firearms to the undercover agent on two separate occasions.

On July 17, 2019, law enforcement officers executed a search warrant at Hedden’s residence and seized 33 firearms (which must be forfeited to the government). Officers also seized a red binder that contained 100 bills of sale for firearms; 18 of the documents were for firearms sold to the undercover agent, 72 of the documents were for firearms that Hedden sold to other individuals, and 10 of the documents were for firearms that Hedden purchased from other individuals.

Under federal statutes, Hedden is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on October 1, 2019, William Walter Batten, age 46, was sentenced by United States District Court Senior Judge Robert W. Pratt for Possession with Intent to Distribute Methamphetamine. Batten was sentenced to 10 years in prison, to be followed by a term of supervised release of five years.

In October 2018 Council Bluffs Police stopped a motorcycle driven by Batten and it was discovered he did not have a motorcycle endorsement or insurance. Batten was arrested and admitted he had methamphetamine in his motorcycle. A search warrant was obtained and officers located over 50 grams of methamphetamine. Batten pleaded guilty to this charge in March 2019.

This case was investigated by the Council Bluffs Police Department and the Southwest Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on September 30, 2019, Mathew William Finken, age 44, was sentenced for Possession with Intent to Distribute Methamphetamine by United States District Court Senior Judge Robert W. Pratt. Finken was sentenced to ten years in prison to be followed by five years of supervised release.

Finken was arrested by law enforcement with the Council Bluffs Police Department on January 25, 2019. At the time of his arrest, Finken was in possession of over 100 grams of methamphetamine, packaging materials and over $800. When

Finken pleaded guilty on April 15, 2019, he admitted he intended to sell the methamphetamine he had in his possession.

This case was investigated by Council Bluffs Police Department and the Southwest Iowa Narcotics Task Force. The matter was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on September 30, 2019, Jay R. Jahn, age 27, was sentenced by United States District Court Senior Judge Robert W. Pratt for Receipt of Child Pornography. Jahn was sentenced to five years in prison to be followed by a five year term of supervised release.

In July 2017, Carter Lake Police received a referral from the La Plata County Sheriff in Colorado regarding a 15 year old child who had received sexually explicit messages online from Jahn. A search warrant was obtained for Jahn’s residence, where officers located a computer and cell phone. A search of the electronic devices located images and videos of child pornography. Jahn pleaded guilty to this charge in May 2019.

This case was investigated by the La Plata County, Colorado Sheriff’s Office, Carter Lake Police Department, and Pottawattamie County Sheriff’s Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

WILMINGTON, Del.  – David C. Weiss, United States Attorney for the District of Delaware, announced today that on Monday, September 30, 2019, District Judge Richard G. Andrews sentenced Tae Kim, age 49, of Wayne, Pennsylvania, to an 18-month prison sentence for bank fraud and conspiracy to commit bank fraud.  The Court also ordered Kim to pay mandatory restitution of at least $2,459,150.49, and to serve three years of supervised release following his sentence.

Kim, a former relationship manager (loan officer) for Citibank and WSFS Bank, pleaded guilty in August 2017, to committing bank fraud in connection with loans obtained by one of his customers, Dr. Zahid Aslam.  Kim’s conduct involved allowing Aslam to use third-party nominees to obtain loans on Aslam’s behalf at Citibank and WSFS Bank.  These loans, which Aslam could not have otherwise qualified for on his own, fueled the growth of his medical practices.  Kim acknowledged that he was responsible for additional misconduct, including:  (1) submitting false information about Aslam’s available deposits at Citibank in connection with a loan application at another bank, which was eventually declined; and (2) falsifying the scope of Aslam’s liabilities in connection with multiple loans at WSFS Bank.  Aslam’s loans eventually went into default.  Aslam pleaded guilty, acknowledged making false statements to Citibank and WSFS Bank, and received a sentence of 30 months imprisonment.

In imposing sentence on Kim, Judge Andrews stated that “loan officers at banks are supposed to protect the bank’s interests and act as the first line of defense.”  Instead, defendant Kim was “working for Dr. Aslam, not the banks, when it came to Dr. Aslam’s loans.”  The Court told Kim, “This was a very rewarding relationship for you,” and that there was “a strong element of greed here.”  The Court referenced Kim’s status as a banking professional in noting that a prison sentence was important to place other bankers on notice of the consequences of committing criminal conduct during their employment.  As a result of his criminal conviction, Kim agreed to a bar from working in the banking industry.

U.S. Attorney Weiss stated the following, “We couldn’t agree more with the Court that banking professionals have a special responsibility to safeguard the interest of financial institutions in protecting depositor funds.  Here, Mr. Kim placed greed and his own financial needs over prudent banking.  His conduct resulted in significant losses to Citibank and WSFS, for which he was punished appropriately by the Court.  My Office will continue to exercise vigilance in protecting the integrity of the banking system.  I commend the hard work of the agents and prosecutors who helped bring Mr. Kim and Dr. Aslam to justice.”

"The FBI remains committed to working with our local, state and federal law enforcement partners in Delaware to protect our nation’s financial security, to include aggressively pursuing those who defraud our banking institutions,” said Special Agent in Charge Jennifer Boone of the FBI’s Baltimore Division. “This defendant abused his position as a loan officer and will now serve federal jail time for his fraudulent actions.” 

“The IRS Criminal Investigation stands ready to partner with all law enforcement agencies to combat fraud against financial institutions,” said IRS-CI Special Agent in Charge Guy Ficco. “Those considering similar behavior should be aware of the steep penalties, which often include jail time.”

The case was investigated by the FBI Baltimore Division’s Wilmington Office and the Internal Revenue Service – Criminal Investigations Division, the Federal Housing Finance Agency – Office of Inspector General, and the Federal Deposit Insurance Commission – Office of Inspector General.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that CHRISTOPHER COLLINS, who represented the 27th District of New York as a member of the U.S. House of Representatives, pled guilty to participating in a scheme to commit insider trading and to making false statements to federal law enforcement agents when interviewed about his conduct. 

U.S. Attorney Geoffrey S. Berman said:  “By virtue of his office, Christopher Collins helped write the laws of this country, but he acted as if the law did not apply to him.  Today, by pleading guilty, Collins acknowledged that while he was a member of Congress he committed insider trading and then lied to the FBI in an attempt to cover it up.  Today’s plea is a reminder that all citizens stand equal before the law in our criminal justice system.”

The following facts are based on the allegations contained in the Superseding Indictment and statements made in related court filings and proceedings:[1]

The Insider Trading Scheme

The Scheme

In or about June 2017, CHRISTOPHER COLLINS, who, in addition to serving on Innate’s Board of Directors, was also one of Innate’s largest shareholders, participated in a scheme to commit insider trading.  Specifically, on or about June 22, 2017, CHRISTOPHER COLLINS learned that MIS416 – a multiple sclerosis drug that Innate was developing – had failed a critical drug trial that was meant to determine the drug’s clinical efficacy (the “Drug Trial”).  The negative Drug Trial results were highly confidential, and, as an insider who owed duties of trust and confidence to Innate, CHRISTOPHER COLLINS was obligated to keep the Drug Trial results secret until Innate publicly released them.  Instead, in breach of those duties, CHRISTOPHER COLLINS tipped his son, Cameron Collins, who was also a substantial Innate shareholder, so that Cameron Collins could make timely trades and tip others before Innate publicly released the Drug Trial results.  Cameron Collins traded on the inside information and passed it to the father of his fiancée, Stephen Zarsky, as well as to three individuals not named in the Superseding Indictment (“Individual-1,” “Individual-2,” and “Individual-6”), so that they could utilize the information for the same purpose.  Zarsky, in turn, traded on the information and used it to tip three more individuals not named in the Superseding Indictment (“Individual-3,” “Individual-4,” and “Individual-5,”) so that they too could engage in timely trades in Innate stock.  All of the trades preceded the public release of the negative Drug Trial results.

In total, these trades allowed Cameron Collins and Zarsky, and Individual-1 through Individual-6, to avoid over $768,000 in losses that they would have otherwise incurred if they had sold their stock in Innate after the Drug Trial results became public. 

The Drug Trial Results

In or about October 2014, Innate initiated a Phase 2B clinical trial of its primary drug, MIS416.  Successful completion of the Drug Trial was a necessary prerequisite to the commercialization of MIS416.  Because Innate had no other significant products in development, its stock price was tied to the success of MIS416.

The Drug Trial was widely expected to be completed around the summer of 2017.  For example, on or about June 9, 2017, Innate’s chief executive officer (“CEO”) sent various individuals, including CHRISTOPHER COLLINS, an email stating that “the delivery date for [the] review and ‘verdict’” of the Drug Trial “will [] occur at COB on US Thursday June 22nd.”  As the summer progressed, individuals within Innate remained optimistic that MIS416’s Drug Trial results would be positive.  The initial Drug Trial results were made available by trial administrators to Innate’s CEO on June 22, 2017.  These results established that MIS416 lacked therapeutic value in the treatment of multiple sclerosis.  The results were not publicly released at that time.  Instead, they were released publicly on June 26, 2017, after the U.S. markets had closed (the “Public Announcement”).  Innate’s stock price subsequently crashed, dropping 92% on the first trading day following the Public Announcement. 

Dissemination of the Drug Trial Results

On or about June 22, 2017, at approximately 6:55 p.m., Innate’s CEO sent an email describing the Drug Trial results to the company’s Board of Directors, including CHRISTOPHER COLLINS.  The email explained to Innate’s Board of Directors for the first time that the Drug Trial had been a failure.  The email began, in part, “I have bad news to report,” and continued to explain that “the top line analysis of the ‘intent to treat’ patient population (ie every subject who was successfully enrolled in the study) would pretty clearly indicate[s] ‘clinical failure.’”  The email continued, “Top-line 12-month data . . . show no clinically meaningful or statistically significant differences in [outcomes] between MIS416 and placebo,” and concluded by stating, “No doubt we will want to consider this extremely bad news. . . .” 

At the time CHRISTOPHER COLLINS received this email, he was attending the Congressional Picnic at the White House.  At 7:10 p.m., CHRISTOPHER COLLINS replied to the email, stating, in part, “Wow.  Makes no sense.  How are these results even possible???”  After responding to the Innate CEO’s email, CHRISTOPHER COLLINS called his son, Cameron Collins.  They traded six missed calls between 7:11 p.m. and 7:15 p.m..  At 7:16 p.m., CHRISTOPHER COLLINS and Cameron Collins spoke for more than six minutes.  During that six-minute phone call, CHRISTOPHER COLLINS told Cameron Collins, in sum and substance, that MIS416 had failed the Drug Trial.

Trading and Tipping by Cameron Collins and Zarsky

Cameron Collins began placing orders to sell his Innate shares the morning after he received inside information from CHRISTOPHER COLLINS.  Between the morning of Friday, June 23, 2017 and the close of the market on Monday, June 26, 2017, Cameron Collins sold approximately 1,391,500 shares of Innate stock.  These sales allowed Cameron Collins to avoid approximately $570,900 in losses. 

Furthermore, after learning the Drug Trial results from CHRISTOPHER COLLINS, on or about the night of June 22, 2017, Cameron Collins provided the Drug Trial results to at least the following three sets of individuals so that they could trade in advance of the Public Announcement:  (1) his fiancée, Individual-1; (2) Zarsky and Zarsky’s wife, Individual-2; and (3) Cameron Collins’s friend, Individual-6.  Collectively, these individuals avoided approximately $186,620 in losses as a result of their trading on inside information. 

On or about the morning of June 23, 2017, Zarsky provided the negative Drug Trial results that he had learned from Cameron Collins and Individual-1 to at least the following individuals, among others, or otherwise caused them to trade or attempt to trade in advance of the Public Announcement: (1) his brother, Individual-3; (2) his sister, Individual-4; and (3) his longstanding friend, Individual-5.  Collectively, these individuals avoided approximately $10,900 in losses as a result of their trading on inside information.

False Statements to the FBI

On or about April 25, 2018, Special Agents from the FBI separately interviewed CHRISTOPHER COLLINS, Cameron Collins, and Zarsky.  During these interviews, and as detailed in the Superseding Indictment, CHRISTOPHER COLLINS, Cameron Collins, and Zarsky made false statements to the FBI to cover up their participation in the insider trading scheme. 

*                      *                      *

CHRISTOPHER COLLINS, 69, pled guilty to one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum penalty of five years in prison, and one count of making false statements to law enforcement officials, in violation of Title 18, United States Code, Section 1001, which also carries a maximum penalty of five years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge. 

COLLINS will be sentenced January 17, 2020. 

Mr. Berman praised the outstanding work of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Scott Hartman, Max Nicholas, and Damian Williams are in charge of the prosecution.  

The charges against Cameron Collins and Stephen Zarsky are merely accusations, and they are deemed innocent unless and until proven guilty.

PITTSBURGH, PA - A former resident of Penn Hills, Pennsylvania, pleaded guilty in federal court to a federal firearms violation, United States Attorney Scott W. Brady announced today.

Christian Burrus, 37, pleaded guilty to one count before United States District Judge Nora Barry Fischer.

In connection with the guilty plea, the court was advised that on July 23, 2018, Burrus unlawfully possessed a Ruger 9 millimeter pistol and ammunition, after having been convicted of multiple crimes punishable by more than one year in prison. Those convictions include one conviction for possession with intent to deliver a controlled substance and three convictions for firearms violations. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.

Specifically, Burrus was a passenger during a July 23, 2018 traffic stop by the Penn Hills police. During the stop, he was sweating, would not make eye contact, and appeared very nervous. After Burrus provided his name, the Penn Hills police determined that there was an active warrant for Burrus’s arrest, and while patting Burrus down incident to arrest, found the loaded, stolen firearm in Burrus’s waistband.

Judge Fischer scheduled sentencing for February 12, 2020, at 9:00 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Burrus is detained pending the resolution of the case.

Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation along with the Penn Hills Police Department conducted the investigation that led to the prosecution of Burrus. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) 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.

PHILADELPHIA – United States Attorney William M. McSwain announced that Deyao Chen, Guichun Chen, and Liangtu Pan a/k/a Liang Pan, all of the People’s Republic of China, have been charged by indictment with the following: conspiracy to import controlled substances (one count); conspiracy to distribute controlled substances (one count); and distribution of furanyl fentanyl, U-47700, and methoxyacetyl fentanyl – all powerful synthetic opioids (62 counts). In a news conference at the U.S. Attorney’s Office, U.S. Attorney McSwain addressed the charges in the indictment and highlighted broader efforts of the U.S. Attorney’s Office for the Eastern District of Pennsylvania and law enforcement to stem the tide of the opioid crisis.

The indictment alleges that from in or about April 2016 through on or about March 22, 2017, Deyao Chen, Guichun Chen, and Liangtu Pan operated through websites located in the People’s Republic of China and offered controlled substances for sale, including furanyl fentanyl, U-47700, and methoxyacetyl fentanyl. The defendants often used the same alias, “Alex,” when using these websites. Customers accessed these websites and selected the controlled substances they wanted to purchase, and the defendants directed the customers to different websites to pay for their orders.

Upon receipt of payment from the customers, the defendants emailed the customers’ orders to David Landis, charged elsewhere, who was a distributor residing in Montgomery County, Pennsylvania and a former Montgomery County Deputy Sheriff. The defendants mailed controlled substances from China to Landis in quantities sufficient to meet the orders from their internet customers. Landis would then mail the controlled substances via the United States Postal Service to customers located throughout the United States and in numerous other countries. In less than a year, Landis mailed approximately 2,900 packages of controlled substances to customers on behalf of the defendants. Landis has pleaded guilty and is awaiting sentencing.

Of the 62 distribution counts set forth in the indictment, one count alleges distribution of U-47700 to an individual which resulted in serious bodily injury. The remaining 61 distribution counts allege that the defendants distributed U-47700 and/or furanyl fentanyl to numerous individuals, including to five individuals in Georgia, Illinois, Ohio, and Tennessee who received these illegal substances and later overdosed and died with these controlled substances in their systems.

“Make no mistake: China is waging an undeclared war on our country and our American way of life, with deadly drugs serving as its weapon of choice,” said U.S. Attorney McSwain. “China is supplying the United States with the most potent and deadly fentanyl and other synthetic opioids on the market today. Today’s indictment is an important step in choking the flow of these deadly drugs into the Eastern District of Pennsylvania. International suppliers beware: you cannot hide behind a computer or evade our detection by drug trafficking from a far-away place. Even if you are halfway around the world, you will be held to account for your crimes.”

“This indictment sends a strong message to anyone connected anywhere in the world with production and trafficking of narcotics into the United States that Homeland Security Investigations and our law enforcement partners are going to hold you accountable,” said Marlon V. Miller, Special Agent in Charge of Homeland Security Investigations, Philadelphia. “Whether you’re selling fentanyl on a corner in Kensington or hiding behind a keyboard in China, Homeland Security Investigations will ensure that justice will be served.”

“The indictments announced today are the result of years of exemplary policework and collaboration at all levels of law enforcement,” said Major Douglas Burig, Director of the Pennsylvania State Police Bureau of Criminal Investigation. “The State Police will continue to work closely with our local, state, and federal partners to investigate and dismantle dangerous drug trafficking organizations that attempt to do business in Pennsylvania.”

“David Landis’ base of trafficking operations may have been Montgomery County, but his reach was global, spreading poison, misery and death far and wide. Because of traffickers like Landis, people are dying across the Commonwealth and across the country,” said Montgomery County District Attorney Kevin Steele. “I am proud to partner with United States Attorney McSwain and our other state and federal partners as we work to take down these dealers, shut down these drug pipelines and get this poison out of our communities.”

If convicted, the defendants face a maximum possible sentence of life imprisonment.

This Organized Crime Drug Enforcement Task Force (OCDETF) designated case was supported by the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (LMAHIDTA) and investigated by Homeland Security and the Pennsylvania State Police, with assistance from the following law enforcement agencies: Drug Enforcement Administration; U.S. Postal Inspection Service; United States Postal Service-Office of Inspector General; United States Secret Service; U.S. Customs and Border Protection; the Pennsylvania National Guard; Mentor-on-the-Lake Police Department, Ohio; La Vergne, Tennessee Police Department; Floyd County, Georgia Police Department; Hebron, Ohio Police Department; and the Tri-County, Illinois Drug Enforcement Task Force. It is being prosecuted by Assistant United States Attorneys Clare Putnam Pozos and Faithe Moore Taylor, and Special Assistant United States Attorney Samantha Thompson.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

GRAND JUNCTION – United States Attorney Jason R. Dunn announced that Long Luong, aka “Peter”, was sentenced yesterday to serve 84 months (7 years) in federal prison for conspiracy to manufacture and possess with intent to distribute 1000 kilograms or more of marijuana and 1000 plants or more.  The sentence was imposed by Senior U.S. District Court Judge Marcia S. Krieger, who pronounced the sentence while in Grand Junction.  Luong was also ordered to serve 5 years on supervised release and pay a $30,000 fine.  Loung appeared at the sentencing hearing in custody, and was remanded at the hearing’s conclusion. 

According to court documents, including the stipulated facts in Luong’s plea agreement, on September 18, 2016, agents from the Drug Enforcement Administration were informed of a large outdoor marijuana grow operation in Rifle, Colorado.  Agents confirmed the existence of this grow and began surveillance.  The grow was located on property owned by co-defendant Heung Yu Wong.  The next day, agents observed numerous individuals harvesting marijuana plants and loading them into a large truck.  Shortly thereafter, agents observed many of these individuals attempting to flee from the grow operation.  Agents detained a number of the individuals, including the defendant and his wife, co-defendant Guoying Tang. 

Following the execution of a search warrant at the location, agents discovered 2,420 large, mature marijuana plants.  The defendant conspired with the co-defendants, and others, to cultivate and harvest this marijuana for illegal distribution.  Despite the prior warrant, on September 20, 2017, the defendant again conspired with his wife, co-defendant Guoying Tang, and others to cultivate and harvest a large field of marijuana in southwestern Colorado.  Luong, while supervising at least five others, harvested this field and loaded it onto two large trucks.  On September 23, 2017, one of the two trucks was intercepted by law enforcement and discovered to contain a significant quantity of freshly harvested marijuana that would result in at least 50 KG of usable marijuana.  This truck was destined for a warehouse located in Grand Junction, Colorado, where Luong and others supervised the cultivation of an additional 1,034 marijuana plants and the processing of marijuana for later distribution. 

As part of the investigation, a search warrant was also executed at the defendant’s home in Grand Junction, Colorado, which he shared with his wife.  Inside the defendant’s home, agents discovered a marijuana grow containing 179 marijuana plants.  The defendant and his wife cultivated these plants for further illegal distribution.  Also located in the home, hidden in a clothes hamper in the master bedroom, agents discovered a Beretta 9mm handgun.  This handgun belonged to the defendant. 

Luong and the two co-defendants were indicted on February 27, 2018.  Luong pled guilty before Magistrate Judge Gordon Gallagher on May 21, 2019.  He was sentenced on September 30, 2019.

“The cultivation of marijuana for the black market is an issue this office and our law enforcement partners continue to aggressively pursue,” said U.S. Attorney Jason Dunn.  “The defendant will now face the consequences of growing and distributing this illegal product.”

“The DEA is committed to protecting our communities by working alongside our state and local law enforcement partners to identify and target the most significant threats to the public safety,” said Acting DEA Special Agent in Charge Deanne Reuter.  “Long Luong ran a massive illegal marijuana grow operation that flagrantly and grossly violated both federal and state law. The DEA will continue to target these large illegal grow operations that seek profit over the public well-being.”

This case was investigated by the DEA, with substantial assistance from ATF, Two Rivers Drug Enforcement Team, Western Colorado Drug Task Force, Garfield County Sheriff’s Office, Mesa County Sheriff’s Office, and Grand Junction Police Department.  The defendant was prosecuted by Assistant U.S. Attorney Jeremy Chaffin in the U.S. Attorney’s Grand Junction office.

NEWARK, N.J. – A Jersey City woman employed by the Hudson County Office of Aging today admitted accepting bribes for referring patients in need of home health care aides, U.S. Attorney Craig Carpenito announced.

Myrtha Nicolas, 61, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Katherine Hayden in Newark federal court to an information charging her with one count of extortion under color of official right.

According to documents filed in this case and statements made in court:

The Hudson County Office on Aging is an agency of the N.J. Division of Disability Services (DDS) in the Department of Human Services. The DDS works to streamline access to services and information designed to promote and enhance independent living for individuals with disabilities. Included among these services coordinated by DDS were Managed Long Term Services and Supports (MLTSS), which provide comprehensive service and support, whether for an individual living at home, in an assisted living facility, or a nursing home.

Nicolas was employed as a referral coordinator at the Hudson County Office on Aging. She exercised control over the coordination and assignment of patients with disabilities in need of home health care services to home health care companies which provide these services through home health care aides.

In June of 2016, Nicolas was approached by a confidential witness (CW), who was a self-employed executive of a home health care company that provided various services, including the training, hiring and assignment of home health care aides to patients with disabilities. Nicolas agreed to help refer patients to the CW and agreed to accept $500 dollars per patient she referred to the CW’s company.

On Aug. 4, 2016, Nicolas accepted a payment of $600 for the referral of a patient. The CW complained that the CW was forced to redirect the patient to another health care company because the patient proved difficult, prompting Nicolas to assure the CW that the CW “will get the easy ones,” in the future. On Jan. 23, 2017, Nicolas accepted another $600 cash payment for a patient referral. Nicolas confirmed that she had previously received gift cards from the CW, but expressed no preference whether future payments from the CW in exchange for patient referrals would be in cash or gift cards. On Oct. 17, 2017, Nicolas accepted a final corrupt payment of $1,000 from the CW for patient referrals, promising the CW that in terms of future patients, “whatever I have, you’ll have.”

The extortion under color of official right charge carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss. Sentencing is scheduled for Jan. 15, 2020.

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Mark J. McCarren, of the Special Prosecutions Division in Newark.

COLUMBUS, Ohio – Antwan L. Hutchinson, 28, of Columbus, was sentenced in U.S. District Court to life in prison with no chance of parole for murdering two potential witnesses and conspiring to distribute narcotics.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) and Interim Columbus Police Chief Thomas Quinlan announced the sentence imposed this afternoon by U.S. District Judge Michael H. Watson.

Hutchinson and Michael J. Favors, 27, also of Columbus, were indicted in April 2017 and charged with conspiracy to distribute and possess with intent to distribute controlled substances and murdering two potential witnesses.

According to court documents, Hutchinson led a drug trafficking organization and possessed and distributed cocaine, heroin, oxycodone and marijuana. As part of the drug conspiracy, he and Favors used “trap houses” that were in others’ names as locations to store and sell the drugs. This included using threat of force and using the homes of drug-addicted individuals.

Hutchinson also intimidated, assaulted, threatened and tortured individuals with serious physical harm who were perceived as owing money or drugs to the members of the conspiracy. Further, he tortured and killed individuals who were seen as potential witnesses against the members of the conspiracy.

As part of his plea in April 2019, Hutchinson admitted he intentionally killed Sidney Campbell and Marie Stamp in February 2017 because they were perceived as potential witnesses against the defendants.

Hutchinson also beat and tortured Cody Campbell in February 2017. Hutchinson used a two-by-four to beat and extension cords to whip Campbell, who died hours after the incident.

Pursuant to the murder charges to which Hutchinson pleaded, the defendant must be sentenced to life imprisonment without the possibility of release.

“Today Antwan Hutchinson was sentenced to life in prison for his heinous conduct,” U.S. Attorney Glassman said. “He will never be paroled, and he cannot appeal the sentence. This swift, severe, and certain punishment is appropriate for his crimes, and I hope it gives his victims’ families some sense of closure.”

U.S. Attorney Glassman commended the investigation of this case by ATF and the Columbus Police, as well as Assistant United States Attorneys David M. DeVillers and Jessica W. Knight who are prosecuting the case.

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NEWARK, N.J. – A Passaic County, New Jersey, man has been charged by indictment with kidnapping a 15-year-old girl and transporting her to Ohio, as well as with being in the United States illegally after previously being deported, U.S. Attorney Craig Carpenito announced.

Juan Carlos Morales-Pedraza, 33, of Paterson, New Jersey, was charged in a superseding indictment with one count of kidnapping, one count of transportation of a minor, and one count of re-entry of removed aliens. He was arraigned today before U.S. District Judge Stanley R. Chesler in Newark federal court and pleaded not guilty.

According to the superseding indictment:

From April 14, 2019, through April 16, 2019, the defendant unlawfully abducted “Victim 1” in New Jersey and transported her to Ohio, with the intent that she engage in sexual activity for which a person can be charged with a criminal offense. At the time of these crimes, the defendant was in the country illegally, after having been removed from the United States in 2010.

The count of kidnapping carries a maximum penalty of life in prison, a minimum penalty of 20 years in prison, and a $250,000 fine. Transportation of minors carries a maximum penalty of life in prison, a minimum penalty of 10 years in prison, a $250,000 fine, and mandatory restitution. Re-entry of removed aliens carries a maximum penalty of two years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents with FBI Newark’s Child Exploitation Human Trafficking Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie; the Passaic County Prosecutor’s Office’s Sexual Investigations Unit, under the direction of Prosecutor Camelia M. Valdes; and investigators with the Ohio State Highway Patrol and the Lake Township Police Department in Lake Township, Ohio with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime and Drug Enforcement Task Force in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty

Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark

LONDON, Ky.—The former treasurer of Jackson County, Kentucky, was sentenced today to45 months in prison followed by three years of supervised release and ordered to pay $161,808.23 in restitution for devising a multi-year scheme to defraud the Jackson County Fiscal Court of over $160,000 and for misusing the identity of a Jackson County employee to facilitate her theft.

Beth N. Sallee, 39, of McKee, Kentucky, was sentenced in the U.S. District Court for the Eastern District of Kentucky by U.S. District Judge Claria Horn Boom. Sallee pleaded guilty on Feb. 4, 2019, to one count of wire fraud and to one count of aggravated identity theft. As part of her plea, Sallee admitted that beginning in 2013, she misused her position to write a number of checks, totaling approximately $161,808.23, payable to herself without the approval of the Jackson County Fiscal Court. Sallee deposited these checks into her own personal checking account or for cash.  The unauthorized checks drew on various Jackson County Fiscal Court accounts, including the Department of Emergency Services grant, payroll, and general fund accounts. 

According to the plea agreement, in order to enable her scheme, Sallee forged the signature of other Jackson County employees on unauthorized checks without their knowledge or permission. She later attempted to conceal her scheme by removing pages of Jackson County financial documents, obscuring page numbers with white-out, and requesting the removal of check images from bank statements that were to be given to an auditor. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, United States Attorney Robert M. Duncan, Jr., for the Eastern District of Kentucky, and Special Agent in Charge James Robert Brown, Jr. of the FBI’s Louisville, Kentucky Field Division and Richard W. Sanders, Commissioner of the Kentucky State Police, made the announcement.  

“This case presents another example of a selfish and corrupt official, who stole taxpayer money and spent it on herself,” said United States Attorney Duncan. “Disgraceful conduct like this erodes the public’s faith in government institutions and causes lasting damage. Combatting these betrayals of trust is critical, both to holding people accountable and to repairing the public’s faith.  Prosecuting public corruption will remain a fundamental priority for our Office.”       

The investigation was conducted by the FBI and the Kentucky State Police. Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Andrew T. Boone of the Eastern District of Kentucky prosecuted the case.                                                    

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The Medicare Fraud Strike Force (“MFSF”) is part of a joint initiative between the U.S. Department of Justice and the U.S. Department of Health and Human Services to reduce and prevent Medicare and Medicaid fraud through enhanced interagency cooperation. Its purpose is to focus on the worst offenders in fraud, in the highest intensity regions, using data analysis techniques to identify abnormal billing levels in health care fraud “hot spots,” i.e., cities with unusually high levels of billing and other fraud.  The U.S. Department of Justice currently maintains 15 strike forces operating in 24 federal districts, and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 billion.

 The Baton Rouge MFSF is comprised of the Department of Justice Fraud Division, the United States Attorney’s Office, Department of Health and Human Services - Office of the Inspector General, Federal Bureau of Investigation, and Louisiana Attorney General’s Medicaid Fraud Control Unit.  Since 2009, the Baton Rouge MFSF has charged more than 100 defendants with health care fraud and related offenses, achieving a 96.8% conviction rate. 

As part of the two recent National Health Care Fraud Takedowns, United States Attorney Brandon J. Fremin announced new charges against 6 individuals for health care fraud in Baton Rouge.  Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office, Special Agent in Charge Bryan Vorndran of the FBI’s New Orleans Field Office (FBI), and Louisiana Attorney General Jeff Landry joined in this announcement.

Kevin Bernard Hanley and Mark Thomas Allen

In the first case, the grand jury returned an indictment charging Kevin Bernard Hanley, age 42, of Prairieville, Louisiana, with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and two counts of offering and paying kickbacks and bribes in connection with a federal health care program.  Hanley is the CFO of Acadian Diagnostic Laboratories, LLC (“Acadian”), a laboratory in Baton Rouge that conducts toxicology, blood, and genetic testing.

Mark Thomas Allen, age 51, of Greer, South Carolina, was charged with one count of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, one count of conspiracy to defraud the United States and to pay and receive health care kickbacks, and two counts of solicitation and receipt of kickbacks and bribes in connection with a federal health care program.  Allen owned Archer Diagnostics, LLC (“Archer”), a South Carolina corporation that markets medical testing services.  Allen also owned or controlled JL Management Services, LLC (“JL Management”), a Wyoming-registered corporation that purported to perform management and billing services, and also did business under the name JL Billing.

The charges stem from the defendants’ roles in a scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries, have the tests approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and submit claims through diagnostic testing laboratories that paid kickbacks in exchange for the referrals.  Allen and his co-conspirators, through companies they controlled, solicited the tests and arranged for approvals by telemedicine providers.  They then transmitted the test samples and orders to labs in Louisiana, including Acadian, where Hanley was the CFO, and elsewhere.  Acadian, through Hanley and others, paid kickbacks to companies controlled by Allen and others to obtain the referrals, and submitted claims to Medicare for the tests.  Acadian and other labs billed Medicare for more than $240 million. 

The case was investigated by HHS-OIG, FBI, and MFCU, and was brought as part of the MFSF, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.  Trial Attorneys Gary Winters, Justin Woodard and Tim Loper of the Fraud Section, and Assistant U.S. Attorney Kristen Craig of the Middle District of Louisiana are prosecuting the case.

J. Foster Chapman

In the second case, the grand jury returned an indictment charging J. Foster Chapman, age 40, of Alexandria, Louisiana, with one count of conspiracy to commit health care fraud and four counts of health care fraud. 

According to the indictment, Chapman worked for various purported telemedicine companies, for which he wrote medically unnecessary orders for durable medical equipment (DME), including knee braces, for Medicare beneficiaries.  The indictment alleges that an international telemarketing network lured Medicare beneficiaries into the scheme through call centers, and then sent the beneficiaries’ information to purported telemedicine companies.  The indictment further alleges that Chapman, working as an independent contractor for the telemedicine companies, wrote orders for DME without speaking to the beneficiaries and in the absence of any doctor-patient relationship.  Chapman concealed the fraud with falsified orders that stated, among other things, that he consulted with the beneficiaries and conducted diagnostic tests, according to the indictment.  The indictment alleges that Chapman caused the submission of over $4.8 million in fraudulent claims to Medicare. 

The case was investigated by HHS-OIG and FBI, and was brought as part of the MFSF, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.  Trial Attorney Justin M. Woodard of the Fraud Section and Assistant U.S. Attorney Kristen L. Craig of the Middle District of Louisiana are prosecuting the case.

Victor Clark Kirk and Marilyn Brown Antwine

In the third case, the grand jury returned an indictment charging Victor Clark Kirk, age 70, of Baton Rouge, and Marilyn Brown Antwine, age 51, of Baton Rouge, each with one count of conspiracy to commit health care fraud and five counts of health care fraud. 

According to the indictment, Kirk was the CEO, and Antwine was the COO, of St. Gabriel Health Clinic, Inc. (St. Gabriel), a Louisiana non-profit corporation that provided health care services to Medicaid recipients, and others.  St. Gabriel is a federally qualified health center (FQHC) that contracted with the Iberville Parish School Board to provide medical services within the school district.  As a FQHC, St. Gabriel could provide primary care services to students as well as services related to the diagnosis and treatment of mental illnesses, provided that such services were medically necessary, among other requirements.  The indictment alleges that St. Gabriel practitioners provided character development and other educational programs to entire classrooms of students during regular class periods, and then Kirk and Antwine fraudulently billed, or caused the fraudulent billing of, these programs to Medicaid as group psychotherapy.  The indictment further alleges that to facilitate the fraudulent scheme, Kirk and Antwine directed that St. Gabriel practitioners falsely diagnose students with Axis I mental health disorders.  According to the indictment, during the relevant time period, St. Gabriel’s claims for purported group psychotherapy services totaled more than $1.8 million. 

In March 2019, Michael Dan Gaines, a former licensed clinical social worker at St. Gabriel, pleaded guilty for his role in the fraud scheme. 

The case was investigated by HHS-OIG, FBI, and MFCU, and was brought as part of the MFSF, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.  Trial Attorney Justin M. Woodard of the Fraud Section and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana are prosecuting the case.  

Casonya Williams

In the fourth case, the United States filed a bill of information charging Casonya Williams, age 45, of Hammond Louisiana, with one count of health care fraud. 

According to the information, Williams worked as a registered social worker for various behavioral health service providers.  The information alleges that Williams prepared and submitted false and fraudulent progress notes and time sheets to the behavioral health service providers for services purportedly rendered to Medicaid recipients.  These fraudulent documents indicated that Williams provided behavioral health services to recipients when, in fact, the services were not provided.  According to the information, based on the fraudulent documents prepared and submitted by Williams for services not rendered, the behavioral health service providers submitted approximately over $176,000 in claims to Medicaid. 

The case was investigated by HHS-OIG, FBI, and MFCU, and was brought as part of the MFSF, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.  Trial Attorney Justin M. Woodard of the Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.  

U.S. Attorney Brandon Fremin stated, “This month marks the 10th anniversary of the Medicare Fraud Strike Force in Baton Rouge.  Strike Force teams bring together the resources of the U.S. Department of Health and Human Services-Office of Inspector General, the FBI, the Fraud Section of the U.S. Department of Justice's Criminal Division, the U.S. Attorneys' Offices, and other law enforcement agencies, including, in Baton Rouge, the Louisiana Attorney General's award-winning Medicaid Fraud Control Unit.  Over the past ten years, the team has continued working in Baton Rouge and expanded across southern Louisiana into the New Orleans area.

Just last week, the Department announced indictments in five federal districts involving fraudulent genetic cancer testing against 35 individuals for over 2.1 billion in losses in one of the largest health care fraud schemes ever charged.  The Middle District of Louisiana was among the five federal districts who brought charges in this action.

It is important to note that HCF cases require significant resources and often involve well educated suspects who engage in sophisticated criminal behavior that requires investigators and prosecutors to navigate complex and nuanced areas of federal criminal law.  Our collective success is possible because of the dedication and tenacity of the men and women charged with the responsibility of investigating and prosecuting those cases.  Here in the Middle District you have some of the best.”

“Healthcare fraud is not a victimless crime.  Whether corrupt providers engage in genetic testing schemes or other types of healthcare fraud, it’s the trust and well-being of patients and taxpayers that are at risk,” said Special Agent in Charge C.J. Porter of HHS-OIG.  “Today’s arrests demonstrate our resolve to investigate bad actors and protect the patients served by vital federal health and human services programs.”

Bryan A. Vorndran, FBI New Orleans Special Agent in Charge stated, “Throughout this case, the men and women of the FBI Baton Rouge Resident Agency, along with our federal, state, and local law enforcement partners, thoroughly investigated several health care facilities and ultimately uncovered a number of violations which are being highlighted here today.  I believe these cases demonstrate the unparalleled collaboration and dedication between all agencies represented within the Medicare Health Care Fraud Strike Force to protect Louisiana residents.”

“Medicaid welfare fraud jeopardizes healthcare resources for Louisiana’s most needy and steals from our State’s taxpayers,” said Louisiana Attorney General Jeff Landry. “My office and I will continue our efforts to root out this type of fraud and other criminal activity that drives up medical costs for everyone.”

NOTE:  A Bill of Information is an accusation by the U.S. Attorney’s Office.  The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea. 

An indictment is an accusation by the Grand Jury.  The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea. 

NEWPORT NEWS, Va. – A Suffolk man pleaded guilty today to making a false statement in a matter within the jurisdiction of the United States.

According to court documents, in November 2012, Joseph Powell, 29, was hired by Newport News Shipbuilding to be a Non-Destructive Test (NDT) Inspector, in Newport News. As an NDT Inspector, Powell performed weld inspections on vessels such as Virginia Class Submarines and Aircraft Carriers. Powell had extensive training on and familiarity with the proper protocol for types of weld inspections. To track and ensure quality control with inspections, NDT Inspectors certify their inspections using NNS’s Electronic Record System (“ERS”).  ERS falls within the jurisdiction of the United States Navy and the Department of Defense.

In June 2016, NNS received information that Powell appeared to have certified the inspection of a weld joint in ERS without conducting the requisite inspection protocol. As a result of this information, NNS initiated an inquiry/inspection. Various welds certified by Powell in ERS subsequently were investigated by NNS in June 2016, which led to the identification of additional welds that were not in acceptable condition for inspection, did not contain the required physical markings indicating an inspection had been completed, nor had residue or powder on or around the job from the inspection equipment.

Numerous NDT weld joints certified by Powell in ERS were re-inspected. The re-inspections revealed that a number of weld joints previously certified by Powell as being satisfactory were, in the opinion of the personnel who did the re-inspections, in fact, unsatisfactory, as these weld joints contained indications or defects subject to rejection, and specifically required repair by a welder. Powell agreed, for sentencing purposes, that the estimated loss to the United States attributable to his false certifications of weld inspections from in or about December 2015 through June 2016 is approximately $43,500.

Powell pleaded guilty to false statements and faces a maximum of five years in prison when sentenced on Jan. 15, 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.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, and Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorney Brian J. Samuels is 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. 4:19-cr-40.

LAREDO, Texas – A 21-year-old woman from Brunswick, Georgia, now faces up to life in prison after pleading guilty to conspiring to import a large quantity of meth into the country, announced U.S. Attorney Ryan K. Patrick.

Lidia Maria Nandi Bibiano pleaded guilty today in federal court.

On June 28, 2019, she arrived in Laredo at the Juarez-Lincoln International Bridge driving a Dodge Caravan. During inspection, law enforcement discovered 93 bundles of meth hidden inside a modified compartment in the vehicle’s floor.

The drugs weighed a total of 88.40 kilograms with an approximate value of more than $500,000.

Bibiano has been and will remain in custody pending sentencing, which will be set at a later before U.S. District Judge Diana Saldana. At that time, Bibiano faces a minimum of 10 years and up to life in prison as well as a possible $10 million maximum fine.  

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Jennifer Day is prosecuting the case.

FRESNO, Calif. — Martin Hernandez, 45, of Selma, pleaded guilty on Monday to one count of wire fraud in connection with a scheme to fraudulently obtain unauthorized Social Security benefit payments, U.S. Attorney McGregor W. Scott announced.

According to court documents, Hernandez met Social Security benefit recipients through his employment at the Social Security Administration. Hernandez recruited certain recipients to receive fraudulent payments in addition to the benefits that they were entitled to receive. These recipients agreed to return a substantial amount of the money they received from the fraudulent payments back to Hernandez. Hernandez electronically initiated the payments from his workstation at the Social Security Administration offices where he worked. After Hernandez caused the beneficiaries to receive the fraudulent overpayments, he would instruct them to meet him in person to give him cash. During the course of the scheme, Hernandez caused the Social Security Administration to make unauthorized payments of over $446,000.

This case is the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.

Hernandez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 13, 2020. Hernandez faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.