CHICAGO — An ongoing federal criminal investigation into the failure of a Chicago bank has resulted in charges against four new defendants, all of whom worked for the bank.

Washington Federal Bank for Savings was shut down in December 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans.  Last year, two Illinois attorneys – bank customer ROBERT M. KOWALSKI and his sister, JAN R. KOWALSKI – were indicted for allegedly defrauding Robert Kowalski’s creditors and the trustee in his bankruptcy case by concealing cash and property belonging to Robert Kowalski’s bankruptcy estate.  A second superseding indictment returned Thursday renewed the bankruptcy fraud charges against the Kowalskis and added four former Washington Federal employees to the case.  The new indictment also identified the primary creditor victim of the bankruptcy fraud as the Federal Deposit Insurance Corporation.  The employees allegedly conspired with Robert Kowalski and higher-ranking bank officials to embezzle at least $29 million in bank funds in the years preceding the closure.  The employees and the higher-ranking officials allegedly transferred the money to Robert Kowalski and others, often without any documentation, and falsified bank records to conceal the embezzlement from the OCC and the FDIC, the latter having become the receiver of the bank and provider of approximately $90 million to make account holders whole.

The new indictment charges Robert Kowalski, 58, of Chicago, with conspiracy to commit embezzlement and falsify bank records.  Also charged in the conspiracy are the four former bank employees: ROSALLIE C. CORVITE, 45, of Chicago, who served as Chief Financial Officer and Treasurer; JANE V. IRIONDO, formerly known as Jane V. Tran, 39, of Boise, Idaho, who served as Corporate Secretary; ALICIA MANDUJANO, 49, of Chicago, who worked as a loan servicer; and CATHY M. TORRES, 39, of Chicago, who worked as a loan officer.  The four employees also face individual counts of falsifying bank records.  In addition to renewing the bankruptcy fraud charges against Robert Kowalski and Jan Kowalski, 56, of LaGrange, the new indictment also adds several tax counts against Robert Kowalski for allegedly failing to file income tax returns and filing false personal and corporate returns for various years.

Arraignments in U.S. District Court in Chicago have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Kathy A. Enstrom, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Assistant Inspector for Investigations Sally Luttrell of the Department of the Treasury, Office of Inspector General; Joseph M. Ferguson, City of Chicago Inspector General; and Elissa Rhee-Lee, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the U.S. Trustee Program.  The government is represented by Assistant U.S. Attorneys Brian Netols, Michelle Petersen, and Jeremy Daniel.

The criminal investigation remains ongoing.

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

Tampa, Florida – U.S. District Judge Charlene Honeywell has sentenced Patrice Jackson (37, Bradenton) to 5 years and 10 months in federal prison for conspiracy to distribute controlled substances. Jackson, one of four members of a fraudulent opiate prescription drug conspiracy, pleaded guilty on October 23, 2019.

According to court documents, between August 2015 and August 2016, Jackson and her co-conspirators agreed to dispense and distribute prescription opiates through a forged-prescription scheme. Lucretia Mullan and another staff member at a local pain management clinic, forged prescriptions and sold them to Jackson, who then took them to nearby HP pharmacy in Pinellas Park. For a fee, the pharmacy technician at HP, Jessica Evans, assisted the HP pharmacist, Hong Truong, in dispensing the prescription opiates to Jackson. Jackson then sold the opiates to others, mostly in the Sarasota area. In all, the conspirators were responsible for obtaining at least 54 fraudulent prescriptions or 8,500 opiate tablets.

Co-conspirators Lucretia Mullan and Jessica Evans were previously sentenced to 20 months’ and 25 months’ imprisonment, respectively, for their roles in the scheme. Hong Truong’s sentencing hearing is scheduled for September 23, 2020.

This case was investigated by the Drug Enforcement Administration and the Opioid Fraud and Abuse Detection Unit. The Opioid Fraud and Abuse Detection Unit was created by the Department of Justice to help combat the devastating opioid crisis. The Opioid Fraud and Abuse Detection Unit focuses specifically on opioid-related health care fraud, using data to identify and prosecute individuals contributing to the prescription opioid epidemic. These cases are being prosecuted by Assistant United States Attorneys Greg Pizzo and Kelley Howard-Allen.

 Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Joshua Noah Sams (20, Orange Park) with interference of interstate commerce by robbery and brandishing a firearm during a robbery. If convicted, Sams faces a maximum penalty of 20 years in federal prison for the robbery offense and a 7-year minimum mandatory penalty, up to life imprisonment, for the firearm offense. The indictment also notifies Sams that the United States intends to forfeit the alleged proceeds of the robbery.

According to the indictment, on November 12, 2019, Sams robbed a 76 Gas station at gunpoint, obtaining cash from the employee on duty. Sams is currently in federal custody in the Northern District of Florida on unrelated robbery and firearm charges.

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

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clay County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.

This is another case 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.

ABINGDON, VIRGINIA – Timothy Baxter, the former global medical director of Indivior, pleaded guilty today in U.S. District Court in Abingdon to a one-count misdemeanor information charging him with causing the introduction into interstate commerce of the opioid drug Suboxone Film, which was misbranded in violation of the Federal Food, Drug, and Cosmetic Act.  Indivior’s former chief executive officer, Shaun Thaxter, recently pleaded guilty to a similar charge.

Baxter was the top medical executive of Indivior (formerly known as Reckitt Benckiser Pharmaceuticals) from 2000 until he left the company in May 2016.  Indivior and one of its subsidiaries have agreed to pay $600 million to resolve their criminal and civil liability, with the subsidiary pleading guilty to making false statements relating to health care matters.  Indivior’s former parent company, Reckitt Benckiser Group, previously paid $1.4 billion to resolve its liability.

Suboxone Film is a drug approved for use by recovering opioid addicts to avoid or reduce withdrawal symptoms while they undergo drug-addiction treatment.  Suboxone and its active ingredient, buprenorphine, are powerful and addictive opioids.

According to court documents, Baxter admitted that an Indivior employee he supervised sent inaccurate drug-safety information to the Massachusetts Medicaid agency, MassHealth, in 2012.  More specifically:

• Baxter was familiar with the issue of unintended pediatric exposure – meaning children taking drugs by accident – and worked on it over several years.
   
• In 2012, Indivior had a contractor collect data on unintended pediatric exposure to buprenorphine drugs, with Baxter approving the project.
   
• In October 2012, an Indivior medical affairs manager who Baxter supervised met with MassHealth, and urged it to expand its coverage of Suboxone Film.  In connection with the meeting, the medical affairs manager asked Indivior’s contractor for data on unintended pediatric exposure for data on Massachusetts.  The contractor sent the data to the medical affairs manager.  The data showed that other buprenorphine drugs – not Suboxone Film – had the lowest rate of unintended pediatric exposure in Massachusetts.  But the medical affairs manager changed the data to make it appear that Suboxone Film had the lowest rate of unintended pediatric exposure in Massachusetts, and emailed the altered, inaccurate data to MassHealth.  The medical affairs manager forwarded the email to Baxter, stating, “I hope this helps us get some movement” on expanding MassHealth coverage of Suboxone Film.
   
• Then in November 2012, the medical affairs manager emailed MassHealth an incomplete graph that intentionally omitted more data on unintended pediatric exposure that was arguably unfavorable to Suboxone Film.  Baxter did not receive the email; but in another context, Baxter approved of using a similarly incomplete graph.
   
• Then, the following quarter, the medical affairs manager received still more data showing that other buprenorphine drugs had lower rates of unintended pediatric exposure than Suboxone Film in Massachusetts. The medical affairs manager withheld the data from MassHealth, and later stated in a speech at an Indivior corporate conference that her rationale was “don’t ask, don’t tell.”
   
• In December 2012, MassHealth announced that it would expand coverage of Suboxone Film for patients with children under the age of six.
   
• With Baxter’s approval, Indivior sent a correction letter to MassHealth in December 2015.  By that time, the company had come under government investigation.
   

“Pharmaceutical company executives have a responsibility to ensure that their products are truthfully marketed, especially when those products are addictive opioids,” said Deputy Assistant Attorney General Daniel J. Feith of the Civil Division’s Consumer Protection Branch.  “The Department of Justice will vigilantly protect public health by investigating and pursuing conduct associated with false and misleading drug claims.”

“Health care providers and insurers rely on pharmaceutical manufacturers for honesty and accuracy when they provide information, which is particularly crucial when a company markets a powerful opioid,” First Assistant Daniel Bubar said today. “Timothy Baxter failed to ensure Indivior provided accurate information to a major insurance provider.  This is especially troubling, given Baxter’s long-time role as global medical director for the company.  I am again proud of the extensive efforts of the investigative team, which shows we will not tolerate companies or executives who break the law by placing profits over honesty.” 

“The opioid crisis has devastated families and communities across Virginia and around the country,” said Virginia Attorney General Mark Herring. “Opioid manufacturers and their executive leadership capitalized off of the opioid epidemic to sell more product, putting profits over safety. I am proud of the work my Medicaid Fraud Control Unit has done on these important cases and I want to thank our local, state and federal partners for their continued partnership.”

“Opioid addiction and abuse is a serious public health crisis and addressing it is one the FDA’s highest priorities. Providing misleading information about drugs used to treat opioid addiction could ultimately exacerbate the problem by making these treatments more difficult to obtain,” said Catherine Hermsen, Assistant Commissioner of the FDA’s Office of Criminal Investigations. “We will continue to work with the Department of Justice to investigate and hold accountable those who devise and participate in fraud schemes to the detriment of the public health.”

“The multiple Indivior prosecutions illustrate the hard work and dedication of investigators who focused on the case,” said Elton Malone, Assistant Inspector General for Investigations with the Office of Inspector General of the U.S. Department of Health and Human Services. “This resolution is emblematic of law enforcement’s continued focus on this opioid epidemic, and serves as a warning to those who would flout the law.”

“The Postal Service spends billions of dollars per year on health care related costs for its employees. It is the responsibility of special agents with the USPS OIG to ensure those dollars are paid to providers that follow the rules and regulations, and don’t try to cheat the government,” said U.S. Postal Service Office of Inspector General (USPS OIG) Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office. “When we discover someone is trying to obtain money they are not entitled to, we will aggressively pursue them in coordination with our law enforcement partners, and seek their criminal prosecution when appropriate. This case should serve notice to other pharmaceutical providers that we are watching you, and we will find you if you try to cheat.”

The case against Baxter is being prosecuted by attorneys from the U.S. Attorney’s Office for the Western District of Virginia, Virginia Attorney General’s Office, and the Department of Justice Civil Division’s Commercial Litigation Branch and Consumer Protection Branch, including Albert P. Mayer, Randy Ramseyer, Kristin L. Gray, Joseph S. Hall, Janine M. Myatt, Garth W. Huston, Carol Wallack, Jill P. Furman, Charles J. Biro, and Matthew J. Lash.  The investigation of Baxter was handled by the FDA’s Office of Criminal Investigations; the Virginia Medicaid Fraud Control Unit; the United States Postal Service- Office of Inspector General; and the U.S. Department of Health and Human Services - Office of Inspector General.  Assistance was provided by representatives of the FDA’s Office of Chief Counsel.

WILMINGTON, Del. – Cornelius Riley, 44, of Dover, was sentenced on August 26 to 100 months in federal prison for distributing and possessing with the intent to distribute heroin, after being convicted by a jury in May of 2019.

In January of 2018, Defendant sold an ounce of heroin to an undercover officer.  The Defendant then made arrangements to sell an additional 4.5 ounces of heroin to the same undercover officer later that week.  On the day of the sale, Defendant was arrested at the agreed-upon place, at the agreed-upon time, and with the agreed-upon amount of heroin in the back of his car.  Forensic chemical analysis of the substance showed that the heroin was mixed with a deadly fentanyl analogue, furanyl fentanyl. 

“The Court’s sentence reflects the seriousness of Mr. Riley’s actions and the harm he posed to society,” said U.S. Attorney Weiss.  “Riley was responsible for injecting a large amount of heroin into the Delaware community.  His crime was made more dangerous by the fact that the heroin Riley sold was laced with a deadly fentanyl analogue.  We will continue to aggressively investigate and prosecute drug dealers, and those who are responsible for selling this poison to the community should expect to face serious punishment.” 

David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement after sentencing by U.S. District Judge Richard G. Andrews.  Assistant U.S. Attorneys Laura D. Hatcher and Daniel Logan prosecuted the case, which was investigated by the Drug Enforcement Administration. 

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.

John H. Durham, United States Attorney for the District of Connecticut, announced that MARIO ANTONIO HERRERA, also known as Antonio Morales, 37, a citizen of El Salvador last residing in East Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for illegally reentering the U.S. after being deported.

According to court documents and statements made in court, on March 26, 2010, Herrera was deported from the U.S. to El Salvador.  Herrera’s removal followed his conviction in Manchester Superior Court in July 2008 for assault in the second degree.  Herrera’s criminal history also includes Connecticut convictions for carrying a dangerous weapon, reckless endangerment, and other offenses.

On July 1, 2019, Herrera, using the name Antonio Morales, was arrested by the East Hartford Police Department and charged with disorderly conduct and interfering/resisting arrest.

Herrera has been detained since his arrest.  On February 20, 2020, he pleaded guilty in federal court to one count of reentry of a removed alien.

This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.  The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.

ALEXANDRIA, Va. – CDM Smith Inc., headquartered in Boston, and CDM Federal Programs Corporation, located in Fairfax, have agreed to pay approximately $5.6 million to settle False Claims Act allegations and other civil claims related to inaccurate certified cost or pricing data submitted to the U.S. Navy.

The United States alleged that CDM Smith and CDM Federal submitted inaccurate cost and labor hour estimates and related certifications in connection with certain task orders on a federal contract to supply architect-engineering services to Navy bases. The alleged conduct would violate the Truth in Negotiations Act, which requires contractors who are negotiating certain government contracts to submit cost and pricing data to the federal government that is truthful, accurate, and complete.

The settlement resolves a lawsuit filed by a former CDM employee under the whistleblower provision of the False Claims Act. A whistleblower suit or qui tam action under the False Claims Act is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the local U.S. Attorney. The United States then has an opportunity to investigate the claims. The False Claims Act provides the whistleblowers with a share of the government’s recovery.

The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Naval Criminal Investigative Service.

This matter was investigated by Assistant U.S. Attorney Krista Anderson. The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.

Related court documents and information from the civil lawsuit are on PACER by searching for Case No. 18-cv-01522.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

WASHINGTON – A North Carolina man pleaded guilty today to perpetrating three schemes between March and July 2020 connected to the COVID-19 pandemic, through which he defrauded consumers and the federal government’s relief programs. 

Brandon Lewis, 34, of Greensboro, North Carolina, pleaded guilty to a criminal information charging two counts of wire fraud and one count of making false statements to the Small Business Administration (SBA) before U.S. District Judge Catherine C. Eagles of the Middle District of North Carolina.  Sentencing has been scheduled for Nov. 30, 2020 before Judge Eagles. 

“Brandon Lewis today admitted to a wide range of brazen schemes specifically designed to profit illegally from the COVID-19 pandemic by defrauding scores of frightened consumers and small business owners desperate for a financial lifeline,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “The department and our law enforcement partners will continue to aggressively pursue and hold accountable those who seek to illegally exploit the ongoing national emergency for their own personal benefit at the expense of hardworking Americans and businesses.”

“In the midst of a pandemic and as the economy suffered, this defendant lined his pockets by cheating online customers, small businesses, and, ultimately, all taxpayers.  Stealing from people seeking basic health and cleaning supplies while under stay at home orders, and from entrepreneurs struggling to keep their businesses afloat, may be the nadir of fraudulent conduct,” said U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina.  “I commend the excellent coordinated efforts of IRS Criminal Investigation, U.S. Postal Inspection Service, the Small Business Administration Inspector General, and the Treasury Inspector General.  We will aggressively investigate and prosecute anyone who tries to profit by preying on people during this pandemic.”

“This is another example of greed controlling one’s actions.  In a time of crisis and vulnerability in our country, Mr. Lewis promised assistance and help, but delivered more heartache and anxiety,” said Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation (IRS-CI).  “I am proud of the way IRS-Criminal Investigation and our law enforcement partners quickly responded to these selfish criminal acts.  We are committed to rooting out those seeking to defraud the hard-working citizens of this country during this pandemic.”

“The U.S. Postal Inspection Service will remain vigilant in bringing to justice anyone that seeks to defraud individuals during this pandemic,” said Inspector in Charge Tommy D. Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division.  “These schemes highlights the importance of collaboration with our law enforcement partners to investigate and stop those seeking to take advantage of innocent victims.”

“It is unacceptable to defraud small businesses that are struggling during these unprecedented times,” said Special Agent in Charge Kevin Kupperbusch of the SBA's Office of Inspector General (OIG)’s Eastern Region.  “Our office will relentlessly pursue fraudsters that use SBA’s programs for greed and personal gain.  I want to thank the Justice Department and our law enforcement partners for their dedication and pursuit of justice.”

“In the midst of this pandemic, anyone who attempts to engage in illegal activity will be aggressively pursued,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA).  “Our mission at TIGTA is to protect the integrity of the nation’s system of tax administration.  We will continue to work with the IRS Criminal Investigation Division, the Small Business Administration Office of Inspector General, the Postal Inspection Service, the Department of Justice, and other law enforcement partners in this effort.”

As part of his guilty plea, Lewis admitted that he created the so-called “COVID-19 Relief Fund,” which he purportedly managed and oversaw as president and founder of Lewis Revenue Group LLC.  Lewis promised desperate small business owners “guaranteed funds” of between $12,500 and $15,000 in exchange for an upfront “reservation” fee of between $995 and $1,200.  Lewis falsely claimed that “the fund has up to $250 million available for small businesses” and provided a link for applicants to “purchase a reservation now.”

Lewis also created the so-called “American Relief Fund,” offering $5,000 grants to “every American affected by COVID-19.”  Lewis promoted these “relief funds” through sophisticated marketing and social media campaigns, even using the official trademarks and logos of purported corporate sponsors without their permission.  In reality, Lewis never had or distributed any funds through the “COVID-19 Relief Fund” or “American Relief Fund.”  Between April and May 2020, Lewis defrauded small business owners of more than $100,000 through this scheme.

Lewis also admitted that, in mid-March 2020 as COVID-19-related stay-at-home orders across the United States began, he set up a website called “www.homekitchengoods.com,” for the online store, “Home Kitchen Goods,” where he claimed to sell pandemic-critical goods such as hand sanitizer, disinfectant wipes, paper towels, and toilet paper.  In fact, however, during the five days between March 20 and March 24, 2020, Lewis received over 8,500 orders totaling more than $400,000, but never had or delivered any of the promised goods. 

Lewis further admitted that, between April 1 and June 19, 2020, he lied to the SBA by fraudulently applying for and obtaining multiple loans and advances under the SBA’s EIDL program.  Specifically, Lewis purchased more than 35 “aged, off-the-shelf” corporations, and then submitted approximately 68 fraudulent loan applications and non-refundable grant “advances” of up to $10,000 through the SBA-EIDL program. 

This case was investigated by the USPIS, IRS-CI, SBA-OIG, and TIGTA.  Trial Attorney David A. Stier of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith C. Ruggles are prosecuting the case. 

If you believe you are a victim in this case please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or email us at victimassistance.fraud@usdoj.gov.  You may also may visit https://www.justice.gov/criminal-vns/case/brandon-lewis for additional information and updates as the case progresses.

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.

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LEXINGTON, Ky. - A Lexington, Ky., man, Tyzon Zavonne Edwards, 22, was sentenced in federal court on Monday, to 140 months in prison, by Chief U.S. District Judge Danny Reeves, for possession with intent to distribute 40 grams of or more of fentanyl and possession of a firearm in furtherance of drug trafficking.

According to his plea agreement, on October 1, 2019, law enforcement conducted a traffic stop and identified Edwards, who had a warrant out for his arrest, as a passenger. The vehicle fled from police, eventually stopping to allow Edwards to get out and flee on foot. Edwards admitted that while running from police, he hid a bag containing 91.5 grams of fentanyl and a loaded .40 caliber pistol, in a recycling bin. Edwards further admitted that he knowingly possessed the fentanyl with intent of distributing it to others and that he possessed the firearm in furtherance of his drug trafficking.

Edwards pleaded guilty in May 2020.           

“Armed drug traffickers like Tyzon Edwards present a real danger to the community, especially when they flee from the police while in possession of more than 90 grams of deadly fentanyl and a loaded pistol,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “In coordination with our federal, state, and local law enforcement partners, we will continue to prosecute cases like this, in our efforts to reduce violent crime and hold dangerous offenders accountable for their conduct.”       

Edwards was also ordered to pay a $2,000 fine. Under federal law, Edwards must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for five years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement. 

The investigation was directed by ATF, and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.

This case 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 Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

This case is also 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.

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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ALBANY, NEW YORK – Steven M. Boice, age 30, was sentenced today to 20 years in prison for distributing furanyl fentanyl that caused an overdose death in Saratoga County in February 2017.

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Saratoga Springs Police Department Chief Shane Crooks. 

In pleading guilty in November 2019, Boice admitted that he sold controlled substances, including furanyl fentanyl, from his residence in Saratoga Springs, New York. 

Early on February 3, 2017, he sold approximately 50 small envelopes, each containing furanyl fentanyl, to B.L., a Saratoga County man who overdosed and died that same day. Boice has also admitted that when B.L. arrived at his house on February 3, B.L. seemed incoherent, but Boice sold him drugs anyway.  B.L. ingested some of the fentanyl while at Boice’s residence and fell down while leaving. Boice and his roommate put B.L. on their back porch in the cold air and sat with him for approximately 45 minutes, slapping him to keep him awake. B.L. “snapped back into it,” according to Boice, and left Boice’s residence. B.L. died at home later on February 3 after ingesting more fentanyl sold to him by Boice.  (The roommate died months later, also due to a drug overdose.)

United States Attorney Grant C. Jaquith stated: “Steven Boice did not care whether his customers lived or died.  Today’s sentence holds him responsible for the avoidable and senseless death of a young man, and the daily pain and suffering of that man’s wife and parents. Heroin and fentanyl dealers should take notice that they are accountable for the overdoses of their customers, and that a 20-year prison term could be in their future.” 

DEA Special Agent in Charge Ray Donovan stated: “Too many lives were changed because of a drug transaction in Saratoga Springs. This investigation traced a drug overdose to a local drug trafficker whose actions caused a man’s death, a family’s loss, and a 20-year prison sentence.  This case also emphasizes the consequences of drug trafficking and reminds traffickers that law enforcement won’t rest until those responsible are brought to justice.” 

Saratoga Springs Police Chief Shane Crooks stated: “Today, thanks to the hard work of all agencies involved, Steven Boice was held accountable for his actions.   While this does not remove the pain that the family of B.L. has gone through, I can only hope that it will help bring them some closure.”

On February 10, 2017 – a week after B.L.’s death – law enforcement executed a search warrant on Boice’s residence in downtown Saratoga Springs, and found furanyl fentanyl packaged for sale and 2 firearms.  Boice admitted to possessing a total of 363 green-colored envelopes containing furanyl fentanyl.

Boice also admitted to possessing 2 firearms to protect his drugs and drug proceeds.  When law enforcement entered his house on February 10, 2017, Boice had a loaded Mossberg Maverick shotgun, leaning against a wall of his bedroom and directly next to the door, and a loaded DPMS Panther Arms .223-5.56 mm semi-automatic rifle, under his bed.

Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, to begin after Boice’s release from prison.

This case was investigated by the DEA and its Capital District Drug Enforcement Task Force; the Saratoga Springs Police Department; and the New York State Police.  The Saratoga County District Attorney’s Office assisted in the investigation.

This case was prosecuted by Assistant U.S. Attorney Michael Barnett.

NASHVILLE, Tenn.– August 31, 2020 - Elique Camacho, 23, of Clarksville, Tennessee, was sentenced today in U.S. District Court to 10 years in prison for possessing a firearm after being convicted of a crime of domestic violence, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.

Camacho was indicted in July 2018, after an incident on June 24, 2018, where Clarksville police officers were called to the scene of a domestic assault and upon arrival, Camacho was attempting to leave the scene.  As officers approached his vehicle, Camacho drove toward them and struck one of the officers with his vehicle and fled.  As Clarksville officers pursued Camacho, he fired several rounds at the officers from his vehicle.  One of the officers subsequently rammed and disabled Camacho’s vehicle, after which, he fled on foot and hid in a wooded area overnight, before being arrested the following day at a friend’s house. At the time of his arrest, Camacho was in possession of a 9mm handgun. 

Camacho pleaded guilty in January.  He had previously been convicted of domestic assault in January 2017 and was prohibited from possessing a firearm. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Clarksville Police Department.  Assistant U.S. Attorney Brooke Schiferle prosecuted the case.

# # # # #

ALBANY, NEW YORK – Robert J. Chaires, age 40, of Schenectady, New York, pled guilty today to twice distributing crack cocaine in 2017.

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

Chaires admitted that on January 20, 2017 and again on March 2, 2017, he sold more than 28 grams of cocaine base (a/k/a crack cocaine) to a buyer in Schenectady.

Chaires faces at least 10 years and up to life in prison when he is sentenced by Senior United States District Judge Frederick J. Scullin, Jr. on December 8, 2020.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

WASHINGTON – Earlier today, in federal court in Brooklyn, Aleksandr Pikus was sentenced by United States District Judge Ann M. Donnelly to 13 years’ imprisonment for his role in a massive healthcare kickback and money laundering conspiracy.  Pikus was also ordered by the Court to pay restitution in the amount of $23 million to Medicare, $16 million to Medicaid, $433,297 to the Internal Revenue Service and forfeit $2,614,233.79.  Pikus was convicted by a federal jury in November 2019 of one count of conspiracy to commit money laundering, two counts of money laundering, one count of conspiracy to pay and receive health care kickbacks and one count of conspiracy to defraud the United States by obstructing the IRS. 

Seth D. DuCharme, acting United States Attorney for the Eastern District of New York, Brian C. Rabbitt, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG), and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the sentence.

“The defendant’s key role in an elaborate scheme to steal and conceal tens of millions of dollars from the Medicare and Medicaid programs, was staggering in scope and deserving of the significant punishment he received today,” stated Acting U.S. Attorney DuCharme.  “This Office takes very seriously its obligation to protect government funds that provide vital medical coverage counted upon by individuals and families who qualify because of their low income, disability or advanced years.”

“For nearly a decade, Aleksandr Pikus stole millions of dollars from the federal Medicare and Medicaid programs in a major healthcare kickback, money laundering and tax fraud scheme,” stated Acting Assistant Attorney General Rabbitt.  “This significant sentence holds Pikus accountable for his leadership role in this scheme and reflects the Department’s commitment to protecting our valuable federal healthcare programs and their beneficiaries from this kind of fraud.”

“Pikus was the kingpin running a massive money laundering and kickback health care fraud syndicate,” stated HHS-OIG Special Agent-in-Charge Lampert.  “Now, like others who plot to steal from government health programs, he is paying a heavy price for his crimes.  Along with our law enforcement partners, we will continue to root out individuals who steal vital taxpayer-provided health funds.”

“The defendant’s greed and desire for money drove him to perpetrate crimes against our healthcare system and prey upon the vulnerable in our society,” stated IRS-CI Special Agent-in-Charge Larsen. “Justice has been served and IRS-CI will continue to work alongside our counterparts to uncover these schemes to hold these criminals accountable for their actions.”

The evidence at trial established that over the course of nearly a decade, Pikus and his co-conspirators perpetrated a scheme through a series of medical clinics in Brooklyn and Queens that employed doctors, physical and occupational therapists and other medical professionals who were enrolled in the Medicare and Medicaid programs.  In return for illegal kickbacks, Pikus referred beneficiaries to these health care providers, who submitted claims to the Medicare and Medicaid programs. Pikus and his co-conspirators then laundered a substantial portion of the proceeds of these claims through companies he controlled, including by cashing checks at several New York City check-cashing businesses.  Pikus then failed to report that cash income to the IRS.  Instead, Pikus used the cash to enrich himself and others and to pay kickbacks to patient recruiters, who, in turn, paid beneficiaries to receive treatment at the medical clinics.  The evidence further established that Pikus and his co-conspirators used sham shell companies and fake invoices to conceal their illegal activities.

Pikus used violent threats to protect his scheme.  For example, he threatened a co-conspirator who was thinking about leaving the scheme by saying: “[Y]ou know, you[’re] already with us so the only way out is feet first through the door,” meaning “like in a body bag.”  When a therapist left the Pikus Clinics, the defendant told a co-conspirator “I’m hearing that he might be trying to take patients from our clinics to that other clinic. . . tell him he better stop unless he likes his legs to be broken.”

More than 25 other individuals have pleaded guilty to or been convicted of participating in the scheme, including physicians, physical and occupational therapists, ambulette drivers and the owners of several of the shell companies used to launder the stolen money.

This case was investigated by the HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the United States Attorney’s Office for the Eastern District of New York.  Assistant Chief A. Brendan Stewart and Trial Attorneys Sarah Wilson Rocha and Andrew Estes of the Fraud Section are prosecuting the case with Assistant U.S. Attorney Claire S. Kedeshian of the Eastern District of New York’s Civil Division, which is handling forfeiture matters.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion.  In addition, the U.S. Department of Health and Human Services Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Defendant:

ALEKSANDR PIKUS
Age:  45
Brooklyn, New York

E.D.N.Y. Docket No.: 16-CR-329 (AMD)

SAVANNAH, GA: A Savannah man will spend 25 years in federal prison after sentencing for the violent robberies of two convenience stores, an armed home invasion, and car theft in 2018.

Brian Alexander Brooks, 23, of Savannah, was sentenced in U.S. District Court by Judge Lisa Godbey Wood to 300 months in prison for Interference with Commerce by Robbery; Using, Carrying and Discharging a Firearm During a Violent Crime; and Carjacking, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Brooks was order to pay $15,000 in restitution, and after completion of his prison sentence, he must serve five years of supervised release. There is no parole in the federal system.

“Brian Brooks is a violent, serial criminal who robbed and threatened innocent victims at gunpoint, stole a car, ran from police and fired shots to avoid apprehension,” said U.S. Attorney Christine. “Hard prison time will protect the community from further victimization by this violent predator.”

As spelled out in court proceedings and filings, the progressively escalating series of crimes for which Brooks is being incarcerated include:

• The July 12, 2018 robbery at gunpoint of the Murphy Express convenience store on Abercorn Street, in which Brooks pointed a pistol at the lone female clerk while demanding and receiving cash before fleeing;
• The July 15, 2018 robbery of the Parker’s convenience store on Abercorn Street, during which Brooks fired one round from a semi-automatic pistol into the ceiling to threaten the female clerk for taking too long in collecting cash from the register; and,
• A July 31, 2018 home invasion in Georgetown in which Brooks awakened and robbed a sleeping woman at gunpoint, then stole her car and led police on a chase through an apartment complex before crashing into a canal and firing shots during his escape from the vehicle. Brooks fled on foot but was apprehended days later with the assistance of the U.S. Marshal’s Service.

As a previously convicted felon, Brooks is prohibited from possessing a firearm.

“The only thing to be thankful for after Brooks’ reign of terror in July 2018 is that no one was killed, even though he showed a disregard for human life,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Once again it was our partnerships with federal and local law enforcement agencies that helped take this threat off our streets.”

The case was investigated by the FBI’s Southeast Georgia Violent Crimes Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the U.S. Marshal’s Service, the Savannah Police Department, and the Chatham County Police Department, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.

KANSAS CITY, KAN. - An Overland Park woman who owned massage parlors in Olathe and Leawood pleaded guilty today to a federal interstate prostitution charge.

Chunqui Wu, 62, Overland Park, Kan., pleaded guilty to one count of transportation with intent to engage in illicit sexual conduct. An indictment alleges Wu operated three massage parlors: Alpha Massage at 116 S. Clairborne, #A, in Olathe, Kan.; A Plus Massage at 527 N. Mur-Len Road, in Olathe, Kan.; and King Spa at 13104 State Line Road in Leawood, Kan.

Wu’s plea agreement says investigators worked with an undercover confidential source who contacted Wu and asked for a job working in Wu’s massage parlors. Wu made statements indicating she allowed her employees to perform sexual services for tips. Other investigators working undercover confirmed that employees in Wu’s massage parlors were offering sexual services to customers.

Wu was arrested when she went to the Kansas City International airport in Kansas City, Mo., to meet the undercover confidential source and transport her back to Kansas to work in one of Wu’s massage parlors.

Sentencing is set for Nov. 16. Wu could face up to 10 years in federal prison. McAllister commended the Olathe Police Department, the Leawood Police Department, the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.

CINCINNATI – A federal grand jury has charged the two individuals allegedly involved in an Aug. 7 chase through Cincinnati that resulted in the deaths of two bystanders in Newport, Ky. The indictment was returned Aug. 26 and unsealed today.

Mason Meyer, 28, and Kirsten Johnson, 22, both of Cincinnati, are charged federally with possessing with intent to distribute methamphetamine and possessing firearms in furtherance of a drug trafficking crime.

Meyer is also charged with illegally possessing a firearm as a convicted felon. In Campbell County, Ky., Meyer is charged with two counts of murder, endangerment, and fleeing and evading.

According to court documents, officials with the ATF, Cincinnati Police and the Northern Kentucky Drug Strike Force were surveilling Meyer in Cincinnati on Aug. 7 when Meyer drove away.

Cincinnati Police officers attempted to stop Meyer when he fled, causing a police chase through Cincinnati and into Covington and Newport, Ky.

Local court documents detail that Meyer’s vehicle struck and killed a couple dining on the patio of Press on Monmouth in Newport, Ky. Two other pedestrians were struck and suffered minor injuries.

At the time of the chase, the federal indictment alleges Meyer and Johnson possessed 50 grams or more of methamphetamine, two loaded handguns and a loaded rifle.

The methamphetamine charge in this case is punishable by five to 40 years in prison. Possessing firearms in furtherance of a drug trafficking crime is punishable by a minimum of five years in prison. Possessing a firearm as a convicted felon carries a potential maximum punishment of 10 years in prison.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Cincinnati Police Chief Eliot K. Isaac and agencies with the Northern Kentucky Drug Strike Force announced the charges. Assistant United States Attorneys Timothy D. Oakley and Jennifer K. Weinhold are representing the United States in this case.

An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

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WICHITA, KAN. - A Wichita man was sentenced today to 100 months in federal prison for methamphetamine trafficking, U.S. Attorney Stephen McAllister said.

Myron L. Hite II, 43, Wichita, Kan., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted that when the Kansas Bureau of Investigation served a search warrant at his home in Wichita, they found more than half a pound of methamphetamine. They also found more than $14,000 in cash and two loaded firearms.

McAllister commended the KBI and Assistant U.S. Attorney Mona Furst for their work on the case.

CLARKSBURG, WEST VIRGINIA – Eugenio Menez, a former physician of Fairmont, West Virginia, was sentenced today to 48 months in prison following a drug charge, U.S. Attorney Bill Powell announced.

Menez, age 69, pled guilty to a one-count information in March 2020 charging him with “Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” Menez admitted to illegally distributing oxycodone in September 2015 in Marion County. 

Menez was a family physician who practiced in Marion County. He distributed controlled substances outside the course of professional medical practice by writing prescriptions for several female patients in exchange for sexual favors. Even though the female patients had medical appointments, those visits involved sexual acts, and Menez did not conduct medical exams of those patients. The appointments would be scheduled either early in the morning at his office before his staff reported or at his residence. The patients believed they would have been denied their prescriptions if they did not consent to the sexual acts. The patients’ accounts were corroborated by numerous video recordings produced by Menez. 

Menez has surrendered his medical license, as well as his DEA registration, which permitted him to write prescriptions. 

Mezen was also ordered to pay a $25,000 fine. 

Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration investigated.

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

BOSTON – A Brockton man was arrested and charged in connection with assaulting an officer while fleeing a motor vehicle stop. The defendant’s vehicle allegedly dragged the officer for several feet as the defendant fled the scene, eventually crashed head-on into a guardrail on Route 24 at approximately 100 miles per hour, and ran across travel lanes of Route 24 before he was apprehended and placed under arrest.

Tykeam Jackson, 25, was arrested on Friday, Aug. 28, 2020 and charged by criminal complaint with one count of assaulting, resisting or impeding a federal officer. Following an initial appearance, Jackson was detained pending a detention hearing scheduled for Sept. 4, 2020.

As alleged in the charging documents, during the afternoon of July 27, 2020, a deputized federal law enforcement officer stopped Jackson for speeding on Route 28 in Avon and instructed Jackson to exit his vehicle. Instead, Jackson allegedly accelerated the vehicle with such force that the officer was dragged for several feet and thrown to the ground. Jackson then sped away, ignored traffic signals, and drove into oncoming traffic, eventually travelling at a speed of approximately 100 miles per hour in the breakdown lane of Route 24. After attempting to cross all three travel lanes, Jackson lost control of the vehicle and crashed head-on into the guardrail. He allegedly exited the vehicle, ran across the travel lanes of Route 24, and was almost struck several times by oncoming traffic. A Massachusetts state trooper subsequently found Jackson running into and obstructing traffic on a nearby heavily-traveled roadway and placed him under arrest.

According to court documents, Jackson is currently on probation resulting from an armed robbery conviction in Suffolk Superior Court.

For assaulting a federal officer, the charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $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, New England Field Division; and Norfolk County District Attorney Michael Morrissey made the announcement today. The Massachusetts State Police provided assistance with the investigation. Assistant U.S. Attorneys Glenn A. MacKinlay and Sarah B. Hoefle of Lelling’s Organized Crime and Gang Unit are 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. PSN is 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 complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 27, 2020, David Piaquadio, age 63, of Galeton, Pennsylvania, was sentenced by U.S. District Court Judge Christopher C. Conner to 20 years’ imprisonment following his conviction for conspiracy to distribute Oxycodone, Fentanyl and Heroin, distribution of Oxycodone and Fentanyl, and attempted distribution of Oxycodone.

According to U.S. Attorney David J. Freed, on March 12, 2015, Piaquadio delivered Fentanyl to an individual who overdosed after using the drug.  The overdose victim was found by his mother unconscious with a syringe stuck in his right arm in close proximity to a metal spoon containing Fentanyl residue that was distributed by Piaquadio. 

Piaquadio admitted that he and his girlfriend, who is now deceased, sold between 100 to 120 Oxycodone tablets and one or two Fentanyl patches per month.  On the morning of March 12, 2015, the day he delivered Fentanyl to the overdose victim, Piaquadio filled a prescription for 150 Oxycodone tablets and 10 Fentanyl patches.

The federal investigation was conducted by the Office of Inspector General, U.S. Department of Health and Human Services, the Pennsylvania State Police, with the assistance of the Galeton Borough Police Department and the Potter County District Attorney’s Office.  Assistant United States Attorneys Geoffrey W. MacArthur and George J. Rocktashel prosecuted the case.

This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of Heroin and Opiods like Fentanyl and Oxycodone.  Led by the United States Attorney’s Office, the Heroin Initiative targets Opiod traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

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 this offense is life imprisonment, a 20-year mandatory minimum sentence because the drug offense resulted in serious bodily injury, 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.

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