A Sioux City man who illegally possessed firearms, was sentenced May 13, 2021, to more than three years in federal prison.

Yoni Duenas, 23, from Sioux City, Iowa, received the prison term after a December 21, 2020, guilty plea to two counts of possession of a firearm by a felon and a drug user.

Evidence presented by the United States at the detention, change of plea, and sentencing hearings revealed Duenas unlawfully possessed two firearms on two separate occasions.  Counting Duenas’ past criminal history and his instant conduct, he has been disarmed by law enforcement four times.     

Duenas was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand.  Duenas was sentenced to 40 months’ and five days’ imprisonment.  He must also serve a two-year term of supervised release after the prison term.  There is no parole in the federal system.

This case was brought as part of Project Safe Neighborhoods (PSN).  PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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. The United States Attorney’s Office has prosecuted this case with support from Project Guardian partners. For more information about Project Guardian, please see https://www.justice.gov/ag/page/file/1217186/download.

The case was investigated by the United States Department of Justice – Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sioux City Police Department.  The case was prosecuted by Assistant United States Attorney Forde Fairchild.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 20-4031.  Follow us on Twitter @USAO_NDIA.

A man who illegally possessed a gun on two occasions was sentenced to seven years in federal prison.

Angelo Campbell, age 28, from Sioux City, Iowa, received the prison term after a December 16, 2020, guilty plea to two counts of possession of a firearm by an unlawful drug user and domestic abuse misdemeanant.

Evidence at Campbell’s detention, change of plea and sentencing hearings revealed he possessed two different guns on two separate occasions after having been convicted of Domestic Abuse Assault in 2014 and 2016, and while an unlawful user of methamphetamine and marijuana.    

Campbell was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand.  Campbell was sentenced to 84 months’ imprisonment.  He must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

Campbell is being held in the United States Marshal’s custody until he can be transported to a federal prison.

This case was brought as part of Project Safe Neighborhoods (PSN).  PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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.  For more information about Project Guardian, please see https://www.justice.gov/ag/page/file/1217186/download

The case was investigated by the Sioux City, Iowa Police Department and the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives.  The case was prosecuted by Assistant United States Attorney. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 20-4058.

Follow us on Twitter @USAO_NDIA.

Oxford, Miss. – A Starkville physician was sentenced today to three years of probation for receiving misbranded drugs in interstate commerce and distributing them with the intent to defraud his patients.  In addition to the term of probation, the defendant was ordered to forfeit $105,322.53, to pay a fine of $95,000 and to pay restitution in the amount of $377,545.20.

According to court documents, Benjamin Franklin Sanford, Jr., 69, of Starkville, Mississippi, is a physician who operated Starkville Internal Medicine. From April 2013 to June 2018, foreign versions of prescription drugs, including versions of Prolia, Boniva, and Aclasta, which had not been approved by the FDA, were shipped from overseas to Dr. Sanford’s clinic in Starkville.  These drugs were administered to patients of Starkville Internal Medicine without their knowledge that the drugs were foreign versions of the subject drugs which were not FDA approved.

“U.S. consumers rely on FDA oversight to ensure that the drugs they receive are safe and effective. Health care providers who obtain foreign unapproved medicines and then dispense and administer those drugs to their patients put the health of those patients at significant risk,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to pursue and bring to justice those who choose to put the public’s health at such risk.”

“For medical care, patients rely on safe and approved drugs from their doctors”, said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This sentence and financial penalties will deter other medical providers from seeking non-FDA approved imported medications”.

The FDA Office of Criminal Investigations and the U.S. Department of Health and Human Services, Office of the Inspector General investigated the case.  The case was prosecuted by AUSA Robert Mims.

MISSOULA – Three Missoula area residents accused in a large methamphetamine trafficking ring pleaded guilty on Tuesday, Acting U.S. Attorney Leif M. Johnson said today.

Laura Jeanne Haacke, 46, of Missoula, Jennifer Renee Hawkes, 39, of Missoula, and Jason Dean Hager, 55, of Lolo, each pleaded guilty to possession with intent to distribute meth. Haacke and Hawkes face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hager faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years of supervised release.

U.S. District Judge Donald W. Molloy presided. Sentencing was set for Dec. 16 for all defendants. Hager and Hawkes were detained, while Haacke was released pending further proceedings.

According to court documents, the government alleged that Haacke, Hawkes, Hager, and a fourth co-defendant, Terry David Starrett, conspired to distribute meth in Missoula from January 2018 through January 2021. Starrett pleaded guilty on May 11 to possession with intent to distribute meth. The government alleged that officers learned through confidential informants that Haacke stored meth for a drug distributor and at one point had 40 pounds of meth in a trap floor at her residence. When interviewed by law enforcement, Haacke admitted that she used meth and that in February 2019, she had about 80 pounds of meth stored in her residence. Eighty pounds of meth is the equivalent of about 289,920 doses.

The government further alleged that in July 2019, Hawkes supplied a person with about two ounces of meth. After the transaction, law enforcement executed a search warrant at Hawkes’ residence and recovered an additional three pounds of meth.

The government also alleged that in December 2019, Hager sold meth to an undercover informant three times in monitored transactions. Agents further learned that a confidential informant saw Hager with one and one-half pounds of meth and that he helped a co-defendant move numerous pounds of meth and kept some to use as his own supply.

Assistant U.S. Attorney Tara J. Elliott is prosecuting the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, Missoula Police Department and Missoula County Sheriff’s Office.

XXX

A federal grand jury recently returned an eight-count indictment charging Haskell Knight, a/k/a “Trey Knight,” age 56, and Emily Knight, a/k/a “Emily Ricciardelli,” a/k/a “Emily Fryer,” age 37, both of Franklin, Tennessee, with conspiracy to commit wire fraud and wire fraud.  Each appeared for their arraignments and pled not guilty to the pending charges. 

According to the indictment, beginning in March 2016, Haskell Knight and Emily Knight, a husband and wife who at the time lived in Texas and Florida, purported to start a new business.  Haskell Knight raised investment funds while Emily Knight handled the bank account.  The business was called Udoxa, which allegedly was to market nutritional supplements.  The Knights raised $200,000 from four investors who contributed $50,000 each.  However, while Udoxa was formed on paper, it never conducted actual sales.  Haskell Knight solicited investments under false pretenses and then did little to follow through with starting the business.  Knight misrepresented the existence of a rich investor, available formation capital, and the strength of the startup, all to obtain funding, and then failed to use the funds in the agreed-upon manner.  Emily Knight accepted a total of $100,000 in wire transfers from two investors, one of whom lived in Baton Rouge.  Those funds went in part to pay old business debts and personal expenses.  $100,000 from the other two investors was not deposited into the Udoxa account and disappeared.

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Brian K. Frazier, who also serves as Chief of the Criminal Division. 

NOTE: An indictment is an accusation by a grand jury.  The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea. 

PROVIDENCE, R.I. –  A registered sex offender living in Smithfield was ordered detained by a federal magistrate judge Tuesday after a federal grand jury returned an indictment charging him with multiple child sexual exploitation offenses.  Mathew Hoard, 35, was charged in a five-count indictment with Attempted Enticement of A Minor to Engage in Criminal Sexual Activity; Attempted Transfer of Obscene Material to a Minor; Distribution and Possession of Child Pornography; and Committing Offenses While Required to Register as a Sex Offender.

According to court documents and information presented to the court, Hoard was convicted of possession of child pornography in Rhode Island Superior Court in 2010 and sentenced to five years of probation and required to register as a sex offender.  According to information received by the National Center for Missing and Exploited Children, in February 2020 an individual uploaded child pornography to a social media application.  Members of the Rhode Island State Police Internet Crimes Against Children Task Force (ICAC) traced the upload to Hoard.

Meanwhile, in a separate ICAC investigation, Hoard was allegedly communicating via a social media application with an individual he believed was a 14-year-old girl.  Hoard allegedly sent obscene images to the 14-year-old; requested the 14-year-old send nude images of herself to him; said he wanted to marry her, and repeatedly asked the 14-year-old to meet for sex.  Court-authorized searches discovered electronic media devices owned by Hoard that allegedly contained child pornography and other evidence related to the case.

Hoard was arrested on Tuesday by members of the ICAC and Homeland Security Investigations and was ordered detained by United States Magistrate Judge Lincoln D. Almond following an initial court appearance in U.S. District Court, announced Acting United States Attorney Richard B. Myrus.

If convicted as charged, Hoard faces a mandatory minimum sentence of at least 15 years in federal prison.

An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.  It was investigated by the Rhode Island Stated Police Internet Crimes Against Children Task Force with assistance from the Homeland Security Investigations.

###

Ocala, Florida – U.S. District Judge Roy B. Dalton Jr. has sentenced Gary Dewayne Martin (31, Fort McCoy) to 24 months in federal prison for possession of an unregistered silencer. The court also ordered Martin to forfeit the silencer and a .22 caliber semiautomatic rifle. Martin had pleaded guilty on January 6, 2021.

According to court documents, on September 20, 2019, deputies from the Marion County Sheriff’s Office were called to Martin’s residence. Witnesses said that Martin was walking around wearing body armor and wielding a shotgun, threatening to kill himself and others. Witnesses further stated that Martin had discharged his shotgun into a nearby campfire. While investigating the campfire, deputies found the shotgun, two spent shotgun shells, and a .22 caliber rifle with an attached homemade silencer secured to the barrel. The silencer was not registered as required by federal law. Pursuant to a risk protection order, deputies then searched the residence and seized a total of 37 firearms and large amounts of ammunition.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney William S. Hamilton.

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, Acting U.S. Attorney Karin Hoppmann coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 18, 2021, a federal grand jury handed down an indictment alleging that Joshua A. Gama (age: 35) of Bridgeton, Missouri, distributed child pornography in violation of Title 18, United States Code, Section 2252A(a)(2)(A).

Later that morning, the same grand jury handed down a separate indictment alleging that David J. Dexter (age: 43) of Lebanon, Tennessee, also distributed child pornography in violation of federal law.

Gama is charged with two counts of distributing child pornography. Dexter is charged with a single count of distribution. Each count carries a mandatory minimum sentence of five years and up to 20 years of incarceration in federal prison upon conviction.

Each man’s indictment is a direct result of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office https://go.usa.gov/xHzJp.

Both Gama and Dexter utilized a popular internet messaging platform to access chat rooms in which they each are alleged to have distributed child pornography. Each man was investigated separately and there is no known connection between the two. 

These cases were investigated by the Federal Bureau of Investigation’s Milwaukee, Green Bay, Memphis, Nashville, and St. Louis Offices, as well as the Winnebago County Sheriff’s Office.  They will be prosecuted by Assistant United States Attorney Daniel R. Humble.

An indictment is only a charge and is not evidence of guilt.  Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.   

# #  #

For further information contact:

Public Information Officer Kenneth.Gales@usdoj.gov

414-297-1700

Follow us on Twitter 

PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced today that Medicrea International, a French medical device manufacturer, and its American affiliate Medicrea USA Inc., have agreed to pay:

• $1 Million to the United States and participating states to resolve civil whistleblower allegations that the companies, by entertaining U.S.-based physicians during a 2013 conference in France, violated the Anti-Kickback Statute and, through resulting claims to federal healthcare programs, the False Claims Act and similar state statutes; and
   
• an additional $1 Million to the United States to resolve related allegations that the companies violated the physician Open Payments Program (formerly known as the “Sunshine Act”) by failing to fully report those physician-entertainment expenses to the Centers for Medicare & Medicaid Services (CMS).  

The Anti-Kickback Statute prohibits medical device manufacturers from directly or indirectly offering or paying anything of value to induce the referral of items or services, such as device orders or purchases, covered by Medicare, Medicaid, TRICARE, or other federal healthcare programs. The federal settlement resolves allegations that Medicrea (which Medtronic USA Inc., recently acquired) provided items of value in the form of meals, alcoholic beverages, entertainment, and travel expenses to U.S.-based physicians at events surrounding the Scoliosis Research Society’s September 2013 Congress in Lyon, France. The United States alleged that Medicrea provided the benefits to induce the physicians to purchase or order Medicrea’s spinal devices, and that this resulted in false payment claims to federal healthcare programs. 

This settlement also resolves Medicrea’s liability under CMS’s Open Payments Program. As part of the Affordable Care Act, Congress created the Open Payments Program: (1) to provide greater transparency and protection to consumers, by requiring medical device manufacturers and others publicly to disclose certain payments and other transfers of value to physicians; and (2) with the goal of preventing, through such disclosures, payments and benefits from being used to induce physicians and hospitals to prescribe or buy products.

This is among the first settlements to resolve allegations under both the False Claims Act and the Open Payments Program. The settlement follows the Senate Finance Committee’s March 2019 request that HHS-OIG and CMS investigate Open Payments Program non-compliance and pursue enforcement. Manufacturers must ensure accurate and timely Open Payments Program reporting to CMS of all applicable payments or transfers of value, including indirect payments.

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act statute. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The suit was filed in the Eastern District of Pennsylvania and is captioned United States of America, et al., ex rel. Dory Frain v. Medicrea USA Corporation, Civil Action No. 16-1986. The whistleblower’s Philadelphia-based attorneys are Michael A. Filoromo, III of Katz, Marshall & Banks, LLP, and Ryan Allen Hancock of Willig Williams & Davidson.  

“Kickbacks undermine the integrity of federal healthcare programs and increase costs to taxpayers,” said Acting U.S. Attorney Williams. “This case demonstrates the Department of Justice’s commitment to ensuring that medical device manufacturers do not use improper relationships to influence physician decision-making and are transparent about the benefits that they provide to physicians.”  

Williams added: “We thank the relator and relator’s counsel for their contributions. Without information from citizens like the relator, detecting fraud and conserving government program funds would be much more difficult.”

“Allegations of kickbacks are concerning as patients rely on their medical professionals to make health care decisions based on their individual medical needs,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “We will continue working with the U.S. Attorney’s Office, CMS and our Medicaid Fraud Control Units to protect patients and taxpayers.”

The United States’ investigation and resolution of this matter illustrates its focus on combating healthcare fraud. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).

The settled claims are allegations only; there has been no determination of liability.

This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Commercial Litigation Branch of the Justice Department’s Civil Division, as well as the National Association of Medicaid Fraud Control Units (NAMFCU). For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant United States Attorneys Landon Y. Jones III and Gerald B. Sullivan, and Auditor Dawn Wiggins.

CHARLOTTE, N.C. – The president of a Charlotte high school Booster Club and his wife have been indicted on federal charges for stealing more than $200,000 from the organization. The husband is also charged with fraudulently obtaining over $236,000 in COVID-19 relief funds to cover up the theft, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, and Mona Passmore, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) join Acting U.S. Attorney Stetzer in making today’s announcement.

According to allegations contained in the eight-count indictment, between 2017 and June 2020, Anthony Sharper, 39, and Deana Sharper, 45, both of Charlotte, executed a scheme to defraud and embezzle at least $200,000 from a Charlotte-area high school Athletic Booster Club by writing checks to themselves for purported reimbursement, wiring funds directly to their personal bank account, and using the Booster Club’s debit cards and credit card to pay for personal expenditures. The indictment further alleges that, Anthony Sharper, who is a certified public accountant, also committed tax fraud by failing to to report any of the embezzled funds on the couple’s joint 2018 and 2019 tax returns filed with the IRS.

As alleged the indictment, to cover up the theft and to enrich himself, between March and May 2020, Anthony Sharper submitted three fraudulent applications for federal COVID-19 relief funds, including two fraudulent Paycheck Protection Program (PPP) loan applications, one in the name of the Booster Club and one in the name of his accounting firm, A. Sharper CPA, PLLC, and an Economic Injury Disaster Loan (EIDL) application to the Small Business Administration (SBA) on behalf of his CPA firm. All three applications contained false information, including fake revenues and fake payroll and employment data. As a result of the fraudulent applications, the indictment alleges that Anthony Sharper obtained more than $236,000 in COVID-19 relief funds intended for existing businesses harmed by the coronavirus pandemic. After receiving the loan proceeds, Anthony Sharper used the funds to pay for personal expenditures and to cover up the couple’s theft of the Booster Club’s funds.

Both Sharper and his wife are charged with wire fraud which carries a maximum penalty of 20 years in prison and a $250,000 fine. Anthony Sharper is also charged with two counts of making false statements to a financial institution, which carry a maximum prison term of 30 years and a $1 million fine per count; making a false statement to SBA, for which the maximum statutory penalty is 30 years in prison and a $1 million fine; two counts of engaging in monetary transactions in criminally derived property, which carry a maximum prison term of 10 years and a $500,000 fine per count; and two counts of filing a false tax return, which carry a maximum penalty of three years in prison and a $250,000 fine per count.

The criminal indictment also contains a notice of forfeiture, which gives notice that the defendants must forfeit to the United States all of the property, currency and monetary instruments involved in the offenses charged in the indictment. The government will pursue a forfeiture money judgment in the amount of at least $436,000, which the government contends constitutes the proceeds of the violations alleged in the charging document.

Anthony and Deana Sharper will be ordered by the U.S. District Court to appear on a summons for their initial appearance, which will be scheduled by the Court. The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI, USPIS, and IRS-CI investigated the case. The prosecution is handled by Assistant United States Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. 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. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.

TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted possessing with the intent to distribute more than 40 grams of fentanyl, Acting U.S. Attorney Rachael A. Honig announced.

Derrick Norwood, 58, of Neptune, New Jersey, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to an information charging him with one count of possession with intent to distribute more than 40 grams of fentanyl.

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

On July 18, 2019, Norwood knowingly possessed 39 bricks, or 1,982 individual glassine bags, of heroin mixed with fentanyl inside a safe in his residence in Neptune. Norwood admitted that he possessed the heroin-fentanyl mixture for the purpose of distributing it to others in and around Monmouth County.

The charge of possession with intent to distribute more than 40 grams of fentanyl carries a statutory mandatory minimum term of five years in prison, a maximum of 40 years in prison, and a fine up to $5 million. Sentencing is scheduled for Sept. 23, 2021. 

Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, and detectives from the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, with the investigation leading to today’s guilty plea. 

The government is represented by Assistant U.S. Attorney Ian D. Brater of the Criminal Division in Trenton.

TRENTON, N.J. – Two New Jersey men were sentenced today for their roles in a conspiracy to distribute heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, Acting U.S. Attorney Rachael A. Honig announced today.

Daniel McHugh, 51, of Sayreville, New Jersey, was sentenced to 90 months in prison. McHugh previously pleaded guilty before U.S. District Judge Brian R. Martinotti via videoconference to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. McHugh also admitted conspiring to distribute and possess with intent to distribute a quantity of cocaine and possessing with intent to distribute a quantity of crack cocaine.

Brian Hall, 49, of Freehold, New Jersey, was sentenced today to eight months of home confinement and three years of probation. He previously pleaded guilty before Judge Martinotti to an information charging him with one count of conspiring to distribute and possess with intent to distribute heroin. Judge Martinotti imposed both sentences today in Trenton federal court.

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

From May 2017 to November 2018, McHugh, Hall, and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties.

Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that McHugh regularly obtained heroin and cocaine for further distribution from co-defendant Guy Jackson. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid. When McHugh was arrested, law enforcement officers recovered quantities of heroin, cocaine, and crack cocaine intended for further distribution, as well as $3,800 in cash that McHugh agreed to forfeit.

In addition to the prison terms, Judge Martinotti sentenced McHugh to four years of supervised release and ordered forfeiture of $3,800.

Today’s sentencings are part of a coordinated takedown in November 2018 of 15 defendants charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Thirteen defendants have pleaded guilty. Supplier Gregory Gillens was sentenced on Sept. 8, 2020, to 10 years in prison for his role in the conspiracy. Lead defendant Guy Jackson is scheduled to be sentenced on June 22, 2021. Defendant Deberal Rogers has been indicted; the charges and allegations contained in the indictment against him are merely accusations, and the he is presumed innocent unless and until proven guilty. The charges against one defendant have been dismissed.

Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff’s Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Matawan Police Department, under the direction of Chief Thomas J. Falco Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief Robert B. Sheehan; the Hazlet Police Department, under the direction of Chief Ted A. Wittke; and the Aberdeen Police Department, under the direction of Chief Alan Geyer, with the investigation leading to today’s sentencings. 

The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.

Earlier today, in federal court in Brooklyn, Anton Bogdanov, a citizen of Russia, was sentenced by United States Chief District Judge Margo K. Brodie to 60 months’ imprisonment for wire fraud conspiracy and computer intrusions in connection with a scheme in which he and others hacked into private tax preparation firms, stole personal information, used that information to file federal tax returns and fraudulently attempted to obtain more than $1.5 million in tax refunds from the Department of the Treasury.  The Court also ordered Bogdanov to pay $476,713 in forfeiture.  Bogdanov was arrested in Bangkok, Thailand in November 2018, extradited to the United States in March 2019 and pleaded guilty in January 2020.

Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the sentence.

“Bogdanov hacked into tax preparation firms and used illegally obtained private information from innocent victims to try to steal their federal income tax refunds for his own use,” stated Acting United States Attorney Lesko.  “Today’s sentence underscores the commitment of this Office to protecting the integrity of private tax return information and holding corrupt hackers like the defendant accountable for his crimes.” 

“Victims in this investigation may have thought justice would be elusive when they learned Bogdanov and his cohorts were in Russia.  Today's result should serve as a reminder that our reach is global, and we are laser-focused on stopping cyber criminals wherever they may try to hide,” stated FBI Assistant Director-in-Charge Sweeney.

“Bogdanov utilized sophisticated means to steal two valuable commodities, peoples personally identifiable information and funds belonging to the American Taxpayer, stated IRS-CI Special Agent-in-Charge Larsen.  “IRS-Criminal Investigation will continue to work side-by-side with our law enforcement partners to identify and prosecute international cyber criminals who infiltrate our tax system for personal gain.  Justice was served in today’s sentence and should serve as a warning that cyber-criminals cannot hide anonymously beyond our borders.”

Between June 2014 and November 2016, Bogdanov, who used the online moniker “Kusok,” and his co-conspirators misappropriated personally identifiable information (“PII”), such as Social Security numbers and the dates of birth of their victims, by gaining unauthorized access to the computer systems of private tax preparation firms in the United States.  Bogdanov and his co-conspirators then changed the tax return information so that the refunds were paid to prepaid debit cards that they controlled.  Bogdanov and his co-conspirators also used misappropriated PII to obtain prior tax filings of victims from the IRS Transcript System website, and filed new tax returns, purportedly on behalf of the victims, so that refunds were paid to prepaid debit cards under their control.  The debit cards were cashed out in the United States, and a percentage of the proceeds was wired to Bogdanov in Russia. 

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorney Jonathan E. Algor is in charge of the prosecution.   

The Justice Department’s Office of International Affairs, the FBI’s Legal Attaché abroad and foreign authorities provided critical assistance in this case.  The Office extends its appreciation to the Royal Thai Police, particularly the Crime Suppression Division, and the FBI’s Legal Attaché Bangkok for their assistance in apprehending the defendant.  The Office also extends its appreciation to the New York County District Attorney’s Office for their assistance in this case.

The Defendant:

ANTON BOGDANOV (also known as “Kusok”)
Age:  35
Russia

E.D.N.Y. Docket No. 19-CR-197 (MKB)

COLUMBUS, Ohio – A federal grand jury has charged six individuals with selling liquid psychedelic mushrooms online to customers all over the country, including at least one identified customer in Columbus, Ohio.

The six defendants were charged by criminal complaint in April with attempting and conspiring to manufacture, distribute and dispense controlled substances using cryptocurrencies via the dark web. The group was allegedly orchestrating millions of dollars of online drug sales.

In the indictment filed today, the defendants are charged with one count of conspiring to possess with intent to distribute a psychedelic mushroom analogue. Each of the defendants faces up to 20 years in prison.

According to court documents, between November 2013 and April 2021, co-conspirators sold liquid psychedelic mushrooms in nine milligram vials for approximately $20 each on the darknet through the moniker TRIPWITHSCIENCE.

In this case, the government seeks to forfeit the profits of the alleged drug scheme, as well as a 2016 Tesla Model-X Wagon and land in Brighton, Colorado valued at more than $1.5 million.

Those charged include:

Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Lisa B. Mendelsohn, Acting Assistant Special Agent in Charge, IRS Criminal Investigation;  Keith Martin, Special Agent in Charge, DEA; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Lesley C. Allison, Inspector in Charge, United States Postal Inspection Service (USPIS); and Franklin County Sheriff Dallas Baldwin announced the charges. The case was investigated by the South-Central Ohio High Intensity Drug Trafficking Area Cyber Task Force. Assistant United States Attorney Michael J. Hunter is representing the United States in this case.

An indictment is merely an allegation, and all defendants are presumed innocent unless proven guilty in a court of law.

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A man who portrayed himself as a Native American spiritual counselor was convicted Tuesday by a federal jury of sexually abusing a Native American minor and illegally possessing feathers, talons and heads from seven bald eagles and seven golden eagles, announced Acting U.S. Attorney Clint Johnson.

The jury found Carl Gene Ortner Jr., 57, of Quapaw, guilty of transportation with intent to engage in criminal sexual activity, sexual abuse of a child in Indian Country, abusive sexual contact in Indian Country, possession of parts of a bald eagle, and possession of parts of a golden eagle. U.S. District Judge John F. Heil III presided over the trial and set sentencing for Sept. 30, 2021.

“Carl Ortner is not a Native American spiritual counselor, as he led his community to believe. A jury this week saw Ortner for what he was – a predator who targeted a vulnerable young victim, using her Native American heritage and grief to sexually abuse her,” said Acting U.S. Attorney Clint Johnson. “During this trial, two other victims came forward and stated that Ortner also abused them. All three of these young women are to be commended for their bravery and for stopping this defendant from harming others.”

“No matter what type of crime wildlife is connected to, we will work tirelessly with our law enforcement partners for justice,” said Phillip Land, Special Agent in Charge of the Southwest Region for the U.S. Fish and Wildlife Service, Office of Law Enforcement. “These guilty verdicts send a strong message that these types of crime will not be tolerated, and we thank the U.S Attorney’s Office, the Federal Bureau of Investigation, Bureau of Indian Affairs, Oklahoma Department of Wildlife Conservation, and the Ottawa County Sheriff’s Office for their assistance with this case.”

Assistant U.S. Attorneys Shannon Cozzoni and Ryan Roberts argued that Ortner fraudulently claimed to be a Native American spiritual counselor. Assistant U.S. Attorney Cozzoni pointed out the defendant portrayed himself as an Indian, yet he had no tribal affiliation. He told several people he was a member of several Tribes, but no Tribe claimed him.

A special agent with the Fish and Wildlife Service testified that investigators discovered feathers and various parts of bald and golden eagles, including heads, talons, and entire wings, at Ortner’s residence. Native Americans consider eagles to be sacred and use the parts in cultural and religious practices. Ortner illegally possessed the feathers and parts.

Further evidence was presented showing that the defendant used his position of influence to groom the victim and force her into sexual relations with him, using her cultural beliefs and vulnerability against her. The victim also had been struggling with losing a loved one, and Ortner used the loss to further groom the victim.

In 2016, Ortner began sexually abusing the minor. While some of the abuse allegedly occurred within state jurisdiction, Ortner, who is not a tribal citizen, also abused the victim on Indian land, which falls within federal jurisdiction. Furthermore, Ortner at one point drove the victim to Joplin, Missouri, to engage in criminal sexual activity with the minor victim. Crossing state lines to engage in illegal activity falls within federal jurisdiction.

Witnesses testified that Ortner threatened to embarrass the victim and the tribe unless she said the sexual assault did not happen. Also testifying for the government were two other women who stated that Ortner also groomed them as minors and sexually abused them.

In the Government’s closing, Assistant U.S. Attorney Roberts reminded the jury that all three women, who did not know one another, had made similar statements in court. They were vulnerable minors when the sexual abuse occurred. Several had experienced recent deaths of loved ones, which Ortner exploited. Ortner would also buy them lingerie and use the same term to describe the undergarments. Roberts called Ortner a wolf in sheep’s clothing, stating that he disguised himself as a caring Native American elder to get close to the victims. Then when the time was right, Ortner attacked.

The jury took less than two hours to deliberate before coming back with guilty verdicts on all five counts.

The U.S. Fish & Wildlife Service Office of Law Enforcement, Oklahoma Department of Wildlife Conservation, Ottawa County Sheriff’s Department, FBI, and the Bureau of Indian Affairs conducted the investigation. Assistant U.S. Attorneys Ryan Roberts and Shannon Cozzoni prosecuted the case.

          CONCORD - Francis Harrington, 38, of Manchester, pleaded guilty in federal court on Tuesday to possession of fentanyl with intent to distribute, Acting United States Attorney John J. Farley announced today.  

          According to court documents and statements made in court, on August 22, 2019, a Manchester police officer responded to a report of two males “passed out” in a parked vehicle at a restaurant.  Harrington was the passenger in the vehicle.  After being engaged by medical personnel, the officer observed Harrington moving slowly and reaching around the console and floor area of the vehicle.  Harrington was ordered out of the vehicle and to put his hands on his head.  The officer performed a protective pat search and located a large bulge in the waistband of Harrington’s pants.  When the officer asked Harrington about the object, Harrington replied “drugs.”  The officer then removed the object, which was a bag containing 198 grams of fentanyl.  He was arrested at the scene.

          Harrington is scheduled to be sentenced on August 26, 2021.

          “Fentanyl traffickers continue to pose a serious threat to public health and safety in New Hampshire,” said Acting U.S. Attorney Farley.  “Through Operation SOS, we are targeting the drug dealers who are endangering the public by selling this very dangerous substance.  I am grateful to the Manchester Police for preventing this significant amount of fentanyl from jeopardizing lives in the Queen City.” 

          This matter was investigated by the Manchester Police Department.  The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.

          This case is part of Operation Synthetic Opioid Surge (S.O.S.).  In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts.  The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids.   In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.                          

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United States Attorney Sean P. Costello of the Southern District of Alabama announced that Uriel Frederico Romero-Rodriguez, of Mexico, was sentenced today in federal court for Conspiracy to Distribute Heroin. 

Romero-Rodriguez pled guilty to the charge in January of 2021.  On February 11, 2020, United States Customs and Border Protection intercepted a package originating from Arcelia, Guerrerro, Mexico.  The package purported to be a wheel of cheese addressed to a residence in Foley, Alabama.  However, officers discovered approximately 443 grams of heroin concealed inside the wheel of cheese.  On February 13, 2020, the package was delivered to the address in Foley.  Romero-Rodriguez arrived shortly thereafter to pick up the package.  Officers immediately arrested Romero-Rodriguez when he picked up the package.  As part of his plea agreement, Romero-Rodriguez admitted he and his co-defendant made an agreement to distribute the heroin. 

United States District Court Judge Terry F. Moorer imposed a mandatory sentence of 60 months imprisonment.  The judge also ordered Romero-Rodriguez to serve a four-year term of supervised release upon his discharge from prison.  Judge Moorer ordered that Romero-Rodriguez pay $100 in special assessments. 

The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and Customs and Border Protection, and the Alabama Law Enforcement Agency.  It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Justin Kopf.

PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Leo Dignam, 61, of Philadelphia, PA was sentenced to 15 months in prison, one year of supervised release, and was ordered to pay a $7,500 fine by United States District Judge Eduardo C. Robreno for a scheme to defraud the City of Philadelphia of approximately $150,000 over the course of several years.

In November 2020, Leo Dignam pleaded guilty to wire fraud and embezzlement from a program receiving federal funds. At the time of the charged offenses, the defendant was an Assistant Managing Director in the City of Philadelphia Managing Director’s Office and, prior to serving in that position, was a long-time employee of the Philadelphia Parks and Recreation (“PPR”) Department, having risen through the ranks to serve as the Deputy Commissioner for Programs. In these positions, he oversaw the administration of major events in the city, such as the Philadelphia Marathon, the Broad Street Run and the Mummers Parade. Mr. Dignam worked for the City of Philadelphia for approximately 38 years.

Over the course of several years, from 2012 through 2019, Leo Dignam misused two bank accounts he controlled on behalf of the City that existed to support the work of PPR, namely, recreational activities for citizens. In particular, he opened a bank account purportedly to support the activities of PPR in connection with a non-profit organization, the Junior Baseball Federation (“JBF”). The JBF partnered with the Philadelphia Phillies to raise most of its funds through the sale of tickets for Phillies games. The defendant converted funds from this account to pay for personal expenses he incurred on a credit card associated with the JBF account for purchases from retail stores, grocery stores, pharmacies, gas stations, online retailers, and service providers. Dignam also admitted to misusing another account that was created for the benefit of PPR and the citizens of Philadelphia, the Program Advisory Fund Account. The defendant used this account to pay personal expenses by transferring funds directly to a personal bank account, and by using it to pay personal expenses on a Verizon wireless account.

Leo’s brother, Paul Dignam, 58, also of Philadelphia and formerly the Regional Manager for the South Region of Philadelphia Parks and Recreation, also pleaded guilty in November 2020 to charges of mail fraud and embezzlement from a program receiving federal funds in connection with similar misuse of public money, and will be sentenced next week.

“This defendant abused the considerable level of trust placed in him by his superiors and the citizens of Philadelphia,” said Acting U.S. Attorney Williams. “His inexcusable behavior, stealing money from public programs designed to serve city youth and Parks and Recreation supporters, has now been met with swift and serious consequences in federal court. Our Office will continue to hold public employees, especially those in leadership positions, responsible for this type of fraud.”

This case was investigated by the Federal Bureau of Investigation and the Philadelphia Office of the Inspector General, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.

United States Attorney Sean P. Costello of the Southern District of Alabama announced that Gabrielle Danielle Goss, 38, of Birmingham, Alabama, was sentenced for her participation in a methamphetamine trafficking conspiracy which occurred in Baldwin County during 2016 through 2018.  In May of 2020, Goss pled guilty to the conspiracy charge.
 
United States District Court Judge Terry F. Moorer imposed a 96-month sentence in Goss’ case and ordered that Goss serve a five-year term of supervised release when she is released from custody.  Goss was also ordered to pay a mandatory special assessment of $100.  No fine was imposed.

The case was investigated by the Baldwin County Sheriff’s Office and the Baldwin County Drug Task Force.  It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell. 

United States Attorney Sean P. Costello of the Southern District of Alabama announced that Ashley Nicole King, 30, of Foley, Alabama, has been sentenced for her participation in a methamphetamine trafficking conspiracy which occurred in Baldwin County during 2016 through 2018.  In August of 2019, King pled guilty to the conspiracy charge.
 
United States District Court Judge Terry F. Moorer imposed a 90 month sentence in King’s case, and ordered that King serve a five-year term of supervised release when she is released from custody.  King was also ordered to pay a mandatory special assessment of $100.  No fine was imposed.      

The case was investigated by the Baldwin County Sheriff’s Office and the Baldwin County Drug Task Force.  It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.