SAVANNAH, GA:  A Savannah doctor who operated a “pill mill” dispensing massive amounts of controlled substances – sometimes in return for cash or sex – has been sentenced to 20 years in federal prison.

Dr. Frank H. Bynes Jr., 69, of Savannah, was sentenced to 240 months in federal prison by U.S. District Court Judge Lisa Godbey Wood, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Bynes, who was found guilty in October 2019 by a federal jury on 13 counts of Unlawful Dispensation of Controlled Substances and three counts of Health Care Fraud, also was ordered to pay restitution of $615,145.06 to Medicare, Medicaid and Tricare, and after completion of his prison sentence must serve three years of supervised release. There is no parole in the federal system.

“Frank Bynes poured gasoline on the raging fire of the opioid addiction crisis in our country,” said U.S. Attorney Christine. “He destroyed the lives of countless individuals and deservedly will swap his white coat for a prison jumpsuit.”

According to court testimony and documents, Bynes worked at the MBA Community Clinic in Savannah, a/k/a MBA Diabetic Shoe and Supply Store, and at Georgia Laboratory Diagnostic in Garden City, where he wrote prescriptions for more than 1,800 patients. An estimated 51,329 pharmacy fills were attributed to Bynes during a three-year period in Georgia alone, totaling in excess of 4.6 million doses of pills, opioid patches and other controlled substances.

Many of the prescriptions were part of the so-called “holy trinity” drug cocktail of opioids, alprazolam and Soma, and were provided to patients who Bynes knew were drug-addicted. According to evidence introduced at trial, Bynes prescribed the deadly drug cocktail to Medicare patients at a higher rate than any other physician in the United States.

While operating his illegal pill mill, Bynes falsely claimed to work for the Department of Justice and displayed a fake police badge to intimidate patients. Bynes also frequently used his ability to write prescriptions to exploit female patients and coerce them into providing sexual favors. Among other evidence introduced at trial were documents establishing Bynes knew multiple patients suffered an overdose – yet he disregarded numerous warnings and continued to prescribe the drug cocktail on which his patients had overdosed. In addition, Bynes defrauded Medicaid, Medicare and Tricare, resulting in excess of $2 million in fraudulent pharmacy claims.  

“Dr. Bynes’ actions are despicable and contributed to the opioid crisis we are experiencing in our state and nation,” said Georgia Attorney General Chris Carr. “He placed his selfishness over the needs of his patients, and with this sentence, I hope that the many people he harmed can find some closure and begin the healing process.”

Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration (DEA) Atlanta Field Division commented, “Complicit doctors like Dr. Bynes, who ran a pain clinic, often prey on patients who are addicted to prescription drugs. This defendant dispensed addictive prescription drugs under the guise of a stethoscope and white coat, when in actuality, he was nothing more than a common drug trafficker. This successful investigation was a direct result of hard work put forth by all law enforcement agencies involved and the subsequent prosecution by the U.S. Attorney’s Office. This doctor will now serve a lengthy prison term.”

“Dr. Bynes is going from operating a pill mill to living in a prison cell. Justice was well-served today,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “This substantial and warranted sentence ensures that Frank Bynes will no longer be the menace to society he once was.”

“The opioid addiction crisis in this country also touches the military and their families,” stated Special Agent in Charge Cynthia A. Bruce, DCIS, Southeast Field Office. “Dr. Bynes took advantage of his military patients who were struggling with addiction for his own personal pleasure and financial gain. DCIS, in partnership with this U.S. Attorney’s Office, will aggressively pursue individuals who seek to harm our military members and their dependents.”

“Like law enforcement, medical professionals take an oath. And like the vast majority many of the professionals take their oaths seriously,” said Everett Ragan, Director of the Chatham-Savannah Counter Narcotics Team. “Unfortunately, there are those like Dr. Bynes who go against their oath for personal gain. Doing so simply made Dr. Bynes a drug dealer in a white coat. What’s worse is Dr. Bynes’ actions negatively impacted the opioid epidemic. I am proud to say that our agency played a huge role in bringing down this monster.” 

The U.S. Attorney’s Office and its law enforcement partners are actively investigating the pharmacies who filled illegitimate prescriptions from Dr. Bynes, including previously announced criminal and civil prosecutions of Chip’s Discount Drugs, Fulghum Drug’s Inc., Darien Pharmacy, and others. Pharmacists are required under federal law to ensure that a prescription is written for a legitimate medical purpose and must refuse to fill those that are not legitimate. Any individuals who have information about illegal prescribing by physicians, dispensing by pharmacies, or other diversion, and any individuals who believe they were victims of Bynes, should call the U.S. Attorney’s Office at (912) 652-4422 and ask for the Opioid Coordinator.

The case was investigated by the DEA, HHS-OIG, DCIS, the Georgia Medicaid Control Fraud Unit, and CNT, and prosecuted for the United States by Assistant U.S. Attorneys J. Thomas Clarkson and Matthew Josephson, with assistance from Litigation Technologist Dean Athanasopoulos and Jim Mooney, Deputy Director of the Georgia Medicaid Control Fraud Unit and Special Assistant U.S. Attorney.

The Office of the United States Attorney for the District of Vermont stated Jafet Rodriguez, 39, of Hazleton Pennsylvania, has been charged with unlawfully smuggling tropical birds into Vermont from Canada, in violation of the Endangered Species Act and the federal anti-smuggling statute. 

Rodriguez appeared before United States Magistrate Judge John Conroy on February 13, 2020 and was released on personal recognizance. The next hearing in the case is a preliminary hearing scheduled for February 28, 2020. 

According to court documents, the Government alleges that on December 30, 2019, at 10:30 A.M., the defendant walked across the Canadian border near the Haskell Free Library in Derby Line, Vermont and approached a car parked in Stanstead, Quebec. According to the Government’s allegations, the defendant retrieved a black duffle bag containing the birds from the vehicle parked in Quebec and then walked back into the United States. United States Border Patrol Agents intercepted Rodriquez after he entered another vehicle (with Pennsylvania license plates) in Derby Line, Vermont. The agents recovered seven live tropical birds from this vehicle. 

According to court records, the National Fish and Wildlife Forensics Laboratory determined that five of the birds were Yellow-headed Amazons (Amazona oratrix) and two birds were White-bellied Parrots (Pionites leucogaster). These birds are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (commonly referred to as “CITES”). Under the Endangered Species Act, species which are protected under CITES cannot be imported without the appropriate permits. The birds were turned over to the U.S. Department of Agriculture and transported to the New York Animal Import Center in Rock Tavern, New York for a period of quarantine. 

The United States Attorney emphasizes that the charges contained in the Criminal Complaint are merely accusations and that the defendant is presumed innocent unless and until proven guilty. If he is convicted, Rodriguez faces a maximum possible term of imprisonment of 20 years under the statute prohibiting the unlawful smuggling of merchandise into the United States. If convicted, the defendant’s actual sentence would be informed by the advisory Sentencing Guidelines. 
            
This matter is being investigated by the U.S. Border Patrol and Homeland Security 
Investigations with assistance from the U.S. Fish and Wildlife Service. The case is being prosecuted by Assistant U.S. Attorney Joseph Perella. Rodriguez is represented by David McColgin of the Federal Public Defender’s Office in Burlington, Vermont.       
    
The following photographs were contained in the Government’s Criminal Complaint Affidavit filed with the Court on January 28, 2020: 
 

Surveillance photograph of alleged taking custody of duffel bag containing birds.

4 yellow-headed amazon parrots inside an animal carrier.

Yellow-headed amazon parrot inside a cardboard box.

INDIANAPOLIS – United States Attorney Josh J. Minkler announced today, Tarik Dordoni, 24, and Xavier Malone, 22, both of Kokomo, Ind., were indicted in separate complaints for unlawful possession of a firearm by a convicted felon. Dordoni was also charged with possession with intent to distribute marijuana and possession of a firearm during a drug trafficking crime. Both had previous felony convictions in Howard County Ind.

"My office has no tolerance for individuals who choose to break the law by selling drugs and illegally possessing firearms," said Minkler. "The U.S. Attorney’s Office is committed to reducing gun violence through its Project Guardian initiative. We are grateful to our collaborative partners, the Kokomo Police Department and Bureau of Alcohol Tobacco Firearms and Explosives who investigated and brought this to our attention."

At around 7:00 p.m. on Sept. 2, 2019, Kokomo Police received a call about shots fired near Studebaker Park in Kokomo, Ind. The suspect vehicle was described as a red pickup truck with black stripes. As officers were arriving to the area of the shooting, they saw a vehicle matching the description. Law enforcement initiated a traffic stop on the vehicle and once the vehicle came to a stop, Malone and Dordoni jumped from the vehicle and fled on foot. Malone was apprehended by officers shortly after he fled.

Kokomo Police K-9 located Dordoni inside a shed located in the backyard of a residence. The K-9 also located a backpack which contained a large bag of suspected marijuana and a loaded handgun.

Kokomo Police Department received a call that a handgun had be located in a yard. The location was close to the area of the shooting and along the route of where the red pickup truck fled. Law enforcement collected the firearm and other evidence from the yard.

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

"The Kokomo Police Department appreciates our Federal law enforcement partners at the ATF," said Kokomo Police Department Captain Tonda Cockrell. "KPD is diligently investigating crimes involving the use of firearms in our community, especially those cases where children are placed in harm’s way. We will utilize our partnership with Federal Law Enforcement and the AUSA to ensure maximum penalties are sought for those individuals who choose to bring gun violence to the streets of Kokomo."

According to Assistant United States Attorney Lawrence D. Hilton who is prosecuting this case, Tarik Dordoni faces a maximum of life imprisonment if convicted. Xavier Malone faces a maximum sentence of 10 years if convicted.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Kokomo Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.

An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proved otherwise in federal court.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to targeting the District’s most violent geographic areas for the adoption of reactive federal drug and firearm prosecutions. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.2.

          CONCORD –Tharushan Nirmalachandran, 30, of Ile-Bizard, Quebec, was sentenced to 15 months in federal prison for participating in a conspiracy to commit bank fraud, United States Attorney Scott W. Murray announced today. Nirmalachandran faces likely removal to Canada after the completion of his prison sentence.

          According to court documents and statements made in court, in April 2019, Nirmalachandran, Syed Hoque, and Ajitharan Raveendran, conspired with others to withdraw money from other persons’ bank accounts by using cloned debit cards at ATMs.  A “cloned” debit card is a gift card or other type of card that has been re-encoded to contain other persons’ debit card information.  Blank credit and debit or gift cards can be encoded with stolen credit and debit card information using an “MSR” or “Magnetic Stripe Reader” machine.  An MSR machine can read and write the information stored in the magnetic stripe on the back of credit and debit cards. 

           On Friday, April 26, 2019, a witness reported to the Hudson Police Department that a man later identified as Hoque drove his car through an ATM in Hudson, New Hampshire, several times to make withdrawals.  The Hudson Police responded and found Hoque in his car at the ATM. The officer saw that Hoque was holding a cell phone that was displaying several sets of numbers on the screen and saw a large amount of cash on the front passenger seat of his car and several ATM or credit cards on the center console. 

          A search of Hoque’s phone revealed text messages in an application called “WhatsApp” from the weekend of April 24 through 26, 2019.  One group message chain from April 26, 2019, showed members of the conspiracy coordinating their activities as they withdrew money from  ATMs with the cloned debit cards.

          The trio was operating out of a hotel room in Methuen, Massachusetts.  Hotel surveillance video showed that, early in the morning on April 27, 2019, Nirmalachandran and Raveendran carried large duffle bags out of their hotel room.  Investigators later found duffle bags during a search of Nirmalachandran’s car that contained (i) a portable MSR machine; (ii) 103 Visa, American Express, and MasterCard gift cards, 96 of which contained cloned debit card information; (iii) over $51,000 United States currency; and (iv) a Hewlett Packard laptop computer.  A later search of the computer revealed text files that contained over 170 debit card numbers.

          In total, from April 25, 2019, through April 27, 2019, members of the conspiracy successfully withdrew at least $43,980.00 and attempted to withdraw an additional $69,900.00 from other people’s bank accounts using cloned debit cards. 

          Nirmalachandran previously pleaded guilty on November 4, 2019.   In addition to his prison sentence, Nirmalachandran was ordered to pay $$43,980.  The defendants in the case also have been ordered to forfeit over $61,000. 

          Hoque pleaded guilty December 13, 2019 and is scheduled to be sentenced on April 1, 2020.

          Raveendran pleaded guilty on November 14, 2019 and will be sentenced on February 28, 2020.

            “Those who commit bank fraud cause serious damage by stealing money from their victim’s bank accounts, driving up business costs, and undermining confidence in the banking system,” said U.S. Attorney Murray.  “We will not hesitate to seek federal prison sentences for those who attempt to steal hard-earned money from innocent victims.  I am grateful to the law enforcement officers whose excellent work led to this successful prosecution.”

            “The U.S. Secret Service appreciates the coordination between local, federal and international partners.  This cooperation is crucial when investigating trans-national criminal organizations that operate under the assumption they will not be detected in another country,” said Timothy Benitez, Resident Agent in Charge of the U.S. Secret Service, Manchester Resident Office.

             This matter was investigated by the United States Secret Service, with assistance from the Hudson and Methuen Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Matthew Hunter.

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FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Diego Garcia Lua, 61, of Orange Cove, charging him with cultivating marijuana and maintaining a drug-involved premises, U.S. Attorney McGregor W. Scott announced.

According to court documents, Lua used his orange orchard to disguise the presence of approximately 6,305 marijuana plants he was growing there.

This case is the product of an investigation by the Tulare County Sheriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorneys Kathleen A. Servatius and Katherine E. Schuh are prosecuting the case.

If convicted, Lua faces a maximum statutory penalty of life in prison and a $10 million fine on count one and a 20-year maximum penalty and $250,000 fine on count two. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

NORFOLK, Va. – A previously convicted child sex offender was sentenced today to 25 years in prison for producing images of child sexual abuse.

According to court documents, Lavelle Mayfield, 55, of Portsmouth, is a registered sex offender, having been previously convicted of several criminal sexual assaults against minors. The victim in this case, Jane Doe, 16, met Mayfield at church and developed a sexual relationship with him. At one point, Jane Doe ran away to stay with Mayfield. During that time, Mayfield produced numerous sexually explicit images and videos of Jane Doe.

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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Angela Greene, Chief of Portsmouth Police, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.

The Chesapeake Police Department provided significant assistance to this investigation.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-92.

ALEXANDRIA, Va. – A North Carolina man was sentenced today to 15 years in prison for trafficking methamphetamine, cocaine, and firearms without serial numbers, also known as “ghost guns”, from North Carolina to Virginia.

According to court documents, Flavio Lopez Garcia, 27, trafficked over 140 grams of methamphetamine, over 57 grams of cocaine, and seven firearms from North Carolina to Virginia. Five of the firearms were “ghost guns”, as they did not have serial numbers or other identifying markers. Two additional firearms destined for Virginia were recovered during Garcia’s arrest in North Carolina. After bringing the contraband over state lines, Garcia sold the items in a combined drug and gun trafficking scheme in exchange for profit.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Mark Herring, Attorney General for Virginia; and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney/Assistant Attorney General Karolina Klyuchnikova prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-319.

United States Attorney Erica H. MacDonald today announced the guilty pleas of MICHAEL JACOB BLANDFORD, 28, and MATTHEW JON LEIGLAND, 26, to one count each of possession with intent to distribute methamphetamine. BLANDFORD and LEIGLAND, who were initially charged on April 26, 2019, entered their guilty pleas before Judge Nancy E. Brasel in U.S. District Court in St. Paul, Minnesota.

According to the defendants’ guilty pleas and documents filed with the court, BLANDFORD and LEIGLAND admitted to traveling from the White Earth Indian Reservation to the Twin Cities to purchase methamphetamine from a source and bring it back to the Reservation to distribute. On March 18, 2019, in Motley, Minnesota, a Minnesota State Trooper conducted a traffic stop of a vehicle for speeding and for having loud exhaust. BLANDFORD was identified as the driver and LEIGLAND was identified as the lone passenger. During the stop, the State Trooper observed drug paraphernalia and BLANDFORD showed signs of recent drug use. When asked to step out of the vehicle, BLANDFORD fled on foot and tossed an item out of his pocket, which was later found to be approximately 10 grams of methamphetamine. The State Trooper apprehended BLANDFORD and placed him in custody. A subsequent search of the vehicle revealed a methamphetamine smoking device, used razor blades, a small digital scale, two measuring cups, and a gallon Ziploc bag containing approximately 480 grams of methamphetamine.

This case was the result of an investigation conducted by the West Central Minnesota Drug & Violent Crimes Task Force, the Becker County Sheriff’s Office, the Minnesota State Patrol, the Motley Police Department, and the FBI Headwaters Safe Trails Task Force.

Special Assistant U.S. Attorney Gina L. Allery prosecuted the case.

Defendant Information:

MICHAEL JACOB BLANDFORD, 28

Monticello, Minn.

Convicted:

• Possession with intent to distribute methamphetamine, 1 count

MATTHEW JON LEIGLAND, 26

Ponsford, Minn.

Convicted:

• Possession with intent to distribute methamphetamine, 1 count

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

PITTSBURGH – Darren Martin was sentenced to 27 months in federal prison for conspiring to distribute cocaine and fentanyl, United States Attorney Scott W. Brady announced today.

Martin, age 31 of Aliquippa, Pennsylvania, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan also sentenced Martin to serve three years of supervised release upon his release from prison.

Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.

The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.

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.

CHARLESTON, W.Va. –  Defendants in three separate Project Guardian cases appeared in federal court this week announced United States Attorney Mike Stuart. 

Bari Myricks, 47, of Dunbar, was sentenced to 96 months in prison for possession with intent to distribute 40 or more grams of fentanyl and for being a felon in possession of a firearm.  Myricks previously admitted that on May 7, 2018, the vehicle he was driving was stopped by law enforcement officers due to a traffic violation.  He further admitted that after a police K-9 trained in drug detection indicated narcotics were present in his vehicle, police conducted a search of his vehicle, finding heroin in a plastic bag.  Officers with the Metropolitan Drug Enforcement Network Team (MDENT) later searched Myricks’ residence on Roxalana Road, finding over 100 grams of fentanyl, marijuana, over $12,000 in cash and two firearms.  Myricks knew he was prohibited from possessing the firearms due to prior felony convictions.  MDENT conducted the investigation.  Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing.   Assistant United States Attorney Andrew J. Tessman handled the prosecution.

Clayton Cato, 36, of Brooklyn, New York, was sentenced to 24 months in prison for possessing a firearm as a convicted felon.  On November 20, 2018, Cato was a passenger in a vehicle that was stopped on the East End of Charleston for a defective light. Upon officers approaching the vehicle, they smelled marijuana. All occupants were asked to step out of the vehicle. Cato stepped out of the vehicle and ran from the traffic stop on foot. While fleeing, he put his hands near his hoody pocket and was apprehended. During a pat-down for officer safety, officers located a Smith & Wesson 32 caliber pistol. Cato admitted he knew he was prohibited from possessing a firearm because of a 2003 felony conviction for distribution of cocaine base.  The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department conducted the investigation.   United States District Judge Joseph R. Goodwin presided over the hearing.  Assistant United States Attorney Ryan A. Saunders handled the prosecution.

Brashan Beverly, 32, of Dunbar, pled guilty to being a felon in possession of a firearm.  Beverly admitted that on January 3, 2019, he possessed a firearm, that is a SCCY, Model CPX-2, 9mm semi-automatic pistol, in Tornado, Kanawha County, West Virginia. At the time he possessed the firearm, he knew he was prohibited from possessing firearms because of a prior drug conviction. Beverly faces up to 10 years in prison when sentenced on May 11, 2020.  The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kanawha County Sheriff’s Department, and the Nitro Police Department conducted the investigation.   United States District Judge Robert C. Chambers presided over the hearing.  Assistant United States Attorneys Ryan A. Saunders and Joseph F. Adams are handling the prosecution.

These cases are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted these cases with support from the Project Guardian partners referenced above.  For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.            

Follow us on Twitter:SDWVNewsand USAttyStuart

 
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Geoffrey S. Berman, United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent in Charge of the New York Field Office of the Department of Homeland Security Investigations (“HSI”), Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), and Dennis Rosen, New York State Medicaid Inspector General (“OMIG”), announced the unsealing of a Complaint charging thirteen defendants with participating in a scheme to steal millions of dollars from New York State’s Medicaid program through fraudulent claims related to transportation services.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, these defendants exploited and abused Medicaid, billing millions of dollars for phantom medical transportation services.  Medicaid is intended to provide financial assistance to those in need.  These defendants allegedly treated the Medicaid program that pays for medical transport as an opportunity to steal from Medicaid, which is indirectly stealing from American taxpayers.  Now they face prosecution for their alleged crimes.”

HSI Special Agent in Charge Peter C. Fitzhugh said:  “It is alleged that these individuals schemed to defraud the Medicaid program out of millions of dollars, in turn robbing all those who rely on it for their vital healthcare needs.  More than a dozen were involved in this plan to charge for services not rendered, and HSI working with its law enforcement partners arrested those who sought to make a profit at the expense of those in need and will continue to do so.”

HHS-OIG Special Agent in Charge Scott J. Lampert said:  “Millions of people in New York depend on Medicaid for vital services, and taxpayers across the country pay for that care.  We will continue close cooperation with our State and Federal law enforcement partners to preserve this essential funding.”

NYS Medicaid Inspector General Dennis Rosen said:  “Today’s arrests send an unmistakable message to those who seek personal gain by preying upon vulnerable New Yorkers and exploiting the Medicaid program.  My office will continue to work closely with our federal partners to protect Medicaid recipients, save taxpayer dollars, and hold wrongdoers fully accountable.”

As alleged in the criminal Complaint unsealed today:[1] 

From in or about August 2017 to February 2020, KJ Transportation C Services Inc. (“KJ”) was paid more than $20 million for providing transportation services for Medicaid enrollees in the New York City area.

JORGELINA ABREU GIL, 32, of Yonkers, New York, is the owner of KJ.  Her husband, JULIO ALVARADO, 59, of Yonkers, is a manager at the company.  Beginning in August 2017, KJ began submitting claims to Medicaid for purported medical transportation services for eligible people in the New York area.  From August 2017 to February 2020, KJ submitted more than 100,000 claims related to hundreds of thousands of trips.  However, a large percentage of those claims were fraudulent.  In some instances, the Medicaid recipient was deceased or out of the country when KJ claimed it was transporting that person to medical appointments.  In other instances, the Medicaid recipient had never heard of KJ and had never taken any rides with the company.  In yet other instances, the Medicaid recipient had received unlawful “kickbacks” from defendants in exchange for either giving KJ his/her Medicaid information, or for fraudulently scheduling trips he/she did not take.

In hundreds of instances, defendants called Medicaid’s transportation management company for the New York City area and scheduled trips on behalf of Medicaid enrollees.  On these calls, the defendants tried to schedule reoccurring trips several times per week that would go on for months, allowing them to bill dozens of trips to Medicaid without having to schedule each trip individually.  In other instances, defendants scheduled trips online.  ABREU GIL attested to nearly all of the trips, fraudulently certifying that the trips actually took place when, in fact, most did not.

HECTOR SALAZAR HERRERA, 27, of the Bronx, New York, ZORAIDA GONZALEZ, 44, of Yonkers, New York, YESENIA RODRIGUEZ,  37, of Yonkers, JOSE RIVERA, 26, of the Bronx, FABIAN MORGAN, 39, of the Bronx, VICTORIA PALMA BREA, 32 of the Bronx, CRISTOPHER SANTOS FELIX, 28, of the Bronx, JOHN MANUEL MEJIA, 41, of the Bronx, JOSE JIMENZ HIDALGO, 42, of the Bronx, FRANCISCO SALAZAR, 68, of the Bronx, and NELSON DIAZ, a/k/a “Abdul Alamin,” 56, of the Bronx, acted as “drivers” or “recruiters” of Medicaid enrollees.  As detailed in the Complaint, the defendants variously paid Medicaid enrollees to schedule fraudulent trips, paid unlawful kickbacks to Medicaid enrollees, and fraudulently scheduled trips that never took place.  In exchange for their work, the “drivers” or “recruiters” were paid up to hundreds of thousands of dollars.

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ABREU GIL, ALVARADO, GONZALEZ, RODRIGUEZ, RIVERA, MORGAN, PALMA BREA, MEJIA, JIMENEZ HIDALGO, SALAZAR, and DIAZ were arrested this morning and will be presented later today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court.  SANTOS FELIX was already in federal custody on unrelated charges and will be presented at a later date.           

ABREU GIL, ALVARADO, SALAZAR HERRERA, GONZALEZ, RODRIGUEZ, RIVERA, MORGAN, PALMA BREA, SANTOS FELIX, MEJIA, JIMENZ HIDALGO, SALAZAR, and DIAZ are each charged with one count of submitting false claims, in violation of 18 U.S.C. § 287; one count of theft of government funds, in violation of 18 U.S.C. § 641; one count of aggravated identity theft, in violation 18 U.S.C. § 1028A; one count of wire fraud, in violation of 18 U.S.C. § 1343; one count of health care fraud, in violation of 18 U.S.C. § 1347; one count of conspiracy to commit wire fraud and health care fraud, in violation of 18 U.S.C. § 1349; and one count of violating the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b.  In addition, ABREU GIL and ALVARADO are each charged with one count of money laundering, in violation of 18 U.S.C. § 1957.

The crime of submitting false claims carries a maximum sentence of five years in prison. The crimes of theft of government funds, health care fraud, money laundering, and violating the Anti-Kickback Statute each carry a maximum sentence of 10 years in prison. The crime of wire fraud carries a maximum sentence of 20 years in prison.  The crime of aggravated identity theft carries a mandatory two 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 defendants will be determined by a judge.

On February 14, 2020, law enforcement officers also executed seizure warrants in an effort to recover millions of dollars in fraud proceeds obtained by the defendants.

Mr. Berman praised the outstanding work of HSI, HHS-OIG, and OMIG.  He also thanked the City of Yonkers Police Department, the New York City Police Department, the New York Attorney General’s Medicaid Fraud Control Unit, and United States Customs and Border Protection for their assistance in the case.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorney Kedar S. Bhatia is in charge of the prosecution.

SAN FRANCISCO – Paul Marshall Bodner was arrested on charges related to sex tourism in Vietnam, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King.  In an indictment filed on January 30, 2020, and unsealed yesterday, a federal grand jury charged Bodner with repeatedly traveling to Vietnam in order to engage in illicit sexual conduct.  

According to the indictment, Bodner, 64, of San Francisco, Calif., traveled to Vietnam during the period from July 2015 through August 2016, where he engaged in illicit sexual conduct.  The indictment also states that Bodner traveled to Vietnam in March and July 2016 for the purpose of engaging in illicit sexual conduct.  According to information presented to the court at his initial appearance on February 13, 2020, Bodner met Vietnamese boys as young as 11 or 12 years old and engaged in sex acts with them at a hotel located in Ho Chi Minh City when he traveled to Vietnam.  

The indictment charges Bodner with three counts of travel with intent to engage in illicit sexual conduct, in violation of 18 U.S.C. § 2423(b); and one count of engaging in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(c).

Bodner was arraigned in federal court before the Honorable Joseph C. Spero, U.S. Magistrate Judge.  Judge Spero scheduled a hearing for today, February 14, 2020, to determine Bodner’s detention status pending trial. 

Anyone with information about Bodner or his alleged sexual interest in children should contact the HSI Tip Line at 1-866-DHS-2-ICE and ask to be directed to the case agent.   

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  If convicted on the charges in the indictment, the defendant would face for each count a maximum sentence of 30 years imprisonment, a life term of supervised release, and a fine of $250,000, plus restitution if appropriate.  However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 

Assistant U.S. Attorney Lina Peng is prosecuting the case with the assistance of Morgan Byrne.  The prosecution is the result of an investigation by HSI.

CHICAGO — A sales agent for a Chicago-area red-light camera company has been indicted for allegedly conspiring to pay bribes to obtain approval to install additional cameras in suburban Oak Lawn.

PATRICK J. DOHERTY, 64, of Palos Heights, is charged with one count of conspiracy to use an interstate facility to facilitate bribery, and two counts of using an interstate facility to facilitate bribery.  The indictment was returned Thursday in U.S. District Court in Chicago.  An arraignment date has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Christopher J. Stetler, Tiffany A. Ardam and James P. Durkin.

According to the indictment, Doherty worked as a sales agent for the red-light camera company that since 2014 had a contract with Oak Lawn to provide cameras at certain intersections.  Renewal of the contract and installation of cameras at additional intersections required approval from Oak Lawn’s Board of Trustees, the indictment states. 

The charges allege that in 2017 Doherty conspired with an individual with a financial interest in the red-light camera company and another sales agent of the company to pay money to a relative of an elected Oak Lawn Trustee to influence the Trustee into using his official position to approve installation of cameras at additional intersections.  The conspirators agreed to pay the relative a total of approximately $4,000 over an eight-week period, the indictment states.  In order to conceal the purpose of the payments, the conspirators agreed that Doherty would make the payments from a separate company, the indictment states.

In a telephone conversation on May 25, 2017, Doherty told the other sales agent that Doherty would pay the Trustee’s relative “if it’s going to get us the job,” according to the indictment.  Doherty allegedly added, “I’ll just pay it.  Just make sure we get the, make sure we get the [expletive] thing, the contract.”

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

Each count in the indictment is punishable by up to five years in prison.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

SAN JOSE – Johnny Magdaleno, a/k/a Soldier Boy, Rodney Luis Romero, a/k/a Speedy, and Carlos Cervantes, a/k/a Lil Huero, a/k/a Doug, pleaded guilty today to racketeering conspiracy charges for their respective roles as associates of the Nuestra Familia prison gang, announced United States Attorney David L. Anderson and John F. Bennett, Special Agent in Charge of the Federal Bureau of Investigation’s San Francisco Field Division.  The guilty pleas were accepted by the Honorable Beth L. Freeman, United States District Judge.

According to the plea agreements, between December 2, 2012, and April 14, 2014, Magdaleno, 32, Romero, 35, and Cervantes, 31, were members of the Nuestra Familia/Salinas Norteños enterprise (the “Enterprise”).  The Enterprise consisted of members and associates of the Nuestra Familia prison gang as well as Norteño street gangs in Salinas, Calif., and the surrounding areas.  Members and associates of the Enterprise agreed to commit crimes such as murder, narcotics trafficking, and other acts of violence through a pattern of racketeering activity.  Norteño gang members pledge their allegiance and loyalty to Nuestra Familia and are instructed on its rules, rituals, and obligations.  Gang rules and discipline are maintained by assaulting and threatening those individuals who violate the rules or pose a threat to the organization.  Inside prisons and local jails, all members and associates of Nuestra Familia and Norteños work together to maintain the structure and follow the rules of the Enterprise.

In their plea agreements, Magdaleno, Romero, and Cervantes admit to participating in the distribution of narcotics to other inmates at Monterey County Jail.  The plea agreements also describe the roles of the defendants in “removals” as a means of violently enforcing the most important of the gang’s rules while they were in the jail.  The term “removal” refers to a violent attack designed to remove (from both the custodial housing unit and the gang itself) a member of the gang who committed a serious violation of the gang’s rules.  A removal is accomplished by having one or more “hitters” stab the victim and then having at least two “bombers” assault the target by punching and kicking the victim without weapons.  The purpose of the subsequent beating is to inflict upon the victim maximum damage while giving the hitters time to wash themselves and get rid of weapons. 

Magdaleno admitted that he orchestrated four removals of victims from housing units of the Monterey County Jail and directly participated in two of those removals as the hitter.  For example, Magdaleno admitted that he orchestrated and participated as the hitter in the December 2, 2012, removal of a victim from the jail.  Magdaleno admitted that he stabbed the victim in the chest and back over 20 times.  Magdaleno acknowledged that immediately after the victim was stabbed, two bombers began punching and kicking the victim to allow Magdaleno to escape being caught by guards with the stabbing weapon.  Magdaleno also admitted that he orchestrated and participated as the hitter in the February 25, 2013, removal of a victim from the jail.  Magdaleno admitted that he gave the victim marijuana to use so that he would be more vulnerable and let his guard down; and after doing so, Magdaleno stabbed the victim in the head with a shank.  Immediately after the victim was stabbed, three bombers began punching and kicking the victim to allow Magdaleno to escape being caught by guards with the stabbing weapon.  Magdaleno admitted that after he disposed of the shank, he joined the other bombers in beating the victim.  

Romero admitted that he approved the February 25, 2013, removal of a victim from one of the housing units of the Monterey County Jail.  Romero admitted that during the removal, the hitter stabbed the victim in the head, and immediately thereafter three bombers began to punch and kick the victim to inflict the maximum damage possible and to allow the hitter to escape without being caught by guards with the stabbing weapon.  Romero also admitted to helping plan two other removals on April 29 and October 23, 2013.  Romero admitted that he relayed the leadership’s approval for the removals, which involved a hitter stabbing the April 29 victim in the head with a metal shank and a hitter stabbing the October 23 victim in the neck with a weapon made out of plexiglass.  In both removals, bombers punched and kicked the victim to inflict the maximum damage possible and to allow the hitters to escape without being caught by guards with the stabbing weapons.

Cervantes admitted that he participated in the April 29, 2013, removal of a victim from one of the housing units at the Monterey County Jail.  Cervantes admitted that he was the hitter for the removal and stabbed the victim in the head.  Cervantes acknowledged that immediately after the victim was stabbed, at least four bombers began punching and kicking the victim to allow Cervantes to escape being caught by guards with the stabbing weapon.  Cervantes also admitted that he was a bomber in the February 25, 2013, removal of a victim, and that he punched and kicked the victim to inflict the maximum damage possible and to allow the hitter to escape.

On September 27, 2018, a federal grand jury indicted Magdaleno, Romero, Cervantes, and several other defendants with racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).  Magdaleno, Romero, and Cervantes were also charged with conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5), and conspiracy to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6).  Romero was also charged with attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5), and assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(3).  All three defendants pleaded guilty to the racketeering conspiracy charge, wherein they admitted that murder was an object of the conspiracy.  If they comply with their plea agreements, the additional charges will be dismissed at sentencing.

Judge Freeman scheduled the sentencing hearing for Cervantes for May 19, 2020; and the sentencing hearings for Magdaleno and Romero for June 23, 2020.  Pursuant to the terms of their plea agreements, Magdaleno has agreed that a reasonable and appropriate disposition of his case would include a term of imprisonment of 30 years to run concurrently with sentences imposed in connection with a number of state court convictions; Romero has agreed that a reasonable and appropriate disposition of his case would include a term of imprisonment of 18 years; and Cervantes has agreed that a reasonable and appropriate disposition of his case would include a term of imprisonment of 10 years.  However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 

The following additional defendants have pleaded guilty to crimes as part of the criminal Enterprise and have been sentenced or are scheduled to be sentenced in the case:

Assistant U.S. Attorneys Claudia A. Quiroz and Stephen Meyer are prosecuting the case.  The prosecution is the result of an investigation by the FBI with assistance from the Salinas Police Department, the Monterey County Sheriff’s Office, the California Highway Patrol, and the California Department of Corrections and Rehabilitation.

“Today a unanimous jury found Michael Avenatti guilty of misusing his client’s information in an effort to extort tens of millions of dollars from the athletic apparel company Nike.  While the defendant may have tried to hide behind legal terms and a suit and tie, the jury clearly saw the defendant’s scheme for what it was – an old fashioned shakedown.”

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Joseph Coates, age 29, of Baltimore, Maryland, today to nine years in federal prison, followed by five years of supervised release, for an armed commercial robbery in which a firearm was brandished. 

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.

As detailed in guilty plea, on February 21, 2018, Coates and co-conspirator Jason Walker robbed a restaurant in the 2200 block of Wilkins Avenue in Baltimore.  Coates admitted that during the robbery, Walker pointed a handgun at one of the victims, while Coates took all the money from the cash register and tip jar.  In addition, Coates and Walker took the victims’ personal cell phones before fleeing the restaurant.

After receiving a 911 call to report the robbery, a Baltimore Police officer was canvassing the area and saw two men in an alley who matched the description provided by the victims.  The men were standing by a wall counting cash.  Officers detained the men and brought one of the victims to the location.  That person identified Coates as one of the men that had committed the robbery.  Officers arrested and searched Coates and Walker, recovering $272 in cash, a plastic bag full of change, blue bandanas, a black mask, two cellular telephones that belonged to two of the victims of the robbery, and a receipt from the restaurant.  Officers also recovered a fully loaded revolver from the area where Coates and Walker were counting money.  Walker admitted that it was the gun he brandished during the robbery of the restaurant.

Jason Walker, age 31, of Baltimore, Maryland, was previously sentenced to 121 months in federal prison, for his role in the robbery.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  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.

United States Attorney Robert K. Hur commended the ATF and Baltimore Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Michael A. Goldsticker, who is prosecuting the case.

# # #

SAN FRANCISCO - A federal grand jury in San Francisco indicted Raya Man with possessing a firearm and ammunition as a convicted felon, announced United States Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) San Francisco Special Agent in Charge Rayfield Roundtree. Man is charged with having previously been convicted of three violent felonies; therefore, if convicted, Man faces a mandatory minimum sentence of 15 years in prison. 

Details about the incident leading to the charge appear in an affidavit from a Task Force Officer with the ATF filed January 28, 2020.  According to the affidavit, on September 6, 2019, Man, 40, of San Francisco, engaged in a verbal argument with the proprietor of a nearby bar located in the Tenderloin neighborhood.  Man allegedly walked away from the argument saying words to the effect of, “I will show you what a gangster is.”  When Man returned a short time later, he allegedly followed the proprietor into his bar, drew a pistol, and pointed it at the proprietor while saying, “Would you believe I could kill you now?”  The affidavit further alleges Man left the bar, immediately entered the single-occupancy restroom of a nearby bar, and exited the restroom seconds later.  When Man exited the restroom, San Francisco Police Department officers detained him.  Officers located a .45 caliber pistol loaded with seven live rounds of ammunition in the restroom’s wastebasket.  In addition, the affidavit alleges Man was convicted of three violent felonies prior to September 6, 2019.

Man is charged with being in possession of a firearm and ammunition with three prior violent felony convictions, in violation of 18 U.S.C. §§ 922(g)(1) and 924(e).  Man has remained in custody since his arrest on September 6, 2019.  He made his initial appearance in federal court in San Francisco on February 4, 2020.  His next scheduled appearance is at 10:30 a.m., on February 20, 2020, for a status conference before U.S. Magistrate Judge Joseph C. Spero.  

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Man faces a maximum sentence of life in prison and a fine of $250,000.  However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 

This case is part of the Federal Initiative for the Tenderloin, a multi-agency effort focusing on fighting crime in the Tenderloin neighborhood of San Francisco. 

Assistant U.S. Attorney Richard Ewenstein is prosecuting the case with the assistance of Morgan Byrne.  The prosecution is the result of an investigation by the ATF and the San Francisco Police Department.

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Brandi Nicole Fletcher (24, Jacksonville) with perjury, fraudulently obtaining a passport, and aggravated identity theft in connection with passport fraud. If convicted, Fletcher faces up to 10 years in federal prison for the false statement in an application for a passport count, up to 5 years for the perjury count, and a consecutive mandatory term of two years for the aggravated identity theft count. 

According to court documents, the U.S. Marshals Service (USMS) in Jacksonville began investigating Fletcher after she appeared in federal court in July 2019 as a potential third-party custodian for a federal defendant seeking to be released on bond. During that hearing, Fletcher claimed, under oath, to be another person with the initials K.N.P. Fletcher also claimed to have the date of birth of K.N.P. and claimed to have no prior criminal record. All of these claims were false. Further investigation by the USMS revealed that Fletcher had obtained a Florida identification card in the name of K.N.P. approximately one hour prior to appearing in federal court. A facial recognition search of the Florida driver license database also showed that Fletcher had been issued Florida driver licenses or identification cards in her own name, as well as in the names of four other individuals.

In August 2019, Fletcher was arrested in South Carolina on unrelated charges for possession of stolen property. At the time of her arrest, she was in possession of a United States passport in the name of a person with the initials A.I.N.D., as well as at least 12 identification documents for other individuals, including birth certificates, social security cards, Florida identification cards, and a Georgia driver license.  Further investigation by the United States Diplomatic Security Service revealed that, in February 2019, Fletcher had submitted an application for the passport using identification documents belonging to another person. In submitting the passport application, Fletcher swore that she was A.I.N.D.

An indictment 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.

This case was investigated by the U.S. Marshals Service and the Diplomatic Security Service. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.

RALEIGH– Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces the results of a recently completed enforcement operation in Wake County by Department of Homeland Security’s Bureau of Immigration Custom Enforcement (ICE). 

ICE began a targeted enforcement operation on February 8 and concluded today.  However, it should be noted that ICE conducts targeted enforcement activities on a daily basis, and will continue to do so.  This most recent operation targeted at-large criminal aliens who have been identified based on encounters – that is, criminal arrests – with local law enforcement. 

The Raleigh area ICE Team made sixteen arrests of foreign nationals with a variety of criminal arrests and convictions, including: Driving While Intoxicated; Burglary; Assault; Assault on Child; Robbery; Drug Possession; and, Resisting a Public Officer.  One individual has been confirmed to be a member of the transnational criminal street gang Sureño 13 (SUR 13). 

Of those arrested by ICE, eight were previously deported and are now pending federal prosecution for violations of Title 8, United States Code, Section 1326 (Reentry of a Removed Alien).  Seven of those eight have been charged here in the Eastern District; one has been charged in the Middle District of North Carolina.

Additionally, four of the individuals arrested were identified while in the custody of the Wake County Sheriff’s Office.  One individual was released despite a detainer having been placed on that subject and in spite of charges involving the assault of two young children.  Three individuals were released before ICE could respond. 

Names of individuals pending federal charges in the Eastern District:

MONTIEL, Jose Isaias

CONTRERAS VILLAVERDE, Francisco Javier

AGUILAR SOTO, Luis Gerardo

BENLES-OCAMPOS, Marden Giovanny

CHAPOL-AMBROS, Victor

REYES-MORENO, Manuel Antonio

CRUZ-AQUINO, Nelson

The charges and allegations contained in the indictment are merely accusations.  The defendant is presumed innocent unless and until proven guilty in a court of law.

ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the cases.

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The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that NICHOLAS JOSEPH GENOVESE was sentenced on February 11 in Manhattan federal court to 140 months in federal prison for committing securities fraud.  GENOVESE induced more than $11.2 million in investments in a hedge fund that he founded, Willow Creek Investments LP (“Willow Creek”), by misrepresenting his qualifications and professional background and concealing that he had prior felony convictions for fraud-related crimes.  In February 2018, GENOVESE was charged, arrested, and detained for perpetrating this fraud.  In October 2018, GENOVESE pled guilty to one count of securities fraud before United States District Judge William H. Pauley III, who also imposed the sentence. 

United States Attorney Geoffrey S. Berman said:  “Nicholas Genovese is a recidivist fraudster and con artist who tricked more than ten victims into investing more than $11.2 million dollars into his hedge fund, Willow Creek, based on false claims about his background and credentials.  Genovese brazenly lied to his victims, falsely claiming that he was an heir to a multimillion-dollar fortune, that he had an Ivy League MBA, and that he had served in senior roles at major Wall Street firms.  In reality, Genovese was a repeat offender with nine prior criminal convictions for fraud-related and other crimes.  Genovese now faces more than a decade in prison for defrauding his victims.”

According to the allegations set forth in the Complaint and Indictment filed against GENOVESE in Manhattan federal court, and statements made in public court filings and proceedings including GENOVESE’s sentencing hearing:

In or about 2015, GENOVESE began soliciting individuals to invest in the hedge fund that became Willow Creek, which was based in New York, New York.  In doing so, GENOVESE represented, among other things, that he was part of the Genovese family that had owned the Genovese Drug Store chain in the New York area and was an heir to this family’s fortune from the sale of that business for hundreds of millions of dollars in the late 1990s; that he had graduated from Dartmouth College’s Tuck School of Business; and that he had extensive Wall Street experience.  In particular, GENOVESE claimed that he had been a Goldman Sachs partner and a Bear Sterns portfolio manager before forming Willow Creek.  Based in part on these claims, victims invested $11,211,704 with GENOVESE. 

These representations were false.  GENOVESE is not related to the Genovese family that owned and sold the Genovese Drug Store Chain, did not attend the Tuck School of Business, and had never worked for Goldman Sachs or Bear Stearns.  GENOVESE also did not tell his investors that he had multiple prior felony convictions for fraud-related offenses including forgery, identity theft, and grand larceny.

When investors began to ask for their money back, GENOVESE put them off.  He told one investor that he would only return that investor’s funds after “the stars have aligned,” or else there would be a risk that almost all the money would be lost as a result of the purported impracticalities of unwinding unspecified trading positions.  Records indicate that GENOVESE lost approximately $8 million trading in TD Ameritrade accounts between January 2015 and December 2017.  GENOVESE also used proceeds of his fraud to purchase various luxuries for himself.

*                      *                      *

GENOVESE, 54, was born and raised in Illinois and is a resident of New York, New York.  In addition to his prison term, GENOVESE was sentenced to three years of supervised release and ordered to pay restitution to his victims in the amount of $11,211,704 in addition to forfeiture of the proceeds of his crime. 

Mr. Berman praised the investigative work of the Federal Bureau of Investigation and thanked the New York Regional Office of the United States Securities and Exchange Commission for its assistance.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant United States Attorney Samson Enzer is in charge of the prosecution.