Spartanburg, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that Detric McGowan, aka “Fat,” 47, of Piedmont, has been sentenced to 35 years in federal prison after pleading guilty to participating in a drug conspiracy involving cocaine, heroin, fentanyl, and tramadol; possessing a kilogram or more of heroin with the intent to distribute; conspiring to launder money; obstruction of justice/witness tampering; and obstruction of justice/retaliation. 

Evidence presented at the change of plea hearing showed that beginning as early as 2016, law enforcement in Greenwood County began to see a rise in the number of opioid-abuse related cases, drug overdose deaths, and overdose non-fatalities attributed particularly to heroin and fentanyl toxicity.  Commonly found at the opioid overdose incidents and routinely seized by local law enforcement were counterfeit 30 milligram-size blue prescription pain pills laced with heroin and/or fentanyl and scored with a “V” on one side and “4812” on the other side.

Based on human intelligence, advanced electronic surveillance, the execution of search warrants, and other investigative techniques, law enforcement determined that McGowan was a member of a drug trafficking organization operating in the Upstate of South Carolina, primarily in Laurens and Greenwood Counties.  The organization was responsible for the distribution of in excess of $1 million dollars’ worth of heroin, cocaine, and/or fentanyl in the Upstate and elsewhere.  Police seized in excess of 20 kilograms of heroin and approximately $1 million during the investigation.  McGowan was indicted along with several co-conspirators in February 2019 and taken into custody.

In July 2019, McGowan began to discuss with a person who was incarcerated with him having his prosecutor and at least one witness killed. This person alerted law enforcement to the threat and an immediate investigation began. The evidence showed McGowan had become frustrated with his legal position and desired to have his prosecutor and a witness killed. McGowan was recorded agreeing to pay the person $10,000 to kill the prosecutor and witness and providing information about how to find the targets. He also provided a telephone number and wrote down the name of the witness, so that upon release the cooperator could carry out the plan. McGowan confessed to the FBI of the plot he had put in motion.

United States District Court Judge Donald C. Coggins, Jr., of Spartanburg, sentenced McGowan to 420 months in federal prison, to be followed by 10 years of court-ordered supervision.  There is no parole in the federal system.

The drug case was investigated by agents of the Drug Enforcement Administration (DEA) and the Internal Revenue Service – Criminal Investigations.  The threat was investigated by the Federal Bureau of Investigation, the United States Marshals Service, and the 7th Circuit Solicitor’s Office.  Assistant United States Attorneys Jim May, Jason Peavy, Sloan Ellis, and Katie Stoughton prosecuted the case.

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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

Greenbelt, Maryland – A federal jury has convicted Kenneth Wayne Hart, a/k/a Redds, Wayne Hawkins, Hawk, Big Daddy, Billy Reds, and Bill Red Hart, age 58, of Beltsville, Maryland, on federal charges of conspiracy to distribute and possess with intent to distribute narcotics; a sex trafficking conspiracy; sex trafficking by force, fraud, and coercion; and witness tampering.  The verdict was returned late on March 12, 2020.

The conviction 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; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.

According to the evidence presented at his seven-day trial, beginning in December 2016 and continuing until April 2017, Hart conspired to distribute narcotics and with a co-conspirator ran a prostitution business using force, threats, fraud, and coercion to cause women to engage in commercial sex acts.  The evidence proved that Hart recruited women to engage in commercial sex acts in Maryland and Washington, D.C.  Hart transported, photographed, and advertised the victims for commercial sex on websites set up for that purpose.  According to trial testimony, Hart also supplied the victims with heroin and crack cocaine on a daily basis and threatened to withhold—and did withhold—the narcotics if the victims displayed any sign of disobedience or tried to leave the locations where the commercial sex acts occurred.  According to trial evidence, in order to maintain control over the women he recruited to prostitute, Hart demanded that the women surrender to him their personal belongings, including identification cards, credit cards, cash, clothing, and cellular phones, and confiscated their earnings from the commercial sex acts.  Hart also used physical force, threatened physical force, and verbally abused the victims to force them to engage in prostitution against their will.

The jury also found that the evidence proved that Hart used physical force and threatened physical force to prevent an individual from communicating to a law enforcement officer information related to the commission or possible commission of a federal offense.

Hart faces a maximum sentence of 20 years in federal prison for the drug distribution conspiracy; a maximum of life in federal prison for the sex trafficking conspiracy; a mandatory minimum sentence of 15 years in federal prison and a maximum of life in prison for each of two counts of sex trafficking by force, fraud, and coercion; and up to 30 years in federal prison witness tampering.  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.  U.S. District Judge Peter J. Messitte has scheduled sentencing for July 8, 2020 at 9:30 a.m.

The sex trafficking charges were investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies.  The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution. 

MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders.  Members include federal, state and local law enforcement, as well as victim service providers and local community members.  For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.

United States Attorney Robert K. Hur commended the ATF, FBI, and the Prince George’s County Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Jennifer R. Sykes and Daniel C. Gardner, who are prosecuting the case.

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This week in federal court, two men were sentenced for attempting to sexually exploit minors and a third man was sentenced for failing to register as a sex offender, announced U.S. Attorney Trent Shores.

“The sexual predation of children by adults is perverse and sickening. Social media platforms are the primary means of communication by America’s youth, and, in turn, how predators hunt and seek to exploit vulnerable children,” said U.S. Attorney Trent Shores. “The immutable nature of child sex predators underscores the important work by cybercrimes detectives. From outreach and education to investigation and enforcement, our local, state, and federal law enforcement officers are working day and night to protect Oklahoma’s children. I commend their work and assure you we will continue to bring child predators to justice.”

Arthur James Mann, 34, of Bristow, was sentenced to 121 months in federal prison to be followed by 10 years of supervised release.A federal jury convicted Mann of attempted coercion and enticement of a minor on Dec. 17, 2019. Mann communicated with an individual he believed to be 13 years of age but instead was an undercover officer. From July 29 to Aug. 17, 2018, Mann communicated with the “girl” on Facebook, telling her that his name was Andrew Mason and that he was 16 years old. Mann initiated multiple sexual conversations with the “girl” and requested nude photos. Mann further suggested the two meet in order to have sex on Aug. 17, 2018. Mann arrived that night in his pajamas and slippers to meet the 13-year-old girl. Instead, he was met by officers from the Bristow Police Department and taken into custody. The Bristow and Sapulpa Police Departments conducted the investigation. Assistant U.S. Attorneys Edward Snow and Scott Proctor prosecuted the case.

Casey Adam Parker, 40, of Afton, was sentenced to 87 months in federal prison to be followed by seven years of supervised release. Parker pleaded guilty Dec. 11, 2019, to attempted receipt of child pornography. On July 2, 2019, Parker used a social media app to engage with an individual he believed to be a minor. In actuality, he was speaking to a law enforcement officer. Parker knowingly attempted to persuade the “minor” to engage in sexual activity and to send him sexually explicit pictures. Parker was arrested July 2, as part of Operation Independence Day, a month-long operation to apprehend child predators and recover victims of child exploitation and sex trafficking. The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Richard M. Cella prosecuted the case.

Additionally, a third man was sentenced this week for failing to register as a sex offender. Kacey J. Hamilton, 29, of Tulsa, aka Brandon Bickford, was sentenced to 12 months in federal prison to be followed by five years of supervised release. Hamilton pleaded guilty Dec. 11, 2019, to failure to register as a sex offender. Hamilton resided in Oklahoma since August 2018, and knowingly failed to register and update his registration as a sex offender. The Tulsa Police Department and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Victor A.S. Régal prosecuted the case.

The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Great Falls before U.S. District Judge Brian M. Morris and pleading not guilty on March 11 was:

Roderick Kale Ledford, 38, of Great Falls, on charges of felon in possession of a firearm and unlawful drug user in possession of a firearm. If convicted of the most serious crime, Ledford faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Ledford was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department investigated the case. Pacer case reference. 20-23.

Appearing on March 10 and pleading not guilty was:

Don Fred Baldwin, 47, of Merced, CA, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth, use of communications facility in causing and facilitating the commission of felonies. If convicted of the most serious crime, Baldwin faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Baldwin was detained pending further proceedings. The FBI, Merced Police Department and Fort Peck Tribes Department of Law and Justice investigated the case. Pacer case reference. 20-05.

Appearing on March 9 and pleading not guilty was:

Jennifer Lee Marie Walkingeagle, 29, of Wolf Point, on charges of conspiracy to possess with intent to distribute oxycodone and possession with intent to distribute oxycodone. If convicted of the most serious crime, Walkingeagle faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Walkingeagle was detained pending further proceedings. The FBI, Fort Peck Tribes Department of Law and Justice and Montana Highway Patrol investigated the case. Pacer case reference. 20-15.

Charles Clark, 26, of Wolf Point, on charges of assault resulting in serious bodily injury. If convicted of the most serious crime, Clark faces a minimum mandatory 10 years to life in prison, a $250,000 fine and at least five years of supervised release. Clark was detained pending further proceedings. The FBI and Fort Peck Tribes Department of Law and Justice investigated the case. Pacer case reference. 20-20.

Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan on March 12 and pleading not guilty was:

Destiny Lachelle Nilsen, 26, of Billings, on charges of transportation of a person with intent to engage in prostitution. If convicted of the most serious crime, Nilsen faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Nilsen was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 19-152.

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

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United States Attorney John H. Durham, Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division and J. Russell George, the Treasury Inspector General for Tax Administration, today announced that, on March 11, 2020, a federal grand jury in New Haven returned an 11-count indictment charging the following individuals with offenses stemming from their alleged participation in lottery and romance scams that defrauded primarily elderly victims across the country of millions of dollars:

FAROUQ FASASI, 25, a citizen of Nigeria and a lawful permanent resident of the U.S. residing in New Haven
RODNEY THOMAS, JR., 29, of New Haven
MONTRELL DOBBS, JR., 27, recently of Ansonia, Hamden and New Haven
STANLEY PIERRE, 32, of Bridgeport
RALPH PIERRE, 30, of New Haven

Fasasi, Thomas, Dobbs and Ralph Pierre were arrested yesterday.  They appeared before U.S. Magistrate Judge Robert M. Spector in New Haven and entered pleas of not guilty to the charges.  Fasasi, Thomas and Ralph Pierre are currently detained, and Dobbs is released on bond.  Stanley Pierre is being sought by law enforcement.

As alleged the indictment, in a lottery scam, scammers notify victims by telephone, through online communications, or by mail, that they have won the lottery.  The victims are then told that in order to collect the prize they must pay fees for things like taxes, shipping and processing.  Often, once a victim sends a small amount of money, a scammer will ask for larger sums of money with a promise of more winnings.  The victims never receive winnings.

In a romance scam, scammers take advantage of people looking for companionship by pretending to be prospective companions.  Scammers typically create fake online profiles on dating websites that include false personal details such as the death of a spouse, or military service, to lure victims to trust them.  Once they have gained the trust of victims, scammers will ask victims for money, falsely claiming to need money for medical or business emergencies, for travel to see the victim, or other purposes.

The indictment alleges that, since August 2015, Fasasi, Thomas and their co-conspirators have used lottery scams, romance scams and other fraudulent means to induce elderly victims to provide them with money, gifts and personal details.  Victims sent cash, money orders or checks through the mail to various addresses in Connecticut, and also wired or deposited money into bank accounts in Connecticut controlled by conspiracy members and their associates. Fasasi, Thomas and their associates, including Dobbs, Stanley Pierre and Ralph Pierre, retained a portion of the fraudulently obtained money and passed the rest to others.  In addition, Fasasi, Thomas, Dobbs, Stanley Pierre and Ralph Pierre participated in a conspiracy to commit money laundering with the proceeds from the victims.

It is alleged that members of the conspiracy defrauded numerous victims across the U.S. of more than $4 million.  One Connecticut victim lost more than $1 million.

“The financial victimization of seniors is as reprehensible as it is cruel, and the Justice Department has made it a priority to root out those who commit these crimes,” said U.S. Attorney Durham.  “Numerous victims in this scheme gave thousands of dollars to these alleged predators.  I urge all to think twice, and then to think again, before providing any money to individuals who they have never met in person.  As soon as you are asked for money, call your local police department, or 833-FRAUD-11, for assistance.”

 “Scammers use promises of large financial gains or sometimes even romantic relationships to lure victims in, only to manipulate them into giving their life savings away,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “They prey on those individuals who are more susceptible to falling for a phony promotion or offer, most times, our elder population.  The U.S. Postal Inspection Service is committed to protecting our citizens and working hard to prevent more people from becoming further victimized by these types of schemes.”

“These charges demonstrate the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those that victimize the American taxpayer,” said J. Russell George, the Treasury Inspector General for Tax Administration.  “These defendants are alleged to have engaged in schemes resulting in millions of dollars in fraud, often targeting the most vulnerable members of society.  The success of this investigation is the result of a collaborative effort between multiple federal law enforcement agencies and the dedicated staff at the U.S. Attorney’s Office.”

The indictment charges Fasasi and Thomas with one count of conspiracy to commit mail and wire fraud, and one count of mail fraud.  Each of these charges carries a maximum term of imprisonment of 20 years.  All five of the defendants are charged with one count of conspiracy to commit money laundering, a charge that also carries a maximum term of imprisonment of 10 years.  Fasasi, Dobbs, Stanley Pierre and Ralph Pierre are also charged with one or more counts of money laundering, which carries a maximum term of imprisonment of 10 years on each count.

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

Earlier this month, the Justice Department established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud.  The Hotline is staffed by experienced case managers who can provide personalized support to callers.  Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed.  When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller.  The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).

This matter is being investigated by the U.S. Postal Inspection Service, Treasury Inspector General for Tax Administration (TIGTA), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), U.S. Secret Service, U.S. Army-CID, and New Haven Police Department.  The case is being prosecuted by Assistant U.S. Attorney Heather L. Cherry.

Greenbelt, Maryland – A federal jury yesterday convicted Keno Romario Brown, age 26, of Hyattsville, Maryland, on federal charges of conspiracy to commit mail and wire fraud, wire fraud, and mail fraud, in connection with a scheme to defraud more than 100 elderly victims through an advance fee scheme, specifically, by falsely representing that the victims had won a lottery or sweepstakes and demanding taxes or other fees before the victims could receive the prize. 

The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Director in Charge Timothy R. Slater of the Federal Bureau of Investigation - Washington Field Office; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.

U.S. Attorney Robert K. Hur stated, “The Department of Justice is committed to bringing fraudsters who prey upon the elderly to justice.  We will continue our outreach efforts to make the public aware of scams and frauds targeting elderly victims and encourage anyone who believes they may be a victim to contact the newly launched Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”

According to the evidence presented at his seven-day trial, in April 2013, Brown and two co-conspirators began contacting victims, falsely telling them that they were representatives of Company 1 or Company 2, which sponsored a lottery or sweepstakes. Brown and his co-conspirators misrepresented to victims that they had won a prize sponsored by Company 1 or Company 2, but in order to collect the prize, the victims had to pay advance fees and taxes to Brown or his co-conspirators.  The conspirators directed the victims to send the advance fees and taxes electronically, or through an interstate mail carrier to “runners” who received the fraudulent proceeds and provided them to Brown and his co-conspirators.  Evidence was presented that Brown used physical abuse to control at least one of the runners.

The trial evidence proved that to launder the fraud proceeds, Brown and a co-conspirator obtained debit cards using the personal information of elderly individuals without their knowledge or consent, and deposited that fraud proceeds onto those debit cards. 

The evidence proved that during the course of the conspiracy, Brown and other members of the conspiracy successfully defrauded over 100 elderly victims.    

United States Attorney Robert K. Hur commended the FBI and the U.S. Postal Inspection Service for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein, Dana J. Brusca, and Lindsay Eyler Kaplan, who are prosecuting the case.

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BOSTON – A parent in the college admissions case has pleaded guilty today in federal court in Boston.

David Sidoo, 60, of Vancouver, Canada, pleaded guilty before U.S. District Court Judge Nathaniel M. Gorton who scheduled sentencing for July 15, 2020.  Sidoo pleaded guilty to one count of conspiracy to commit mail and wire fraud.  As part of the plea, Sidoo has agreed to a sentence that includes 90 days in prison and a $250,000 fine.

In 2011, Sidoo agreed to pay $100,000 to have a co-conspirator, Mark Riddell, secretly take the SAT in place of his older son.  The following year, Sidoo agreed to pay $100,000 to have Riddell take the SAT in place of his younger son. 

Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.

The charge of conspiracy to commit mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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Gulfport, Miss. – Following a nine week trial, a federal jury in Gulfport returned a guilty verdict yesterday against Ted and Julie Cain of Ocean Springs, Ted Cain’s companies, Stone County Hospital (Wiggins) and Corporate Management, Inc. (Gulfport), and Tommy Kuluz, Chief Financial Officer of Corporate Management, Inc. for violating the Civil False Claims Act, announced U.S. Attorney Mike Hurst and Derrick Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services.

“This verdict is a victory for the American taxpayer and all the beneficiaries of Medicare and other government programs,” said U.S. Attorney Mike Hurst. “This was one of the most egregious cases of Medicare fraud we have litigated in the State of Mississippi, and I am grateful to our prosecutors and DOJ attorneys and investigators for tenaciously pursuing and holding these fraud takers accountable.  We will remain vigilant in protecting American taxpayer dollars and rooting out waste, fraud and abuse throughout government.”  

The Government’s complaint and evidence at trial established that these defendants used Stone County Hospital, formerly a 25-bed critical access hospital and Medicare provider, to defraud Medicare of more than $10.85 million through fraudulent annual Medicare cost reports for the years 2004 through 2015.  The majority of the damages sustained by the Government resulted from Ted Cain’s multi-million dollar compensation, billed to Medicare through Stone County Hospital and Corporate Management, Inc.   For years, Corporate Management, Inc. passed on the vast majority of Ted Cain’s multi-million dollar compensation to Stone County Hospital, which Medicare reimbursed for costs at 101% from 2004 through April 1, 2013, and 99% from April 1, 2013 through 2015 under special reimbursement principles for critical access hospitals that help rural, underserved areas.  For the cost reporting years 2004 to 2015, Corporate Management, Inc., through Ted Cain and Tommy Kuluz, assisted by Julie Cain, requested more than $17.69 million in compensation for Ted Cain despite no evidence that Ted Cain did any work for Stone County Hospital that qualified for Medicare reimbursement and that his compensation was unreasonable.  In total, Medicare reimbursed Stone County Hospital nearly $11.8 million for Ted Cain’s compensation.  The jury awarded the Government nearly $9.62 million in damages for Ted Cain’s fraudulent compensation.

Ted Cain’s wife, Julie Cain, who Ted Cain placed in the position of Administrator for Stone County Hospital from 2003 to 2012, also fraudulently received more than $704,454 in compensation reimbursed by Medicare.  The evidence at trial showed that Julie Cain rarely worked at Stone County Hospital, while others ran the hospital, and Julie Cain’s compensation was unreasonable.  After Julie Cain resigned as the Administrator of Stone County Hospital, she immediately started receiving compensation from Corporate Management, Inc. for alleged consulting work and director’s fees.  Neither Julie Cain nor any other defendant could identify any consulting work she did for Stone County Hospital.  Medicare reimbursed $149,510 in Julie Cain’s fraudulently obtained compensation for consulting and director’s fees.  The jury awarded the Government a total of $853,964 in fraudulent compensation paid for Julie Cain.

Moreover, an audit conducted by the Mississippi Division of Medicaid found that for 2012 and 2013, Corporate Management, Inc., self-disallowed home office costs on its Medicaid home office statement but charged those costs on its Medicare home office statement, despite that Medicare and Medicaid follow the same reimbursement rules.  Chief Financial Officer Tommy Kuluz could provide no explanation for this discrepancy, and despite the fact that he knew about the discrepancies at least by 2016 when Medicaid conducted an audit, defendants made no effort to repay Medicare for the over-allocation to Stone County Hospital.  Because of this fraud, Medicare reimbursed Stone County Hospital more than $381,866 in fraudulent costs that it should not have. 

The jury made a number of findings in its verdict, resulting in recovery of more than $10.85 million to the Medicare program.  Damages are trebled under the False Claims Act. The Court also imposes a statutory penalty of $5,500 to $11,000 for each false claim for cost report years 2004 to 2014 and $11,181 to $22,363 for the 2015 cost report. Accordingly, the total amount of defendants’ civil liability will be determined by the Court, using the findings in the jury’s verdict.

The jury’s verdict resolves a lawsuit that was filed by James Aldridge under the qui tam or “whistleblower” provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Government investigated and intervened in the lawsuit and prosecuted the case.  The case is captioned United States ex rel. Aldridge v. Corporate Management, Inc., et al., Case No. 1:16cv369-HTW-LRA (S.D. Miss.).  The United States appreciates the relator’s interest in program integrity and his assistance with this successful outcome.  The United States also appreciates the assistance of the Mississippi Division of Medicaid and Manuel Pilgrim, who heads its audit program.  The Department of Health and Human Services Office of Inspector General also provided assistance in the case.

The case was prosecuted by Assistant U.S. Attorney Angela Givens Williams and Attorneys Tom Morris and Elspeth A. England with the Civil Fraud Section of the Commercial Litigation Branch of the U.S. Department of Justice in Washington, D.C.

SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 12, 2020, United States District Court Judge Robert D. Mariani sentenced Kerry Sprouse, age 23, of East Stroudsburg, Pennsylvania, to 24 months’ imprisonment for drug trafficking.

According to United States Attorney David J. Freed, Sprouse distributed and possessed with the intent to distribute cocaine in February 2016, in Monroe County, Pennsylvania.  Sprouse previously admitted during his guilty plea, to having distributed between 100 and 200 grams of cocaine as part of his trafficking activities.         

The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.

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

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Rankins, age 38, William Barton, age 38, Michael Adams, age 42, Denzel Swan, age 36, Dorral Basknight, age 40, and Furman Dennis, age 38, all of York County, Pennsylvania, were indicted on March 4, 2020, by a federal grand jury on drug trafficking charges.

According to United States Attorney David J. Freed, the 14-count indictment alleges that the six men distributed and conspired to distribute more than 280 grams of cocaine base between March 27, 2019, and December 19, 2019, in York County.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant U.S. Attorney Johnny Baer is prosecuting the case.

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

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

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

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

# # #

            WASHINGTON – Cleophat Tanis, 52, of Naples, Florida, was sentenced today to one month in prison and seven months of home detention for his role in a scheme that caused the District of Columbia’s Department of Disability Services to be defrauded out of hundreds of thousands of dollars. Tanis conspired with Eugenia Rapp, 50, of Woodbridge, Virginia, a former D.C. government employee, who pled guilty to conspiracy to commit mail fraud in July, and who will be sentenced on April 1, 2020.

            The announcement was made by U.S. Attorney Timothy J. Shea; Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division; Aaron R. Jordan, Assistant Inspector General for Investigations, Department of Education; and Daniel W. Lucas, Inspector General for the District of Columbia.

            Tanis pled guilty to one count of mail fraud in December 2020. Today the Honorable Trevor N. McFadden sentenced him to one month in prison and seven months of home detention. In addition, he was ordered to pay $47,895 in restitution, an identical amount in a forfeiture money judgement, and a $10,000 fine.

            According to the statement of offense submitted to the Court in Tanis’ case, Rapp worked as a vocational rehabilitation counselor with the District of Columbia’s Department of Disability Services, Rehabilitation Services Administration (“DCRSA”). The DCRSA Vocational Rehabilitation program provides vocational rehabilitation benefits, like college tuition, to qualified individuals with disabilities to help them prepare for and engage in gainful employment. Individuals must be D.C. residents to be eligible for the benefits.

            From 2012 through 2016, Rapp conspired with others to defraud the D.C. government by having benefits awarded to individuals who were not eligible to receive them. In her role as a vocational rehabilitation counselor, Rapp was responsible for determining whether an individual was eligible to receive the benefits. Notwithstanding D.C. government policy regarding conflicts of interest, Rapp served as the vocational rehabilitation counselor for more than 20 individuals whom she described as being related to her. She knew these individuals were not eligible to receive benefits, but ensured that she was assigned to be their vocational rehabilitation counselor, so she could process and approve their applications. As a result, the D.C. government awarded vocational rehabilitation benefits totaling approximately $834,536 to Rapp’s family members and friends.

            When one of Rapp’s family members wanted to attend Tanis’ nursing school, Rapp worked with Tanis to get his school added as an approved vendor with the D.C. government. During that process, Tanis told Rapp that his school was struggling financially and asked her to use her position to help pay tuition for students at his school. Tanis knew that students had to be D.C. residents in order to be eligible to receive benefits, but worked with Rapp to get $47,895 in benefits awarded to five students at his school who were not D.C. residents and who had no familial relationship to Rapp. During the scheme, Tanis provided one of Rapp’s relatives with a full scholarship to attend his school. Rapp also asked him to provide money to that relative, which he did.

            In announcing Tanis’ sentence, U.S. Attorney Shea, Special Agent in Charge Dunham, Assistant Inspector General Jordan, and Inspector General Lucas commended the work of those who investigated the case from the Federal Bureau of Investigation, the Department of Education’s Office of Inspector General, and the District of Columbia’s Office of Inspector General. They also expressed appreciation for the work of Paralegal Specialist Mariela Andrade, and former Paralegal Specialists Brittany Phillips and Jessica Mundi. Finally, they commended the work of Assistant U.S. Attorney Kondi Kleinman, who prosecuted the case.

SAN FRANCISCO- A federal grand jury indicted 17 Bay Area residents for a broad range of racketeering crimes including RICO conspiracy, attempted murder, and assault, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King.  The Superseding Indictment handed down February 18, 2020 and unsealed today catalogues a litany of crimes allegedly perpetrated in and around the Mission District of San Francisco.

“San Francisco continues to suffer from gang violence and gang claims on our public spaces,” said U.S. Attorney Anderson.  “I am grateful to the men and women of Homeland Security Investigations and the San Francisco Police Department for their professionalism and teamwork. San Francisco is safer when we all work together.  We will oppose gang activity with professional law enforcement and vigorous prosecutions.” 

“MS-13 gang members prey upon the communities they live in, committing the most heinous violent acts against their victims. The streets of San Francisco and the surrounding communities are safer when criminal gang members are held to account for their crimes,” said Special Agent In Charge King. “I’m proud of our agents’ exhaustive investigative work, together with the San Francisco Police Department and the U.S. Attorney’s Office, in bringing these subjects to justice. We also appreciate the law enforcement assistance with yesterday’s successful criminal arrests provided by the South San Francisco Police Department, the Mountain View Police Department and the San Mateo County Gang Intelligence Unit.”

According to the superseding indictment, the defendants were members of the transnational criminal organization MS-13.  MS-13 operates in El Salvador, Honduras, Guatemala, Mexico, and at least 20 states in the United States.  The superseding indictment describes how the 20^th Street clique of MS-13 relies on crime to operate, including to avoid detection by law enforcement, to initiate new recruits, to enhance the reputation of the gang and individual gang members, to maintain control of drug distribution channels, and to intimidate people who might testify against or otherwise defy the gang. 

In this case, the superseding indictment alleges 14 of the defendants conspired to engage in racketeering for the purpose of preserving the power, territory, reputation, and profits of the local MS-13 clique, known as MS-13 20^th Street.  The superseding indictment describes how MS-13 20^th Street members bear tattoos, wear certain colors, and display gang signs to demonstrate allegiance to the clique.  Also described in the superseding indictment is how the gang seeks to maintain control of drug “turf” by relying on robbery, extortion, and other violent crimes, including stabbings and shootings. 

Listed in the superseding indictment are dates on which particular defendants allegedly committed crimes to further the purposes of the gang.  For example, the superseding indictment alleges that, on September 16, 2016, defendants Alexis Cruz Zepeda, a/k/a Zorro, and Kevin Reyes Melendez, a/k/a Neutron, fired shots at a suspected gang rival.  Cruz Zepeda and Reyes Melendez then fled the scene in a vehicle allegedly driven by Ronaldy Dominguez, a/k/a “Smokey,” who, after a high-speed chase, evaded police by driving the wrong way down the Vermont Street off ramp of Highway 101.  The victim suffered five gunshot entry and exit wounds but survived.  Similarly, the superseding indictment alleges that, on November 26, 2017, when MS-13 gang members attempted to extort cash and drugs from street dealers, defendant Elmer Rodriguez, a/k/a Gordo, shot a victim in the chest at close range with a 12-gauge shotgun.  Documents filed by the government in the case include a memorandum arguing that the violent nature of the alleged crimes should be considered when the court makes decisions regarding pre-trial detention.  The government’s filings include surveillance footage allegedly depicting an attack described in paragraph 26 of the superseding indictment.  The video of the incident can be viewed at the following link: https://youtu.be/waUtxpqZEGM. 

In all, the superseding indictment charges 10 crimes of violence allegedly perpetrated by the defendants.  The charges pending against each defendant are as follows:

The court also may order additional terms of supervised release, fines, and restitution.  Nevertheless, 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. 

An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. 

The defendants are scheduled to make initial federal court appearances before U.S. Magistrate Court Judge Jacqueline Scott Corley today at 11:30 a.m.

This case is being prosecuted by the Organized Crime Strike Force of the Office of the United States Attorney.  The prosecution is the result of an investigation by HSI and the San Francisco Police Department. 

SOUTH BEND - William Shaifer, age 34, of Michigan City, Indiana was sentenced in South Bend by United States District Court Judge Damon R. Leichty for possession of firearms by a felon, announced U.S. Attorney Thomas L. Kirsch II.

Mr. Shaifer was sentenced to 180 months in prison followed by 2 years of supervised release. 

According to documents in this case, over the course of six days in September of 2018, William Shaifer provided an individual with five firearms, crack cocaine, and marijuana. Shaifer sold two handguns and three long guns, including a MAK-90 rifle with an extended magazine. Shaifer’s prior felony convictions include two separate convictions for dealing cocaine.

This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the LaPorte County Drug Task Force and the Michigan City Police Department. This case was handled by Assistant United States Attorneys Molly E. Donnelly and Jerome W. McKeever.

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CHICAGO — A federal judge in Chicago has sentenced a contractor to more than three years in prison for paying bribes to the mayor of Markham to maintain and expand business with the south suburb.

MICHAEL JARIGESE, 67, of Frankfort, was convicted last year on nine counts of wire fraud and one count of bribery.  The jury also convicted Mokena-based TOWER CONTRACTING LLC on the same charges.  Jarigese was Tower’s president when he paid more than $80,000 in bribes to Markham Mayor DAVID WEBB JR. to maintain contracting work and obtain future business from the city.  To conceal the bribes, Jarigese provided Webb with a false invoice and used coffee cups to hide cash payments.  In exchange for the money, Webb took official action that benefited Jarigese and Tower, such as helping to award the company a multi-million dollar construction project.

U.S. District Judge Robert W. Gettleman on Thursday sentenced Jarigese to three years and five months in prison.  Judge Gettleman fined Tower Contracting $1.2 million and sentenced it to four years of probation.

The sentences were 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 U.S. Securities and Exchange Commission provided valuable assistance.

“By bribing Webb, Jarigese rigged the system, ensuring that Tower’s uncompetitive and unchallenged proposals were the only option presented to the Markham City Council,” Assistant U.S. Attorneys Steven J. Dollear, Heather K. McShain and Georgia N. Alexakis argued in the government’s sentencing memorandum.  “Markham did not get the best value for each of the construction projects completed by Tower; instead, they were subject to a corrupt relationship between Jarigese, Tower, and Webb.”

Webb, who served as mayor of Markham from 2001 to 2017, pleaded guilty prior to trial and admitted participating in the scheme.  Webb’s sentencing has not yet been scheduled.

A fourth defendant, THOMAS SUMMERS, owner of an Alsip-based sewer business, was tried separately and convicted last year of making false statements to the FBI and IRS.  Summers is set to be sentenced by Judge Gettleman on April 28, 2020.

INDIANAPOLIS – A federal grand jury in Indianapolis, Indiana, returned a 12-count indictment against two officers – Joseph Chase Winkle, 34, and Jeremy Gibson, 30 – and one sergeant, Joseph Krejsa, 50, of the Muncie Police Department for their roles in using excessive force against arrestees and attempting to cover up the misconduct. Today’s indictment was announced by Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Josh Minkler for the Southern District of Indiana, and FBI Indianapolis Acting Special Agent in Charge Robert Middleton.

“No one is above the law,” Minkler said. “The civil rights violations alleged by the grand jury’s indictment are very serious. Unfortunately, misconduct by a few can shake the public’s confidence in the many men and women in law enforcement who proudly and professionally protect the public day in and day out. Today’s indictment should make clear the commitment of this Office and the Department of Justice to reassure the public and hold accountable those who violate the civil rights of others even though they wear a uniform.”

“Today’s indictment sends a strong message that those who violate their oath to protect and serve the public will be held accountable for their actions,” said Acting Special Agent in Charge Robert Middleton, FBI Indianapolis. “The FBI is committed to preserving public trust,

especially in those who have sworn to uphold the law. To this end, the FBI will vigorously pursue civil rights violations.”

The indictment charges Winkle with nine felony offenses, Gibson with one felony offense, and Krejsa with two felony offenses. Winkle is charged with depriving four arrestees of their rights to be free from excessive force (resulting in bodily injury and/or involving the use of a dangerous weapon), in violation of 18 U.S.C. § 242, and writing false reports about his use of force against those four arrestees and two additional arrestees, in violation of 18 U.S.C. § 1519. According to the indictment, Winkle’s actions resulted in one of these arrestees suffering serious injuries and another arrestee being knocked unconscious.

Gibson is charged with one count of violating 18 U.S.C. § 242 for depriving an arrestee of his right to be free from excessive force by stomping on and delivering knee strikes to the arrestee’s head, which resulted in bodily injury and involved the use of a dangerous weapon.

Krejsa is charged with two counts of violating 18 U.S.C. § 1519 for writing false reports related to two of Winkle’s excessive force incidents. According to the indictment, on one occasion, Krejsa minimized the level of force used by Winkle during one arrest, and, on another occasion, falsely represented that a different Muncie Police Department sergeant cleared Winkle of his use of force when it was actually Krejsa who conducted that review.

The maximum penalties for the charged crimes are 10 years of imprisonment for each of the deprivation-of-rights offenses and 20 years of imprisonment for each of the false report offenses.

An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.

The Federal Bureau of Investigation conducted the investigation. Trial Attorneys Mary J. Hahn and Katherine G. DeVar of the Civil Rights Division and Assistant United States Attorney Nicholas J. Linder are prosecuting the case.

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 identify, investigate, and prosecute criminal civil rights violations, including those perpetrated by law enforcement officers. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 7.1.

Tampa, Florida, Kieran Donnell Floyd (20, St. Petersburg) has pleaded guilty to robbery and brandishing a firearm during that robbery. He faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.

According to the plea agreement, on August 18, 2019, Floyd entered a Shell gas station in St. Petersburg and pulled a firearm out of his shorts as he approached the cashier. Floyd pointed the firearm at the cashier and demanded money. The employee complied and handed Floyd $250 from the cash register.

This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tampa Police Department, and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Charlie D. Connally.

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety-one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Ocala, Florida – Senior U.S. District Judge James D. Whittemore has sentenced Kevin Gene Hart (31, Ocala) to 35 years in federal prison for conspiring to distribute cocaine, heroin, and fentanyl. The court also sentenced Hart to supervised release for the remainder of his life following his release from prison.

A federal jury had found Hart guilty after a four-day jury trial on November 7, 2019. Hart was indicted, along with five co-conspirators, on March 27, 2019.

According to court documents and evidence presented at trial, between January 2012 and May 2019, Hart was the leader of a sprawling drug trafficking conspiracy that distributed hundreds of kilograms of cocaine and heroin through a network of stash houses in Marion County. Large quantities of the heroin were laced with fentanyl.

The following co-defendants previously pleaded guilty for their roles in this case and were sentenced to the following terms of imprisonment: Gary Eugene Hayes (15 years); Darren Michael Beatty (15 years); Jeremy Jermaine Willis (20 years); Kathy Suleydy (8 years, 1 month); and Deandre Amaad Williams (10 years).

This case was investigated by the Drug Enforcement Administration, the Ocala Police Department, the Unified Drug Enforcement Strike Team (UDEST), the Marion County Sheriff’s Office, and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney William S. Hamilton.

NEWARK, N.J. – A Florida man appeared in court today on charges that he laundered funds related to a $30 million wire fraud scheme, U.S. Attorney Craig Carpenito announced.

Denis Sotnikov, 36, of Hallandale Beach, Florida, is charged by complaint with one count of money laundering. He appeared today before U.S. Magistrate Judge Jared M. Strauss in a Fort Lauderdale, Florida, federal court and was detained.

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

Between April 2018 and March 2020, individuals engaged in an internet-based financial fraud scheme, which generally involved the creation of fraudulent websites to solicit funds from individuals seeking to invest money. At times, the websites were designed to closely resemble websites being operated by actual, well-known, and publicly reputable financial institutions; at other times, the fraudulent websites were designed to resemble financial institutions that seemed legitimate, but did not, in fact, exist.

Victims of the fraud scheme typically discovered the fraudulent websites via internet searches. The fraudulent websites advertised various types of investment opportunities, most prominently the purchase of certificates of deposit, or CDs, with higher than average rates of return on the CDs to lure potential victims.

To date, at least 70 victims of the fraud scheme nationwide, including in New Jersey, have collectively transmitted at least $30 million that they believed to be investments.

In many instances, the victims would contact an individual or individuals via telephone or email, as directed on a fraudulent website, who provided the victims with applications and wiring instructions for the purchase of a CD. The funds wired by the victims would then be moved to various domestic and international bank accounts, including accounts in Russia, the Republic of Georgia, Hong Kong, and Turkey. None of the victims received a CD after wiring the funds.

Sotnikov received funds from at least 18 victims of the fraud scheme, totaling $6 million, in accounts at various domestic banks that were controlled by him or by a close relative. Of this amount, $3.7 million was either frozen by the banks or returned to victims, and $707,380 was wired overseas by Sotnikov. The remaining stolen funds – $1.5 million – were transferred to numerous other accounts controlled by Sotnikov and used to fund personal expenditures, including down payments on several luxury vehicles, purchases at high-end retail stores such as Louis Vuitton, Tiffany & Co., and Cartier, rent exceeding $9,000 per month on a home in Florida, several vacations, living expenses and bills.

The money laundering charge is punishable by a maximum of 20 years in prison and a fine of up to $500,000, or twice the value of the property involved, whichever is greater.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Sotnikov and several companies associated with him today based on the same conduct.

U.S. Attorney Carpenito credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark. He also thanked the SEC for the assistance provided by its Enforcement Division.

The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Jamie L. Hoxie of the U.S. Attorney’s Cybercrimes Unit in Newark.

The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.

Defense counsel: Roman Groysman Esq., Fort Lauderdale

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Ahman Walton (40, Tampa) guilty of conspiring to distribute cocaine and heroin, and distributing 100 grams or more of heroin. Walton faces a maximum penalty of 40 years in federal prison. His sentencing hearing has not yet been scheduled.

Walton had been indicted on July 11, 2019.

According to testimony and evidence presented at trial, Walton was responsible for bringing cocaine into Florida from the Bahamas. In addition, in September 2018, he helped his co-conspirator procure a quarter kilogram of heroin of for nearly $20,000.

This case was investigated by the Tampa Police Department, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Natalie Adams and Gregory T. Nolan.

This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation and was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

BILLINGS—Two Billings men accused of crimes stemming from an investigation into sex trafficking, drug distribution and firearms violations were arraigned this week on charges in a multi-count indictment, U.S. Attorney Kurt Alme said.

William Maurice Newkirk, 39, pleaded not guilty today to 15 counts, while co-defendant Djavon Lamont King, 29, pleaded not guilty on Thursday to six counts.

The indictment is merely an accusation and the defendants are presumed innocent until proven guilty.

U.S. Magistrate Judge Timothy J. Cavan presided. Newkirk and King are detained pending further proceedings.

If convicted of the most serious crime, Newkirk and King face a mandatory minimum 15 years to life in prison, a $250,000 fine and five years to a lifetime of supervised release.

The indictment charges Newkirk with 15 counts, including four counts of sex trafficking by force, fraud and coercion, transportation of a person with intent to engage in prostitution, sex trafficking of a minor and by force, fraud and coercion, sex trafficking of a minor, attempted sex trafficking of a minor, possession with intent to distribute methamphetamine, possession with intent to distribute cocaine, two counts of distribution of cocaine to person under the age of 21, possession of a firearm in furtherance of a drug trafficking offense and two counts of prohibited person in possession of a firearm.

The indictment charges King with six counts, including two counts of sex trafficking by force, fraud and coercion, possession with intent to distribute cocaine, two counts of conspiracy to possess with intent to distribute cocaine and distribution of cocaine to a person under the age of 21.

The indictment alleges that from about 2018 through 2019, the defendants became involved in commercial sex in Billings and the distribution of illegal narcotics. The indictment also alleges that Newkirk illegally possessed firearms during this time.

Assistant U.S. Attorneys Zeno Baucus and Bryan Dake are prosecuting the case, which was investigated by the FBI.

Pacer case reference.  20-25.

If the above case are of interest to your media organization and the community it serves, we encourage you to monitor its progress through the U.S. District Court calendar and the PACER system.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

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