ALBANY, NEW YORK – Carlos Rivera, age 43, of Chatham, New York, was sentenced today to 60 months in prison for possession of a firearm by a felon and possession with the intent to distribute cocaine.

The announcement was made by United States Attorney Grant C. Jaquith; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; and Columbia County Sheriff David P. Bartlett.

Rivera was also ordered to serve a period of 6 years of supervised release following his term of incarceration, and to forfeit to the government $7,000 in proceeds from his drug trafficking activity, as well as a Mossberg 12 gauge shotgun. 

Rivera admitted that in September 2018, he possessed approximately 479.5 grams of cocaine, including 79.5 grams of cocaine in his bathroom, and 400 grams of cocaine in his garage hidden in plastic containers that the he had magnetically attached to his car; a scale; and drug packaging material.  In Rivera’s bedroom, officers found a Mossberg 535 12 gauge shotgun; 12 gauge ammunition on the floor near the shotgun; additional ammunition in his closet; and $5,000 in his dresser. 

This case was investigated by the DEA and the Columbia County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Troy Anderson.

BOSTON – A Canadian national who resides in Los Angeles was sentenced today in federal court in Boston for his role in a massive global securities fraud scheme that sought to generate $15 million in fraudulent proceeds.

Morrie Tobin, 57, who resides in Los Angeles, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison, two years of supervised release and ordered to pay a fine of $100,000 and forfeiture of $4 million. In February 2019, Tobin pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud.

From 2013 to 2018, Tobin and co-conspirators Milan Patel, Matthew Ledinva and Roger Knox conspired to commit securities fraud by disguising their ownership and control of various microcap securities, and employing paid promotional campaigns and manipulative trading techniques to artificially inflate the price and trading volume of those stocks so that Tobin and others could secretly sell their shares of those stocks at a substantial profit. 

Tobin and others acquired the majority of the shares of GS Valet, a public shell company with minimal assets and operations, and then renamed it International Metals Streaming Corporation (IMST). Tobin, Patel and Ledinva then distributed the shares of IMST among four offshore entities registered in the names of various parties. From December 2016 to June 2017, Tobin and the co-conspirators orchestrated a reverse merger of IMST into Environmental Packing Technology (EPTI), which became a publically-traded company, and then caused 10.5 million shares held in the offshore entities to be transferred to Knox’s asset management firm and a separate brokerage firm. During this time, Tobin and the co-conspirators raised $2.9 million in private placement of shares of EPTI, and used a portion of this money to pay a third-party stock promoter to artificially promote the shares of EPTI. From June 9 to June 27, 2017 – when the Securities and Exchange Commission halted trading in EPTI shares – the co-conspirators directed the sale of EPTI shares held by the offshore entities, thereby generating proceeds of approximately $1,519,182. At sentencing, the Court found that Tobin and his co-conspirators intended to generate $15 million in proceeds based on the number of shares under their control.

Patel pleaded guilty in February 2019 and is scheduled to be sentenced on Thursday, Aug. 13, 2020. Ledinva was sentenced in June 2020 to 30 months of probation and ordered to pay a fine of $50,000. Knox previously pleaded guilty and is currently scheduled to be sentenced on Sept. 30, 2020.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Boston regional office of the SEC provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen and James R. Drabick of Lelling’s Securities, Financial and Cyber Fraud Unit are prosecuting the case.

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Tahjmalyk Porter, 24, Middleton, Wisconsin, pleaded guilty and was sentenced today by U.S. District Judge James Peterson to two years of probation for being a felon in possession of a firearm.

On November 12, 2019, Porter was in an area gun store and seen on video handling a semiautomatic rifle.  Several days later Porter was captured on video in another area gun store handling firearms there as well.  Porter was a felon based on a 2017 conviction for strangulation in Dane County Circuit Court.

Judge Peterson stated that he was concerned that Porter was associating with individuals who were making straw purchases of firearms and selling them in the community.  The Court noted the alarming number of shootings in Madison recently and the “extraordinary risk” posed by illegal possession and use of firearms.  Judge Peterson also noted Porter’s criminal history including a conviction for domestic violence and a positive drug test which was a violation of his pretrial release.  Despite those concerns however, Judge Peterson sentenced Porter to probation rather than prison based on the fact that he did not try to purchase a gun and there was no evidence that he had sold illegal guns into the community.

The charge against Porter has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime.  The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.

The charge against Porter was the result of an investigation conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sun Prairie Police Department.  The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan. 

MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Carlos Wilson, 32, Madison, Wisconsin pleaded guilty and was sentenced today by Chief U.S. District Judge James D. Peterson to 48 months in federal prison for distributing crack cocaine.  

On three separate occasions in November 2019, Wilson sold drugs to an undercover police officer. Wilson sold crack the first time, and sold both heroin and cocaine during the other two deals.  Wilson was arrested on November 22, 2019 with 74 individually wrapped baggies of a mixture containing Fentanyl. 

At the time of his arrest, Wilson was on federal supervised release after serving a 60-month prison sentence for selling heroin. Judge Peterson revoked Wilson’s supervised release and sentenced him to 18 months in prison to be served concurrently with the new federal sentence.

Judge Peterson said he was disappointed to see Wilson in his courtroom again for another serious drug crime, but expressed hope that after this sentence he would gain some maturity and stop selling drugs.

The charge against Wilson was the result of an investigation conducted by the Dane County Narcotics Task Force.  The prosecution of the case has been handled by Assistant U.S. Attorney Laura A. Przybylinski Finn. 

CHARLESTON, W.Va. – United States Attorney Mike Stuart announced the release of a ‘Back the Blue’ video supporting law enforcement in West Virginia and across the country. The video features Stuart, along with several staff members of the United States Attorney’s Office for the Southern District of West Virginia, voicing support for law enforcement.

“I’m proud as the United States Attorney for the Southern District of West Virginia to make it clear that I back the blue, that we back the blue, and that our progress in keeping our streets safe is a commitment that we share with our federal, state and local partners,” said United States Attorney Mike Stuart. “Recent efforts to defund, undermine and weaken the police will only make our communities less safe. The police are not the enemy. They are brave, courageous public servants. Our police officers should never be a target for those attempting to undermine public safety. God forbid if those that attempt to undermine our police are successful in their efforts. The public needs police protection now more than ever, especially in light of the violence surging across the country. I encourage members of the public to show their support for law enforcement all across this nation. We cannot continue to demoralize our police; we need to lift them up and have their backs as they work tirelessly to protect us every day. We keep them and their family members in our prayers.”

The video can be seen on the district’s YouTube page.

Follow us on Twitter:SDWVNewsand USAttyStuart

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BOSTON – The owner of Everett and Worcester auto body shops was charged today with a payroll tax scheme resulting in a $292,231 tax loss.    

Adam Haddad, 43, of Shrewsbury, was charged and has agreed to plead guilty to three counts of aiding the preparation of false tax returns.

As alleged in the Information, for tax quarters ending in March 2015 through June 2017, Haddad paid a significant portion of the wages to employees of his company, Accurate Collision, Inc. “under the table.”  In doing so, Haddad caused Accurate Collision, Inc. to file false returns with the IRS which underreported the actual wages he had paid his employees as well as the employment taxes due to the IRS. In total, Haddad caused a loss to the IRS of at least $292,231.

The charging statue provides for a sentence of up to three years in prison, one year 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 and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial and Cyber Fraud Unit is prosecuting the case.

BOSTON – A Connecticut man has been charged in federal court in Boston with firearm trafficking.

Brian McCarthy, 33, of Bridgeport, Conn., was charged with one count of dealing firearms without a federal license. McCarthy will make an initial appearance in federal court in Boston at a later date. He has been in state custody since his arrest on July 31, 2020.

According to the criminal complaint, between June 17 and July 31, 2020, McCarthy travelled to Massachusetts and sold an undercover officer two Glock-style Privately Made Firearms (PMF) he had personally fabricated. PMFs are firearms that are not made by firearm manufacturers; instead, firearm manufactures sell individual buyers firearm parts, and the buyer uses various firearm drilling tools to construct and assemble the parts into a functional firearm.  PMFs are also known as “ghost guns” because they are not serialized, and are thus, untraceable.  

Following the July 31 sale, McCarthy was taken into custody. The search of his apartment resulted in the seizure of two additional Glock-style PMFs, one AR15/M4-type rifle upper receiver, accessories for AR15/M4 rifles, multiple semi-automatic magazines, approximately 250 rounds of ammunition, and various firearm construction and assembly tools.

The charge of dealing firearms without a federal license provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; and Bristol County District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.

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

The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CHRISTOPHER WATSON, age 29, of Harvey was sentenced on August 11, 2020 to 57 months imprisonment before U.S. District Judge Wendy Vitter for conspiracy to commit bank fraud and wire fraud in violation of Title 18, United States Code, Sections 1343, 1344, and 371, and aggravated identity theft in violation of Title 18, United States Code, Section 1028A.  The sentence imposed by Judge Vitter reflects a sentence of 33 months for the conspiracy conviction in addition to 24 months on the aggravated identity theft conviction, to run consecutively.

WATSON admitted to an elaborate fraud scheme involving use of stolen or fraudulent identities to obtain vehicle financing. WATSON, who previously worked as a used car salesman, submitted numerous fraudulent loan applications to financial institutions and automobile lenders, sometimes using the personal identifying information of his customers without their authorization and other times using stolen identities. Throughout the course of the conspiracy, WATSON used either unauthorized or counterfeit information in order to defraud financial institutions and lenders, including USAA Financial, an FDIC-insured financial institution, Westlake Financial Services, and United Auto Credit Corporation, among other victims. WATSON admitted to using the identity of a USAA member to submit a fraudulent auto loan application to USAA Financial. In some instances, WATSON utilized the dealer license numbers and names of different legitimate car dealerships and forged their names as sellers of the vehicles on the fraudulent loan applications.

Pursuant to the plea agreement, WATSON has agreed to pay restitution of $433,949.49 to the victims of his fraud scheme, consistent with the loss amount in this matter. Judge Vitter also imposed a supervised release term of two years following WATSON’s release from prison. 

U.S. Attorney Peter G. Strasser praised the work of the Jefferson Parish Sheriff’s Office and the United States Secret Service Financial Crimes Taskforce in investigating this matter. Assistant United States Attorney Shirin Hakimzadeh is in charge of the prosecution.

CLARKSBURG, WEST VIRGINIA – Steven Somers, of Clinton, Maryland, was sentenced today to 78 months incarceration for drug and firearms charges, U.S. Attorney Bill Powell announced.

Somers, age 25, pled guilty to one count of “Unlawful Possession of a Firearm as Drug User” and one count of “Possession with Intent to Distribute Marijuana” in January 2020. Somers admitted having marijuana in July 2019 in Monongalia County, and admitted to illegally having a 5.7x28mm caliber pistol in June 2018 in Lewis County.

“Drugs and firearms are not only a dangerous combination, it is an illegal one. When combined with witness intimidation, the significant sentence was justified and in the interests of our communities,” said Powell.   

During a June 2018 traffic stop, Lewis County deputies found Somers in possession of counterfeit currency, a firearm, ammunition, marijuana, and an amphetamine/MDMA mix commonly known as “molly.” When federal agents executed a search warrant at Somers’ Monongalia County residence in July 2019, they found additional firearms, ammunition, THC “vape” cartridges, psychoactive mushrooms, over $12,000 in cash, and an illegal marijuana grow operation.  

ATF testified today regarding several firearms that were purchased for Somers by someone else. One of those firearms was seized by Metropolitan Police Department in Washington, D.C. and appeared to be in the possession of a convicted murder. Another firearm was found in the hands of a high school student in Maryland as he attempted to take it into the school. Three of those firearms have yet to be recovered.

“Armed drug traffickers represent a violent and persistent threat to our communities, especially those who would seek to obstruct justice by threatening witnesses,” said R. Shawn Morrow, Special Agent in Charge of ATF’s Louisville Field Division, which includes West Virginia. “ATF will continue to prioritize investigations of these offenses.” 

Prior to today’s sentencing, U.S. District Judge Thomas S. Kleeh had revoked Somers’ bond, after hearing testimony that Somers threatened a witness in an effort to influence his potential testimony. 

Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. 

U.S. District Judge Thomas S. Kleeh presided.

SAN FRANCISCO – A complaint was unsealed today in San Jose alleging that Mario Orozco and Teodoro Ayon-Ramos distributed methamphetamine, announced United States Attorney David L. Anderson and Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux.  Both defendants were arrested at their residences, one in San Jose and the other in Los Banos, on August 11, 2020.  

According to the complaint, the defendants sold approximately four ounces of methamphetamine to a cooperating source working with law enforcement.  The transaction occurred in San Jose.  The day before, Orozco agreed to sell the cooperating source approximately four ounces of methamphetamine for $3,500.  In addition, Ayon-Ramos met a cooperating source in San Jose on June 18, 2020, and delivered the methamphetamine.  The complaint alleges that Mario Orozco and Teodoro Ayon-Ramos violated statutes prohibiting drug distribution at 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)(viii).  

The defendants made their initial appearances in federal court in San Francisco on August 12, 2020.  They are currently being held in custody pending further proceedings.  Orozco’s next appearance is scheduled for 10:30 a.m., on August 14, 2020, before U.S. Magistrate Judge Kandis A. Westmore.  Ayon-Ramos’ next appearance is scheduled for 10:30 a.m., August 17, 2020, before U.S. Magistrate Judge Thomas S. Hixson.  Both court appearances are scheduled to address issues regarding detention.

In documents filed in connection with the detention hearings, the government argued that defendants were engaged in a scheme to smuggle methamphetamine dissolved in buckets of paint to avoid discovery and to extract the methamphetamine at a warehouse and convert the drugs into its crystal form.  According to the government, the defendants used a warehouse-type structure located on Stockton Avenue, San Jose, Calif., to process the drugs. 

A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the offense charged in the complaint, the defendants each face a maximum sentence of 40 years and a minimum sentence of five years, and a fine of $5,000,000, for each violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)(viii).  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 was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
 

DENVER – United States Attorney Jason R. Dunn today announced that Cassidy Morgan Ahearn, age 19, of Boulder County, Colorado, was sentenced today to serve two years of probation, which includes 12 months of home detention, for making a false statement during the acquisition of a firearm.  She appeared at the hearing remotely on bond.  The Denver Field Division of the ATF joined in today’s announcement. 

According to the stipulated facts in Ahearn’s plea agreement, on May 8, 2019, the defendant purchased a 5.56 caliber rifle from EZ Pawn in Northglenn, Colorado, which is a federally licensed firearms dealer.   On the date of the purchase, Ahearn signed a Department of Justice, Bureau of Alcohol, Tobacco, Firearms, and Explosives Form, where she represented that she was the actual buyer of the firearm. In reality, the defendant bought the firearm for and at the request of a friend.  The friend went inside the store with her.  The defendant gave the firearm to the friend about a week after purchasing it.  The firearm was later found at the scene of a homicide, although it was not used to commit the homicide.

“My office, working closely with the ATF, has an important responsibility to ensure that firearms are bought and possessed legally,” said U.S. Attorney Jason Dunn.  “Lying on a form to purchase a firearm can result in a felony conviction and have other serious consequences, including jail time and loss of the right to possess a firearm in the future.”

“Lying on an ATF form in order to purchase a firearm is not just a paper crime. It arms individuals who are prohibited from possessing firearms and puts guns in the hands of criminals,” said ATF Special Agent in Charge David S. Booth.  “ATF is committed to investigating federal firearms crimes like this one and we are pleased to assist the United States Attorney’s officein this successful prosecution.”

The sentence was pronounced by U.S. District Court Judge Christine M. Arguello today, August 12, 2020.  Ahearn was charged by indictment on August 7, 2019, and pleaded guilty on January 15, 2020.  The Denver Field Office of the ATF conducted this investigation.  The defendant was prosecuted by Assistant U.S. Attorney Rajiv Mohan.

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. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado.  Related court documents can be found on PACER by searching for Case Number 19-cr-355.

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.

            ALBUQUERQUE, N.M. –Yvon Loretto, of Nambe Pueblo, New Mexico, pleaded guilty in federal court in Albuquerque, New Mexico, on August 11th to abusive sexual contact in Indian Country.

            According to Loretto’s plea agreement, he sexually abused the minor victim between October 1, 2016, and October 31, 2016, in Rio Arriba County, New Mexico, within the boundaries of the Nambe Pueblo Reservation. Loretto, an enrolled member of Nambe Pueblo, admitted in a plea agreement to causing intentional and unlawful sexual contact with a minor under the age of twelve with the intent to gratify Loretto’s sexual desires.

            Loretto is currently in custody awaiting sentencing.  He faces from 60 to 180 months in prison under the terms of his plea agreement.  Additionally, should the court accept the plea agreement, Loretto will have to register as a sex offender upon his release from prison.

            The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph M. Spindle is prosecuting the case.

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TOPEKA, KAN. – A Kansas man was sentenced Wednesday to six years in federal prison for heroin trafficking, U.S. Attorney Stephen McAllister said.

 Terrance Wills, 42, Kansas City, Kan., pleaded guilty to one count of possession with intent to distribute heroin. In his plea, Wills admitted he met two other men, who had transported the heroin from Texas, at a rest area near Topeka. Investigators had been following the load – almost five pounds of heroin -- since the couriers were stopped on Highway 54 near Meade, Kan.

McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Stephen Hunting for their work on the case.

BOSTON – A Worcester man was arrested yesterday and charged in connection with transporting stolen laptops.

Christian Diaz, 31, was indicted on one count of interstate transportation of stolen goods. Diaz will be arraigned in federal court at a later date.

According to the indictment, from Aug. 11, 2015 until Sept. 30, 2015, Diaz transported stolen laptops in interstate commerce. 

The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release, a fine of up to $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement.  Assistant U.S. Attorney Danial E. Bennett of Lelling’s Worcester Branch Office is prosecuting the case. 

The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – The U.S. Attorney’s Office has reached a $3.5 million settlement with specialty pharmacy Advanced Care Scripts, Inc. (ACS), to resolve allegations that ACS conspired with pharmaceutical manufacturer Teva Neuroscience, Inc. (Teva), to enable Teva to pay kickbacks to Medicare patients taking Copaxone, a Teva drug approved for treatment of multiple sclerosis.

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.

From approximately October 2006 through January 2015, ACS served as a contracted vendor for Teva and provided, among other things, benefits investigation services to certain patients who had been prescribed Copaxone. As part of today’s settlement, ACS acknowledged certain facts, including that it relayed data from two foundations, Chronic Disease Fund (CDF) and The Assistance Fund (TAF), to Teva so that Teva could correlate its payments to the foundations with the amounts of money the foundations spent on Copaxone patients. ACS further acknowledged that, when the foundations lacked funding and were not accepting new applications for Medicare co-pay coverage, ACS provided regular updates to Teva on the number of Medicare Part D patients serviced by ACS who had prescriptions for Copaxone, met the criteria for foundation co-pay coverage, and were awaiting foundation co-pay coverage. At least one ACS employee understood that Teva would use the number of waiting Copaxone patients to help determine the amount of its next payment to CDF or TAF. Teva sometimes provided ACS with advance notice of its payments to CDF or TAF. Once ACS learned that CDF or TAF had re-opened its co-pay fund, ACS promptly would send the foundation a “batch file” that consisted almost entirely of Copaxone patients’ applications for Medicare co-pay coverage. Thereafter, ACS often received notice from the foundation that most or all of the applications submitted by ACS had been approved to receive co-pay funding. When a Copaxone patient’s application was approved, ACS no longer included that patient in its reports to Teva on the number of Copaxone patients awaiting foundation co-pay coverage.

“According to the allegations in today’s agreement, ACS knowingly enabled a large pharmaceutical manufacturer to pay kickbacks to Medicare patients taking its expensive drug,” said Andrew E. Lelling, United States Attorney for the District of Massachusetts. “Such conduct undermined the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices. We commend ACS for expeditiously resolving this matter.”

“Advanced Care Scripts (ACS) willingly served as a pawn in a kickback scheme, putting profit over patient needs, by helping Teva to time its foundation payments to boost sales of Teva's own drug, which ACS then dispensed,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s settlement should be a warning to others that the FBI will continue to aggressively go after vendors like ACS who conspire with pharmaceutical companies to disguise kickbacks as charitable contributions, at the expense of hard-working taxpayers who support the Medicare program.”

“This settlement demonstrates the OIG’s commitment to safeguarding the Medicare program from kickback arrangements,” said Phillip M. Coyne, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office. “I appreciate the partnership with the Massachusetts U.S Attorney’s Office in identifying and prosecuting this type of fraud.”

The government previously entered into settlement agreements with TAF and CDF.

U.S. Attorney Lelling, Boston FBI SAC Bonavolonta, and HHS-OIG SAC Coyne made the announcement today. The matter was handled by Assistant U.S. Attorneys Abraham George, Gregg Shapiro, and Evan Panich of Lelling’s Affirmative Civil Enforcement Unit, with assistance from Trial Attorneys Douglas Rosenthal and Nelson Wagner of the Department of Justice’s Civil Division.

ALEXANDRIA, Va. – A previously convicted felon was sentenced yesterday to over four years in prison for his involvement in a gang-related shootout at a recording studio in Alexandria in July 2019.

“A convicted felon in possession of a firearm poses a serious danger to the safety of our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Reginald Tolliver III has an extensive criminal record that includes assault and battery, and the distribution of narcotics. In this case, Tolliver illegally possessed a firearm, which he then utilized to engage in a gang-related shootout in broad daylight. Far too often, especially in recent months, we see the devastating result to communities and families when criminals engage in armed shootouts to settle their disputes. All communities should have the freedom to be outside without fear of being hit by gang cross-fire. We will continue to prosecute cases such as these, which place innocent lives in danger.”

According to court documents, Tolliver, 23, of Woodbridge, unlawfully possessed and fired a SigSauer semi-automatic pistol during a gang-related shootout, on July 2, 2019, at a recording studio in Alexandria. Surveillance video footage captured two masked individuals exit a vehicle and fire at a vehicle occupied by Tolliver and his associates. Video captured Tolliver fire his pistol at the masked individuals before police responded to the scene to find Tolliver and an associate wounded by gunfire.

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; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr. Assistant U.S. Attorney Nicholas U. Murphy II 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-374.

LAS VEGAS, Nev.– A Nevada woman was charged in a criminal complaint unsealed Wednesday with fraudulently seeking over $1 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Nicholas A. Trutanich of the U.S. Attorney’s Office for the District of Nevada.   

Karen Chapon, aka Karen Hannafious, 50, of Las Vegas, Nevada, was charged by criminal complaint in the District of Nevada with one count of bank fraud and one count of making false statements to a financial institution.  The complaint alleges that, in support of her six fraudulent loan applications, Chapon made numerous false and misleading statements about her companies’ respective business operations and payroll expenses, and falsely denied that she had been convicted of a felony in the past five years.   

The complaint also alleges that, in further support of the fraudulent loan applications, Chapon submitted fake and altered documents, including fraudulent federal tax filings.  For example, Chapon misrepresented to a lender that, in 2019, her company Heavenly Tahoe Properties paid several million dollars in employee wages.  In support of Chapon’s loan application, she submitted a fraudulent IRS filing that appeared to be Heavenly Tahoe Properties’ 2019 Form 940 federal unemployment tax return showing that the company paid nearly $2.5 million in employee wages that year.  In reality, the IRS has no record of the company filing any 2019 tax returns, and publicly available records show that the company’s Nevada corporate registration is no longer valid.     

The government has executed seizure warrants recovering the majority of the nearly $600,000 in PPP loan proceeds that Chapon obtained in her alleged fraud, including more than $500,000 from the bank account of one of her companies and a Mercedes Benz SUV.     

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29.  It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.  One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent.  Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case was investigated by the FBI, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration’s Office of Inspector General.  Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the District of Nevada are prosecuting the case.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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.

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ST. GEORGE, UT – Lacey Nichole Crawshaw, 33, of St. George will serve 33 months in federal prison after pleading guilty to distribution of fentanyl.  U.S. District Judge David Nuffer imposed the sentence Wednesday in St. George.  Crawshaw will serve 36-months of supervised release when she finishes her prison sentence. There is no parole in the federal criminal justice system.

Crawshaw was charged with distribution of fentanyl after she sold counterfeit Oxycodone 30 mg pills containing fentanyl to a confidential source four times over a one-month period.  Each transaction included 10 to 30 pills.

Fentanyl is a potent synthetic opioid drug approved by the U.S. Food and Drug Administration for use as an analgesic (pain relief) and anesthetic. It is approximately 100 times more potent than morphine and 50 times more potent than heroin, according to a DEA fact sheet.  It is also one of the most dangerous cutting agents used by drug traffickers in making counterfeit pills, including oxycodone pills.  Lacing the counterfeit pill with fentanyl makes the drug cheaper to produce and can generate large profits for drug dealers.  It also increases the risk of overdose and loss of life since users may not know the pill they are buying contains fentanyl.

“Drug dealers in Utah should be on notice. If you deal in fentanyl, you will find yourself in federal prison where there is zero chance for parole. I have directed officers, agents and prosecutors that no case is too small for our review when it comes to fentanyl. It is too deadly of a substance to tolerate,” U.S. Attorney John W. Huber said today.

“This case is a perfect example of teamwork between the Washington County Drug Task Force, the DEA, and the United States Attorney’s Office. By now we’re all aware of the devastating effects fentanyl has on our communities, even in small quantities. This case illustrates the fact that it doesn’t matter the size of the case, we will collectively and tenaciously pursue drug dealers like Lacey Crawshaw,” Sgt. Sean Sparks of the Washington County Drug Task Force said today.

Crawshaw was charged in a four-counts of distribution of fentanyl in an indictment returned by a federal grand jury in December 2019.  She pleaded guilty to one count of distribution of fentanyl in a plea agreement reached with federal prosecutors in April.

As a part of the plea agreement, Crawshaw, also known as Lacey Nichole Crawshaw-Leavitt and Lacey Nichole Crawshaw-Chavarria, admitted that on Sept. 24, 2019, she knowingly and intentionally distributed fentanyl.  A Utah Bureau of Forensic Services senior forensic scientist determined that the tablets containing fentanyl that she distributed weighed approximately 3 grams. The plea agreement also included an understanding that relevant conduct that was either not charged or not included in the plea agreement could be taken into consideration by the court in determining a sentence in the case.

Assistant U.S. Attorneys from the St. George office of the United States Attorney’s Office prosecuted the case.  The case was investigated by members of the Washington County Drug Task Force and special agents with the DEA.